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EDC 02-19-1998 . . . MINUTES OF THE ORGANIZATIONAL MEETING OF THE CITY OF SCHERTZ ECONOMIC DEVELOPMENT CORPORATION THE STATE OF TEXAS COUNTIES OF BEXAR, COMAL AND GUADALUUPE CITY OF SCHERTZ ECONOMIC DEVELOPMENT CORPORATION ON THIS, the 19th day of February, 1998, the Board of Directors (the Board) of the City of Schertz Economic Development Corporation (the Corporation) convened at 7:00 o'clock p.m. at the Conference Room, Schertz, Texas with the following members being present and in attendance: Ken Greenwald Norman Agee, Sr. Charles McDonald Ramon Cook Steve White Johnie McDow Tim Swinney Constituting a majority of the persons appointed to the Board and a quorum for the transaction of business, such meeting being the initial meeting of the Board of Directors of the Corporation (the Board) created under and pursuant to the provisions of the Development Corporation Act of 1997, as amended, Texas Revised Civil Statutes Annotated Article 5190.6 (the Act); and notice of such meeting having been duly given in accordance with the provisions of Section 12 of the Act or the requirement of such notice having been waived as authorized by Section 15( d) of the Act. Also in attendance were, Jeff Kuhn, Kerry Sweatt and L. J. Cotto The meeting was called to order, and by a unanimous vote of all Directors present, Tim Swinney was elected to serve as temporary chairman of the meeting. The Board was then advised that the Articles of Incorporation had been filed with, and a certificate of incorporation issued by, the Secretary of State of Texas, all as of the 5th day of February, 1998. It was determined that the first order of business to be considered was the election of officers of the Corporation prescribed in Article III of the Bylaws. The following persons were then nominated. Charles McDonald nominated and . Norman Agee seconded the nomination of Tim Swinney to serve as President; 1 .~ . Charles McDonald nominated and Ken Greenwald seconded the nomination of Steve White to serve as Vice President; Norman Agee nominated and Ken Greenwald seconded the nomination of Johnie McDow to serve as Secretary; and Tim Swinney nominated and Ken Greenwald seconded the nomination of L.J. Cott to serve as Treasurer and elected by unanimous vote to serve as officers of the Corporation for a term to expire on September 30 of each year as provided in the Articles of Incorporation: Tim Swinney Steve White Johnie McDow L.J. Cott President Vice President Secretary Treasurer Norma Althouse and Dolores Butler were appointed by acclamation as Assistant Secretaries. The President then assumed the duties of presiding officer at the meeting and then announced that the next items of business were to approve the Articles of Incorporation and Bylaws. . The next order of business presented to the Board was the adoption of the Articles of Incorporation for the Corporation. A draft of the Articles of Incorporation which had been approved by the City Council of the City of Schertz, Texas (the Governing Body), in connection with its approval and authorization for the creation of the Corporation was then presented to the Board and discussed. A motion was made by Johnie McDow and seconded by Norman Agee that the Articles of Incorporation, as approved by the Governing Body and filed with the Secretary of State, be adopted. Upon a vote being called, such Articles of Incorporation were duly adopted as the Articles of Incorporation of the Corporation by the following vote of the Directors present: Ayes: Tim Swinney, Norman Agee, Ken Greenwald, Steve White and Johnie McDow; Nays: None; Abstentions: Charles McDonald and a copy of same were directed to be attached hereto and made a part of the official minutes of the Board. a:: The next order of business presented to the Board was the adoption of the Bylaws for the Corporation. A draft of the Bylaws which had been approved by the Governing Body in connection with its approval and authorization for the creation of the Corporation was then presented to the Board and discussed. A motion by Charles McDonald and seconded by Steve White that the Bylaws, as approved by the Governing Body, be adopted. Upon a vote being called, such Bylaws were duly adopted as the Bylaws of the Corporation by a unanimous vote of the Directors present, and a copy of same were directed to be attached hereto and made a part of the official minutes of the Board. President Swinney announced that the next items of business to be . considered by the Board were the adoption of a seal for the Corporation, 'l 2 . establishing a fiscal year for the Corporation, the designation of a regular meeting place and a regular meeting date for the Board, and the selection of a depository bank for the Corporation's funds. President Swinney then noted for the record that Mr. Kerry Sweatt was appointed as the Executive Director of the Corporation pursuant to Section 3.6 of the Corporation's Bylaws. Upon a motion being made and seconded and a vote being called for, the following items were passed and adopted by a unanimous vote of all Directors present. The Board agreed that its regular meetings would be held "as called" with proper notification and posting at 7:00 p.m. and its regular meeting place would be the City of Schertz City Hall. The Board agreed that special meetings would be called and conducted in accordance with the Corporation's Articles of Incorporation and Bylaws and the Act. The Board directed that the fiscal year of the Corporation would coincide with the City's fiscal year being the twelve-month period from October 1 st through September 30th of each year and that the Corporation would consider utilizing the City's depository bank to deposit its funds. The Board directed the Treasurer to contact this bank and other banks in the City in order that a depository contract could be presented to the Board for consideration. President Swinney then announced that the next order of business to be considered by the Board was to retain the professional services of a financial advisor to represent and serve the Corporation in connection with any project to be financed. . A motion was then made by Johnie McDow and seconded by Ken Greenwald to approve the recommendation of the City Manager that the firm of Southwest Securities, Inc., San Antonio, Texas, be designated and retained as financial advisor to the Corporation. Upon a vote being taken, the motion carried by a unanimous vote of the Directors present. President Swinney then announced that the next order of business to be considered by the Board was to retain the professional services of general counsel and bond counsel to represent and serve the Corporation in connection with any project to be financed. A motion was then made by Ken Greenwald and seconded by Steve White to approve the recommendation of the City Manager that the firm of Fulbright & Jaworski L.L.P., San Antonio, Texas, be designated and retained as general counsel and bond counsel to the Corporation. Upon a vote being taken, the motion carried by a unanimous vote of the Directors present. The next order of business was a general discussion that the next meeting of the Board should include a briefing by Mr. Sweatt relating to the plans for the proposed Corporation projects and the preparation of a preliminary budget for the Corporation. . President Swinney then asked if there was any other business for the Board to consider and, none being offered, it was moved and seconded that 3 . . . the meeting be adjourned. Upon a vote being taken, the motion carried by a unanimous vote of all Directors present and the meeting was adjourned at 9:20 p.m. MINUTES APPROVED, this the /!Ii-day of /f7tVu_-/./ , 1998. Signatures of all Directors whether present or absent ~.~ '" ~~~.ill~) ~ Vice President ~ rUd1c.~ ecretary ~~.~ DI ector If(ljI/ifH-!. ; A Director ~~ Director @~M~ . irector 4