Odessa Development Corporation

ODESSA DEVELOPMENT CORPORATION MINUTES CITY OF ODESSA, TEXAS March 18, 2021 A regular meeting of the Odessa Development Corporation (ODC) was held on March 18, 2021 at 2:00 p.m. in the Council Chambers, 5th floor, City Hall, 411 W. 8th St. Odessa, Texas. Members present: Tim Edgmon, Melanie Hollmann, David Boutin, Chris Cole, Kris Crow, Larry Robinson, and Jeff Russell. Others present: City Staff: Norma Aguilar-Grimaldo, City Secretary; Natasha Brooks, City Attorney; and Cindy Muncy, Assistant City Manager; and ODC Contractors: Craig Van Amburgh, CVA; Wesley Burnett, Economic Development; Tyler Patton, UTPB-SBDC; James Beauchamp, MOTRAN; Dustin Fawcett, MOTRAN; Paul Garza, Odessa Hispanic Chamber of Commerce; and Gloria Wright, Black Chamber of Commerce; and Others: Council members Mari Willis, Denise Swanner, Mark Matta, and Tom Sprawls; Javier Joven, Libby Campbell, Renee Earls, and other interested citizens. A quorum being present, Mr. Edgmon called the meeting to order and the following proceedings were held: Oath of Office. Mrs. Grimaldo gave the Oath of Office to Kris Crow, Larry Robinson, and Jeff Russell. Presentation to outgoing ODC Board member Gene Collins. The plaque would be presented at the next meeting. February 11, 2021 minutes. Motion was made by Mr. Boutin and seconded by Mr. Cole to approve the minutes. The motion was approved by unanimous vote. Appointment of Officers. Mr. Boutin recommended that the officers stay as: Tim Edgmon – President; David Boutin – Vice President; and Melanie Hollmann – Secretary/Treasurer. Motion was made by Mr. Cole and seconded by Ms. Hollmann to appoint the officers as recommended. Mr. Crow recommended Mr. Boutin as President, due to his vast experience, and keep the other officers as it remained. Mr. Boutin declined the office. The motion was approved by unanimous vote. Discuss and consider the ODC draft audit report. Greg Peterson, Weaver, reported that the FY ending September 30, 2020 audit was an unmodified opinion and there were no concerns. He explained the management’s discussion and analysis. Mr. Peterson reviewed the assets which was $61,315,319 and the fund balance itemized items. He explained the assigned and unassigned line items. He reported the total revenues at ODC Minutes March 18, 2021 Page 2 $11,995,682 and the incentives were $6,267,593. Total expenditures were $8,915,381 and the investments valued at $59,562,484. Mr. Peterson reviewed the budget and actual numbers. Mrs. Muncy stated that there were $58,563,724 in committed funds. Mr. Peterson stated that the internal controls and compliance were evaluated and there were no issues. It was a good clean audit. Contractors report: Economic Development Department - Odessa Chamber, CVA Advertising and Marketing, Black Chamber of Commerce, Hispanic Chamber of Commerce, UTPB-America’s SBDC, MOTRAN, and City Administrative support - Financials. Mr. Burnett reported that some projects had positive news. Project Sabre was on hold. He reported that there were projects that were not able to fulfill its obligations due to COVID and would be addressed. He visited with principals on a data center project. He was discussing possible incentives with gasoline, Project Watson. The company submitted an air quality permit. Mr. Burnett has made on site visits. Mr. Van Amburgh welcomed the new board members. He reported that there were four new podcasts and ads would air on major golf tournaments and sport events. The outdoor advertising featured business retention and expansion. The website sessions were up but the page views were down. Overall, social media platforms were down slightly which was because of the snowstorm. Ms. Wright reported that the Black Chamber of Commerce spent some ODC funds on a salary to promote events. A meet and greet for the new president, Chris Walker, would be held in the evening. The meet and greet was an opportunity to meet the new president and increase membership. Mr. Garza visited with three businesses interested in expanding. The companies were a crane hoisting, ice manufacturing and a long-haul trucking company. The paycheck protection program was extended. The webinars held on the PPP had over 100 attendees. The Hispanic Chamber partnered with SBDC on business development workshops. He made visits in the month. He would meet with the Black Chamber of Commerce for potential partnerships. Mr. Boutin was glad for the three potential clients made for business expansion. Mr. Patton reported on SBDC’s February activity. There were 326 counseling sessions. There were nine new businesses and two were in Odessa. The total capitalization was $1,254,900 and Odessa had a capitalization of $257,500. He reviewed year to date totals. He stated that the partnership