City Council

CITY OF FARMINGTON CITY COUNCIL WORK SESSION AGENDA June 19, 2018-9:00 a.m. DEPARTMENT HEAD REPORTS 1. Update regarding the current state of the recycling industry (Dan Darnell, Waste Management) 2. Discussion of and direction to staff regarding Federal Fiscal Year 2018 Community Development Block Grant ("CDBG") capital project funds (Terri Clashin) ---------------1 Action Requested of Council: Provide input and give direction for allocating the CDBG funds for capital projects. Background/Rationale: The CDBG grant award for Federal Fiscal Year 2018 (October 1, 2018 to September 30, 2019) is $353,025. The funding available for capital projects is $229,467. Staff Recommendation: Provide direction. Instructions Upon Approval: No impact to the General Fund. 3. Adoption of Resolution No. 2018-1672 removing uncollectible and unsecured utility accounts from the City's list of accounts receivable for calendar year 2013 (Nick i Parks) -------------------------------------------------------------------------------------------- 2 Action Requested of Council: Pursuant to our policy and in compliance with State Statutes, Council's approval is required to write-off any inactive account that is aged over four years and has a balance of more than one cent. Background/Rationale: Each year a list of all utility accounts over four years old with a balance due is reviewed and processed for write-off. During that review, any bankrupt accounts for which payments are being received or are expected to be received are not written off.  Staff Recommendation: Adopt Resolution No. 2018-1672 removing the uncollectible and unsecured utility accounts from the City's accounts receivable in the approximate amount of $96,473.72. Instructions Upon Approval: Proceed with aged inactive utility account write-offs for the period of January 1, 2013 through December 31, 2013. 4. Proposed ordinance amending Chapter 22, Article 2 of the City Code dealing with economic development (ShafiaFiorida Reeves and Jennifer Breakell)----------------~---3 Action Requested of Council: Grant permission to publish Notice of Proposed Ordinance. Background/Rationale: A municipality must have a Local Economic Development Act ("LEDAn) ordinance to apply for and receive LEDA grant funds from the New Mexico Economic Development Department. The ordinance primarily outlines qualifications, standards and/or criteria for who and what is eligible for LEDA funds and, like a Metropolitan Redevelopment Area ("MRA") designation, provides the City the opportunity to enter into public/private partnerships that benefit the community without violating the anti-donation clause. In its most basic form, LEDA is used as a financial incentive tool and is paired with an eligible project. The State LEDA fund is currently capitalized at approximately $500,000. The City's current LEDA ordinance has not been amended in 20 years while LEDA has been updated twice at the State level since 1996. There are some significant new economic development strategies such as creative economic development and arts and cultural development that are not reflected in the ordinance and are potentially new areas of LEDA financing. Additionally, State Statutes regarding MRAs have recently been amended to include "cultural facilities" as qualifying entities which will assist the City in a much larger array of public/private partnerships within the City's MRA districts. Due to the excitement surrounding the Outdoor Recreation Industry Initiative (ORII), many businesses are expressing interest in the Animas District of the City's MRA for location and/or relocation. Two of those potential businesses currently use LEDA funds and have inquired if LEDA funds are available through the City. Staff Recommendation: Grant permission to publish Notice of Proposed Ordinance. 2  Instructions Upon Approval: Publish Notice of Proposed Ordinance with final action scheduled for July 1O, 2018. 