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HomeMy WebLinkAboutAgenda_GEDCO_07.16.2018Notice of Meeting for the Georgetown Economic Dev elopment Corporation of the City of Georgetown July 16, 2018 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 Meeting held Mo nday, June 18, 2018--Steve Bo hnenkamp , Sec retary B Co nsideration of the June 2018 financial report. Leigh Wallace, Finance Manager, GEDCO, Finance Directo r, COG C 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 -Activity Report -Other Staff Items D Co nsideration and possible actio n regard ing repairs to the stuc co exterior o f the b uilding at 101 W 7th St, Georgetown, T X 78626 - Mic haela Dollar, Directo r of Ec o nomic Develo p ment 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 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 . G 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 Page 1 of 40 territory o f the City o f Georgetown. - Projec t To ms H 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 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 __________________, 2018, 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 40 City of Georgetown, Texas Georgetown Economic Development Corporation July 16, 2018 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 Meeting held Mond ay, June 18, 2018--Steve Bohnenkamp, S ecretary ITEM SUMMARY: ATTACHMENTS: Draft Minutes FINANCIAL IMPACT: None SUBMITTED BY: Steve Bo hnenkamp, C o rp o rate Sec retary ATTACHMENTS: Description Type minutes Cover Memo Page 3 of 40 GEDCO Minutes June 18, 2018 Page 1 of 3 Minutes of the Meeting of the Georgetown Economic Development Corporation City of Georgetown, Texas June 18, 2018 The Georgetown Economic Development Corporation of the City of Georgetown, Texas, met on Monday, June 18, 2018. Members Present: Members Absent: Kevin Kelly, Jeff Parker, Steve Fought, Steve Bohnenkamp, Valerie Nicholson Tom Menke and Bill Mateja Staff Present: Michaela Dollar, Director of Economic Development; Leah Wallace, Finance Manager; Laurie Brewer, Assistant City Manager; Paul Diaz, Budget Manager; Nathan Parras, Budget Analyst, Shirley Rinn, Executive Assistant to the City Manager, Sofia Nelson, Planning Director; Debbie Mitchell, Senior Accountant MINUTES Call to Order at 4:00 pm A Consideration and approval of the minutes for Georgetown Economic Development Corporation for the Regular Meeting held Monday, April 19, 2018—Steve Bohnenkamp, Secretary Motion by Parker, second by Fought to approve the April 19, 2018 minutes. (Approved 5-0) (Menke and Mateja Absent) B. Consideration and possible action regarding the 2030 Comprehensive Plan Update- Sofia Nelson, Planning Director Sofia Nelson, provided an overview of the 2030 Comprehensive Plan Update and that they were providing this update to all of the Boards & Commissions for their input. She provided a description of what a comprehensive plan is and what it is not. She also went over the processes that will be followed to update the Plan, the items that would be included in the Plan, including updates to Alignment, Demographics, and the Housing Element, a Housing Toolkit, Gateway Development Strategies, Wiliams Drive Subarea Plan, Growth Scenarios, a Future Land Use Map Update, Public Engagement, Implementation Strategies, and a timeline for the adoption of the 2030 Comprehensive Plan Update. Nelson also provided more details on the Committee Work Plan and the Public Engagement Process. There was a suggestion to include the Rotary Clubs and GISD in the public engagement process and Nelson confirmed that GISD and Civic Groups were stakeholders in the process. She also asked that if there were any other clubs or service groups that need to be added to the list to please let the planning department know. There was a suggestion to add a step to validate the success of the performance standards accomplished during the implementation phase. There was a brief discussion regarding the City’s Annexation Plan and how that process was accomplished. Page 4 of 40 GEDCO Minutes June 18, 2018 Page 2 of 3 Nelson told the Board that they are planning a City Wide Public Engagement process called “On the Table”, which could be with small groups, families, council