with the Hispanic Chamber brought in more attendees with the webinars. The counseling sessions were done virtually or by phone. Mr. Edgmon stated that the Chamber’s working together was positive and a lot would be accomplished. Mr. Beauchamp stated that the leveraging report was a great success. He provided the status on the Yukon Road corridor development. He reviewed the five primary projects on Yukon. One of the projects has signalization at the intersection of Yukon and W. Loop 338. He stated it would be beneficial to have ODC leveraging funds for this project. The addition of a full interchange/overpass for the intersection would provide for continuity for the entire corridor and improving west Loop 338. He provided a project cost report of the leveraging of ODC funds. Mr. Beauchamp reported that Net Ops Communications would cover Ector County except for one area with broadband. The timeline was a ten-year plan. Mr. Boutin supported the overpass instead of the signalization to take the steps to make a true loop. He recommended that the ODC Minutes March 18, 2021 Page 3 unassigned funding should be considered on assigning projects to move up on the list. He stated that the return on the investment was $12 for every $1 spent. The infrastructure paved the wave for growth. Mr. Cole asked about identifying the long-term projects and encouraged to be open minded. Mr. Beauchamp would talk to TxDOT on the Yukon corridor. Mr. Cole encouraged the new board members to visit with MOTRAN. Mrs. Muncy introduced Larry Fry, Finance Director. She reported on the January financial reports. There was $58,011,234 in total assets, $2,196,267 in total liabilities and total reserved of $14,882,440. She reviewed the sales tax receipts. To date, sales tax was about 11% over budget. She explained the reserved long-term commitments and the Business Challenge funds. For the investments, staff was looking for investments to move out of the money market that meets requirements. Mr. Boutin asked about the restrictions on the investments that required to provide securities. Mrs. Muncy stated that it had to be collateralized which can be difficult for the institutions. She stated that the pools were liquid. CDARs were used in the past and would review for potential use of CDARs. She stated there was the opportunity for other brokers or firms to assist with the investments, but it had a cost. Currently, there were four brokers. The ODC funds were separated from the City funds. ODC Committee and Officer Reports. No committee meetings were held. Request from West Texas Food Bank to use $288,491.58 in unspent grant funds to purchase a tractor, a trailer, and a forklift for use by the food bank. Mr. Burnett stated that ODC assisted with a freezer cooler due to COVID to the food bank. The cost was $269,583.42 which was under budget. West Texas Food Bank requested to use the left-over funds to purchase a tractor, trailer, and forklift. The funds would be reallocated, if approved. Mr. Edgmon stated that there was no change in terms as there were no additional funds. Ms. Campbell reported on the clients. There was a decrease in clients, but new clients were being added. She explained the SNAP qualifications and the produce conditions. The food bank continued to add jobs. Motion was made by Mr. Cole and seconded by Mr. Boutin to amend the contract. The motion was approved by 6-0 vote. Ms. Hollmann abstained as she served on the West Texas Food Bank Board. Tabled - Reappoint Compliance Committee members whose current terms expired 12-31-20 (Virginia Ruiz, Jefferson Cox, Mike Withrow, Gaven Norris and Phil Padilla) Mr. Burnett stated that Phil Padilla would not be able to serve. Motion was made by Mr. Crow and seconded by Mr. Robinson to table this item. There may be names to bring forth from the new board members. Ms. Brooks stated that the current members would serve until there were new appointments. Mr. Boutin asked that the expertise background of the Compliance Committee members whose terms are up be provided to the new members. The motion was approved by unanimous vote. Discuss appointments to ODC Board Committees: Partnership, Advertising, and Downtown Grant Design Review Board. Mr. Burnett stated that the chair of the entities served on the Partnership, but others could serve. Mr. Edgmon stated that a description be provided on each committee for the new board members and it will be considered at the next meeting. Citizen comments on non-agenda items. No action. ODC Minutes March 18, 2021 Page 4 Motion was made by Mr. Cole and seconded by Mr. Crow to adjourn the meeting. The motion was approved by unanimous vote. The meeting adjourned at 3:22 p.m. ATTEST: APPROVED: Norma Aguilar-Grimaldo, TRMC, CMC Tim Edgmon City Secretary President