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PEDC Board Meeting Minutes December 20, 2016 Page 2 of 4 research, he found a policy that was more affordable. There is not an insurance reimbursement request in November, but December will have an insurance reimbursement request. Mr. Wilson said if we look at the last page of the financials, we would see that our cash balance moved up about $100,000. That would be $100,000 more than we spent. Mr. Wilson moved that the Financials for October 2016 and November 2016 be approved. Mr. Brockman seconded the motion. Vote was 5 -ayes and 0 -nays. Discuss and possibly approve funding for the Park Street Proiect. The discussion opened with Mr. Paris recapping the December 8th Board Meeting. In that meeting the Board voted to accept Wheeler Construction's bid for $56,922.00. At that time we were looking at a Public/Private partnership with the PEDC, Aequs and Potters sharing the cost of this project. Since the bids came in lower than expected, we are proposing that the PEDC take on the cost of the Park Street Project. Mr. Paris did point out that both industries are participating in the revitalization in other ways: Aequs will be expanding their entrance off of Park Street; Potters will be building a concrete street across Park Street to a new building they are constructing. The City will participate in the Park Street Project by cleaning out the ditch and applying the chipseal to the top of the street once our contractor has fmished his part. Mr. Paris recommended that the funds be approved for Wheeler Construction to continue the project. The PEDC can take on the cost of this project under the 501 Local Government Code that allows us to participate in the infrastructure and the road repair for our industries: Aequs, Potters, Powder. Mr. Banks was concerned about how long the new surface on Park Street would last. Mr. Wilson said soil cement is being used with specifications identical to the Texas Highway Department's specifications. Mr. Brockman moved that the PEDC spend the $56,922.00 for Wheeler Construction as intended on the Park Street Project; finding the expenditure necessary to promote, develop retention and expanded business enterprises with these two companies that are key players in our economy. Mr. Hughes seconded the motion. Vote was 5 -ayes and 0 -nays. Discuss and possibly approve prorating deliverables in good faith as given by the Incentive Agreement for Daisy Dairy. Mr. Paris began the discussion saying May 30`h of 2011 was the date Daisy Dairy's Incentive Agreement became active. On June 1, 2011, the Water Supply Agreement between the City of Paris and Daisy Dairy was signed stating that Daisy Dairy would use a million gallons of water daily or 365 million gallons of water annually. At the start of the agreement the water rate was $1.20 per 1000 gallons. The first benchmark for Daisy Dairy was set to 100 employees by June 1, 2016; this was the end of year five. There is a secondary rate period, which is the next five years of the agreement. On Daisy Dairy's employee listing for May, 31, 2016, they had 92 employees. Mr. Paris noted that in previous reports their employee count has been up to 102 and currently, Daisy Dairy's employee count is 108. He comments further that this incentive agreement can be interpreted in different ways. Mr. Paris recommends that we review this initial rate period only as a benchmark since no funds are required of us. He has communicated with Daisy Dairy about Year Six; telling them the employee count needs to be at 110 to be reimbursed by the PEDC. Mr. Banks asked why their employee numbers are closer to 92 than to 100. He also asked if it was because they were not building barns. Mr. Wilson said that the dairy herd has been growing and they have been adding to their infrastructure. The agreement provides credit for additional investment in the form of new equipment or new improvements. Mr. Paris recommended that we allow the benchmark in good faith; that the average employee count is around 99 and that in good faith we will continue on with this agreement. Daisy Dairy is a quality employer that employs many Paris residents. Mr. Brockman made a motion to accept Mr. Paris' recommendation that in good faith we will continue on with the Daisy Dairy agreement. Mr. Banks seconded the motion. Vote was 5 -ayes and 0 -nays.