City Council - Regular Meeting

me to orders our work session for September 23rd, 2025. I'm going to ask Council Member Chris Hane to give us our opening invitation. Please stand if you're able.

God, we we come to you today, Father. We just thank you for the gathering this the men and women, Father, in this room, Father. And may may each one, Father, be a blessing to you, Father. May each one with with the way that they run their departments at at the city here, Father, may may they, Father, do your will, Father, for everything. And Father, up here on the council, Father, we ask the same deal, Father, that our our intentions be built around you and not around our personal lives, Father, but around you. And we just say all of this, Father, in Jesus mighty name. Amen. Amen.

Amen. All right, let's uh begin with discussion on item number three. Uh an update on the Rochester feasibility research and any potential partnerships with the city and Habitat for Humanity. Jeff, how are you? Good, thank you.

Want to just provide a little bit of an update. We signed. It's been probably a month and a half ago or so that we have been doing some blood work and I brought along our executive director Joey Hopkins just to provide an update specifically on the Rochester piece of property. Um yeah, so thank you again for letting us chase this out and kind of being open to some crazy ideas. Um so what we did, we split up a few different um tracks that we were interested in and we're still chasing those out. We talked to an attorney about some of the mineral issues. um that doesn't seem to be an issue. Um and so for Rochester specifically, we got a environmental report done. Um I think someone with the city talked to the surveyor on that. Um and and basically everything came back clean. Um you know, there was they went through all the historical records. There was one small thing that came up that you know million years ago someone had buried some salt, but we don't seem to think that that's an issue. Um and so I ran this by my just said, "Here's where we are with this situation. We we reviewed this. Um we're going to take this to the city council and and present it to them and they don't have any issue moving forward with any development with that." And so, um we appreciate you letting us get this far. I think the next step would be would y'all be comfortable moving to the next step and consider gifting it to us so that we can start moving forward with the development plans and um and all of the work to get it the buildable houses. I

think the answer is yes, but I'm going to ask my council to speak up and kind of give us a go ahead. Thumbs up, thumbs down, gentlemen. I'm certainly a thumbs up. Yeah, any anything and everything we can do for affordable housing. I agree 100%. Grievable, Chris, I think the answer is yes, Erin. Yeah. Oh, speaking on your mic on Let's see here. I think the next step then we put it on our regular agenda item for October 14th, our next meeting. Okay. So, we'll definitely get it on the agenda and with the plan on moving forward with I'll let the smarter people figure out what the next step actually is, but we'll consider and

make a whatever motion needs to be made to get it moving forward. Okay. Okay. Super excited. Fantastic. We appreciate it. Joy, you've been doing okay. I am. It's good to see you. Good to see you. Amy says hello. Thank you. I was at Midland City Council this morning and saw her there. Okay. Double dipping. Two council meetings in a day. You get to go home. Y'all stack them right there next to each other. Jeff, Joey, thank y'all very much. We appreciate it. Thanks. Thanks, Jeff. Move to agenda item number four. Discuss the purchase of five-year extended warranties that include included engine and transmission for solid waste and public works street trucks. Bottle.

Mayor and council, the city has been receiving new trash and public works trucks for over a year. All but four units are without a 5-year extended warranty for the engines and after treatment. These two components, plus the transmission, are among the most expensive to work on. TMI, thank you. 29 units were purchased from Vanguard. Four of these units do possess a 60-month engine and after treatment warranty, but none of the units have a transmission warranty. 19 units were purchased from Waco MAC. Seven of these have an exhaust warranty, but none of them possess a 60-month engine or transmission warranty. A lot of information there. Sorry. Of the 19 units purchased from Waco Mac, we are still waiting for delivery on five units. The pricing for the Waco Mac warranties is shown here. Some of them are more expensive since they do not have the California Air Resources Board Standard exhaust warranty. The units purchased from Vanguard do possess the carb exhaust additional warranty. As you can see, these are not all solid waste units. 11 are streets as well. 10 units purchased from Vanguard have not been delivered, but are scheduled for delivery next fiscal year. I pulled several invoices to see the average cost of an engine overhaul as well as the cost of replacing a transmission. The cost to replace transmission is anywhere between 17,000 to $27,000 per unit. An engine overhaul ranges from 40 up to $70,000 per unit. The 5-year time frame of the warranty starts upon delivery. We are already a year into 12 of these units warranties. Any questions?

Lots of information.

So, does this warranty kick in after their warranty runs out or is it together? So, they have a 2-year warranty currently. It would extend the warranty to five years. Okay. What's the lifespan of these vehicles? Five years. Okay. So, we plan on getting rid of them after five years. This will make sure for those five years that we own them, 100% engine and transmission, which seemingly cost 100,000 if you get two of them. I mean, yeah, it's not cheap. We have a lot of problems with the transmission. Transmissions we generally do. Yes, sir. And are these the solid waste units that are the the side loaders and front loaders or

Yes, sir. Okay. And so historically then I guess we were not purchasing I'm going to call them fiveyear warranties, right? I'm not sure why they were not purchased originally. They they should have been. Um and I'm I guess going back and correcting the problem. Laura, I was going to add I think it's a proactive and a common practice in many of the larger cities in Texas now for uh municipal fleet operations. Um but Cal you touched on a port a point at that a lot of times that u the best negotiation is at the time of purchase. Exactly. But I think you're wise in pursuing that. Thank you.

