City Council
Regular MeetingOdessa, TX · July 16, 2024
Minutes
CITY COUNCIL MINUTES
CITY OF ODESSA, TEXAS
July 16, 2024
On July 16, 2024, a workshop meeting of the Odessa City Council was held at 8:14 a.m. at
MCM Elegante, Caribbean Ballroom 1, 5200 E University, Odessa, Texas.
City Council present: Mayor Javier Joven; Council members: Mark Matta, District One;
Steven P. Thompson, District Two; Gilbert Vasquez, District Three; Greg Connell, District
Four; Chris Hanie, District Five; and Denise Swanner, At-Large.
Staff present: Norma Aguilar, City Secretary; John Beckmeyer, City Manager; Dan Jones,
City Attorney; Agapito Bernal, Deputy City Manager; Cristina Burns, Assistant City Manager;
Kaylie Banda, Director of Finance; and other members of City staff.
A quorum being present, Mayor Joven called the meeting to order, and the following
proceedings were held:
Ms. Aguilar conducted the roll call for the City Council.
Review draft of Fiscal Year 2024-25 City of Odessa Budget. Mr. Beckmeyer thanked
staff for the work on the budget. Ms. Banda explained the budget methodology with zero
based budgeting and the timeline. She reviewed the external revenue sources that included
water and sewer, sales tax and property tax. Mayor Joven stated that the increase in
property value was due to growth. Ms. Banda proposed the tax rate of $0.461999 per $100
valuation. The proposed sales tax was $50 million which was less from last year. She
reviewed the material impact factors that included vacancies which were removed. Mr.
Beckmeyer stated it was not a hiring freeze but would allow flexibility to hire efficient. Other
material impact factors include a cost-of-living adjustment of 4%, IT charges in consolidating
the software maintenance budget which eliminated duplications of services. She stated that
the zero-based budget was not a new concept as other municipalities had the methodology,
and it provided more transparency. There were 300 unfilled positions with a cost savings of
$15 million. Upcoming material costs included the classification study and the benefits
transformation. There would be an analysis of the benefits system which would provide
additional savings.
There was a break from 8:57 a.m. – 9:06 a.m.
General Fund. Ms. Banda reviewed the General Fund. Zackary Beseril explained the
conservative interest income. Council member Thompson expected a higher income. Mr.
Bernal stated that it was practice with municipalities to be conservative with sales tax and
interest income. The non-recurring expenditures were reviewed.
Water and Sewer Fund. Ms. Banda stated that there was a proposed 3% increase in water
and sewer rates. Mr. Beseril explained the history of the water rate increases. The
increases were due to increase in operational cost. The water and sewer revenue and
expenditures were reviewed.
Council Minutes
July 16, 2024
Page 2
Solid Waste Fund. Ms. Banda stated that there were rate increases over the years and
there was a proposed 3.5% rate increase. Mr. Bernal stated that there was a fall out with
the commercial accounts in 2015-2016. The increase was adjusted to the market.
Storm Water Fund. Mr. Bernal stated that the funds were no longer expended into other
places. The Fund Balance was growing.
Equipment Service Fund. Ms. Banda reviewed the Equipment Services Fund. There was
an increase in fuel to fill up the tanks. The replacement equipment was reviewed.
Information Technology Fund. Ms. Banda stated that there was in increase in charges as IT
would be handling all the expenditures for software. Mr. Bernal stated it was a shifting of
expenditures from departments to one department. It was not an increase in the budget.
Mr. Beckmeyer stated it would provide for security and operation.
Risk Management Fund. Ms. Banda reviewed the Risk Management Fund. Gallagher
would be revamping the system and it would change in the City no longer being self-insured.
Mr. Beckmeyer stated that the numbers would be slightly lower than the Risk Management
budget.
There was a break from 10:09 a.m. – 10:26 a.m.
Golf Course Fund. Ms. Banda reviewed the Golf Course Fund’s revenue and expenditures.
There was no proposed increase in green fees. Council member Thompson stated that an
adjustment in the fees was needed. He stated that there was good job with sales. Mayor
Joven asked for a comparison on green fee rates. Council member Thompson stated that
there should be a cancellation fee for no shows. Mr. Bernal stated that there were gaps with
rounds and the costs were being streamlined to maintain optimum capacity. The budget
projected to make some revenue. There would be a proposed increase of fees. Council
member Thompson stated it was a great revenue source.
Debt Service Fund. Ms. Banda reviewed the debt schedule. Council member Thompson
asked for a debt ration comparison with other cities.
Hotel-Motel Tax Fund. Ms. Banda stated that the funds were conservative. Council
member Thompson stated that a venue tax could be added for the sports complex which
was another revenue source. Mr. Beckmeyer stated that the discussion should be held on
the tax and there were other revenue sources to fund, under the economic development.
