Odessa Development Corporation

ODESSA DEVELOPMENT CORPORATION MINUTES CITY OF ODESSA, TEXAS July 9, 2020 A regular meeting of the Odessa Development Corporation (ODC) was held on July 9, 2020 at 2:00 p.m., in the Council Chambers, fifth floor, City Hall, 411 W. 8th St., Odessa, Texas. Members present: Tim Edgmon, Gene Collins, Melanie Hollmann, Chris Cole, David Boutin, and Mayor David R. Turner, ex-officio. Others present: City Staff: Norma Aguilar-Grimaldo, City Secretary; Natasha Brook, City Attorney; Robert Carroll, Assistant City Attorney; Michael Marrero, City Manager; and Cindy Muncy, Assistant City Manager; ODC Contractors: Craig Van Amburgh, CVA; Wesley Burnett, Economic Development; Tyler Patton, UTPB-SBDC; Renee Earls, Chamber of Commerce; and Dustin Fawcett, MOTRAN; and Others: Kirk Edwards, Wanda Clayton 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. June 11, 2020 minutes. Motion was made by Mr. Collins and seconded by Mr. Boutin to approve the minutes. The motion was approved by unanimous vote. Contractors report: Economic Development: Odessa Chamber, CVA Advertising and Marketing, UTPB-America’s SBDC, MOTRAN, City Administrative support, and Perryman Study Task Force. Mr. Burnett stated there were no updates due to the pandemic. He reported that the former Summit site was being discussed and our resources would benefit a company. There were no retention visits only virtual calls. He had meetings with the school district on WiFi. There were ongoing discussions. Mr. Collins asked if the underserved areas were being addressed. Mr. Burnett stated that MOTRAN completed the study. The study was being reviewed by others on all areas. Mr. Fawcett stated that MOTRAN was providing the information. The contractors could possibly work with Midland and Ector Counties to provide broadband. The school entities were focusing on the schools. Mr. Burnett was part of the discussions to assist on behalf of ODC. Mr. Van Amburgh reported that June’s activities was targeted to communication on the strategic plan. The campaign would give a reason to stay in the Permian Basin and encourage to be proud of the oil industry. The podcast and TV would have new interviewees on the strategic plan. There were no on air ads on TV but will begin on the same type of programming. The outdoor billboards will replace with the theme of the strategic plan. The campaign would have its own website with information and ODC Minutes July 9, 2020 Page 2 resources and brand identity. It will have a direct link to ODC. The social media engagement increased by 32% and shares up to 59%. The Perryman Study Task Force met. The marketing would be for the citizens of the Permian Basin and the message of importance of the Permian Basin oil in Austin and Washington. Three things identified for the campaign theme were Permian Basin oil industry focus, Great pride in Odessa and West Texans; and short memorable and flexible subject covered in campaign. The theme for the campaign was The Permian Fuels America. The media tactics were traditional media, social media and public relations in local, regional and national. He showed billboard samples. It would have its own website and branding. The digital billboards provided flexibility. Mayor Turner asked how it would differentate from energy. Mr. Van Amburgh stated that the campaign would be specific. Kirk Edwards, Task Force Chair, appreciated the wisdom of the ODC board for taking action. He identified the task force members. He provided a report on the current oil field conditions. About 35,000 to 45,000 people were laid off and most were minority. He stated the campaign would educate all using different tactics and get peoples attention on the importance of the Permian oil industry. He provided some experiences of the oil industry since 1981. He spoke to the Department of Energy and Department of Commerce. People needed to be educated on foreign oil versus our oil. He was excited about the campaign. Mr. Edgmon thanked the task force for their work. The Perryman report provided hard facts to educate Washington. Mr. Edwards hoped that the oil and gas associations would get behind the campaign and promote the campaign. Mr. Boutin stated that this was a sense of urgency and it would help our area especially with Mr. Edwards’ passion. Mr. Edwards thanked the board for providing the initiative for the study and moving forward to address the issues. Mr. Patton reported on SBDC’s June activity. There were 210 counseling sessions and 196 counseling hours. There was one new business in Odessa. June’s capitalization was $594,987 with Odessa at $590,800. The new Disaster Assistance Consultant began July 1. There was a good marketing and start for the disaster program. He reported that $6.4 million was identified for clients on the PPP loans/grant program. The number was more but was not all identified. Mr. Cole asked for the numbers to be provided. Mr. Collins asked how the underserved community was marketed. Mr. Patton reported that there was 64% minority. SBDC had limitation on marketing since it was a non profit agency. He sends emails to groups around the Permian Basin. Ms. Hollmann reported that she and Mr. Cole met with the new head of the Business Challenge. More information will be provided such as hearing directly from the winners on their product or service. Mr. Fawcett stated that the Interstate 14 filing was amended to include passing the route to Odessa. TxDOT supported the filing. Senator Cornyn supported the route. TxDOT was working on two studies. The I-27 study included concerns and input. Data was being collected for the freight study on impact of our roadways. Our trucks were under counted by at least 100,000 a day. Our area was missing out on funding. Midland and Ector Counties