Loading...
4A Wichita Falls Economic Development Minutes - 11/02/2007MINUTES OF THE WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION NOVEMBER 2, 2007 PRESENT: Gary Shores, Chairman § Bo Stahler, Vice Chairman § Dave Lilley § Members Gary McLendon § Matt Benoit, Assistant City Manager § Linda Merrill, Recording Secretary § City Staff Tim Chase, President § Kevin Pearson, VP, Economic Dev. § Warren Ayres, Board of Directors § BCI Kay Yeager, Board of Directors § Darrell Coleman, Board of Directors § Leo Lane, Board of Directors § ABSENT: Dick Bundy § Member I. CALL TO ORDER The meeting was called to order at 4:00 p.m. Chairman Gary Shores, in an effort to accommodate Warren Ayres' schedule, made Item IV the first point of discussion. The Board then followed the remaining schedule in consecutive order as posted. II. APPROVAL OF MINUTES — SEPTEMBER 20, 2007 Gary McLendon noted his name is misspelled. Bo Stahler moved, seconded by Mr. McLendon, that the minutes be approved as corrected. The motion carried. III. ELECTION OF OFFICERS Mr. Benoit explained that the Corporation's Bylaws call for a President and Secretary/Treasurer. Beyond those two positions, the Board can appoint other positions if desired. The Board's most recent Secretary/Treasurer was Jim Berzina. Chairman Shores noted that, pursuant to election, the Board currently has a Chairman and a Vice - Chairman. The Vice - Chairman is authorized to act in place of the Chairman. Mr. Benoit stated that the Board could continue with a Vice Chairman position, and amend the Bylaws to give that position authority to act in the absence of WFEDC — Minutes of November 2, 2007 2 the Chairman. He questioned whether the Board wished to continue this position, or confer those powers onto the Secretary/Treasurer. Mr. Stahler had signed documents in the past in Mr. Shores' absence, and expressed concern that he had done so under a position that was not lawfully created under the Bylaws. Mr. Benoit noted that the signing of minutes would not be of concern, but signing Memorandums of Understanding might be problematic. Mr. Stahler felt it was best to include in the Bylaws the position to which he had erroneously been elected. Dave Lilley suggested that Mr. Stahler's position be that of Secretary/Treasurer, and the Bylaws be amended to allow that position to act in the absence of the Chairman. Mr. Stahler again expressed concern that he had signed documents under the authority of a position that did not exist. Mr. Lilley observed that it would be problematic to correct such actions retroactively. He then moved that Mr. Stahler's position be that of Secretary/Treasurer/Vice Chairman. Chairman Shores seconded the motion, which unanimously carried. Mr. Stahler nominated Gary Shores as Chairman. Mr. Lilley seconded the motion. The Board unanimously approved the motion. Mr. Benoit noted that the Bylaws will be amended to reflect the positions of Chairman, Vice Chairman, and Secretary/Treasurer, to make those positions consistent with those under which Messrs. Shores and Stahler have been signing documents. The Bylaws will also reflect that the Vice Chairman has the authority to act in the place and stead of the Chairman in his absence. IV. CONSIDER AMENDMENTS TO THE 2007 -2008 BUDGET FOR REGIONAL MARKETING AND WORKFORCE DEVELOPMENT Regional Marketing Task Force Mr. Ayres stated the Regional Marketing Task Force is requesting the 4A Board to provide 63% of its $171,000 budget for 2007 -08 (or $107,730). Wichita County, Burkburnett, and Iowa Park will fund the balance of the budget. The Task Force's detailed objectives are as follows: 1. Ensure stakeholders in the Regional Marketing Task Force participate in the success of the program. 2. Improve marketing tools. ($25,000). Mr. Ayres invited the Board members to the unveiling of the new website on November 6. 3. Increase awareness regionally among companies, third -party allies, and Oklahoma citizens of the region's competitive advantages. ($46,500). This objective includes four color ads in the Dallas Business Journal at a cost of $4,000 each; hosting functions or attending meetings; teaming with the Burkburnett Business Development Corporation in a $22,000 campaign to produce marketing materials, billboards; and attending arrival events for those military members coming into the southern WFEDC — Minutes of November 2, 2007 3 Oklahoma /Ft. Sill area. The net cost to the Marketing Task Force is $7,000, as Burkburnett will pick up $15,000 of that campaign. 4. Increase awareness of the region's competitive advantages among third - party allies and national companies. ($34,500). This effort, including membership in "Team Texas," seems to generate the best return on investment. 