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HomeMy WebLinkAboutMinutes Corpus Christi Business And Job Development Corporation (Type A) - 03/19/2012MINUTES CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION (TYPE A) REGULAR MEETING CITY HALL — COUNCIL CHAMBERS MARCH 19, 2012 — 3:00 P.M. PRESENT: Members Eloy Salazar, President Robert Tamez, Vice President Foster Edwards, Secretary Adolfo (Butch) Escobedo R. Bryan Gulley Staff Margie Rose, Assistant City Manager Charlotte Yochem, Assistant City Attorney Armando Chapa, Assistant Secretary Constance Sanchez, Finance A. Called meeting to order — President Salazar called the meeting to order at 3:06 p.m. B. Roll Call - President Salazar verified that the necessary quorum of the Board were present to conduct the meeting. Approval of Minutes - Mr. Tamez made a motion to approve the Regular minutes of February 27, 2012, seconded by Mr. Edwards and passed. President Salazar announced the following closed sessions (items 2 -4): 2. Closed session under §551.087 of the Texas Government Code to discuss or deliberate regarding commercial or financial information pertaining to Project Chain that the Board has received from, or to deliberate the offer of a financial or other incentive to, a business prospect that the Board seeks to have locate, stay, economic development negotiations. witn oossime aiseussion and action in open session. 3. Closed session under §551,087 of the Texas Government Code to discuss or deliberate regarding commercial or financial information pertaining to Project Chika that the Board has received from or to deliberate the offer of a financial or other incentive to, a business prospect that the Board seeks to have locate, stay. economic development negotiations, with possible discussion and action in open session. 4. Closed session. under §551.087 of the Texas Government Code to disc or deliberate regarding commercial or financial information Rertaining to Project Trout that the Board has received from, or to deliberate the offer of a financial or other incentive to a business Rrospect that the Board seeks to have locate sta or expand in or near the city and with which the Corporation is conducting economic development negotiations, with Possible discussion and action in open session. - The Corporation went into closed session. The Corporation returned from closed session. President Salazar announced that no action would be taken on the executive session items. INDEXED Type A Meeting March 19, 2012 — Page 2 5. Financial Report — Director of Financial Services Constance Sanchez presented the sales tax report updated through February; the cash flow statements; and the commitment reports for the economic development fund. The following topics pertaining to this item were discussed: the payoff for the seawall bonds; refinancing of seawall bonds; the status on the ACCIQN and internship programs; and the co- promotion fund. A 7. A motion was made by Mr. Escobedo to approve the financial report, seconded by Mr. Tamez and passed. purchase of SIX trucK ariving simuiaiors io oe usea Tor ineir Mum -use Trans ortation Training to provide trall ni no for students to obtain their Commercial Driver's License (CDL).. — Mike Culbertson, Corpus Christi Economic Development Corporation (EDC), explained that Del Mar College is requesting a grant in the amount of $750,000 for the purchase of six (6) truck driving simulators. Dr. Gulley announced that he would abstain from the discussion and vote on this item. Mary McQueen, Del Mar College, referred to a powerpoint presentation including the purpose of the project; the components of the equipment; the financial commitment; and benefits. David Ainsworth, Ainsworth Trucking, provided an industry perspective on the demand for truck drivers. The following topics pertaining to this item were discussed: recruitment of students; drug testing requirements; timeframe for graduating from program; longevity of the simulators; the number of CDL drivers lost in the community due to Eagle Ford Shale; and the types of transmission. Mr. Escobedo made a motion to approve Item 6, seconded by Mr. Tamez. Director of Financial Services Constance Sanchez requested that the board amend the motion to appropriate $750,000 out of the unreserved fund balance in Fund No. 1140 Business /Job Development Fund. Mr. Escobedo amended the motion to include appropriation language, seconded by Mr. Tamez and passed (Gulley abstained). Mr. Edwards made a motion to approve Item 6 as amended, seconded by Mr. Escobedo and passed (Gulley abstained). 