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08-01-2018 (WEDC) Agenda Packet I TIC I F EETING ylie Economic Development CORPORATION Special Meeting Agenda August 1, 2018— 11:30 A.M. WEDC Offices—Conference Room 250 South Highway 78 —Wylie, Texas John Yeager Secretary Marvin Fuller Board Member Mayor Eric Hogue Ex-Officio Member Mindy Manson,City Manager Ex-Officio Member Samuel Satterwhite Executive Director Jason Greiner Assistant Director Angel Wygant Senior Assistant In accordance with Section 551.042 of the Texas Government Code, this agenda has been posted at the Wylie Municipal Complex, distributed to the appropriate news media, and posted on the City Website: www.H lieiexas. ov within the required time frame. CALL TOO ' PER Announce the presence of a Quorum. INVOCATION & PLEDGE OF ALLEGIANCE CITIZEN PARTICIPATION Residents may address the WEDC Board regarding an item that is or is not listed on the agenda. Residents must provide their name and address. The WEDC Board requests that comments be limited to three (3) minutes. In addition, the WEDC Board is not allowed to converse, deliberate or take action on any matter presented during citizen participation. ACTION ITEMS I. Consider and act upon approval of the July 18, 2018 Minutes of the WEDC Board of Directors Meeting. II. {Remove from Table} Consider and act upon approval of the FY 2018-2019 WEDC Budget. DISCUSSION ITEMS III. Discussion of issues to be placed on future WEDC Board Meeting agenda (no substantial consideration/discussion allowed). WEDC—Agenda August 1, 2018 Page 2 of 2 EXECUTIVE SESSION Recess into Closed Session in compliance with Section 551.001, et.seq. Texas Government Code, to wit: Section 551.087 (Economic Development) of the Local Government Code, Vernon's Texas Code Annotated(Open Meetings Act). Deliberation regarding commercial or financial information that the WEDC has received from a business prospect and to discuss the offer of incentives for: • Project 201 8-1 a Section 551.074 (Personnel Matters) of the Local Government Code, Vernon's Texas Code Annotated (Open Meetings Act). • Performance Evaluation of the Executive Director RECONVENE INTO OPEN MEETING ADJOURNMENT CERTIFICATION I certO, that this Notice of Meeting was posted on this 27h day of July 2018 at 5:00 p.m. as required by law in accordance with Section 551.042 of the Texas Government Code and that the appropriate news media was contacted As a courtesy, this agenda is also posted on the City of Wylie website:intlutylliel,rexgAguy. Stephanie Storm,City Secretary Date Notice Removed Minutes Wylie Economic Development Corporation Board of Directors Meeting Wednesday, July 18, 2018 —6:30 A.M. WEDC Offices—Conference Room 250 South Highway 78—Wylie, Texas CALL TO 0 ' I ER Announce the presence of a Quorum President Marvin Fuller called the meeting to order at 6:31 a.m. Board Members present were John Yeager, Bryan Brokaw, Todd Wintters, and Demond Dawkins. Ex-officio member Mindy Manson, City Manager was present. WEDC staff present was Executive Director Sam Satterwhite, Assistant Director Jason Greiner, and Senior Assistant Angel Wygant. President Fuller called the Board's attention to an award that had been received from the Texas Economic Development Corporation for Achievement of Economic Excellence. Mr.Fuller further congratulated staff and members of the Board for their efforts that contributed to the receipt of this award. CITIZEN PARTICIPATION With no citizen participation, President Fuller asked all Board Members, Staff and Ex-officio members to stand for an invocation and pledge of allegiance. ACTION ITEMS ITEM NO. 1 — Consider and act upon approval of the June 12, 2018 Minutes of the Wylie Economic Development Corporation (WEDC) Board of Directors Meeting. MOTION: A motion was made by Todd Wintters and seconded by Demond Dawkins to approve the June 12, 2018 Minutes of the Wylie Economic Development Corporation. The WEDC Board voted 5 —FOR and 0 —AGAINST in favor of the motion. ITEM NO.2—Consider and act upon approval of the June 2018 WEDC Treasurer's Report. Staff reviewed the items contained in the Treasurers Report and called the Board's attention to the continuing downward trend in sales tax this month (-4.29%) and -4.5% for the year. Staff is still using flat sales tax numbers for budgetary purposes for FY 2018-2019 but will monitor revenues closely to determine if revenue amendments are required. WEDC—Minutes July 18, 2018 Page 2 of 12 In reviewing the Inventory Subledger, Staff called the Board's attention to an adjustment to the Hwy 78 lot acreage. Following the SCSD-Finnell transaction, the remaining lot area was incorrectly listed as 1.6 acre and has been corrected to the actual 1.445 acre. Staff mentioned that the WEDC Financials are sent to City Council and placed within the Consent Agenda for review. Further, Council has access to the full Board packet, including financials, prior to each Board meeting via a link sent by the City Secretary's office. MOTION: A motion was made by John Yeager and seconded by Todd Winners to approve the June 2018 