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4A Wichita Falls Economic Development Minutes - 08/14/2006MINUTES OF THE WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION AUGUST 14, 2006 Present. Members: Gary Shores, President Bo Stahler, Vice President Bill Altman Dick Bundy Dave Lilley City Council: Lanham Lyne, Mayor Charles Elmore, Councilor (District 5) City Staff: Darron Leiker, City Manager Matt Benoit, Assistant City Manager Linda Merrill, Recording Secretary BCI: Tim Chase, President Kevin Pearson, VP of Economic Development Warren Ayres, Chairman, BCI Regional Marketing Task Force Darrell Coleman, Military Affairs Committee Kay Yeager, Military Affairs Committee Vernon College: Brenda Kays, Dean of Instructional Services Mark Holcomb, Skills Center Division Chair Texas Recreation: Pat Rominger, President Don Badgewell, Director of Production David York, General Partner I. CALL TO ORDER. Gary Shores called the meeting to order at 3:02 p.m. He welcomed Dick Bundy as the Board's newest member (replacing Lou Rodriguez). II. APPROVAL OF MINUTES - FEBRUARY 8, 2006. Dave Lilley moved, seconded by Mr. Shores, that the minutes be approved. The motion carried. Wichita Falls Economic Development Corporation August 14, 2006 Meeting Minutes Page 2 III. CONSIDER PRESENTATION AND PROJECT APPROVAL OF VERNON COLLEGE SKILLS TRAINING MACHINING SCHOOL. Tim Chase reminded the Corporation of the shortage of machinists for local industries. As a short-term solution, Wichita Clutch sent 25 of its employees through a 12 -week course, from which all but one graduated. Brenda Kays, Dean of Instructional Services at Vernon College, presented a long- term solution to the problem of skilled labor shortages. The College visited 30 local industries that employ machinists. Fifty percent of those industries have a need for machinists; thirty percent outsource their work due to the shortage. The proposed solution is a three - pronged approach: 1. Hire a full -time machining instructor to recruit students into the program; 2. Conduct an aggressive mail, print, and radio campaign (targeted to parents, students, Latinos, and service workers); and 3. Upgrade current technology to meet industry standards Ms. Kays stated the program will be self- sustaining after three years, but Vernon College is requesting financial assistance from the Corporation for the first three years (for instructor's wages, advertising campaign, and technology upgrade), as follows: With the right start-up costs, this program can be successful. Dollars now spent for outsourcing would stay local in the form of salaries; and a youth -based workforce would be created, making this area attractive to prospective industries. Bill Altman had heard the A &P Program was not going well. Ms. Kays replied that a new instructor was hired. They anticipate 16 students, up from last year's 12- student enrollment. Eight are ready to take the practical exam for their A &P license. Mr. Bundy asked how long the program takes to complete. She replied there are two semesters of general course work, and nine months each of airframe and propulsion training. Machining is a one -year certificate, provided the student attends full time. Mr. Altman asked why the program does not budget for a technology upgrade until the third year. Ms. Kays replied that by year three, it would be apparent if there were sufficient enrollment to justify the purchase. There is a software purchase in the first year. Otherwise, the existing equipment is adequate at the present time. Mr. Altman asked if Vernon College had devised methods to encourage students to stay in the area. Ms. Kays noted Mark Holcomb, the Division Chair for the Skills Center, is approaching industries with that goal in mind. The instructor can act as a Year 1 Year 2 Year 3 Total WFEDC $70,412 $65,210 $107,301 $242,923 Vernon College $62,781 $67,834 $95,638 $226,253 With the right start-up costs, this program can be successful. Dollars now spent for outsourcing would stay local in the form of salaries; and a youth -based workforce would be created, making this area attractive to prospective industries. Bill Altman had heard the A &P Program was not going well. Ms. Kays replied that a new instructor was hired. They anticipate 16 students, up from last year's 12- student enrollment. Eight are ready to take the practical exam for their A &P license. Mr. Bundy asked how long the program takes to complete. She replied there are two semesters of general course work, and nine months each of airframe and propulsion training. Machining is a one -year certificate, provided the student attends full time. Mr. Altman asked why the program does not