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03/31/1994 MINUTES22 MINUTES OF THE PARIS ECONOMIC DEVELOPMENT CORPORATION March 31, 1994 The Paris Economic Development Corporation met in a regular meeting on Thursday, March 31, 1994, at 4:00 P.M., in the City Hall, City Council Chambers, Paris, Texas. Chairman Philip R. Cecil called the meeting to order with the following board members present: Eric Clifford, Curtis Fendley, and Barney Bray, III. Also present were ex-officio board members, Jo Ann Parkman, Ike Jewett (representing Gary Cunningham) Michael E. Malone, City Manager,and T. K. Haynes, City Attorney, as counselor. Chairman Philip Cecil stated the first item on the agenda was approval of the minutes from the previous meetings of the Paris Economic Development Corporation. Chairman Cecil asked if there were any corrections to the minutes of the previous meetings, there being none, Board member Eric Clifford made a motion, seconded by Board member Barney Bray, to approve the minutes as presented, and the motion was approved unanimously. Chairman Cecil made note that Board member Leon Williams was not present at this time, but there was a quorum present. Chairman Cecil stated the next item on the agenda was the financial report, and asked Mr. Gene Anderson, Finance Director to go over this information. Mr. Anderson stated for the allocation period ending March 8, 1994 the total payment to the City was $237,140.29 including $959.24 interest to date. Mr. Anderson stated the City is making application for the tax i.d. number which would allow the money to be moved to a separate interest bearing account for disbursement. Mr. Cecil asked if money was owed to Day and Associates and if the Board had been billed for the preparation of the Charge. City Manager Malone advised they had not received a bill as of this date, and advised they would get the expenses together for a future meeting. Chairman Cecil stated when the Pace Group was employed by the Board they were asked to keep the Board brought up-to-date periodically on progress, and Dr. Brenda Schull of the Pace Group was present at this meeting. Dr. Brenda Schull of the Pace Group passed out information reflecting the individuals she had contacted, and said she has appointments next week with Bob Ford of Paris Industries and Dick Galloway of Super Sweet Feeds. She stated if the Board has someone they would like added to the list to let her know. She stated she is noticing some trends and patterns which are very positive. She stated people resources in this town are the outstanding factor. Board member Clifford stated that she might want to contact Tenaska. Dr. Schull stated she had been considering a radio station in regard to media. City Manager Malone advised K P L T is probably the longest running radio station, and she should contact Mr. Jeff Methven. Board member Curtis Fendley questioned if these were just retention groups. Dr. Schull advised she was mainly going the manufacturing route but would be glad to speak to others. Chairman Cecil thanked Dr. Schull for report and advised the next meeting of the Board was April 28, 1994, and he assumed that either Dr. Schull or Mr. Lovorn would be available at that meeting. 23 Chairman Cecil stated that ex-officio member of this Board, Jo Ann Parkman who is President of the Chamber of Commerce, and Mr. Bill Vaughan, President-Elect would like to make a presentation. Ms. Parkman advised Richard Chamberlain of the Chamber of Commerce has resigned effective June 30, 1994. She said the Search Committee headed up by Bill Vaughan is in the process of finding a replacement. Ms. Parkman stated they had done a recent survey of the Chamber members, and the number one emphasis was on economic development. She stated with Mr. Chamberlain's resignation and the survey in mind they thought perhaps they could come up with a plan to hire a Chamber/Economic Director who could fill both the Economic Development Director job and the Chamber job. She stated they felt this would be an opportune time to unite under one umbrella to accomplish what they are trying to do without duplication. She stated that an example would be the City of Terrell which has a premiere economic development corporation. She said in Terrell they have spent their money wisely and have already brought in 300 to 400 jobs. She said they have hired a joint Chamber/Economic Development person. She said the bottom line was the Chamber does not have the financial resources to pay this type person. She said she is asking the Board to consider a request of $25,000.00 from the P.E.D.C. to go along with the Chamber's amount of money as they search for this person to fill this position. Board member Eric Clifford asked if they were talking about a three year commitment from this group on a contract basis. Ms. Parkman stated that was correct. Ms. Parkman stated they would also like for City Manager Malone to be on the Search Committee. Board member