4A Wichita Falls Economic Development Minutes - 01/17/2019MINUTES OF THE
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
January 17, 2019
PRESENT:
1,eo Lane, President § WFEDC Members
David Toogood, Vice -President §
Reno Gustafson, Secretary -Treasurer §
Darron Leiker §
Stephen Santellana, Mayor § Mayor & Council
Bobby Whiteley, Councilor at Large §
Jeff Browning, Councilor District 3 §
R. Kinley Hegglund, Jr., City Attorney § Administration
Jim Dockery, Deputy City Manager §
Paul Menzies, Assistant City Manager §
Linda Merrill, Recording Secretary §
Henry I'lorsheim, CEO § Ccl
Kevin Pearson, V.P., Economic Development §
Scott Poenitzsch, Chairman §
Ripley'Fate, outgoing Chairman §
Travis I -laggard, V.P., Business Retention & Expansion §
Katie Britt, Marketing Director §
Adrine Wike, Director of Research §
Sarah flarpole, Administrative Assistant §
Bradley S. Gray, Intern §
Karen Troup, HR Manager § Sharp Iron
Michael Stanford, President §
ABSENT:
Dave Lilley § WFE,DC member
1. Call to Order
Leo Lane called the meeting to order at 3:30 p.m.
2. Financial Report
Jim Dockery said the December sales tax receipts increased 13.7% over the same time the
prior year, while January 2019 receipts increased 4,18% over January 2018. The cumulative
increase is 8.78%.
'I"be City contracts with a database firm that analyzes the sales tax numbers received from
the state comptroller. The latest numbers from the comptroller have yet to arrive, but he does have
information that shows the cause of the January -November increase compared to the prior year.
The 70/�o year -over -year increase principally occurred in three categories: (I ) utilities trade (energy
providers, refuse collection, gas); (2) wholesale trade ('supply houses or distribution centers); and
(3) retail trade. Although these are the primary drivers of the increase, each of the seven categories
showed an increase. Mr, Lane asked why the utilities trade increased. Mr. Dockery said it would
be due to prices and consumption. Mr. Leiker said when the comptroller report is provided, it will
include specific business names.
3. Approval of Minutes (12/20/18)
Darron Leiker moved for approval. Seconded by Reno Gustafson, the motion carried 4-0.
4. Discussion and possible amendment to employee recruitment incentive agreement
with Sharp Iron
Travis Haggard reminded the Board of last year's incentive program with Sharp Iron for
the recruitment of welders. The incentive was a $3,000 payment to each welder so long as he/she
was brought from outside Wichita County, established residency for at least six months within the
county, and remained employed by Sharp Iron for a minimum Of Six months. Partnering with Sharp
Iron, they looked to the Tulsa Welding School, which graduates 200-300 welders every five weeks.
The program has been a success. Sharp Iron's employment has grown from 85 to 112 in this past
year. The agreement expired January 1, 2019. He invited Michael Stanford and Karen Stroup of
Sharp Iron to today's meeting to discuss the effectiveness of the program.
Mr. Stanford thanked the 4A Board for this very successful incentive program. They are
here today to request an extension. Their business has experienced a 35% total headcount growth
and a 75% top -line sales increase. Three welders ultimately participated in the incentive program,
so they still have five slots left under the agreement. They hope to hire 8-10 welders within the
coming year.
5. Discussion and possible action on hiring of consultant to facilitate Organizational
Assessment
Mr. Lane referred to the proposal before the Board from Opportunity Strategies, LLC. This
process started in the latter part of 2018. Carlton Schwab, of the Texas Economic Development
Council, gave him a list of five consultants, Mr. Lane requested proposals from three of them,
telling them he was wanting an assessment of best practices and was particularly interested in peer
information. Opportunity Strategies seemed to have the most experience related to Texas, Georgia
and Louisiana. In addition, it was very competitive in its pricing.
Henry Florsheim said he and his staff are excited about the process, in order to (1) be
measured against peers and learn new tools to do things better and (2) learn where Wichita Falls
is doing things really well.
6. Executive Session
Mr. Lane adjourned the meeting into executive session at 3:48 p.m. pursuant to Texas
Government Code §§551.072 and 551 .087. He announced the meeting back into regular session
at 4:28 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.
7. Motions
Item 4. Amendment to employee recruitment incentive agreement with Sharp Iron
Mr. Gustafson moved to extend the aareenient with Sharp Iron under the same terms and
conditions, with said agreement to expire January 1, 2021. Seconded by David Too good the
motion carried 4-0.
Item 5. Hiring of consultant to facilitate Organizational Assessment
Mr, Leiker moved to expend up to $20,000 to hire Opportunity Strategies, LLC, for the
organizational assessment/strategic planning report. Seconded by Mr. 'foogood, the motion carried
4-0.
8. Adjourn
The meetina, adjourned at 4:30 p.m.
Leo Lane, President