You we need action like on a next council meeting or so you want us to Yes, sir. Okay. I think you I think we all think it's probably a pretty good idea. So, okay. Let's just have that on the next agenda. Okay. Sounds good. Thank you. All right, let's go to agenda item five. Don't move a muscle because this is yours also. Discuss partnering with Soul Ford Fleet Management. Let's see if Odessa replacement vehicles. This is large.

Okay. Make sure.

Yeah. Okay. During the process of determining which company would utilize we would utilize for leases, we vetted three potential vendors that would have the ability to come in and help the city replace long overdue vehicles. Su stood out as our overall choice. SU Fleet Management is a local vendor with personal service. They have the capability as well as the ability to address the problem of the city's aging fleet as quickly as possible. SU has vehicles on the ground ready to go already outfitted. The city's fleet will be refreshed and new, giving the employees of our great city a significant morale boost. I'd like to introduce Reed Hoffman with SW Fleet Management.

Good afternoon. Good afternoon. Afternoon.

Just make sure I know how to work. Perfect. My name is Reed Hoffman. I'm with S Fleet Management. And so today we're gonna I'm gonna present our fleet management program. And at the end of the day, the entire point to this fleet management program is make sure that you guys are staying within the optimal life cycle of every one of your vehicles and we are lowering the overall fleet budget for for your city. And so if you're looking at my slide here, what our program is designed to do is track help you track the three largest expenses that come with a municipal vehicle. And that's depreciation, fuel, and maintenance. And for this initial part of this conversation, depreciation strictly means the loss in value of your vehicle. Okay? And so the reason we want to do that is if you look at the left side at my handydandy graph, we want to find through data and analytics the sweet spot or optimal replacement period or timing for every one of your vehicles from a trash truck down to a sedan, SUV, does not matter. If you think about it, every vehicle, whether we're talking about class 8 over the road tractor trailer or the smallest SUV, has an optimal life cycle. There are machines. there's a diminishing point of return. And so again, we want to find where all of these variables intersect, lower your overall fleet budget. Now, the one thing that is most often overlooked is the resale portion, but to me, it is arguably the most important piece of good long-term fleet planning. And I'm going to show you what with some data to back that up. But that is one of the things that we are going to do for the city over the long term is capitalize on the resale of the vehicle. Now, I want to throw out a couple of things that that I've seen throughout my career. And so, when we look at municipal, county, government vehicles, typically compared to your commercial

counterparts, a government vehicle does way less annual miles than what a commercial uh vehicle would do, right? And so, the initial instinct is to hold that vehicle as long as humanly possible, right? because we want to avoid what? Buying another vehicle, right? And so the way we see vehicle costs and the way that we're going to show you vehicle costs isn't just the acquisition price or an interest rate. Just because you buy a vehicle or fund a vehicle, put it into service doesn't mean that the cost stop there, right? So I want you to see vehicle cost in terms of total cost of ownership. If you picture different buckets, we've got our acquisition cost, our funding, maintenance, fuel, resale, downtime, image, safety, right? And we want to use our resources in conjunction with how you are currently operating your vehicles and shrink each one of those buckets as as far as humanly possible to lower that overall total cost of ownership. All right. The way we're going to do this is with our fleet management program and services. So, I'm going to start here with life cycle management. And this is everything from point A when we acquire a vehicle to point B when we eventually resell a vehicle. And what we're going to do again is manage the life cycle of every one of your vehicles. So, our program cost is $30 per vehicle per month as a part of that program. And instead of unlike other fleet management companies, instead of charging for our ancillary programs, we include our maintenance program, our fuel card program, roadside assistance, there is a dashboard for visibility into the data and we give you a dedicated account management team that is going to come and meet with the department heads. I would assume you guys at some at some cadence, but we're going to meet with the city. Usually it's quarterly but

