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08/25/2015 MINUTESPARIS ECONOMIC DEVELOPMENT CORPORATION SPECIAL CALLED MEETING Tuesday, August 25, 2015 MINUTES Board Members Present: Richard Manning, Chair John Brockman, Vice -Chair Don Wilson, Secretary- Treasurer David Turner Ray Banks Ex- Officio Members Present: Dr. Pam Anglin PJC Legal Counsel: Kent McIlyar City Council Liaison: Sue Lancaster Call to Order: Staff Present: Angie Corbell Office Manager Paula Brownfield Admin. Assistant Guest(s) Present: Randy Reed TWS Bart Spivey TWC Daniel Kloap, the Paris News Bob Hundley Paris P. D. Richard Manning, Chairman called the meeting to order at 4:00 p.m. and welcomed those present. Confirmed a quorum was present. Citizens Input• There was no citizen input. Approval of Minutes from the Aug 11, 2015 regular meeting Ray Banks made a motion to accept the Minutes, with corrections. The motion was seconded by Dave Turner. Motion Carried 5 -0. Approval of July 2015 fmancials Mr. Wilson detailed items and issues with the current monthly budget spreadsheet that is regularly presented at each Board Meeting. Mr. Wilson then proposed a new layout with consolidated budget items. Mr. Wilson detailed the Spreadsheet and explained the makeup of the totals listed. Mr. Wilson explained he has added in the Cash Flow to the budget spreadsheet. Mr. Wilson explained the transfers from the I & S account. Mr. Wilson stated he has gone back to the beginning of the year to show the Cash Balance and to give a more accurate accounting on Cash Balances, not just total expenses. Mr. Wilson explained this will show a better picture of the budget at the end of the year. Mr. Wilson stated he had collaborated with Gene Anderson and Mr. Anderson had added a tracking of a transfer previous in the year that had not been entered before this meeting. Mr. Banks asked about projected figures of obligations. Mr. Wilson stated that was still to be determined. Mr. Wilson stated some of the obligations have been delayed and or are in process therefore the obligation items are still to be determined. Mr. Wilson stated when the upcoming bond payment is due the funds are already set aside, and will not come out of Cash. When the check is written it should only affect the total on the bond sinking fund. Mr. Brockman made a motion to accept the July Financials. The motion was seconded by Ray Banks. Motion carried 5 -0. Discuss and possibly take action on 2015 -2016 Budget. Mr. Wilson presented the 2015 -16 projected budget. Mr. Wilson stated all items listed had been discussed previously on page one. Mr. Wilson pointed out the amount in Marketing and Promotion Airport fund of $10,000 and Retention for $15,000 was included in Marketing and Promotion in general for $50,000.00 totals for $75,000. Mr. Wilson stated the totals were $376,900.00 Mr. Wilson went on to say the breakdowns yet to be approved were Jobs Training amounts Work Keys was $35,000. Jay Skinner training was yet to be determined and incentives were separated at $25,000 and he had no idea if Skinner would meet the compliance of required employees. Mr. Wilson stated T & K had an original amount of $11,000 and has yet to be signed. Bodyguard incentive trainings were $13,371.00. Mr. Wilson stated Bodyguard would use some this year. Paris Lakes was $250,000. Rogers Wade is $0. J. Skinner was moved from this year to next year due to being a potential liability. Potter Industries could be $16,000 this year plus training and has not been paid. Mr. Wilson stated $8000.00 will be all that's left next year for Potters. Mr. Wilson stated the totals of $429,000.00 then there is $325, 135.00 for debt service. Also, debt service shows $25,885.00 should have been $25,135.00. The total 25,885.50 on Fiscal Year to Date a correction is calculated for this year. Capital expenses for 2015 -16 are a total $838,506.50. To add to the Operating Expenses making the total budget two million four hundred six dollars and fifty cents. Also, Mr. Wilson stated $100,000 dollars would need to be added due to an upcoming incentive agreement with Turner, making the total one million three hundred fifteen four o six. Mr. Wilson stated the budget needed a vote. Mr. Brockman asked for the total amount to be clarified. Mr. Wilson stated it is $1,315,406.50. Mr. Manning recommended discussing the Cash Flow projection before budget approval. Mr. Wilson presented a spreadsheet with projections to year 2022. Mr. Wilson stated to look at the presented budget for last year showed the beginning of the year PEDC had $408,000.00 and he had pointed out last time this figure represented cash. Mr. Wilson went on to say that it should have been $1,039,979.09. Mr. Wilson stated the spending for the year totaled $195,281.00, leaving ending cash of $2,030,321.00, as of the end of July. Mr. Wilson stated he had taken the cash figure and placed it into the 2015 -16 budget reasoning the assumption of the next two months income and payouts and bond payment of about $20,000.00, and Potters' payment will wash between now and the end of September, but that was the figure he came up with of $2,030,321.00, then tax revenue was running 116 to $110,000.00 per month he stated he had put that in as tax revenue of one million three. Mr. Wilson