5. Bid for Phase II of the 2P Zone Waterline replacement project (Kristi Benson) --------4 Action Requested of Council: Approve recommendation for award. Backg round/Rationale: Bids opened June 11, 2018 for Phase II of the 2P Zone Waterline replacement project (Public Works) with three bidders participating. Staff Recommendation: Award the bid to TRC Construction, Inc. as the lowest and best bidder meeting specifications ($3,908,525.86). Instructions upon Approval: Award the contract. COUNCIL BUSINESS 6. Appointment to the Community Relations Commission (Mayor) CITY MANAGER BUSINESS AGENDA ITEM SUPPORT MATERIALS ARE AVAILABLE FOR INSPECTION AND/OR PURCHASE AT THE OFFICE OF THE CITY CLERK, 800 MUNICIPAL DRIVE, FARMINGTON, NEW MEXICO. ATIENTION PERSONS WITH DISABILITIES: The meeting room and facilities are fully accessible to persons with mobility disabilities. If you plan to attend the meeting and will need an auxiliary aid or service, please contact the City Clerk's Office at 599-1106 or 599-1101 prior to the meeting so that arrangements can be made. 3  City of Fannington Community Development Me111o To: Mayor Duckett and Members of the City Council Fro1111 Teri Clashin, CDBG Associate Planner Dllta: June 14, 2018 Re: CDBG Capital Projects Recommendation and Presentations Staff met with Council on May 22 to discuss the Federal Fiscal Year 2018 CDBG allocation and to receive direction. For the 2018 program year (October 1, 2018 to September 30, 2019), the CDBG grant award amount is $353,025. The funding allocated for capital projects is $229,467 (65%). Council requested presentations by departments hoping to utilize CDBG funds for capital projects. The presentations will review the proposed capital projects submitted to date. Staff is requesting input and direction from Council for next steps on deciding which capital project(s) to fund. The following are the departments proposing projects for the 201 8 capital funds: 1. PRCA ADA Upgrades in preferred order (Request $309,350) • Bonnie Dallas Senior Center ($90, 100) • Sycamore Community Center Exterior ADA Upgrades ($31 ,000) • Farmington Recreation Center ($30,750) • Civitan Park North and South ADA Upgrades ($56, 100) • Fairgrounds Park: Softball Field Restroom ($101,400) 2. General Services: Inebriate Shelter (Request $130,000) • Acquire and relocate portable classrooms to be placed adjacent to the Sobering Center near the Totah Behavioral Health Services. The portables would be to shelter individuals overnight, sleeping only, no plumbing. Restrooms would be provided at the sobering center. • Two Portable Classrooms ($65,000 each) Staff is looking for direction from Council. Once the capital projects are selected, they will be included in the Draft 2018 Annual Aclion Plan. The 2018 Action Plan will then go through a public input process including a public hearing sdleduled for the Council meeting on July 24. -1.0-  RE:SULUTIO:\ NO. 20:8-lE"/2 A RESOLUTION REto::JVINC mJ:::)LLECT:B:...:: AND C"::\SE:::;RE:: :;rri..:TY ACCUl71\":'S FROM THE: CITY'S LIST OF A::COUNTS R3CEIVA5LE t-IHEREAi>, thet:e is appt:o:.<imately $')€, 473.72 01-.·ed Lo :: .<? City t!oJr. 0 utility accounts that are uncollectible eve.:1 a f-:e~:· d i l: qe:1t col lee: ior: effo~ts were tnitiated; and ~HE:RE:AS, said a~~o•mts have bee:-. o·;~ed ar.d ·.. r:ccll ec: ·.ib~e to :!"le C i :y for more than fout: (41 years: and WHERE,~S, Se::. 3-37-7 N~iSA 1978, qi ve~ the govecn~:<q body of a mun 1 ci.pa lt ty the authority to remove ::ertair: accou:1:s frcrr. its accct;n:s receivab.e provided that the City's F_na!"lce Officer veri~ies t~e acco~!1ls to be uncollectible; and WHEREAS, pursu3nt to sa1d Sec. 3-37-7 NKSA, t~e Fir:anca Cf~icer of the ::ity of Farmington has verified on t~e a::a::hed Af:idavit that :he accounts listed are uncollectible as well as :he tota: axou~t tc be removed from the ::.i.Ly's list ot accoun:s :::eceivable. ~OW, ·rllE:ln:l"ClR!!:, fll!: 1'1' ln'SOLVIW gy ·:·111'. ::;::>VSHK'l:\G 30:JY ClF' TC:S Cl':'Y 0? FARMH!GTON: That Lhe ::i ty of FarmLngt:>n has ~ompl.i.eG wi U: Se::. 3-3 1- 'i :-IMSA whi~h a•lLhorLzes the governing nody to wri:e off ~nccl_oc:ib.c accc~ts. !'hat after rev1ewing the attached A::iciavi.t. of Adni.~is:r<Jti.ve Services Director H. An~rew Mason, t~e City Cou~c~i o f ~he City o~ Fa rmi ngt on does hereby authon ze the ::encval fro:r. i :s acco•;nt.~ rece: vab le uncollectible utility accounts in the s ·J...1\ of S96, 473.72 with ::easc:".able adj .ls tment allowance, as des cr ibe::t or. ::"le Aff~davi ~. That the City will consider a Rescl~t~o~ addressi~g u~::o~lect~ble account write-offs on an annual b~sis. PASSE:D, S l ::;N8D, APPROVED AIW ADOP':'ED :'1 is : 9'" day of Ju:-~e, 20:8. 1\a::o ::t.:c:~e~l. :vlayor SE:AL A'l"fEST: Dianne Smylie, City Clerk -2.0-  AFFIDAVIT OF H. ANDREW MASON STATE OF NEW MEXICO ) )ss COUNTY OF SAN JUAN ) I, H. Andrew Mason, being duly sworn, depose and say: I. I am the Administrative Services Director of the City of Farmington, and as such have supervision over the accounting and finance procedures for the City of Farmington. 2. The attached list is an accounting of utility accounts that have been uncollectible and owed to the City of Farmington for more than four years. 