Treasurer's Report, as amended, for the Wylie Economic Development Corporation. The WEDC Board voted 5 —FOR and 0—AGAINST in favor of the motion. ITEM NO. 3—Consider and act upon authorizing the WEDC Executive Director to execute a contract for alley improvements generally located east of Ballard Street between Jefferson Street and Brown Street. Presented for the Board's consideration and review were two bids for construction of the contemplated alley between Jefferson and Brown,just east of Ballard. GT Construction came in at $107,155 with Texas Dirt Contractors coming in at$246,775. In reviewing the bids, staff noted significant variances between the bids involving mobilization, tree trimming, general conditions, and seed/prep among other totaling $43,000 with the bids still $100,000 apart. The one item not included in the GT bid which will have to be inserted is a 2-year maintenance bond. GT has been asked to provided that figure prior to the Board meeting which Helmberger Associates(who will be providing construction management)estimates to be no more than$5,000. Texas Dirt bond is $8,864. Once a proposal is executed, Helmberger will contact all applicable utility companies to initiate relocation(not included in either bid) and the contractor will schedule the project. President Fuller asked what Helmberger's fee was for construction management and staff replied their fee was 8% of the project, or approximately $8,000. The Board inquired about relocation of utilities with staff responding that those figures will not be provided until relocation is requested. Staff did anticipate that the paving, utility relocation, and bond will be less than the $150,000 budgeted for this project. Staff recommended that the WEDC Board of Director's authorize staff to execute a contract with GT Construction in the amount of$107,155 for alley improvements between Jefferson and Brown, just east of Ballard. WEDC—Minutes July 18, 2018 Page 3 of 12 MOTION: A motion was made by Demond Dawkins and seconded by John Yeager to authorize staff to execute a contract with GT Construction in the amount of $107,155 for alley improvements between Jefferson and Brown,just east of Ballard. Further, the Board approved expenditures associated with this project not to exceed a total project cost of $150,000. The WEDC Board voted 5 —FOR and 0—AGAINST in favor of the motion. ITEM NO. 4 — Consider and act upon issues surrounding principal reduction payments toward a loan(s) between the WEDC and The American National Bank of Texas. At the June 12th WEDC Board Meeting staff was given direction to pay in full the Linduff/Edge and Buchanan Loans. The estimated payoffs at the time were$378,770 and$107,264 respectively. With the Zoning Board of Adjustments variance approved and the FINNELL transaction complete, the Linduff/Edge loan was paid in full on 7-13-18 in the amount of$363,943. In addition to the above, staff was directed to make a principal reduction payment of$300,000 toward the Peddicord/White loan. As a reminder, the $300,000 payment left the WEDC with approximate net proceeds of$500,000 from the FINNELL transition thus increasing the current claim on cash at the time of$376,000 to $876,000. The Peddicord/White Loan has an approximate payoff of$503,155 with a current rate of 4.2% adjusting to a FHLB 5-year rate +2.5% in December 2019, and annually thereafter through 2024. The current FHLB rate is 3.19%. Staff received additional information from American National Bank (ANB) since the June 12th meeting which may impact the previous direction given. As staff conveyed the Board's concern to ANB regarding lower interest rate loans being paid off and significantly higher rates for potential future debt being contemplated, ANB conceded that it may not be so important to pay off the Buchanan loan which now has an approximate payoff of$100,268 and a fixed interest rate of 3.77%through July 2019. Following payoff of Linduff/Edge,the WEDC has net proceeds from the FINNELL transaction of $896,328. Staff commented that should certain projects being considered in Executive Session come to fruition, the WEDC may need to borrow monies at a rate of 6%. With favorable fixed rates for Buchanan (3.77%) and Peddicord/White (4.2% through December 2019), along with ANB being less concerned about paying off the Buchanan Loan, staff recommended that the Board reevaluate further principal reduction payments until a clearer direction is achieved on future projects. If agreeable, staff will bring this issue back for Board consideration within the next 60 days. MOTION: A motion was made by John Yeager and seconded by Demond Dawkins to delay further principal reduction payments contemplated on June 12,2018 for approximately 60 days. The WEDC Board voted 5—FOR and 0—AGAINST in favor of the motion. WEDC—Minutes July 18, 2018 Page 4 of 12 ITEM NO. 5 — Consider and act upon a work order between the WEDC and W&M Environmental to address environmental issues located at 802 W. Kirby. Staff reviewed the environmental work done to date at 802 W. Kirby and informed the Board the