San Angelo City Council 10-6-20

[0:00:16] we will call this meeting to order at 8 31 a.m on the 6th of october 2020. we will start by having a chaplain prayer which will be followed by our pledges and we will have mr jenkins chaplain mr jenkins come up with his wife i believe marcella to lead us in our prayer and good morning everyone will you join with me as we pray precious father in heaven in jesus name we praise you we thank you worship and adore you and today is special because it's the first city council meeting where we can come in person and sh and just fellowship one with another face to face we thank you father for all that you have done are doing and about to do we continue to pray for those that have been uh infected with covet 19 and we pray for their healing and deliverance i pray father that you guide the city council as they take on the agenda for today bless our mayor our city council members city department heads and everyone that's here in this assembly we give you and you alone all the glory in jesus name and amen the republic for which it stands one nation honor the texas flag i pledge your allegiance to thee texas thank you very much we have three proclamations this morning

[0:02:37] the first one is the proclamation of october 4th through 10th 2020 is fire prevention week do we have folks from our fire department here today to receive this no we do not san angelo is committed to ensuring the safety and security of all those living and visiting our community cooking is the leading cause of home fires in the united states where fire departments responded to more than 173 thousand 200 annually between 2013 and 2017. more than half of reported non-fatal home cooking fire injuries occurred when the victims tried to fight the fire themselves financial residents should stay in the kitchen when frying food on the stove top keep a three-foot kid-free zone around cooking areas and keep anything that can catch fire away from stove tops san angelo's first responders are dedicated to reducing the occurrence of home fires and home fire injuries through prevention and protection education san angelo's residents are able to take personal steps to increase their safety from fire especially in their homes working smoke alarms cut the risk of dying and reported home fires in half the 2020 fire prevention week theme serve up fire safety in the kitchen effectively reminds us to stay alert and use caution when cooking to reduce the risk of kitchen fires therefore i brenda gunter mayor of the city of san angelo on behalf of the city council do hereby proclaim october 4th through 10th 2020 as fire prevention week and urge all citizens to check their kitchens for fire hazards use safe cooking practices and support the many public safety activities and efforts of san angelo's fire and emergency services brody would you come forward you walked

[0:04:43] in on me good we got our masks on would you like to speak no thank you then i'll just hand you this well thank you very much you know i'm on behalf of the fire department we appreciate it this is a very difficult time for our whole department and uh typically we're out in the schools with our children and teaching our kids fire safety but due to certain circumstances we're not able to do that so we're just urging our kiddos to be safe and be mindful this year let me ask you have you ever had a fire in your kitchen because you were cooking at the fire station we did that's going to be it happens to everyone so at my house we have a cooking timer so whenever it beeps my wife knows that we're done cooking some people call it a smoke detector but it's a cooker timer at my house good thank you for that hint we love it now we're going to have a picture tape oh yes ma'am oh what should i do with this you can hold it like that wait i wasn't smiling on that laptop thank you [Applause] our next proclamation is of world habitat day 2020 and affordable housing day i believe we have pam in the audience please come forward perfect stephanie come on up here on monday october 5th 2020 habitat for humanity of san angelo joined with partners around the world in raising awareness educating and mobilizing individuals and communities to act on the current global housing crisis habitat for humanity of san angelo joins our partners to rededicate ourselves to recognizing the basic right of everyone to adequate shelter we ask

[0:06:47] everyone to join as one global network in communicating the message that every one of us deserves the opportunity for a better future a decent place to live can remove barriers to opportunity health and success for growing families now and for generations to come habitat for humanity began in 1976 as a grassroots effort on a community farm in southern georgia the christian housing organization has since become a leading global nonprofit working in more than thirteen hundred communities throughout the u.s and in more than seven countries families and individuals in need of a hand up partner with habitat for humanity to build or improve a place they can call home habitat homeowners help build their home alongside volunteers and pay an affordable mortgage everyone can help families achieve the strength stability and self-reliance they need to better build lives for themselves locally habitat for humanity of san angelo galilei community development corporation and the city of san angelo stand together to help ensure we can provide affordable housing throughout our community through shelter we empower therefore i mayor gunter mayor of the city of san angelo texas on behalf of the city council do hereby proclaim monday october 5th 2020 as world habitat day 2020 and affordable housing day in san angelo texas and call this observance to the attention of all our citizens thank you very much thank you pam would you stephanie like to speak i absolutely would just give me this uh listen i i just can't thank mayor gunder city council i'm sorry oh yes uh i just can't i want to thank mayor gunter the city council galilee community development corporation the city of san angelo everyone that helps with the affordable housing here in san angelo texas it's bad enough around the country but here just in our own backyard with coved it's even getting worse

