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11.20.2013 PEDC MinutesProsper ECONOMIC DEVELOPMENT CORPORATION DRAFT MINUTES Meeting of the Prosper Economic Development Corporation 170 N. Preston Rd., Suite 50 Prosper, Texas 75078 Wednesday, November 20, 2013 - 6:00 p.m. Call to Order and Announce a Quorum is Present Board President Jim Wicker called the meeting to order at 6:00 p.m. Board members present were Mayor Ray Smith, David Bristol, Gary Jackson and Roger Thedford. Board members Reno Jones and Jordan Simms were absent. PEDC Executive Director Robert Winningham, PEDC Economic Development Specialist Garrett Weaver and PEDC Economic Development Assistant Sam Blatt were also present. Guests included Town Finance Director Kent Austin and Deputy Mayor Pro-Tem Kenneth Dugger. 1. Comments from Citizens (The EDC may receive input from citizens only on topics that are not listed on the meeting agenda) There were no comments from citizens. 2. Approval of Minutes from the Regular Meeting on October 23, 2013 Roger Thedford moved to approve the October 2013 Regular Meeting Minutes. The motion was seconded by Gary Jackson and was unanimously passed. 3. Approval of the PEDC Financial Reports for October 2013 and Take Any Additional Action Necessary Town Finance Director Kent Austin presented the October 2013 Financial Report to the Board. Austin noted an overcharge for a Texas Municipal League (TML) Worker's Compensation insurance payment. Austin added that this was an error and has been corrected. The correction is shown on the Balance Sheet under "Due from General Fund" and credited in the amount of $4,464.52, Austin said. He further indicated that the correct amount of $509.63 was entered and charged appropriately. David Bristol questioned where the $154,233.65 amount for "Sales Tax — Receivable" on the Balance Sheet was derived when Sales Tax collected for October is shown equaling $80,942. Austin explained that the Sales Tax -- Receivable figure comes from a two month accrual. He further explained that a two month accrual is used because sales tax receipts come as a result of sales activity from two months prior and that recording of the accrual is in compliance with the modified accrual basis of accounting, which is standard practice for government accounting. Gary Jackson commented that the Balance Sheet was an improvement from the previous version. Jackson questioned if there were any liabilities outstanding. Austin responded that it is an on -going process to determine outstanding liabilities outside of the ones already accounted for. Robert Winningham added that Garrett Weaver is currently creating one page abstracts for all of the PEDC's agreements. Winningham noted that he made adjustments to the "SUTA Expense", "Life Insurance/AD&D", "Liability (TML) Workers' Comp" and "TLM Prop. & Liab. Insurance" budget line items to cover for miscalculated cost projections. Winningham added that money was moved accordingly from other budget line items to cover those costs and that a budget amendment for additional funds was not required. Winningham explained that a request for payment of $55,000 was submitted by the Town Engineering Department to the PEDC earlier in the month to partially pay for drainage construction to satisfy a joint agreement between the Town, PEDC and the developer. Winningham noted that the Town was supposed to transfer payment for this project from PEDC funds in May but recently learned that the money never was transferred in FY 2013. Winningham added that this expense could be paid by either a budget amendment or through existing funds in Project Incentives line item in the FY2014 Budget. David Bristol proposed that the PEDC pay the expense from the Project Incentives line item in the FY2014 Budget to which the Board agreed. Gary Jackson moved to approve the October 2013 Financial Reports. The motion was seconded by David Bristol and was unanimously passed. PEDC Minutes —page 2 November 20, 2013 4. Report of the PEDC Board Finance Subcommittee and Any Action on Recommendations from the Subcommittee Gary Jackson gave an overview of the November 11, 2013 meeting of the Finance Subcommittee and shared details on matters discussed at the meeting. Robert Winningham distributed a Cash Flow Sheet and presented it as an option to track incentive payments moving forward. He added that contingent incentives would be shown at the bottom of the sheet, as discussed at the November 11 Finance Subcommittee meeting. Jim Wicker suggested that the sheet should be outlined quarterly instead of yearly and that the sheet should also show future years instead of just the current year. David Bristol agreed and said that this will help better organize the PEDC's timely commitments and that future commitments, if not tracked, could ultimately catch the PEDC by surprise.. Wicker noted that Winningham has regularly scheduled meetings with Town Finance Director Kent Austin to ensure that the Financial Reports are accurate. Kenneth Dugger suggested adding a running total of incentives given to a project so that the Board will know exactly how much financial assistance as been provided to date. David Bristol moved to accept the report that was presented by the Finance Subcommittee. The motion was seconded by Gary Jackson and was unanimously passed. 