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11/11/2014 MINUTESPARIS ECONOMIC DEVELOPMENT CORPORATION MONTHLY MEETING Tuesday, November 11, 2014 MINUTES Board Members Staff Present: Stephen Grubbs, Chair Present: John Brockman, Vice Chair Rebecca Clifford, Secretary /Treasurer Don Wilson Ex- Officio Members Guest(s) Present: John Godwin, City Manager Present: Dr. Pam Anglin, PJC President Steve Keywood, Chamber Chair Legal Counsel: None City Council Liaison: Edwin Pickle Shannon Barrentine Interim Executive Director Chassidi Taylor Admin. Assistant Connie Beard, The Paris News Anna SpencerSue Lancaster, Paris City Council Louise Moseley Chip Harper Stephen Grubbs called the meeting to order at 4:00p.m., and welcomed those present. Confirmed a quorum was present. Approval of minutes from the October 14, 2014 regular meeting; October 23 and 27, 2014 called meetings Don Wilson made a motion to accept the Minutes as submitted for October 14, 2014; seconded by John Brockman. Motion Carried 4 -0. John Brockman made motion to accept the Minutes as submitted for October 23, 2014; seconded by Don Wilson. Motion Carried 4 -0. John Brockman made motion to accept the Minutes as submitted for October 27, 2014; seconded by Don Wilson. Motion Carried 3 -0. Stephen Grubbs recused himself. PEDC Board Meeting Minutes November 11, 2014 Page 2 of 10 Approval of September and October 2014 financials Stephen Grubbs stated as of the end of September,PEDC's cash position was $1,578, 999.45. Shannon Barrentine stated the expenses were standard and the legal fees were approved at the October meeting. Don Wilson asked where PEDC stood with the corrections that were made to the Budget. Shannon Barrentine stated Gene Anderson and the auditor confirmed everything is in good standing. Don Wilson made a motion to approve the financials; seconded by John Brockman. Motion Carried 4 -0. Interim Executive Director's Report: • Update on Industry Appreciation Week 2014. Shannon Barrentine provided pictures of the 4 industries that PEDC provided breakfast and visited the week of October 28th(RK Hall Construction, Campbell's Soup Company and Paris Junior College) plus November 6, 2014 was Kimberly - Clark. The total cost was $1,426.23. Don Wilson stated that it was a good opportunity with RK Hall Construction, their Regional Manager from Denver, Colorado was there. He was very appreciative that RK Hall Construction was a part of Industry Appreciation Week. He was complimentary of the support RK Hall Construction received. Stephen Grubbs stated it was nice to recognize the industries and thanked those who attended the events. • Lamar County Coalition of Education, Business & Industry(LCCEBI), Employer Roundtable meeting, Friday, November 14, 2014 from 9 a.m. to noon. Shannon Barrentine stated that this will be the 3rd and final roundtable meeting. LCCEBI will gather the data from the three meetings and the information will be available to everyonein early 2015. Dr. Pam Anglin can use that information for workforce and PEDC can also use the information for industries and the skill set they are looking for. Shannon Barrentine stated that she would be attending. • Status of EMS Station location in Northwest Paris. John Godwin sent Shannon Barrentine an email thanking the PEDC Board for adding the item to the November I ld'Agenda. The proposed site is further west than isprefered so moving it even further west to your other proposed site would take EMS out of their functioning location.As a result of this, we will pursue private property on the loop back towards the east. If that falls through perhaps we can try to renegotiate with the PEDC at a later date. Discuss and possibly take action on Statement of Qualifications from local attorneys to assist with legal issues pertaining to the PEDC organization Stephen Grubbs stated PEDC sent out a Request for Qualifications to 25 local attorneys and PEDC received 2 responses. One was from A.W. Clem, The Moore Law Firm and David Hamilton. Don Wilson stated that it seems like Mr. Clem is offering the entire Moore Law Firm. PEDC Board Meeting Minutes November 11, 2014 Page 3 of 10 Mr. Clem would be the contact and would direct PEDC to whoever can handle that particular matter. It appears that Mr. Clem will be using Casey Gain or anyone of the other 3 litigators. Shannon Barrentine stated his ratewas $200/hour but the last sentence of the paragraph on the second page also states "most of my practice