Clifford stated when the work was done in the summer on the bylaws that both Terrell and Sulphur Springs by-laws are basically the same. He said, at that time, Terrell was held up as the City with results you would want to fashion your corporation after. He said they do have a Joint effort as Ms. Parkman has mentioned. He stated in Sulphur Springs their corporation has hired a separate individual and the Chamber has had their efforts ongoing, at the same time, and the end results have been some real problems. He stated if you had to pick a community you wanted to fashion your efforts after it would be Terrell. Board member Barney Bray stated he would like to see some kind of contractual relationship with a review process so that our commitment would be good for the three years, but if the individual is not performing satisfactorily the Board could have some input. Board member Clifford stated at the present time there is a annual review process at the Chamber. Mr. Bray said he did not want the Board locked into a situation where an individual is not performing and with no recourse. Board member Fendley stated he felt they would enter into an employment contract with input of this committee to the Chamber which would have an annual review process. Board member Clifford suggested that a board member and the City Manager be placed on the review committee that reviews performance every year. Board member Leon Williams entered the meeting at this time. 24 Chairman Cecil asked as a matter of clarification whether, in the typical contract the Chamber of Commerce enters into the contract extends over a period of years. Ms. Parkman stated the present contract with Mr. Chamberlain was for three years with annual options, and he is reviewed every year. Ms. Parkman stated they felt with Eric Clifford and T. K. Haynes as attorneys, they could draw up a contract that would be to their satisfaction, so they would not be locked into something that would have to be paid off. Chairman Cecil stated for clarification that the type of Chamber Manager they have had in the past really does not have the expertise in industrial development needed at the present. He also said historically the Chamber would pay and continue to pay that level of compensation. The compensation that the Chamber is asking the Board for is the amount they feel would be required to employ the individual with expertise in industrial development. Board member Bray stated he felt it would be very cost effective to have a joint venture but he would like for the Board to have some protection. Ms. Parkman stated she felt the attorneys would make sure they were covered. Board member Fendley said he felt economically this made sense. Board member Clifford stated in the other corporation that he is aware of they have hired an economic developer, and the amount is approximately $100,000.00 to $125,000.00 by the time you pay the people, and give them an office and staff. Chairman Cecil asked Mr. Haynes whether assuming the Board approves this arrangement, the Board would have a separate contract from the contract established by the Chamber, and would the contract be subject to Council approval. Mr. Haynes agreed. Mr. Haynes said it could be separate and included in the same contract covering the same things that would be covered in two separate contracts. Attorney Haynes said this Corporation would be contracting with the person for the services this Board will be directing. City Attorney Haynes said it could be a separate contract, but the money would be tied to the services. If within the first three months the Corporation was dissatisfied with the service and pulled their support then the Chamber still has a person with two-thirds of a contract still existing. As noted in the proposal of search persons, they sort of give a one year guarantee. He stated he felt with regard to the first year the reviews should be much shorter term than after the first year. Board member Clifford stated he felt the individual that is hired needed some assurances that the contract was going to be tied together to some extent. Mr. Clifford stated he and Mr. Haynes had thought this might be accomplished by one contract specifying the duties and the compensation with both entities signing as the makers of the contract. Chairman Cecil stated he felt the contract needed to be as simple as possible, but our compensation would be for the industrial development duties the individual would be doing. City Attorney Haynes stated the Board would be contracting for services to be rendered, and if those services are not satisfactory to this Board then the payment would cease. With regard to the services this Board's contracting for, that person would be directed by this Board as to those services contracted for, and the rest of his duties he would have to satisfy the Chamber. Board member Clifford stated he would like the contract as simplified as possible in order that the individual they