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Home My WebLink About2009-08-10 EDC Minutes EULESS DEVELOPMENT CORPORATION BOARD OF DIRECTORS MINUTES AUGUST 10, 2009 The Board of Directors of the Euless Development Corporation met on Monday, August 10, 2009, in the Precouncil Room of City Hall in the Municipal Complex, 201 North Ector Drive, Euless Texas. The following persons were in attendance: Mayor Mary Lib Saleh, Chairman Council Member Linda Martin, Vice Chairman Mayor Pro Tem Tim Stinneford Council Member Glenn Porterfield Citizen Member Sonja Adams Citizen Member Carmen Deithloff Citizen Member Wayne Marrs -- Deputy City Manager Loretta Getchell, First Vice President Director of Economic Development Mike Collins, Second Vice President Director of Finance Vicki Rodriquez, Treasurer City Secretary Susan Crim, Secretary Director of Parks and Leisure Services Ray McDonald Library Administrator Kate Lyon Economic Development Advisor Bill Ridgway City Manager Gary McKamie, President, was out of town. CALL TO ORDER Chairman Mary Lib Saleh called the meeting to order at 5:15 p.m. Deputy City Manager Loretta Getchell introduced Director of Economic Development Mike Collins and stated that he will serve as the Second Vice President of the Board, as called for in the Bylaws of the Corporation. Bill Ridgway, who has served in this capacity in the past, will now perform the duties of Economic Development Advisor to the City. APPROVAL OF MINUTES OF MARCH 9, 2009 MEETING Upon motion by Tim Stinneford and second by Linda Martin, the minutes of the March 9, 2009, meeting were approved by unanimous vote. EULESS DEVELOPMENT CORPORATION AUGUST 10.2009 PAGE 2 REVIEW OF FINANCIAL REPORT FOR THE QUARTER ENDING JUNE 30, 2009 Director of Finance Vicki Rodriquez reviewed the Financial Report for the quarter ending June 30, 2009, and stated that sales tax collections through June 30, 2009, totaled $2,516,713, which represents 65% of budget. Operating expenditures were within budget at $2,643,158. In the Capital Projects Fund expenditures during the third quarter were $776,515. The remaining balance in the Capital Projects Fund for projects not yet completed is $4,646,081, primarily for Park Amenities, Midway Park Trail, Park Structure Improvements, Irrigation Project and The Redi-Mix Regional Headquarters Incentive Project. Undesignated Capital Project Funds in the amount of $290,683 remain available for future allocation to approved projects. The required reserves and debt service funds have been maintained as required by bond covenant and by the Board. PUBLIC HEARING ON FISCAL YEAR 2009-2010 BUDGET Chairman Saleh opened a public hearing for the Fiscal Year 2009-2010 Euless Development Corporation budget. Vicki Rodriquez referred to the Fiscal Year 2010 budget distributed to the Board members prior to the meeting and compared it to the Fiscal Year 2009 Budget currently in effect. She stated that they expect to end FY09 with an operating fund balance of $757,945, which is $246,507 less than originally anticipated due to a significant decline in sales tax collections and interest earnings. She reported that the FY10 budget includes expected sales tax collections and related interest earnings of $3,497,764, which is a decrease of 11% from the prior year. Proposed operating and capital expenditures in FY10 will total $3,602,455. The park budget provides funding for park personnel, irrigation projects, equipment replacement and utilities and maintenance throughout park facilities. Salaries increased by one half of one position due to a shift in personnel from the City's general fund, and utilities have increased due to a projected increase in water costs at the Texas Star Sports Complex. The library budget provides continued funding for library personnel and library materials. The economic development budget includes funding for personnel, incentives and artwork. Salaries have also increased in this budget by one half of one position that has been shifted from the general fund. Since all funds allocated for art projects during FY09 will not be expended, it is recommended these funds be rolled over to FY10. Additionally, it is being recommended that $3,270 be rolled over to FY10 for the monument sign program. New capital funding in the amount of $105,500 is proposed to include $18,000 for a shade structure at the dog part, $16,500 for part-time security at the library, $35,000 for renovations to the building on Westpark Way which is currently being leased by Beall Concrete, and $36,000 to fund a part-time economic development consultant. If approved as submitted, this budget would have an estimated ending fund balance of $653,254 which exceeds the Board's recommended minimum reserve level of$500,000. EULESS DEVELOPMENT CORPORATION