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Home My WebLink AboutAgenda_GEDCO_06.19.2017Notice of Meeting for the Georgetown Economic Dev elopment Corporation and the Gov erning Body of the City of Georgetown June 19, 2017 at 4:00 PM at the City Council Chambers, located at 101 E. 7th Street, Georgetown, TX 78626 The City o f G eo rgeto wn is committed to comp lianc e with the Americans with Dis abilities Ac t (ADA). If yo u req uire as s is tanc e in participating at a p ublic meeting d ue to a disability, as d efined und er the ADA, reas onab le as s is tance, ad ap tatio ns , or acc o mmo d ations will b e provid ed up o n req uest. P leas e c o ntact the City Sec retary's Office, at leas t three (3) days prior to the sc hed uled meeting d ate, at (512) 930-3652 o r City Hall at 113 Eas t 8th Street fo r add itional info rmation; TTY us ers ro ute through Relay Texas at 711. Regular Session (This Regular S es s io n may, at any time, b e rec es s ed to convene an Exec utive S es s io n fo r any p urpose authorized b y the Op en Meetings Act, Texas Go vernment Co d e 551.) A Co nsideration and approval of the minutes fo r Georgetown Ec o nomic Develo p ment Co rp o ration for the Regular Meeting held Mo nday, May 14, 2017--Bill Mateja, Sec retary B Dis cus s ion and pos s ible actio n to ad o pt the FY2018 proposed GEDCO bud get and set a d ate fo r the pub lic hearing on the p ro p o s ed bud get. Leigh Wallac e, Financ e Director, COG, F inance Manager, GEDCO C Co nsideration of the May 31, 2017 financ ial report. Leigh Wallace, Financ e Manager, GEDCO, Financ e Directo r, COG D Dis cus s ion and pos s ible actio n regarding the Staff Rep o rt —David Morgan, C ity Manager -P erformance Agreement Report -Rep o rt from Planning -Other Pro jec ts E Actio n o ut o f Exec utive Session. Executiv e Session In compliance with the Op en Meetings Act, C hapter 551, Go vernment Code, Vernon's Texas Codes, Annotated, the items lis ted below will be d is c us s ed in closed s es s io n and are s ubjec t to actio n in the regular s es s io n. F Sec. 551.071: CONSULTATION WITH ATTORNEY Co nsultation with attorney regarding legal is s ues related to agenda items and other matters in whic h (1) when the go vernmental body seeks the advic e o f its attorney ab o ut: (A) p ending o r c o ntemp lated litigatio n; o r (B) a s ettlement o ffer; o r (2) o n a matter in which the d uty of the attorney to the go vernmental body under the Texas Dis ciplinary Rules o f P ro fes s io nal Cond uc t o f the S tate Bar o f Texas clearly c o nflic ts with this chap ter - Charlie McNabb, C ity Attorney G Section 551.072. DELIBERATIONREGARDING REAL PROPERTY Dis cus s ion and pos s ible actio n to d elib erate the p urc hase,exc hange, leas e or value of real property for purp o s es authorized b y the Development C o rp o ration Ac t which disc us s io n in o p en s es s io n would have a detrimental effect on negotiations with third pers ons . Page 1 of 36 H Section 551.087. DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS. Delib eratio n regarding commerc ial or financ ial info rmation that the corp o ration has rec eived fro m a bus iness pros pec t that the Georgetown Ec ono mic Develo p ment Co rp oratio n s eeks to have loc ate, stay, or exp and in or near the territory of the City o f Georgetown and with whic h the C o rp o ration is cond uc ting ec o nomic d evelopment nego tiatio ns; and/o r deliberatio n regarding the o ffer of a financ ial or o ther incentive to a bus iness p ro s p ect that the C o rp o ration seeks to have lo cate, s tay, o r exp and in o r near the territory o f the City o f Georgetown. CERTIFICATE OF POSTING I, Shelley No wling, C ity S ecretary fo r the C ity of Geo rgeto wn, Texas , d o hereby c ertify that this Notice of Meeting was p o s ted at City Hall, 113 E. 8th Street, a p lace read ily acc es s ible to the general p ublic at all times , on the ______ d ay o f __________________, 2017, at __________, and remained so p o s ted fo r at leas t 72 c o ntinuo us ho urs p receding the sc heduled time o f s aid meeting. ____________________________________ S helley No wling, City Sec retary Page 2 of 36 City of Georgetown, Texas Georgetown Economic Development Corporation June 19, 2017 SUBJECT: Cons id eration and ap p ro val o f the minutes for Geo rgeto wn Econo mic Development Corporatio n fo r the Regular Meeting held Mond ay, May 14, 2017--Bill Mateja, S ecretary ITEM SUMMARY: ATTACHMENTS: 1. Draft Minutes FINANCIAL IMPACT: None SUBMITTED BY: Bill Mateja, C o rp o rate Sec retary ATTACHMENTS: Description Type Minutes Cover Memo Page 3 of 36 GEDCO