budget for a technology upgrade until the third year. Ms. Kays replied that by year three, it would be apparent if there were sufficient enrollment to justify the purchase. There is a software purchase in the first year. Otherwise, the existing equipment is adequate at the present time. Mr. Altman asked if Vernon College had devised methods to encourage students to stay in the area. Ms. Kays noted Mark Holcomb, the Division Chair for the Skills Center, is approaching industries with that goal in mind. The instructor can act as a Wichita Falls Economic Development Corporation August 14, 2006 Meeting Minutes Page 3 placement officer. This program gives this area the opportunity to have a skilled workforce. Mr. Chase stated it would also show industries that a program would be tailored to fit a particular industry's needs, if necessary. Ms. Kays stated that the advertising campaign includes color brochures, a full - page print ad twice a year, and a quarter page ad each month, full color inserts in the Times Record News and Fronteras, as well as mailings to parents. In addition, the plan includes a monthly radio campaign with Clear Channel. Mr. Altman noted a machinist earns $40,000 a year, equivalent to an instructor's salary at Vernon College. Ms. Kays replied the salary is the going wage rate at Vernon College. Mr. Holcomb's students in his electronics program out -earn him by three times. She feels there are other benefits to being an instructor at a community college. Mr. Bundy asked how the success of the program would be gauged. Ms. Kays believes one benchmark is student enrollment. Only one student is enrolled for the fall semester; the program can accommodate 16 students. She expects to see a gradual increase in enrollment as word gets out. Mr. Stahler asked if the 4A Board would still be financially committed if enrollment does not increase. Ms. Kays stated the College would review the program at the end of the first and second years. Vernon College does not want to invest funds into a program that is not successful. Mr. Shores noted the funding could be subject to the program's continued success, to which Ms. Kays agreed. Mr. Bundy believes it would be prudent to review the program before the major technology upgrade is performed. Mr. Altman recognized the need for machinists. The sum requested is relatively small compared to the amount of money the Board has on hand. He moved to fund Vernon College's total request, provided it present an annual report on the program's success. Mr. Stahler believed the approval of funds should be done on a yearly basis. He does not want the Board to continue to fund a program should it not be successful. Mr. Shores stated that the program would not be ready until January. He feels the Board should commit to at least two years' funding. Mr. Altman wants to fund the entire three years in order to entice a good instructor. If funding was only available for a year, an instructor might hesitate to accept the position. Mr. Stahler stated that if the program is totally funded, but is unsuccessful, the instructor would be out of a job. The end result would be the same. Mr. Chase noted that Vernon College's instructor contract is typically for 12 months. Mr. Lilley seconded Mr. Altman's motion. He believes the program is good for everyone. Mr. Shores stated Mr. Altman's motion funds the entire request, with annual reviews. However, the Board is still committed to the funding. Mr. Altman replied that he would expect Vernon College would end the program if it were not successful. Wichita Falls Economic Development Corporation August 14, 2006 Meeting Minutes Page 4 Mr. Stahler stated that it made better sense to commit only to two years. It would be awkward to have to end the funding. Mr. Lilley replied it would be awkward if there were a change on the Board, and Vernon College is denied additional funding. Mr. Stahler hoped anyone appointed to this Board would want this to work. Mr. Lilley replied there is no guarantee of that. He affirmed that Vernon College made a commitment not to throw good money after bad. The motion carried, with Mr. Stahler in opposition. IV. CONSIDER PRESENTATION AND PROJECT APPROVAL OF ECONOMIC DEVELOPMENT INCENTIVES FOR TEXAS RECREATION Kevin Pearson stated that Texas Recreation is seeking $202,400 to assist with the installation of a thermal oxidizer at their plant. The Texas Commission on Environmental Quality has ordered a drastic reduction in the amount of volatile organic compound that is released into the atmosphere. The cost to install the thermal oxidizer runs between $450,000 to $700,000, not including modifications to the building. Texas Recreation makes