again we can customize that cadence because we want to be a second set of eyes and ears on your fleet data data to be making the best recommendations. Now when we talk about life cycle management as I said everything from acquisition to resale one of the things that we are going to do and I'm going to show you here how we're going to do this is we want to get you as proactive as humanly possible. And when we get you proactive one of the things that we can do is order direct from the manufacturer and we are brand agnostic. So whether you want to do Ram, Ford, General Motors, Toyota, Nissan, Maserati, what whatever it is, we can order direct from the manufacturer. However, we understand that you operate in the real world and we won't have that lead time every single time we buy a vehicle. And this is where I'm sure you're familiar with the SU name. We have one of the largest commercial and government dealerships in the nation. And so we have tons of new inventory with no additional markup like another fleet management company. When it comes to maintenance and fuel, we do have a pass through maintenance program where you can outsource to the local tax base. However, I know that you have internal mechanics and in an internal mechanic shop. I'm not asking you to change anything. What I am saying is that we can capture all of that data, put it into one system, and where it makes sense. Again, we're we're not going to dictate anything. We're going to work with the department heads on how they feel the best most efficient way to do this is. But we can either in conjunction with the local tax base continue to use your internal shops. Maybe there's more efficiency for for instance, I've seen this with other municipalities where let the mechanics work on that big stuff. And again, if we're staying within the optimal life cycle of a vehicle, we just talked about warranties. The vehicle should be under warranty at all times. And all we should be doing is preventative maintenance. So maybe there's a a way that we could do a hybrid type program. But again, if you

want to stick with solely using the internal shop, by all means, go for it. I think I'm going to stop there. All right. Now, we're going to talk about funding. So, the way that SU fleet management sees funding, it is strictly a strategic mechanism to get you from point A when you acquire a vehicle to point B when you eventually get out. We want to marry two main goals with a vehicle. Number one is the operational use of the vehicle. Number two are the budgetary concerns, restrictions, or just how you want to treat your budget. So, at the end of the day, it really doesn't matter how you fund a vehicle with Soul Fleet Management. If you want to pay cash or outlay a budget line item for a single vehicle, you're welcome to do that. If you want to do a traditional finance, I think we're all used to how we would go finance our personal car, you can do that as well. One of the things that I'm willing to talk about today if you have any questions, one of the things that we are very successful with is we do municipal municipal track leasing. It's called a bunch of different things. And I know as soon as I say the word lease, there's a preconceived notion usually in somebody's mind about how a lease works. Like again, if we were going to go down and lease our personal car, and this works nothing like this. The main concept with one of our municipal leases is to maximize budget, maximize cash flow. So, if we are picking or trying to pick a specific point in the future to get out of a vehicle, why outlay all of that cash, all of that budget? So, what we're going to do is only have you guys pay for the portion of the vehicle that you use. And so with our leasing, there are no over mileage charges, no mileage restrictions, no wear and tear penalties. There are zero. You're going to build equity during the funding term to use like a down payment on the next

vehicle.

Also, you can upfit the vehicle, modify it however you want. Again, we we do this fleet management and leasing with many many law enforcement um departments across the state of Texas. And I'm sure you know how much of fitted equipment goes into one of those vehicles, right? So if if you if what I'm going to show you next, if if you picture this entire program and the goal of this as a three-legged stool, we want to match the correct life cycle of the vehicle with the strategic funding. So, we're keeping that budget in so we can use it other places and then capitalizing on the resale to lower the entire overall budget. And so, what I'm going to show you next, we did a fleet analysis for the city. And I I know there's a bunch of numbers on here. Bear with me. So, this first part is the multi-year fleet planning toolkit. Remember how I said we want to get you as as proactive as humanly possible so we can order direct from the manufacturer. So, we took this is just a screenshot. We took uh your entire fleet list, 428 vehicle vehicles, put it in here, and what we were looking for is the age of the vehicle, the type of vehicle it is, whether it's gas or diesel, how many miles it currently had on it, and then what we want to look at, if you look at that annual mileage column, we want to we want to track and we want to understand what each one of your vehicles historic annual mileage pattern is. And it has nothing to do with funding or charging or anything because then we can come over to the right where you see the years one, two, three, four, and five. And we can put X's into the appropriate box cell year, however you want to look at it, of when we're anticipating that each one of those vehicles should be replaced. And so again, what we can do is is come to the council every single year and say,

"Hey, this is our plan. We can look out the next five years and we can we can be proactive. And I think if CO taught us anything, it's that those organizations, even companies that at least had a plan that they were working off of, it was at least easier to audible. But if we're waiting and being reactive, number one, we're at the mercy of whatever the market has. Also, we're going to pay more for those vehicles. So, this is a way to get us proactive over the next five years. But the cool thing with this is that every version of fleet planning that we put in here because this is meant to be a collaborative process, it flows through here to this analysis results. And big picture here, I'm going to go through the three different parts here, but big picture, what this is designed to do, at least this first iteration, is take an average 12-month snapshot of what your city has typically spent over over the years in acquisition, funding, maintenance, and fuel. And so, if you look at the top leftand corner there under current situation, this analysis had 428 vehicles in it. I'm going down the column labeled fleet. 428 vehicles. The the average vehicle for the city had 55,000 miles. The average vehicle did about 8,000 miles a year. And if we were going to go out and replace the average vehicle in this 428, it would cost about $55,000. Obviously, Taho are much more, some would be less. That's the average. Right now, con what we're what we're showing here is a very conservative maintenance spend. $237,000 per year to maintain that 428 vehicles and fuel based on the price of fuel. This may change, but we've got an average of $758,000 that you've spent yearly fueling those 428 vehicles. What we're showing if you go to the right on the cycling comparison that again on average over

