Odessa Development Corporation

ODESSA DEVELOPMENT CORPORATION MINUTES CITY OF ODESSA, TEXAS May 1, 2020 A special meeting of the Odessa Development Corporation (ODC) was held on May 1, 2020 at 10:02 a.m. Due to the COVID-19 , the meeting was teleconferenced , as allowed by the Governor's executive order. ODC board members and staff were present through teleconference. Members present: Tim Edgmon , Gene Collins, Melanie Hollmann, David Boutin , and Chris Cole . Member absent: Mayor David R. Turner, ex-officio . Others present: City Staff: Norma Aguilar-Grimaldo , City Secretary; Natasha Brooks, City Attorney; Robert Carroll , Assistant City Attorney; Cindy Muncy, Interim Assistant City Manager and Michael Marrero City Manager; ODC Contractors: Wesley Burnett, Economic Development; and Others: Council members Tom Sprawls and Michael Shelton; Libby Campbell , Ray Perryman, and other interested citizens . A quorum being present, Mr. Edgmon called the meeting to order and the following proceedings were held : Mr. Collins gave the invocation . Resolution No. ODC-2020R-04 - Second amended economic development agreement with Permian Basin Food Bank, Inc. d/b/a West Texas Food Bank. Mr. Burnett stated that with the COVID-19 and oil prices it devastated our community. The number of people using the food bank has dramatically increased. The West Texas Food Bank requested the purchase of a walk in freezer cooler with installation for $1 ,116,500 for the 19 counties that it serviced . Ms. Campbell thanked the board for its support in building the facilities over four years ago. She stated that there was a 44% increase in the outreach program . She reported that the 48 staff kept the food bank running with no volunteers . The partner agencies dropped from 92 to 78 agencies and had limited capabilities . The senior group has increased. She discussed the food supply chain as it affected the food bank. The USDA would be providing a large amount of chicken , pork and dairy products. The freezer would accommodate storing the food. The food bank would receive 3,500 boxes a week to distribute with no requirements to clients and agencies . The freezer would help with the COVID and for long term on reducing operating cost. She stated that truck delivery was taking about eight to twelve weeks . The truck order increased from three trucks to 32 trucks but only 12 trucks were delivered. The cooler would sustain operations . There were 74% new clients . Mr. Burnett stated that this would be a second amendment to the original agreement. Council member Shelton commended the food bank for their service . Ms. Campbell stated that the food bank was taking strict precautions in dealing with COVID-19 and no volunteers were being used . Staff was handling all the necessary services. Mr. Cole asked about the timeframe for the freezer installation . Ms. Campbell stated it would be ODC Minutes May 1, 2020 Page 2 about six to eight weeks . Mr. Carroll outlined the terms of the extension , which was three years , add five new jobs and a total payroll of $30 ,000 per job. The 48 jobs would be maintained . Ms. Campbell provided information about the donations and the growth with the USDA. There was some reimbursement for the cost. The food bank was receiving support with Feeding America and Feeding Texas . She was confident that the food bank would meet the terms . The amended contract would be audited in 2021. Mr. Boutin suggested extending the term to four years. He stated that there was expected popu lation growth . Motion was made by Mr. Boutin and seconded by Mr. Cole to approve the resolution as recommended by the Compliance Committee but with a four-year term extension. The motion was approved by a 4-0 vote. Ms. Hollmann abstained , as she was a board member of the West Texas Food Bank. Mr. Collins asked about establishing parameters for emergency situations to respond in a timely manner. Ms. Brooks stated that the board could meet on an emergency basis if the project was within the 4A guidelines. ODC was following the same guidelines as the City Council. Each project would be reviewed on a case-by-case basis. Receive update on the Preserving the Permian Basin Energy Sector Structure and the Odesa Economy through the COVID-19 and Oil Supply Shock Challenges assessment. Dr. Ray Perryman stated that the study provided recommendations including the long term of broadband and advocacy programs . The study provided information on different industries and annual average numbers. He recommended that the study be kept updated . Dr. Perryman explained the oil situation . He stated that it was important to note that it was not like the 1980s. The current situation happened sudden due to a health crisis . The market will normalize but the housing and infrastructure was still an issue. He discussed oil and housing. Legislation would help with the local gas and local entities but there was a lot of uncertainly. Mr. Cole left the meeting at 10:59 a.m. Dr. Perryman discussed production of natural gas and global demand. He stated it was critical to keep infrastructure together. He stated nothing was broken only a health crisis and in a reasonable period , it would be better with the treatment. The demand will fix quickly. Mr. Collins asked about the Railroad Commission regulating production in Texas and where we should stand on that issue. Dr. Perryman was opposed to it as it would interfere with the market and reduce global production . The meeting adjourned at 11 : 14 a.m. ATTEST: APPROVED : Norma Aguilar-Grimaldo, TRMC , CMC Tim Edgmon City Secretary President