outdoor water products. The company also has an operation in Graham. That facility is 110,000 square feet, with three paint bays. It must either install a thermal oxidizer here, or move production to its Graham plant (which already has a thermal oxidizer installed). Mr. Pearson stated that the company employs 82 full -time workers, and 36 part- time employees. If the thermal oxidizer is installed at the Wichita Falls plant, the company will upgrade ten part-time employees to full -time status. Pat Rominger, the President of Texas Recreation, addressed the Board. He stated both plants are similar in size. The Graham plant employs 40 -45 workers. Bob Scheurer started the company in 1957. Mr. Scheurer sold the company to a gentleman from Waco in 2002. In 2005, he and two other partners purchased the business. Later that year, David York and other local investors bought out those two partners. Don Badgewell, Director of Production over both plants, stated that the company had been grandfathered under the Clean Air Act of 1979. However, the EPA, under the direction of the TCEQ, has removed that exemption. By April 2007, the company must reduce emissions 95% to 98 %. The thermal oxidizer burns all the volatile organic compounds inside the facility. Assistance is needed to install one at this location, or 95% of the Wichita Falls operation will have to be moved. Mr. Pearson stated the plant's location in Wichita Falls is landlocked, but they have acreage in Graham on which to expand. Mr. Rominger said they have two paint rooms in Graham, and room for a third. Any major expansion would take place in Graham. There are five paint rooms in Wichita Falls, as well as two non - contiguous rooms. Mr. Pearson asked, if the company were to expand, would it allow the BCI to offer a proposal. Mr. Rominger replied affirmatively. Wichita Falls Economic Development Corporation August 14, 2006 Meeting Minutes Page 5 The Graham plant builds the chairs and lounges, and the Wichita Falls plant does everything else — floats, life vests, pool accessories, drink holders, and key floats. Two - thirds of their product, in terms of dollars, is run through the Wichita Falls plant. Mr. Shores would like the Graham business moved to Wichita Falls. Mr. Rominger stated the company has made a substantial investment in Graham. Mr. Shores asked if the equipment could be moved, to which Mr. Rominger replied, yes. Councilor Elmore asked if the company owns the building in Graham. Mr. Rominger replied they lease the property in Graham, but own their Wichita Falls property. Mr. Rominger stated the mere size of their product is what drove the need to open up operations in Graham. There was not a suitable facility in this area for the company at the time of their expansion. David York stated the company is not tied into Graham, and will look at any opportunities to boost its bottom line. It is probably one of the least known companies in town, yet it sells to the biggest retailers all over the world. It is a hidden gem. Mr. Shores asked if the upgrade from 10 part-time to full -time workers is in addition to the 82 employees. Mr. Rominger the upgrade is in addition to the existing 82. He expressed concern that employees come and go, and he would not want to be held to a "snapshot" of the numbers of employees hired and retained on any particular day. Mr. Shores suggested an average, to which Mr. Rominger agreed. Councilor Elmore asked about plans for expansion. Mr. Rominger noted that the company went into the European market two years ago. They have sold from five to six containers of product to distributors. They have obtained a CE mark, which is comparable to an Underwriters Laboratories approval here in the States. Mr. Stahler moved that the request of Texas Recreation be granted. Seconded by Mr. Bundy, the motion carried. Mr. Shores reiterated that the 4A Board would be interested in working with Texas Recreation in the expansion of its company in Wichita Falls. Mr. Chase noted that the Board wished to amend paragraph E. in the Memorandum of Understanding', to remove "cessation of operation." Mr. Lilley asked for clarification that the MOU is based on a 92- person average employment, with an incentive of $2,200 per person. Mr. Shores noted the company would reimburse the Board the entire amount, should they fall below the 92 employees. Mr. Rominger clarified the company would reimburse per employee; if they ended up with only 91 employees, rather than the 92, the company would owe the Board $2,200. Mr. Lilley explained that is why he is asking this question. The MOU smacks of either you do it and you get nothing, ' In the event that Company ceases operations