428 vehicles, you should be somewhere around a fiveyear cycle. The average lease payment would be $985 per month. Now, we're going to put all this together and we're going to go down to the bottom underneath where it says fleet mix on the left under fiscal year where it says current. That row again 428 vehicles in this analysis. On average over the past couple of years, you've purchased 37 vehicles. I took two years precoid and the past two years. Obviously, some were more, some were less. If you pay cash for all all 37 of those vehicles, you outlaid on average about $2 million in budget to fund those 37 vehicles. We bring the maintenance and fuel down from the top. So your overall fleet spend on average in a given 12 months is about $3 million. Now, we're going to go down to year one, right underneath where it says current. What we are showing is that the city currently has 106 vehicles that are either past optimal replacement benchmarks or in the next 12 months going to be past optimal replacement benchmarks. And so what we're recommending is that we make a plan to replace 106 vehicles in the next 12 months. However, instead of outlaying capital, instead of outlaying budget, in this in this ends, $2 million for 37, we can actually fund strategically through a municipal lease those 106 for $1.2 million. Now, if you look at maintenance and fuel, our maintenance expense or budget is going to drop significantly. So is our fuel budget. Does anybody know why? Newer vehicles cost less to operate than older vehicles, right? And then if you look under the trade credit, remember I said that resale to me is arguably the most important piece of this whole thing. I left year one blank because we have a bunch of vehicles that are 10 to 15 years old. If

whatever we get or recoup in resale value to me, icing on the top. But what I want you to do is look down over years three, four, and five. when we are replacing vehicles at the optimal time, especially for a government vehicle because it does such such lower annual mileage. if we have a 5-year-old vehicle with 50,000 miles instead of a 5-y old vehicle with 120,000 miles. Obviously, those resale values are much different. But all in all, this again, I'm willing to go into this in more specificity if you want me to, but if you look down on the right hand, lower right hand corner with a strategic proactive plan, funding vehicles strategically, lowering our operational costs, and then capitalizing on the resale portion. I think conservatively over the next five years we can bring back about $4.3 million back to the city budget. Safer vehicles, newer vehicles, happier employees. Do I have anything left? Also, I mentioned this dashboard. So, we're we're going to aggregate all of this data and analytics into one dashboard that the department heads, the the the drivers of the city vehicles, we can push preventative maintenance reminders, but basically, we're going to take anything that has historically been manually remembered or done on a spreadsheet and we're going to automate it and and again, keep up with all of this data where we're going to be able to track it and bring the city council updates, I guess, however you If you want to do it quarterly, that's fine. Also, the competitive or due diligence process is done. We don't need to go to RFP. Our program has been vetted by different purchasing cooperatives. So, we're on byboard, HDAC Tips. I believe we're going to use TIPS. The idea is to use tips for this one.

But again, the due diligence process is done in our program has been vetted by these purchasing cooperatives. That's it. Questions. Lots. Yeah, I know that's a lot of information. Whenever they say, "Hey, get this down to like five." Let's start. Let's start with the easy one. Yes, sir. I don't know. I know we have our own fueling stations. We've got them all around the city. So I don't understand how your fuel costs are going to be less than what we're paying. We're already buying in bulk. Yeah. I'm I'm not recommending that you utilize our fuel program. So this is where especially with government, you've got resources that Go ahead, sir.

Yeah. I say basically what you're telling me is a 2026 model is going to get better gas mods than a 2012 model and a 2012 and a 2013. That's what I'm hearing you say. Correct. Oh, in fact, that's one of the biggest places I can usually point to with government fleets. On day one, you will reduce your your budget. If you think about a let's take a half ton of pickup truck 5 or 10 years ago, it got 16 17 miles to the gallon. Now, they get 2021. And to your point, even a sedan or a small SUV 10, 12 years ago, 20 miles to the gallon, everybody, hey, great. Now, we're talking 32, 35 miles to the gallon. Yeah. But, and that really is the idea. But again to your specific question um if okay

keep keep the way you guys are doing fuel. What we want to do is capture that cost, put it in the dashboard. We have ways of doing that. And if maybe there's an opportunity if people are traveling for training or something and they're not at one of the fueling stations, we can have some gas cards out there to help them purchase again to track that fuel cost. But well that that was really a minor deal. Yeah, I'm more worried about the warranty work because I,

you know, I know how busy y'all are and I drive by, you know, I drive by the dealership all the time and I I'm just curious how how long is it going to take to get a vehicle serviced if it goes down? And we decided we don't want to do it. It's under warranty. It's got to come back to you, whether it's Ford, Chevrolet, or whatever. Uh, so you need to explain that because we can't have a unit or two units or three units tied up in my mind for a month waiting to get the service done because you're backed up. You're exactly right. Yeah, you got a lot going on over there.