property must be identified as a Municipal Setting Designation (MSD) and enrolled in the Voluntary Cleanup Program through the TCEQ. Unfortunately,the EPA Ready for Reuse process did not address groundwater issues which can be accomplished with a MSD and the VCP Program. Staff reiterated that the WEDC is paying all costs associated with the clean-up of this site and it is anticipated that the City of Wylie will reimburse the WEDC out of the proceeds of future sales. President Fuller questioned why our environmental contractor did not provide us with an earlier notice that there may be a problem and additional work needed on this property. He inquired as to whether we should consider a new environmental contractor for the next phase of the project. Staff explained that the timing of the work on the EDC property adjacent to this property and the City's acquisition of the CRI property was a factor in the late notice regarding this additional work. In addition, staff learned that the EPA had the groundwater data and did not provide the data to the City or W&M. Staff reiterated that both he and our environmental attorney believe that W&M is the natural choice for the remaining work and to start over would require an alternate firm to prepare the same preliminary data which has already been completed by W&M. Vice President Wintters commented that W&M has an excellent reputation and he has full confidence in their abilities. Further,it is a complicated project with many unanticipated variables which would make the 'additional' work difficult to predict. Staff recommended that the Board approve a work order in the amount of $57,500 for environmental work to be performed at 802 W. Kirby by W&M Environmental. MOTION: A motion was made by Todd Wintters and seconded by John Yeager to approve a work order not to exceed$57,500 for environmental work to be performed by W&M Environmental. The WEDC Board voted 4 —FOR and 1 —AGAINST in favor of the motion with President Marvin Fuller dissenting. ITEM NO. 6—Consider and act upon approval of the FY 2018-2019 WEDC Budget. Staff informed the Board that a preliminary budget presentation was made to the Wylie City Council on July 12th. In review, staff typically identifies fixed operating expenses, makes reasonable assumptions on costs associated with consultants, details existing incentive commitments, provides a minimum amount of monies for land acquisition, and places the balance of available resources in 'Future Projects' to be used for incentive programs which have yet to be identified. WEDC—Minutes July 18, 2018 Page 5 of 12 As provided to the Board,the WEDC has budgeted $4,636,927 in available resources as follows: Beginning Fund Balance $620,887 Sales Tax 2,600,000 Rental Income 112,440 Pad Sale (Highway 78) 1,300,000 Interest Earnings 3 600 Total $4,636,927 In calculating the Beginning Fund Balance, it was anticipated that$100,000 was to be paid out to REVA which does not appear to be taking place with the Performance Agreement in Default. As sales tax projections were established in May, FY 2018 —2019 were calculated with no gain, or flat, over FY 2017 — 2018. With continued downward trends in sales tax receipts, year-end is projected at$2,550,000. Based upon significant gains in our major retail centers and the hangover effect from the hail storm surely to be over soon, staff is still comfortable with the $2.6 mm projection. The pad sale of$1.3 mm represents a theoretical sale in the low$20's psf. Staff was quick to point out that a sale in the low$20's would be the result of a user the community is eager to attract with the WEDC subsequently considering a 'below market' sale. So as to not skew the budget,the sale is wholly offset by principal reduction of$1.2 mm within Debt Service and $100,000 in closing costs within Land. Staff presented line item expense recommendations as follows: Personnel Services $426,577 Supplies 14,040 Materials for Maintenance 2,000 Contractual Services 1,319,989 Special Services 148,900 Advertising 127,000 Community Development 53,600 Communications 9,628 Rental Expense 29,328 Travel & Training 53,425 Dues & Subscriptions 30,110 Insurance 3,110 Audit& Legal 33,000 Engineering—Architect 30,000 Utilities 2,400 Debt Service 1,751,819 Land 300,000 Street &Alleys 300,000 Computer Hardware 1,000 WEDC—Minutes July 18, 2018 Page 6 of 12 Furniture & Fixtures 1 000 Total $4,636,927 Staff called special attention to the following: • Salaries presented reflects a 2.5% increase over FY 17— 18. • Within Incentives, $622,100 is allocated to ongoing commitments to eight different projects and $697,889 towards Future Projects. • Within Special Services, only $5,000 has been budgeted toward an Interlocal Agreement with the City for the provision of financial services. Staff conveyed that there was a discussion at a Council budget work session that $5,000 may not reflect the true value received. While staff had not been presented with a figure which may reflect a more accurate 'cost', staff requested direction from the Board and allow Staff to work with the City