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04-25-2006 (WEDC) Minutes Wylie Economic Development CORPORATION Minutes Wylie Economic Development Corporation Board of Directors Meeting Tuesday, April 25, 2006 — 6:45 P.M. Wylie Municipal Complex— Council Conference Room 2000 Highway 78 North —Wylie, Texas CALL TO ORDER Announce the presence of a Quorum. President Fuller called the meeting to order at 6:45 p.m. Board Members present were: John Yeager, Merrill Young, and Mitch Herzog. Gary Bartow was absent. Staff present was: Executive Director Sam Satterwhite and Ex-Officio Member/City Manager Mark Roath WORKSESSION City of Wylie and Wylie Economic Development Corporation Joint Work Session. Mayor Mondy opened .the Joint Work Session at 6:45 p.m. Council members present were: Mayor Pro Tern Hogue, Councilwoman Allen, Councilman White, Councilman Porter, Councilman Newsom, and Councilman Young. • WEDC Operating Procedures WEDC Chairman Fuller and Executive Director Satterwhite presented the WEDC's response to the auditor's memo showing actions proposed to be taken to revise the WEDC procedures for better accountability. Some of the areas mentioned were: Minutes- Minutes will be transcribed and available to the WEDC Board by the next scheduled meeting. All minutes and agendas will be posted and sent to the City webpage. Minutes will also be provided to the City Council prior to the next WEDC Board Meeting. Minutes will be sent to the City Secretary after execution for scanning into the City laser fiche and retained in minute books. Administrative Assistance- Currently WEDC pays for one half of the cost of a position 1 secretary within the City Manager's Office. Mr. Satterwhite stated that this employee works 32 hours per week. Currently the WEDC is using the services of this employee 80- 90%. He acknowledged that this would lessen as items were reconciled, when asked by Mayor Mondy. City Manager Roath reported that the WEDC is now paying for a portion of the utilities; finance/auditing expenses as well as other overhead costs. Mr. Satterwhite said that he and the City Manager had an arrangement regarding WEDC requests for City department assistance. He said that if a WEDC request would take some time, he would confer with the City Manager before contacting a department underneath the City Manager. City Manager Roath said that WEDC requests need not be in writing. If the WEDC needed an inordinate amount of time from a specific department, written request for this service would be provided to the City Manager before the request was made to the department. Mr. Satterwhite commented that he may need additional office space and administrative assistance and was presenting this to the WEDC Board in the near future. He stated he would communicate with City Manager Roath regarding this issue. WEDC Deposits- Mr. Satterwhite acknowledged that all deposits would be placed in the City Bank Depository. All transactions would be handled by the finance director who was a Certified Public Investment Officer. Mr. Satterwhite mentioned one escrow deposit that was being held at another financial institution because of restrictions (tied to the agreement). Those restrictions should be lifted soon and the money will be deposited in the City Bank Depository. Mayor Mondy asked that the WEDC Bylaws be reviewed for connectivity with the new working policies. Related Party Transactions- WEDC Chairman Fuller stated that he had abstained from all voting regarding monies placed in the Inwood National Bank. He explained that the interest rate was higher than that provided by the Bank Depository. He explained that he had not voted on the action to place the money in his bank. Mr. Satterwhite explained that at the suggestion of the City Finance Director, WEDC will use the services of First Southwest on all depository and loan transactions with a related party transaction, to clarify that there are no improprieties. He explained that the WEDC Board was compiling a working policy regarding related party transactions that would be presented to Council. Mayor Mondy asked why these funds were unsecured for two weeks. Mr. Satterwhite explained that he had no explanation. He commented that once the board was aware of the security issue, they requested the bank secure the funds, which they did. Questionable Expenses- Several issues regarding questionable expenses including donations to the Blackland Prairie Foundation, lunches and other monies contributed as promotional advertising were discussed by the WEDC Board and the City Council. Mayor Mondy had serious concerns regarding the donation to the Blackland Prairie Playground due to the denial