[0:08:50] people are struggling every day to even pay their their mortgages and the rent so it's very important just to be mindful of these people that need a hand up and not a handout because that's what most of these people are thank you very much i appreciate it stephanie thank you on behalf of gali we would like to thank habitat for humanity the city the mayor and the city council for the opportunity to work with them and to provide affordable housing to the community [Applause] our next proclamation is of emergency nurses week do i have anyone from any organization or hospital to come forward the nation's 90 000 emergency nurses are the first line of care in the emergency department and the first line of care for patients and families affected by covert 19. emergency nurses are committed to providing quality emergency care to their patients the emergency nurses association is built of nurses who continually demonstrate their professionalism and strive to upgrade standards of practice and improve patient care they risk injury exposure to communicable diseases and face potentially violent situations while aiding the sick or injured as the first line of defense emergency nurses are often the first medical professionals to provide treatment and comfort to victims of a major disaster frequently sacrificing time with their families to aid those in need outside of medical treatment and comfort emergency nurses educate the public in

[0:10:53] the prevention and treatment of injury and illness and the proper use of emergency services the emergency nurses association celebrates its 50th anniversary this year therefore i brenda gunter mayor of the city of san angelo on behalf of the city council do hereby proclaim october 11 through october 17 2020 as emergency nurses week in san angelo texas and call this observance to the attention of all of our citizens would you please speak well i have much to say i think this this proclamation really summed up what we see in the emergency department not just here in san angelo but across the state and i just want to thank you mayor gunner and the city council members for this proclamation [Applause] i know we all do thank you very much we will now move on to public comment issues or concerns not on the regular agenda may be raised by the public at this time citizens should speak from the podium address all comments to the dias begin by stating their name and address or single member district number and limit their remarks to less than three minutes do i have anyone from the audience who

[0:12:56] would like to offer public comment this morning with none i will offer a few words this morning today i once again want to thank all of the leadership in the city who have played a role in helping us combat kova 19 from our hospital ceos to the healthcare workers to the first responders our schools our county and to goodfellow air force base and special thanks to the city and all of the staff it is because of all of you that we have been able to continue to find a future without covet 19. thank you to your staff and to the very thoughtful plans that you have executed that helped in controlling the spread of covet 19. it is through all the leadership of san angelo and our citizens amazing strong west texas character that we have not seen huge spikes in cases on monday yesterday governor abbott announced he would be announcing additional opening openings of businesses soon the announcement was based on reduced hospitalizations deaths and positivity rates today our positivity rate for the past five weeks has stayed below 10 percent and our hospitalizations have continued to drop this past week our positivity rate was 7.7 up from last week's 6.8 but still below the 10 percent we are doing more tests than we were on july 17th and yet the positive positivity rate continues to stay low this news is because you as citizens have continued to follow the cdc guidelines thank you san angelo for being committed to stay the course with that said i know there are families who have lost loved ones and still there are people who are suffering from the damage done by governor abbott's closing of businesses and restricting occupancies in those businesses in san angelo

[0:15:00] we are a city of small business we are not a city of large corporations lost business has meant loss of employment lost revenue means the potential that a business might not be able to survive every business deserves the opportunity to be successful before the pandemic we had an unemployment rate of three percent today it is over seven percent that means people families and businesses are suffering financially mentally and emotionally we need each of you to continue to support our local business they are the backbone of this community without your support they can not succeed without your support they cannot rehire without your support they cannot continue to be in business with occupancies increased by governor abbott 10 days ago we still have businesses that have not been allowed to open although tabc has found a path forward for bars who choose to change their license there are those who have not been able to open their doors all businesses deserve an opportunity to be successful as mayor san angelo i know how important each of your businesses are i stand behind you i will fight for you we want all businesses to be open and to play a part in the financial recovery of this city each of you as citizens play a part in our community's success in combating covet 19. we continue to need your help your support in making this community successful and stopping the spread we need to be able to live our lives without fear i continue to repeat it is in our hands it means taking personal responsibility it means making a commitment to do the right thing it takes concern and consideration for others it takes respect of others your support of our business community is so important all businesses should have the opportunity to open their doors and succeed