5. Convene into Closed Executive Session: Pursuant to Texas Government Code, Section 551.087; Deliberation of Economic Development Negotiations: To Deliberate Commercial and Financial Information and Economic Incentives for the following: Board President Jim Wicker called the meeting into executive session at 6:37 p.m. • Retail Update • Prosper Business Park Update • RFP Updates: Project Red VP / Project Bengal -Tiger / Project Five Star / Project Moto Roller Board President Jim Wicker reconvened the meeting into regular session at 7:52 p.m. 6. Take Any Action Necessary as a Result of Executive Session No action was taken at this time. 7. Discuss and Possibly Take Action on Won and Lost Projects Robert Winningham presented the first draft of the Won and Lost Project list. Jim Wicker explained that the list is a tool to determine why the PEDC won or lost a given project and how the PEDC can make improvements moving forward. Wicker added that the list will be distributed at each Board meeting and will remain on the agenda. No action was taken on this agenda item. 8. Town of Prosper Report Mayor Ray Smith gave an update on various projects and issues for the Town of Prosper. 9. Executive Director's Report: Administrative and Marketing Activities of the PEDC and Upcoming Events PEDC Executive Director Robert Winningham presented updates on projects on which the PEDC staff is working. 10. Consider and Take Action on 2014 Strategic Plan Jim Wicker presented the revised 2014 Strategic Plan. Ray Smith questioned if the Strategic Plan should be used as a I specific measurement tool. Wicker responded that it could perhaps be used in that manner in the future. David Bristol k asked Robert Winningham if the goals presented were achievable. Winningham responded affirmatively and said that he felt comfortable that the goals could be accomplished. Roger Thedford asked if there were any quantitative measures set for the goals presented. Winningham responded that it would be difficult to set such measures but the goals could PEDC Minutes —page 3 November 20, 2013 probably be quantified in some form. He added that it was imperative that business parks and office parks be developed in the near future so that there is office and industrial space to locate the new jobs created. Wicker believed that the goals would be challenging and that they could be judged by results. He also added that there are many different factors that go into development that are out of the PEDC's control. Overall, Wicker felt that the Strategic Plan provided a good general focus; however, it may be difficult to attach quantifiable benchmarks to the list of goals. Wicker concluded by asking if the goals presented are achievable even if they might be considered somewhat of a stretch. Winningham responded that he prefers to set high expectations and that yes, goals are achievable. Roger Thedford moved to approve the 2014 Strategic Plan. The motion was seconded by Gary Jackson and was unanimously passed. 11. Determine PEDC Board Meeting Date for December, 2013 After deliberation, it was determined and agreed upon that the date for the next PEDC Board Meeting would be December 18, 2013. 12. Convene into Closed Executive Session: Pursuant to Texas Government Code, Section 551.074; Deliberation of Personnel Matters related to the following: Board President Jim Wicker called the meeting into executive session at 8:47 p.m. • Revisions to Employment Contract with PEDC Executive Director Board President Jim Wicker reconvened the meeting into regular session at 9:10 p.m. 13. Take Any Action Necessary as a Result of Executive Session - David Bristol moved to amend the Employment Contract with the Executive Director to include a `pay -for - performance' clause that will allow the Board to compensate the Executive Director additional pay in the amount of up to 10-percent of his annual salary after the Board's Annual Performance Review of the Executive Director at the end of FY2014. 14. Adjourn The PEDC Board meeting adjourned at 9:12 p.m. with a motion from Ray Smith and seconded by David Bristol. The motion was unanimously passed. !2-�s-�cot3 Date