No, no doubt. So for our and you're welcome to jump in here too, but for our fleet management customers, what what we do at our service locations, we give you priority servicing in terms of time. So we guarantee diagnostics done within 72 hours, things like that. But we we understand that you can't be without a vehicle. And that is one of the things where we've got ASC certified technicians that work for school fleet management. I'm not talking about turning wrenches at the at the service location. Yeah. But every vehicle that goes in for maintenance, we've got a team, your account management team that is going to be managing to make sure that it's not just sitting there, that it's going through the process in a timely fashion.

Okay. Uh well, I So you're saying there's no there's no mileage limitations. There's no excess wear and tear, which is terrific because I know our police vehicles get a lot, you know, all of our vehicles get a lot of wear and tear. Uh, but the fact that you're taking you're giving us 20% residual instead of us just going to auction, which is what we usually do, right, Laura? We take them to auction or you going to get so not near as much money for them as

well. So, I I want to be very clear and and I I have this conversation all the time. When you hear the term residual with leasing, everybody typically says, "Oh, well, the residual is what the guarantee what you're going to give me for the vehicle once I turn it in." This leasing does not work anything like that. So, the residual for us, what we do with our leases is we pick a strategic point to stop the depreciation or stop the payments. And so when you look at 20%, what we're doing is only funding 80% of the vehicle. So we're going to we're going to stop the lease with 20% of that vehicle's value left over. That's what we call the residual. When we go and and resell it for you,

and again, we do this strategically. This is how you build the equity. When we go and resell it for you, it's going to be more than that residual. And the city keeps the difference. The difference. Yeah. I'm only familiar with with individual. I mean, I've leased since 1990 because you're only paying for what you use and not, you know, cars depreciate so fast.

Uh, so anyway, uh, I just want to make sure I guess what I'm really liking about this is it we won't run into what we're running into now with old old vehicles and people missing times and not getting vehicles replaced. I mean, hell, we got uh Oh, I uh we got 11 units. Five. We got 11 units stuck in Oklahoma City right now, which is really upsetting me. So, I'm sorry. I got to pay the pot. Is that what that mayor? Well, that's all the mayor's money in there right now. So,

and this really is the difference, and it's the counterintuitive part, right? Because we even do it in our personal lives. If I'm only putting 8,000 miles a year on a vehicle, Yeah. We're like, man, we can hold that thing for all all kinds of time, right? But we're talking about 428 vehicles. And as we get to a certain time, again, a vehicle is a machine. As it gets older, it gets used, there's a diminishing point of return. But what what I'm asking you to understand is wi with with the lower annual mileage, you have an advantage over any other commercial company in Yeah. in in the area in the world. then we can capitalize on that resell.

You would retain your equity. And our real agenda is is how do we create a life cycle that that mirrors the life cycle of the vehicle so you're able to turn and burn. So the idea is that you don't go into the service department because you have a newer fleet and you're not having to stick an 8-year-old vehicle in the service department for, you know, any given particular time.

That makes makes perfect sense. I did talk to I did talk to the council's edification. I did talk to to Mr. Su about all of this. And the the thing that I like and Mr. Crump both the thing that I really like that I really like about this is the fact that as I understand it in Fort Worth, uh, Chief, your cruisers are there on the ground in Fort Worth, whichever ones you want. And they have, you know, instead of us having two-year-old vehicles still hung up in Oklahoma City, which are going to be two two years old. And like Colin told me, you know, first thing you have to do is change the tires to get it down here. So or get it on a transport. Yeah.

Yeah. So they're in Navasota currently at an outfitter and we approximately have about 200 uh police rated vehicles whether it be uh PIUs uh PPVs uh in pickups or SUVs and uh we are constantly uh fueling that to to make sure that we have pre uh built vehicles ready to go, lights and all. Oh, so you they already be upfitted. So currently we have about 30 or 40 vehicles that are pre-built. So if you get into an accident, we have a replacement for that uh vehicle right away. You're not having to wait 6 8 months to a year, in this case maybe two for upfitter to uh to get them upfitted.

So we're really trying to back the program uh with some some hard vehicles behind it. I have a question, Lori, maybe your question. Is this all the C vehicles like all the side loaders or is it just mainly pickups and some? The 428 units that he he mentioned were just what they call the W fleet. Um and not everything those are in addition. Gotcha. That's why I want to make sure those weren't. We looking to lease the chief's cars also her cars. I think everybody's looking to do the chief cars in your

ability to your trash trucks. And by the way, thank you for getting the trash trucks out there. You know, I there was a time where we wouldn't get trash picked up within, you know, a week or so or maybe longer. That's been a huge help for us. It it was a team effort. I want to thank really our solid waste management and the guys for doing it. They did a good job.