He stated that the venue tax did not impact local taxpayers.
Mayor Joven appreciated the flow of the budget. He thanked the staff. Council member
Swanner stated it was informative and easy to follow.
Property Tax Rate. Ms. Banda stated that the proposed property tax rate was based on the
preliminary value figures. A fair and equitable rate was chosen. Mr. Beseril explained the
no new revenue rate. He stated that the increase of revenue was due to new property.
Ms. Banda stated that the zero-based budget provided departments to refocus on needed
issues and presented a clearer picture. Mr. Bernal stated that the budget included the
supplementals. There was no wasteful spending and it provided better stewards of money.
Mr. Beckmeyer stated that there was a skewed vision of the budget without including the
supplemental projects. Mr. Bernal sated that it provided for transparency.
Council Minutes
July 16, 2024
Page 3
The non-recurring expenditures were reviewed. Vehicles were being replaced as they have
outlived its life. The vehicles would be placed on a schedule to be replaced every four to
five years. Mr. Bernal stated that the projects identified would be addressed and completed
during the current fiscal year.
Resolution No. 2024R-80 - Allocate $25,000,000 for the city-wide valve and line
replacement project from the Pioneer Natural Resources, USA, Inc. and the
Certificates of Obligation, series 2021. Mr. Beckmeyer stated that the first phase was to
begin replacing the valves. With the first phase, 171 valves would be replaced. There were
three responses received on the RFP and were being evaluated. There were no projects
being cut with using the Pioneer funds.
Motion was made by Council member Thompson and seconded by Council member Matta
to approve the resolution. The motion was approved by the following vote:
Aye: Joven, Matta, Thompson, Vasquez, Connell, Hanie, and Swanner
Nay: None
There was a break from 11:30 a.m. – 1:08 p.m.
Council member Hanie left the meeting.
Update on Inspections Department. Marlaina Muniz, Program Analyst, provided statistics
on the number of permits issued and inspections made. The inspections response time was
under a day. The MGO software was live with Storm Water and was more efficient. The
module for the Planning and Zoning was almost complete. There would be four additional
modules that go live by the end of August. Council member Swanner stated that the process
needed to be streamlined as she received many calls. She stated with MGO, there have
been less complaints. Gary Owens, Building Official, stated that the software held everyone
accountable. The response time was down to four hours. All types of permits were being
handled daily. An inspector made an average of 25 inspections per day. Ms. Muniz stated
there may be workshops for the contractors. She reported that the predevelopment
meetings were well attended with following meetings if necessary. She displayed MGO on
the website and provided information on the process. Mayor Joven stated a study was done
on Inspection with findings of inconsistencies and the process needed to be simplified. He
asked about the charges. Mr. Owens stated that fees have not been raised since 2018. Mr.
Bernal reported that the City was low compared to the six pick cities and fees needed to be
raised. He stated that the process needed to be in place and streamlined. The fees would
be adjusted to match the process. Mr. Bernal stated that the City encouraged development
and be attractive to vendors not a hinderance.
Update on Planning and Zoning Department and overlay. Mayor Joven stated that there
were many accidents and provided statistics. He received calls on Grant that it not be
turned into Austin 6th St. He wanted to have a form of accountability as some businesses
were not being responsible. He stated it was a quality-of-life issue. Maria Prieto, Planning
Manager, stated research was done for regulation. There was one bar Downtown and there
Council Minutes
July 16, 2024
Page 4
were businesses with a combination of restaurant and bar. There was no data on alcohol
consumption. Mayor Joven stated that the overlay zone was for the future growth of
Downtown. There would be an increase of foot traffic and enforcement would need to be
considered. Council member Matta questioned the enforcement. Mrs. Prieto reviewed the
downtown bar overlay zone. As there were more alcohol sales downtown, it created the
need for specific standards and process. The zone would improve efficiency, support
development, and ensure public safety. A specific use permit (SUP) would be required in the
zone. A zoning change would be included. Two boundaries were proposed for the bar
overlay. She reviewed options for regulation and revocation or suspension. Mayor Joven
stated this was an introduction for Council to consider for future discussion and provide town
hall meetings. The City would be proactive. Mrs. Burns reported that the SUP was more
work for planning. TABC did not enforce with the bars not operating responsibly. She
stated that there were grants for safety action plans. Mrs. Prieto stated that there could be
enforcement on parking. Assistance was needed to regulate the number of sales which
could be added to the SUP conditions to be more effective. Ms. Banda suggested required
sales tax reports and mixed beverage reports. Council member Matta asked for research on
Lubbock and Midland and how it managed the bars. Mayor Joven stated that Odessa has a
transplant in workforce.
Motion was made by Council member Swanner and seconded by Council member Vasquez
to adjourn the meeting. The motion was approved by the following vote:
Aye: Joven, Matta, Thompson, Vasquez, Connell, and Swanner
Nay: None
The meeting adjourned at 2:18 p.m.