Minutes April 17, 2017 Page 1 of 2 Minutes of the Meeting of the Georgetown Economic Development Corporation and the Governing Body of the City of Georgetown, Texas May 15, 2017 The Georgetown Economic Development Corporation of the City of Georgetown, Texas, met on Monday, May 15, 2017. Members Present: Jeff Parker, Steve Fought, Kevin Kelly, , Bill Mateja, Steve Klein; Hugh Brown Members Absent: Keith Brainard Staff Present: David Morgan, City Manager/General Manager; Wayne Reed, Assistant City Manager; Michaela Dollar, Director of Economic Development; Conchita Gusman, Economic Development Program Manager; Laurie Brewer, Assistant City Manager; Leah Wallace, Finance Director/Finance Manager; Debbie Mitchell, Senior Accountant; Paul Diaz, Budget Analyst; Nathan Parras, Budget Analyst; Tina Dunbar, Marketing Coordinator MINUTES Call to Order at 4:00 pm Legislative Regular Session A Consideration and approval of the minutes for Georgetown Economic Development Corporation for the Regular Meeting held Monday, April 17, 2017—Bill Mateja, Secretary Motion by Klein, second by Kelly to approve the May 15, 2017 Minutes. (Approved 6-0) B Consideration of the April 2017 financial report --Leigh Wallace, Finance Manager, GEDCO, Finance Director, COG Wallace presented the report and answered questions from the board. C Presentation of Sales Tax for FY2017 Year End and FY2018 Budget - Paul Diaz, Budget Analyst Diaz and Parras presented the sales tax report. Diaz detailed the sales tax growth and projections. Diaz and Morgan answered questions from the board. D Discussion and possible action regarding the Staff Report —David Morgan, City Manager Gusman presented the performance agreement report and highlighted Grape Creek Vineyards. Morgan presented the planning update. Dollar report on the Target Industry Analysis and provided information on the upcoming focus group meetings to be held by the consultant. Dollar and Morgan answered questions from the board. Page 4 of 36 GEDCO Minutes April 17, 2017 Page 2 of 2 E Action out of Executive Session. No executive session. Adjourn at 4:52 p.m. ATTEST: ______________________________ ___________________________________ Bill Mateja, Corporate Secretary Jeff Parker, President Page 5 of 36 City of Georgetown, Texas Georgetown Economic Development Corporation June 19, 2017 SUBJECT: Disc ussion and p o s s ib le ac tion to adopt the F Y2018 p ro p o s ed GEDCO budget and s et a date for the p ublic hearing o n the proposed b udget. Leigh Wallace, F inance Direc tor, C OG, Financ e Manager, GEDCO ITEM SUMMARY: The p ro p o s ed FY 2018 GEDCO bud get includes p ro jects identified fo r fund ing along with ad ministrative costs and to tal funding req uirements. The p ro p o s ed FY 2018 bud get identifies revenues and spec ific p ro jects planned for the up coming year, as well as , costs as s o c iated with past debt issues . • Proposed F Y 2018 Budget Presentatio n • Proposed F Y 2018 Budget Fund Sc hedule • Proposed F Y 2018 Revenue Detail • Proposed F Y 2018 Exp enditure Detail • Proposed F Y 2018 Ad ministrative Co ntrac t SP ECIAL CO NS IDERAT IONS : Counc il is s cheduled to take actio n o n all c omponents of the F Y 2018 b udget in S ep tember 2017. FINANCIAL IMPACT: none SUBMITTED BY: Leigh Wallace, Financ e Directo r, COG, Financ e Manager, GEDCO ATTACHMENTS: Description Type Budget 2018 Packet Cover Memo Page 6 of 36 Meeting Date: June 19, 2017 Item No. __________ GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION AGENDA ITEM COVER SHEET SUBJECT: Discussion and possible action to recommend the FY2018 proposed GEDCO budget. Leigh Wallace, Finance Director, COG, Finance Manager, GEDCO ITEM SUMMARY: The proposed FY 2018 GEDCO budget includes projects identified for funding along with administrative costs and total funding requirements. The proposed FY 2018 budget identifies revenues and specific projects planned for the upcoming year, as well as, costs associated with past debt issues. • Proposed FY 2018 Budget Presentation • Proposed FY 2018 Budget Fund Schedule • Proposed FY 2018 Revenue Detail • Proposed FY 2018 Expenditure Detail • Proposed FY 2018 Administrative Contract SPECIAL CONSIDERATIONS: Council is scheduled to take action on all components of the FY 2018 budget in September 2017. SUBMITTED BY: Leigh Wallace Finance Director, COG Finance Manager, GTEC Page 7 of 36 FY2018 Annual Budget Georgetown Economic Development Corporation FY2018 Draft Budget 6-19-17 Page 8 of 36 FY2018 Annual Budget GEDCO Budget Process •GEDCO -“component unit” of the City –GEDCO Board recommends budget to City Council –City Council adopts in