[0:17:03] we truly are in this together together san angelo we are strong together we are one only together will we be successful i continue to ask governor abbott to open the doors of our businesses all of our businesses need an opportunity to serve the citizens of san angelo by opening their doors we need to let our business community continue to add to the quality of life quality of place that exists here in san angelo thank you with that said is there anyone who has decided that they'd like to make a public comment with that we will move on to the consent agenda i will ask if there's any items that council would like to pull from the consent agenda i will start with billy lucy no ma'am harry c c item c tom tommy with that may i have a motion to approve the consent agenda with the exception of item c any public comment on the consent agenda with none we'll take a vote all in favor of proving the consent agenda with the exception of item c please say aye aye with none opposed consent agenda with exception of item c is passed item c is considered approving the purchase of ems equipment from zoll medical corporation in the amount of six hundred twenty four thousand seven hundred fifty nine dollars and seventy one cents via npp contract m five seven one nine two seven three and authorizing the city manager to negotiate and execute all related documents patrick you're on and harry do you have a question for him just want patrick to kind of expand on the difference between

[0:19:04] the cardiac monitor defibrillators and the aeds and also says the citizens understand that this is not city money this is cares grant grant money so if you'll just say that patrick okay thanks for the question good morning council good morning mayor mr valenzuela patrick brody fire department assistant chief so the difference between an aed and a cardiac monitor aad is automatic external defibrillator it's totally hands-free limited skill level to use them they're required on all of our first out engines fire trucks they're meant to be a first responder tool to rapidly assess the patient's heart and deliver the defibrillation if needed cardiac monitor is a much more advanced it's for advanced cardiac life support a multitude of other functions those on our acls ambulances we have 13 of them that's where the number comes from you've seen aeds around all over state buildings it's meant for the layperson to be able to use them it actually gives you directions and most of our guys are very familiar with how to use it so they don't need the directions but still required equipment on a fire apparatus funding it comes from the cares grant funding is already available already been awarded to our city and we just went in on approval to immediately move forward and miss tina dearski she could probably answer better on where that funding is available at thank you harry do you have further questions now i'll move to approve as presented a second by tom any public comment concerning this item with none we'll take a vote all in favor say aye no i appreciate you no when opposed so the motion passes seven to zero that concludes the consent agenda so we will now move into our regular agenda comments regarding items on the regular

[0:21:07] agenda may be made by the public when each item is discussed as outlined above applicants proponents and appellants are expected from the time limit above and must are accept or exempted from the time limit above and must limit their remarks to less than five minutes i will ask cancel to remember that should you like to speak or ask a question you need to be acknowledged first and with that we will go to item a consider ratifying cosa dc's resolution authorizing the use of sales and use tax funds in an amount not to exceed 362 500 to provide an economic development incentive to special materials company or smc global and we have shannon scott and michael looney here to make a presentation you're on folks good morning mayor council shannon scott business retention and expansion coordinator for the city so before i present the resolution for ratification i'd actually like to give michael looney an opportunity to give you all kind of a background update on this company and a little bit more information this is a very exciting expansion project and again i'd like to give him an opportunity to explain to y'all kind of the progression of this company and their growth here in san angelo good morning city council mayor gunter city manager valenzuela smc global corporation is uh been in san angelo since 2018 and what i wanted to do is just give a little bit of background on on how it came about how this transaction was was conducted and a little bit about this company uh as you can see they are a new york city based company they are one of their biggest competitors is dow chemical so they are a multinational multi-commodity type corporation that makes many different chemicals for a variety of different industries in san angelo they specialize in oil field chemicals which is an obvious place to be because they're near the permian basin and they import a lot of their product through the port of houston so it's a very good jumping off point to the permian from san angelo

[0:23:11] they also have offices in china switzerland as well hang on a minute are we gonna get this there we go hold on ah sorry about that i'm this is a new little little clicker here but we're on the track now uh as i said they're a global manufacturer and what happened is back in 2018 we were approached through a tip that we got from a company that uh knew of them and mentioned that they were a chemical company from new york that was looking for a facility somewhere in west texas uh we contacted them and hosted them in san angelo at which time they had toured through houston to see if they could just do their distribution from houston and they also looked at facilities in midland and so we kind of came in on the tail end because we just met them after they had literally just gotten back from midland the midland market was very compressed it was very difficult to find property but there were a few that were available and they thought it might be advantageous to be as close to the well head as possible what they in exploration uh and uh and production because it preserves the integrity of the equipment that's buried down beneath the ground it's a very corrosive environment so this product is not tremendously expensive and you need to use it you have to preserve your gear that's down hole otherwise it will degrade very quickly so they have a very wide customer base which is one of the reasons why they've managed to do so well and and survive and actually thrive throughout this downturn yes the covid situation has created problems but really the degradation of the west texas intermediate crude prices which we saw in march of this year caused them to be quite fearful that there might be a big

