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07/03/2009-4A-Minutes-RegularMINUTES:4ASANGER TEXAS INDUSTRIAL DEVELOPMENT CORPORATION July 30, 2009 MEMBERS PRESENT:Bill Fuller, Vickie Jenkins, Fred Yeatts,Gary Bilyeu MEMBERS ABSENT:Carroll McNiell OTHERS PRESENT:City Manager Mike Brice, City Secretary/Asst. City Manager Rose Chavez 1.Call Meeting to Order. President Fuller called meeting to order. 2.Approval of Minutes: May 27, 2009 Motion was made by Vickie Jenkins to approve the minutes of May 27, 2009. Seconded by Fred Yeatts. Motion carried unanimously. 3.Discussion on Purchasing Additional Industrial Land. City Manager advised he was approached by a representative of Ampco who is trying to sell several tracts of lands for the owners. There is a tract consisting of .9 acres north of the We Package It building that they have for sale. The property is not conducive for development on its own.There is only one road right-of-way to the property, but it is not developed.This property has no value to Ampco and they have no use for it. They want to know if the 4A would be interested in purchasing this property to go along with the We Package It property.This area could be utilized for outside storage or additional parking without usin g the property that is around the We Package It building,then the entire block can be reserved for future development.The owners want $16,500 for the property. There was a discussion concerning the property and the sale price. Gary Bilyeu asked how this price compares with other properties. The City Manager advised that he consulted with Steve Watkins with Elk River to get an opinion. Mr. Watkins advised that commercial property is selling for $1.00 to $2.00 a sq.ft. if the property can be developed.The City Manager advised that he did offer a lesser price and ended with $16,500. Discussion continued concerning the advantage of this property to be utilized for parking and future use of reserving the entire block around the We Package It building for future development. Vickie Jenkins indicated that the Board has made a substantial investment in purchasing the We Package It property and the $16,500 is relatively a small price to pay to make the property more valuable. President Fuller indicated that he would like for them to take less for the property. Vickie Jenkins amended to authorize the City Manager to make an offer up to $16,500 for the .9 acre plus the closing costs. Seconded by Gary Bilyeu. Motion carried unanimously. 4.Consider and Discussion Expending 4A Funds for Extension of a Wastewater Line to Industrial Property North of the Wal-Mart Distribution Center. The City Manager discussed that Dr.Wolksi is getting ready to build an extension of View Road north of Wal-Mart that will start on the service road and go back to the railroad tracks.It will open this property up for industrial development. The City Manager advised that when the Wal-Mart and Wolski lawsuit was settled, one of the terms in the settlement was that when Dr. Wolski got ready to build that road the City would extend water and wastewater lines to the road.The City has a contractual obligation to do this work. The advantage to the City is that it will open several thousand acres for industrial development. The other issue he addressed was the sewer line coming back south from that area is undersized and this line will be rebuilt to handle the growth. This will help with development on the west side of the Interstate. The 4A funded a project a few years ago where they bored under the interstate and installed casing for a future wastewater line.This new line will help make servicing the west side of the interstate possible. He proposes the following for consideration: The wastewater line to Wal-Mart is a 6-inch and it will be replaced with a 15- inch line and extended on up to View Road Bringing a 20-inch water line from Lois Road from the water tower then going north with a 12-inch water line to View Road The estimated cost for these two projects is $700,000 to $800,000 and does not include the interceptor line south Fund the projects with existing funds from water and wastewater tap fees and excess bond funds without creating future debt. The bond funds will pay for all the interceptor sewer line to the south and for half of the line going north. The line going north will cost an estimated $200,000 Request from 4A $100,000 and the City will pick up the difference City Manager continued to discuss the projects. Discussion concerning the interceptor sewer line going north and the funding.The City Manager advised that the 4A funds can be the secondary funds. The estimated cost for these projects was determined by our City Engineer, and KSA,the consulting firm that is conducting the water and wastewater study.There was discussion on the time-line and the bid process for the projects. Discussion concerning the loan payments to Prosperity Bank and future sales tax revenues. President Fuller asked when Dr. Wolski will be ready to start the road. The City Manager discussed that the City is entering into an interlocal agreement with the County. The County is committed to pay $300,000 as part of the settlement agreement for the construction of the road. Dr. Wolski is waiting for the City to complete the interlocal agreement with the County and to complete a development agreement with him before he proceeds.Discussion continued. Motion was made by Gary Bilyeu to authorize up to $100,000 for the north extension of the wastewater lines project and that the 4A funds be secondary to the CIP funds. Seconded by Vickie Jenkins. Motion carried unanimously. 5.Consider and Discussion of Fiscal Year 2009/2010 Budget. City Manager reviewed the proposed budgets for 2009/2010. The projected revenues were $255,900 and total expenditures were $62,587. If the Board does not consider any future projects,the balance of revenues over expenditures will be $187,663.This does not include any fund balance for the end of the year.The City Manager discussed that the Economic Development budget was cut,reducing the transfer from $25,000 last year to $20,000 this year.The budget in Economic Development includes the utility bills for the building at 103 Bolivar and minor repairs.A brief discussion followed concerning the transfer and the proposed budget. Motion was made by Fred Yeatts to accept the 2009/2010 Budget as presented. Seconded by Gary Bilyeu. Motion carried unanimously. 6.Review Financials. City Secretary reviewed the financials and the total funds in their checking, money market and their certificate of deposits. There was discussion concerning current investment strategies. Vickie Jenkins commented the importance of having funds to cover their debt payments; however, their funds must be as liquid as possible. 7.Adjournment. President Fuller adjourned the meeting.