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Home My WebLink About1997.04.10_OEDA Agendar , PUBLIC NOTICE OF THE MEETING OF THE OWASSO ECONOMIC DEVELOPMENT AUTHORITY TYPE OF MEETING: DATE: TIME: PLACE: Regular April 10, 1997 10:00 a. m. Owasso City Hall Lower Level Conference Room 207 S Cedar, Owasso, Oklahoma Notice and agenda filed in the office of the City Clerk and posted on the City Hall bulletin board at 4:00 p.m. on Friday, April 4, 1997. Marcia utwell, City Jerk AGENDA 1. Call to Order 2. Roll Call 3. Request Approval of the Minutes of March 13, 1997 Regular Meeting. Mr Anderson Attachment #3 OWASSO ECONOMIC DEVELOPMENT AUTHORITY APRIL 10, 1997 PAGE 2 4. Request Approval of Claims. Mr Anderson Attachment #4 5. Presentation of Financial Report. Ms Bishop Attachment #5 6. Consideration and Appropriate Action Relating to a Discussion of Issues Associated with Potential Expansion of Precision Industries Facilities. Mr Ray Attachment #6 7. Presentation of Status Report Relating to Current Projects. Mr Ray 8. Presentation of Status Report Relating to Current Prospects. Mr Ray OWASSO ECONOMIC DEVELOPMENT AUTHORITY APRIL 10, 1997 PAGE 3 9. Report from OEDA Manager OWASSO ECONOMIC DEVELOPMENT AUTHORITY MINUTES OF REGULAR MEETING March 13, 1997 The Owasso Economic Development Authority met in regular session on Thursday, March 13, 1997 in the Owasso City Hall Conference Room per the Notice of Public Meeting and Agenda posted on the City Hall bulletin board at 4:00 p.m. on Monday, March 10, 1997. PRESENT ABSENT STAFF PRESENT Frank Enzbrenner Tom Kimball Rodney Ray Gary Akin Joe Ramey Buz Walker Brenda Lawrence (left at 11:10 a.m.) Sherry Bishop Alan Anderson Robert Carr Bill Retherford Phil Lutz Marsha Hensley ITEM 1: CALL TO ORDER Chairperson Alan Anderson called the meeting to order at 10:13 a.m. and declared a quorum present. ITEM 2: ROLL CALL ITEM 3: REQUEST APPROVAL OF MINUTES OF FEBRUARY 13 1997 REGULAR MEETING Mr. Retherford moved to approve the minutes of the February 13, 1997 Regular Meeting written. Motion was seconded by Mr. Alvin. A vote on the motion was recorded as follows: Anderson - Yes Akin - Yes _ Lawrence - Yes Enzbrenner - Yes Retherford - Yes The motion carried 5 -0. ITEM 4: REQUEST APPROVAL OF CLAIMS Mr. Enzbrenner moved to approve the current claims as submitted. Motion was seconded by Mr. Retherford. A vote on the motion was recorded as follows: Anderson - Yes Akin - Yes Lawrence - Yes Enzbrenner - Yes Retherford - Yes OWASSO ECONOMIC DEVELOPMENT AUTHORITY March 13, 1997 Page No. 2 The motion carried 5 -0. ITEM 5: PRESENTATION OF FINANCIAL REPORT Report was given by Ms. Bishop. ITEM 6: CONSIDERATION AND APPROPRIATE ACTION RELATING TO A REQUEST FOR APPROVAL OF AN EXPENDITURE OF 1600 TO FORENSIC PHOTOGRAPH FOR DEVELOPMENT OF A PRESENTATION TOOL USING AERIAL PHOTOGRAPHY OF THE CITY OF OWASSO. Mr. Ray briefed the Authority on the background of Doug Henderson and his digitized computer photo mapping business. Mr. Henderson was introduced and presented a demonstration of test photos and a preliminary presentation package to the Authority. Mr. Henderson discussed the impact this presentation system could have to the City of Owasso. He also discussed the possibility of this system being a valuable presentation and planning tool. Motion was made by Mr. Enzbrenner to approve the expenditure of $1600.00 for Forensic Photograph for a presentation package. Motion was seconded by Ms. Lawrence. A vote on the motion was recorded as follows: Anderson - Yes Akin - Yes Lawrence - Yes Enzbrenner - Yes Retherford - Yes The motion carried 5 -0. ITEM 7: CONSIDERATION