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2003-02-12-Minutes MINUTES OF THE PARIS ECONOMIC DEVELOPMENT CORPORATION REGULAR. MEETING February 12, 2003 The Paris EConomic Development Corporation. met in regular session on Wednesday, February 12, 2003, 3:00 P. M. at Paris Junior College, Applied Technology Building, Room 1206, 2400 Clarksville Street. President Jay Guest called the meeting to order with the following Directors present: Curtis Fendley, Mike Dunn, Don Wall, and Richard L. Severson. Also present were Ex-officio Members Bobby Walters, Executive Director Gary Vest, City Manager Michael E. Malone, City Attorney Larry W. Schenk, and City Clerk Mattie Cunningham. President Guest called for approval of the minutes from a previous meeting. A motion was made by Director Severson, seconded by Director Fendley, for approval of the minutes as. presented. The motion carried unanimously. President Guest called for the financial report for January, 2003. Gene Anderson, Director of Finance for the City of Paris, came forward advising the Board that they had been furnished a cash flow statement that he had prepared for the month of January, 2003. He said the formal statements had been included in their agenda packets. Mr. Anderson said he likes to report by exception and if there are unusual items, he likes to point them out to the Board, but if there are routine type expenditures, he does not spend much time on them unless the Board has a question. He said during the month of January, all of the expenditures were of a routine nature as seen from month to month. He did point out that under furniture and fixtures, there were some expenditures for things that went to the Depot. A motion was made by Director Wall, seconded by Director Dunn, for approval of the. financial report as presented by. Mr. Anderson. The motion carded unanimously. Resolution No. 2003-001, appwving the.audit prepared by McClanahan & Holmes for the Paris Economic Development Corporation for the fiscal year ending September 30, 2002, was presented by City Ahomey Schenk. Mr. Anderson came forward stating that one of the most important things in thb au. dit is found in the auditor's report, which is the third page of the audit. He read the following opinion, "The general-purpose financial statements referred to above present fairly, in all material respebts, the financial Position of Paris Economic Development Corporation as of September 30, 2002, and the results of its operations and its cash flows for th e year then ending in conformity with accounting principles generally accepted in the United State of America." Mr. Anderson said that is an unqualified opinion. There were no findings of a reportable nature. Mr. Anderson asked the Board Members to turn to page six of the audit and item two which concerns deposits and investments. He advised that one of the things the auditors noted is that part of the money that the PEDC has was either uninsured in the bank or not collateralized in the bank. Mr. Anderson said the action on the agenda will give him the authority to fix that situation and prevent it from happening in the future. 860 PARIS ECONOMIC DEVELOPMENT CORPORATION RESOLUTION NO: 2003-001 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE PARIS ECONOMIC DEVELOMENT CORPORATION APPROVING THE AUDIT FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2002; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, Section 9.03 of the Bylaws of the Paris Economic Development Corporation (PEDC) provides for an annual financial audit by an indepeadent audit firm employed by the City of Paris for its annual audit; and, WHEREAS, the City Council of the City of Paris did heretofore, on the 12th day of August, 2002, select McClanahan & Holmes to perform the City's financial audit for the fiscal year ending September 30, 2002; and, WHEREAS, McClamhan & Holmes has completed its financial audit of the PEDC, and it is deemed appropriate that such audit be approved; NOW, THEREFORE, BE IT RESOLVED BY THE PARIS ECONOMIC DEVELOPMENT CORPORATION: Section 1. That the findings set out in the preamble to this resolution are hereby in all things approved. Section 2. That the audit prepared by McClanahan & Holmes for the Paris Economic Development Corporation for the fiscal year ending September 30, 2002, be, and the same is hereby, approved. Section 3. That this resolution shall be effective from and after its date of passage. · PASSED AND APPROVED this 12th day of February, 2003. Jay Guest, President ATTEST: Curtis Fendley, Secretary-Treasurer APPROVED AS TO FORM: Larry W. Schenk, City Attorney Resolution No. 2003-002, authorizing and directing the Director of Finance to make appropriate investments of funds that are uninsured or not secured by pledged securities, including establishing new accounts, diversifying accounts, or taking other similar actions, in order to maintain the security of PEDC funds, was presented by City Attorney Schenk. After discussion, a motion was made by Director Severson for approval of the resolution. The motion was seconded by Director Wall and carried unanimously. PARIS ECONOMIC DEVELOPMENT CORPORATION RESOLUTION NO. 2003-002 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE PARIS ECONOMIC DEVELOPMENT CORPORATION, AUTHORIZING THE FINANCE DIRECTOR OF THE CITY OF PARIS TO MAKE APPROPRIATE INVESTMENTS IN ORDER TO MAINTAIN THE SECURITY OF PEDC FUNDS; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO TI-W. SUBJECT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Paris Economic Development Corporation is a non-profit corporation governed by the Development Corporation Act of 1979 (the Act) and was established for the purposes of promoting, assisting, and enhancing economic development; and, WHEREAS, the means and measures authorized by the Act and the assistance provided therein with respect to financing are found to be in the public interest and serve a public purpose of the state in promoting the welfare of the citizens of the state economically by securing and retaining business enterprises and the resulting maintenance of a higher level of employment, economic activity, and stability; and, WHEREAS, in keeping with the purposes for which the legislature enacted the Development Corporation Act of 1979 and the purposes for which the voters of the City of Paris established the Paris Economic Development Corporation, it is deemed appropriate that the Finance Director of the City of Paris be authorized to make appropriate investments of funds that are uninsured or not secured by pledged securities in order to maintain the security of PEDC funds; NOW, THEREFORE, BE IT RESOLVED BY THE PARIS ECONOMIC DEVELOPMENT CORPORATION: Section 1. That the findings set out in the preamble to this resolution are hereby in all things approved. Section 2. That the Director of Finance of the City of Paris be, and he is hereby, authorized and directed to make appropriate investments of funds that are uninsured or not secured by pledged securities, including establishing new accounts, diversifying accounts, or taking other similar actions, in order to maintain the security of