stated he then took $76,900.00 of the budget that had just been reviewed and stated that was the estimated expenditures and the 838 was under there and had changed to 938 making the total budget $1,315,470.00. Mr. Wilson stated he had it highlighted as $1,215,407.00. So, the $100,000.00 that goes to Turner bringing the total up to $1,315,000.00 leaving the years' ending cash total of $2,114,915.00. Ray Banks asked to enter the payout making it actually $2,014,915.00 dollars. Mr. Turner stated PEDC expenditures totaled about the same as the income, and that PEDC was not making any major expenditure. Mr. Wilson and Mr. Turner agreed there would be two more years of bond payments. Mr. Wilson stated the reserves would still be available if the total projected was spent. Mr. Wilson stated if the PEDC were to "break even" this year on expenditures there would still be two million in reserve for future industry incentives or purchases. Mr. Wilson stated the last payment may have already been paid on the bond payment. Mr. Turner made a motion to approve the 2015 -16 Budget with the corrections mentioned. The motion was seconded by Ray Banks. The Motion carried with none opposed. Discuss and possibly take action on Northeast Texas Work Force Development Grant Funding Mr. Banks asked if the funds would go to pay an instructor from Mt. Pleasant. Dr. Anglin responded no. Mr. Manning turned the floor to Randy Reed the Executive Director Workforce Solutions of Northeast Texas. Mr. Reed stated he operates under a contract from Texas Workforce Commission. Mr. Reed went on to say about nine months ago TWC had applied for a matching funds grant for projects for high demand job training. Mr. Reed stated the original amount was $75,000.00, but with participation of Mt. Pleasant, and Sulphur Springs EDCs, the total matching fund request for Paris Economic Development Corporation would be $25,000.00. Mr. Reed stated the contract required a Memorandum of Understanding for CNC training. The equipment would be purchased through PJC and would become part of the curriculum the same as with NTCC in Mt. Pleasant and PJC in Sulphur Springs. Mr. Manning asked if the training would take place at PJC. Dr. Anglin pointed out an error in the MOU which stated that NTCC would provide the instructor, but it should state PJC would provide the instructor. Mr. Banks thanked Dr. Anglin for her input. Dr. Anglin went on to say PJC has ordered the required equipment for training the week before and when received it will be placed in the Workforce Training Center and through the grant PJC has agreed to train a certain number of machinists to work in this area. Dr. Anglin further stated she has spoken with Corey Campbell with Aequs. Dr. Anglin explained the equipment purchases would be for campuses in Paris, Mt. Pleasant, and Sulphur Springs. Dr. Anglin clarified there would be three sets of trainees, and there would be a different type of equipment in Mt. Pleasant, but PJC would complete the CNC training. Ray Banks stated his concern the students may have to travel. Dr. Anglin stated that no they would not because PJC has a mill here and intends to purchase a lathe, and copy the arrangement in Sulphur Springs. Mr. Manning and Mr. Reed discussed the delay in executing the contract. Mr. Turner clarified Mr. Reed was requesting an amount of $25000.00 to train 15 to 20 people to use the equipment purchased. Dr. Anglin clarified this was the second grant request for $25,000.00 for training. Mr. Reed stated he is in the process of requesting the funds from the other EDCs. Dr. Anglin stated she will use the funds for the purchase of the lathe. Mr. Turner asked the life expectancy of the equipment. Mr. Wilson stated the programming would need to be changed, therefore, the upgrade would be minimal, so the equipment would last approximately 25 years. Dr. Anglin stated Industry sometimes bequeaths machinery for training. Mr. Manning asked how the trainees would be trained. Dr. Anglin stated the training would coincide with local industry requirements. Mr. Brockman asked if any other EDCs had committed to the second round of the grant. Mr. Reed advised affirmative. Mr. Manning stated it would pay for itself in the future. Mr. Turner made a motion to fund the grant for $25,000.00. The motion was seconded by John Brockman. The motion carried unanimously. Mr. Wilson asked if the Board wanted to change the budget adding the $25,000.00, making the budget one million three hundred forty thousand four o six fifty. Motion was made by Mr. Wilson to amend the budget to pay the High Job Demand Training grant and seconded by Ray Banks. The motion carried unanimously. Convene into Executive Session: The Board convened into Executive Session at 4:54 pm. Reconvene into Open Session: The Board Re Convened at 6:OOpm. Mr. Turner made a motion for the Board to make an offer on Project Spec. The motion was seconded by Mr. Turner. The motion passed unanimously. Mr. Turner amended his motion to state the Board makes an offer on Real Estate. Mr. Banks seconded the motion. The motion passed unanimously. Mr. Turner made a motion to adjourn. The motion was seconded by Mr. Banks. Meeting adjourned at 6:05 p.m. Respectfully submitted, Angie Corbell Office Manager Paris EDC