AND APPROPRIATE ACTION RELATING TO A REQUEST TO RATIFY AN ACTION TAKEN BY THE CITY MANAGER TO EXPEND FUNDS TO STAKE INFRASTRUCTURE ROUTES FOR OAK TREE BUSINESS PARK, APPROVAL OF A CONTRACT WITH THE ENGINEERING FIRM. Mr. Ray presented the report to the Authority. He stated Tuttle and Associates was to do the construction staking for the sanitary sewer survey, however, Tuttle was not able to do the surveys. Requests were issued for quotes to provide sewer line staking with Cantrell and Associates receiving a low quote of $3,500.00. The service for drainage structures are to be staked by a surveyor and Cantrell and Associates provided a $2,200.00 quote on this procedure. Mr. Carr presented a brief explanation regarding problems with the sewer line along the east side of the property. Mr. Cantrell investigated this problem and found the manholes in the water line. Cantrell and Associates will redesign the sewer system, do the easements and profiles resurvey the manholes 10' over for an additional $2,800.00 making the total amount $8,500 and / �I i v� 'W 00. �Pj OWASSO ECONOMIC DEVELOPMENT AUTHORITY March 13, 1997 Page No. 3 After lengthy discussion, motion was made by Ms. Lawrence to approve an expenditure of $8,500.00 to Cantrell & Associates for restaking and redefining the wastewater collection line for the ONG project and authorize the staff to initiate an evaluation of whether funds can be recovered from Mr. Tuttle. Motion was seconded by Mr. Retherford. A vote on the motion was recorded as follows: Anderson - Yes Akin - Yes Lawrence - Yes Enzbrenner - Yes Retherford - Yes The motion carried 5 -0. ITEM S: CONSIDERATION AND APPROPRIATE ACTION RELATING TO A PROPOSAL TO AIR OKLAHOMA SUCH PROPOSAL MAKING A QUALIFIED OFFER FOR ASSISTANCE TO THE COMPANY AS AN INCENTIVE FOR LOCATING THE FIRM'S HEADQUARTERS IN OWASSO. No action was taken on this item. ITEM 9: REPORT FROM OEDA MANAGER None ITEM 10: None ITEM 11: NEW BUSINESS None ITEM 12: ADJOURNMENT Mr. Retherford moved to adjourn, seconded by Mr. Enzbrenner. A vote on the motion was recorded as follows: Anderson - Yes Akin - Yes Lawrence - Yes Enzbrenner - Yes Retherford - Yes OWASSO ECONOMIC DEVELOPMENT AUTHORITY March 13, 1997 Page No. 4 Motion carried 5 -0 and the meeting was adjourned at 11:30 a.m. Alan Anderson, Chairperson Date Approved CI'<Y OP I,IASSO OWASSO ECONOMIC DE". A'JT ?OP' =T° 4: 01;', 97 14 :53:47 UP CLATMCI FEPOPT PO # VENDOR DESCRIPTION -- -- -- - --- ------- -- ---------- - - - - -- ---- --- -- ----- - - - - -- OFtG PROJECT --- --- ---- --------- ----- - - - - -- 972057 CANTF.ELL & AS'SOC:IATES INC S TAH T - OAHTPEc_ PAP`` r NG 972i1'o' E;F.'O;;N CONSTRUCTION CO Ot #3 WORM C£FITER 97216A CANTRELL 8' ASSOCIATES INC SURVEY ON +G EASEMENTS DEPARTMENT TOTAL = = = =. PUMP TOTAL CPAND TOTAL APAPVP c.?. r_E, AMOUNT -- ------- - - - --- :'44.00 131,169.10 - 1800.00 185,!59.14 C. 1.85,'!69. i0 I ------- ------------------------- ------------------------------ ----------------- C. -1 7 T u ASSOCIATES !IT- STAKIH-- 0 iqr;�v rp 1 U ::::'F:'11? L A -- ------------- U ------------- 6 9 - - - - - - - - - - - --- illo -- ----------1---- City of Owasso Owasso Economic Development Authority Schedule of Revenues and Expenses For the Month Ending March 31, 1997 Retained earnings 07/01/96 Retained earnings 03/31/97 YTD $0.00 3,750.00 0.00 2,202.71 5,952.71 90.50 3,486.36 0.00 3,576.86 2,375.85 327,861.14 (315,783.61) 12,077.53 14,453.38 $23,019.91 $37,473.29 MTD Operating income: Transfer from City - General Fund $0.00 Contributions 0.00 Sale of property 0.00 Other 0.00 Total revenues 0.00 Operating expenses: Materials & supplies 0.00 Services & other charges 1,187.50 Capital outlay 0.00 Total expenses 1,187.50 Operating income (loss) (1,187.50) Non - operating income (expenses): Proceeds of construction loan 158,385.60 ONG Work Center Project (158,531.77) Total non - operating income (expenses) (146.17) Net income (loss) (1,333.67) Retained earnings 07/01/96 Retained earnings 03/31/97 YTD $0.00 3,750.00 0.00 2,202.71 5,952.71 90.50 3,486.36 0.00 3,576.86 2,375.85 327,861.14 (315,783.61) 12,077.53 14,453.38 $23,019.91 $37,473.29 ?ate e i � T t / 1 t t 't :I t t� t t pope fl L I{--- 65-- ---i - -_ EXIS77NG : I'•I PARKING .I SPACES I , � - ci EXISnNG �Q1A€ -_. L- _ BUILDING j L-- I - .-� - I- - �- . ......... v 25' _ 290• -_ ..... i 0 50 0 SCALE I ;1 :N I 1 I 1 0 Ito I I I t PRECISION COMPONENTS PARK/NGIEXPANSION DATE: 7 -10 -95 PREPARED BY THE CITY OF OWASSO PUBLIC WORKS DEPARTMENT PRECISION MACHINE & MANUFACTURING COMPANY AND SUBSIDIARY December 31, 1996 Consolidated Financial Statements and Supplementary Information With Accountant's Compilation Report KEITH D. MARTIN, CPA Tax, Audit, Accounting & Consulting 1 135 S. Florence Place Tulsa, OK 74104 Accountant's Compilation Report The Board of Directors Precision Machine and Manufacturing Company Grove. OK I have compiled the accompanying balance sheet of Precision Machine and Manufacturing Company (PMM) and its wholly owned subsidiary, Precision Components Company (PCC) as of December 31, 1996 and the related income statement for the six months then ended, and the accompanying supplementary information contained in Schedules I through IV, which are presented for supplementary analysis purposes, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. A compilation is limited to presenting in the form of financial statements information that is the representation of management. I have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or any other form of assurance on them. Management has elected to omit substantially all of the disclosures and the statement of cash flows required by generally accepted accounting principles. If the omitted disclosures and statement of cash flows were included in the financial statements, they might influence the user's conclusions about the Company's financial position, results of operations and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters. �L�H Keith D. Martin, CPA February 19, 1997 Member of AICPA Telephone (918) 584 -3127 PRECISION MACHINE AND MANUFACTURING COMPANY AND SUBSIDIARY Balance Sheet December 31, 1996 Assets Current assets: Cash Accounts receivable Inventories Prepaid expenses Total current assets Property, plant and equipment: Land Buildings and improvements Machinery and equipment Vehicles Furniture and fixtures Leasehold improvements Accumulated depreciation Net property, plant and equipment Other assets: Capitalized product development costs Loan origination fees Deposits See accountant's compilation report. $ 82,670 1,361,744 3,676,314 23,646 5,144,374 26,450 543,243 6,238,311 174,775 260,963 302,225 7,545,967 (3,089,743) 4,456,224 _499,239 6,682 2,147 508,068 $ 10,108,666 (continued) PRECISION MACHINE & MANUFACTURING COMPANY AND SUBSIDIARY Balance Sheet, Continued December 31, 1996 Liabilities and Stockholder's Equitv Current liabilities: Accounts payable Notes payable Income taxes payable Current maturities of long -term debt Current maturities of obligations under capital leases Loans from stockholder Accrued expenses Customer deposits Total current liabilities Deferred tax liability Obligations under capital leases Long -term debt Total liabilities Stockholder's equity: Common stock, $1 par value; 50,000 shares authorized; 19,745 shares issued and outstanding Retained earnings Total stockholder's equity See accountant's compilation report. $ 600,152 531,900 227,000 980,656 2,339 249,725 240,299 866,779 3,698,850 179,000 15,210 4,806,741 8,699,801 19,745 1,389,120 1,408, 865 $ 10,108,666 PRECISION MACHINE AND MANUFACTURING COMPANY AND SUBSIDIARY Income Statement Six Months ended December 31, 1996 Sales $ 6,927,811 Sale of scrap 79,303 Other 69,334 Total sales 7,076,448 Cost of sales 4,960,247 Gross profit 2,116,201 Selling, general and administrative expenses 651,970 Income from operations 1,464,231 Other income (expense) Interest expense (304,158) Other 18,013 (286,145) Income before income taxes 1,178,086 Current income tax expense _ 227,000 Deferred income tax expense 519,000 Net income $ 432,086 See accountant's compilation report. PRECISION MACHINE & MANUFACTURING COMPANY AND SUBSIDIARY Consolidating Balance Sheet December 31, 1996 Assets Current assets: Cash Accounts receivable Interest receivable Inventories Prepaid expenses Total current assets Property, plant and equipment: Land Buildings and improvements Machinery and equipment Vehicles Furniture and fixtures Leasehold improvements Accumulated depreciation Net property, plant and equipment Other assets: Intercompany receivable Investment in subsidiary Capitalized product development costs Loan origination fees Deposits See accountant's compilation report. Schedule I Consolidated PMM PCC Eliminations Balance $ 42,879 $ 39,791 $ - $ 82,670 904,758 456,986 - 1,361,744 256,731 - (256,731) - 1,970,537 1,705,777 - 3,676,314 10,064 13,582 - 23,646 3,184,969 2,216,136 (256,731) 5,144,374 1,450 25,000 - 26,450 - 543,243 - 543,243 3,751,778 2,486,533 - 6,238,311 58,227 116,548 - 174,775 193,873 67,090 - 260,963 302,225 - - 302,225 4,307,553 3,238,414 - 7,545,967 (2,400,642) (689,101) - (3,089,743) 1,906,911 2,549,313 - 4,456,224 1,726,346 (1,726,346) 1,000 (1,000) - - 499,239 499,239 - 6,682 6,682 1,161 986 2,147 1,728,507 506,907 (1,727,346) 508,068 $ 6,820,387 $ 5,272,356 $ 1,984,077 $ 10,108,666 (Continued) PRECISION MACHINE & MANUFACTURING Schedule I COMPANY AND SUBSIDIARY Consolidating Balance Sheet, Continued December 31, 1996 Consolidated PMM PCC Eliminations Balance Liabilities and Stockholder's EquitV Current liabilities: Accounts payable $ 413,162 $ 186,990 $ - $ 600,152 Notes payable 430,900 101,000 - 531,900 Income taxes payable 227,000 - - 227,000 Current maturities of long -term debt 596,510 384,146 - 980,656 Current maturities of obligations under capital leases - 2,339 - 2,339 Loans from stockholder 249,725 - - 249,725 Accrued expenses 96,009 401,021 (256,731) 240,299 Customer deposits 866,779 - 866,779 Total current liabilities 2,880,085 1,075,496 (256,731) 3,698,850 Intercompany payable - 1,726,346 (1,726,346) - Deferred tax liability 56,000 123,000 179,000 Obligations under capital leases - 15,210 15,210 Long -term debt 1.937,627 2.869,114 4,806,741 Total liabilities 4,873,712 5,809,166 (1,983,077) 8,699,801 Stockholder's equity: Common stock, $1 par value; 50,000 shares authorized; 19,745 shares issued and outstanding 19,745 1,000 (1,000) 19,745 Retained earnings (deficit) 1.926.930 (537,810) 1,389,120 Total stockholder's equity See accountant's compilation report.' 