ATTEST: APPROVED:
Norma Aguilar, TRMC, CMC Javier Joven
City Secretary Mayor
Agenda
PUBLIC NOTICE
In accordance with the Open Meetings Act, Chapter 551 of the Government
Code of Texas, notice is hereby given to all interested persons that the City Council of
the City of Odessa, Texas, will meet on Tuesday, July 16, 2024 at 8:00 a.m. at MCM
Elegante Hotel, Caribbean Ballroom 1, 5200 E. University, Odessa, Texas for the
following purpose:
1. Call to Order
2. Review draft of Fiscal Year 2024-25 City of Odessa Budget
3. Consider allocation of $25,000,000 for the city-wide valve and line
replacement project from the Pioneer Natural Resources, USA, Inc.
and the Certificates of Obligation, series 2021. (Resolution).
4. Update on Inspections Department
5. Update on Planning and Zoning Department and overlay
6. Adjourn
This Notice is being posted on the south door of City Hall and on the bulletin
board of the first floor of City Hall, Odessa, Texas, this the ______ day of July 2024 at
__________ ___.m., said time being more than seventy-two hours prior to the time at
which the subject meeting will be convened and called to order. The public notice is also
posted on the City of Odessa’s website www.odessa-tx.gov
City Council Meetings are available to all persons regardless of disability.
Individuals with disabilities who require special assistance should contact the City
Secretary's Office at 432/335-3276, or 411 West 8th Street, First Floor, Odessa, Texas,
during normal business hours at least twenty-four hours (24) in advance of the meeting.
Norma Aguilar, TRMC, CMC
City Secretary
CITY OF ODESSA
CITY COUNCIL AGENDA ITEM
Meeting Date Contact Department Fiscal Impact?
7/16/2024 John Beckmeyer City Manager's Office Yes
Work Session? Contacted Legal? Item Type
Yes Yes Regular Resolution,
CAPTION
Consider allocation of $25,000,000 for the city-wide valve and line replacement project from the Pioneer
Natural Resources, USA, Inc. and the Certificates of Obligation, series 2021. (RESOLUTION)
SUMMARY
Phase 1 requires the City of Odessa to replace 171 valves city wide. The total cost for valve replacement,
labor cost and line stop cost for Phase 1 is a projected estimated cost of $9,600,570.00.
Phase 2 includes the Lancaster project which requires 7500 linear feet of pipe and 35 valve replacements
at an estimated cost of $7,000,000.00.
The 42nd Street water line project requires 9525 linear feet of pipe and 20 valve replacements at an
estimated cost of $7,500,000.00.
The total estimated cost for Phase 1 and 2 is $24,100,570.00.
The City of Odessa City Council approved a contract between the City of Odessa and Pioneer Natural
Resources USA, Inc. for the sale of reclaimed wastewater on July 22, 2014, by Resolution No. 2014R-61.
On August 3, 2021, the City of Odessa City Council authorized Ordinance No. 2021-25 for the issuance of
City of Odessa, Texas Combination tax and revenue certificates of obligation, series 2021; levying a tax
and pledging certain surplus revenues of the City’s waterworks and sewer system, for the payment thereof;
providing for the award of the sale thereof in accordance with specified parameters; authorizing the
execution and deliver of a purchase contract; authorizing the execution and delivery of a purchase
contract; authorizing the execution and deliver of a paying agent/registrar agreement; authorizing the
approval of an official statement; and enacting other provisions relating thereto. This authorized the
issuance of Certificates of Obligation for the purpose of paying contractual obligations to be incurred for the
following purposes, (a) acquiring, construction and improving City water and sewer facilities, including the
construction of improvements to the City’s existing water treatment plant, and the acquisition of land and
right-of-way and (b) pay for professional services in connection with the issuance of the Certificates.
The re-appropriation of $5,000,000.00 from the Certificates of Obligation, series 2021, water/sewer CIP
fund to the Pioneer Natural Resources, USA Inc. CIP fund for the city wide valve and line replacement
project.
The appropriation of $20,000,000.00 from the sale of reclaimed wastewater sold to Pioneer Natural
Resources USA, Inc. (Pioneer CIP fund) to the City-wide valve and line replacement project account.
BLURB
Monies for city wide valve and line replacements will be allocated from the sale of reclaimed wastewater
and 2021 Certificates of Obligation Series 2021 in the amount of $25,000,000.00.
FISCAL IMPACT
Fiscal Year Fund Type Cost or Revenue? Fiscal Note Attached?
