20211028 Minutes SEDC Board Reg MtgECONOMIC DEVELOPMENT CORPORATION
MINUTES
Thursday, October 28, 2021
The City of Schertz Economic Development Corporation (SEDC) Board of Directors met for a Regular
Monthly Meeting on Thursday, October 28, 2021, at 6:00 p.m. in the Hal Baldwin Municipal Complex,
Council Chambers Board Room, Building No. 4, 1400 Schertz Parkway, Schertz, Texas. This is an open
meeting, subject to the open meeting laws of the State of Texas.
Call to order
l. Roll call and recognition of visitors
Board President Macaluso presided over the meeting and called it to order at 6:00 p.m. Mr. Macaluso
welcomed everyone in attendance.
Board of Directors present:
Paul Macaluso -Board President
Jesse Hamilton -Board Vice President
Sammi Morrill -Board Secret.ary
Roy Richard
Mark Moody
Board of Directors Absent:
Jesse Carrasco -Board Treasurer
Bryan Snowden
Others present:
None
Hearing of residents
Staff present:
Adrian Perez -Executive Director
Sheree Courney -Administrative Assistant
James Walters -Director of Finance
John Nowak -Engineer
2. Public comment -This time is sel aside for any person who wishes to address the Board
Presentations should be limited to no more than J. minutes. The presiding officer will call on those
persons who have signed up lo speak.
No public was present. No comments were made.
Minutes
3. Approval of the minutes for the Board of Directors Regular Monthly Meeting held on
Thursday, September 30, 2021. (A. Perez/S. Coumey)
SEDC Minutes 10/28/2021 Page 1of4
A motion to approve the minutes for the Board of Directors Regular Monthly Meeting held on
Thursday, September 30, 2021, was made by Mr. Mark Moody and seconded by Ms. Sam mi
Morrill. Motion passed unanimously.
Presentations
4. Staff briefing on SEDC Financial statement for the month of September 2021. (J.Walters)
Mr. Walters provided the following sununary and overview of the SEDC Financial Statement for
September 2021:
Sales tax revenue for the month of September was $458,801, 8.2% increase over September 2020
with strong growth in top businesses in the area. On the expense side, the SEDC saw munerous
small expenditures totaling $19,035 and the transfer of the $3,660,000 contribution to the City of
Schertz for Tri-County Parkway construction. Even after the contribution, the SEDC increased its
fund balance by $564,408.67 for FY 2020-21. The 12-month rolling average was 10.3%
continuing an upward trend. Negative growth not expected although a slowing down of growth is
expected. Wholesale trade and retail trade provide approximately 50% of sales tax revenue.
5. Staff briefing on TXDoT on signage at TH35 and Schertz Parkway. (A. Perez)
Mr. Perez infonned the board that this briefing serves as an update to what the Board previously
called the Gateway Monument discussion. As a recap. SEDC staff worked with TXDo T and
found there existed no right of way (ROW) on the northbound route of 1-35 for a Gateway
Monument. However, there is an opportunity for integrating symbols and icons into the
construction. Four planned pylons for new construction will bear the city seal at no cost to the
SEDC or City. On Southbound lanes, there exists potential ROW by Schwab Road for a Gateway
monument. Staff presented a draft design from Halff Associates of the "Schertz Parkway" lette1ing
to be displayed on the overpass upon entering the City limits traveling north on I-35. Multiple
designs were presented. SEDC Board expressed most interest in clean, low maintenance, raised or
etched letter design. The initial cost for design is $5,000 with estimated order of magnitude costs
for construction estimated at an additional $30,000. SEDC staff will continue with the development
of a design for Board review and submit initial design to TxDOT in November for quote on
advanced funding agreement. Aim is to have the advanced funding agreement back to the Board
in January for approval.
Discussion Items
6. Public Hearing, briefing and possible action on approval of the SEDC Resolution No. 2021-
10 authorizing an additional $1,240,000 for certain expenditures for the Tri County
Parkway Infrastructure Improvements project.