district meetings, neighborhood meetings, etc. She told them they plan have an “On the Table” event on October 2, 2018, which is National Night Out. She indicated that this event will entail not only city staff, but that they would need lots of assistance from the community to coordinate those discussions with neighborhoods throughout the City that night. She indicated that there would be a training session so that all of the neighborhoods would be receiving the same information and process. Nelson also told the Board that the Planning Department is working with the Police Department to coordinate with the neighborhoods that have signed up for National Night Out. A moderator will be available at each “Meeting in a Box” to take notes and get input back the the Planning Committee. She indicated that a series of questions would be posed to the neighborhoods that would include for example “Why do you enjoy being in Georgetown?” “Where do you visit in Georgetown?” “Where do you see Georgetown?” “Where do you see Georgetown going?” Nelson told them she would be coming back to the Board in the future to provide additional updates on the progress of the 2030 Comprehensive Plan Update. C. Consideration of the April and May 2018 financial reports. Leigh Wallace, Finance Manager, GEDCO, Finance Director, COG Wallace presented the financial reports to the Board. She also told them sales tax revenues are up significantly in the last 2 months. She indicated that these figures are still 2 months in arrears, but the numbers are coming in higher than they were earlier in the year. Dollar clarified a marketing expense and provided an update on the timing of the sale of the Grape Creek Building. Diaz and Parras provided a detailed presentation regarding an overview of the City’s Sales Tax Revenues, the Process and Methodology utilized to project future sales tax revenues, and the projections for FY 2018- 19. D. Discussion and possible action to recommend the FY 2019 proposed budget-Leigh Wallace, Finance Director, COG, Finance Manager, GEDCO Wallace and Diaz provided an overview of the FY 2018-19 GEDCO Annual Budget Process. Brief discussion regarding the marketing funds included in the budget for economic development as it compares to other cities. Dollar confirmed that Economic Development requested an increase in marketing funds from the prior year. She confirmed that she feels that the proposed GEDCO Budget is adequate for their needs in FY 2018-19. Motion by Bohnenkamp, second by Parker to recommend the FY 2019 proposed budget to the City Council (Approved 5-0) (Menke and Mateja Absent) E. Discussion and possible action regarding the Staff Report —David Morgan, City Manager - Performance Agreement Report - Activity Report - Other Staff Items Page 5 of 40 GEDCO Minutes June 18, 2018 Page 3 of 3 Dollar presented the Performance Agreement Report and the activity report and economic indicators and then answered questions from the board. Recessed into Executive Session at 5:10 pm Return to Regular Session at 5:16 p.m. F Action out of Executive Session. Motion by Parker, second by Kelly to approve the incentives for Project Deliver as discussed in Executive Session (Approved 5-0) (Menke and Mateja Absent) Motion by Parker, second by Nicholson to adjorn at 5:20 p.m. Meeting was adjourned at 5:20 p.m. Attest: ______________________________ ___________________________________ Steve Bohnenkamp, Corporate Secretary Kevin Kelly, President Page 6 of 40 City of Georgetown, Texas Georgetown Economic Development Corporation July 16, 2018 SUBJECT: Cons id eration o f the June 2018 financ ial repo 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 report Cover Memo Page 7 of 40 GEDCO Board Meeting Date: July 16, 2018 Item No. __________ GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION AGENDA ITEM COVER SHEET _________________________________________________________________ SUBJECT: Consideration of the June 30, 2018 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; therefore the revenues reflect only the amount received, not actually earned, as of the report date. A report on payments made to vendors in the month of June is also included. ATTACHMENTS: Monthly Financial