4A Wichita Falls Economic Development Minutes - 08/04/19984A Economic Development Corporation
Board of Directors Meeting
Minutes
City Council Conference Room
August 4, 1998
Members: Present
Gary Shores
Ron Bullock
Lou Rodriguez
Bo Stahler
City Staff: Jim Berzina, City Manager
Robert Powers, Assistant City Manager
Greg Humbach, City Attorney
Others Present: Kay Yeager, Mayor
Ron Mertens, BCI
Dick Bundy, BCI
Timothy Thomas, MSU -SBDC
The meeting was called to order at 2:35 p.m. by Mr. Shores.
Absent:
Ray Clymer, Jr.
Approval of the Minutes. Mr. Bullock moved and Mr. Shores seconded that the
minutes of the January 26, 1998 meeting be approved. Motion carried
unanimously. Mr. Stahler moved and Dr. Rodriguez seconded that the minutes
of July 6, 1998 be approved. Motion carried unanimously.
Consider FY 1998 -99 Budget. Mr. Powers reviewed the Preliminary Budget for
FY 1998 -99. Estimated beginning fund balance is $1,849,563. Sales Tax
receipts and interest earnings for the new fiscal year are projected at
$2,392,000. Projected expenses included only $200 for fidelity bond insurance
and $89,960 for continuation of the contract with the BCI. It was mentioned that
in the previous year the Board had recommended and the City Council approved
$400,000 for APAC should that project materialize.
Ron Mertens, BCI, mentioned that APAC was still interested in coming to Wichita
Falls. They were bidding on jobs which, if successful, would make this project
viable. It probably would be towards the end of the 4th quarter of 1998 before
anything more was known. The Board instructed Mr. Powers to include this
amount in the budget under "eligible projects."
4A Economic Development Corporation
Meeting Minutes
August 4, 1998
Page 2 of 3
Mr. Stahler requested that staff prepare a running list of 4A approved projects for
historical purposes. Mr. Bullock suggested this could be attached to the
financials as an addendum.
Mr. Shores asked Mr. Mertens to overview the BCI's budget request. Mr.
Mertens stated the request includes funds for the salary, taxes and benefits of
the BCI Vice - President of Economic Development and for a portion of the
overhead expenses ($6,000) associated with this position. The total request is
$89,960. He requested that the Board reserve him the right to come back later
in the year if this budget needed to be amended.
Mr. Timothy Thomas, Director of the MSU Small Business Development Center
(SBDC) presented his agency's request for 4A funding. The SBDC was formed
around 1987 and is one of six under the auspices of the Northwest Texas Small
Business Development Centers at Texas Tech University in Lubbock. The
SBDC serves a twelve (12) county area and receives funding from Lubbock
based upon a formula. The MSU -SBDC is the smallest in terms of area and
population.
Wichita County has been providing funding for the past several years. This
year's assistance is approximately $32,000. MSU supports with in -kind services
as well as some monetarily. Mr. Thomas requested the Board consider approval
of $40,000 which would be used for more training, seminars and counseling
services.
Mr. Stahler asked Mr. Thomas whether SCORE was a resource. Mr Mertens
stated that both SCORE and SBDC worked together. Many referrals came from
SCORE.
Mr. Shores asked about the $8,000 for marketing. Mr. Thomas stated that they
used to have funds in the budget, but did not now. He would like more
newspaper advertising and speakers.
Jim Berzina voiced his concern about the legislative authority of this type of
assistance from the 4A Board. He said that it should be reviewed by the City
Attorney. Mr. Stahler moved and Mr. Bullock seconded a motion to table this
request. Motion carried unanimously.
Mr. Stahler moved and Mr. Bullock seconded to approve the FY 1998 -99 budget
as amended to include the $400,000 previously approved for the APAC project.
Motion carried unanimously.
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4A Economic Development Corporation
Meeting Minutes
August 4, 1998
Page 3 of 3
Bonds. Mr. Powers mentioned that the By -laws stipulate that the president and
secretary- treasurer are required to obtain fidelity bonds in the amount of
$100,000. Previously, the 4A Board had approved reducing the amount to
$25,000. The City Council, however, tabled that proposed amendment and
instead inquired whether the bond could be eliminated as long as the City of
Wichita Falls was handling the finances. The Board agreed with the revised
wording of the By -law amendment as follows:
"Section 6. Bonds. The president and secretary/treasurer of the
Board shall each give an official bond in the sum of not less than
One Hundred Thousand ($100,000) Dollars. The bonds referred to
in this section shall be considered for the faithful accounting of all
monies and things of value coming into the hands of such officers.
The bonds shall be procured from some regularly accredited surety
company authorized to do business in the State of Texas. The
premiums therefor shall be paid by the Corporation. A copy of each
officer's bond shall be filed with the City Clerk. However, no bond
shall be required of either the president or secretary- treasurer
if, and as long as, the books, records, accounts and financial
statements are maintained by the City of Wichita Falls in
accordance with Article IV, Section 3(b)."
Mr. Bullock moved and Mr. Stahler seconded that the By -laws be amended.
Motion carried unanimously.
Other Business. Mr. Bullock reported that he had received an official notice that
the board was exempt from paying state sales tax.
Mr. Bundy reported that Amarillo had issued $40,000,000 in bonds to attract Bell
Helicopter. He thought Wichita Falls was proceeding more appropriately.
co ding Secretary
Secretary- Treasurer