is based on preparation of documents which is determined by the amount of time spent and the expertise required for such preparation. For an example, a release of lien is fairly mechanical and is usually prepared by the legal assistant and reviewed by me therefore the fee is $50- $75/hour depending on its complexity." Stephen Grubbs asked how much work has Mr. Clem and The Moore Law Firm done with the PEDC in the past? Don Wilson stated that Phil Smith used to be a part of The Moore Law Firm. Shannon Barrentine stated that he hasn't been a part of the Moore Law Firm since she has done work for the PEDC; he has been on his own. Rebecca Clifford stated that Mr. Smith did J. Skinner's Agreement and BodyGuard's guaranty last year. Stephen Grubbs stated David Hamilton's proposal is well prepared; he has strong experience on open records and city government and so forth. Shannon Barrentine stated that he actually went by the Statement of Qualifications list. Stephen Grubbs stated that David Hamilton's rate was$175/hour. Has PEDC used him before? Shannon Barrentine stated PEDC has not, but then again he is a one man shop which is what Don Wilson was referring to. Don Wilson stated there isn't anything wrong with that. John Godwin stated that he has minimal dealings with A.W. Clem and James Rodgers. Don Wilson suggested Stephanie Harris, Assistant City Attorney. This has happened due to Kent McIlyar basically being forced out of being PEDC's attorney. With Kent McIlyar out, what difference would it make if Stephanie Harris became our attorney? Does she have the time and can she serve as PEDC's attorney? John Godwin stated Kent McIlyar is her boss and she didn't want to be put in a bad situation nor something contrary to her boss. He also stated he didn't think she had a background in municipal government or in Economic Development. She's a great prosecutor, which is more of her expertise. Stephen Grubbs stated that questions come up would she be available for that instead of calling Jeff Moore or A.W. Clem? John Godwin stated it shouldn't be an issue, she works 40 hours a week and she's an excellent attorney and the city is already paying her so it would be free. Stephen Grubbs stated the ideal situation would be what we've seen at some of the other EDC's where they have that relationship with the city. John Brockman asked would it be appropriate to say that we might deal with both law firms depending on their expertise. Shannon Barrentine stated that the PEDC would have to have a letter of agreement on the services that they would provide. Stephen Grubbs stated that he doesn't know that there would be a proposal based upon PEDC Board Meeting Minutes November 11, 2014 Page 4 of 10 thinking they got the exclusive that maybe something we have to clarify if PEDC wanted to do that. Edwin Pickle asked would there be some type of conflict of interest with David Hamilton being the attorney of Reno, as well? If there is an opportunity for industry and they think of relocating Paris versus Reno. Shannon Barrentine stated that's a good point. Don Wilson stated neither A.W. Clem nor David Hamilton talk about billing increments. If you look at Jeff Moore he bills in 10 minute increments. Shannon Barrentine asked the Board if they wanted to table it to ask the two that submitted for consideration their actual billing method and we have that for our next meeting. John Godwin said to keep in mind, Request for Qualifications for Professional Services, you don't make decisions based on cost, select the best one on qualifications and negotiate with them and if it doesn't work out then go to next one. Shannon Barrentine stated it should be based on their qualifications and their professional services. Stephen Grubbs stated that having a team of attorneys would be an advantage doesn't mean they have more experience they certainly have more resources. John Brockman asked the Board if they should clarify that A.W. Clem is offering the whole firm. Don Wilson stated if PEDC select them PEDC needs to negotiate because there has been a lot of criticism of Jeff Moore's rates, his rate is $225/hour. PEDC receives tax payer money and they do the best they can. John Brockman stated that he knows A.W. Clem and doesn't know David Hamilton, he would be more comfortable with A.W. Clem and if PEDC gets the benefits of the entire firm that's even better. Don Wilson stated PEDC is not supposed to negotiate on price, but PEDC needs to know