August/September •Guided by GEDCO Fiscal and Budgetary Policy •GEDCO projects in collaboration with Economic Development Department Page 9 of 36 FY2018 Annual Budget GEDCO Budget Process •GEDCO budget developed annually –Includes known economic development projects and agreements –Debt service –from previously issued debt for projects –Administrative costs •Staff, overhead, project management –Revenue estimates for upcoming year Page 10 of 36 FY2018 Annual Budget Revenue •Sales tax increase of 7.0% for 2017 Projected Year -end and 4.0% for 2018 Budget •Grape Creek Lease Revenue ends Feb. 2018 •Repayments from performance contracts •No new bond proceeds in 2018 Page 11 of 36 FY2018 Annual Budget Expenditures •Dispersol $60K •Catalyst $36K •Debt Service Payments –$205K for previously issued debt on Rivery project •Repayment of WW Loan $116.6K •Operations Expenses $101K •Administrative Contract $221K •Special Services $20K •Funding available for undetermined projects –$6.5M Page 12 of 36 FY2018 Annual Budget Administrative Contract 2018 •Simple methodology calculating percent of total costs based upon estimate of staff support –Economic Development Department –Legal Department •Increase of approximately 11% over last year’s cost •GEDCO Budget: $221,328 Page 13 of 36 420 - GEDCO FY2016 Actual FY2017 Budget FY2017 Projected FY2018 Base FY2018 Changes FY2018 Budget Beginning Fund Balance 5,378,900 5,015,684 5,068,518 5,902,863 - 5,902,863 Revenues FY2016 Actual FY2017 Budget FY2017 Projected FY2018 Base FY2018 Changes FY2018 Budget Sales Tax 1,464,844 1,468,750 1,581,250 1,643,750 1,643,750 Interest 27,882 10,400 23,400 25,400 25,400 Other 103,968 108,321 108,321 85,100 - 85,100 Bond Proceeds 3,118,747 - - - Grand Total 4,715,441 1,587,471 1,712,971 1,754,250 - 1,754,250 Expenses FY2016 Actual FY2017 Budget FY2017 Projected FY2018 Base FY2018 Changes FY2018 Budget Eco Devo Proj 4,691,000 5,610,322 253,000 6,574,258 - 6,574,258 Operations 212,124 100,621 100,602 101,408 20,000 121,408 Transfer Out 106,695 115,839 115,839 116,613 - 116,613 Debt Service 18,224 211,463 211,463 212,569 - 212,569 Allocations - 197,722 197,722 221,328 - 221,328 Grand Total 5,028,043 6,235,967 878,626 7,226,176 20,000 7,246,176 FY2016 Actual FY2017 Budget FY2017 Projected FY2018 Base FY2018 Changes FY2018 Budget Ending Fund Balance 5,066,298 367,188 5,902,863 430,937 (20,000) 410,937 CAFR Adjustment 2,220 - - - - - Contingency Reserves 366,211 367,188 367,188 410,938 - 410,938 Available Fund Balance 4,702,307 - 5,535,675 20,000 (20,000) (0) Page 14 of 36 Row Labels GL Mapping FY2014 Actual FY2015 Actual FY2016 Actual FY2017 Adopted Budget FY2017 YTD FY2017 Projected FY2018 Base Budget FY2018 Departmental Requests FY2018 Departmental ReOrg FY2018 Changes FY2018 Budget 420-4-0000-49-108 TRANSFER IN, UTILITIES Other - - - - - - - 420-4-0901-40-105 SALES TAX Sales Tax 1,278,513 1,311,553 1,464,844 1,468,750 400,504 1,581,250 1,643,750 1,643,750 420-4-0901-42-100 ALLOCATED INTEREST Interest (291) 427 (220) 400 (2,723) 400 400 400 420-4-0901-42-110 DIRECT INTEREST Interest 4,499 10,487 23,548 10,000 9,410 18,000 20,000 20,000 420-4-0901-42-111 INTEREST - 2016 BONDS Interest - - 4,554 - 2,906 5,000 5,000 5,000 420-4-0901-44-105 MISCELLANEOUS REVENUE Other 119,214 56,750 59,968 60,321 10,302 60,321 61,100 61,100 420-4-0901-45-102 LEASE REVENUE Other 48,000 46,028 44,000 48,000 20,000 48,000 24,000 24,000 420-4-0901-47-100 BOND PROCEEDS Bond Proceeds - - 2,977,185 - - - - 420-4-0901-47-104 PREMIUM ON BOND ISSUANC Bond Proceeds - - - - - - 420-4-0901-47-105 PREMIUM ON BOND ISSUANC Bond Proceeds - - 141,562 - - - - 1,449,935 1,425,245 4,715,441 1,587,471 440,399 1,712,971 1,754,250 - - - 1,754,250 Page 15 of 36 Row Labels GL Mapping Transfer Operating/Non-Operating FY2014 Actual FY2015 Actual FY2016 Actual FY2017 Adopted Budget FY2017 YTD FY2017 Projected FY2018 Base Budget FY2018 Departmental Requests FY2018 Departmental ReOrg FY2018 Changes FY2018 Budget 420-9-0980-90-001 ECONOMIC DEVEL PROJECTS Eco Devo Proj - - - 5,200,322 - - 6,478,258 - 6,478,258 420-5-0902-51-950 JOINT SERVICES ALLOCATION Allocations 540-4-0001-48-130 GEDCO ADMIN CONTRACT REV - - - 197,722 131,816 197,722 221,328 - 221,328 420-6-0901-60-001 TRANSFER OUT-INTEREST Transfer Out 98,596 99,783 106,695 115,839 66,679 115,839 116,613 - 116,613 420-6-0901-60-200 INTEREST EXPENSE Debt Service - - - 111,463 - 111,463 87,569 - 87,569 420-6-0901-60-100 PRINCIPAL REDUCTION Debt Service - - - 100,000 - 100,000 125,000 - 125,000 420-9-0980-90-012 TEXAS LIFE SCIENCES Eco Devo Proj 150,000 150,000 100,000 100,000 - - - - 420-9-0980-90-0298 AVALANCHE Eco Devo Proj 