in Wichita Falls, Texas, or Wichita County, Texas, prior to twelve (12) months from the date of receipt of any incentives payment, Company shall within sixty (60) days of the date of cessation of operations repay the WFEDC the full amount of the incentives paid. Wichita Falls Economic Development Corporation August 14, 2006 Meeting Minutes Page 6 or you do it all and you get it all. He believes it should be as Mr. Rominger interprets the MOU. Mr. Chase stated this issue has been wrestled with on a number of occasions. It is important to grant incentives to encourage a company's success. On the other side of the equation, fiscal responsibility requires the creation and maintenance of a minimum number of jobs. The Board has the option to simply pay a certain amount of money for each job retained (1 job = $2,200), or there can be a threshold established below which the company could not go, in order to receive the incentive. It's been done both ways. Mr. Altman stated the agreement now reads that if the company ceases operation, they pay back all the incentive. If they maintain operation at any level, they do not pay any of it back. The intent is to pay the company money for 92 jobs. If they fall below 92 jobs, they reimburse for the number below 92 to which they fall. This is the middle ground between the two options. Mr. Chase asked what happens if the company does not achieve 92 employees in the first place, to which Mr. Altman replied they would not receive an incentive, unless a minimum is set. Mr. Chase averred that no payment would be made until 92 employees are retained. Mr. Rominger interjected this minimum number is one to be achieved over a one -year period. If after that, continued Mr. Chase, during the ensuing 12 months, if Texas Recreation drops below 92 on average, it would pay back that number per job. Mr. Pearson noted that, provided the MOU is passed, he would verify the number of employees at Texas Recreation. In six months, they could petition for the $2,200 per job for those retained and for those upgraded from part-time to full time. This is the standard practice from past memorandums of understanding. Mr. Lilley stated that he did not want it to be an all or nothing proposition, for the company or the Board. If Texas Recreation comes back before the Board and has only 87 full -time employees, he wants them to be compensated for the 87 employees they do have. Mr. Pearson asked if this is based on a six - months timeframe. Mr. Lilley expressed his opinion that everyone was in agreement with one year's time. Mr. Rominger assumed the Board would not want to pay any incentive until the thermal oxidizer has been installed. At that point, the company will have 5 -6 months of history behind it. He will do what good business tells him to do — he may not hire 10 employees in one day, but maybe only seven. By the time he asks for a check for $2,200 per employee, they will have six months' worth of history, and the Board will see that the company has maintained a certain number of employees. If the company does average up to 92 employees, he can appear before the Board again and ask for the incentive payment for those additional employees. He only wants to hire employees as it makes good business sense to do so. Mr. Chase asked the Board to let him and his staff work out the details of the agreement with Texas Recreation. Mr. Stahler amended his motion, approving the Wichita Falls Economic Development Corporation August 14, 2006 Meeting Minutes Page 7 funding request of Texas Recreation, subject to changes to be made to the MOU, seconded by Mr. Bundy. The motion carried. V. CONSIDER PRESENTATION AND APPROVAL OF CCR'S AND DEVELOPMENT GUIDELINES AT THE WICHITA FALLS BUSINESS PARK. Mr. Bundy noted that Isaac Manning prepared the Conditions, Covenants and Restrictions ( "CCRs "), and Development Guidelines. They are an adaptation of Alliance Airport's covenants. They are fairly tight restrictions, but not unusual. Most answers are contained within these documents. However, these restrictions and guidelines are only as good as the committee that will uphold them. These call for the creation of a design review board. Mr. Chase asked that the guidelines be approved within the next 30 days. Should a business choose to buy some land, this document would dictate its development. Mr. Shores asked if the design review board must be more than one individual. Mr. Bundy stated this document calls for a minimum three -board membership. Mr. Chase asked if the membership had to be composed exclusively of members of the 4A Board. Mr. Bundy said there should be members of this Board on the design review board for purposes of