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Min - City Council - 1992 - 03/11 - WorkshopI I ALLEN CITY COUNCIL SPECIAL CALLED WORKSHOP ECONOMIC DEVELOPMENT BOARD OF DIRECTORS MARCH 11, 1992 Present: Joe Farmer, Mayor Councilmembers Kevin Lilly Mickey Christakos David Bishop Mike Nichols Steve Terrell Gary Edstrom, Mayor Pro Tem City Staff: Jon McCarty, City Manager Judy Morrison, City Secretary David Pitstick, Economic Development Coordinator WORKSHOP SESSION - 6:30 P.M. The Council enjoyed dinner prior to the workshop session. With a quorum of the Councilmembers present, the special called workshop session of the Allen City Council and Economic Development Board was called to order by Mayor Farmer at 6:30 p.m. on Wednesday, March 11, 1992, in the Council Chamber of the Allen Municipal Annex, One Butler Circle, Allen, Texas. Discuss Items Related to the Operation of Economic Development Board of Directors (Agenda Item II) Since the 1/2@ sales tax election passage, certain steps need to be accomplished, one of which is the appointment of a Board of Directors for the Allen Economic Development Corporation. The Council has a desire to establish some rules for use by the Board in development of their by-laws. Proposed operating guidelines were presented to the Council. Clarification will be sought regarding the relationship between the Council and the Board, the Board and Staff, and the Board and each other. Other information to be considered is information taken from the CIIP meetings and impressions left with the general citizens prior to the 1/2t sales tax election. Discussion was held regarding the "Allen Design" as presented by the Council and actual state legislation. ALLEN CITY COUNCIL WORKSHOP SESSION MARCH 11, 1992 PAGE 2 Council reviewed the list of issues presented in the "Allen Design" and other related issues affecting operations of the Allen Economic Development Corporation. Discussion was held regarding the initial corporation board and future boards as they are appointed. Since the Council took certain ideas to the community prior to the election on this matter, Council would also like the Economic Development Corporation Board to incorporate certain of these concepts in the development of their by-laws. It was felt that the Board needed to feel like they really have the authority to develop these by-laws and that Council would like certain input with regard to certain understandings presented. The type of document to be presented to the Board was discussed --whether a completed by-law document should be presented or only certain "bullet" items should be presented to the Board for consideration. Council discussed the initial corporation board. Places 1, 3, and 5 terms will expire September 30, 1993. Places 2 and 4 will expire September 30, 1992. These first appointments will not be considered as full-term. Each place will have the opportunity to serve two full terms. The Board needs to decide whether each place shall retain a representative of the particular entities now represented. Discussion was held regarding the present financial commitments by the alliance members and the need for those commitments to be modified. Presently the split is 50% city, 25% school board, 25% chamber for a total of $80,000. Much discussion was held regarding the use of tax monies for the administrative function of the Economic Development Department. It was suggested that $60,000 of the Economic Development Department will be considered administrative. One-half of that total amount, or $30, 000, will be considered as administrative fees as required of the City for functioning of the department. The remaining $30,000 would continue to be split by the triad so that the City of Allen would provide 50% or $15,000, the school board would provide 25%, or $7,500, and the chamber would provide 25%, or $7,500, to the administrative costs of the Economic Development Department. Discussion was held regarding this funding formula. Other financial obligations to the Board might need to be assessed by the City for performing special projects directed by the Board. Discussion was held regarding the budget to be brought forth from the Economic Development Department. Council agreed that a single budget would be the best approach to take at this time. The Board can make recommendations of certain expenditures for Council approval. The Economic Development Board needs to prepare a budget just like other Boards and Commissions, but the Economic Development Coordinator and the City will be responsible for that budget. Discussion was held regarding certain legal aspects of the formation of this board and their duties. It was agreed that an attorney needed to be retained for counsel on such things as bidding procedures, etc. �I ALLEN CITY COUNCIL WORKSHOP SESSION MARCH 11, 1992 PAGE 3 Discussion was held regarding the proposed operating guidelines for the Allen Economic Development Corporation. The City Council will approve the annual budget of the Economic Development Corporation. The City Council will approve issuance of financial obligations (such as bonds) for industrial development projects. The City Council will approve