100,000 100,000 - - 420-5-0902-51-350 PROMO & MKTING PROGRAMS Operations 32,671 77,637 63,296 81,000 56,004 81,000 81,000 - 81,000 420-9-0980-90-028 RENTSCHLER BREWING Eco Devo Proj 70,000 70,000 70,000 - - 420-9-0980-90-026 DISPERSOL TECHNOLOGIES, LLC Eco Devo Proj - 50,000 20,000 60,000 10,000 60,000 60,000 - 60,000 420-9-0980-90-011 RADIX Eco Devo Proj (36,000) - - 50,000 - - - - - 420-9-0980-90-027 CATALYST COMMERCIAL, INC Eco Devo Proj - - 71,000 24,000 14,427 23,000 36,000 - 36,000 420-5-0902-51-340 CONTRACTS - OTHER Operations 7,409 9,750 11,429 10,321 10,302 10,302 11,058 - 11,058 420-5-0902-51-330 SPECIAL SERVICES Operations 16,149 2,500 - 7,500 33 7,500 7,500 20,000 20,000 27,500 420-9-0980-90-025 TASUS Eco Devo Proj - - - 6,000 - - - - - 420-5-0902-51-630 TRAVEL & TRAINING Operations 1,863 376 730 1,500 - 1,500 1,500 - 1,500 420-5-0902-51-110 OFFICE SUPPLIES Operations - - 2 300 140 300 300 - 300 420-5-0000-51-993 TRANSFER OUT - ISF Transfer Out - - - - - - - 420-5-0000-51-998 TRANSFER OUT - UTILITIES Transfer Out - - - - - - - 420-5-0902-51-130 ADS, NOTICES, RECORDING FEES Operations - - 56 - - 50 - 50 420-5-0902-51-310 CONTRACT & LEASES Operations 83,100 192,108 136,611 - - - - - 420-5-0902-51-333 LEGAL FEES Operations - - - - - - - - 420-5-0902-51-430 UTILITIES Operations - - - - - - - - 420-5-0902-51-900 DEPRECIATION Operations - - - - - - - - 420-5-0902-51-970 GENERAL FUND ALLOCATION Allocations - - - - - - - - 420-6-0901-60-002 TRANSFER OUT, JNT SVCS Transfer Out - - - - - - - 420-6-0901-60-003 TRANSFER OUT, UTILITIES Transfer Out - - - - - - - 420-6-0901-60-300 BOND ISSUANCE COSTS Debt Service - - 18,224 - (114) - - - 420-9-0902-90-000 CAPITAL EXPENSES Eco Devo Proj - - - - - - - 420-9-0980-90-002 LOADING DOCK Eco Devo Proj - - - - - - - 420-9-0980-90-003 SMITH BRANCH W.FORK INT Eco Devo Proj - - - - - - - 420-9-0980-90-004 VISTA SOLUTIONS Eco Devo Proj - - - - - - - 420-9-0980-90-005 ORTHOPEUTICS, LC Eco Devo Proj - - - - - - - 420-9-0980-90-006 LOADING DOCK Eco Devo Proj - - - - - - - 420-9-0980-90-007 TEXAS OUTDOOR POWER EQUIP Eco Devo Proj - - - - - - - 420-9-0980-90-008 AIRBORN Eco Devo Proj - - - - - - - 420-9-0980-90-009 OLD FIRE 1 TRUCK BAYS REDEV Eco Devo Proj - - - - - - - 420-9-0980-90-010 RINGDALE Eco Devo Proj - - - - - - - 420-9-0980-90-013 LONE STAR CIRCLE OF CARE Eco Devo Proj - - - - - - - 420-9-0980-90-014 GEORGETOWN WINERY Eco Devo Proj - - - - - - - 420-9-0980-90-015 GRAPE CREEK WINERY Eco Devo Proj 3,000 - - - - - - 420-9-0980-90-016 CITY OFFICE BUILDING PURCHASE Eco Devo Proj - - - - - - - 420-9-0980-90-017 TLCC: DIFUSION TECH Eco Devo Proj - - - - - - - 420-9-0980-90-018 GEORGETOWN ISD Eco Devo Proj 29,910 69,967 - - - - - 420-9-0980-90-019 RIVERY Eco Devo Proj - - 4,500,000 - - - - 420-9-0980-90-020 STI Eco Devo Proj - - - - - - - 420-9-0980-90-021 SPECULATIVE COMMERCIAL BLDG Eco Devo Proj - - - - - - - 420-9-0980-90-022 RADIATION DETECTION COMPANY Eco Devo Proj - - - - - - - 420-9-0980-90-023 FREEPORT EXEMPTION STUDY Eco Devo Proj - - - - - - - 420-9-0980-90-024 MOLECULAR TEMPLATES INC Eco Devo Proj - 69,000 - - - - - 420-6-9990-60-300 BOND ISSUANCE COST Debt Service - - - - - - 386,698 721,122 5,028,043 6,235,967 359,287 878,626 7,226,176 20,000 - 20,000 7,246,176 Page 16 of 36 1 ADMINISTRATIVE SERVICES CONTRACT BETWEEN THE CITY OF GEORGETOWN, TEXAS AND THE GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION STATE OF TEXAS § COUNTY OF WILLIAMSON § THIS CONTRACT FOR SERVICES ("Contract") is made by and between the City of Georgetown, 113 East 8th Street, Georgetown, Texas 78626, hereinafter called "City" and the Georgetown Economic Development Corporation, having its principal business address at 113 East 8th Street, Georgetown, Texas 78626, hereinafter called "Corporation" for the purpose of contracting for administrative services of the staff and employees of the City. WITNESSETH WHEREAS, on May 7, 2005 the City established the Corporation pursuant to Secion 4A of the Economic Development Corporation Act of 1979, as amended (Vernon's Rev. Civ. Stat. Ann., Article 5190.6. § 4(A), as amended) (the “Act”) to promote and develop new and expanded business enterprises on behalf of the City of Georgetown. WHEREAS, on June 21, 2005 the City Council approved the Articles of Incorporation for the Corporation. WHEREAS, on December 13, 2005 the Board of Directors of the Corporation approved the Bylaws of the Corporation. WHEREAS, on January 10, 2006 the City Councl approved the Bylaws of the Corporation. WHEREAS, Section 3.08 of said Bylaws provide that the City and the Corporation shall execute an administrative services contract