Manager/Council to potentially amend the Interlocal Agreement. • Also within Special Services, staff requested that the Board consider increasing the presented budget by $100,000 to study how future development downtown may impact drainage and traffic patterns. Staff indicated that the Planning and Engineering Departments will assist in drafting a RFP stating the parameters of the study. • Community Development has continued funding for a regional brokerage event and an Industrial Appreciation event for existing businesses. • Also within Community Development staff recommended dropping Sporting Events due to increased cost to participate as a Mavericks Season Ticket holder. • Travel&Training contains monies for Wylie Days in Austin and sales tax training for staff and Board members. • Dues and subscriptions was presented with a $4,300 reduction reflecting a change in the Directors Club Corp membership status from Full to Social. • $200,000 within the Land budget is to be utilized for potential acquisitions. • Streets & Alleys reflect a $150,000 project to pave an alley between Oak & Marble just west of Jackson and $150,000 project to loop a water line system impacting the 544 Gateway project. The Board provided direction to staff to make changes as follows: • Increase Special Services by $15,000 to be available for changes to an Interlocal Agreement between the WEDC and City. • Increase funding for an Industrial Appreciation event from $5,000 to $10,000. • Within Travel & Training increase Prospect Recruitment by $2,000 to allow the Director increased opportunities for business networking to offset those provided by the reduced membership status at Club Corp. • Increase Audit & Legal by $6,000 to allow for anticipated legal fees associated with additional projects. • The Board directed staff to budget$10,000 for sporting events which is equal to prior year commitments while identifying alternate opportunities other than a partial season ticket holder for Mavericks. WEDC—Minutes July 18, 2018 Page 7 of 12 • Drainage/Traffic Study in the amount of$100,000 was approved. • Direction was provided to increase the Beginning Fund Balance to $720,887 based upon reduced spending(due to a default) in Incentives. The Board directed staff to make the above changes prior to August 3, 2018 and bring the same back for final consideration. MOTION: A motion was made by John Yeager and seconded by Bryan Brokaw to Table this Item until the next WEDC Board Meeting to be held prior to August 3, 2018. The WEDC Board voted 5 — FOR and 0 — AGAINST in favor of the motion. Demond Dawkins left the meeting at 8:37 a.m. ITEM NO. 7—Consider and act upon issues surrounding the Election of WEDC Officers The Wylie City Council recently reappointed Mr. John Yeager and Mr. Demond Dawkins to a three-year term as Board Member of the Wylie Economic Development Corporation with each already sworn in by the City Secretary. On an annual basis and following the selection of WEDC Board Members by the Wylie City Council,the WEDC elects officers for the upcoming year. Provided for your review is Section V- Officers of the WEDC By-laws. Section V provides for the selection of officers and the duties of the same. In 2017-2018 the WEDC Board of Directors elected the current officers as follows: Marvin Fuller President Todd Wintters , Vice President John Yeager , Secretary Bryan Brokaw . Board Member President Fuller requested that all Board Members remain in their current officer positions with the exception of Bryan Brokaw whom he recommended take on the role of President. All Board Members expressed their strong confidence that Mr. Fuller was the appropriate person to lead the WEDC Board and encouraged him to reconsider and remain in his position as President. Mr. Fuller reiterated that he believed the time was right for new leadership and encouraged the Board to elect Mr. Brokaw as President. Mr. Brokaw agreed to accept the position of President if the Board so chose. MOTION: A motion was made by Todd Wintters and seconded by John Yeager to elect the following slate of WEDC Officers for FY 2018 — 2019, effective at the adjournment of the 7/18/18 WEDC Board Meeting: Bryan Brokaw — President, Todd Wintters — Vice President, John Yeager — WEDC—Minutes July 18, 2018 Page 8 of 12 Secretary,Demond Dawkins—Treasurer. The WEDC Board voted 4—FOR and 0—AGAINST in favor of the motion. ITEM NO.8—Consider and act upon the establishment of a Regular Meeting Date and Time for the WEDC Board of Directors for 2018-2019 Section 4.07 of the WEDC By-laws states that the President of the Board shall set a regular meeting date and time at the beginning of his/her term. Currently WEDC Board Meetings are set for the third Wednesday of each month at 6:30 a.m. All Board Members indicated they were in favor of keeping the date and time set for WEDC Board Meetings as the third Wednesday of each month at 6:30 a.m. MOTION: A motion was made by Todd Wintters and seconded by John Yeager to establish the Regular Meeting Date and Time for WEDC Board Meetings as the third Wednesday of the