Odessa Development Corporation

ODESSA DEVELOPMENT CORPORATION MINUTES CITY OF ODESSA, TEXAS August 20, 2024 A special meeting of the Odessa Development Corporation (ODC) was held on August 20, 2024, at 4:00 p.m. in the Council Chambers, 5th floor, City Hall, 411 W. 8th St. Odessa, Texas. Members present: David Boutin, Tim Harry, Melanie Hollmann, Larry Robinson, and James Kirk. Others present: Dan Jones, City Attorney; Christina Buhnerkempe, Legal Assistant; John Beckmeyer, City Manager; Gilbert Vasquez, City Council; Steve Thompson, City Council; Kaylie Banda, Director of Finance; Yvette Griffin, Risk Management; Tyler Patton, UTPB’s-America’s SBDC; Christi Callicoate, Current Media Partners; Chris Walker, Black Chamber of Commerce; James Beauchamp, MOTRAN; Renee Earls, Odessa Chamber of Commerce; Tom Manskey, Office of Economic Development; Tracy Jones, Office of Economic Development; Kathi Vaughn, Office of Economic Development; Lindsey Simpkins, Office of Economic Development; and Others: and other interested citizens A quorum being present, Dr. Kirk called the meeting to order, and the following proceedings were held: Mr. Robinson gave the invocation. The Pledge of Allegiance and Texas Pledge were recited. Discuss and consider election of Officers for ODC Board to include President, Vice President, and Assistant Secretary. Motion was made by Ms. Hollmann with a second by Mr. Harry to nominate Dr. Kirk to serve as ODC Board President. The motion was approved by unanimous vote. Motion was made by Mr. Boutin with a second by Mr. Robinson to nominate Ms. Hollmann to serve as ODC Board Vice President. The motion was approved by unanimous Vote. Motion was made by Mr. Robinson with a second by Ms. Hollmann to nominate Mr. Boutin to serve as ODC Board Assistant Secretary. The motion was approved by unanimous vote. Discuss and consider Amended City Proposal to ODC for FY 2024-2025. Mr. Robinson had a question regarding Mr. Moore’s legal services. Mr. Jones stated that Mr. Moore will be used as a consultant and that the city will do whatever they need to do to make ODC successful. Ms. Hollmann suggested coming up with an approach where any communications with Mr. Moore be in writing via email and that Mr. Jones is copied so there is standardization across the board and the ability to make sure there are not different interpretations. Mr. Harry voiced concerns regarding the Economic Development Performance Agreements and how they are handled. Mr. Jones stated the ODC Special Meeting August 20, 2024 Page 2 city legal department will prepare the ODC agreements and the agenda and provider to Mr. Moore for review and approval. Mr. Harry requested that be put in writing. Mr. Boutin stated the important thing is that Mr. Moore developed some very good templates for ODC, and the intent would be to utilize those templates. In regard to the EDA’s, add “and reviewed by outside council” and to do the same for the façade and infrastructure items. Ms. Hollmann stated that this process will allow Mr. Moore to update the templates as needed if there are any changes to law or regulations. Mr. Jones stated he believes using Mr. Moore in this fashion will help city legal be fluid. Mr. Jones stated this year $16,000 was spent on outside legal. Ms. Banda stated $30,000 was budgeted for Mr. Moore’s services. Ms. Hollmann would like to make sure communication is clear that once EDAs are completed that city legal, and Mr. Moore have the final copies and make sure any time there is a question for Mr. Moore that it is via email and Mr. Jones is copied. Mr. Boutin suggested adding to the bullet point that says, “work with outside counsel”, the intent is for there to be written communication typically via email. Ms. Hollmann stated any time there is a phone conversation with outside counsel that Mr. Jones is to be conferenced in on those calls. Mr. Boutin stated that under Financial, the bullet point that states “Work with city staff and outside auditors to monitor and determine compliance with agreement terms”, needs to be changed to read “economic development agreement terms”. Mr. Boutin discussed the bullet point under Administrative Services, “Review the minutes of all ODC meetings prepared by the economic development department”. Mr. Boutin wanted to know if Ms. Vaughn of the Economic Development Department would continue taking the minutes for ODC Board meetings. Mr. Manskey stated that with all administrative duties moving back to city hall it may be more efficient and practical to move the minutes back to city, but the department will do whatever the board chooses to do. Mr. Boutin asked who would do the minutes? Mr. Jones stated that probably would be Stephanie Garay in the City Secretary’s office. Mr. Jones stated he would prefer to take it all back because it makes more sense to have everything in one place. Mr. Boutin suggested a change to the last bullet point under Administrative, it should be, “Provide for purchasing of supplies including name plates, plaques, post office box, minute books and other items needed by ODC”. Add “by ODC”. Motion was made by Mr. Boutin and a second by