for the services to be provided to the Corporation by the City by the General Manager, Finance Director, City Attorney, and other City personnel, services or functions, pursuant to. Section 2(4) of the Act, which authorizes the Corporation to pay administrative and legal expenses which are necessary or incidental to placing a project into operation; and WHEREAS. the City and Corporation desire to contract for administrative services described as follows: the services provided by the City Manager, Finance Director, the staff and employees of the City's Finance and Administration Division, and the Economic Development Department, as well as, the City Attorney's Office. AGREEMENT NOW, THEREFORE, the City and Corporation, in consideration of the mutual covenants and agreements herein contained, do hereby mutually agree as follows: Page 17 of 36 2 ARTICLE I SCOPE OF SERVICES TO BE PROVIDED BY CITY The City will furnish items and perform those services for fulfillment of the Contract as identified in the Bylaws of the Corporation. ARTICLE 2 CONTRACT PERIOD This Contract shall begin at the start of business on October 1, 2017 and terminate at the close of business on September 30, 2018 unless extended by written supplemental agreement duly executed by the Corporation and the City prior to the date of termination. Any work performed or cost incurred prior to the date of this contract and after estabilishment of the Corporation, will be reimbursemented as in the terms of the Contract. ARTICLE 3 CONTRACT PRICE Corporation shall pay City for the services contemplated herein as follows: 1. For all administrative and legal services, the monthly flat fee of $18,444 as identified in Attachment A. External third party legal services will be billed separately as needed. ARTICLE 4 PAYMENT PROCEDURES The Corporation shall pay the City $18,444 per month on the first of each month, begininng on October 1, 2017, during the term of this Agreement. In addition, the Corporation shall pay for all external legal or other professional services invoices pursuant to the Article 3 within thirty (30) days of receipt. ARTICLE 5 OWNERSHIP OF DOCUMENTS All data, basic sketches, charts, calculations, plans, specifications, and other documents created or collected under the terms of this Contract are the exclusive property of the Corporation and shall be furnished to the Corporation upon request. Release of information to the public shall be subject to and in conformance with the Texas Public Information Act. ARTICLE 6 SUSPENSION As authorized by Section 3.08 of the Corporation’s Bylaws, the City may suspend services under this Contract without committing a breach of its terms upon the occurrence of any of the following: (1) The City Manager does not approve of the utilization of any or all services; Page 18 of 36 3 (2) The City Manager feels the City is not receiving reasonable compensation for any or all services; or (3) The performance of a service materially interferes with the other duties of the affected City personnel. ARTICLE 7 TERMINATION The Contract may be terminated before the stated termination date by any of the following conditions: (1) By mutual written agreement and consent; or (2) By either party, upon the failure of the other party to fulfill its obligations as set forth herein; or (3) By either party for reasons of its own and without the consent of the other party, provided that at least thirty (30) days written notice is provided to the other party. The termination of this Contract and payment of an amount in settlement as prescribed in Article 3, above shall extinguish all rights, duties, and obligations of the City and the Corporation under this Contract. ARTICLE 8 INDEMINIFICATION Corporation's Indemnification. The Corporation agrees, to the extent permitted by law, to save harmless the City and its agents, officers and employees from all claims and liability due. to activities of itself, its agents, officers, or employees, performed under this Contract and which are caused by or result from error, omission, or negligent act of the Corporation or of the Corporation’s agents, officers, and employees. The Corporation shall also save harmless the City and its agents, officers, and employees from any and all expense, including, but not limited to, attorney fees which may be incurred by the City in litigation or otherwise resisting said claim or liabilities which may be imposed on the City as a result of such activities by the Corporation, its agents, officers, or employees. This indemnity shall not include claims based upon or arising out of the willful misconduct of City, its agents, officers