by the Council to contribute prior to the WEDC contribution. Mayor Pro Tem Hogue stated that he had concerns as to whether this was a donation rather than promotional advertising. Councilwoman Allen stated that she believed there were certain contributions that should not be made with taxpayer funds. Mr. Satterwhite stated that he believed by giving the funds, WEDC was promoting the WEDC and community. Mr. Satterwhite responded that he believed that giving to community events such as the Chamber of Commerce Golf Tournament, Taste of Wylie, and other community organizations promoted the WEDC in the community and was important. Mr. Satterwhite explained that the WEDC was allowed to spend up to 10% of the funds each year on promotional advertising. He explained that to date around 5% had been expended each year for this purpose. WEDC Chair Fuller expressed the boards opinion that it was important for the WEDC Executive Director to be able to take business sources to lunch to exchange ideals and form business relationships. Mr. Satterwhite explained that the WEDC Board was compiling a Promotional Expense Expenditure Policy that would establish criteria that could be used as a guideline when contributing and spending WEDC funds in this area. Council will receive a copy of this policy within the next 45 days for review and approval. In addition, and to maintain certain internal controls to prevent invalid and unauthorized expenditures, a Financial Standards and Accountability policy will be developed addressing the spending authority and limitations of the WEDC Executive Director and establish guidelines and a structure which prohibits any expenditure for strictly personal purposes. The WEDC Board will deliver this policy to Council within the same time frame as the Promotional Expenditures Policy. Councilmember Newsom had concerns with the purchase of lunches to build relationships with City staff. Mr. Satterwhite reported that the Council would be receiving a monthly report on all expenditures of the WEDC. He also explained that he had been in communication with the Finance Department to improve accounting of the WEDC expenditures. He reported that in the past, the Finance Department had been developing independent financial statements to the WEDC which were time consuming to Finance staff. Presently the Finance Department has those statements available via the new INCODE software and would be sending them to Council, on a monthly basis. Attorney Conflict- Council members asked City/WEDC Attorney Abernathy if there was a conflict of interest regarding representation to both entities. Mr. Abernathy explained that WEDC had signed an agreement, that in the event there was a conflict between the City and WEDC, Mr. Abernathy and his firm would represent the City's interest. Mr. Satterwhite commented that this was agreeable with the WEDC Board. e WEDC Accountability Reports to Council regarding current negotiations between prospective companies and WEDC. Councilman Porter requested information regarding current negotiations with proposed businesses desiring to relocate in Wylie. City/WEDC Attorney Abernathy suggested that these updates be provided in Executive Session to provide specific information and not affect ongoing negotiations. Mayor Mondy commented that the City was growing at a very fast pace. Growth brings with it issues never addressed before. He explained that he believed the City and WEDC were working together to resolve issues as they arose, to the benefit of the community and taxpayers of Wylie. • WEDC Vision • WEDC plans for Hwy 78 (Kreymer to Lavon) • WEDC plans for Hwy 205 Mayor Mondy asked WEDC and Council to be looking at the future business development of State Highway 78 from Kreymer to Lavon and State Highway 205. He stated that the two entities needed to look now at what type of development was best for these areas. Mayor Pro Tern Hogue asked Mr. Satterwhite if the WEDC had a business plan. Mr. Satterwhite stated that they did not have a business strategy plan but did have current plans for some developments. Mayor Mondy suggested that both entities meet in the near future for several hours to discuss these issues. City Manager Roath commented that it might be beneficial for the WEDC Board and Executive Director to compile a strategy or business plan. He further suggested that this could be a starting point for a Joint Work Session between the two entities. ADJOURNMENT With no further business, President Fuller adjourned the WEDC Board meeting at 8:56 p.m. Consensus of Council and the WEDC Board was to adjourn. 41.1‘ 4/4 Marvin Fuller, President ATTEST: Samuel D.R. Satterwhite Executive Director