5. Increase awareness of local and regional real estate developers regarding opportunities for build -to -suit and spec building construction. ($18,000). The majority of the money spent will be on signage. Efforts are ongoing to get signage to advertise the Business Park. 6. Outsource the implementation of the regional marketing plan to the BCI. ($47,000). This expenditure goes to Brandi Ballard's salary, who is assigned to marketing and economic development. Ms. Ballard has a Master's degree, and it is crucial to increase her salary in order to retain her. Mr. Ayres reiterated that the Task Force is requesting 63% of its $171,000 budget (or $107,730). Mr. Stahler noted that his paperwork indicates the request is for 62 %. Mr. Chase responded that he had to manipulate the figures, but the formula used allows for a close computation. Mr. Stahler asked what the percentage was last year. Mr. Chase could not recall, but believes it was approximately 65 %. Chairman Shores remarked that Burkburnett contributed $15,000 last year, which was used within the parameters of the program. This year, they withdrew the $15,000 to use it solely to entice those north of the river to come south to live. Mr. Ayres stated it goes beyond that. Burkburnett wants to make southern Oklahoma aware of this region's opportunities. Chairman Shores asked if Burkburnett will promote Wichita Falls in its advertising. Mr. Ayres replied that while he was not at the meeting, he does hope the advertising campaign is regional in nature. Mr. Chase stated that Burkburnett is promoting itself as a place to live, and Sheppard Air Force Base and Wichita Falls as support. A regional message was delivered. Burkburnett has limited resources due to Wal -Mart leaving the city. They feel this tack is worth pursuing, and the Task Force agreed. The campaign is still wrapped up in a total marketing package. Kay Yeager stated that the impact of the influx of military personnel to Ft. Sill was discussed by the Military Affairs Committee a year ago. Lawton does not have the infrastructure, in terms of schools or housing, to support the number of individuals who will be coming to the area. There will be some opportunity to tie the influx into workforce development later on if this can be marketed regionally. The spouses of the infantry can enter into Wichita Falls' workforce. Chairman Shores noted that these are temporarily assigned personnel. Ms. Yeager agreed, but opined that they are well trained and have the necessary soft skills. Chairman Shores asked if anyone had seen Burkburnett's promotional materials, and made reference to the Wichita River. Ms. Yeager agreed that the river is like an iron curtain. However, she added, the impact on Lawton's schools will be intense. It cannot absorb all of those who will be coming, and it does not have the resources to build more WFEDC — Minutes of November 2, 2007 4 schools to accommodate them. Chairman Shores acknowledged that the discussion does not concern a great deal of money, but it disturbs him to, in effect, subsidize Burkburnett. If it is a regional marketing plan, however, then he agrees with the expenditure. Mr. Chase noted that Burkburnett has joined the Lawton Chamber of Commerce and has been included in various events. However, Wichita Falls is not allowed to market to Ft. Still. It is perceived that Wichita Falls is the evil empire and would steal everything. Wichita Falls would not be welcomed to Chamber of Commerce events. The materials Burkburnett has drafted are in their infancy. They need to see how much money they will have to work with. In his mind, Burkburnett will pay $15,000, and will send an invoice for payment of whatever remains after that expenditure. Mr. Stahler then asked if Mr. Chase would have an "out" if the $15,000 expenditure did not reflect a regional marketing effort. Mr. Chase replied that he could place that stipulation on Burkburnett if the Board desires. Mr. Coleman noted that Burkburnett has been a member of the Regional Task Force since the beginning and has been a great partner. A lot of sales tax dollars in Wichita Falls come from Burkburnett. The city does not have a huge workforce or sites to sell, but it is trying to leverage its schools and quality of life. If someone lives in Burkburnett, and works at Ft. Sill, they will shop in Wichita Falls on Saturdays. Ms. Yeager observed that it is hard to break down barriers that exist between entities. They perceive Wichita Falls to be the "big guy." If the BCI wants to join the Lawton Chamber of Commerce, she will go to their meetings. She would hate to see the marketing task force fall apart. Mr. Chase states that he is unaware of the iron curtain between the communities, possibly because of the length of time he has been in the area, but he does not dispute it. The vast majority of people working at the casinos live in Wichita Falls, and there is a good percentage of Oklahomans who work in Wichita Falls. The notion there once was a barrier is undeniable, but it is breaking down, and has to be broken down. Leo Lane noted that employment easily crosses