City Council

CITY COUNCIL MINUTES CITY OF ODESSA, TEXAS September 10, 2024 On September 10, 2024, a regular meeting of the Odessa City Council was held at 6:00 p.m. in the Council Chambers, 5th floor, City Hall, 411 W. 8th, Odessa, Texas. City Council present: Mayor Javier Joven; Council members: Denise Swanner, At-Large; Mark Matta, District One; Steven P. Thompson, District Two; Gilbert Vasquez, District Three; Greg Connell, District Four; and Chris Hanie, District Five. Staff present: Norma Aguilar, City Secretary; John Beckmeyer, City Manager; Dan Jones, City Attorney; and other members of City staff. A quorum being present, Mayor Joven called the meeting to order, and the following proceedings were held: Roll call. Ms. Aguilar conducted the roll call for the City Council. The invocation was given by Pastor Steve Moss, First Methodist Church and followed by the Pledge of Allegiance and Texas flags. Proclamations, Presentations, and Awards. Mayor Pro Tem Swanner presented a proclamation for Hunger Action month. Consent Agenda 1. City Council work session minutes, August 27, 2024; 2. City Council minutes, August 27, 2024; 3. Resolution No. 2024R-109 – Renew the yearly service agreement with Motorola Mach Alert; 4. Ordinance No. 2024-33 – Request by ICA, Inc., owner, for a zone change from FD Future Development District to LC, Light Commercial District on a 50.25-acres located in Section 3, Block 41, T- 2-S T&P RY. CO. Survey City of Odessa, Midland County, Texas; 5. Resolution No. 2024R-110 – Professional Service Agreement with Newton Engineering, PC to provide bid and design services for the reconstruction of Dorado Drive from Faudree Road to Mission Boulevard. Motion was made by Council member Connell and seconded by Council member Swanner to approve the consent agenda items. The motion was approved by the following vote: Aye: Joven, Matta, Thompson, Vasquez, Connell, Hanie and Swanner Nay: None Council Minutes September 10, 2024 Page 2 Regular Purchase three new trucks for Solid Waste, two automated side loads and one roll-off. Chris Adams, Director of Equipment Services, stated that three trucks would be purchased for $1.1 million. The truck types were two side load trucks and one roll-off. Motion was made by Council member Vasquez and seconded by Council member Thompson to purchase the three trucks for Solid Waste as recommended. The motion was approved by the following vote: Aye: Joven, Matta, Thompson, Vasquez, Connell, Hanie and Swanner Nay: None Purchase replacement bucket truck for Traffic Department to replace asset that has reached the end of its useful life. Mr. Adams stated that three trucks would be purchased as replacements. The cost was $187,300 from Sewell Ford, a local vendor. Motion was made by Council member Thompson and seconded by Council member Hanie to purchase the replacement bucket truck from Sewell Ford as recommended. The motion was approved by the following vote: Aye: Joven, Matta, Thompson, Vasquez, Connell, Hanie and Swanner Nay: None Purchase a new bucket truck for Traffic Department. Mr. Adams stated that the bucket truck was a new asset at a cost of $193.000. Motion was made by Council member Thompson and seconded by Council member Matta to purchase a new bucket truck as recommended. The motion was approved by the following vote: Aye: Joven, Matta, Thompson, Vasquez, Connell, Hanie and Swanner Nay: None Ratify the property tax revenue increase reflected in the Fiscal Year 2024-2025 annual budget. Kaylie Banda, Director of Finance, stated that proposed rate was $0.466275. cents per $100 valuation. The budget would raise more revenue from property taxes than last year's budget by $2,798,250 which was a 5.42% increase from last year's budget, and of that amount, $1,214,116 was tax revenue to be raised from new property added to the tax roll. Jeff Russell stated to keep the no new revenue tax rate. He stated that the Fund Balance indicated $272 million which was a year’s budget. He stated that there was room to cut the rate below last year’s rate which would help taxpayers with inflation. Council member Hanie stated that there was a need to stop the increases as there was enough money. He stated citizens were ready for a break. The extra funds needed to be used in District 5. Ms. Banda indicated that enterprise funds was supported by the generated revenue and proper adjustments were made for services. Mayor Joven stated that the enterprise fund was kept separated from other funds and could not be used legally on other uses. Ms. Banda stated that the increase in rates were used to help pay off the Certificates of Obligation debt. Kris Crow stated that the budget did not make sense based on $275 million in the bank. He stated that people were hurting with inflation and Council had the ability to drop the tax rate. He urged to give back to the people as they deserved a break. Ms. Banda stated that staff was reviewing the assessment of an appropriate amount for the Fund Balance. Mr. Council Minutes September 10, 2024 Page 3 Beckmeyer reported that the funds would be used for wastewater. Mayor Joven stated that the Council reviewed the budget with the information provided at the time of the July retreat. Motion was made by Council member Thompson and seconded by Council member Swanner to ratify the property tax revenue at the proposed rate of $0.466275. cents per $100 valuation. The motion was approved by the following vote: Aye: Joven, Matta, Thompson, Vasquez, Connell, and Swanner Nay: Hanie Purchase valves for Dawn tower. Alex Rowlett, Interim Director of Utilities, stated valves would be purchased for the Dawn water tower. The cost was $67,680 from Western Industrial Supply. The replacement would implement a line stop. He explained the process which would not interrupt water service. The project would be completed in one week. Motion was made by Council member Vasquez and seconded by Council member Connell to approve the valves for Dawn tower. The motion was approved by the following vote: Aye: Joven, Matta, Thompson, Vasquez, Connell, Hanie and Swanner Nay: None Resolution No. 2024R-111 – Adopt