are trying to employ is not scared off, or made to feel they are reporting to, too many people and be hesitant to come onboard. Chairman Cecil said he felt the contract did need to be made as simple as possible. The Board needs to exercise some control over being able to make a judgement regarding the individual's performance since the Board is Duttina money into the deal. 25 Chairman Cecil stated the Board's concerns are they need a contractual arrangement to protect the Corporation and to satisfy the City requirements. He stated the Board needs some input in passing judgment as to the person employed, and the logical method would be input from the Board members who are also members of the Search Committee through the Joint membership here. He said the Board needs an arrangement with a three year commitment, but they also need an annual arrangement to judge whether the person is performing adequately. If the person is not performing to their joint satisfaction, then the Board needs some method of terminating that person without being liable for the additional two years. Chairman Cecil asked for questions or comments. Board member Fendley asked due to the by-laws if that person is in a marketing mode and needs additional materials, will it come back to the Board through our 10% set aside for marketing, visiting plants, etc. Chairman Cecil said the Board did have the capacity to expend funds for marketing efforts, and it could be through this method or we could do it ourselves. He said he envisioned this as being flexible. Chairman Cecil asked for Ms. Parkman to comment on the situation in Terrell, and whether their situation is parallel. Ms. Parkman said yes, this is under the umbrella of the Chamber, but it is a contract from their Economic Development with the Chamber under the umbrella of the Chamber. Board member Clifford stated he thought Longview had a similar situation. Chairman Cecil asked if the City Attorney of Terrell could send them a copy of their contract. Board member Clifford advised the Board he would be happy to work with Mr. -- Haynes on the contract as they worked together on the bylaws this past Summer. Chairman Cecil stated he would now entertain a motion on Ms. Parkman's request. Board member Curtis Fendley made a motion, seconded by Board member Clifford that the Board enter into a contract with the Chamber of Commerce for the $25,000.00 request on the three year with annual review contract. Chairman Cecil asked for questions. Board member Leon Williams questioned, since he was late, whether he could get a broad or short summary. Chairman Cecil said basically the Chamber of Commerce is asking the Board, in view of the fact the Chamber Manager is retiring, to help hire a new manager with industrial development qualifications who can take over the leadership for industrial development in Paris. In order to get a person with those qualifications, it takes approximately $25,000.00 per year more than an ordinary Chamber manager. What the Chamber is asking the Board to do is, rather than considering hiring a person themselves to do industrial development, that we join with them and hire one person to do both jobs. In order to accomplish this the Chamber is asking the Board to commit an expenditure of $25,000.00 per year for three years subject to reviews and a proper contract for this purpose. City Attorney Haynes stated when the bylaws were prepared, the Chapter was left out concerning the position contemplated at a later date, and it is very appropriate that the Board contract for less than a whole person in an interim basis while the Board is getting their business organized. Chairman Cecil stated in the bylaws when this Board contracts for personal services then that action has to be approved by the Council, and whatever is recommended will need further approval from the Council. oard member Eric Clifford stated he looked upon this as a cost saving step that the Board was probably going to have to do in the near future. He stated the longer he is on the Board he is more aware of what the competition is doing, and feels the Board is going to need some help in that area. Chairman Cecil stated on a volunteer basis it is very difficult to get this situation covered. Board member Clifford stated when the enabling legislation was passed it raised the level of competition for industry and industrial jobs across the State of Texas. Chairman Cecil stated there is a motion on the floor and the motion carried unanimously 5 ayes and 0 nays. Chairman Cecil thanked Ms. Parkman for the presentation. Board member Clifford stated he would present this before the City Council when it is on the agenda and explain it to them. It was the consensus of the Board for Mr. Clifford to do this. Chairman Cecil asked if there was any other business and there being none he declared the board meeting recessed until the next regular meeting. CHAIRMAN PHILIP R. CECIL ATTEST: ASSISTANT CITY--CLERK,~BARBARA DENNY