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PEDC Board Meeting Minutes September 20, 2016 Page 2 of 5 Discuss and possibly approve August 2016 Financials. Mr. Wilson asked for any comments or questions about the August financials. He asked that everyone turn to the Cash Flow Analysis. The unencumbered reserves are $2,468,642.00. The I &S and Reserves has a balance of $708,294.00; which this month has gone down because the bond payment of $335,110.50 has been paid. Mr. Banks asked if it was the final bond payment and Mr. Wilson replied that there would be one more year to pay on the bond payments. He also added that there would be another year on the bond payments, but that year has been prepaid. Mr. Wilson went through the sales tax figures over that last few years to gauge the amount of sales tax income the PEDC could anticipate this coming year. The handout showing a Tax Income of $1,380,000.00 at the bottom of the Budget figures is what we are estimating for income. This would leave us an estimated surplus of $159,692.00. Mr. Brockman made the motion to approve the August 2016 Financials. Mr. Banks seconded the motion. The vote was 5 -ayes to 0 -nays. Discuss and possibly approve final budget amendments to the 2015 -2016 Budget. Mr. Wilson discussed the final budget amendments we would send to City Council. These amendments move money inside the budget just to be sure that there are no negative numbers in any line items. The spreadsheet shows that we are asking Mr. Anderson to take $17,000 out of the Contract Labor line and add it to the Depot Operations line that was negative. Also, we are taking $9,000.00 out of the Contract Services -Legal Fees line and putting $7,000.00 in the Salaries line and $2000.00 in the Social Security line to make sure they are both positive numbers. Mr. Banks made a motion to approve the final amended 2015 -2016 budget. Mr. Hughes seconded the motion. The vote was 5 -ayes to 0 -nays. Discuss and possibly vote to proceed with obtaining approval from Paris City Council to expend PEDC funds from its undesignated fund balance to finance the construction of the building at 2305 NW Loop 286. (According to the PEDC Bylaws, Section 4.12.) Mr. Paris stated that due diligence has been done. Bobby Smallwood Construction is a very good company and has done some excellent work in our community. Included in the Agenda Packet are Bobby Smallwood Construction's bid, the bid proposal with references, and the building plans. Two details left out of the Request for Bids were the surety insurance or a bid bond and builders' risk insurance. Mr. Smallwood was asked what the extra cost would be for both types of insurance; the bid bond would be a cost of $10,880 and the builders' risk insurance would be $2,040. The construction bid stands at $738,380.20; the bond, insurance and contingency are all separate expenses. We would like to move forward with approval from the Board to go before City Council on September 26, 2016, asking for a discussion with the Council of the concerns they have about the building construction at 2305 NW Loop 286. This discussion would have two suggested conditions presented to the Council: 1) the spec building cannot be leased without Council's approval and 2) the spec building cannot be sold without Council's approval. One concern the Council has is that a local employer would lease the building. Mr. Paris went on to say that the spec building is being built for the creation of primary jobs.