Reports Sales Tax History Disbursement Report SUBMITTED BY: Leigh Wallace Finance Manager, GEDCO Finance Director, COG Page 8 of 40 APPROVED BUDGET CURRENT PERIOD YEAR TO DATE (W/ENCUMB) YEAR-END PROJECTION BEGINNING FUND BALANCE 5,902,863 6,051,152 OPERATING REVENUES Interest 25,400 10,256 68,798 68,800 Lease Revenue (Grape Creek)24,000 - 36,000 36,000 Miscellaneous Revenue 61,100 - 60,991 61,000 Sales Tax 1,643,750 135,089 961,483 1,693,750 Sale of Property - - OPERATING REVENUES Total 1,754,250 145,345 1,127,272 1,859,550 OPERATING EXPENDITURES Debt Service 212,569 - 43,784 212,569 Interest Expense 26,128 - - 26,128 Joint Services Allocation 221,328 18,444 165,996 221,328 Miscellaneous Expense 11,108 - 10,991 11,040 Principal Reduction 90,485 - - 90,485 Promotional & Marketing Program 81,000 3,000 78,301 81,000 Special Services 57,500 - 42,500 57,500 Supplies 300 - - - Travel & Training 1,500 - - 500 OPERATING EXPENDITURES Total 701,918 21,444 341,572 700,550 TOTAL NET OPERATIONS 1,052,332 123,901 785,700 1,159,000 Catalyst 36,000 - 18,839 18,839 DisperSol 60,000 - 40,000 40,000 Economic Development Projects -Undetermined 6,308,518 - - 150,000 Texas Life Sciences 139,740 - 139,740 139,740 NON-OPERATING EXPENDITURES Total 6,544,258 - 198,579 348,579 TOTAL NET NON-OPERATIONS (6,544,258) - (198,579) (348,579) EXCESS (DEFICIENCY) OF TOTAL REVENUE OVER TOTAL REQUIREMENTS (5,491,926) 123,901 587,121 810,421 ENDING FUND BALANCE 410,938 6,861,573 RESERVES Contingency 410,938 423,438 RESERVES Total 410,938 - - 423,438 AVAILABLE FUND BALANCE - 6,438,135 Georgetown Economic Development Corporation Fund Year-End Projection to Approved: Jun FY2018 Page 9 of 40 As of June 30, 2018 Georgetown Economic Development Corporation Sales Tax History Variance % Var. MONTH [a]2013-14 2014-15 2015-16 2016-17 2017-18 To FY 17 To FY 17 October 91,863$ 98,094$ 106,050$ 114,748$ 124,478$ 9,730$ 8.48% November 99,552 102,891 112,766 125,214 127,064 1,850$ 1.48% December 134,682 143,774 148,200 160,542 162,940 2,398$ 1.49% January 89,357 87,695 96,563 110,006 115,291 5,285$ 4.80% February 86,901 89,107 108,117 105,556 133,797 28,241$ 26.75% March 114,355 123,951 133,492 137,301 158,112 20,811$ 15.16% April 106,002 102,671 108,977 117,261 135,036 17,775$ 15.16% May 112,572 95,699 120,418 125,188 June 123,306 130,589 142,767 151,484 July 102,435 108,994 119,534 154,889 August 98,015 102,888 132,582 122,847 September 119,473 125,201 135,378 143,897 Total 1,278,513$ 1,311,554$ 1,464,844$ 1,568,933$ 956,718$ YTD 722,712 748,183 814,165 870,628 956,718 86,090 9.89%[b] Notes: [a]Sales tax revenue from the State Comptroller is received two months in arrears. [b]YTD compared through current month. $- $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 2015-16 2016-17 2017-18 Page 10 of 40 GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION CHECKS WRITTEN REPORT FOR THE MONTH OF JUNE 2018 • Promotions & Marketing Program: - Flyer View Group, LLC $ 3,000.00 Page 11 of 40 City of Georgetown, Texas Georgetown Economic Development Corporation July 16, 2018 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 -Activity Report -Other Staff Items 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 activity report Cover Memo pa Cover Memo Page 12 of 40 Economic Development Activity Report July 2018 Page 13 of 40 Strategic Goal 1 Support existing businesses and industries Page 14 of 40 0 5 10 15 20 25 Ju l 1 7 Au g 1 7 Se p 1 7 Oc t 1 7 No v 1 7 De c 1 7 Ja n 1 8 Fe b 1 8 Ma r 1 8 Ap r 1 8 Ma y 1 8 Ju n 1 8 Business Retention Activity Visits Assistance Requests Touches Page 15 of 40 Additional BRE Activity •Still seeing workforce and facilities as major themes •13 of the active projects are existing businesses (about 25%) •Manufacturer’s Alliance (June 14) Page 16 of 40 Strategic Goal 2 Enhance targeted recruitment of identified industries Page 17 of 40 0 2 4 6 8 10 12 14 16 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Leads FY17 FY18 Page 18 of 40 0 2 4 6 8 10 12 14 16 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Proposals Submitted FY17 FY18 Page 19 of 40 0 1 2 3 4 5 6 7 8 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Site Visits FY17 FY18 Page 20 of 40 Development, 19 