Odessa Development Corporation

ODESSA DEVELOPMENT CORPORATION MINUTES CITY OF ODESSA, TEXAS August 10, 2023 A regular meeting of the Odessa Development Corporation (ODC) was held on August 10, 2023, at 1:00 p.m. in the Council Chambers, 5 th floor, City Hall, 411 W. 8th St. Odessa, Texas. Members present: Melanie Hollmann, David Boutin, Kris Crow, Larry Robinson, James Kirk, and Jeff Russell, and Ismael “Mikky” Navarrete. Others present: City Staff: Norma Aguilar-Grimaldo, City Secretary; Dan Jones, City Attorney; Seth Boles, Interim Finance Director; Christina Buhnerkempe, Legal Assistant; and ODC Contractors: Renee Earls, Chamber of Commerce; Tom Manskey, Chamber of Commerce; Tracy Jones, Chamber of Commerce, Christi Callicoatte, Current Media Partners; Chris Walker, Black Chamber of Commerce; Tyler Patton, SBDC, and Others: other interested citizens. A quorum being present, Mr. Crow called the meeting to order, and the following proceedings were held: Mr. Russell gave the invocation. The Pledge of Allegiance and Texas Pledge were recited. July 13, 2023 minutes. Motion was made by Mr. Boutin and seconded by Mr. Robinson to approve the minutes as amended. The motion was approved by unanimous vote. The August 3, and August 10, 2023 minutes would be considered at the September meeting. Contractors’ reports: Economic Development Department, Current Media Partners, Black Chamber of Commerce, UTPB-America’s SBDC, MOTRAN, and City administrative support: financials. Mr. Manskey reported on the projects. Project Legion was moving forward. Project Lone Star Lithium was a battery manufacturer and its representatives met with TCEQ and other officials. Texas was in competition with Oklahoma and Tennessee. The State would assist with the project if Texas was chosen. The manufacturer built batteries for the military and could be used in vehicles. It was a safe electrical battery. He stated that the Economic Development Department wanted to better education and share information with the board and the public. The Rhodes contract was never signed and there was no communication from the representatives. It would be removed from the General Development Plan. Mr. Walker reported on the Black Chamber of Commerce activities. He reviewed the inquiries of small businesses in opening a business that included soul food, cleaning service and warehouse for clothing line. There were counseling sessions with the individuals and would be sent to SBDC. He reported that clients had an issue with not having the capital to get started. Ms. Hollmann stated that there was an ODC policy that ODC Minutes August 10, 2023 Page 2 changed as there were no more grants that received the funds up front of the agreement. Currently the grants were paid in arrears. ODC participated in the Business Challenge to assist small businesses. She reported that the funds were used through promotions. Mr. Crow suggested a program to assist with small businesses. Mr. Walker would work on a plan to present to the ODC board. Ms. Callicoatte reported that the video was complete and there would be a few edits. The video would be used on the website and for presentations. There would be specific videos to promote specific topics. With digital, there were testimonials and sound bites. The website would be kept current. Publications were cut back and there was a QR code that would provide contact information. She explained the process of the QR code. Mr. Patton reviewed the July SBDC report. There were 145 counseling sessions, and 157 counseling hours. There were two seminars with 20 attendees. There were three new businesses in the area. Odessa’s capitalization was $729,998. Mr. Boles reported that the $2 million infrastructure grant was related to TxDOT. He reviewed the April and May financials. The sales tax through August was $13.2 million. The month of August was $1.3 million. Resolution No. ODC-2023R-10 - City of Odessa and Odesa Development Board’s Investment Policy for changes to Investment Officers including the addition of the Interim Director of Finance. Mr. Boles stated that the change included the Interim Finance Director for the policy of investments. The policy was reviewed and updated yearly. He gave a background of investment experience of four years. He was in compliance and was open to more training. Mr. Crow and Mr. Boutin were available if there were questions on the ODC investments. No investment purchases have been made since June due to the policy not having Interim Director of Finance. Mr. Russell suggested using a general term in designated staff with an approved list. Motion was made by Mr. Boutin and seconded by Dr. Kirk to approve the resolution. The motion was approved by unanimous vote. Contractor agreements for FY 2023-2024. Mr. Crow wanted a shorter term contract for the Chamber of Commerce to do due diligence. The Chamber’s budget was approved for one year. Motion was made by Ms. Hollmann and seconded by Mr. Boutin to approve the Chamber contract as presented. Mr. Crow stated many cities across Texas have its economic development independent. He wanted to research, and it may take up to three months for a study. Ms. Hollmann stated currently ODC was not liable for Chamber employees. Mr. Boutin stated that there needed to due diligence and take the time to gather the information to make the best decision to manage the tax dollars. He stated that ODC has been successful in job creation but must be cautious and diligent. Mr. Robinson recommended a contract by quarter which was a good measure to see changes and adjustments. Mr. Russell stated that there may need to be a