City of Odessa Fiscal Year 2024-2025 Annual Budget. Ms. Banda highlighted the budget with operating revenues at $281,552,754 and operating expenditures of $277,793,246. Kris Crow asked about the use of the enterprise funds. Ms. Banda stated that each fund had its appropriate use. Mr. Crow asked about the revenue drop with the increased in rate. Council member Swanner thanked staff for the zero based budget as it helped with the increase of the Fund Balance. Council member Thompson stated $27.4 million in capital projects was 10% of the Fund Balance. Jeff Russell stated that there was an increase in several department’s budgets including the City Manager’s office, City Secretary’s office, and Planning and Development. Mr. Beckmeyer stated that services were consolidated into the City Manager’s office including software and procuring services into one centralized location. All the event planning was consolidated to Communications. Motion was made by Council member Matta and seconded by Council member Thompson to approve the resolution. The motion was approved by the following vote: Aye: Joven, Matta, Thompson, Vasquez, Connell, and Swanner Nay: Hanie Ordinance Water rate change. Ms. Banda stated to assist with the continued rise in costs of equipment, debt service, maintenance, repairs, and replacement of deteriorating lines for the Water and Sewer Department, there was a proposed 3% fee increase. Residential, commercial, and industrial customers would receive a 3.0% fee increase. The proposed water rate changes would be effective October 1, 2024 and be reflected in the November 2024 bills. An average residential cost increase was approximately $1.30 per month. Motion was made by Council member Swanner and seconded by Council member Vasquez to approve the ordinance on first approval. The motion was approved by the following vote: Council Minutes September 10, 2024 Page 4 Aye: Joven, Matta, Thompson, Vasquez, Connell, and Swanner Nay: Hanie Sewer rate change. Ms. Banda stated to assist with the continued rise in costs of equipment, debt service, maintenance, repairs, and replacement of deteriorating lines for the Water and Sewer Department, there was a proposed 3% fee increase. Residential, commercial, and industrial customers would receive a 3.0% fee increase. Motion was made by Council member Thompson and seconded by Council member Matta to approve the ordinance on first approval. The motion was approved by the following vote: Aye: Joven, Matta, Thompson, Vasquez, Connell, Hanie, and Swanner Nay: None Solid waste rate change. Ms. Banda stated to assist with the continued rise in costs of equipment and maintenance for the Solid Waste Department, there was a proposed 3.5% increase. Residential, commercial, and industrial customers would receive the increase. Council member Thompson stated that the tipping fees were negotiated last year. Council member Hanie recused from the agenda item due to a conflict of interest. Kris Crow stated that there was a 15.1% increase in revenue and a 3.5% increase in rates, but the budget did not match up. He asked Council to look at the numbers and amend the budget. Motion was made by Council member Vasquez and seconded by Council member Connell to approve the ordinance on first approval. The motion was approved by the following vote: Aye: Joven, Matta, Thompson, Vasquez, Connell, and Swanner Nay: None Abstain: Hanie Appoint judges for the General City Election on November 5, 2024. Ms. Aguilar stated that Texas Election Code required the governing body to appoint judges for the November 5, 2024 election. Motion was made by Council member Swanner and seconded by Council member Matta to approve the ordinance on first approval. The motion was approved by the following vote: Aye: Joven, Matta, Thompson, Vasquez, Connell, Hanie and Swanner Nay: None Resolution Resolution No. 2024R-112 – Relocating fire hydrants from roadway side to ROW side of water main. Mr. Rowlett stated that seven fire hydrants would be relocated due to a TxDOT I-20 project. He explained the project. The cost was $137,820 which would be reimbursed at the end of the project. The project timeline was November 1 - December 1. Motion was made by Council member Swanner 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 Council Minutes September 10, 2024 Page 5 Resolution No. 2024R-113 – Purchase aerator replacement parts for Bob Derrington Water Reclamation Plant Mr. Rowlett stated that the purchase of the aerator and parts was for the operation at the Bob Derrington Plant. The cost was $150,067.95. Motion was made by Council member Hanie and seconded by Council member Connell to approve the resolution. The motion was approved by the following vote: Aye: Joven, Matta, Thompson, Vasquez, Connell, Hanie and Swanner Nay: None Miscellaneous Elect the TML Region IV Director for the TML Board of Directors. Ms. Aguilar stated that the City Council has a vote for the TML Region IV Director. Mayor Joven read the bios of the two candidates. Motion was made by Council member Hanie and seconded by Council member Vasquez to elect John Davis as TML Region IV Director. The motion was approved by the following vote: Aye: Joven, Matta, Thompson, Vasquez, Connell, Hanie, and Swanner Nay: None Appointment of Boards: Board of Survey, Historic Preservation Commission, Odessa Development Corporation, Odessa Housing Finance Corp. Planning and Zoning Commission, Tax Incentive Committee, and Zoning Board of Adjustment. No action. Citizen’s comments on non-agenda items. Carmen Haynes stated that 1,395 cats were killed by the Odessa Animal Services. She was committed to saving animals and asked to accept the help of Best Friends. With the aid, there was a decline in euthanasia rates. Mr. Jones read a letter from PETA warning of dangerous groups including the Best Friends organization. Kris Crow asked Council to review and amend the budget as it was overly conservative. 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, Hanie, and Swanner Nay: None The meeting adjourned at 7:22 p.m. ATTEST: APPROVED: Norma Aguilar, TRMC, CMC Javier Joven City Secretary Mayor