8. Review and update of th current balance of funds available for spending in the Arena Marketing Co- Promotion Fund. — Director of Financial Services Constance Sanchez stated that the remaining balance of the co- promotion fund including the action on Item 7 is $11,000. President Salazar asked that an item be placed on a future agenda recommending funding for the arena marketing co- promotion fund. Promotion Fund as available for spending. - President Salazar referred to Item 7. Mr. Edwards made a motion to approve Item 7, seconded by Mr. Escobedo and passed. Type A Meeting March 19, 2012 — Page 3 9. Motion authorizing expenditures of up to $75,000 to hire LNV Engineering and Kleinfelder Testing for the Preliminary investigation of re airs necessar to correct the deficiencies of the American Bank Center Loading dock, the cost of repairs, and a repair methodology. — Mr. Tamez announced that he would abstain from the discussion and vote on this item. Interim Director of Engineering Services Dan Biles explained that staff is requesting $75,000 to hire LNV for the structure analysis and Kleinfelder for the geotechnical forensic analysis of the loading dock at the American Bank Center. Mr. Biles stated that the analysis should take approximately 75 days to complete and staff will provide a report to the board in approximately 3 months. The following topics pertaining to this item were discussed: the funding source; the location of the loading dock and the size. Mr. Edwards made a motion to approve Item 9, seconded by Mr. Escobedo. Director of Financial Services Constance Sanchez requested that the board amend the motion to appropriate $75,000 out of the unreserved fund balance Fund No. 1130 arena fund. Mr. Edwards amended the motion to add the appropriation language, seconded by Mr. Escobedo and passed (Tamez abstained). Mr. Edwards made a motion to approve Item 9 as amended, seconded by Mr. Escobedo and passed (Tamez abstained). 10. Report of TDL Plastics, Inc's compliance with all performance requirements in their agreement, entitling them to the first of five $10,000 payouts. — Mike Culbertson, EDC, stated that TDL Plastics LLC is in compliance with the contract and is eligible for payment. 11. Motion to appropriate $4,740 from the unreserved fund balance in Fund 1140 Business /Job Development Fund to increase funding to the Oneta Company — Director of Financial Services Constance Sanchez explained that the board took action to increase the funding at the February 27 meeting, and this item will appropriate the difference from the fund balance. Mr. Tamez made a motion to approve Item 11, seconded by Dr. Gulley and passed. 12. Update on Affordable Housing Program currently funded by Tvpe A Board funds- Director of Neighborhood Services Eddie Ortega provided a brief overview of the affordable housing programs including the builders new construction program; the existing inventory program and the projects awarded through the Request for Proposal process. The following topics pertaining to this item were discussed: the available balance from the FY2010 -2011 builders' new construction program; the total funds awarded through RFP; and the success of the existing inventory program. 13. Information related to use of Type A Funds for Tourism — Charlotte Yochem, Legal, provided a detailed memo in the packet on the uses of Type A funds for tourism. Ms. Yochem explained that Type A funds can be used on certain Type B projects, which can Type A Meeting March 19, 2012 — Page 4 include tourism, that are not required to create or retain primary jobs, but only with voter approval. Ms. Yochem stated that Type A funds can be used for tourism without voter approval for infrastructure projects that are narrowly defined to promote or develop new or expanded business enterprises. The following topics pertaining to this item were discussed: whether Type A funds can be used for the Schlitterbahn project and historical sites; and examples of tourism projects that don't create jobs. President Salazar directed staff to place an item on a future agenda to discuss whether Type A funds could be used for the Schlitterbahn project. 14. Information related to use of email voting Type A Board — Ms. Yochem reported that the board cannot vote through email because it would violate the Open Meetings Act. G. Public Comment - None. H. Identify Future Agenda Items -- Director of Financial Services Constance Sanchez stated that staff would include the following items on a future agenda for consideration: refinancing the seawall funds; the $12,067 to reprogram funds for affordable housing; obligating future Type A funds; the $500,000 for the co- promotion fund; the use of Type A funds for Schlitterbahn; and an economic impact report from SMG. Admournment There being no other business to come before the board, President Salazar adjourned the meeting at 5:09 p.m.