shift to workforce development. He was reluctant to approve a one year contract as there may need to be a change in direction, focus and redefine needs. He supported the quarterly contract. Mr. Boutin stated that initiatives took longer than a quarter. Mrs. Earls stated that the subscription needed to be reviewed as it may be annual subscriptions which were in the Chamber Economic Development’s name. She emphasized that the Economic Development Department were employees of the Chamber and duties were ODC Minutes August 10, 2023 Page 3 economic development. There has been an excellent relationship with ODC and the Chamber the last 30 years. She was not aware of any concerns and wanted to be a partner. The motion failed by a 2 -5 vote with Mr. Crow, Mr. Rusell, Dr. Kirk, Mr. Navarrete, and Mr. Robinson casting the nay votes. Motion was made by Mr. Russell and seconded by Mr. Navarrete to approve the Chamber of Commerce contract on a quarterly basis and review quarterly. The motion was approved by a 5 -2 vote with Mr. Boutin and Ms. Hollmann casting the nay votes. Motion was made by Mr. Russell and seconded by Mr. Navarrete to approve the Current Media Partners contract. The motion was approved by unanimous vote. Motion was made by Dr. Kirk and seconded by Ms. Hollmann to approve the Black Chamber of Commerce contract. The motion was approved by unanimous vote. Motion was made by Mr. Russell and seconded by Mr. Robinson to approve the UTPB- America’s SBDC contract. The motion was approved by unanimous vote. Motion was made by Mr. Robinson and seconded by Mr. Navarrete to approve the MOTRAN contract. The motion was approved by unanimous vote. Motion was made by Dr. Kirk and seconded by Mr. Robinson to approve the City of Odessa Administrative contract with the change of payment from the last meeting in removing $30,000 to special services. The motion was approved by unanimous vote. Remove from the table to discuss and consider General Development Plan FY 2023-2024. Motion was made by Mr. Boutin and seconded by Dr. Kirk to remove the General Development Plan from the table. The motion was approved by unanimous vote. Mr. Russell handed out a proposal on Recruit – Retain – Retire to include in the General Development Plan. The plan was for workforce development on needs for the community. The situation analysis was identified, and strategies were identified. Strategies included partnering with the educational institutions, skilled worker recruitment and reskilling the workforce. Another component was the infrastructure and quality of life enhancements. It outlined the entities working together and improving the livability and work ability. Ms. Hollmann wanted time to review. Mr. Crow suggested a special meeting for planning. He suggested the item as perpetual on the agenda. Motion was made by Mr. Russell and seconded by Mr. Boutin to approve the General Development Plan as amended with removing Rhodes USA from the plan and understanding that there may be tweaks to the plan. The motion was approved by unanimous vote. Motion was made by Mr. Russell and seconded by Dr. Kirk to suspend the rules. The motion was approved by unanimous vote. ODC insurance contract with InSource Insurance Group, LLC for FY 2023-24. Mr. Boles stated that the insurance proposal from InSource was effective August 18, 2023 for professional liability insurance. The premium was $18, 696. Mr. Crow stated it was a high premium. Mr. Crow asked about the cancellation. He stated that it could be canceled. ODC Minutes August 10, 2023 Page 4 Motion was made by Dr. Kirk and seconded by Mr. Russell to approve the InSource Insurance Group contract and requested that the Director of Risk Management get other quotes. The motion was approved by unanimous vote. ODC FY 2023-2024 budget. Mr. Boles reviewed the updated budget proposed changes. The Business Incentives line item was $50,0000. The Infrastructure Grants was changed to $275,000. Motion was made by Dr. Kirk and seconded by Mr. Russell to approve the proposed budget as amended with the Infrastructure Grants as $275,000. The motion was approved by unanimous vote. Remove from the table to discuss and consider ODC to enter into an economic development performance agreement with Texline Energy Services, LLC. Motion was made by Dr. Kirk and seconded by Mr. Russell to remove the Texline Energy Services from the table. The motion was approved by unanimous vote. Ms. Jones stated that the contracts were sent to the client. Mr. Manskey asked for a contract process. Mr. Crow stated for the Chamber to send the contracts to the client’s legal team and then to the ODC legal team. Once the contract language was worked out then it be brought to the ODC board with the redlined changes. The contract would be sent back to Texline. ODC Committee and officer reports: Partnership, Tax Incentive, Advertising, DOI Grants Design Review Board, and Compliance. Mr. Robinson reported that there were DOI projects pending. Closed Session. No action. Citizen comments on non-agenda items. Mrs. Earls had not seen a copy of the Chamber contract and requested a copy. Mrs. Buhnerkempe stated that due to the timing it was not included in the agenda packet. The contracts would be sent to the contractors. Upcoming dates for future ODC Board meetings. Mr. Crow stated that the next ODC board meeting and was September 14, 2023 at 2 p.m. Motion was made by Ms. Hollmann and seconded by Mr. Russell to adjourn the meeting. The motion was approved by unanimous vote. The meeting adjourned at 2:58 p.m. ATTEST: APPROVED: Norma Aguilar-Grimaldo, TRMC, CMC Kris Crow City Secretary President