exactly what we are getting into, because like Jeff Moore, attorneys have different rates some are $160, $200, $225, PEDC definitely needs a list of attorneys and fees so when PEDC calls they can call the attorney that charges less. Stephen Grubbs stated the motion is to negotiate exclusively with the Moore Law Firm and Mr. Clem and see if that is the direction we want to go. Don Wilson made a motion to negotiate with The Moore Law Firm and get a better understanding of what is being offered and the rates; PEDC should bring back to the next meeting; seconded by John Brockman. Motion Carried4 -0. Discuss and possibly take action on Lamar County Days in Austin on April 8 & 9, 2015 Stephen Grubbs stated that PEDC is the group that coordinates and administers a lot of visits with the politicians and the legislators in Austin. Shannon Barrentine stated the PEDC Board needs to say whether or not they will participate. PEDC isn't the lead entity. PEDC assists the Chamber. Shannon Barrentine stated in 2013 Melissa Cook, Chamber President, made all of the arrangements for the hamburgers and hotel. We do burgers on the south lawn for all the elected PEDC Board Meeting Minutes November 11, 2014 Page 5of10 officials and staff at the capital that day. We served 1,200 burgers in 2 -1/2 hours in 2103. It's a lot of prep work a lot of getting them down there and setting it up the day before was the day we went to the House and the Senate and PEDC was recognized in the gallery that we were present for Lamar County Days in Austin. PEDC can make another successful year working with the Chamber and Leadership will be there the same two days. Stephen Grubbs stated PEDC needs to vote whether to proceed with participating in Lamar County Days and allow Shannon Barrentine to work with the Chamber Committee. Dr. Pam Anglin vendors gave a lot of donations, between the Chamber and PEDC putting in $5,000 each will help. Don Wilson stated there are food costs, tents, chairs, parking meters being bagged, hotel stay, transportation, and meals. Don Wilson stated the "elephant" in the room... is this beneficial for Paris, Texas? How much "mileage" do we get out of this? There was a lot of good conversation about transportation and different speakers that came and spoke to the group that were the heads of departments. Don Wilson stated PEDC needs to make sure that the citizens understand PEDC is down there as lobbyist basically. Shannon Barrentine stated it's two days of hard work. Edwin Pickle statedHwy.19 /24 conversation started at the Lamar County Days event in Austin with Phil Wilson of TxDOT. Dr. Pam Anglin suggested doing Lamar County Days earlier because there could be a legislative agenda that we want to have an impact on. If you wait, decisions will already be made. Stephen Grubbs asked if PEDC could come back with an estimated cost for participating in Lamar County Days. Stephen Grubbs stated no action taken have Shannon Barrentine to continue to work with the Chamber and Leadership and follow -up. Discuss and possibly take action on the proposed Plan of Work for FY 2014 -15 Shannon Barrentine stated Promotion and Marketing Budget was $75,000. On page 2 under goal implementation on the Property Assessed Clean Energy Program (PACE) and then on page 3,Item A, has already been completed. The Bylaws were amended on 8/25/14 and it includes a statement that the PEDC will bring all project proposals $400,000 or more to the City Council for approval before implementation. Rebecca Clifford and Edwin Pickle are working on an incentive agreement template to be included in the Standard Operating Procedures. The last thing is the incentives agreement template to be completed and executed before the SOP's go to the City Council. The PEDC have pending incentive agreements with T &K and Potters Industries. The last page of the proposed Plan of Work included the approved budget for FY 2014 -15. The PEDC has $35,000 budgeted for job training. John Brockman stated that he thought PEDC had money for legal services. Shannon Barrentine stated that because the Board decided if the Defenbaugh investigation went away, then PEDC would go back to using the City Attorney. So, there wasn't a budget figure plugged in. PEDC Board Meeting Minutes November 11, 2014 Page 6 of 10 Rebecca Clifford stated that T &K and Potters Industries incentive amounts should be $45,000 each. Don Wilson asked if the $116,000 for J. Skinner was real or not? Shannon Barrentine