[0:25:13] contraction that could impact their business and as i'll show you it is it has not impacted it that greatly it rebounded very quickly um they are they do 200 million dollars plus a year in sales they have 350 customers every continent of of the world and they have a 95 retention rate which they're very proud of this is different than some of the mega mega chemical companies because what they do is they take people with an engineering background to do their sales so that when when a company is buying product from them they're talking to somebody who knows everything about the application of the product as opposed to somebody who just is sent out into the field to fill orders they do not do that and they're very very proud of that and they are as i showed you before here they also have four factories san angelo is one of them the others in north carolina kershaw the other ones in texas which well just san angelo kansas city where they make a fiberglass product and then china they have had consistent company growth since their founding in 1994 and they have an excellent safety record and they're very proud to to state to us that they are a ctpat tier two qualified and validated member and they're a reach registrant what that means is that they have a lot of um they have a great track record within the chemical industry and that's something that they claim that a lot of their competitors can't quite make that claim about they're very safe company and they run things very very well because they're a small company and they can adjust very quickly to changes in the market and also new safety protocols which is one of the reasons why when the covet situation hit they were act able to react very quickly and perform their duties in a very safe manner they were recruited by the chamber with help from cosa dc we partnered with our our main partner co-cdc but also it's important to note that in one of the interviews that we had we had several members of industry along with us pitts fabrication

[0:27:16] wendland manufacturing b b ventures randy brooks was with us and hydraulic industrial services a company owned and managed by a guy named kevin dostal and what it did was it it it took them from a revelation of the city and the facilities that we had to an industry to industry discussion and that completely changed the entire fabric of the of the whole dialogue and really it went on for several hours where you had industrialists speaking to other industrialists about the effectiveness of being in san angelo meaning you've got workforce support you've got workforce board support training programs well-priced facilities and a quick access to their markets using the ports to planes corridor which is not an interstate highway but it has interstate highway qualities so it functions the same for their operation in may of 2018 they opened up their first hydrolyzation facility at 3820 cristoval road and then very quickly thereafter and that the crossover road property was actually an abandoned property that had been occupied by southern shingles and it wasn't in very good shape it needed a lot of work uh the 3862 tractor trail building was occupied and it was also vacant it was a company called westco which sold materials and parts to the oilfield industry so they did long-term leases at tractor trail and on crostoval road at crostoval when they started off they put over a quarter of a million dollars worth of material of facility equipment and and control systems and tanks and mixing and hydrolyzation facilities into the into the building if you drive by it you wouldn't notice it but inside of it it is absolutely spectacular it's a wonderful facility tommy's been in it we've looked at it before and it is amazing what they've done on the inside of it very very difficult to move very expensive to build out when they started off they reported to us just last week uh reminded us that they had 30 tanker trucks of material

[0:29:18] leaving the cristoval road facility uh to be disseminated throughout the co throughout the permian basin right now and and by mid 2019 and currently they have around 130 tanker trucks per month taking product out to the market it was noted that about a quarter of their product is actually taken back down to the port of houston as a viable mixed chemical and it sold offshore mainly to the middle east for their oil fields so this operation has truly got a global footprint from san angelo grew very quickly and uh they called us uh one night and said we need we need seventy to a hundred thousand square feet for a logistics and distribution facility there was only one property that we could find that was ready to go that didn't need to be built because that's that's a kind of a hard property to find even in a larger market like in austin or in atlanta that's a that can be a difficult property to find but we did and uh they worked with a real estate broker who found the old rg berry facility which is where they used to make clothing that's in tommy's district and and they looked at it and it worked out to where it would be perfect because it was absolutely designed as a warehouse and distribution manufacturing facility it has dock high doors it has plenty of room little things that you might not think about the slab can take that kind of intense weight that is the crostoval road facility you can see it if you had a before picture it didn't look quite as good but they're very proud they have signage on the building and they did also have to do a lot of work with aep on getting the power supply increased so they actually to the to the right side of that picture there's a very large ground-mounted transformer that they had to have installed and i wanted to say publicly aep did an absolutely tremendous job we worked with fred hernandez while he was on vacation and he made sure that that got put to the front of the line because there was a sense of extreme urgency they had raw materials

[0:31:20] coming up from the port of houston to be mixed and then sold and so that needed to be done rapidly that's the inside of the building they sent us these pictures so they're okay to publish those are their mixing tanks on the left and then they use 275 gallon totes to actually transport their equipment and make their drops at the wellheads so that the crews over the wellhead can inject the chemical equi the chemical with their equipment when it's needed and in the right syncopation with their processes they can't just show up and dump it down on the ground it has to be done in a very methodical manner this is an aerial shot of the property this is the one on cristoval road so that's their hydrolyzation and mixing facility and that's the facility that they need to expand and you'll hear about that in a few minutes this is the old westco building that they inhabited that also is used for specialty products small batch specialty products because it's office combined with warehouse a very nice little facility and that's located again near next to ups on tractor trail and that is what they did to the inside of it the inside of it was not in very good condition they completely transformed it to their corporate offices and and they're very proud of the work that they've done they have a staff of 17 people in san angelo local hires and i should also add that they did not let go of anybody during the covid crisis that is a uh aerial shot of the tractor trail facility you can see ups is in the foreground again then they moved on and they continued to expand so now we're up to three facilities 2801 west loop 306 the former r.j berry building they took every square foot that was available 80 000 square feet total