3. The attached accounts were incurred by utility customers who received City of Farmington utility services and never paid for them. 4. The City has made diligent efforts to collect on the inactive accounts and to locate the debtor through in-house collection efforts but was unsuccessful in collecting on these accounts. 5. It is my opinion that the attached accounts totaling $96,473.72 are uncollectible. Further I state not. H. Andrew Mason - 2.1 -  g "--..fV) Subscribed and sworn to before me this _/_ day of ~ . 2018, by H. Andrew Mason, Administrative Services Director of the City :fFaington. Notary Public My commission expires: .. 2.2 ~  Numbers for report done it March UTILITY WRITE OFF WORKSHEET 2013 WARNING REVENUE LATE FEES TAGS .. 6/30/13 (7/1/12 TO 6/30/13) 601 101,534,767.00 112,465.00 251,400.00 602 15,581 ,408. 00 26,889.00 36,790.00 603 6,857,621.00 8,554.00 18,395.00 604 5,352,420.00 9,701.00 0.00 SUBTOTAL 6/30/13 129,326,216.00 157,609.00 306,585.00 * Less: YTD 12/31/12 (7/1/12 TO 12/31/112) 601 -47,830,819.00 -51,700.00 -125,964.00 602 -7,856,125.00 -13,691.00 -18,434.00 603 -3,310,864.00 -4,228.00 -9,217.00 604 -2,681,496.00 -4,631.00 0.00 SUBTOTAL 12/31/12 -61,679,304.00 -74,250.00 -153,615.00 Add: YTD 12/31/13 (7 /1/13 to 12/31/13) 601 51,620,535.00 65,518.00 133,434.00 602 7,211,850.00 17,990.00 19,527.00 603 3,513,991.00 4,715.00 9,763.00 604 2,710,670.00 5,272.00 0.00 * SUBTOTAL 12/31/13 65,057,046.00 93,495.00 162,724.00 TOTAL 601 105,324,483.00 126,283.00 258,870.00 TOTAL 602 14,937,133.00 31,188.00 37,883.00 TOTAL 603 7,060,748.00 9,041.00 18,941.00 TOTAL 604 5,381,594.00 10,342.00 0.00 GRAND TOTAL 132,703,958.00 176,854.00 315,694.00 Write Off Amount ** 96,474.00 Write Off % Of Revenue 0.072699% -2.3- Recommendation to Public Utility Commission Aged ina.c tive utility accou.n ts write off January 1, 2013 through December 31,2013 A resolution specifying the accounts to be written off is presented for your review and recommendation to the City Council for approval at the June 19, 2018 City Council work session. These accounts, incurred by and left unpaid by utility customers, have met the aging write off requirements. Accounts eligible for write off have been through the City of Farmington's collection process, which includes collections from customers that can be contacted by mail or phone, transfer of balances to active customer accounts, and credit agency reporting. Every possible means has been taken to collect the money owed to the City of Farmington. Revenues: January 1, 2013- December 31, 2013 (all utilities) $ 132,703,958.00 Accounts to write off: Regular: $ 89,596.85 Bankruptcy: $6,876.47 Write off total: $ 96,473.72 2013 write-off percentage of revenue: 0.072699% City of Farmington Write-off- Historical Comparison Calendar Year Write·off Total Total Revenue % Uncollectible per Revenue Dollar 1994 $ 96,951.72 $ 55,857,642.00 0.17 1995 $ 104,425.17 $ 59,741,046.00 0.17 1996 $ 113,348.54 $ 61 ,078,063.00 0.19 1997 $ 144,970.32 $ 62,521,076.00 0.23 1998 $ 119,231.41 $ 66,074,126.00 0.18 1999 $ 83,185.88 $ 72,229.796.00 0.12 2000 $ 107,265.40 $ 78,888,664.00 0.14 2001 $ 184,843.50 $ 99,005,210.00 0.19 2002 $ 115,631.79 $ 91 ,848,563.00 0.13 2003 $ 106,056.29 $ 95,535,276.00 0.11 2004 $ 119,659.50 $ 104,889,533.00 0.11 2005 $ 131,338.15 $ 101,819,085.00 0.13 2006 $ 93,426.34 $ 106,812,330.00 0.09 2007 $ 119,166.34 $ 118,188,807.00 0.10 2008 $ 128,916.26 $ 122,004,202.00 0.11 2009 $ 175,942.32 $ 122,573,326.00 0.14 2010 $ 164,154.61 $ 120,578,429.00 0.14 2011 $ 113,380.13 $ 121,604,741.00 0.09 2012 $ 91 ,228.14 $ 120,911,837.00 0.08 2013 $ 96,473.72 $ 132,703,958.00 0.07 - 2.4-  ORDINANCE NO. 2018-XXXX AN ORDINANCE AMENDING CHAPTER 22, ARTICLE 2 OF THE FARMINGTON CITY CODE DEALING WITH ECONOMIC DEVELOPME~T WHEREAS, it is in the public interest of the City of Farmington to afford all reasonable assistance which is permitted by the authority vested in the City Council to assist the City of Farmington and its surrounding area to obtain new economic and 1ndustrial development projects; and wHEREAS, this assistance benefits the public in ~armington and San Juan County by affording employment opportunities, by furnishing new means of income, and in general by improving the econoQic environment of Farmington and San Juan County; and WHEREAS, it is difficult for municipalit1es and counties in New Mexico to attract and retain businesses capable of enhancing the local and state economy without the resources necessary to compete with other states and locales; and wHEREAS, municipalities and count1es may need to be able to provide land, buildings, infrastructure, and technical assistance as a tool for basic business