PEDC funds. Section 3. That this resolution shall be effective from and after its date of passage. PASSED AND ADOPTED this 12th day of February, 2003. Jay Guest, President ATTEST: Curtis Fendley, Secretary-Treasurer Larry W. Schenk, City Attorney President Guest called for discussion of the development standards of the Industrial Park. Gary Vest advised the Board that at the last meeting he presented a set. of development standards for the Industrial Park and asked that the Board Members take a look at those plans. Mr. Vest said that basically what these standards will do is set up a process where the owners of the Park will pay into a common fund to maintain the common areas such as the streets and roads: It also specifies what type buildings can and cannot be placed in the Park. Mr. Vest said he wanted to give the Board an opportunity to see if there were any questions about these development standards.. Mr. Vest said, as they proceed, these things may be amended from time to time, but not to circumvent the intent of these standards. He told the board that he would like these standards adopted at the. next meeting, if possible. City Attorney Schenk said the only suggestion he had was that they might want to have further discussion. He added that since they are businessmen, they should review the standards from the perspective of locating their own business in the Park if they had to abide by these development standards. City Attorney Schenk wanted to know if this was going to be a corporation. Mr. Vest said he was not sure at this time, but it may be an association and Jim Shackelford said it could be either one. Mr. Vest said he had asked City Attorney Schenk to look through and see if he has complied with all of the city codes and standards. City Attorney Schenk stated that with regard to the city codes and development standards that the architect needs to get with the city officials to make sure of that because he cannot do that. He said that the development standards need to comply with the planning code for the City of Pads. The City Attorney said Steve Methven will help with anything they need to know. He again stated that the directors, who are successful businessmen, need to look at the documents as if they were going to site a business on this property and think of what would present them with a problem. He stated that then they would have to balance their interests as businessmen with the interest of the PEDC in operating and developing the Park. Mr. Vest said that actually what the PEDC would be relinquishing was the control to the people who will be owners of the property. He said the other option that' they have is for the PEDC to continue to maintain all of the common areas. Director Fendley stated that there should be some type of control as long as-the PEDC has lots for sale. Mr. Vest said that the PEDC would be involved as long as there were lots for sale. He also stated that at some point in time the PEDC will have to do something with the streets. President Guest stated that in speaking to the concern of protecting the people who are going to be located there, the PEDC will have to address the issue with their neighbor. Mr. Vest informed .the Board that they ran phase one of an environmental scan on. the Superior Switchboard property and they came up with all kinds of. problems, and the inspector who sent him a letter felt like it was going to eventually be encroaching upon the PEDC's property with their contamination. He said a detailed analysis was not done, but he did determine the presence of hazardous contaminates several hundred feet from the old Superior Switchboard building. Mr. Vest said to go to the next phase would cost approximately $25,000.00 and it would determine what those contaminates are and how deep in the ground they are. Mr. Vest further discussed that there was a definite possibility. 'that the contaminates could travel through the groundwater and contaminate the PEDC property, if it had already not done so. He stated that without additional study the extent of the contamination and its effect on PEDC property would not be knoxvn. There was general discussion among the group about the need and method to determine the extent of the contamination. City Attorney Schenk suggested that the PEDC should be testing on their adjacent property at this time. Mr. Vest stated that he needed to talk to Joe Grizzle who has an investor who actually owns the property. City Attorney Schenk stated that the responsibility of that type of environmental quality issue would be a state issue and the TCEQ is who the PEDC needs to talk to regarding whatever findings they come up with. The City Attorney further advised that it would not hurt to go through our state representative's office with our concerns when and if the Board goes to the next phase of testing. He said when the PEDC does that, the Board needs to be very careful because the company has an interest in that property and what we do with that property could also be construed as adversely affecting their ability to sell the property. He stated that the PEDC would be looking at a liability in this instance. City Attorney Schenk said.. one thing that can be done is just a simple call to the state representative's office saying they were concerned about a state violation with that property and see if there is someone that could take a look at the property. Director Dunn told the Board he did not see how they could sell a piece of property out there because they have to do an environmental audit of the area, and it is going to come up when the audit is performed. After further discussion, it was the consensus of the Board that Mr. Vest talk With Mr. Grizzle about this matter and tell him the position of the PEDC with regard · 866 to the Park property. Mr. Vest advised the Board that they have copies of proposals for the. Industrial Park master plan created by Jim Shackelford, the PEDC's Architect, and there are four options in the packets. Mr. Vest pointed out that he has hypothetically, placed buildings and potential roads. Mr. Vest went over the proposed options with the Board Members. He asked the Board Members to look over the proposed master plan and if they had any concerns to let him know. Mr. Vest did say that he had contacted Reeves Hayter and asked him to start looking at engineering for utilities and designing roads. Mr. Vest.advised that he will come back and asked for the Board's approval to hire Mr. Hayter to do this work. At.3:38 P. M. President Guest announced that the Board would go into an executive session pursuant to Sec. 551-087 (1) to discuss or deliberate regarding commercial or financial information (of a business) that the PEDC seeks to have located, stay, or expand in or near Paris and with which the PEDC is conducting economic development negotiations, or (2) to deliberate the offer of a financial or other incentive to a business prospect. At 3:55 P. M. President Guest declared the executive session closed and the regular session open. There being no further business, the meeting was adjourned. JAY GUEST, PRESIDENT ATTEST: MATTIE CUNNINGHAM, CITY CLERK