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HomeMy WebLinkAboutMinutes_GEDCO_07.18.2005Minutes Georgetown Economic Development Corporation City of Georgetown, Texas Monday, July 18, 2005 The Georgetown Economic Development Corporation met on Monday, July 18, 2005 at 2:00 p.m. in the City Council Chambers, located at the northeast corner of Seventh and Main Streets, Georgetown, Texas. The Meeting was called to order at 2:00 p.m. A. Discussion and possible action regarding presentation of Meeting Structure, including introduction of Corporation Members, introduction of Staff Members, organizational structure, points of contact and example of minutes format —Paul E. Brandenburg, City Manager Paul Brandenburg opened the meeting. Each member introduced themselves. Paul went through the process of the meeting structure of the Board. He introduced staff. The Members of the Board were notarized. B. Election of officers to include President, Vice -President and Secretary —Paul E. Brandenburg, City Manager Motion by Snell, second by Smith to appoint Ron Shelly as President (Approved 5-0) Motion by Smith to appoint Henry Carr as Vice President Snell told the Board that Henry is the President of the GTEC Board and thought it would be appropriate for another person be an officer of this Board and moved that Ben Oliver be appointed as Vice President. Smith withdrew his motion to appoint Carr. Second by Carr to appoint Ben Ohver as Vice President. (Approved 5-0) Motion by Carr, second by Oliver to appoint Farley Snell as Secretary. (Approved 5-0.) C. Ethics Training (Open Meetings Act; Public Infotn nation Act; State Conflict of Interest Laws; City's Ethics Ordinance ) — Trish Carls, City Attorney Trish Carls introduced herself to the GEDCO Board Members. She discussed the Open Meetings Act and explained how all meetings of this Board are subject to this Act. She also discussed deliberation and what it constitutes. She told the Board that each of its members is required to attend training for this Board. She also explained the posting requirements for GEDCO meetmgs. She also explained quorum requirements, citizen comments, and decision - making requirements. She told them that all decisions have to be voted on in public. She told them that the minutes are the official record. Minutes July 18, 2005 Georgetown Economic Development Corporation Page 1 of 5 She went on to discuss the requirements of executive session, including the posting requirements and meeting requirements. She also discussed examples of meetings of "less that a quorum" that could be considered as a "Public Meeting", including letters, phone call, and e- mails. She discussed violations of the act and how to address them if they occur. She discussed how executive sessions are recorded. There was discussion whether a member who participates in Executive Session can discuss what happened in Executive Session. She told the Board that State Law addresses the tape recording of the meeting, which cannot be released without a court order. She told them that there isn't arty law that prevents members from discussing the information outside of Executive Session, but it isn't really a good idea. There was further discussion regarding competitive matters, including real estate issues, and the appropriate way to discuss and act on them in the public forum. Carls went on to discuss the Public Information Act and told the Board that everything the Board writes down is considered to be a public record, except those that are exempted. She discussed Economic Development documents and how they are addressed in the Public Information Act. She explained that if the Board would like to withhold information, the Board would have to get permission from the Attorney General to do so. The act covers paper, electronic e-mails, and maps. She told them that we are not required to generate statistics or data in response to a request. Carls also discussed the State Conflict of Interest Laws. She explained the consanguinity chart and ownership interests that would be impacted by the Conflict of Interest Laws. She also discussed the ramifications of violations of the Act. Carls also told the Board that the City adopted an Ethics Ordinance last year. She discussed the provisions of the Ordinance and how the Board members are impacted by those provisions. There was discussion regarding whether or not members of the board could step down from the dais and address the Board. She explained how a Board Member would place something on an agenda. She also discussed items that would and would not be considered a conflict of interest under the City's Ethics Ordinance. She went on to discuss the penalties for violating the City's Ethics Ordinance. Recessed at 3: 20 Reconvened at 3:25pm D. Overview of the general powers and duties of a corporation created under Section 4A of the Development Corporation Act of 1979 - Trish Carls City Attorney Trish Carls went over the materials in the notebooks provided to the Board. She specifically went through the Economic Development Handbook. She discussed how to adopt a 4A Minutes July 18, 2005 Georgetown Economic Development Corporation Page 2 of 5 Section 4A Tax. She told the Board that this board will use the proceeds that are collected from the sales tax that will go into effect October 1, 2005 to fund the activities of this 4A Board. She also told them that this Act will dictate how the proceeds collected can be spent. She clarified that the only proceeds that this Board will have access to will be the 1/8 cent sales tax approved by the voters. She told the Board that they would be governed by Section 4A of the Development Corporation Act of 1979. She went on to discuss the types of projects that this Board can fund, which are listed in Sections 4A(i), which allows industrial development corporations to undertake projects which the primary purpose is to provide business airports and Port -related facilities, and Section 2(11)(a) of the Development Corporation Act that allows funding for the land, buildings, equipment, facilities, expenditures, targeted infrastructure and improvements - that are for the creation or retention of primary jobs. She went on to highlight each type project that could be funded. She also discussed job training classes and certain infrastructure projects that are allowed under the Act that do not need to be conditioned upon the creation or retention of primary jobs but must be connected to Economic Development. She clarified that is an overlap of projects that the 4B Corporation can fund. She discussed