[0:33:22] good thing about that building is that it was available but it building was had been vacant for many many years we think based on documentations that we were able to find is that it had been vacant since 1994 and uh and was not being used really for anything but it was purpose-built for manufacturing and um and it was ideal for what they wanted to do so it was a brownfield building that was put back in service so now we've got three facilities in san angelo that have now been put back in service that's an interior shot it's a vast vast property the building couldn't be converted to any kind of a retail use because there's very limited parking there in fact you may know that there was a gym there and the council of governments has about a 12 000 foot office on the front side of that facility and that's the back side that faces to the uh to the south and you can see those those dock high roll up doors are perfect for what they do and that is an aerial shot of the property and they ingress off of loop 306 and then use it for the same uh egress as well this just shows the the reach of their three facilities and this is how they communicate they are always on the move moving product from one space to another and then for final distribution to their customers mostly in the permian but as i said some makes it back down the highway to houston to the port of houston they have 17 employees they pay very competitive salaries and they're most of their employees almost all of them except for two are are from san angelo their employees are very loyal to the company and the company is very loyal to them and assured them that during the covid crisis they would do everything to make sure that everybody stayed on salary and that they would not be furloughed and they stuck by that promise and those are the kind of companies that we like sometimes companies are backed into a corner and they just don't have any choice this company is a little bit different and they do have as i said a very strong

[0:35:25] esprit de corps and they do have continued growth plans in san angelo so that's just a little bit about the company there's a picture of of one of the events that they hosted and again they're a very loyal company to san angelo they want to grow and this day and age companies are recruited by many many cities and they could probably grow in a lot of places but they've made their commitment to our city and so what we're going to do is shannon's going to come up and is going to talk to us about the resolution for the expansion of their hydrolyzation and mixing facility if you have any other questions i've been working with them since 2018 we know them very well we're on a friend's first first name basis with the company leadership i'm happy to answer any questions that you might have does anyone on cancel have a question for michael at this point all right shannon come on up come on up shannon thank you michael so again as michael stated they are specialty chemical supplier with global sourcing and production facilities and some of their products include green solvents prosperous derivatives and color imaging chemicals so their expansion plans will include the purchase of the the building that they're currently leasing at 3820 crestoval road additional improvements and upgrades to that facility as well as the purchase of adjacent property that is currently vacant and as michael stated this is in councilman hebert's district again as michael stated they do currently have 17 full-time employees which they do anticipate retaining they also anticipate hiring up to five additional employees within the next three years uh with those employees having an average salary of sixty thousand dollars so with the uh expansion for the purchase of the building at cristoval road uh that they are currently leasing as well as improvements to that facility and then the purchase of the adjacent property they're anticipating expending up to three million dollars in capital investment

[0:37:26] and as we stated this will be their fourth expansion in san angelo since 2017. is that correct what's that this will be their fourth expansion since 2017. that's correct okay so pretty impressive growth in the last three years the breakdown of incentives that we're proposing would be a 350 000 capital investment grant once the three three million has been expended again for the purchase of the building at crossover roads improvements to that building and the purchase of the adjacent property which used to be the former patterson drilling property again we're asking that they retain the 17 current current employees and we're offering 2 500 per full-time full-time equivalent for up to the five additional employees so the total incentives package that we're proposing is three hundred and sixty two thousand and five hundred dollars finally with every uh excuse me business retention and expansion project that we propose we do run an economic impact analysis to determine the return on investment and in this particular case we are anticipating 2 million in annual economic output 1.3 million in gross area product annually and then a payback period of five and a half years so i would be happy to answer any questions and i'm sure michael would be as well i have questions from council at this point okay then i take a motion to approve mayor i would make a motion that we uh ratify this resolution passed by coast of d.c a second a second by lane all of those anybody in the audience who would like to make public comment on this item with none we'll take a vote all in favor say aye aye with an unopposed motion passes seven zero thank you very much we will move on to item b consider ratifying cosa dc's resolution authorizing the use of sales and use tax funds in an amount not to exceed 150 000 to provide an economic development incentive to bp surface solutions llc dba at dorado construction group and shannon you're on again thank you