1,946,675 (536,810) (1,000) 1,408,865 $ 6,820,387 $5,272,356 $(1,984,077) $ 10,108,666 PRECISION MACHINE & MANUFACTURING COMPANY AND SUBSIDIARY Consolidating Income Statement Six Months ended December 31, 1996 Sales Sale of scrap Other Total sales Cost of sales Gross profit Selling, general and administrative expenses Income from operations Other income (expense): Interest income Interest expense Other Income before income taxes Current income tax expense Deferred income tax expense Net income See accountant's compilation report. Schedule 1l Consolidated PMM PCC Eliminations Balance $ 3,152,058 $ 3,852,259 $ (76,506) $ 6,927,811 63,864 15,439 - 79,303 15,830 53,504 69,334 3,231,752 3,921,202 (76,506) 7,076,448 2,360,255 2,667,521 (76,506) 4,951,270 871,497 1,253,681 - 2,125,178 290,570 370,377 - 660,947 580,927 883,304 - 1,464,231 71,802 - (71,802) - (146,371) (229,589) 71,802 (304,158) 18,013 - 18,013 56,556 (229,589) - (286,145) 524,371 653,715 1,178, 086 227,000 - 227,000 93,000 426,000 - 519,000 $ 204,371 $ 227,715 $ $ 432,086 $ 2,360,254 $ 2,667,521 $ 76,506 $ 4,951,269 See accountant's compilation report. PRECISION MACHINE & MANUFACTURING Scheme In COMPANY AND SUBSIDIARY Consolidating Schedule of Cost of Sales Six Months ended December 31, 1996 Consolidated PMM PCC Eliminations Balance Hardware $ 26,254 $ 516,415 $ - $ 542,669 Outside services 172,385 479,485 (76,506) 575,364 Outside manufacturing 159,946 - - 159,946 Direct labor 415,122 557,048 - 972,170 Support labor 374,025 278,741 - .652,766 Raw materials 484,080 - - 484,080 Tooling and development 91,164 18,570 - 109,734 Shop supplies 148,343 219,708 - 368,051 Manufacturing casual labor 324 - - 324 Plant maintenance 78,488 46,276 - 124,764 Freight 23,177 62,271 - 85,448 Equipment rent - 210 - 210 Inspection tools - 15,103 - 15,103 Electricity 31,362 30,623 - 61,985 Gas, water and sanitation 2,511 2,201 - 4,712 Insurance - workers compensation 28,326 24,054 - 52,380 Insurance - health 134,013 46,437 - 180,450 Building rent 15,000 6,203 - 21,203 Payroll taxes 71,660 73,033 - 144,693 Employee benefits - 1,771 - 1,771 Depreciation - machinery and equipment 166,050 150,834 - 316,884 Depreciation - leasehold improvements 10,700 - - 10,700 Depreciaton - buildings - 6,127 - 6,127 Amortization - 91,339 - 91,339 Vehicle expense 13,896 6,298 - 20,194 401(k) 22,548 7,788 - 30,336 Scrap - 41,354 - 41,354 Purchase discounts (1,103) (1,103) Overhead absorption (109,120) (13,265) - (122,385) $ 2,360,254 $ 2,667,521 $ 76,506 $ 4,951,269 See accountant's compilation report. PRECISION MACHINE & MANUFACTURING Schedule IV COMPANY AND SUBSIDIARY Consolidating Schedule of Selling, General and Administrative Expense Six Months ended December 31, 1996 Consolidated PMM PCC Eliminations Balance Salaries $ 117,102 $ 167,998 $ $ 285,100 Salaries - officer's 53,326 36,653 - 89,979 Advertising 1,246 1,628 - 2,874 Bad debts - - - Casual labor 765 576 1,341 Education 2,246 661 2,907 Charitable contributions 100 2,215 - 2,315 Dues and subscriptions 957 1,443 2,400 Employee benefits - 1,008 1,008 Insurance - workers' compensation 1,198 3,907 - 5,105 Insurance - health and accident 9,839 14,152 - 23,991 Insurance - casualty 8,288 7,687 15,975 Insurance - vehicle 1,057 2,629 3,686 Legal and professional 2,695 46,167 - 48,862 Miscellaneous expense - - - Office expense 14,769 11,272 26,041 Computer software 2,627 7,938 10,565 Computer supplies 5,311 4,936 - 10,247 Repairs and maintenance 10,560 9,716 20,276 Other expenses - 654 654 Service charges 95 - - 95 Taxes - payroll 13,050 13,532 - _ 26,582 Taxes - other 7,445 2,885 - 10,330 Telephone 7,572 6,234 - 13,806 Travel 3,841 7,471 - 11,312 Entertainment 2,059 3,897 - 5,956 401(k) 8,022 606 - 8,628 Amortization - - - - Depreciation - vehicles 3,350 10,448 - 13,798 Depreciation - furniture and fixtures 13,050 4,064 - 17,114 $ 290,570 $ 370,377 $ - $ 660,947 See accountant's compilation report.