Yeah, absolutely. But yeah, we we do have the ability to fund anything from just a a normal white fleet sedan to a law enforcement vehicle to a fire engine to a trash truck. And again, at the end of the day, we're trying to match that funding instead of outlaying, you know, $1.2 million, whatever it is. Let's fund that over the life of the vehicle and keep that budget so the city can use it elsewhere. So, I had a question like all of these vehicles that we bought and haven't gotten yet, what can we do with those? like is there a

So what what we're looking at doing is like let's take the trash trucks for example, we've got a lease buyback program and so for the vehicles that are currently that you've taken possession of one of the things we're looking at doing is basically buying them back from you guys, putting them on a lease, injecting that cash or budget back to the city. the ones you haven't taken possession of yet, we'll just put on a normal lease so you don't have to outlay that budget. But there there's a couple different ways that we can skin that cat and we want to be strategic as possible. Yeah. But the the problem I'm just and that's a good question, Craig, because I'm what I'm concerned about is the

cruisers that we haven't got delivered yet are two years old.

Yeah. And you know, I mean, I don't even think we I mean, if if it was my business, I'd tell them to stick them in their ear and we're not taking delivery on them. And I don't, you know, and I guess we could take delivery and sell them and get what we can get for them, but you know, I don't know if there's a market for that. Anyway, I don't know. But we can't continue for this to happen because we need to stay current and have the vehicles that we need. And that's and it the ball's just been dropped on, you know, I'm not mad at anybody as Cal would say, but you know, we got to get this on an even keel so that our our fleets get refer, you know, refreshed, you know, and are operable.

Yes, sir. And that's where the that's where the proactive planning comes in because when we again we're going to be putting orders in months if not, you know, six months ahead of when we actually anticipate that vehicle to be replaced. And so instead of we're we're not waiting two years because we're waiting on parts or something like that, that's already going to be built into the lead time.

So I know that 2020 happened and it it really killed the Tahoe production which is what all the police and sheriffs and everybody like to use. And so where is that where does that stand now? They more readily available. So currently uh so currently there is still under controlled allocation according to GM uh and would remain through the 2026 model. Uh fortunately we have some stashed away if we needed to uh supplement you know something we could probably get our hands on a handful uh to help you guys out with it. But yeah it'll be controlled allocation for 2026. Uh 2027 we're being told that it'll start opening up allocation. The good news is we sell all the brands.

Ford, Chevy, and and Ram. Yeah, I was aware. I was aware of that. So, I know the Chief I mean, I'm not trying to put you on the spot, but you guys like the Taho the best, right? I think they've switched. No, they went to Expeditions. I was I was about to answer that question, but I'll let Chief do it. Oh, you're off on those. Yeah, I think Expedition is probably We've had a lot less mechanical issues with Expedition. I needed to ask that question. So, we got 11 hung up. We have I saw Aaron stand up. We So, I was going to say I think How many is it? 46. It's more than Yeah. Why do I have 11 stuck in my head? Anyway, we're waiting on delivery of some units. So, it's it's Yes, sir.

What's the number? Um, more like close to 50. Is there anything ruining my day? Just don't have Well, you put $10 in. You got an extra customer. No, I put $10. I know. Yeah, you got an extra extra prepaid. Oh, damn. Just just a quick one. Um, just the idea for our city employees for newer, safer, and more efficient vehicles. Um, excellent idea. It's common in the larger cities just as well. U clarification question. The sweet spot in leasing three to five. So, you are maxing out at five.

It depends on the vehicle. Depends on the vehicle, right? So if you're putting more miles or engine hours quite frankly will also uh really play a part into that. So it's not necessarily a time period or a mileage period. You need to really take consideration all the variables into resale fuel uh mileage and then time and then I would even throw in model year change. If there's a model year change it lowers your resale value which would then change your variable. Yeah. Just for clarification,

there there was also a a part that that I missed there. With our municipal leasing, there's no early term penalties, and this is something that the account management team is is going to be bringing to the table during these quarterly reviews. It's not something that's ever going to sneak up. And so there's been there's been instances uh where where we've recommended for whatever the market condition is, it's like, hey, resale, just take after COVID for example, resale value of used vehicles shot through the roof. Hey, and I know we have this on a four or five year lease, whatever it is. Let's get out of this thing early. We can get you another five grand in resale equity. So, I I I understand your point. We've got some flexibility and it's not anything that is going to sneak up on you or you have to dedicate yourself to five years ahead of time.

Excellent. So, you actually monitor the engine time as well because I know police units run all the time. Chief Cotton, do yours run all the time when they're at a call? I mean, yeah. Do they? They're always running. That That's one of the biggest variables with law enforcement vehicles is, you know, we we could see a vehicle with 25 30,000 miles, but the engine hours, hey, we need to get out of this thing now. Yeah. One more question. You had some telematics on here. Now, is that like GPS and dashboard cameras and making sure nobody's texting and driving and

Yep. We we can do that that entire thing. Honestly, you know, it's not that commonly that that is used within government. I think that's going to be changing and the law enforcement usually has the axon system and things like that. So for the white fleet, we do have if that's something that you're interested in a segment or the entire fleet, we can and do have that ability. It will allow us to pull more accurate data because we'll be able to pull fault codes, engine runtime data, mileage, and uh putting that all into the aggregated data allows for better information, life cycle management.