were generating the most economic impact. MOTRAN would advocate for more funding. He stated that once the interestate was designated then TxDOT would prioritize the routes. MOTRAN was monitoring the broadband $80 billion funding from Washington. If approved, funds could be sought from the cities to assist with towers for our area. It was under the House and Senate consideration. Ms. Muncy reported on financial activities. Total assets were $56,010,881 and expenditures were $187,684 for May. For the year, total revenues was $9,403,499 and expenditures was $3,511,403. Two payments were paid out from reserved ODC Minutes July 9, 2020 Page 3 commitments. She reviewed the investment portfolio. She reported that the sales tax was budgeted for $12 million but there would be a shortfall. As of July, sales tax was $10.4 million. Motion was made by Mr. Cole and seconded by Mr. Collins to approve the financial statement. The motion was approved by unanimous vote. Discuss current grant application and process to receive assistance from ODC and possible creation of emergency pool of funds for small business Assistance. Mr. Carroll stated that there were minor changes to the program policy. Mr. Cole expressed concern on the application process of businesses missing the opportunity for assistance. He thanked the efforts by Mr. Collins of bringing it to attention. He stated that small businesses were underserved. He provided an experience with a business owner that lacked the knowledge of financial preparation. The business could have gone through the ODC as it created jobs and tax revenue. He understood the constraints of SBDC in marketing. There needed to be the opportunity to grow the business and strengthen the financial aspect of a business that needed assistance. A favorable application process was needed, as Mr. Collins suggested. Mr. Burnett stated that the application process was revamped recently. There could be more flexibility. Mr. Cole asked that Mr. Collins be involved with ideas for more flexibility and assist the businesses in strengthening in any areas, if needed. Ms. Hollmann stated that the program can be flexible and make available educational opportunities to bring the application to standard. A new application was not need. Mr. Burnett stated that more of an open minded approach and mold each project could be done. The business would still be vetted. Mr. Collins stated that the African Americans and Hispanics business owners may have trust issues with the application. Many were hard working and could produce the product or service. He stated that the Black Chamber of Commerce could assist with bridging the trust gap. Mr. Boutin asked if there was a way the business owner can deliver its goods in exchange of the grant funds, other than the traditional financials. He asked if SBDC could have a component to assist business owners to become financially productive. A program should be developed to help small business owners. Mr. Patton stated that they work with clients on financial forms and could help create financials. Mr. Cole stated it was a multifacet approach. There needed to be an inclusive of all underserved businesses. Ms. Hollmann stated it was part of the Perryman Report to strengthen businesses. Motion was made by Mr. Cole and seconded by Ms. Hollmann for the Compliance Committee to develop an application process. It would assist the underserved businesses. The motion was approved by unanimous vote. Review and discuss proposed FY 2020-2021 Gen Dev Plan. Mr. Carroll stated that edits were made to the General Development Plan. Mr. Boutin suggested adding financial accounting training under SBDC. He questioned the section stating the Compliance Committee rejecting a proposal that it be reported. Ms. Hollmann stated, in the past, there was a concern that the board be aware of any rejected proposals. Mr. Burnett reported that there have not been any rejections only withdrawals of applications due to lack of information. The section will be removed. Mr. Collins asked about qualifications living in the city limits. Mr. Burnett stated that the job creation and investment must be in Odessa. The employees were not required to live in Odessa. Ms. Brooks would visit with Mr. Collins regarding the requirements. The non-discrimination statement would be placed as it was suggested. ODC Minutes July 9, 2020 Page 4 Mayor Turner left the meeting at 3:44 p.m. Review and discuss contractor proposals to be presented and approved at the August 31 meeting. Mr. Collins stated that the Black Chamber did not receive the request for proposals. He asked to extend the time to allow the Black Chamber to submit a request. Mrs. Muncy reported that a letter for proposal was sent to the Black Chamber of Commerce. Mr. Edgmon stated that an amendment to the budget could be made at anytime of the year. Mr. Burnett offered assistance to help with the proposal. The Black Chamber of Commerce would have to August 1 to submit its proposal. Review and discuss proposed FY 2020-2021 Budget to be approved at the August 13 meeting. Mrs. Muncy presented a draft budget for the upcoming year. She reviewed the budget in detail. She explained the business incentives budget and the promotional limit items. She explained that the any funds left in promotions would be rolled over into the next year. ODC Committee and Officer Reports. No reports. Discuss emergency assistance options related to the COVID-19 pandemic. ODC would participate on options related to the COVID-19 pandemic. Discuss future web-based Odessa Development Corporation meetings. Mr. Edgmon announced that ODC would go to virtual meetings until further notice. The meeting adjourned at 4:01 p.m. ATTEST: APPROVED: Norma Aguilar-Grimaldo, TRMC, CMC Tim Edgmon City Secretary President