month at 6:30 a.m. The WEDC Board voted 4—FOR and 0—AGAINST in favor of the motion. ITEM NO. 9 — Consider and act upon a First Amendment to Performance Agreement between the WEDC and Dank Real Estate, Ltd. Staff reminded the Board that the WEDC entered into a Performance Agreement with DANK Real Estate on October 25, 2017. The project features a 10,140 square foot expansion and the creation of at least eight additional full-time employees. This expansion will bring DANK's overall building footprint to 20,577 square feet and a total of 33 full-time employees. As a reminder, the property is located at 216 Windco Circle with DANK moving to Wylie in 2011. This is the second expansion at this location in seven years with all DANK Houston operations being consolidated to the Wylie headquarters. As indicated to the Board in a previous meeting, Ms. Hodge planned to begin the project within the first quarter of 2018,but due to an unforeseen family medical issue,the project has just broken ground recently. While it is possible that Ms. Hodge can still meet the initial January 31, 2019 deadline, staff believes that additional time is warranted under the circumstances. To that end and to allow for further delays which may occur during the construction process, staff recommended a 6-month extension to meet the performance deadlines would be in the best interest of the Project. Staff recommended that the WEDC Board of Directors approve a First Amendment to a Performance Agreement between DANK Real Estate,Ltd,and the WEDC providing for a 6-month extension of the deadline with all other performance measures unchanged. MOTION: A motion was made by Bryan Brokaw and seconded by Todd Wintters to approve a First Amendment to a Performance Agreement between DANK Real Estate, Ltd, and the WEDC. The WEDC Board voted 4 —FOR and 0—AGAINST in favor of the motion. WEDC—Minutes July 18, 2018 Page 9 of 12 ITEM NO. 10—Consider and act upon a Performance Agreement between the WEDC and Taylor& Son Properties, LLC. As reported at the May 16th Board Meeting, staff approached Taylor & Son to encourage the maximum amount of parking spaces be developed at the 1,290 square foot remodel taking place by Taylor at their new 107 Jackson Street acquisition. Staff was able to confirm that with WEDC assistance, Taylor will provide seven parking spaces behind the building. After seeking the Board's direction at the and June 12th Board Meeting, staff prepared a Performance Agreement with the following terms and Performance Measures: Incentive No. 1 . .............................. $3,200 A Proof of Certificate of Occupancy for a 1,290-square foot office building issued by the City of Wylie by November 1, 2018; and A Minimum project cost of$75,000; and A Minimum qualified infrastructure cost of$6,400; and A Construction of a minimum of seven parking spaces; and A Ad valorem property taxes current. A Eligibility expiration is November 30, 2018. Staff recommended that the WEDC Board of Directors authorize the Executive Director to enter into a Performance Agreement with Taylor and Son Properties, LLC to provide $3,200 in reimbursements for qualified infrastructure assistance. MOTION: A motion was made by John Yeager and seconded by Todd Wintters to authorize the Executive Director to enter into a Performance Agreement with Taylor and Son Properties, LLC to provide $3,200 in reimbursements for qualified infrastructure assistance. The WEDC Board voted 4—FOR and 0—AGAINST in favor of the motion. DISCUSSION ITEMS ITEM NO. 11 - Staff report: Staff reviewed issues surrounding WEDC Performance Agreement Summary, Environmental Activity Summary, REVA Hospitality, Sanden/Hensley roadway improvements, Aerials, KCS Strategic Partners Conference, WEDC website, public information requests, active project summary, and regional housing starts. Staff updated the Board on WEDC activities noting the addition of an" active projects" section of the Staff Report. June highlights included: Sales Tax receipts for both major shopping centers were up significantly; and housing starts remained strong with forty-seven new homes permitted in Wylie. WEDC—Minutes July 18, 2018 Page 10 of 12 REVA Hospitality failed to obtain a Certificate of Occupancy by June 30, 2018 as required under the Performance Agreement and on July 9, 2018 a notice of default and termination of the Performance Agreement was sent via certified mail, return receipt requested. Verification of receipt has been received by the WEDC with no communication from REVA regarding this default. The WEDC Website is anticipated to go live by August 10th following final review,programming of the site and incorporation of new technology into the site. Mr. Satterwhite and Mr. Greiner have been invited to attend the KCS Strategic Partners Conference in September. The KCS Industrial Development Manager believed this would be a good opportunity for WEDC staff to learn more about KCS, the rail outlook for 2018—2019, and network with the KCS Intermodal Sales & Marketing Team. Staff received and responded to a large public information request