Anything else, gentlemen? I know Midland and I don't I got confirmed Midland just went to to doing the leasing program. So yeah with us I knew I knew I think uh it's becoming more common of practice. I hear from council as we're we're we move forward on this. So Laura, you put on the agenda and we appreciate everyone coming and helping us better understand the program. Thank you. Try to get our try to get our back up and going and we just have to figure out a plan. Aaron, we got our David. We got to figure out a plan on what to do with those other vehicles. I I mean these guys will help us. I know. So 50 vehicles. Yes, sir. Think that sounds like a conversation we need to have. I'll leave that up.

We're going to need that tip jar. I can tell you that much right now. We are. All right, guys. Go agenda item number six, the update on the Texas Department of Transportation I20 widening project coordination. Uh Alex,

good afternoon, Mayor and Council. Uh a couple months ago I brought to you the text utility relocation uh project that we were going to that we are moving forward with with them. Uh I wanted to kind of just give you an update on the current project uh where we're at with that. Uh I wanted to go over just a few things again. Um on that it's uh 26,100 linear feet of water uh utility relocations. uh 6,700 feet linear feet of wastewater relocations with a total of 54 relocations. Uh when we brought this project to you in the a couple months ago, we spoke about the engineering and design being around $5 million. Uh construction being uh about $58 million totaling to a $63 million for the engineering and design and construction. Um after working with Tex DOT u we've collaborated together uh on a joint bid process. So this will take away the city's portion in the construction of the project.

Um so what the city is going to be liable for at this point would just be the engineering and design and the construction services during uh the project. Uh which has totaled up to um 4.5 million which is what we have for the engineering and design.

Okay. and then construction service after that. So, inspection services, making sure that um the implementation of the util the new utility relocations are done correctly. Um we don't have a price for that yet. Um but we will we will figure that out once the engineering and design is complete. So, this joint bid with Tex is pretty much going to uh make the the city liable for the engineering design. We will give the plans over to Texot. they will incorporate those plans into their um construction portion of the project and then we will work together um on making sure that everything is placed correctly. Um so Text is going to incur all of the cost for that. So we are only liable for the engineering and design and construction services. Um so it is no longer $63 million. Um another

That makes me happy. Good job, Alex. Made somebody happy today, Alex. There you go. I'm glad we can do that. Made me very happy.

So, um, on on the second note, we did go to the ODC board, uh, and request, uh, $5 million for the engineering and design. Um, we requested originally the 4.5 million. Um, and then they gave us an additional just in case if we ran into any issues with engineering and design. Uh, that is a loan that we are going to get uh, receive from them and then we will pay that back once we get the reimbursement back. So, we still are going to be on the hook. uh for the reimbursement for the engineering and design and construction services. Um but that's it's the only $5 million and then the construction services will be the second portion once they're in uh construction. Okay. So just wanted to questions inform you guys on that and

it's a lot better. We will be bringing you guys the proposal for the engineering and design on uh the next work session and then we'll it'll go to council uh consent after that. So thank you. Absolutely. We appreciate the report. Very good job, Alex. Way to way to stay on them because that that that's good work. It wasn't just me, but it was a body. Team work. Tip of the spear. Thank y'all very much. All right. Agenda item seven, discuss fund transfer and allocation for McKini Park. John,

mayor, council, good afternoon. Uh we are discussing the transfer of $700,000 from within the park's budget uh to a project account. Uh the funds will be allocated for improvements to McKenna Park um to facilities and fields. Uh the this is a approval or discussion of the transfer of funds. We're currently working with Gordian on a proposal for the uh uh the upgrades and once we have that proposal, we will bring the uh total cost of the project back to council.

You probably need to put the sewer line back in your budget for that park out there, too. Um it was stopped up again this weekend. Okay. I floodw of a challenge. We have spent a lot of time uh this year out at Floyd Gwyn working on uh irrigation and sewer lines. Yes, sir. Well, the signs look fantastic on the park side. I've seen San Center Floyd Gwen. Thank you. Are they all up or not all up? Uh we've got about 18 so far. Uh a bit of a slow process with permits and uh dig test and getting the holes dug and the signs put up, but we're we're definitely gaining on it.

Okay. Yeah, I asked him if we knew somebody that could help with the permits. Well, we got we got the permits. It's part of the process. I smell I smell Elizabeth. I know a guy who knows a guy. They were they they they were they did help tremendous. Don't hide. Don't hide over there, Elizabeth. The uh Well, I noticed the benches and lights the new lights. Hey, what's Yes, sir. Thank you. Look good on the track. Yes, sir. We're We're happy anytime we can light up the walking trail. I'm just waiting on that new sign. Yes, sir.

