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HomeMy WebLinkAboutMinutes_GEDCO_02.20.2006utes of the Meeting of the Georgetown Economic Development Corporation City of Georgetown, Texas Monday, February 20 2006 The Georgetown Economic Development Corporation of the City of Georgetown, Texas, met on Monday , February 20, 2006. Members Present: Ron Shelly, Ben Oliver, Henry Carr, Farley Snell Members Absent: Rick C. Smith Staff Present: Paul Brandenburg, General Manager, Micki Rundell, Finance Manager, Trish Carls, City Attorney, Shirley J. Rinn, Deputy City Secretary, Mark Thomas, Economic Development Director, George Gomez, Program Specialist Regular Meeting The Meeting was called to Order at 2:00 p.m. REGULAR SESSION: Board may, at any time, recess the Regular Session to convene in Executive Session at the request of the Chair, a Board Member, the City Manager, Assistant City Manager, City Council Member, or legal counsel for any purpose authorized by the Open Meetings Act, Texas Government Code Chapter 551, and are subject to action in the Regular Session that follows. EXECUTIVE SESSION: The Georgetown Economic Development Corporation will meet in closed executive session as allowed by Texas Open Meetings Act (Texas Government Code Chapter 551), as follows: A. Section 551.072. DELIBERATION REGARDING REAL PROPERTY Discussion and possible action to deliberate the purchase, exchange, lease or value of real property for purposes authorized by Section 4A of Economic Development Act of 1979 (as amended) which discussion in open session would have a detrimental effect on negotiations with third persons. B. Section 551.087.. DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS. Deliberation regarding commercial or financial information that the corporation has received from a business prospect that the Georgetown Economic Development Corporation seeks to have locate, stay, or expand in or near the territory of the City of Georgetown and with which the Corporation is conducting economic development negotiations, and/or deliberation regarding the offer of a financial or other incentive to a business prospect that the Corporation seeks to have locate, stay, or expand in or near the territory of the City of Georgetown. C. Section 551.071. CONSULTATION WITH ATTORNEY. Consultation with attorney regarding legal issues related to agenda items and other matters in which the duty of the attorney to the Georgetown Economic Development Corporation under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. REGULAR SESSION: The Board will reconvene in regular open session to take any action necessary related to any of the above -posted executive session items. D. Consideration and approval of the minutes from the Regular Board Meeting held Monday, January 23, 2006--Farley Snell, Secretary Motion by Oliver, second by Snell to approve the minutes from the Regular Board Meeting held Monday, January 23, 2006. Approved 4-0 (Smith absent) E. Discussion and possible action regarding input on the 2006/07 budget process--Micki Rundell, Finance Manager Rundell told the Board that this item wasn't really relevant to this Board at this time because while they will have a budget, there won't be any project specific allocations at this point. She went on went on to discuss Item F. F. Consideration and possible action to approve the GEDCO 2006 Interim Budget--Micki Rundell, Finance Manager Rundell went over the Interim Budget with the Board and explained each of the items on the handout. She told them she was presenting an Interim Budget because there were only 9 months left in the year. There was a clarification as to how the "Available Working Capital" is calculated. It was confirmed the contingency is a percentage of the Board's total sales tax number. Rundell also provided a 5-year performa so the Board could have an idea of what the estimated budgets will look like in the coming years. There was clarification that if no money was borrowed or spent in the current Budget year, it would roll forward to the following budget year. There was further discussion regarding how borrowing would impact the budget. There was clarification that the sales tax dollars that went into the GEDCO Budget were those collected in January 2006 through September 2006. It was also clarified that m the Interim Budget there would be 12 months worth of sales tax revenue collected, but only 9 months of expenses. There was additional discussion on the parameters used for year to year growth projections, as well as discussion regarding the impact of the Simon Mall's impact on the budget and its growth projections. Rundell told the Board that the budget would be updated for the upcoming budget year. GEDCO Minutes/February 20, 2006 2 of 5 Motion by Carr, second by Oliver, to approve the GEDCO 2006 Interim Budget. Approved 4-0. G. Consideration of the January 31, 2006 Financial Report--Micki Rundell, Finance Manager Rundell provided the monthly financial report to the Board and went over the details in the report, which included monthly sales tax revenues, monthly expenditures, a budgetary report, and other relevant financial information. Rundell told the Board that the City's baseline for the City's sales tax revenues had increased by over the last year, and that not all of the additional baseline was due to Simon. She told them that she was currently working with Mark Thomas to try and identify where all of the sources for the City's sales tax dollars are coming from She said that the sales tax figure for December was 10-12% higher than the prior year, and that most of that increase was attributable to Simon. There was also a brief discussion regarding the Simon sales tax rebate and how it is calculated. H. Update on Precision Machining Training Program --Mark Thomas, Director of Economic Development Thomas gave the Board an update on this program to date. He told them that