pertaining to all activities surrounding the redevelopment of the 5-acre site at Cooper and State Highway 78 as well as the acquisition of the Jarrard/Grey's Auto Electric property on Industrial Court. From June 18 —29, approximately 45 WEDC man-hours were dedicated to compiling over 3,000 original pages and 210 electronic files for the above referenced projects. Included in that time was comparing the hard copy original documents to duplicate electronic files paring down the 3,000 pages to 1,599 pages. The final task was accomplished the week of July 16th requiring staff to identify and compile every email pertaining to the above projects. ITEM NO. 12 - Discuss issues surrounding approval requirements and reporting practices between the WEDC and Wylie City Council. Staff informed the Board that in mid-June there were questions from Council pertaining to how WEDC expenditures and projects are approved by Council. Ultimately, the WEDC Board serves at the will of the Council with Council authorizing all financial transactions via the annual budget and any required budget amendments. In each community there are varying levels of Council oversight and involvement in EDC activities. In Wylie, Council approves the WEDC Budget and program of work. As well,monthly financials are approved by the Board and presented to Council for their review placed on file. Further, Council is required to approve all debt incurred by the WEDC. In practice, staff takes all WEDC property acquisitions to Council in Executive Session prior to closing. While there have been times because of fast-paced negotiations that the WEDC needed to put a property under contract prior to communication with Council, Council has always been provided the opportunity for input prior to the expiration of a due diligence period. As well, staff takes incentive programs that are 'of significance' to Council for direction within Executive Session. Staff determines whether a project is significant or not based upon the funding level,type of business, impact on the community/surrounding properties, and feedback from Ex-Officio Board Members Mayor Hogue and Manson. However, several incentive programs each year are not taken to Council which are typically less than $50,000. WEDC—Minutes July 18, 2018 Page 11 of 12 Staff commented that while the WEDC makes communication with the Wylie City Council and City Staff a priority,there are always opportunities to improve which may include monthly updates on active projects to Council within Executive Session if Council so chooses. Finally, staff did confer with WEDC Counsel Randy Hullett to confirm that the WEDC was meeting all reporting requirements under EDC governing statutes. Mr. Hullett also provided staff with a presentation addressing Council oversight/reporting requirements as well as a thorough explanation of qualified projects. This presentation was attached for the Board's review and has been delivered to Council. John Yeager left the meeting at 8:54 a.m. ITEM NO. 13 —Discussion of issues to be placed on a future WEDC Board Meeting agenda (no substantial consideration/discussion allowed). No Board Member requested any items to be placed on future Agendas. Demond Dawkins returned at 9:04 a.m. EXECUTIVE SESSION Recess into Closed Session at 9:04 a.m. in compliance with Section 551.001, et. seq. Texas Government Code, to wit: Jason Greiner and Angel Wygant were excused from Executive Session at 9:06 a.m. for Board discussion and consideration of: Section 551.074 (Personnel Matters) of the Local Government Code, Vernon's Texas Code Annotated (Open Meetings Act). • Performance Evaluation and Merit Increases for WEDC Staff. Jason Greiner and Angel Wygant returned at 9:13 a.m. Section 551.072 (Real Estate) of the Local Government Code, Vernon's Texas Code Annotated (Open Meetings Act). Consider the sale or acquisition of properties located at: • Oak &Jackson • State Highway 78 and Sanden Blvd. • State Highway 78 & 5th Street Section 551.087 (Economic Development) of the Local Government Code, Vernon's Texas Code Annotated(Open Meetings Act). Deliberation regarding commercial or financial information that the WEDC has received from a business prospect and to discuss the offer of incentives for: • Project 2018-4a WEDC—Minutes July 18, 2018 Page 12 of 12 • Project 2018-5a • Project 2018-6a • Project 2018-6b • Project 2018-6c • Project 2018-7a RECONVENE INTO OPEN MEETING The WEDC Board of Directors reconvened into open session at 9:29 a.m. and took no action. ADJOU ' MENT With no further business, President Fuller adjourned the WEDC Board meeting at 9:29 a.m. Marvin Fuller,President ATTEST: Samuel Satterwhite,Director ylie Econo ic 1 evelo • anent Corporation E ORA DU TO: WEDC Board of Directors FROM: Sam Satterwhite, Executive Director SUBJECT: FY 2018-2019 WEDC Budget DATE: July 26, 2018 Issue Consider and act upon issues surrounding the WEDC FY 2018—2019 Budget. Analysis Below is an overview of the attached detailed budget showing Available Funding as well as Projected Expenses for the upcoming Fiscal Year based upon Board direction at the 7-18-18 WEDC Board Meeting. Available Funding $4,736,927 Beginning Fund Balance $720,887 Sales tax receipts 2,600,000 Sale of WEDC Pad Site 1,300,000 Interest Income 3,600 Rental income 112,440 Projected Expenses. $4,736,927 Personnel 434,540 Fixed Incentives 622,100 Future Projects 651,427 Special Services 263,900 Advertising 127,000 Community Development 68,600 Rental 29,328 Travel & Training 55,425 Dues 30,610 Audit& Legal 39,000 WEDC—WEDC Budget July 26, 2018 Page 2 of 2 Engineering 30,000 Debt Service. 