or employees. Further, this indemnity shall not require payment of a claim by City or its agents, officers or employees as a condition precedent to City's recovery under this provision. City's Indemnification. The City agrees, to the extent permitted by law, to save harmless the Corporation and its agents, officers, and employees from all claims and liability due to activities of itself, its agents, officers, or employees, performed under this Contract and which are caused by or result from error, omission, or negligent act of the City or the City’s agents, officers, or employees. The City shall also save harmless the Corporation from any and all expense, including, but not limited to, attorney fees which my be incurred by the Corporation in litigation or otherwise resisting said claim or liabilities which may be imposed on the Corporation as a result of such activities by the City, its agents, officers, or employees. This indemnity shall not include claims based upon or arising out of the willful misconduct of Corporation, its agents, officers or employees. Further, this Page 19 of 36 4 indemnity shall not require payment of a claim by Corporation or its officers or employees as a condition precedent to Corporation's recovery under this provision. ARTICLE 9 SEVERABILITY In the event any one or more of the provisions contained in this Contract shall for any reason, be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision thereof and this Contract shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein. ARTICLE 10 PRIOR CONTRACTS SUPERSEDED This Contract constitutes the sole and only agreement of the parties hereto and supersedes any prior understandings or written or oral contracts between the parties respecting the subject matter defined herein. ARTICLE 11 NOTICES All notices to either party by the other required under this Contract shall be personally delivered or mailed to such party at the following respective addresses: For City: City Manager City of Georgetown P.O. Box 409 Georgetown, Texas 78626 For Corporation: General Manager Georgetown Economic Development Corporation P.O. Box 409 Georgetown, Texas 78626 Page 20 of 36 5 ARTICLE 12 SIGNATORY WARRANTY The undersigned signatory or signatories for the parties hereby represent and warrant that the signatory is an officer of the organization for which be or she has executed this Contract and that he or she has full and complete authority to enter into this Contract on behalf of the firm. The above-stated representations and warranties arc made for the purpose of inducing the other party to enter into this Contract. IN WITNESS HEREOF, the City and the Corporation have executed these presents in duplicate on this the ____ day of_________, 2017. GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION By: Printed Name: Title: ATTEST: By: Printed Name: Title: CITY OF GEORGETOWN By: Printed Name: Dale Ross Title: Mayor ATTEST: By: Printed Name: Shelley Nowling Title: City Secretary APPROVED AS TO FORM: Charles McNabb City Attorney Page 21 of 36 6 Attachment A GEDCO Administrative Allocation 2018 Monthly Economic Development and Legal Departments 221,328 18,444 Total 221,328 18,444 Page 22 of 36 City of Georgetown, Texas Georgetown Economic Development Corporation June 19, 2017 SUBJECT: Cons id eration o f the May 31, 2017 financ ial rep o rt. Leigh Wallac e, Financ e Manager, GEDCO, Financ e Direc tor, COG ITEM SUMMARY: See Attachments FINANCIAL IMPACT: None SUBMITTED BY: Leigh Wallace, Financ e Manager, GEDCO F inanc e Direc tor, COG ATTACHMENTS: Description Type Monthly Financial Report Cover Memo Page 23 of 36 GEDCO Board Meeting Date: June 19, 2017 Item No. __________ GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION AGENDA ITEM COVER SHEET _________________________________________________________________ SUBJECT: Consideration of the May 31, 2017 financial report. Leigh Wallace, Finance Manager, GEDCO, Finance Director, COG. _________________________________________________________________ ITEM SUMMARY: The corporate bylaws require the Finance Manager to present the monthly financial reports to the Board. Included in these reports will be: • Financial reports • Sales Tax revenues • Monthly expenditures • Any other relevant financial information Sales tax revenue is two months in arrears. Included in this report is the sales tax revenue collected in April for sales in February. Payments made to vendors in the month of May are also included. ATTACHMENTS: Monthly Financial Reports Sales Tax History SUBMITTED BY: Leigh Wallace Finance Manager, GEDCO Finance Director, COG Page 24 of 36 APPROVED BUDGET