Ms. Hollmann to approve the City Proposal as amended. The motion was approved by unanimous vote. Resolution No. ODC-2024R-15 - Discuss and consider authorizing ODC to enter into an Economic Development Agreement with Rental King LLC for the development of a new location in Odessa (Resolution). Mr. Manskey discussed the resolution for the Rental King Economic Development Performance Agreement that was voted on at the last ODC board meeting, but hard copies were not provided in the ODC Board packet. Copies were handed out at the ODC board meeting. Mr. Manskey stated that he wanted to make sure the agreement was in the packet for this board meeting. The board previously approved the grant request that was raised. This is to officially make it legal. Mr. Robinson stated that his understanding was that the project would go back to the Compliance Committee to review before it came back to the ODC Board. Mr. Manskey stated he discussed with Mrs. Dean and Mr. Withrow with ODC Compliance and because there was nothing new for Compliance to review. The Compliance Committee approved $636,000; ODC Board approved the original amount of $210,000, it went before City Council and that is when council kicked it back to ODC Board for further review. ODC Board then approved the grant of $636,000. Motion was made by Mr. Boutin with a second by Mr. Harry to approve the resolution and EDA for Rental King LLC. The motion was approved by unanimous vote. ODC Special Meeting August 20, 2024 Page 3 Resolution No. ODC-2024R-16 - Discuss and consider FY 2024-2025 contractor agreements (Resolution). Mr. Boutin stated that in the Chamber’s agreement there is exhibit A and B. One exhibit is the General Development Plan, and the other is the Proposal. Mr. Boutin would like to make sure the preparation of the board packet is modified and to make sure to include the work the Chamber will be doing on the Façade and Infrastructure EDAs. Mr. Boutin would like to make sure the contract and/or development plan reflects that the Chamber is not going to prepare the minutes. Motion was made by Mr. Boutin with a second by Ms. Hollmann to approve the contractor agreements noting the changes in the Chamber’s contract are reflected properly. The motion was approved by unanimous vote. Resolution No. ODC-2024R-17 - Discuss and consider FY 2024-2025 General Development Plan (Resolution). A motion was made by Mr. Boutin with a second by Ms. Hollmann to approve the General Development Plan with the changes to the preparation of the board packet; the work the Chamber will be doing on the Façade and Infrastructure EDAs, and the Chamber will not be preparing the minutes. The motion was approved by unanimous vote. Discuss and consider FY 2024-2025 ODC Insurance. Mrs. Griffin with City of Odessa Risk Management discussed the renewal of the ODC Directors and Officers Insurance. The insurance last year was approximately $18,000. Mrs. Griffin asked the board if they would like her to get pricing. The consensus of the board was yes. Mrs. Griffin stated an application will need to be completed. Dr. Kirk will complete the application. Resolution No. ODC-2024R-18 - Discuss and consider FY 2024-2025 ODC Budget (Resolution). Ms. Banda discussed the budget and City Administrative Services. Essentially how the city determines the administrative services that are charged out to various departments not only ODC. They have a third-party consulting firm come in and they do a cost allocation study. The study basically breaks it down into two parties, the agencies who are providing services and the agencies who are receiving services. ODC would be in the receiving services. The fee in place now before the $30,000 was deducted was approximately $205,000. That fee was determined from the consulting survey in 2018. The survey is only done every few years. A follow up survey was conducted in 2021 that fee was significantly higher, $535,000. There was an increase of 8% across the board, not just ODC. Ms. Banda stated the board needs to decide what dollar amount the board would like to assign back to city legal for the services they will be taking on. It was $175,349 previously. $30,000 was budgeted for Mr. Moore’s outside legal services, the amount will remain the same. Ms. Banda stated they did not implement the 2021 study results in any department. After much discussion, a motion was made by Ms. Hollmann with a second by Mr. Boutin to approve the budget subject to the change to the line item for City Administrative Services in the total amount of $219,370. The motion was approved by unanimous vote. Citizens comments on non-agenda items. None Upcoming dates for future ODC Board meetings. The next ODC Board meeting is scheduled for September 12, 2024 at 2:00 p.m.in the City Hall Council Chamber on the 5th floor. Motion was made by Mr. Harry and seconded by Ms. Hollmann to adjourn the meeting. The motion was approved by unanimous vote. The meeting was adjourned at 4:45 p.m. ODC Special Meeting August 20, 2024 Page 4 PREPARED BY: APPROVED: Kathi Vaughn James Kirk Economic Development Specialist President ATTEST: Norma Aguilar, TRMC, CMC City Secretary