1,751,819 Capital Outlay. 602,000 Operating 31,178 Board direction from the previous budget discussion resulted in a $100,000 increase of available resources based upon an increase to Beginning Fund Balance by the same amount. On the expense side there were increased expenses of$146,500 with Future Projects reduced by the net $46,500. As the Board will recall, the primary variation came from a $100,000 drainage & traffic study for future Jackson Street development. Staff was also directed within the July 18th Board Meeting to immediately address pavement/paver failure at the entrance to Premier Business Park. Staff has secured a quote from GT Construction for $40,000 to replace the pavers and repair to the subgrade. Staff requested an additional quote to replace the failing section with concrete which GT has indicated will significantly reduce the cost (updated quote not received as of yet). The maintenance will not take place within this fiscal year with staff recommending the full $40,000 placed within the FY 2018 — 2019 Streets & Alleys budget. The Board can consider two quotes and alternate replacement materials from GT in the future. This increase of $40,000 would require an offsetting decrease to Future Projects. An amendment to the FY 2018 — 2019 budget as presented would be required. Recommendation Staff recommends that the Board of Directors approve the FY 2018 - 2019 WEDC Budget as presented/amended. Wylie Economic Development Corporation FY 2018-2019 Budget mEVsmusm 2017-2018 2018-201e , Unreserved Beginning Fund Balance(1uu1) $40e.807 720.887 40210 Sales Tax 2.e31.474 2,600,000 46210 Anuootod Interest Earnings 3,000 3.600 Dairy Queen 11.e58 u Sale v[vvsoC Pad Site 1.502.820 1.300.000 *0110 Rental Income Steel Rd 6,000 6,000 1osm. Birmingham 12.000 12.000 711Coope, 4.e00 4.800 som Comm'uu1 16.800 17.220 6un Comm'uOO 24.000 24.000 ens Comm'ou4 12.000 12.420 u1u Industrial ot 9,600 o eoVKi,by 1e.000 24.000 1ou Oak at V 12.000 ~ 103.200 112.440 TOTAL RsVsmusa $4,859.259 4,736,927 sXpsmSsS e1100 Personnel Services'Direct Comp. 51110 Salaries $284.473 297.991 51140 Longevity Pay ` ` 1.309_ 1.453 Total Direct Comp 285,782 2ee/444 51200 Personnel Services'Other Comp. 51210 Car Allowance 12.e00 12.600 51220 Phone Allowance 4.656 *.6e6 51300 Personnel Services'Retirement(TImmG) 44.ee6 47.0e6 62.252 64,312 e1400 Personnel Services'Insurance 51410 Group Hospitalization&Life Ins. 36.e71 43.583 51420 Long-Term Disability 1.622 1.689 51440 FICA 18.500 1e.347 51450 Mauiuono 4.327 4.525 51470 Workers Compensation 786 821 51480 Unemployment Compensation'nmC 810 810 Total Insurance 62.716 70.784 TOTAL PERSONNEL SERVICES 410.750 *34.540 SUPPLIES 52010 Office Supplies Maps and Photography 11.e40 2,500 Pad Folios 2,000 1.000 7/36/1@ Wylie Economic Development Corporation FY 2018-2019 Budget Operating Supplies 1,500 1,500 Misc. 1,000 1,000 Total Office Supplies 16,140 6,000 52040 Postage and Freight Courier Services(10/yr©$49) 480 490 Postage 250 150 Misc. 250 250 Total Postage&Freight 980 890 52810 Food Supplies Leadership Wylie 400 300 Board Meetings 600 600 ICAN 250 250 Misc. 1,000 1,000 Total Food Supplies 2,250 2,150 54990 Other WEDC Small Business Resource Center 5,000 5,000 TOTAL SUPPLIES 24,370 14,040 MATERIALS FOR MAINTENANCE 54810 Computer Hardware and Software(maintenance) 3,000 2,000 CONTRACTUAL SERVICES 56030 Incentives Wdbrdg Ctr-Inland.-Sales Tax Reimbursement 279,000 275,000 B&B Theatre-Sales Tax Reimbursement 25,000 25,000 B&B Theatre Incentive(6 of 6) 25,000 25,000 CSD-Sales Tax Reimbursement 128,000 175,000 Getset(3 of 3) 10,000 0 EXCO(2 of 5) 20,000 20,000 All State Fire Equipment(3 of 3) 20,000 0 Von Runnen(3 of 3) 10,000 0 KREA-Infrastructure Reimbursement(1 of 1) 100,000 0 KREA-H&M Occupancy Tax Reimbursement 63,000 0 Patna Properties(2 of 2) 10,000 0 McClure Partners 50,000 0 REVA 100,000 0 REVA-H&M Occupancy Tax Reimbursement 26,250 0 Trout 15,000 0 SAF 45,000 45,000 Metalbilia 4,800 0 Dank(1 &2 of 4) 0 37,100 7/26/18 Wylie Economic Development Corporation FY 2018-2019 Budget Hooper-Woodbridge(1 of 1) 0 20,000 Future Projects 741,602 651,427 Total Incentives 1,672,652 1,273,527 56040 Special Services Claritas(4 demographic studies) 300 0 Janitorial Services 1,900 1,900 Mowing 7,000 7,000 Leasehold Improvements 5,000 5,000 Traffic Counts 3,000 5,000 The Retail Coach 0 10,000 Consulting Services 50,000 40,000 Drainage/Traffic Study 0 100,000 Environmental Services 50,000 65,000 Misc. 10,000 10,000 Transfer to GF-Interlocal Agreement 5,000 20,000 Total Special Services 132,200 