CURRENT PERIOD YEAR TO DATE (W/ENCUMB) YEAR-END PROJECTION BEGINNING FUND BALALNCE 5,015,684 5,068,518 Revenue OPERATING REVENUES Sales Tax 1,468,750 137,566 757,812 1,581,250 Interest 10,400 4,011 24,633 23,400 Miscellaneous Revenue 60,321 - 60,302 60,321 Lease Revenue (Grape Creek)48,000 4,000 36,000 48,000 OPERATING REVENUES TOTAL 1,587,471 145,577 878,748 1,712,971 OPERATING EXPENDITURES Debt Service 115,839 - 66,679 115,839 Principal Reduction 100,000 - - 100,000 Interest Expense 111,463 - - 111,463 Joint Services Allocation 197,722 16,477 131,816 197,722 Supplies 300 - 140 300 Special Services 7,500 - 33 7,500 Travel & Training 1,500 - - 1,500 Promotional & Marketing Program 81,000 - 56,004 81,000 Miscellaneous Expense 10,321 - 10,302 10,302 Bond Issuance Costs - - (114) OPERATING EXPENDITURES Total 625,645 16,477 264,861 625,626 TOTAL NET OPERATIONS 961,826 129,100 613,887 1,087,345 NON-OPERATING EXPENDITURES Catalyst 24,000 8,500 14,427 23,000 DisperSol 60,000 - 10,000 60,000 Economic Development Projects -Undetermined 5,200,322 - - - Radix 50,000 - - - Tasus 6,000 - - - Texas Life Sciences 100,000 - - - Rentschler Brewing LLC 70,000 - 70,000 70,000 Avalanche Consulting, Inc 100,000 - - 100,000 NON-OPERATING EXPENDITURES Total 5,610,322 8,500 94,427 253,000 EXCESS (DEFICIENCY) OF TOTAL REVENUE OVER TOTAL REQUIREMENTS (4,648,496) 120,600 519,460 834,345 ENDING FUND BALANCE 367,188 5,902,863 Georgetown Economic Development Corporation Fund Year End Projection to Approved as of May 2017 Page 25 of 36 As of May 31, 2017 Georgetown Economic Development Corporation Sales Tax History Variance % Var. MONTH [a]2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 To FY 15 To FY 15 October 70,264$ 86,324$ 91,863$ 98,094$ 106,050$ 114,748$ 8,698$ 8.20% November 74,472 82,083 99,552 102,891 112,766 125,214 12,448$ 11.04% December 111,968 117,582 134,682 143,774 148,200 160,542 12,342$ 8.33% January 73,177 82,714 89,357 87,695 96,563 110,006 13,443$ 13.92% February 72,946 77,890 86,901 89,107 108,117 105,556 (2,561)$ -2.37% March 105,822 115,564 114,355 123,951 133,492 137,301 3,809$ 2.85% April 81,362 84,420 106,002 102,671 108,977 117,261 8,284$ 7.60% May 80,919 94,412 112,572 95,699 120,418 June 99,664 114,132 123,306 130,589 142,767 July 89,969 92,765 102,435 108,994 119,534 August 85,792 92,735 98,015 102,888 132,582 September 88,334 125,197 119,473 125,201 135,378 Total 1,034,688$ 1,165,819$ 1,278,513$ 1,311,554$ 1,464,844$ 870,628$ YTD 445,274 478,170 531,297 547,198 595,349 630,666 35,317 5.93% Notes: [a]Sales tax revenue from the State Comptroller is received two months in arrears. Sales tax for December is actually received in February $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 Re v e n u e s Sales Tax 3 Year Trend 2014-15 2015-16 2016-17 Page 26 of 36 • Economic Development Projects: - Catalyst Commerical, Inc. Page 27 of 36 City of Georgetown, Texas Georgetown Economic Development Corporation June 19, 2017 SUBJECT: Disc ussion and p o s s ib le ac tion regard ing the S taff Report —David Morgan, City Manager -P erformance Agreement Report -Report from P lanning -Other Pro jec ts ITEM SUMMARY: The GEDCO Board has req uested that staff p ro vide a projec t p ro gress and s tatus report at eac h meeting o n all of the ac tive p ro jects disc ussed b y the Bo ard . FINANCIAL IMPACT: N/A SUBMITTED BY: David S. Morgan, C ity Manager ATTACHMENTS: Description Type Project Report Cover Memo planning Cover Memo Page 28 of 36 Name Description Start Date (Council Approved)End Date $ Encumbered $ Expended Citigroup Grant for wastewater infrastructure for construction of datacenter. 12/12/2006 12/31/2018 $ 1,300,000 $ 1,300,000 DisperSol Grant for job creation related to expansion of manufacturing facilities.10/16/2014 2/15/2019 250,000$ $ 80,000 Grape Creek Grant for reimbursement of Qualified Expenditures for the lease/purchase and future site improvements at 101 E. 7th Street and 614 Main Street for the operation of a winery on the Downtown Square. 8/23/2011 3/1/2018 280,000$ 280,000$ Grape Creek GEDCO purchase of building. GCV currently under lease/purchase agreement with right to exercise purchase at end of PA for $447K.8/23/2011 3/1/2018 447,000$ 447,000$ Lone Star Circle of Care Grant for Qualified Expenditures for future site improvements at 205 East University Avenue, Georgetown, Texas. Loan Agreement and Promissory Note have been executed. 6/28/2011 11/30/2017 387,000$ $ 387,000 Radiation Detection Corporation Grant for Qualified Expenditures and job creation related to the relocation of the corporate offices to Georgetown. 