AUGUST 10.2009 PAGE 3 The capital fund balance expected to remain at the end of FY09 is $893,638, which is $819,527 more than originally budgeted. The majority of this savings is directly related to the Redi-Mix project, because they decreased the size of the facility and the bids came in significantly less than originally anticipated. The additional $19,527 savings was from the Midway Park trail project. No new projects are proposed for FY10. There being no proponents or opponents, Chairman Saleh closed the public hearing. APPROVAL OF FISCAL YEAR 2009-2010 BUDGET Upon motion by Tim Stinneford and second by Wayne Marrs, the Fiscal Year 2009-2010 Euless Development Corporation budget, which provides funding for ongoing park and park facility projects in the amount of $819,098, library improvement projects in the amount of $938,981, and economic development projects in the amount of$907,938 and provides for debt service related to such projects in the amount of $936,438 was approved by unanimous vote. REPORT ON CURRENT AND UPCOMING PROJECTS Deputy City Manager Loretta Getchell reported that the Redi Mix building is coming along nicely. The walls and roof structure are up, the retaining wall is finished and the fencing is nearing completion. The contractor believes they are on schedule to have the building complete by Christmas. She stated that it is going to be a beautiful building and a great addition for Main Street. Economic Development Advisor Bill Ridgway thanked the Board for the time he has had the pleasure of serving with them, and stated that he has every confidence that Mike Collins will do a great job for them. Mr. Ridgway reported that the ALDI grocery store will be a training store for their other stores that will be opening in the Metroplex. They plan to open 35 stores at about the same time in early 2010. Council Member Glenn Porterfield expressed his appreciation for the years Bill Ridgway has served as the Director of Economic Development for the City of Euless. Director of Economic Development Mike Collins reported that Glade Parks is virtually complete with most of the underground infrastructure. They plan to begin pouring pavement for the streets by late September. In addition, they will begin construction of their signage off Cheek Sparger and the service road, which will give a good feel for their architecture. On the residential portion of the project, David Weekley Homes has 32 acres under contract for the townhouse segment and they may be seeking approval in the future for some single family, lower density development. They have changed their leasing agent to The Edge Company, which is very promising for a significant big box end user. Mr. Collins reported that a new Church's Fried Chicken will be opening on Harwood Road west of Main Street. EULESS DEVELOPMENT CORPORATION AUGUST 10.2009 PAGE 4 Mr. Collins reported that Chesapeake Land Development Company is continuing to market the buildings that formerly housed the Ramada Inn and Gators Sports Grill on SH 183. Director of Parks and Community Services Ray McDonald reported that the newest addition to the Trail System goes under Mid Cities Boulevard and connects with the trail in Creekwood Estates. With future development through the Glade Parks, the system can connect with the trails in Colleyville, which in turn will connect to those through Grapevine and North Richland Hills to Trinity Park in Fort Worth. Mr. McDonald also reported that the Parks Department is using reclaimed water for much of their plant and landscape watering at the greenhouse. They hope to expand that program to other buildings in the Parks Department. They are also working with the Fire Department to use the water from fire hydrants when they are being flushed to fill their Parks Department watering trucks, so that the water is not lost in the storm drains. He stated that they are using Texas SmartScape to create landscapes that need less water, pesticides and fertilizer, and they are trying to utilize as many methods as possible to save water and money in their budget. Deputy City Manager Getchell reported that the City is preparing to implement tiered water rates to better cover the costs of operating the utility system. She advised that currently the City utilizes a flat rate pricing structure regardless of rate or usage, and that the Texas Water Development Board has recommended that cities consider water rates based on usage in an effort to promote water conservation. Ms. Getchell reviewed the proposed tiered rate structure for water and wastewater usage proposed to begin with the October 1, 2009, billing cycles. She pointed out that residents with average water usage of 8,000 gallons or less will pay no more than they are currently paying. She stated that it is hoped