growth and the introduct1on of basic bus1ness ventures into the area; and WHEREAS, the access to public 'esources needs to be carefully controlled and managed for the continued and future benefit of Farmington citizens; and WHEREAS, it is the purpose of this ordinance to amend Chapter 22, Article 2 of the Farmington City Code to incorporate the amendments to the state Local Economic Development Act (Chapter 5, Article 10, NMSA 1978) . NOW, THEREFORE, BE IT ORDAINED by the governing body of the Clty of Farmington: SECTION ONE: Section 22-2-l, Economic development goals, str.otegies and priorities, is amended as follows: l) Paragraph (bl Goals, shall be amended by add1ng subparagraph (6) which reads as follows: "(6) Revitalization of the H1storic Downtow01 and the Metropolitan Redevelopment Area." 2) Paragraph (c) Strategies, shall be deleted in its ent1rety and amended to read as follows: "(c) Strategies. The strateg1es of the econom1c development plan are as follows: (ll Support the county economic development serv1ce and other collaborative efforts to attract qualified industry, and to ass1st 1n the expansion of existing local industry. (2) Develop a maker's space within the Metropolitan Redevelopment Area to ma~e space available to promote retail and small scale product development and manufacturing, (31 Support small business development organizations who can assist in financing businesses that create or reta1n jobs in the region. (4) Encourage and assist 1n the delivery of entrepreneur1al education. (5) Collaborate in the improvement of basic infrastructure, including without limitat1on highways, streets, rail and air service, water, wastewater, power, fuel, and communications. (6) Downtown revitalization such as: the implementation of the Complete Streets project, transportation hub, and the update to the 2009 Metropolitan Redevelopment Area Plan. - 3.0 ~  {7) Actively pursuing Brownfield gra~ts for t~e Animas District of the Metropolitan Redevelopment Area. {8) Development of Creative Economy, with support of creating and enhancing cultural facilities. (9) Update the Farmington Comprehensive Plan." 3) Paragraph (d) Priorities, shall be amended by add1ng subparagraphs (6) and 17) which read as follows: "16) Businesses that support a vibrant and econo~~cally diverse downtown. 17) Infrastructure needed tc su~port the development and growth of cultural facilit~es, events, and industries in the Metropolitan Redevelopment Area." SE:CTION TWO: Sect ion 22-2-3, Criteria to determine eligibility for a1.d, shall be amended by adding paragraph.s {6), {7), anc 18) which read as follows: "(6) A facility for the direct sales of growers of agricultural products, com~only known as farmers' markets. (7) A business that is t~e develo?er of a ~etropolita~ redevelopment project. (8) A cultural facility, defined as a facility that is owned by the state, a county, a ~unicipality, or a ~ualifying entity that serves the pJbl1c throJgh preserving, educating, and promotlng the arts and culture of a particular locale, inc~udlng t~eaters, museu~~. libraries, qalLeries, cultural compounds, educa~ional organi~ations, performing arts venues and organizations, studios and media laboratories, and live-work ho~sing facilities." SECTION THREE: Sect ion 22-2-6, Project participation agreBment, shall be deleted in its entirety and amended to read as follows: "An application submitted pursuant to this arlicle shal~ be approved by an ordinance duly adopted by the city council. An application or proposed project will never be considered approved until the ordinance qranting approval is fully adopted and effective. Opon approval, the qualifying entity and the city will enter into a proJect partLcipation agreement which shall: (1) Require a substantive contribu;;ion fro:n the q1.1al1fying entity for each economic development pro~ect. E'Jbllc suppor-t provldeC. for an economic development project shall be in exchange ~or a substantive contribution from the qC~alLfying e:1tity. The contribution shall be of va~ue and may be paid 1n money, in-:<ind services, jobs, expanded tax base, property, or other thing or service of value for the expans1on of the ~conomy. (2! RBquire the qualifying entity to prov~de security to each local or regional government, the state, or any other New Mexico governmental entity providing public support ~or an economic development project. The security shall secure the qualifying entity's obligations based on terms stated i~ the project participation agreement with the ~ocal or regioCla~ government and shall reflect the amount of public support provided to the qualifying