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PEDC Board Meeting Minutes September 15, 2020 Page 2 of 4 Mr. Bray stated that we did not receive the July financial statements in time for the last meeting. Mr. Pankaj shared a document with the Board that outlines the sale tax revenues going back several years and the monthly data for this fiscal year. He pointed out the administrative expenses shown in July financials were conservative. Under New Industry Projects, he pointed out expenditures for environmental items related to American SpiralWeld and Land Development expenses for clearing some of the PEDC properties. The PEDC total expenses for July were $126,007.85. Mr. Coleman made a motion to approve the July financial statements. Ms. Bills seconded the motion. Vote was 7 -ayes to 0 -nays. Mr. Pankaj stated the August financial statements shows a regular flow of expenses occurring. He explained that personnel and moving expenses were related to bringing on a new executive director and he described New Industry expenses related to rail restoration and High Demand Job Training. The total expenses for August were $140,240.02 and we ended the month with cash on hand at $4,489,096.04. Dr. Hashmi made a motion to approve the August financial statements. Mr. Coleman seconded the motion. Vote was 7 -ayes to 0 -nays. Discuss and Consider A )royal of the Bud et Ad'ustments for the 2019-2020 Budyet Mr. Pankaj presented the budget amendments for the 2019-2020 budget. Increases to Operations included $1,500 in Telephone/Communications, $5,000.00 to Moving for the new executive director, $41,000.00 for the Pace Group Consulting and $25,000.00 was added for the settlement of the former executive director. Mr. Pankaj explained that these expenses were unforeseen circumstances. The Direct Business Incentives for 2019-2020 increased by $200,000.00 for an incentive to Turner Industries to retain jobs and $75,000.00 for New Industry Projects to cover extra dirt work and environmental expenses for American SpiralWeld. Dr. Hashmi made a motion to approve the 2019-2020 budget adjustments. Mr. Fendley seconded the motion. Vote was 7 -ayes to 0 -nays. Discuss and Consider Action to En a ge an Accounting Firm to Produce Monthly' Financial Statements Mr. Bray led discussion on PEDC financials. Board members discussed engaging a local accounting firm to produce consolidated financials to include a P & L and balance sheet thereby allowing staff and the board to have a clear picture of long-term liabilities and commitments when evaluating administration of incentives. Following discussion, Dr. Hashmi made a motion to authorize the Chairman to engage an accounting firm to produce financial statements. Mr. Fendley seconded the motion. Vote was 7 -ayes to 0 -nays. Discuss and Consider Approval of a Bid for Rail Construction Services Ms. Hammond stated that as part of the 2018 incentive agreement between the PEDC and American SpiralWeld, the PEDC obligated up to a million dollars to rehab and construct rail to bring freight rail service to their project site. She explained that during the construction process, it was determined an additional 400 feet of rail would need to be constructed to meet the PEDC obligation to ASW. The cost for the new track was over the threshold for a change order, which required bidding the project out. At this point, Hammond referenced the bids in board packets - American Track Generations - $95,871.89; B&P Enterprises - $123,950.00; Bottom Line Company - $97,000.00; RailWorks Track Systems - $133,000.00. Mr. Gain explained the RFB (Request for Bid) process to the Board. He stated that in awarding a contract (Local Government Code #252.043), the board may select either the lowest bid or the bid that is in the best interest to the organization. During discussion, Mr. Fendley pointed out the insurance requirements on the RFB were extremely low. He suggested that the contract reflect the company's insurance amounts. Mr. Pankaj made a motion to accept Bottom Line Company's bid to construct 400 feet of rail. Ms. Bills seconded the motion. Vote was 7 -ayes to 0 -nays. Discuss and Consider Approval of the Contract for Rail Construction Services