7-28-2016 Minutes SEDCReg Board MtgSSCC]H[]C]RZ��J
ECONOMIC DEVELOPMENT CORPORATION
MINUTES
CITY OF SCHERTZ
ECONOMIC DEVELOPMENT CORPORATION
BOARD OF DIRECTORS
REGULAR MONTHLY MEETING
THURSDAY, JULY 28, 2016
The City of S chertz Economic Development Corporation (SEDC) Board of Directors met for a Regular
Monthly Meeting on Thursday, January 28h, 2016 at 6:00 p.m. in the City Council Chambers, Conference
room, 1400 Schertz Parkway, Schertz, Texas.
CALL TO ORDER
1. Roll call and recognition of visitors.
President Brown called the rneeting to order at 6:00 p.m. and welcomed everyone in attendance.
Board. of Directors:
Tim Brown — President
Angelina Kiser — Vice President
Roy Richard
Paul Macaluso
Katie Chain
Gary Howell
Staff:
Kyle Kinatede-t — SEDC Executive Director
Patty Hogan — Executive Assistant - ED
James WalteYS — Finance Assistant Director
Brian James — Executive Dig. Development
Absent Directo-ts: Rosemary Scott
Others present: Councilmember Jim Fowles, Steven Martinez
2. Public comment.
This time is set aside for any person who wishes to address the Board. Each person should fill out the Citizen's to be
Heard registry form prior to the meeting. Presentations should be limited to no more than 3 minutes. The presiding
officer, during the Public Comment portion of the agenda, will call on those persons who have signed up to speak in the
order they have registered.
Mr. Martinez introduced himself and announced his candidacy for a city- council seat in the upcoming
city elections. He shared a brief summary of his personal and professional profile.
ITEMS FOR INDIVIDUAL CONSIDERATION
3. Consider /Discuss /Act on approval of the Minutes for the Board of Directors Regular Monthly
Meeting held on Thursday, June 23`d, 2016. (P. Horan)
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A motion to approve the minutes for the Board of Directors Regular Monthly Meeting held on
Thursday, June 23rd, 2016 was made by Mr. Roy Richard. Seconded by Ms. Angelina Kiser. Motion
passed unanimously.
4. Review of the SEDC Monthly Financial Report for the month of June 2016. (J. Walters)
Mr. Walters provided an overview of the SEDC Monthly Financial Statements Report for the months
of June 2016.
5. Discussion on business park roadway construction /improvements. (K. Kinateder /B. James)
Mr. Kinateder opened the discussion by providing a recap from previous Board Meetings regarding the
need for infrastructure improvements within our business parks along with the ability to strategically
utilize SEDC reserves. Next, Mr. James provided an update on the City's efforts to address roadway
improvements throughout the City. The City will use a Paving Condition Index (PCI) along with other
quantitative and qualitative tools to develop a roadway repair program. The program will account for
budgetary constraints but overtime all the toads will be properly maintained. Mr. Kinateder added that
SEDC funds could be used, with the appropriate Board findings, to repair roads within business areas.
The Board discussed the City's roadway program and the need to repait our commercial roads especially
because of the wear and tear from heavy duty trucks. The Board also discussed the need to make long -
lasting tepaits rather than tempotary fixes. The Board discussed other issues that should be taken into
account such as drainage. The Board acknowledge the potential expenses of repairing the roads and
also expressed the need to maintain a healthy teserve account for other economic development projects.
No action was taken.
6. Consider /Discuss /Act on the City of Schertz Economic Development Corporation ( "SEDC ")
Construction Agreement with KIVIAC Construction Services, Inc. for the demolition and
revegetation of 1300 Schertz Parkway associated with the completion timeline of the contract.
(K. Kinateder)
Mr. Kinateder provided a brief history of the demolition project at 1300 Schertz Parkway and the
construction agreement with KMAC Construction Services Inc. He explained that as part of the
agreement, Kl`VIAC was responsible for completing the project within 60 calendar days from issuance of
the Notice to Proceed on May 9, 2016. Due to delays, KMAC was not able to complete the project
within the allotted time. Mr. Kinatedet recommended to work with I MAC on the completion of the
project by extending the timeline of completion to a -reasonable amount of time.
A motion to authorize a ninety day time extension for completion of work as described on the City of
Schertz Economic Development Corporation ( "SEDC ") Construction Agreement with KMAC
Construction Services, Inc. for the demolition and tevegetation of 1300 Schertz Parkway was made by
Mr. R. Richard. Seconded by Ms. K. Chain. Motion passed unanimously.