[0:39:33] as mayor gunner stated this again is another ratification of a resolution for dorado construction group so what they do is they provide end-to-end and specialized civil engineering services as well as construction services for the oil field infrastructure and they're actually going to start branching out and doing more municipal government related projects so along with the oil field infrastructure and engineering services they provide they're starting to diversify so that's that's good news their expansion project will include the purchase of a new building that's going to be located at 424 south chadburn as well as new furnitures fixtures and equipment to outfit that building and this is going to be in councilman harry thomas's district so currently they have 93 full-time employees they do anticipate hiring up to 25 additional employees within the next three years with those employees having an average salary of 70 000 so their expansion plans include 2.7 million again for the purchase of that facility off of chadburn street as well as the new furnitures fixtures and equipment shannon it says 93 employees that building wouldn't seem to hold 93 employees so they actually do have another facility uh it's located i believe it's 4705 south chadburn so that's where they house most of their employees this would actually be their corporate office uh so the bulk of their employees are actually at that other facility so this would be an additional facility okay and the breakdown of incentives for this particular project would include a hundred thousand capital investment grant again once that 2.7 million has been expended for the purchase of the building furniture fixtures and equipment we are asking that they retain their 93 current employees and we're offering up to 2 000 per full-time equivalent for up to the 25 ftes so the total incentive incentives package that we're proposing is a

[0:41:35] hundred and fifty thousand dollars what's the time frame if you'll go back what is the time frame on the hiring of the 25 it would have to be within the next three years thank you again in this particular instance the economic impact includes 9 million in annual economic economic output as well as 4.9 million million in gross annual product and a payback period of 6.2 years and i'd be happy to answer any additional questions do i have questions from council on this item yes billy shannon how do you determine the payback period so that takes into consideration again many factors such as the number of employees that they have the average salaries um it it it takes into a lot of different factors and what we try to do basically it's the amount of incentives that we're proposing uh as opposed to again how that reflects what the uh number of employees that they're going to hire that they're going to retain the salaries it takes a lot of those things in consideration and what we try to do is really keep that around five years but under 10 years so anything under 10 we we determine is a good return on our investment anything over that we we try to to work the numbers so that we can stay under that 10 years but closer to the five years okay and the reason i asked was because um smc that we you know um gave a large amount of funding had a lesser time payback period than um dorado correct did and i think with that one the risk is probably a little bit lower as far as uh the number of employees that they have to retain as well as how many they're expected to hire in this particular case um i guess it could be so-called classified as riskier to maintain 93 employees and then hire 25 additional employees so it kind of weighs out the risk versus reward if that makes sense well i would think as they're refocusing on their business

[0:43:37] model meaning they used to be very much focused on the oil and gas industry and now trying to develop a relationship in the municipality business you're not talking apples to apples you're now reaching for a new market so i would assume there's a little more risk with trying to attract a new market right or maybe there's more risk by staying only in the oil and gas industry you could look at it either way correct and it does take into consideration the type of industry that um that we're using so further questions well that was it thank you okay and no yes lucy i just wanted to ask these 93 employees that we show that they have now are they did they come with the company or they people that are employed from here from san angelo so these are currently employees here in san angelo uh and i think what's important to note is we began negotiations with dorado back in january uh and at that time they had around 101 employees so they've only lost four uh in the past eight months essentially which is very impressive considering the factors um but like i said with the new diversification of what they're trying to do to get into the municipal side they anticipate hiring you know the need to hire those 25 additional employees in order to fulfill that commitment but these are local already existing employees here in san angelo any further questions harry would you like to make a motion i would make the motion to move to approve is presented i think this is a good opportunity for the city and do i have a second a second by lucy any public comment with no public comment we'll take a vote all in favor say aye aye motion passes 7-0 thank you thank you we will move on to item c consider ratifying a real estate sales contract and economic and development performance agreement as approved in a resolution by the kosa dc board of directors on august 12 2020 and amended by city council on august 18 2020 in a motion to ratify the resolution approved by kosa dc

[0:45:41] authorizing the negotiation execution of a real estate contract with weisner holdings llc doing business as south plains la mesa railroad and negotiation of a real estate development performance agreement for the developing marketing and operation of an industrial transloading facility with an amendment authorizing the board president to negotiate the real estate contract in conjunction with the executive director of the development corporation the city manager the city attorney and the co-cdc attorney and guy andrews euron hey thank you guy andrews director of economic development with the city of san angelo development corporation thank you mayor city council mr valenzuela this is an exciting day as you can well see for economic development in our consent agenda we approved an item that will help us complete our expansion of our industrial park that will open up an additional 93 acres in that in that industrial park you can see that our brep program business retention expansion program is thriving with a couple of items this isn't a very exciting project for us we view this as a game changer for san angelo we've been working on this project for nearly two years it began as actually the chamber of commerce identified a need to provide a multimodal transloading facility for our local clients and then we began to work towards that looked at identifying a site back almost two years ago our consultant roger horton with shade transportation michael looney michael dain and myself and bob schneeman drove this entire line looking for a potential place to house this facility we actually identified a couple of sites