7/23/2013 12/31/2021 320,000$ 320,000$ Radix BioSolutions, Ltd. Provided grant to assist with the work and future plans of Radix BioSolutions at the TLCC. Radix paid back $47K on 3/15/15. Radix paid back $50K 3/10/16. Radix paid back $50K on 3/10/2017 .3/9/2010 3/31/2018 250,000$ $ 103,000 GEDCO - ACTIVE PERFORMANCE AGREEMENTS STATUS REPORT June 19, 2017 Over Page 29 of 36 Name Description Start Date (Council Approved)End Date $ Encumbered $ Expended GEDCO - ACTIVE PERFORMANCE AGREEMENTS STATUS REPORT June 19, 2017 TASUS Texas Corporation Provide a grant of $67,500 for job creation related to expansion of manufacturing facilities. 2/25/2014 5/31/2017 67,500$ -$ Rentch Brewery Provide financial assistance not to exceed $70K for infrastructure costs related to the expansion of their existing operation including upgraded electric transformer and upgraded waterlines to the facility.10/11/2016 3/1/2017 70,000$ $ 70,000 Page 30 of 36 To: Michaela Dollar, Director of Economic Development From: Sofia Nelson, Director of Planning Date: June 15, 2017 Re: Development Briefing- May 2017 Residential Building Permits:Residential Building Permits:Residential Building Permits:Residential Building Permits: 2016201620162016 Month Res. Permits Population JanJanJanJan 51 57,622 FebFebFebFeb 57 57,800 MarMarMarMar 59 57,879 AprAprAprApr 69 58,085 MayMayMayMay 37 58,204 JuneJuneJuneJune 58 58,337 JulyJulyJulyJuly 50 58,475 AugustAugustAugustAugust 61 58,636 SeptemberSeptemberSeptemberSeptember 63 58,723 October October October October 45 59,134 NovemberNovemberNovemberNovember 53 59,251 December December December December 60 59,394 2017201720172017 MonthMonthMonthMonth PermitsPermitsPermitsPermits PopulationPopulationPopulationPopulation JanJanJanJan 26 59,541 FebFebFebFeb 68 59,646 MarMarMarMar 57 59,770 AprAprAprApr 60 59,910 MayMayMayMay 102 59,971 Page 31 of 36 New Site Plans New Site Plans New Site Plans New Site Plans submitted insubmitted insubmitted insubmitted in MayMayMayMay: : : : • Mansions @ Georgetown II.- Mays Street Extension – 418 Multi-family units • Hydro Pro Solutions- 907 Rockmoor—1 story commercial building • Fountains @ Georgetown South Phase 2- 101 W. Cooperative Way—General Commercial/Medical Office • Randolph Brooks Federal Credit Union- 1209 W. University Page 32 of 36 City of Georgetown, Texas Georgetown Economic Development Corporation June 19, 2017 SUBJECT: Ac tion out of Exec utive S es s io n. ITEM SUMMARY: FINANCIAL IMPACT: TBD SUBMITTED BY: Charlie Mc Nab b , City Atto rney Page 33 of 36 City of Georgetown, Texas Georgetown Economic Development Corporation June 19, 2017 SUBJECT: Sec. 551.071: CONSULTATION WITH ATTORNEY Cons ultation with atto rney regard ing legal iss ues related to agend a items and o ther matters in which (1) when the go vernmental b o d y s eeks the advic e of its atto rney about: (A) p end ing or contemplated litigation; o r (B) a settlement offer; or (2) o n a matter in whic h the duty of the attorney to the governmental b o d y und er the Texas Dis c ip linary Rules o f Pro fes s ional C o nduct of the State Bar of Texas c learly conflicts with this c hapter - C harlie McNab b , City Atto rney ITEM SUMMARY: FINANCIAL IMPACT: N/A SUBMITTED BY: Charlie Mc Nab b , City Atto rney Page 34 of 36 City of Georgetown, Texas Georgetown Economic Development Corporation June 19, 2017 SUBJECT: Section 551.072. DELIBERATIONREGARDING REAL PROPERTY Disc ussion and p o s s ib le ac tion to deliberate the purchas e,exchange, leas e o r value o f real p ro p erty for p urposes autho rized by the Develo p ment Corporatio n Act whic h d is cus s ion in open session wo uld have a d etrimental effec t o n nego tiatio ns with third p ers o ns . ITEM SUMMARY: FINANCIAL IMPACT: n/a SUBMITTED BY: Charlie Mc Nab b , City Atto rney Page 35 of 36 City of Georgetown, Texas Georgetown Economic Development Corporation June 19, 2017 SUBJECT: Section 551.087. DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS. Deliberatio n regard ing c o mmercial o r financ ial informatio n that the c o rp o ratio n has received from a b usines s pros p ec t that the Geo rgeto wn Economic Development Corporation s eeks to have lo cate, s tay, o r expand in or near the territo ry o f the City o f Geo rgeto wn and with whic h the Corporatio n is c o nducting econo mic d evelo p ment negotiations ; and/o r d elib eration regard ing the o ffer o f a financial o r other inc entive to a bus iness pros pec t that the Co rp o ration s eeks to have loc ate, stay, o r expand in or near the territory of the City of Georgetown. ITEM SUMMARY: FINANCIAL IMPACT: N/A SUBMITTED BY: Charlie Mc Nab b , City Atto rney Page 36 of 36