continuity. At some point, consultants could be hired. Mr. Lilley questioned the need to segregate part of the board to make a recommendation to the entire board. Mr. Chase envisioned a need to be able to move quickly on approval, and questioned whether a three - member board could be timely assembled. Mr. Bundy believes the Board could move quickly enough to accommodate any project. Ms. Yeager asked if the full board were used, would the 72 -hour posting requirement come into play. Mr. Benoit stated they would have to post a meeting of the 4A Board, whether it is a three - member subcommittee, or the entire board. Mr. Shores asked what would be required if one outsider is included on the Design Review Board. Mr. Benoit stated that he believes the Board would escape the 72 -hour posting requirement burden, but wants to check with City Attorney Bill Sullivan for verification. Mr. Bundy opined that this might be a more cumbersome task than the Board will want to handle. Mr. Chase agreed it will be an onerous task, but he noted the City would approve the building code aspects of the process. Mr. Bundy asked if the land at the park was annexed into the City. Mr. Chase replied that some, but not all, is annexed. Bundy assumed the companies in the non - annexed areas would not have to comply with the City's building codes. Mr. Chase replied that a stipulation of any non - annexation agreement is that the buildings will confirm to the building codes of the City. Mr. Pearson noted he has been through this process before in his career. They used one architect to review covenants, restrictions and plans. Once that was done, any waiver requests were taken before a Business Park Board. If there were no changes Wichita Falls Economic Development Corporation August 14, 2006 Meeting Minutes Page 8 requested, the architect would submit a letter that the plans are in compliance. This took one professional; it was done very quickly and worked well. Mr. Chase asked if that architect represented the 4A Board's interests, and the company had their own architect to represent its interests. Mr. Pearson replied that was so. The 4A Board's architect was compensated for such review. Mr. Lilley noted this would reduce the time the Board had to listen to presentations by representatives. Mr. Altman states the CCRs require the association to appoint the Design Review Board. He requested that Mr. Chase prepare a schematic diagram of the entity that makes up the membership. It appears the park owners themselves will at some point be the Design Review Board. Mr. Chase stated the association is embodied in the owners of the land. The 4A Board can choose if the landowners or the 4A Board make up the association, at least until 51% of the land is sold. Mr. Shores interjected that the percentage could be whatever number the Board decides. Mr. Chase stated that the 4A Board and the Design Review Board can be one and the same. Mr. Bundy suggested the Board obtain the advice of Isaac Manning. Mr. Chase stated there is still money left on his contract, and he is sure Mr. Manning would be willing to assist. VI. EXECUTIVE SESSION, AS AUTHORIZED BY SECTIONS 551.087 AND 551.072 OF THE TEXAS LOCAL GOVERNMENT CODE The Board adjourned to its executive session at 5:20 p.m. The Board reconvened its open session at 5:41 p.m. VII. REPORTS ON PROSPECT ACTIVITY, SITE VISITS AND MARKETING. Mr. Chase noted that a need for a formal reporting system was identified with the creation of the regional marketing task force. Kevin Pearson had used this form in the past to a certain extent, and it has been tailored to suit their needs. Mr. Chase stated he authored a simple and concise report, showing the amount of prospective activity and retention activity by quarter. The form also shows the number of inquiries, proposals, site visits, which will be filled out on a regular basis. The marketing strategy portion explains what events were attended, and include any follow -up information. He has examples of ads placed, which he would be happy to show the Board at the close of the meeting. Inquiries are up, but the number of available buildings is down. The old Stanley building is now officially listed with the Binswanger Company. Mr. Shores asked how to take initiative to get companies to this area. Ardmore just got a Chinese car manufacturing plant. He feels there should be peripheral businesses to support that industry, and Wichita Falls is only 82 miles away from Ardmore. Mr. Chase said he could contact his Ardmore counterpart, Wes Stuckey. It may be necessary to network with the Society of Automotive Engineers. He is not sure if this car manufacturer will assemble the pieces and parts