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PEDC Board Meeting Minutes September 17, 2019 Page 3 of 5 Discuss and ossi:bly al!R_rove naming the Southwest Businesses "Gene Stallings Business Park". Mr. Hernandez asked for discussion and approval of naming the SW Business Park, the "Gene Stallings Business Park". Dr. Hashxni made a motion to approve naming the Southwest Business Park. Mr. Pankaj seconded the motion. Vote was 3 -ayes to 0 -nays. Discuss and possibb, act on amendments to the PEDC B ly aws tore uire city council a ;removal of all pro rams and ex enditures of the cor oration. Dr. Hashmi read the Bylaws Section 10.04, Amendments to Bylaws: "The Bylaws may at any time and from time to time be amended, provided that the Board files with the City a written application approved by the affirmative vote of four (4) or more members of the voting Board requesting that the City approve such amendment". He stated that the PEDC Board does not have four (4) Board Members today for a vote and there will only be a discussion. Mr. Hernandez agreed that the Board would only have a discussion today. Ms. Harris, City Attorney, explained that the Economic Development Act provides that "the Corporation's authorizing unit, the City of Paris, will approve all programs and expenditures of a corporation" under Local Government Code Section 501.073(a). She went on saying that she could not tell the PEDC that the existing PEDC Bylaws are illegal. Ms. Harris stated the PEDC projects need to be approved by: 1) by having them in the budget for the next fiscal year or, 2) on a project by project basis. Ms. Harris told the PEDC Board in a vast number of the cities the EDC takes each project to the city for approval. Mr. Hernandez asked how many cities Ms. Harris talked to. Ms. Harris answered that she talked to eight or nine economic development lawyers who represent various cities. Mr. Hernandez indicated the PEDC had contacted sixteen cities in our area and the results: two cities were not Part A; seven cities reported to their city council; and the last seven cities were very similar to the PEDC structure. Of the seven cities that were similar to us: five had complete control over their expenditures with no reporting to the city council; two had reporting requirements with one reporting over $400,000.00 and the other reporting up to $850,000.00. Ms. Harris said she talked to economic development lawyers and TML (Texas Municipal League) and they agreed on either having approval in advance through the budget or on a project by project basis. Mr. Hernandez asked how those who did not report to their city councils get by with it, if it is in violation of the law. Ms. Harris answered that they have different lawyers. To which Mr. Hernandez replied, so then we are not in violation of the law. Ms. Harris again said that she could not tell us 100% that we are in violation of the law. She continued by saying "that the better practice is to get that approval from the City Council because they have that authority; they have that duty under the Economic Development Law". Dr. Hashmi read a part of Section 4.12 which is the Board's relationship with the City; the first paragraph is concerning the $400,000.00 use of money and the second paragraph is saying the City makes PEDC responsible for its duties. Dr. Hashmi's point was that the bylaws already have this in them; so why are we changing the bylaws when this is already stated. Ms. Harris answered back that this is contradictory when the first paragraph is saying that the PEDC does not need approval for anything under the $400,000.00 ' amount and the second paragraph states that you need to have all your programs approved by the City Council. This makes the bylaws contradictory according to Ms. Harris. Dr. Hashmi questioned why we are trying to fix something that is not broken. He went on to say that if the Council thinks it is broken, they can write up an amendment to correct it. Ms. Harris said that they can agree to disagree on the matter. Since there is interest by the Council to change this, Ms. Harris suggested that they bring it before the PEDC first. Dr. Hashmi went on to say that if the PEDC bylaws are not illegal, then the City Council could just let the PEDC know that they are doing something wrong and to correct it. Ms. Harris stated she does not know what a court or the Attorney General would conclude with the PEDC bylaws, but she does think that it will be brought to the Attorney General for an opinion. Ms. Portugal, City Council Liaison, spoke up saying she talked to the executive director of the Texas Economic Development Corporation and considered him to be a better resource than TML Mr. Carlton Schwab told her that they have over 700 over economic development corporations in the state, and of those about one half can spend some amount up to a cap without going to their councils. His reason that the councils agree to a cap was that they do not want to go