4A Wichita Falls Economic Development Minutes - 01/31/2013 b A 1
MINUTES OF THE
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
January 31, 2013
s'
PRESENT:
Gary Shores, President § Members °
Reno Gustafson § Fr
Dave Lilley §
Gary McLendon § 1 '
Cit Council
Glen Barham, Mayor § y m
Tim Ingle, Councilor District 4 § `
Darron Leiker, City Manager §
Jim Dockery, Assistant City Manager/CFO § City Staff
Kevin Hugman, Assistant City Manager §
Miles Risley, City Attorney §
Linda Merrill, Recording Secretary §
Tim Chase, President § Chamber of Commerce & Indust
Kevin Pearson, Vice President §
Jeff Lawrence § Nocona Transport, Inc.
ABSENT:
Dick Bundy, Vice President/Sec.-Treasurer § Member
1. CALL TO ORDER
President Gary Shores called the meeting to order at 3:30 p.m.
2. APPROVAL OF MINUTES/REPORT OF FINANCIAL CONDITION
Reno Gustafson moved for approval of the November 30 2012 minutes.
Seconded by Gary McLendon, the motion carried.
3. NOCONA TRANSPORT, INC. RETENTION PROJECT
Jeff Lawrence moved his company, Nocona Transport, Inc., from Nocona in May
2008. His company delivers curbside to trade shows, hotels, concerts, sporting events,
and many other venues. It has grown to be the number one lift gate blanket-wrapped
transporter in the world. With only 27 trucks, this was accomplished through good
business practices and great customer service nationwide. He also said the company is
the safest specialized carrier.
H:\_legal\4A&4B\4A Corp\Minutes\2013\2013.1.31 4a minutes\2013.1.31 4a minutes.doc
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WFEDC—Minutes of January 31,2013
He has already begun hiring staff and management-level employees and drivers.
He is hiring as many local drivers as possible; in fact, he hired four this morning.
Denton and Decatur have made overtures to him to move his company to their
cities, but he would prefer to stay in Wichita Falls. He wants a financial shot in the arm
from the 4A Board to continue his company's growth pattern more comfortably with less
risk, and keep jobs permanent. He expects $9 million this year in gross revenue.
Kevin Pearson noted that Mr. Lawrence intends to bring all independent
contractor drivers onto his payroll. Mr. Lawrence said he has partnered with Transforce
Driver Staffing Solutions to provide large-company benefits at an affordable cost to his
employees. He anticipates his entire fleet will be made employees within 40 days.
Mr. McLendon asked how many jobs would be created through Ryder Leasing.
Mr. Lawrence said probably two in the first year, between four and six in year two,
depending upon volume.
Mr. Shores asked if Mr. Lawrence will have to go outside the immediate area to
hire drivers. Mr. Lawrence said six of his drivers are moving to this area from across the
nation. Transforce has a list of drivers who live in the area, and drivers in East and
South Texas are interested in moving here to gain employment.
Councilor Ingle asked if the employees are paid by the hour. Mr. Lawrence said
he pays a guaranteed rate, whether or not they are driving. Most drivers are paid by the
mile or a percentage.
Mr. Shores thanked Mr. Lawrence for his presentation and congratulated him on
the success of his business. Mr. Lawrence left the meeting.
Mr. Pearson said Mr. Lawrence is satisfied with the performance agreement,
adding that eligible employees for the cash for jobs payments had to live within a 50-
mile radius of Wichita Falls.
Gary McLendon moved that the WFEDC recommend to the City Council the
expenditure of 4A funds in an amount lip to $216,00r of costs for ex enditures for the
retention and recruitment of primar 'obs at Nocona Trans ort's head uarters in Wichita
Falls Seconded by Reno Gustafson the motion unanimously carried.
4. DISCUSSION OF LAPSING AGREEMENT OBLIGATIONS & POSSIBLE
REMOVAL OF ENCUMBRANCES IN 2013:
WDS Global: 02-10-2013 expiration
Excalibur Paint: 02-23-2013 employment level verification
Sharp Iron/Armor Controls: 04-07-2013 expiration
Health Care Equipment Spec: 05-19-2013 expiration
Pratt and Whitney: 09-30-2011 expiration
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WFEDC—Minutes of January 31,2013
Mr. Pearson said both WDS Global and Excalibur Paint would like to see their
agreements extended. According to the performance agreement, WDS can petition the
WFEDC for an additional 36 months if they have not yet hired all of the intended 750
employees. They currently have 432 employees. Mr. Shores asked if the company had
petitioned; Mr. Pearson said they had submitted a letter. He suggested that the WFEDC
meet with these entities to determine their desire for extensions. Mr. Shores said it is
not the obligation of the WFEDC to encourage these companies to petition it. He would
be happy to consider their request if it is so made. Mr. Risley added that the expiration
of cash-for-jobs agreements does not preclude companies from submitting new
requests. Mr. Pearson said the WFEDC bought work stations for 400 employees; WDS
envisioned reaching the goal of 750 employees by running two shifts. Kevin Hugman
said no 4A funds had been expended under the agreement for the past 1.5 years. In
fiscal year 2011, 4A funds paid for up to 480 positions. If WDS now only has 432
employees, they are below what has already been paid, and would have to hire several
employees before they would be entitled to further reimbursements.
Tim Chase said there never was a cash-for-jobs deal made with Health Care
Equipment. He urged that the number of employees maintained from their baseline be
looked at to determine if the company owes the WFEDC any payment back on the loan
given to them for the building. Mr. Shores noted their agreement expires May 19.
Pratt & Whitney's agreement expires in September. They were paid for their
equipment, but the company never petitioned the WFEDC for the $15,000 allocated for
job training.
5. EXECUTIVE SESSION
Mr. Shores adjourned the meeting into executive session at 4:12 p.m. pursuant
to TEXAS GOVERNMENT CODE §§551.071, 551.072, and 551.087. He announced the
meeting back into regular session at 4:43 p.m. The subjects posted in the Notice of
Meeting were deliberated, and no action was taken on these items in executive session.
6. ADJOURN
Mr. Lilley moved to adjourn the meeting. The meeti g adjourned at p.m•
ary ores, President
DOCUMENTS OF RECORD RETENTION INFO.
DEPARTMENT TYPE OF DOCUMENT RETENTION RETENTION
SCHEDULE NO. PERIOD
LEGAL 1.31.13 MINUTES OF 1000-03 PERMANENT
WF ECONOMIC DEV.
CORP. (4A SALES TAX
BOARD