entity and the substant1ve contribution expected from the qualifying entity. {3) Reguire the local or reqiona~ government Lo enforce the project participation agreement to recover ~hat port~on of the publ1c support for which the qualifyi~g entity failed to provide a substantive contribution. The recovery shall be proportional to the failed performance of the substant1ve contrlbJtion and sha:l take into account all previous substantive co~tributions for the economic development project performed by the quallfyLng entity, based on the terms stated in the project participation agreement. The project partic1pation agreement for an econom1c development project that uses ~ublic support provided by the state to a local or regional government shall 1nc~ude a recapture agreement for the state. ( 4) At a minimum set out : a. The contributions to be made by eac~ party to the participation agreement; - 3.1 -  b. The security provided to each governmental ent1ty that provides public support for an economic development project by the qualifying entity in the form o: a lien, mo=tgage, or other indenture and the pledge of the quali:y~ng business's financial or material participati on and cooperation to guarantee the qualifying entity's performance pu=suant to the project participation agreement; c. A schedule for project development and completion, inclading measurable goals and time limits for those goals; and d. Provisions for peiformance rev1ew and actions to be taken upon a determination that project performance is unsatisfactory." SECTION FOUR: Section 22-2-9, City resources, shall be deleted in 1ts entirety and amended to read as follows: "Available resources the city may offer bus1nesses qualifying under this article include the following: ( l) Land the city is willing to lease, sell, or grant. (2) Buildings the CltY lS willing to lease, sell, or grant. (31 Infrastructure the city is willing to build, extend, or expand. (4) ~ayments for professional serv1ces contracts necessary for local or regional governments to implement a plan or proJeCt. (5) The provision of direct loans or grants tor land, buildings, or infrastructure. (6) technical assistance to cultural facilities. (7) Loan guarantees securing the cost of land, buildi~gs, or infrastructure in an amount not to exceed the revenue that may be derived from the municipal infrastructure gross receipts tax or the county infrastructure gross receipts tax. ( 8) Grants for public works infrast=ucture improver.~e:1ts essent~al to the location or expansion of a qualifying entity. (9] Grants or subsidies to cultural fac1l1t1es. (101 Purchase of land for a publicly held 1ndustrial park or a publicly owned cultural fac~lity. ( 11] The construction of a building for use ';:)y a quail fyi:-~g entity. (12) Financial resources available: a. Industrial revenue bonds; b. Funds allowed to be expended Jnder this article and the local economic development act; and c. ~ax incentives provided pursuant to the development 1ncentive act." SECTION FIVE: Section 22-2-11, Safeguards of public resources, sha~ l be deleted in its entirety and amended to read as fo~lows: "If a qualifying entity fails to perform 1ts substantive contribution, the local or regional government shall enforce the project participation agreement to recover that port~on of the public support for which the qualifying entity failed to provide a substantive contribJbon. The recovery shall be proportional to the failed pe=formance of the substantive contribution and shall take into accoJnt all previous substantive contributions for the economic development proJect performed by the qualifying entity, based on the terms stated in the project participation agreement. The project participation agreement for an economic development project that uses public support provided by the state to a local or regional government shall include a recapture agreement for the state." SECTION SIX: That the remaining provisions of Chapter 22 of the Farmington City Code shall remain unchanged. PASSED, SIGNED, APPROVED AND ADOPTED this 10'" day of Jt:ly, 2018. ~ate Duc%ett, ~ayor SEAL .n:rTEST: Dianne Smylie, City Clerk - 3.2- ARTICLE 2. - ECONOMIC DEVELOPMENT Sec. 22-2-1. - Economic development goals, strategies and priorities. (a) Generally. The goals, strategies and priorities of the economic development plan were developed from public input in numerous economic development planning processes. The economic development plan is based on the Overall Economic Development Program for New Mexico State Planning and Development District 1, the Northwest New Mexico Enterprise Community Initiative, and the