stated the $116,000 were left from last year because they didn't meet all the job creation numbers in 2013. Shannon Barrentine stated that PEDC did Best Practices with Kilgore and Tyler and other successful EDC's. Page two, goal two, Evaluate pursuing CDFI Paris Living; Shannon Barrentine stated the Manufacturing Academy didn't work. PEDC should continue to pursue Certified Work Ready Communities with career readiness certificates. Dr. Pam Anglin stated that with HB -5, CTE duel credits are actually taking place; page 3, meet with key State agencies and other officials during Lamar County Days. Stephen Grubbs stated there are a lot of changes being made to this document; do we need to have a work session? Stephen Grubbs stated that the Board will table this item for further review and discussion. Discuss and possibly take action on the Paris EDC Board reimbursing the City of Paris for Paris EDC staff being employees with benefits, as it currently available. John Godwin stated that Rowlett and Fairview EDC's staff were city employees. The EDC Director worked under with the City Manager. Fairview had Type A and Type B Sales Tax Revenues and they had two different Boards. They didn't supervise employees which promoted a sense of teamwork in Fairview because the City Engineer, Planning Manager, Community Economic Development Corporation (CEDC)Director all worked together. The CEDC Director went to staff meetings and went to the Planning and Zoning meetings. People were held accountable. Edwin Pickle stated that John Godwin can serve as the Economic Development Director, as well as, the City Manager. If PEDC had a contract like Kilgore we could try it for a year and see how it works. Don Wilson stated that what you described is not what is in Kilgore, the issue is if the City Manager is managing the EDC Director then the City Council would be in charge of the Board. Shannon Barrentine stated a Board is required, the Board and the City Council approve the Budget. John Godwin stated that for 17 years the EDC Boards were very active they just didn't deal with personnel issues. Don Wilson stated that Kilgore runs everything like us; they are city employees with insurance and benefits. Edwin Pickle stated you can't be a city employee and not report to someone in the City. John Godwin stated that would create a situation like the Health Department was in the past. The City carries the liability of potentially getting sued. We get sued by employees we didn't hire, fire, nor supervise. They got mad and sue someone which was PEDC Board Meeting Minutes November 11, 2014 Page 7of10 the City. John Godwin doesn't want to be responsible for someone he doesn't have control over. Don Wilson stated that we need to sit down as a Board and talka bout it. No action was taken on this item. Discuss and possibly take action on a Memorandum of Understanding (MOU) between Paris Junior College (PJC), Paris ISD (PISD) and the Paris EDC to reimburse PJC WorkKeys testing fees for PISD High School Seniors, per the Program of Work. Stephen Grubbs stated the Memorandum of Understanding (MOU) is between Paris Junior College (PJC), Paris Independent School District (PISD) and the PEDC for reimbursement of testing fees for 135 seniors at $28 per student. Dr. Pam Anglin stated that Paris Junior College had paid $3,780 for the PISD seniors and the results go on the ACT National Database. Dr. Pam Anglin stated the website will show how many students tested at a bronze, silver, gold, or platinum level and they meet those basic skills which supports the Certified Work Ready Communities initiative. Campbell's Soup uses KeyTrain which will supplement and enable to increase the level a person needs to be for a certain job. Dr. Pam Anglin stated the test is for basic reading, math, and locating information relative to industry; the importance of this test needs to be publicized. Steve Keywood asked who pays the cost of the test? Dr. Pam Anglin stated Hopkins EDC is paying for their seniors to take it. Seniors taking it in Texas is new. It supports the HB -5 requirements. Dr. Pam Anglin stated it is estimated to be a total of 500 seniors in Lamar County. Don Wilson stated approximately $4,000 for PISD and$14,000 for all seniors in Lamar County. Shannon Barrentine stated the first test PEDC will pay and at the end of the year if they want to test again the student will pay. Dr. Pam Anglin stated if they aren't work ready it sends a message to the school and the Board. Stephen Grubbs asked if we see it going past $14,000 and 500 seniors? Dr. Pam Anglin replied no. Rebecca Clifford stated the schools should test at the junior level and the senior level, because that would give them a year to get a better score. Shannon Barrentine stated to start the spring of their junior year. John Brockman made a motion to reimburse Paris Junior College for the PISD testing fee and the total amount not to exceed 500 seniors or $14,000 for all Lamar County school districts moving forward; seconded by Don Wilson. Motion Carried. 