NOVEMBER 2 2004
SCHERTZ ECONOMIC DEVELOPMENT CORPORATION (4-B BOARD)
November 2, 2004
The Schertz Economic Development Corporation (4--B Board) convened on
Tuesday, November 2, 2004 at 6:00 p.m. in the Municipal Complex Conference
Room, 1400 Schertz Parkway, Schertz, Texas. Those members present were as
follows: President Ken Greenwald, presiding; Director Steve Simonson. Director
Reginna Agee, Director Tony Wilenchik, Vice-President Steve White, Secretary
Johnie McDow and Director Ramon Cook. Also, present were Interim City
Manager Johnny Bierschwale, Finance Director Juan Santoya, Community
Development Director Amy Madison. Community Services Director Gail
Douglas, City Attorney, Michael Spain and recording Secretary, Mary Ybarra.
#1 Call to Order
President Greenwald called the meeting to order at 6:00 p.m.
#2 Approval of Minutes August 17, 2004.
Director Cook made mention of the recurring use of "they" and "them" (20
references) in several sentences on page 2 and page 3. These paragraphs need
help, very difficult to. understand. He suggests the use of closer association to
words. President Greenwald suggests being a bit more explicit, after all meetings
are taped.
Without further discussion, Secretary McDow approved the minutes of August
17, 2004, to include comments from Director Cook and President Greenwald.
Director Agee seconded the motion, which carried with the unanimous vote of
all members present.
#3 Discussion and possible action on election of Officersjreplacement and
appointment of Executive Director.
President Greenwald referred to list of Board members provided and asked if
anyone wants to change, quit, etc. Unfortunately the person with interest in the
issue was not present.
Interim City Manager Bierschwale advised that City Attorney, Michael Spain
was present to provide additional information regarding who may sit on the
Board, etc. The other issue is appointment of Executive Director. What are the
wishes of the Board?
I
Director Cook moved to approve the appointment of officers as they currently
stand, for a two-year term. Secretary McDow seconded. the motion. which
carried with the unanimous vote of all members present.
At this time, President Greenwald suggested appointing Interim City Manager
J()hnnie Bierschwale as Executive Director. Vice-President White asked if
President Greenwald's comment was a form of a motion. President Greenwald
concurred and reiterated the motion to appoint Interim City Manager Johnnie
Bierschwale as Executive Director; until such time that a City Manager is selected
and finalized. Vice-President White seconded the motion.
At this time, Director Agee referred to (4B) Articles of Corporation (Article 3,
SectIon 3.6) and read, that City Manager shall serve as Board Executive Director
of Corporation providing administrative support; Executive Director shall not be
a member of the Board. The statement locks it in; Johnnie Bierschwale Acting
City Manager shall serve, there is no need to appoint or act. The Board was in
agreement.
Executive Director Bierschwale stated that on behalf of the Board, he would like
to make Amy Madison the Staff Liaison. The Board voiced no concern.
At this time, Mrs. Madison asked to speak. She informed the Board that she just
returned from HB 2912 Certification Seminar and the one thing discussed
(questioned by Councilmember Douglas) was the quorum issue (City Council). It
was pointed out that if the Board has 4 members of City Council seated on 4B, it
is recommended to post an agenda for City Council along with the 4Bagenda. Of
course, one way to resolve the matter is to reduce the number of
Councilmembers on the Board. Another issue to remember, and it was
emphasized, that Council is the final approval on any projects sent forward from
4B; this is by State code. With this in mind, Council may want to consider the
makeup of the Board or at the very least consider the Open Meeting Act as far as
posting the agenda.
Vice-President White commented that the 4B Board is operating under the old
law (City grandfathered) and was under the impression that the Board could
operate either way. Ms. Madison explained that basically the makeup of the
Board has not changed since 1979. The only thing is the mix of representation on
the Board (not addressed in the State Statue), applying to the Open Meetings Act,
where if you have a quorum, an agenda must be posted for City Council, if the
Board consists of 4 or more Councilmembers.
City Attorney, Michael Spain explained that in terms of the Open Meetings Act;
and necessity to post (due to four members of Council on 4B Board) it is probably
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a conservative approach. He went on to say that if Councllmembers were careful
not to discuss City business and focus on 4B business, he doesn't believe legally
there is a need to post. However, it might be a safer approach, in case someone
drifted from the topic of discussion.
Consensus of the Board was to take safe~pproach and post agenda for both City
Council and 4B, due to the number of Councilmembers on the Board.
#4 Discussion on statewide seminar on HB 2912
Mrs. Madison briefed Council on the Tri-County Economic Development
Coalition formed 2-1/2 years ago, which consists of 14 different cities in the
regional area. Since the formation of the Coalition, which meets every two
months, she reports that meetings have been very successful covering different
issues concerning Economic Development. The major . tool of Eco1'lOmic
Developinent used throughout the State is HB 2912, which is the revision of the
original Economic Development Tax of 1979. Most coalition members are the
Executive Director's of 4A and 4B Corporations, and their interests lie with
legislative discussions regarding revisions. HB 2912 removes some of the liberal
views of what Economic Development is in the State of Texas; it focuses on
primary jobs, and defining what are primary jobs, and what is allowed for
funding and what isn't. Other changes include funding Municipal Utilities as
well as retail, which in some areas are very damaging.
She went on to say that because of these changes, the Coalition would like to
bring together a Statewide Forum to discussion HB 2912; discuss the affects to
Economic Development in the State. After discussions with the Texas Economic
Development Council, the Council has. agreed to co-sponsor the Seminar
(Statewide). All 4A-4B Cites will be invited; the event will take place in Austin,
(Hilton) January 28, 2005 (all day event). Topic of discussions will range from
"What's good; what's bad about the changes"; discussion on some of the
anticipated changes; as how it may affect 4B (sales tax) in the City of Schertz;
changes of repeal; as well as how it has affected other cities.
At this time, Mrs. Madison extended an invitation to the Board, stating that their
input was very important and essential. She would like the Board to have a full
understanding so she may represent the Board (City) on a State level, and of
course, only with the Board's approval.
Interim City Manager Bierschwale informed the Board, information on HB 2912
would be provided at the next 4B Board Meeting, possibly in the next 2 -3 weeks.
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Before going into Executive Session, City Attorney, Michael Spam explained the
procedures to follow in an Executive Session; the Board can exclude anyone from
the meeting (except members); no votes in session; tape meeting; tape (sealed)
given to City Secretary to file (no one has access to tape except a Judge); no
discussion of specific ExeCutive Session issue can take place; penalties may be
enforced by District Attorney; topic of discussion must be on the issue at all
times.
#5 Executive Session: Called under Chapter 551, Texas Government Code,
subsection 551.087: Deliberations Regarding Economic Development
Negotiations. .
1. to discuss or deliberate regarding commercial or financial
information that the governmental body has received from a
business prospect that the governmental body seeks to have locate,
stay, or expand in or near the territory of the governmental body and
with which the governmental body is conducting economic
development negotiations; or
2. to deliberate the offer of a financial. or other incentive to. a business
prospect described by Subdivision (1).
An Executive Session was held from 6:30 p.rn. to 6:50 p.rn.
#6 Action, if any on above Executive Session
Vice-President White moved to approve and fund the project in the amount of
$30,165.42. Director Simonson seconded the motion, which carried with the
unanimous vote of all members present.
#7 Adjournment
President Greenwald adjourned the meeting at 6:52 p.m.
f/-
MINUTES APPROVED this the ~ day of 200},
Preside Dir or
Vice-President Director
-cretary Director
Treasurer