here, or bring in assembled pieces. The Just in Time Wichita Falls Economic Development Corporation August 14, 2006 Meeting Minutes Page 9 Delivery System for automotive delivery simply means that inventory is in the back of a truck, not in a warehouse. It does not have to be located next door to the plant; it just needs to be able to get to the plant in a timely manner. VIII. CONSIDER PRESENTATION AND APPROVAL OF A 2006 -2007 BUDGET. BCI Regional Marketing Task Force Warren Ayres (President of the 4B Sales Tax Board) addressed the Corporation as Chairman of the BCI Regional Marketing Task Force. The Task Force is requesting funding assistance from the Corporation for its 2006 -2007 budget. The process to identify ways to better market the Wichita Falls area to prospective industries began in 2005. The Task Force concluded: (1) the majority of once - available buildings in this area are now occupied; and (2) marketing efforts need to be expanded to include the entire Wichita Falls region. To that end, the Task Force brought in regional partners: the Burkburnett Business Development Corporation, the cities of Burkburnett and Iowa Park, the 4A Board, Wichita County, and the BCI. The Task Force set goals, as follows: 1. Ensure That Stakeholders Of The Task Force Participate In The Success Of The Marketing Program 2. Improve Functionality And Appearance Of All Marketing Tools 3. Increase Awareness About Region's Competitive Advantages Among Companies And Third -Party Allies In North Texas And Statewide 4. Increase Awareness About The Region's Competitive Advantages Nationally 5. Increase Awareness Of Opportunities For Build -To -Suit And Spec Building Construction 6. Outsource Implementation Of The Regional Marketing Plan To The BCI Mr. Shores asked for clarification that the $91,000, shown as a 2006 Carryover on the Regional Marketing Reconciliation, will not be in addition to the 67% requested. Mr. Benoit replied that the $91,000 would fall into cash equity; the only way to spend it would be to budget for it again. Bo Stahler moved, seconded by Dick Bundy, that the 4A Board approve the funding of 67% of the $163,000 in expenses to be incurred by the BCI Regional Marketing Task Force. The motion carried. Military Affairs Committee Kay Yeager noted it has taken longer to get this done than anticipated. Barney Fudge prepared the 501(c)(3) paperwork. The Military Affairs Committee is countywide, and includes Wichita Falls, Burkburnett, and Iowa Park. It receives funding from the 4A and 4B Boards of Wichita Falls, from Wichita County, as well as the 4B Boards in Wichita Falls Economic Development Corporation August 14, 2006 Meeting Minutes Page 10 Burkburnett and Iowa Park. The sum of $42,750 has been raised in private funds, with pledges of $198,000 for the next five -year period. Letters have been sent, and follow -up work needs to be done to get that total increased. Danny Taylor, the superintendent of the Burkburnett Independent School District, questioned why memberships are not available to this committee. If their contribution is not authorized pursuant to an audit, they'll give another way. The WFISD has not given; Region IX wants to donate. The MAC is in the in process of searching for a president. Interviews are being conducted at the present time. It is hard to determine what type of person is needed. The day will never come when political contacts won't be needed. The Committee is not where it needs to be with Senator Kay Bailey Hutchison, but Congressman Mac Thornberry is a huge supporter, and was during the BRAC hearings. It remains her goal that by the time the 822nd is gone from Sheppard that enough backfill will have been done to replace those jobs. The Air Force is downsizing its forces, so it is unrealistic to think those jobs can be completely replaced. Darrell Coleman noted there are 23 applicants for the position. The individual needs to have a military background, people skills, and the ability to pick up the phone and call the senator's office. Mr. Shores asked what age group is being considered. Ms. Yeager stated that most fall within the 45 -60 -age range. She added that someone who knows this community would get great consideration. This person will oversee the Adopted Squadron Program, and provide assistance to ENJPPT sponsors. There will be some interaction with BCI staff, but they will mainly work on their own. Someone who is used to having a lot of staff work for them might not be the right choice. Ms. Yeager affirmed that if the right person cannot be found, they would delay the hiring for this position. Rather, they will revise the Military Affairs Committee budget, and put some of the paperwork