4 -0. Discuss and possibly take action on having the Paris EDC website revised /updated. Rebecca Clifford recommended to table this item and include it at the next meeting with the Plan of Work discussion. Discuss and possibly take action on participating in the Texas Workforce Commission High Demand Job Training Program through Workforce Solutions of Northeast Texas PEDC Board Meeting Minutes November 11, 2014 Page 8 of 10 Shannon Barrentine asked Dr. Pam Anglin if John Spradling had updated her on the Texas Workforce Commission High Demand Job Training Program Grant? Dr. Pam Anglin stated she hasn't heard from John Spradling. Shannon Barrentine stated a meeting was held on October 17, 2014 in Mount Pleasant to meet with the Regional EDC (Paris, Mount Pleasant and Sulphur Springs) to talk to the Executive Director of Workforce Solutions Northeast Texas about the grant application. In your packet was a press release on the Texas Workforce Commission High Demand Job Training Program Grant information. Shannon Barrentine asked the Board if they wanted to apply it's a matching fund grant. Just because you apply doesn't mean you get it. PEDC would have to be committed to pay our portion of $75,000 matching funds for a potential of $150,000; each of the EDC's would commit to pay $25,000. Dr. Pam Anglin stated that a Computer Numeric Control (CNC) training mobile lab is in huge demand. Shannon Barrentine stated the things equipment they are pursing Paris Junior College (PJC) already has, so it wouldn't be beneficial to participate. No action was taken on this item. Discuss and possibly take action on accessing the Sites on Texas information by contract through Ark -Tex Council of Governments Shannon Barrentine stated the PEDC was paying $2,999 per year for access to the Sites on Texas database. The Ark -Tex Council of Government (COG) is willing to buy the license and offer access to any EDC that wants to participate and split the annual fee. This would allow the EDC to call and get the information via the COG which is kept completely confidential; they wouldn't share that information with the other communities. So essentially ,PEDC would get the same accessibility for $1,000(a third of the cost) and possibly less if more in the 9 county region participates. Don Wilson asked if it's in PEDC's budget. Shannon Barrentine stated yes it is. Don Wilson made a motion to allow the PEDC to participate in Sites on Texas license fee through the Ark -Tex COG; seconded by John Brockman. Motion Carried 4 -0. Discuss and possibly take action regarding Defenbaugh & Associates' response documents received from Jeff Moore, attorney, on October 31, 2014 Stephen Grubbs told those present that Jeff Moore, PEDC's attorney, wrote a letter to Mr. Defenbaugh referring what the contract states and here is what the PEDC would like you to do to honor the terms of the contract. Stephen Grubbs stated that Mr. Defenbaugh has been paid in full by the PEDC. Stephen Grubbs asked the Board if they wanted the letter sent to Mr. Defenbaugh? Don Wilson stated PEDC honored our part of the contract. Now, we are looking for Mr. Defenbaugh to honor his part. By sending Mr. Defenbaugh a demand letter to produce the reports; the PEDC never received that were itemized in his invoices and PEDC paid for. Stephen Grubbs stated that was correct. Jeff Moore reviewed the contract and stated that the reports requested are PEDC's documents. Don Wilson stated Mr. Defenbaugh has refused to come to joint meetings, Mr. Defenbaugh has refused to answer questions that the contract stated that he would and Mr. Defenbaugh has refused to turn over the PEDC's reports. PEDC received PEDC Board Meeting Minutes November 11, 2014 Page 9 of 10 notes that weren't complete, and reports Mr. Defenbaugh turned over had partial information. Again, Don Wilson stated he didn't understand why Mr. Defenbaugh wouldn't give