Northwest New Mexico Economic Adjustment Strategy. (b) Goals. The goals of the· economic development plan are as follows: (1) Reduction of unemployment and an increase in the labor force participation rate. (2) Increase in income through creation of higher quality jobs and support of local entrepreneurship. (3) Affirmative support of local business creation, retention and expansion. (4) Improved economic diversification . (5) Development of adequate infrastructure to support economic development. (6) Revitalization of the Historic Downtown and the Metropolitan Redevelopment Area. {c) Strategies. The strategies of the economic development plan are as follows: (1) Support the county economic development service and other collaborative efforts to attract qualified industry, and to assist in the expansion of existing local industry. (2) Q&.<e1Gj':l-a-91:J&ine~ation center to make sJ3ace a>Jai~el~elRef-wit~s~~­ services and technical-as&i&tance to new and gro•Nffi§-s~-twsiAesses-,-.-Develop a maker's space within the Metropolitan Redevelopment Area to make space available to promote retail and small scale product clevelooment and manufacturing. (3) bl:ea~"'-O~H~elef;)A=IeAkeveMI:l~1~146-~slst-iA-h·~Ag-tlusinosses-11-lat- 6feate-ef--fet:l.iR-~!HI:l9-fefJi~upport small business development organizations who can assist in financing businesses that create or retain lobs in the region. (4) Encourage and assist in the delivery of entrepreneurial education. (5) Collaborate in the improvement of basic infrastructure, including without limitation highways, streets, rail and air service, water, wastewater, power, fuel, and communications. {6) Downtown revitalization such as: the implementation of the Complete Streets project, transportation hub, and the update to the 2009 Metropolitan Redevelopment Area Plan. (7) Actively pursuing Brownfield grants for the Animas District of the Metropolitan Redevelopment Area. (8) Development of Creative Economy. with support or creating and enhancing cultural facilities. (9} Update the Farmington Comprehensive Plan. (d) Priorities. The priorities of the economic development plan are as follows: (1) Infrastructure needed to support the development and growth of a healthy and diverse economy. (2) Businesses and industries that provide semiskilled and skilled jobs. (3) Business.es and industries that produce goods or services locally, for distribution outside the region. (4) Businesses and industries that produce goods or services locally, for distribution within the region to displace imported goods and services. (5) Businesses and industries that fill a gap in the local economic base. (6) Businesses that support a vibrant and economically diverse downtown. -3.3-  ill Infrastructure needed to support the development and growth of cultural facilities, events . and industries in the Metropolitan Redevelopment Area. Sec. 22-2-2.- Targeted businesses and industry. The economy of the city and the county is supported by natural resource development, power generation, agriculture, retail trade, wholesale trade and services. Economic development efforts are focused on new or expanding industries which add value to these sectors or which add diversity to the economic base and which upgrade the skills and income levels of employees. Sec. 22-2-3.- Criteria to determine eligibility for aid. An applicant for aid through this article must be a corporation, limited liability company, partnership, joint venture, syndicate, association or other person that is one or a combination of two or more of the following: (1) An industry for the manufacturing, processing, or assembling of any agricultural or manufactured products. (2) A commercial enterprise for storing, warehousing, distributing or selling products of agriculture, mining or industry, but, other than as provided in subsection (5) of this section, not including any enterprise for sale of goods or commodities at retail or for distribution to the public of electricity, gas, water, or telephone or other services commonly classified as public utilities. (3) A business in which all or part of the activities of the business involves the supplying of services to the general public or governmental agencies or to a specific industry or customer, but, other than as provided in subsection (5) of this section, not including businesses primarily engaged in the sale of goods or commodities at retail. (4) An Indian tribe or pueblo or a federally chartered tribal corporation. (5) A telecommunications sales enterprise that makes the majority of its sales to persons outside the state. (6) A facility for the direct