and staff work back on BCI for a while. They will hire consultants in the interim to work any particular issues. If we don't hire a full time person now, we can do at least for a year what is needed. Mr. Stahler asked if there is someone qualified, but we are not in the ball park pay -wise, should we pay more to get them. Mr. Coleman agreed the Committee needs to be flexible on the pay issue. One candidate asked, if he was able to raise more money, could he be paid more. The answer was, absolutely. Mr. Shores noted that $50,000 was approved for this fiscal year. The money not spent by the Military Affairs Committee will go back into the general fund, and the Committee is again asking for $50,000 for the next fiscal year. Mr. Altman so moved, seconded by Mr. Stahler. The motion carried. Wichita Falls Economic Development Corporation August 14, 2006 Meeting Minutes Page 11 BCI — Economic Development Mr. Chase noted that there was a more detailed contract last year, to specify the services purchased with 4A sales tax monies. The 4A monies funded to the BCI will be used to fund 100% of the Vice President's wages and benefits, and 40% of the President's wages and benefits. Mr. Altman asked if the $152,000 being requested represents the 100% and 40% funding, to which Mr. Chase replied that it did. Mr. Stahler noted it is a $17,000 increase over past years' requests. Mr. Altman asked what how much of an increase in wages that sum represents, to which Mr. Chase replied four percent. Insurance coverage will be reduced in order to hold that cost increase to ten percent. It is a different way of calculation; the work done is tied to specifics. It makes the likelihood far less that the BCI would be subject to the Open Records Act. Mr. Altman asked if the BCI request is for $152,000, plus $30,000. Mr. Chase explained the $30,000 is requested so that the BCI can, for example, hire an engineer in the middle of a project. Mr. Stahler asked how much of that sum was used last year. Mr. Benoit stated that fund is just shy of $10,000 at present. Mr. Shores asked if the money goes back into the general fund if it is not used. Mr. Benoit replied that it does, although every bit of the $30,000 has been used in years past. Mr. Altman pointed out that this $30,000 would subject the BCI to the Open Records Act. Mr. Chase stated the BCI does not pay the bills; it receives the invoice and forwards it to Mr. Benoit for payment by the Board. This allocation has no reason to be part of the contract between the BCI and the Board. The Board agreed to strike the last sentence of the proposed Economic Development Services Contract ,2 and to allocate a separate $30,000 fund for use by the BCI for various economic development issues (as in years past). Mr. Chase asked for clarification that he would have to ask permission to spend money out of that fund, as the establishment of this fund originally was to avoid such a process. Mr. Altman stated he would have to clear expenditures with the board chairman. It should work smoothly, but it has to be requested of the Board for it to pay. Mr. Shores noted it could be the chairman or vice - chairman who has the authority to authorize payment, subject to the authority of the board given at the subsequent meeting. Mr. Chase commented that he has no problem with this revision, provided the ability to make a request for expenditures is just a phone call away. 2 Additionally, the BCI may submit invoices for payment by the WFEDC for professional services rendered by attorneys, engineers, accountants, and for other project related expenses not to exceed $30,000. Wichita Falls Economic Development Corporation August 14, 2006 Meeting Minutes Page 12 Maintenance — Wichita Falls Business Park Mr. Benoit asked the Board for $60,000 to maintain the irrigation and landscaping at the Business Park. He wants to pay City staff or a private company to maintain the system, trim trees, and mow grass. The $60,000 is based on 84 man - hours, as estimated by park maintenance staff. The company installing the system is willing to discuss maintenance. Mr. Shores agreed there is a need for recurring maintenance. He asked if plantings are being done at this time. Mr. Chase replied they are irrigating, and may be planting, as well. Mr. Stahler did not think planting would occur at this time of year. Mr. Chase stated the weather has been taken into account, and has subsequently delayed the completion date. Mr. Bundy moved, seconded by Mr. Lilley, that $60,000 be authorized for a year of maintenance of the irrigation and landscaping at the Wichita Falls Business Park. IX. ADJOURN. The meeting adjourned at 5:41 p.m. Gary 9hores, President