263,900 56080 Advertising Chamber Directory 1,500 1,500 Pirate/Raider Football 1,200 1,200 Chamber Banner Ad 1,500 1,500 Wylie News Newcomers Guide 1,555 1,700 The Wylie News-misc. 500 1,000 Downtown Promotion 5,000 5,000 Promotional Materials 3,000 3,000 Regional Marketing Initiative 100,000 80,000 Woodbridge Scorecard 1,500 1,500 Website Maintenance 7,000 7,000 4Most Business Program(12) 18,600 18,600 Misc. 5,000 5,000 Total Advertising 146,355 127,000 56090 Community Development Christian Care Golf Tnmt/Sponsorship 2,000 2,000 Wylie Chamber of Commerce: Championship Rodeo 1,500 1,500 Banquet 1,500 1,500 Misc. 1,000 1,000 Rotary Club 1,000 1,000 Boots&Barbecue 1,500 1,500 Taste of Wylie 2,000 2,000 Regional Broker Event 10,000 14,000 Industrial Appreciation Event 5,000 10,000 7/26/18 � Wylie Economic Development Corporation FY 2018-2019 Budget Sporting Events 10.000 10.000 Flag Program 3.000 3,000 pr*Sale'Sponsorship 1.000 3,000 Merchants Assoc.'Downtown Events sou euO Habitat Golf auu aOO Collin College Gala 2.500 2.500 Collin County Prayer Breakfast 600 uou Coventry Golf Tournament 1.000 1.000 Education Foundation Fit 4 Business Event 5,250 3.000 4Most Events'materials 2,500 1.500 MGA Sponsor V 2.000 CC|MSnunnu, u 1.500 General Funds 5,000 a.u0u ` ^ . - Total Community Dev. 57.350 68,600 56110 Communications Internet u.*uu 2,600 Cell Phone Equipment snO e00 Office Lines 2,268 2.1e0 Microsoft Exchange son 500 Sales Force Licence 2,800 2.400 Tablet Service 1.368 1.3e8 ' ~ Total Communications 9,936 9,628 56180 Rental Expense usuG. Hwy 7o($u.umn@1xmo.) 27'000 27.000 Copier Service Agreement u_aun o.xu8 . Total Rental 2e.328 29,328 56210 Travel,Training,and Recruitment TsoCCvnoomnce Registration 1.200 1.200 Travel, lodging,meals 750 2,000 TsoCWinm, Annual'registration 1.200 eou Travel, lodging,meals 750 1.500 TEmCMiu'Yeo, Annual'registration 1.200 800 Travel,lodging,meals rao 1.500 Tsoc Board Retreat 1.200 1'200 |CGC'Nat'l Registration 3.600 3,600 Travel,lodging, meals 3,600 11.700 Wylie Economic Development Corporation FY 2018-2019 Budget ICSC-Texas Registration 500 500 Meals 400 400 Wylie/Collin County Days 0 10,000 Training-Assistant 0 500 Training-Director 0 500 Training-Assistant Director(3) 5,550 6,000 Sales Tax Training(3) 0 1,225 Prospect Recruitment 10,000 12,000 Total Travel, Train.&Recruit. 30,700 55,425 56250 Dues&Subscriptions TEDC(2) 1,000 1,000 Rotary(2) 1,458 1,500 Wylie Chamber of Commerce 1,500 1,500 Wylie Merchant Association 75 100 Woodbridge Golf Club 3,550 3,550 ICSC(8) 400 400 Notary Public 0 0 Dallas Business Journal 105 0 Club Corp 7,800 3,500 DFW Marketing Team 2,500 2,500 Impact Data Source 4,500 4,750 Property Search Tools 5,400 10,000 Misc. 500 1,000 Total Dues 29,598 30,610 56310 Insurance General Liability&Loss Casualty 3,500 2,800 Bond 310 310 Total Insurance 3,810 3,110 56510 Audit and Legal Services Audit 3,000 3,000 Legal 30,000 36,000 Total Audit&Legal Services 33,000 39,000 56570 Engineering-Architect Surveying 10,000 10,000 Engineering 20,000 20,000 Total Engineering-Architect 30,000 30,000 7/26/18 Wylie Economic Development Corporation FY 2088-2019 Budget 56610 Utilities Electricity&Water 2.400 � ` 2.400 TOTAL CONTRACTUAL SERVICES 2.177.329 1.e32.528 DEBT SERVICE&CAP,REpL 57110 Debt Service mondock/Vugxeo 20.214 u Amo'peumcordxmxme 80.589 88,589 ANo'Buchanan 87.e83 00.651 ANa'K&mxHubort 104.e43 104.9*3 unuufflsuge 204.718 u Kirby-Dallas Whirlpool 144.174 81.111 Woodbridge Parkway 15e.215 159.215 Junand 37.310 37.310 Principal Reduction 1.200.000 1.200.000 Total Debt Service 2.047.146 1.7e1.81e CAPITAL OUTLAY 58110 Land Acquisition 150.000 200.000 Title Policy 8,952 9,000 Commissions 72.272 81.000 58210 Streets&Alleys Downtown Alley u 150.000 o*4 Water Line u 150.000 *8810 Computer Hardware&Software 1,000 1.000 oauoo Furniture&Fixtures 1.000 1.000 ` TOTAL CAPITAL OUTLAY 233.224 e02.000 TOTAL EXPENSES $4.895.81e 4.736.927 7/I6/18 ylie cono is I evelop ent Corporation E ORA DU TO: WEDC Board of Directors FROM: Sam Satterwhite, Executive DirectoKe- SUBJECT: Future Agenda Items DATE: August 1, 2018 Issue Discussion of issues to be placed on future WEDC Board Meeting agenda (no substantial consideration/discussion allowed). Analysis During this Discussion Item, Board Members will have the opportunity to propose that an issue be placed on a future agenda for consideration. The Board will note that no substantial consideration/discussion is allowed so that there will not be a violation of the Open Meetings Act which requires discussion/action items be placed on Agenda's with specific language as to what will be discussed. For example, the above language will allow a Board Member to present a request for a certain item to be placed on an agenda for consideration, but not the ability for the same Board Member to argue the merits of the issue. Conversely, another Board Member may not discuss the merits as to why they may not want that particular item on a future agenda. Recommendation This Item is for discussion only and will provide direction to Staff. No formal action is allowed.