that the new tiered rate structure will have the desired effect of curbing excess usage and will encourage conservation. Library Administrator Kate Lyon stated that the Ke Anuenue Polynesian group would be performing at the Library at 7:00 p.m. She reported that the Library set an all time record in June by checking out 54,360 items and registering 709 new members. There were 24,404 visitors to the Library in June and overall registration is up 24% for the year over the prior year. They enjoy having the busy environment except for the rowdy children, and they are looking forward to the security guard in the new budget year. Ms. Lyon distributed a pamphlet introducing a new technology available at the Library, NetLibrary eAudiobooks, which are downloadable audio books. Ms. Lyon announced that Verlon Thompson will be performing at the Library again on Friday, August 21, at 7:00 p.m. ADJOURN There being no further business before the Board, the meeting was adjourned at 6:25 p.m. EULESS DEVELOPMENT CORPORATION AUGUST 10.2009 PAGE 5 APPROVED: - • ary Li• Saleh Chairman ATTEST: Susan Crim Secretary APPROVED AUGUST 10, 2009 EULESS DEVELOPMENT CORPORATION PROPOSED OPERATING BUDGET FISCAL YEAR 2009/10 FY2009 FY2009 FY2010 Budget Projected Proposed !Beginning Fund Balance $ 1,099,459 1,099,459 757,945 I Revenues: Sales Tax Collections $ 3,865,000 3.360.522 3.490.264 Transfer from EDC Debt Reserve $ 28,500 8,500 2.500 Interest Income $ 36,000 12,000 5,000 Operating Revenue $ 3,929.500 3.381.022 3,497,764 Expenditures: Parks Personnel: $ (336,645) (336,645) (391,934) Supplies&Miscellaneous $ (74,120) (74,120) (84,120) Advertising $ (5,000) (5,000) (5,000) Contingencies $ (15,000) (15,000) (15,000) Utilities $ (122,500) (122,500) (175,000) Irrigation(Transfer to CIP) $ (25,000) (25,000) (25,000) Equipment Replacement $ (4,131) (4,131) (2,560) Mowing Contract/Flower Bed Contract $ (99,214) (99,214) (99,214) Parks Subtotal $ (681,610) (681,610) (797,828) Library Personnel $ (673,343) (655,507) (683,981) Special Events/Promotions $ (2,000) (2,000) (2,000) Library Materials $ (244,200) (225,387) (236,500) Library Subtotal $ (919,543) (882,894) (922,481) Economic Development Personnel: $ (67,794) (77,844) (141,578) Supplies and Miscellaneous $ (70,300) (32,300) (35,800) Advertising and Promotions $ (6,500) (6,500) (7,500) Professional Services $ (1,000) (1,000) (1,000) Incentives(Transfer to CIP) $ (25,000) (25,000) (25,000) Contingencies $ - 0 (5,000) Art(2%of Sales Tax Collections) $ (260,640) (107,500) (212,855) Economic Dev.Subtotal $ (431,234) (250,144) (428,733) Bank Charges/Debt Serv/Audit $ (939,487) (939,487) (936,438) Contingency $ (250,000) (250,000) (250,000) Sales Tax Rebate/Job Creation/Training Incentive $ (239,131) (158,169) (158,205) Operating Expenditures $ (1,428,618) (1,347,656) (1,344,643) EXCESS REVENUE OVER EXPENDITURES $ 714,695 446,105 242,579 Capital Expenditures Capital Expenditures for FY09(see attached) $ (563,502) $ (560,232) (3,270) Capital Expenditures for FY10(see attached) $ - - (105,500) Subtotal-Capital Expenditures $ (563,502) (560,232) (108,770) TOTAL EXPENDITURES $ (4,024,507) $ (3.722,536) $ (3,602,455) !Available Fund Balance $ 1,004,452 757,945 653,254 !Projected Ending Fund Balance,FY09-10 653,254 1 FY 2009 FY 2009 FY 2010 PROJECT DESCRIPTION BUDGET PROJECTED PROPOSED FY 2009 APPROVED CAPITAL EXPENDITURES Monument Signs $ 3,270 - 3,270 ESL Projects $ 2,732 2,732 - Renovation of Sand Volleyball Court-JA Carr Park $ 7,500 7,500 - EDC Incentive Project $ 550,000 550,000 - TOTAL FY 2009 CAPITAL EXPENDITURES $ 563,502 560,232 3,270 FY 2010 RECOMMENDED CAPITAL EXPENDITURES Part time Security Guard $ 16,500 Shade Structures $ 18,000 Part time Consultant $ 36,000 Refurbish Building at 1100 Westpark Way $ 35,000 TOTAL FY 2010 CAPITAL EXPENDITURES $ 105,500 2 EULESS DEVELOPMENT CORPORATION PROPOSED CAPITAL BUDGET FISCAL YEAR 2009/10 FY2009 FY2009 FY2010 Budget Projected Proposed 'Beginning Fund Balance $ 5,022,706 5,022,706 893,638 Revenues: Transfer from EDC Operating Fund $ 600,000 600,000 50,000 Transfer from Car Rental Fund $ - - Interest Income $ 9,000 9,000 5,000 Operating Revenue $ 609,000 609,000 55,000 Expenditures: * Parks Contingencies $ (19,684) (19,684) Irrigation $ (50,000) (50,000) (25,000) Hike/Bike Trails $ (139,527) (120,000) - Misc Park Structure Improvements $ (109,469) (109,469) - Subtotal Parks: $ (318,680) (299,153) (25,000) Economic Development Incentives $ (5,238,915) (4,438,915) (25,000) Total Expenditures $ (5,238,915) (4,438,915) (25,000) EXCESS REVENUE OVER EXPENDITURES $ (4,948,595) (4,129,068) 5,000 'Available Fund Balance $ 74,111 893,638 898,638 'Projected Ending Fund Balance, FY2009-10 898,638 I * Unspent Capital Expenditures carryover until the project is complete. 3