the reports the PEDC has paid for, what he is hiding? Don Wilson made a motion to send Jeff Moore's demand letter to Mr. Defenbaugh, to turn over all the reports that he started out with, all that he billed the PEDC for, including the reports that were sent to the FBI and that Stephen Grubbs has asked for several times. If not, the PEDC wants our money back; seconded by John Brockman. Motion Carried 4 -0. Discuss and possibly take action regarding the review, approval and execution of any contracts and agreements entered into on behalf of the PEDC Rebecca Clifford stated she was recusing herself from the discussion of this item due to not enough detail was provided to satisfy the requirements of the Open Meetings Act. Rebecca Clifford stated that it's not detailed enough when you discuss personnel, you would say who it is when asking for discussion. John Godwin stated if you are talking generalities that's fine, but if you are talking about something or someone specific, this item is too general. Shannon Barrentine stated the item should be tabled for rewording and brought back to the next meeting. No action was taken on this item. Discuss and possibly take action on addition to the PEDC policy manual of non - solicitation clause for PEDC personnel — Rebecca Clifford Rebecca Clifford stated that John Godwin sent her one, for review, but since we are pressed for time, let's table it. Shannon Barrentine stated PEDC can have it for review in the next meeting packet. No action was taken on this item. Discuss and possibly take action on invoice(s) for legal services Don Wilson asked the status of the most recent Public Information Requests by Bill Strathern and Keith Flowers. Shannon Barrentine stated Bill Strathem's request went to the Attorney General's office and she wasn't sure if Keith Flowers had picked up and paid for his request yet. John Brockman made a motion to pay Jeff Moore's invoice in the amount of $4,517.61; seconded by Don Wilson. Motion Carried 4 -0. Discuss and possibly take action on requesting bids for mowing and shredding of the Northwest Industrial Park for a 3 year period. Shannon Barrentine stated last year the shredding was partially done, Daughtrey Lawn Service was awarded the bid and they never finished the shredding. Don Wilson asked if PEDC paid Daughtery? Shannon Barrentine stated yes, just for what they had done. Shannon Barrentine stated that she would like to go out for bids to mow the6 acres, around the pond, and the median sign at the industrial park for a 3 year period for shredding and mowing. Shannon Barrentine stated the two were separate because it takes different equipment. Shannon Barrentine stated the PEDC Board Meeting Minutes November 11, 2014 Page 10 of 10 cost for 45 acres shredded twice a year on 19''NW was $2,200. Shannon Barrentine stated herbicide can be sprayed on the area for shredding to improve grass quality and then be bailed. Edwin Pickle stated that PEDC should ask Gene Anderson for cutting and bailing information. No action was taken on this item. Discuss and possibly take action on continuing the PEDC Web Page on the Trade & Industry Development website. Don Wilson stated that he didn't think it was worth the money. Don Wilson made a motion to decline advertising on the Trade and Industry Development website; seconded by Rebecca Clifford. Motion Carried 4 -0. The Board convened into Executive Session at 6:03 p.m. Pursuant to Section 551.072 and Section 551.087 of the Texas Government Code to discuss and deliberate on the following: 1. Pursuant to Section 551.072 — Real Property 2. Pursuant to Section 551.087 —Economic Development Negotiations Executive Session ended at 6:33p.m. The Board reconvened into open session. As a result of executive session discussion the Board took the following action: John Brockman made a motion to reimburse BodyGuard Truck Accessories for training as part of their incentive agreement; seconded by Rebecca Clifford. Motion Carried 4 -0. Stephen Grubbs stated that Zulu Internet was going to purchase land from PEDC and had paid $500.00 earnest money that was in escrow. Zulu Internet was requesting their money be reimbursed. Don Wilson made a motion to release the escrow of $500.00 to Zulu Internet; seconded by Rebecca Clifford. Motion Carried 4 -0. Rebecca Clifford made a motion to adjourn 6:34p.m.; seconded by John Brockman. Motion Carried 4 -0. Respectfully submitted, Chassidi Taylor Administrative Assistant Paris EDC