Mr. Perez provided a recap of the Tri County Parkway Infrastructure Improvements project,
including prior action taken by the Board in 2020. Tri County Parkway is a major collector that
supports primary jobs within the Schertz Industrial Park. Business Roundtables consistently
identified the poor road conditions. In 2016, the road received a Pavement Condition Index (PCJ)
rating of 47-58. In October 2019, the Board approved Resolution 2019-19 for up to $4,050,000 for
infrastructure improvements for the area from FM3009 to Lookout Road and along Lookout Road
from Tri County Parkway to Doe1T Lane. This was approved by City Council in January 2020.
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Project scoping commenced in 2020, noting a number of additional costs not included in the
original bid due to the depth of communication lines and utilities that needed to be moved or
buried in addition to sewer upgrades. Fwther scope changes including the signalization at the
intersection of Tri County Parkway and FM 3009 originally deemed unnecessary, however further
coordination with TxDOT for re-evaluation of signalization v.~th the extension of Tri County as
part of the master thoroughfare plan.
Project was put out for formal bid on September 21, 2021. Lowest bid received for the
construction with 8% contingency was $4,900,000. Engineering costs for the scoping of the
project total $390,000. Bringing the total cost of this project to $5,290,000. Questions regarding
City's lack of patticipation in the funding posed by Board members. EDC has fully funded
infrastructme projects in the past, but not for existing businesses. SEDC is working on
formalizing these types of agreements for future projects to ensure more accountability and buy-in
on the part of lhe City.
Mr. Nowak responded to project related questions. Specifically, the need for additional funding
for the area and scope of the infrastructure improvements covered under this agreement and
concerns over the delay in commencement of the project. Additional funding is needed due to
increase in construction costs and change in the scope of the project. Initial cost estimate did not
include trench restoration needed for an upsized sewer line requiring depth up to 22 feet or
working on existing street that has a lot of traffic requiring the use of flowable fill, which accounts
for approximately $600,000 of the additional funds needed. Mr. Nowak indicated his
understanding did not include a cost share with the City of this project. He also shared that of a
planned $2M budget for SPAM (Street Preservation and Maintenance) projects only $200,000 was
allocated. Delays noted by Board member were addressed by Mr. Nowak. Project could not start
until funds were seemed.
Project has not conunenced because City has not awarded the construction contract due to funding
shortfall. Approval of the resolution agreeing to the additional $1,290,000 would allow the
construction contract to go to City Council for approval.
No public were present for the Public Hearing. Hearing was opened at 6:43 pm and closed
immediately at 6:43 pm.
The following caption was read into the record:
SEDC RESOLUTION NO. 2021-10
A RESOLUTION BY THE CITY OF SCHERTZ ECONOMIC DEVELOPMENT
CORPORATION, TEXAS AUTHORIZING CERTAIN EXPENDITURES
FOR THE TRI COUNTY PARKWAY INFRASTRUCTURE
IMPROVEMENTS; AND OTHER MATTERS IN CONNECTION THEREWITH
A motion to approve SEDC Resolution 2021-10 authorizing an additional $1,290t000 for ce11ain
expenditures for the Tri County Parkway Infrastructure Improvements was made by Mr.
Hamilton. Seconded by Mr. Richard. Motion passed unanimously.
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Board President Macaluso recessed the meeting to closed session at 6:44 p.m.
Closed Session
7. The SEDC Board met in closed session 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 ru1 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-074
Start time: 6:47 p.m.
End time: 7:02 p.m.
• Project E-080
Board President Macaluso reconvened to regular session at 7:04 p.m.
Reconvene to regular session
8. Take any actions based on discussion held in closed session under Agenda Item No. 7.
No action was taken.
Requests and announcements
9. Requests by Board Members to place items on a future SEDC Board Meeting agenda.
No requests were made.
A.tmouncements by staff:
• Office Closed Veteran's Day -November 11-12, 2021
• Next Board Meeting changed to December 9, 2021
Information Only
SEDC Staffing and Operations Update
October City of Schertz Project Updates (City view and Tri County)
Adjournment
Board Presi dent Macaluso adjourned the meeting at 7:05 p.m.
MINUTES PAS ED AND APPROVED THIS 9th DAY OF DECEMBER 2021.
fu!Macaluso ""=
Board President
SEDC Minutes 10/28/2021
Sarnmi Morrill
Board Secretary
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