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7. Consider /Discuss /Act on the Agreement For Provisions of Professional Services Between The
City of Schertz and The City of Schertz Economic Development Corporation and recommend
approval by the City Council for the expenditures provided for in the Agreement For Provisions
of Professional Services Between The City of Schertz and The City of Schertz Economic
Development Corporation in the amount of $430,445.00 for the FY 2016 -17 fiscal year. (K.
Kinateder)
Mr. Kinatedet explained that each year the SEDC transfers funds to the City of Schertz for expenses
that are related to the SEDC. The Service Agreement formalizes the transfer of funds by detailing the
sp ecific s ervices that will b e provided to the SED C. The s ervices will include: providing administrative
staff (Executive Director, Business Retention Manages, Marketing and Recruitment Manager, and
Executive Assistant) and support (Human Resources, IT, Payroll, City Management, City Secretary,
etc.), managing financial records, preparing the budget, and providing office space. The Service
Agreement will be renewed annually as part of the budget process. The total amount of the Service
Agreement is $430,445.00 which was calculated using the SEDC Board's recommended FY 2016 -17
budget.
A motion to approve the Agreement for Provisions of Professional Services between the City of
Schextz and the City of Schertz Economic Development Corporation and recommend approval by the
City Council for the expenditures provided for in the Agreement in the amount of $430,445.00 for the
FY 2016 -17 fiscal year was made by Mr. P. Macaluso. Seconded by Ms. A. Kiser. Motion passed
unanimously.
8. Director's Report. (K. Kinateder)
Mr. Kinateder provided project updates on the Director's report included in the Board packet. Some
highlights at the meeting included:
• Ptoj ect Updates
■ Major Wire Texas, Inc.
Received their Cettificate of Occupancy on July Sf, 2016 qualifying for economic
development incentive grant payment. Staff will monitor Major Wire's annual
compliance to the incentive agreement.
• SEDC Board of Director Resignation
The Board was notified of Ms. Rosemary Scott's resignation from the Board. Ms. Scott has
relocated from the City. The Board expressed their appreciation for Ms. Scott and her many
years of service.
• SEDC Personnel
Provided an update on current job vacancies.
• Vestal Subdivision Drainage
Companies will be writing letters to TxDOT in support of funding the drainage project.
• Marketing Campaign
Provided an update on the online digital ad campaign..
• Businesses Visited
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Hollingsworth Logistic Group.
• Events Attended
SCUC ISD- CTE Tour of ITM I June 16"'
TexasOne Supporter Luncheon I July 7th I Austin, TX
Northeast Partnership for Economic Development I July 14th
REQUESTS AND ANNOUNCEMENTS
9. Requests by Board Members that items be placed on a future SEDC Board Meeting Agenda.
No requests were made.
Board recessed the Regular Meeting *into Executive Session at 6:56 p.m.
10. EXECUTIVE SESSIONS
A. Called in accordance with Section 551.087 of the Texas Government Code, Deliberation
Regarding Economic Development Negotiations; Closed Meeting. The governmental
body is not required to conduct an open meeting (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.
• Project E -021
• Proj ect E -023
Start Time: 6:57 p.m.
End Time: 7:10 p.m.
B. Called in accordance with Section 551.072 of the Texas Government Code,
DELIBERATION REGARDING REAL PROPERTY; CLOSED MEETING. A
governmental body may conduct a closed meeting to deliberate the purchase, exchange,
lease, or value of real property if deliberation in an open meeting would have a detrimental
effect on the position of the governmental body in negotiations with a third person.
• Project E -024
Start Time: 7:10 p.m. — Mr. Roy Richard recused himself from this session.
End Time: 7:35 p.m.
RECONVENE TO REGULAR SESSION
President Brown reconvened to Regular Session at 7:35 p.m.
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11. Discussion, public hearing and possible action to authorize the SEDC Executive Director to
take the necessary and appropriate actions to proceed with negotiations based on discussions
held in Executive Session under Agenda Item No.10:
• Project E -021
• Project E -023 — Discussion, public hearing, and possible action relating to an expenditure
of up to $112,500 in SEDC Funds to assist a warehouse and distribution project.
• Project E -024
No Action was taken.
AvJouxly
President Brown adjourned the meeting at 7:36 p.m.
MINUTES PASSED AND APPROVED THIS 25TH DAY OF AUGUST, 2016.
r - n -- President
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J//,/ V,
�Wgelina Kiser -- Vice President