Just kidding. And this we're going to talk to O o OA O GSA and that's going to become one of their facilities. Correct. Correct. We recently met with Odessa Girl Softball Association uh that they are planning on playing at McKenna Park starting in the spring of 2026. Uh we need to get the facilities updated first. Uh concessions, restrooms, uh the fields ready, uh parking lot as well. Uh but that is the plan for the association to play at McKenna Park.

Fantastic. My my only concern I have a concern there is that when they were playing out at UTPB uh when we lost that lease or when the lease ran out at UTPB they were a problem for taking control of those fields and not letting anybody else on them. And this is a public park. Absolutely. So I'm concerned about them not letting anybody else have use of the fields and that I don't know how you're going to monitor that, but that was that was when I first came on council five years ago

and it was a real egregious that and soccer both uh because I know that UTVB couldn't even get their own girls team on there to practice because the girls softball wouldn't get off at the point of time. So, I'm just concerned about that a little bit. Sure. That's that's absolutely we have to make it available for our citizens

100%. That's always a a call it a concern with any association when they're utilizing city facilities. Um when we met with OSA they did they asked they brought it up to make sure that travel teams, local teams would be able to use the facility when they were not using it. um in the with the association agreement during their season uh their games and practice schedules they do have those facilities to reserve otherwise we do rent them or they're first come first serve to the public

but okay so you reserve them is that Monday through Sunday or is it Yes sir it it's Monday through Sunday depending on when the league plays um it when the league turns their schedule in if they play Monday Tuesday, Thursday and Friday. Those days and times will be blocked off. Otherwise, it is available to the public and and we uh we definitely um work with each association to enforce that to I mean we know the need to to be open and accessible, right? Yes, sir. And after maybe in the next 26 months that won't be a problem anymore. Okay. Thanks. Thanks. Any questions for John? Good. Good.

Thanks, John. We appreciate it. Yes, sir. Mayor, I just wanted to point out that this item is also going to be at our six o'clock meeting for action. So, that's that's not something we like to do is put it on the work session and our six o'clock meeting, but it just so happened we have some time restrictions on this item. We want to get it done before October 1st. So, that's the reason for that. So, I bet we'll be prepared by six. I bet because of John. Thank you, sir. All right. Thank you. Thanks, John. All right. Agenda item eight. discuss a lease agreement with the Trace Legato Land Company LP for purposes described as a 6.477 acre track of land more or less located in section 9 block 41 county purpose of storage of goods and equipment. Keith,

uh, thanks mayor. uh just put it on a work session because this involves parkland and you cannot sell parkland without going to a citywide election, but you can lease it. However, you're restricted on your lease. It has to be for very short term. I think this one is for three years. The lease has to be non-exclusive. uh the city must reserve the right to go back in at any time and use the premises as a park which this agreement does. The compensation uh that the city receives has to be very small because you don't want anyone to interpret this as a sale really. So it has to be small. the penalty if if anyone would if a court would say that it's actually a sale, it would revert back to the people who donated it. So, cities are very careful about about that. Uh I looked at the deed. There's no reversionary clause in the deed. So, don't have to worry about that. And we don't the lease does not allow any permanent structure to be uh built on the premises. So, I think this falls right within what the attorney general has told us to do when you're leasing parkland. So, I'll be glad to answer any questions and I've worked closely with council member Thompson on it. So,

yeah, just uh Mr. Su is just going to this is behind the parking lot. He's got it on trash and it's a it's part of the belt. It's Harriet Fries gave that to the city I guess way back when. So you can't even hardly get access to it. So all he's going to do is park some cars back there and put another building on the 13 acres I think is what he's planning on doing. So uh he was okay with all that. So ought to be good to go. Gentlemen, any questions? If not, do we need action that in to do that?

Mayor, we've got it for action on your six o'clock meeting. Again, we don't like to do that, but uh I know they want they're wanting to move on it. Council member Thompson's wanting to move on it, and it's just uh it's something that we think would work out for everybody. Be fresh on our memories. Something will get done. It also prove that government doesn't always move slow. That's right. That's exactly right. Some things don't. All right. Thanks, Keith. Yes, sir.

Number nine, pursuant to the Texas Government Code, section 551.101, 101 city council will hold an executive session which is closed to the public to discuss the following matters as permitted under the following sections of the Texas government code. A as authorized by the Texas government so se section 551.087 deliberation regarding economic development negotiations. We're going to discuss economic development. I need a motion to go into executive session. So move. Motion by Councilman Canel, second by Councilman Haney. All in favor say I. I. I. Motion's unanimous and passes. Uh, we're now in executive session at 3:58 Yeah.

We move to come back in. Need a motion to come back in. So move. Second. Motion by Councilman Stoker and a second by Councilman Thompson. Come back in. We're now out of executive session at 4:42 p.m. No action was taken in executive session. Agenda item number 10. I need a motion. So moved. Motion by councilman first by Canel. Second by Haney. All those in favor say I. We are adjourned. The wall.