2023-24 Pioneer/Water Sewer 2021 Bond Cost No
Available Funds Budget Est/Actual Cost Difference
This Agenda Item: $5,000,000.00 $25,000,000.00 $-20,000,000.00
ACTION NEEDED TO AMEND THE BUDGET
Appropriation Amount: $20,000,000.00 Transfer Amount: $5,000,000.00
Appropriation By: Reserves,
Comments/Other Departments, Boards, Commissions or Agencies
Supporting Documents
4r-200 Allocation of $25000000 for City-wide valve replacement project.pdf,
RESOLUTION NO. 2024R-__
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ODESSA, TEXAS, AUTHORIZING THE RE-
APPROPRIATION OF $5,000,000.00 FROM THE
CERTIFICATES OF OBLIGATION, SERIES 2021 AND
AUTHORIZING THE APPROPRIATION OF
$20,000,000.00 FROM THE SALE OF RECLAIMED
WASTEWATER TO PIONEER NATURAL RESOURCES
USA, INC. FOR THE CITY-WIDE VALVE AND LINE
REPLACEMENT PROJECT; AUTHORIZING THE CITY
MANAGER TO SIGN ANY DOCUMENTS NECESSARY
TO IMPLEMENT THIS RESOLUTION; FINDING AND
DETERMINING THAT THE MEETING AT WHICH THIS
RESOLUTION WAS PASSED WAS NOTICED AND WAS
OPEN TO THE PUBLIC AS REQUIRED BY LAW AND
DECLARING AN EFFECTIVE DATE
WHEREAS , the City of Odessa City Council approved a contract between the City of
Odessa and Pioneer Natural Resources USA, Inc. for the sale of reclaimed wastewater on July
22, 2014, by Resolution No. 2014R-61; and
WHEREAS on August 3, 2021, the City of Odessa City Council authorized Ordinance
No. 2021-25 for the issuance of City of Odessa, Texas Combination tax and revenue
Certificates of Obligation, Series 2021; levying a tax and pledging certain surplus revenues of
the City’s waterworks and sewer system, for the payment thereof; providing for the award of
the sale thereof in accordance with specified parameters; authorizing the execution and
delivery of a purchase contract; authorizing the execution and delivery of a paying
agent/registrar agreement; authorizing the approval of an official statement; and enacting other
provisions relating thereto; and
WHEREAS, this authorized the issuance of Certificates of Obligation for the purpose of
paying contractual obligations to be incurred for the following purposes, (a) acquiring,
construction and improving City water and sewer facilities, including the construction of
improvements to the City’s existing water treatment plant, and the acquisition of land and right-
of-way and (b) pay for professional services in connection with the issuance of the Certificates;
and
WHEREAS, Phase 1 requires the City of Odessa to replace 171 valves city wide. The
total cost for valve replacement, labor cost and line stop cost for Phase 1 is a projected
estimated cost of $9,600,570.00; and
WHEREAS, Phase 2 includes the Lancaster project which requires 7500 linear feet of
pipe and 35 valve replacements at an estimated cost of $7,000,000.00; and
WHEREAS, the 42nd Street water line project requires 9525 linear feet of pipe and 20
valve replacements at an estimated cost of $7,500,000.00; and
WHEREAS, city staff recommends the re-appropriation of $5,000,000.00 from the
Certificates of Obligation, Series 2021, water/sewer CIP fund to the Pioneer Natural Resources,
USA Inc. CIP fund for the city-wide valve and line replacement project; and
WHEREAS, city staff recommends the appropriation of $20,000,000.00 from the sale
of reclaimed wastewater sold to Pioneer Natural Resources USA, Inc. (Pioneer CIP fund) to
the City-wide valve and line replacement project account;
Page 1 of 2
NE:\Resolutions\4r-200 Allocation of $25,000,000 for City-wide valve and line replacement project
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ODESSA, TEXAS:
Section 1. That the statements of fact in the preamble are found to be true and
correct and are approved as findings.
Section 2. That the City Council of the City of Odessa hereby approves the re-
appropriation of $5,000,000.00 from the Certificates of Obligation, Series 2021 for the city-wide
valve and line replacement project.
Section 3. That the City Council of the City of Odessa hereby approves the
appropriation of $20,000,000.00 from the sale of reclaimed wastewater to Pioneer Natural
Resources, USA, Inc., for the city-wide valve and line replacement project.
Section 4. That the City Manager or his designee is hereby authorized to execute
any documents necessary to implement this resolution.
Section 5. That this resolution shall be effective at the time of its adoption.
The foregoing resolution was approved and adopted on the 16th day of July, A.D., 2024,
by the following vote:
Mark Matta ___
Steven P. Thompson ___
Gilbert Vasquez ___
Greg Connell ___
Chris Hanie ___
Denise Swanner ___
Javier Joven ___
Approved the 16th day of July, A.D., 2024.
Javier Joven, Mayor
ATTEST:
Norma Aguilar, City Secretary
APPROVED AS TO FORM:
Daniel C. Jones, City Attorney
Page 2 of 2
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