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4A Wichita Falls Economic Development Minutes - 02/06/2018MINUTES OF THE WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION February 6, 2018 PRESENT: Dick Bundy, President § WFEDC Members Reno Gustafson, Vice President/Secretary-Treasurer § Leo Lane § Darron Leiker § David Toogood § Stephen Santellana, Mayor Jim Dockery, Deputy City Manager/CFO R. Kinley Hegglund, Jr., City Attorney Karen Montgomery -Gagne, Planning Administrator Linda Merrill, Recording Secretary Henry Florsheim, CEO Kevin Pearson, V.P., Economic Development Travis Haggard, V.P., BR&E Adrene Wike, Research Associate Brian Havins, Marketing Sarah Harpole, Administrative Assistant Kathy Jordan, Deputy Commander, Mission Support Group Keith Maxwell, Resident Engineer Roderick Edwards, 82d Contracting Squadron Timothy Fast, Comptroller Richard Pfeffer, FMA-AF Budget Christian Erneston, 1 Lt. Jackie Jastrzeloski, Sheppard Public Affairs John Ingle, Sheppard Public Affairs M. Brent Boydston, Sheppard AFB JAG Mark Mc Burnett, Base Civil Engineer 1. Call to Order Dick Bundy called the meeting to order at 3:35 p.m. 2. Approval of Minutes (1/18/18) Mayor and Council City Staff § CCI § USAF DoD Reno Gustafson moved for approval of the minutes. Seconded by Leo Lane, the motion carried 4-0. (Mr. Leiker was not present when the vote was taken.) 3. Discussion and possible amendment of Sheppard AFB main gate project agreement Lt. Col. Kathy Jordan said the Sheppard AFB main gate project is divided into two projects. The federal government, city and state have rules and limitations on the distribution of funds, and they do not have a solution. She knows of two options: (1) a gift of money to the Air Force (a lengthy process), or (2) the city can hire a contractor to execute the Defense Economic Adjustment Assistance Grant (DEAAG)/4A monies. Mr. Lane asked why this project is different. Mr. Dockery said the last project was a City project on City -owned land. This project is on base. DEAAG funding is administered on a reimbursement basis. Funding from the 4A Board is typically provided on a reimbursement basis, but that will not work with this project. The military needs all of the funds in their system, or the City will become the administrator of the $3 million companion project (DEAAG/4A grants) and the Air Force's $2.7 million project. Mr. Bundy said the 4A Board has a commitment now of $1.5 million, and the question before the Board is whether to loan or gift another $1.5 million to the project and be reimbursed by DEAAG. Mr. Hegglund said the City would submit paperwork to the state on a quarterly basis, showing the amount of the project completed, and request reimbursement. It would take 12-18 months to receive total reimbursement for the additional $1.5 million. Karen Montgomery-Gagnd said the City would not be reimbursed until the December 2018 quarter, with the last reimbursement made by July 2019. Mr. Bundy asked when the money would have to be committed. Ms. Gagnd said the City would be solely responsible for all grant obligations, and the funds have to be spent by August 31, 2019. Mr. Bundy asked what happens if the funds do not get spent. Ms. Gagnd said there are potential scenarios; any remaining funds may not get reimbursed; the City might be fined; or may have to pay the state back for grant funds already reimbursed. Mr. Hegglund asked Mark Mc Burnett if it would be satisfactory if the 4A gave Sheppard $3 million, and obtained reimbursement of $1.5 million through DEAAG funds. Mr. Mc Burnett said the Corps of Engineers would need the $3 million appropriated to them before they could start the project. They have federally appropriated $2.7 million to address anti -terrorism force protection issues, so the City would not be responsible for oversight of the entire $5.7 million project, but only for the $3 million portion. Mr. Hegglund said DEAAG grant application is a $5.7 million project. The City is responsible for the entire project according to the Governor's office. Ms. Gagne said SAFB cannot relinquish oversight of the $2.7 million portion of the project, and cannot mix those funds with the DEAAG/4A funds. It is her understanding that these projects must be separate/companion projects, not one effort. Mr. Bundy asked if the money could be provided as an interest -free loan. Lt. Col. Jordan said they cannot accept a loan. It can be a gift, or a contract with the Corps. Mr. Leiker said the WFEDC is tying up $1.5 million for a year and a half. Mr. Dockery said this has to be worked out administratively, as no one wants to oversee a $3 million contract on base property. Lt. Col. Jordan said that although the Air Force would not own the contract, they could oversee the day-to-day completion of the project. Mr. Mc Burnett said the $2.7 million project can be awarded to the Corps, and the other project can go to the Corps' contractor. They can be accomplished simultaneously, but legally, they stand alone. Mr. Dockery said DEAAG requires quarterly documents in order to draw down funds to reimburse 4A for its $1.5 million. Mr. Hegglund asked if the 4A Board is willing to act as a general contractor or to hire one. Mr. Bundy said he did not think so. Mr. Hegglund said the other option is to front the money and hope there would be enough time to finish. Ms. Gagnd said they would not utilize DEAAG money until the fall of 2018. Lt. Col. Jordan said they cannot even start on the design until they have all the money. Mr. Dockery said there is a risk in not timely completing the project. Engineer Keith Maxwell said the Corps' construction oversight, Title II Services, will be on site for the federal project. Mr. Hegglund asked if they would check both projects, and Mr. Maxwell replied, conceivably. Mr. Hegglund asked what is encompassed in the City's portion of the project. Mr. Mc Burnett said they are non -security issues, including storm water infrastructure, fencing, additional lighting, and mounding/landscaping areas. 4. Executive Session Mr. Bundy adjourned the meeting into executive session at 4:07 p.m. pursuant to Texas Government Code §551.087. He announced the meeting back into regular session at 5:42 p.m. The subjects posted in the Notice of Meeting were deliberated, and no votes or further action was taken on these items in executive session. 5. Motions Nexstar Mr. Leiker moved to approve an incentive agreement of up to $7 000 per job for 25 jobs based upon retention of those jobs for at least six months. Seconded by Mr. Bundy, the motion failed 3-2. Mr. Lane moved to offer Nexstar an incentive agreement of up to $4,000 per job for 25 welding positions so long as these positions are filled in 2018 based upon job retention of at least six months; further, he moved to offer an additional $3,000 per job for those employees brought in from outside Wichita County, who establish residency in Wichita County, and remain employed by Nexstar for at least six months. SAFB Main Gate Project Mr. Leiker moved to appropriate an additional $1.5 million for the SAFB Main Gate Project with the understanding that the WFEDC would keep the reimbursement from the State DEAAG Grant and enter into ppropriate legal and contractual agreements with all necessary agencies Seconded by Mr. Gustafson the motion carried 4-1, with Mr. Toogood in opposition. Amfuel Mr. Lane moved to accept the offer from Amfuel of $90 000 for the purchase of the autoclave Seconded by Mr. Leiker, the motion carried 4-0, with Mr. Gustafson abstaining from Voting. 6. Adjourn Mr. Leiker moved to adjourn the meeting. The meeting adjourned at 5:46 p.m. V Di k Bundy, resident