there are currently 3 companies, STI SPM and Turnco who employ about a 100 employees in this area. He said that during all of their retention visits with these companies, their critical path for retention and expansion is having trained machinist available in the work force. Thomas told the Board that they have met with local companies and GISD, and that they have all indicated a willingness to work with the City on this project. The next step would be to bring all the parties together to discuss what the program will look like. George Gomez addressed the Board and gave them an overview of what the classes would look like. There was clarification that equipment is the major cost and this would be the area that GEDCO would need to contribute Further discussion regarding maintenance/replacement costs of the equipment over time. There was additional discussion regarding the Board's commitment to the project, and it was emphasized that the Board was generally supportive of providing start up funding to purchase equipment, but not for the ongoing operation costs The board also discussed support of funding upgrades for future equipment if necessary. 1'he Board also discussed the anticipated wages in this field, the need for basic training on the machines, as well as the math requirements needed for the training, including trigonomenty, geometry, and calculus. GEDCO Minutes/February 20, 2006 3of5 There was discussion regarding whether or not the companies would need to sign Performance Agreements as to how many students they will hire. There was also discussion as to whether or not the companies consider each other competitors. Thomas told the Board that one of the companies is completely different than the other two and that the other two have some overlap, but are not identical. There was a discussion as to whether or not there should be a Standing Governance Structure or Board of Directors for this program so that there would be a true buy -in from the companies for this program. There was also discussion regarding internships, classroom training, as well as training on the job site. The Board indicated that the companies needed to understand that this program would be a long term project. There was additional discussion regarding the importance of the GISD's instructor's role in this program, as well as discussion that the key element to the success of the program is having the right people on board. I. Discussion and possible action on coordination of the Economic Development Commission's goals and objectives relating to the 4A Board --Paul Brandenburg, General Manager and Mark Thomas, Director of Economic Development Brandenburg addressed the Board regarding the role of the Economic Development Commission and how it has evolved since its inception. He told the Board that the EDC met in a retreat in November to discuss its current role and whether the EDC needed to be reorganized. He went on to tell the Board that he and Mark Thomas would be presenting a proposal Economic Development Commission Operating Plan to the EDC on Thursday, February 23, 2006. He said that the goal would be to have members of the EDC focus on certain areas such as retention/expansion, land and property, recruitment, government, retail, and transportation. He provided an overview of each of these focus areas. He also provided a proposed flowchart with a proposed process for forwarding development projects, redevelopment projects and economic development projects to the City Council. Brandenburg told the Board he felt it was important that any items brought before the 4A Board somehow be tied to the goals and objectives of this Plan. There was extensive discussion regarding the need to develop strategies to serve as a guide for the City in its economic development efforts, as well as discussion regarding the kinds of strategies that could be utilized in this effort, including market studies, identification of the City's assets that could be used in the City's recruitment efforts, sales tax leakage studies to identify the types of businesses that would benefit the community, identification of business that would create high paying new jobs. There was also discussion regarding the complexity of economic development and the need to diversify the community's focus versus keeping all of the "eggs in one basket". The Board also talked about the type of information it would like to see from staff prior to GEDCO Minutes/February 20, 2006 4 of 5 proceeding with a project, especially calculations on investment/return. They felt that it was important to involve Finance in the economic development planning process. J. Project update and status of discussions with Fallbrook Technologies, Inc. --Paul Brandenburg, General Manager and Mark Thomas, Director of Economic Development Brandenburg explained to the Board that this particular business could now be discussed in open session because of a newspaper article about the company and its future plans. Mark Thomas told the Board that Fallbrook Technologies is staying where they are for at least a year. The Board went on to discuss Fallbrook's product line, as well as the dynamics of the competition the City will be looking at in a year when they are ready to make their move. The Board also discussed "what is a win?" when it comes to recruiting companies for economic development, the important need for strategic planning in this process, whether or not developers would build buildings in anticipation of companies moving to the community and utilizing the existing structures. There was also discussion as to what the community could do for developers to encourage them to do this. K. Set date for next Corporation meeting. Next Meeting is scheduled for March 20, 2006 L. Adjourn The Meeting was adjourned at 3: 24 p.m. Attest: Shirley Rinn I -puty City Secretary Farley Snell, Secretary GEDCO Minutes/February 20, 2006 5 of 5