the river, but trade does not. Chairman Shores stated he would like to see some record of the success of this program before next year's budget request. Mr. Chase replied that Burkburnett's goal is to recruit 100 families. Whether it happens in the next 12 months is unknown. Ms. Yeager added that even the small communities surrounding Lawton do not have the infrastructure to support the influx of military families. Chairman Shores countered that an entire subdivision is being constructed in Walters for them. Mr. Chase stated that when a military member establishes his /her resident in Texas, that state residency is carried with them throughout their military career. As there is no income tax in Texas, they basically receive a 5% raise compared to living in Oklahoma and paying an income tax. Chairman Shores replied that he does not WFEDC — Minutes of November 2, 2007 5 question the advantage to persons to live in Texas. His concern is whether Wichita Falls will get the "bang for the buck." Mr. McLendon noted that his daughter lives in Burkburnett, and often shops in Wichita Falls. He added that a lot of people who live here have negative opinions about Wichita Falls. But he recently ran into a couple from Altus who come here for entertainment. Mr. Chase noted that the Board members receive quarterly activity reports. A large percentage of the proposed budget falls under Objective No. 4, national and regional awareness. He commended Kevin Pearson for doing a masterful job of tracking and proposals or requests for information received by the BCI. Fifteen requests for proposals were received during the third quarter of 2006; in the third quarter of 2007, 28 proposals were received. Mr. Pearson interjected that only 23 requests for proposal were received during his first year with the BCI. Mr. Chase opined that the program is working. He spoke this week with the consultant from Paragon, and the consultant who brought N.E.W. to the City. Both are willing to look at Wichita Falls for additional projects, since those have been so well received. Mr. McLendon moved, seconded by Mr. Stahler, for approval of the request of $107,730 for Regional Marketinq and Workforce Development. Chairman Shores reiterated that he wants to see a synopsis or update on the Burkburnett program when the budget is presented next year. Mr. Chase stated that the growth of the initiative will be tracked. The motion unanimously carried. Mr. Chase then explained to the Board that the second spreadsheet provided in an email reflects his practice of reconciling the BCI's actual expenses, to ensure that the BCI is not the recipient of more funds than it actually spends. Workforce Development Task Force Darrell Coleman appeared before the Board to request financial assistant with a project that started some time ago. A task force of 26 members was formed consisting of major employers, educators, and other interested parties to talk about the workforce in Wichita Falls, and to gauge the effectiveness of programs currently in place. At the end of the process, the task force arrived at 10 recommendations to pursue to address certain problems. There are several issues involved. Unemployment is at a low 3.9 %. A total of 64,100 people are employed in the marketplace, up 3,000 from the year 2000. It is becoming tougher to find people. Mr. Stahler asked if the 3.9% figure includes the "unemployable," to which Mr. Coleman replied affirmatively. Mr. Stahler observed that the percentage is probably much lower than 3.9 %, if the figure is adjusted to eliminate those persons. WFEDC — Minutes of November 2, 2007 6 Another problem is that a certain element of job seekers lack "soft skills." Large employers do not feel those persons from the current system are qualified to go to work. A human resource director from one of the large plants said that the company has to hire 15 people a month due to attrition. However, the company has to go through approximately 100 resumes and interviews to find 15 people with the qualities and skills necessary to perform the work. Mr. Coleman continued, noting that there are several organizations in town trying to address the problem, but there is no central clearinghouse to coordinate those efforts. The Task Force is asking the 4A Board for $75,000 of the $150,000 deemed necessary to fund this initiative. Mr. Stahler asked where the task force hopes to raise the other $75,000. Mr. Coleman noted that they have already received $45,000 ($15,000 from Vernon College, WFISD, and MSU). Mr. Chase added that there is also $15,000 available from the Workforce Resource Commission. Ms. Yeager added that larger industries will be asked to contribute, as well. Chairman Shores observed that all monies obtained thus far come from tax supported entities. Mr. Chase replied that employers are looking to education providers for solutions. If they did not step up to the plate, this initiative