major revisions to the annual budget as recommended by the Economic Development Corporation Board of Directors to meet the needs of new industrial projects and/or programs (board is to define the word "major" new industrial projects.) The City Council will approve special economic development incentives. CITY COUNCIL AND ECONOMIC DEVELOPMENT CORPORATION BOARD OF DIRECTORS City Council • Approve the annual budget of the Economic Development Corporation. • Approve a level of approval. Bond issuance to be approved by Council. • Approve major revisions to the annual budget as recommended by the Economic Development Corporation Board of Directors to meet the needs of new j industrial projects and/or programs. Board to define word "major." • Approve special economic development incentives (tax abatement, waivers to development and construction fees, cost participation for infrastructure improvements). • Participate in community -wide economic development programs including business development day. • Declare vacancies and make appointments to the Economic Development Corporation Board of Directors. • Approve corporation by-laws. Board of Directors • Develop an annual budget. • Develop an action -plan outlining economic development programs and activities on an annual basis. • Assess local industrial programs and projects and pay for or purchase, lease or loan money for land, buildings and/or equipment and other special programs to support local industrial development. Schedule semi-annual meetings with the City Council for updates on economic development programs. ALLEN CITY COUNCIL WORKSHOP SESSION MARCH 11, 1992 PAGE 4 • Develop quarterly financial reports on project and programs to support local economic development. • Develop, and from time to time, recommend revisions to the corporation by- laws. • Serve as primary economic development arm of the city. BOARD OF DIRECTORS AND ECONOMIC DEVELOPMENT STAFF • Work tasks requiring substantial involvement must be coordinated through the City Manager/ Economic Development Staff that Staff (Public Works, Community Development, etc.) be used to support work of Corporation Board. • Requests for special consultants (other than city staff) be made through Economic Development Coordinator. • Make Economic Development Staff aware of current issues and areas of opportunity of Economic Development importance within community (i. e. areas of opportunity). Economic Development Staff • Produce agendas and minutes for Corporation Board meetings. • Support Board in their responsibilities to Council (post agendas). Develop timely analysis of proposed uses of Economic Development funds. MEMBERS OF THE BOARD OF DIRECTORS AND THE ECONOMIC DEVELOPMENT Members of the Board • Recognize and commit to work as a team, authority is to Board as a unit and not to individual members. • Declare conflict of interest when that occurs (required by state law). Prepare to do whatever is required to implement the annual work program. • Corporation Board members must comply with open records and open meetings act. • The Corporation Board recognizes the need for staff to be represented in addressing community economic development activities. ALLEN CITY COUNCIL WORKSHOP SESSION MARCH 11, 1992 PAGE 5 Council requested further consideration on: • Evaluation of Economic Development Coordinator to be handled by the City Manager. • Recognition of the City Charter --Council has direction only of the City Manager, City Secretary, Municipal Court Judge and City Attorney. • Board bonding needs to be reviewed prior to implementation. Items of Interest to the Council (Agenda Item III) • The City Manager was instructed to contact the State Highway Department regarding the stop sign at U.S. 75. • The Mayor related a letter he had received from a resident regarding leash laws for cats in the City of Allen. The City Manager was instructed to check other cities regarding such laws. • Two councilmembers have conflicts with the Spring Planning Session on Saturday with regard to a Republican convention. The Spring Planning Session will remain as scheduled. • Mayor Farmer and Councilmember Nichols may not be present at the next Council meeting scheduled for March 19. • Discussion was held regarding the process for investment zones. The Economic Development Board may want to look at developing an investment zone prior to a request to avoid laborious procedures. David Pitstick, Economic Development Coordinator, distributed a schedule to organize and establish the Allen Alliance Economic Development Corporation revised March 11, 1992. • Discussion was held regarding the convening of the Policy Oversight Committee in the near future. Adiourn (Agenda Item IV) MOTION: Upon a motion made by Councilmember Christakos and seconded by Councilmember Nichols, the Council voted seven (7) for and none (0) opposed to adjourn the Special Called Workshop of the Allen City Council at 10:53 p.m., on Wednesday, March 11, 1992. The motion carried. A ALLEN CITY COUNCIL WORKSHOP SESSION ? MARCH 11, 1992 PAGE 6 These minutes approved on the 19th day of March, 1992. ATTEST: — f /� /ii—� �Ok• J M , CITY SECRETARY C APPROVED: G� F m. MAYOR PRO TEM