Hot, 18 Warm , 7 Cold, 10 Active Projects Page 21 of 40 Additional Recruitment Activity •Working with available building owners to identify leads for their space •New development activity on multiple lots –spec, retail, and industrial related Page 22 of 40 Strategic Goal 3 Diversify workforce development and recruitment initiatives Page 23 of 40 Workforce Development Activity •Working with the Texas Workforce Commission on Veteran’s Outreach –Veteran’s Job Fair August 15 Page 24 of 40 Strategic Goal 4 Encourage speculative development Page 25 of 40 Speculative Development Activity •Seven of the active projects are speculative development •Also focusing on “shovel-ready” sites Page 26 of 40 Overall Objective Tell our story to a broader local audience Page 27 of 40 Other Activity •City Downtown Building Sales •Planning Symposium –“Where’s the Workforce?” •WilCo EDP rebranding Page 28 of 40 Economic Indicators Page 29 of 40 - 200 400 600 800 1,000 1,200 $- $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 $400.0 $450.0 Ju l 1 7 Au g 1 7 Se p 1 7 Oc t 1 7 No v 1 7 De c 1 7 Ja n 1 8 Fe b 1 8 Ma r 1 8 Ap r 1 8 Ma y 1 8 Ju n 1 8 Construction Permit Applications Valuation (in millions) # of Permits Page 30 of 40 0 2 4 6 8 10 12 14 16 18 Ju l 1 7 Au g 1 7 Se p 1 7 Oc t 1 7 No v 1 7 De c 1 7 Ja n 1 8 Fe b 1 8 Ma r 1 8 Ap r 1 8 Ma y 1 8 Ju n 1 8 Certificates of Occupancy Issued Page 31 of 40 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Sales Tax Collections FY 2017 FY 2018 Page 32 of 40 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% Ju n 1 7 Ju l 1 7 Au g 1 7 Se p 1 7 Oc t 1 7 No v 1 7 De c 1 7 Ja n 1 8 Fe b 1 8 Ma r 1 8 Ap r 1 8 Ma y 1 8 Unemployment Rate Page 33 of 40 $30,000 $35,000 $40,000 $45,000 $50,000 $55,000 Average Annual Wage Page 34 of 40 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 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$ KJ Scientific (KJS) Provide a grant of the equipment obtained in the TLCC brand acquisition to KJ Scientific (KJS) to retain the business in Georgetown.The retention equipment grant is for five years with KJS obligated to pay a pro-rated amount of $10,000 per year should they relocate outside of the City.2/27/2018 12/31/2022 50,000.00$ 50,000.00$ Holt Caterpillar GEDCO to provide up to $185,000 infrastructure grant for the cost of connecting to a new wastewater line run to the property by the City. Approved by Council on 1/24/17.1/24/2017 185,000 Radiation Detection Corporation 2 Grant for Qualified Expenditures and job creation related to the expansion of the existing corporate offices located in Georgetown. 6/12/2018 6/1/2019 150,000$ -$ GEDCO - ACTIVE PERFORMANCE AGREEMENTS STATUS REPORT July 16, 2018 Page 35 of 40 City of Georgetown, Texas Georgetown Economic Development Corporation July 16, 2018 SUBJECT: Cons id eration and p o s s ib le ac tion regard ing rep airs to the s tucc o exterior of the build ing at 101 W 7th St, Geo rgeto wn, TX 78626 - Michaela Do llar, Direc tor o f Econo mic Develo pment ITEM SUMMARY: At previo us meetings , GEDCO d is cus s ed and ap p ro ved fund ing to repair the s tucc o exterior o f the Main Street s id e of GEDC O's build ing at 101 W 7th S treet. Upon ins p ectio n, new areas o f c o nc ern o n the 7th Street s id e of the b uilding have been disc o vered . Therefo re, s taff req uests that GEDCO cons id er ap p ro ving additio nal fund s to c o ver the c o s t of rep air. FINANCIAL IMPACT: TBD SUBMITTED BY: Michaela Dollar, Direc tor o f Econo mic Development Page 36 of 40 City of Georgetown, Texas Georgetown Economic Development Corporation July 16, 2018 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 37 of 40 City of Georgetown, Texas Georgetown Economic Development Corporation July 16, 2018 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 38 of 40 City of Georgetown, Texas Georgetown Economic Development Corporation July 16, 2018 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. - P ro ject To ms ITEM SUMMARY: FINANCIAL IMPACT: N/A SUBMITTED BY: Charlie Mc Nab b , City Atto rney Page 39 of 40 City of Georgetown, Texas Georgetown Economic Development Corporation July 16, 2018 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 40 of 40