would not have a chance of success. He added that the Human Resources director of one major plant in Wichita Falls stated that if corporate headquarters knew of the situation here, they would not authorize continued expansion in the area. Mr. Stahler agreed that it is a definite problem. Ms. Yeager noted that Wichita Falls is at the point where it cannot attract new industry, as it cannot provide an adequate workforce. If a new industry came to town, the workers it would hire would merely be transfers from other, already existing, industries. Chairman Shores observed that of the $150,000 requested, $100,000 is devoted to administrative costs, and only $50,000 to program costs. He questioned whether this appropriation is skewed in the wrong direction. Mr. Coleman replied that what is lacking is someone whose job is to improve the workforce of Wichita Falls. There are already entities in existence that supposedly do this, but there is no one to coordinate those activities. Ms. Yeager lifted up as an comparison Tom Whaylen's work on behalf of the Military Affairs Committee. He is doing an outstanding job; hopefully the person hired to coordinate these activities will do a similar job. Mr. Stahler asked if the group already has someone in mind. Mr. Chase responded that while there are local individuals worth considering, a national search will be performed. The individual will need to understand not only what happens here, but also know how to tap into federal and state programs. Chairman Shores asked if the City Attorney had looked at this request. Mr. Benoit replied that he had not discussed this item with Mr. Sullivan. Mr. Coleman likened this issue to an oncoming train. It is hard to fill certain jobs, and entry-level jobs are especially difficult to fill. Some of the folks applying for those jobs are ones employers do not want on the payroll. He added that some good has already come from this task force: Leah Ford, the principal at Carrigan, has changed the school's 2007 -08 curriculum to teach soft skills — how to dress for interviews, stay sober WFEDC — Minutes of November 2, 2007 7 the night before a job interview, and wear clothing that will cover tattoos. Carrigan also had programs available that heretofore had been underutilized and not well known until this task force was formed. Ms. Yeager noted that she is pleased with the WFISD response. She has long been an advocate that the public schools need to provide vo -tech training. Mr. Coleman observed that there must be a varied workforce — there is a need for those workers who will receive technical training; those who will attend a four -year college; and those who will attend college for four years plus. Ms. Yeager interjected there is also available the two -year training degree that Vernon College offers. Chairman Shores noted that the task force was requesting this funding on a three -year basis. Mr. Coleman responded affirmatively. Ms. Yeager noted it will take that long to see progress. Chairman Shores agreed it is necessary to develop the workforce, but he wants the City Attorney to review this request. He acknowledges that the Board has done job training several times in the past. Mr. Chase advised that the $15,000 from the Workforce Resource Commission is a grant, and can only be promised for one year. However, Mona Statser (of the Workforce Resource Commission) is fairly confident there may be money from other grants for the following years. Mr. Stahler moved for approval of the request, subject to the City Attorney's approval of the 4A Board funding this request. Mr. McLendon seconded the motion. Chairman Shores questioned the task force's plan if it does not receive the full $150,000 requested. Ms. Yeager noted they will get the money. Chairman Shores opined that the larger employers ought to participate. Mr. Chase replied that is one reason why the request was written as "up to" $75,000. He asked Vetrotex and Howmet officials what system they would like to see to make a contribution to this program. One said a head count of so many dollars per job; the other said it would be easier to become a platinum member of the BCI. There is a willingness to participate in this program. Mr. Stahler suggested they not disclose that the 4A Board has agreed to help fund the program. Mr. Chase stated that he would prefer that the 4A Board does not have to contribute any money. On the other hand, it is necessary to demonstrate a three -year commitment to funding to candidates for the position. Chairman Shores moved that the motion be amended so that the Board's contribution will be whatever amount is necessary to raise the total contribution to $150,000, not to exceed $75,000. The amended motion carried unanimously. V. ADJOURN Mr. Lilley moved, seconded by Mr. Stahler, that the meeting be adjourned. The motion unanimously carried, and the meeting was adjourned at 4:58 p.m. GaPrSho , Chairman