the definition of "Primary job" and went over the sector codes included in this definition. There was a discussion as to whether or not the sales tax was the only funding mechanism for this Board and Carls clarified that it was. Carls also clarified that an Industrial Development Corporation is the same thing as an Economic Development Corporation. Discussion regarding the definition of a "project" and whether or not infrastructure improvements had to be made for a specific company or if they could be in place and used long term to accommodate Company "A" or "B" There was also discussion regarding whether or not the City would be able to purchase land through this Corporation to bank for future use or if it has to be specific to a project and whether or not land could be purchased to develop an industrial park to focus on companies that bring primary jobs. It was also clarified that 4A money could be utilized to improve infrastructure to a private industrial park. There was additional clarificationthat the City could not sell or lease the land to any company that does not create primary jobs or expand. Carls also told the Board that there are projects that can be undertaken outside the City limits with regional cooperation, and also infrastructure improvements can be made for new or expanded business development. There was additional discussion regarding the limitations for both the 4A and 4B and the types of projects that can be funded, as well as whether or not those projects could be funded either by the 4A, 4B or both. The Board went on to discuss what types of projects would need the approval of the voters. They also talked about the limitations of the City's current 4B Corporation because of the ballot language that was approved by the voters, as well as the process that would be necessary to change its current purpose. Minutes July 18, 2005 Georgetown Economic Development Corporation Page 3 of 5 Carls clarified that the Board could recommend the issuance of debt and that if Bonds were issued they could be paid with the tax proceeds. She also told the Board sports venue facilities could be funded with the permission of the voters. Carls told the Board that a "cost" is defined very broadly in the Act and discussed specific types of costs that would be covered under the Act. She also told them that costs that support the activities of the board are allowable, including administrative expenses. She also discussed term limits and told the Board that the term limit recommendations would be discussed when the Board works on its Bylaws and that Council would need to approve the term limits. She also discussed the powers and duties of the 4A Board and that everything it recommends would have to be approved by the Council. She also told the Board that it cannot simply provide gifts or sales tax proceeds and there must be a Performance Agreement that at a minimum must contain the provisions outlined on Page 28 of the Economic Development Handbook. There was additional discussion by the Board regarding the need for contracts and performance agreements. Carls told the Board that the Development Corporation Act was created in 1979 and has been amended extensively since its adoption and gave the Board an overview of recent legislative changes regarding 4A and 4B Corporations and answered questions from the Board as they related to the changes. The Board had additional discussion regarding how Texas measures up competitively with other states. E. Discussion regarding future bylaws and other administrative tasks for the Georgetown Economic Development Corporation--Micki Rundell, Director of Finance and Administration Rundell told the Board that the GEDCO is a function of the City, and that the 1/8 cent sales tax will take effect October 1, 2005 and the first funds will be collected in December 2005. She told the Board that the City has to approve any debt issuance and that there will be an mterlocal agreement that will outline the relationship between the City Staff and the Board. She also told them that there will be a cost arrangement She explained that the GTEC's Interlocal Agreement includes administrative costs, engineering costs, and legal expenses. Rundell has provided examples of by-laws for the Board to review. She explained some of the provisions that are included in the GTEC By-laws, and told the Board that she hoped to have a draft of the Bylaws to the Board within the next month or two. There was brief discussion regarding content of by-laws and that they will ultimately also be approved by Council. Rundell told the Board that it will also be approving a GEDCO Budget for the first year through September 2006. There was discussion regarding scheduling thenext meeting and that the GEDCO Budget would probably be approved in November or December. Brief discussion regarding the things that will need to be placed in the Bylaws. Minutes July 18, 2005 Georgetown Economic Development Corporation Page 4 of 5 There was discussion regarding the procedure for issuing bonds and whether or not Revenue Bonds could be issued by the GEDCO Board with Council approval. Rundell clarified that all bond requirements have to be met before additional income streams could be spent on anything else. She told the Board that when Bonds are issued, the City would purchase the bonds on behalf of the board and pledge the collateral through an interlocal agreement. She said this process saves the City a tremendous amount of money and that it is much more expeditious and cost effective. The Board discussed the timetable for issuing bonds and the process for doing so, and Runde11 talked about Bond Reimbursement Resolutions and how they work as a cash management financial tool. She went on to let the Board know that they would need to include financial policies in the Bylaws, including the contingency requirements of the Board. Citizen Comments G. Set date for next Corporation meeting Discussion regarding the scheduling of the next meeting, future meeting schedules, the process by which projects will come to the Board, meeting procedures, citizen input, etc. There was further clarification and discussion regarding the decisions of the 4A Corporation being recommendations to the City Council who has the final decision making authority for projects funded by the 4A Corporation. The next meeting was tentatively scheduled for September 19, 2005 at 2:OOpm Attest: Shirle ° , �`-puty City Secretary Adjourned at 4:45pm Farley Snell, Secretary Minutes July 18, 2005 Georgetown Economic Development Corporation Page 5 of 5