[0:47:46] one of them was a smaller site over close to winland tank and then we also identified a 180 acre site that we'll be talking about in this contract which is just north of the texas pacifico classification yard ideal location for this particular facility as you'll recall last year we spent the entire year then came to close on purchasing that facility now as our consultants in the project we worked very hard with the chamber and again i will single out michael looney and roger horton's extremely hard work and identifying that we had potential demand for such a facility and the other thing we asked them to do which was our ideal would be to find somebody that could actually own and operate this facility as a public-private partnership and thanks to their diligence we found such a partner and so this brings us to what we're wanting to ratify today in regard of the sales of that property to potential or to our owner operator for that facility must be pushing the wrong one there good news is that today is october the 6th 2020 and we are at the city council meeting we this is a are oh there we go okay you will recall that uh the city of san angelo development corporation board of directors approved a resolution back on august the 12th

[0:49:49] that was amended by city council on august the 18th in ratifying and what they asked for to protect the city's interest in this particular facility that not only the development corporation be involved in those negotiations but we would have a city manager designee which was michael dayne in this case we involved our city attorney teresa james and also our coastal d.c attorney dan solari in those negotiations so uh both the the real estate sales contract and development performance agreement were negotiated is required by the amended resolutions again they're the people that uh were represented in there and in addition to that we also developed the real estate lien deferred payment note need of trust and special warranty that are necessary for closing the sales contract that we're asking to ratify is for six hundred thousand dollars at zero percent interest for six years these uh payments are forgivable as long as the terms of the performance agreement are being met so as long as they're performing they have the ability to have those payments forgiven and at the end of six years to actually own that facility the closing date actually has already been set for this project pending approval for october the 15th so next week the main provisions of our performance agreement with them is that they will initially invest a million dollars to build out the initial facility they'll actually have be sharing employees they own a facility in slayton

[0:51:52] texas and share facilities and locomotives with that facility so but they will have two full-time employees by 2023. they have to reach agreement with the texas pacifico on the rights and services which they've done they have to adhere to the local state and federal regulations they will consent to voluntary annexation at the end of this agreement they'll be they must continue to be maintained as a functional trans loan facility they need to have local contractors and supplies of preferences to to do business locally with those folks as much as possible and very importantly that they will have at least quarterly meetings between us the chamber of commerce to make sure that everything is on track in this this is a partnership uh there are lots of moving parts to this but uh it's it's a great partner partnership and a great example of a public-private partnership i'd be able uh glad to answer any questions that you might have in regard to this i have questions from council if none may i have a motion for approval go move mayor a move by uh tommy second but was that harry or tom harry okay any public comment with none we'll take a vote all in favor say aye aye aye none oppose motion passes thank you very much thank you guy yeah it kind of reminds us of you were always early on talking about planes trains and automobiles so it looked like we're we had the planes we have the automobiles and now we're getting them we're hitting three on high gear and this has been hugely important for us not only for potential recruitment of companies going forward but to support all the local businesses whether they're agricultural oil and gas related or any other thing

[0:53:55] so this has been a long time coming and a big point in my economic development strategy for the city so i'm excited and i'd just like to say a thank you to everybody that participated in this because this is an exciting opportunity for san angelo so guy and michael and teresa and all of those that are not here thank you thank you billy all right we'll move on to item d and item d is as follows consider accepting an annexation petition for 88.936 acres of land out of track two and track three block one section one tom greene county business park tom green county texas generally located east of u.s highway 67 and 277 and north of tractor trail and setting a public hearing on the annexation for the november 17 2020 city council meeting john you're on thank you john james director of planning and development services for a few of these annexations that were on consent oh that was the one i needed so as you may recall the area of the county jail was disannexed about four years ago and part of that disannexation included an agreement for them to re-annex at some point in the future you may recall that this was related to a grant that they wanted to get that required them to be outside of the city limits and so as you may know they did not get that grant and so now they are asking to have the jail facility re-annexed into the city you may also recall the disannexation included an area larger than what they're asking for reannexation um and so but so at this point that that area may be annexed again at some point in the future uh but at this point they're just

[0:55:58] wanting to re-annex what's there in orange on the map you want to talk why they're asking for annexation well again they really didn't have any desire necessarily to be outside the city limits as a county organization they don't pay city taxes anyway so it's not a tax issue they are interested in receiving the full range of city services like fire and police and and all of that which they don't necessarily get being outside the city limits and again the only reason they requested disannexation in the first place was uh to pursue that grant opportunity and so now it's come to the point that the county commissioner's court has voted to seek re-annexation which is why they've petitioned the city council and again i want to remind you today is simply accepting that petition and starting the ball rolling on the required statutory process you're not annexing anything today you can see there we have a schedule laid out where we'll have public hearings in november and december between now and then there are some steps we have to take including some notifications and some publications in the newspaper and those sorts of things but this is simply accepting their petition to begin that process does the city experience any additional costs either in the process or ultimately in the annexation in terms of expenses that would happen because of the annexation well part of the way i'll answer that question is we do a service plan analysis throughout this process so when we come back in november we'll have a more detailed answer for that i think the short answer is not a lot because per the agreement we had with the county when they disannexed

[0:58:00] many of the same services and requirements city ordinances and those sorts of things still apply to the area under that interlocal agreement and so for example sewer and water service are still provided and so i don't think the cost burden to the city would be the same as it would be if we were talking about annexing you know potential commercial property but the longer answer is we'll come back to you with more detailed information on that once we come back with the annexation do i have questions from counsel tom nope all right so then um i need a motion to accept the annexation petition by lane and a second by tommy any public comment there's no public comment yes there is a public comment hold on we've got i know i'm seeing them rick bacon i got eyes all right we just finished court so uh appreciate but just wanted to come i think i'll appreciate y'all taking the consideration and and uh helping us with this appreciate it very much thank you all right with that we will take a vote all in favor say aye aye none opposed motion passes 7-0 we will move on to the last item on the regular agenda which is item e first public hearing and introduction of an ordinance submitting the budget for the fiscal year beginning october 1 2020 and ending september 30th 2021 for grants and reimbursed expenses tina thank you mayor good morning council mr valenzuela tennessee virtual finance and i don't know how to use this apparently okay sorry about that okay so i have a budget for you today and we have a number of grants come up and opportunities for the city to receive money at the state federal levels um so this first one is to finish receiving the crf um monies from the federal government through the through the state tdm um it's a remainder of the uh crf monies uh that amounted to just over five million dollars we've already budgeted for million dollars that we're bringing to the rest of it so that we can get that used for good purposes for city expenditures and the second one is for a police grant that they're able to use for just any type of police department expenditures and they are transferring

[1:00:01] that to the county third one is for the airport a grant that they're receiving to help reimburse for law enforcement expenses forty seven thousand dollars um these next two are for neighborhood and family services they are receiving again more sr funding from the government um 180 000 in this first one for rapidly housing projects and 582 thousand dollars in the second one and bob solis director of american family services has indicated that he will be bringing back the plan to the council to once he has information on how he's able to use those funds next is our charity care reimbursement that we receive um for the medicaid reimbursement is what it was called previously um and we are requesting to use those funds this year to help with the peak hours ambulance uh services that are affiliated with that peak uh with the charity care reimbursement and then a fire department's requesting to use the remainder for the purchase of a new ambulance and i think that finishes that up totals the first the very first amendment was four million and that's exactly what you went through the individual slides totals the 4.3 no ma'am each of these amendments is in addition to that 4 million okay so do we have any plans for the formula because in their time frame that we have to um use that by yes ma'am december 30th is the deadline for that and so actually we just received an email um late last week from tdm which is the state level that it's transferred through to the cities um and they are requesting a plan for that and so i have a meeting set up this afternoon with my staff to get together plans that we can present it to city manager and get some direction and feedback so um we just have to present a plan we don't have to have the money spent by december or do we have to have it we do for right now yes we have to have it spent by december 30th um the state is requesting the federal government to extend that deadline and we would hope that the state would follow suit with us if that were to happen but so far it hasn't so any further questions for tina with none do i have a motion to approve the ordinance amending the budget for the fiscal year october 1 2020. no movement emote motion by billy may i have a second a second by lucy

[1:02:03] any public comment with no public comment we'll take a vote all in favor say aye aye with none opposed motion passes seven zero there will be no closed session so we will move into item eight follow-up administrative issues with item b consideration of approving various board nominations keeps an angel beautiful neil townley smd-1 to a second term ending september 2022 may i have a motion move by m seconded by billy i think was that billy elaine any public comment with none we'll take a vote all in favor of proven item a b say aye none opposed motion passes any announcements or consideration for future agenda items by council with none we'll ask for a motion for adjournment if we adjourn mayor city council meeting of 10-6 2020 is now complete

Captured 2026-07-26 · source: youtube.com/watch?v=UBAd-UY_OZw