sales of growers of agricultural products, commonly known as farmers' markets. (7) A business that IS the developer of a metropolitan redevelopment pro1ect. (8) A cultural facility, defined as a facility that is owned by the state, a county, a municipality, or a qualifying entity that serves the public through preserving . educating, and promoting the arts and culture of a particular locale, including theaters, museums, libraries, galleries, cultural compounds. educational organizations, performing arts venues and organizations , studios and media laboratories. and live-work housing facilities. Sec. 22-2-4. -Qualifications of applicant for assistance. In order to be considered for assistance pursuant to this article, the applicant shall submit an application describing the proposed economic development project to the city administrative services department for review and evaluation. The application shall be in writing and in the format established by the administrative services department. The application shall be accompanied by an application fee in an amount to be established from time to time by resolution of the city council. Proceeds from the application fees will be deposited with the city administrative se.rvices department in a special account, which shall be used solely for purposes of funding activities related to the review and evaluation of applications filed pursuant to this article, such funds being hereby earmarked for that purpose. In no event shall any part of any application fee be refundable to the applicant, regardless of the cost of processing the application. Sec. 22-2-5. - Procedure to verify application information. (a) Upon receipt by the administrative services department of an application for an economic development project completed in a manner satisfactory to the administrative services department, the administrative services department shall forthwith commence an investigation of the applicant and the application, verifying the matters contained in the application, and including an investigation of at least the following factors: -3.4-  (1) Determine whether the project can be lawfully instituted, constructed, or operated with the municipal assistance proposed in the application. (2) Determine the financial and management ability of the applicant and, if the applicant is a subsidiary of another firm owning a majority of stock in the applicant, the parent firm and its ability to perform the duties which will be imposed upon the applicant as a result of the application. (3) Evaluate the financial feasibility of the project. (4) Verify the fact that the project will provide a public benefit to the citizens of the city by providing its citizens with job opportunities and with a source of additional income. (5) Ensure that the project will be capable of achieving those purposes stated in the application. (6) Prepare a cost-benefit analysis of the project. (7) Ensure that the project conforms to the city economic development plan. (8) Develop any other information the administrative services department or city council deems necessary for a full review of the economic development project application. (b) Upon completion of the investigation, the administrative services department shall formulate a written report concerning the application which it shall submit to the city council. The written report shall summarize the findings of the administrative services department and shall conclude with a recommendation to the city council. The decision to fund the proposed project shall be made solely by the city council. Sec. 22-2-6. - Project participation agreement. An application submitted pursuant to this article shall be approved by an ordinance duly adopted by the city council. An application or proposed project will never be considered approved until the ordinance granting approval is fully adopted and effective. Upon approval, the GHy-a~~~nGafltqu a lil vin g entity and the city will enter into a project participation agreement which shall-se.t-eHt4Re-ff»lGWiA~F (1) :rho son+rAAIUGRs-le~X*Ie b'l ea<',.l."\-f*lf~to tho particip ation agreement. Reg we a substantive contribution from the qualifying entity for each economic development project. Public support provided for an economic development project shall be in exchange for a substantive contribution from the qualifving entity. The contribution shall be of value and may be paid in money. in-kind services. jobs. expanded tax base. property. or other thing or service of value for the expansion of the economy. (2) +fie sec~:~rily provided to tlle-s~.fl~~fy+Ag entity ifl-44e-ferm of a lier+;-mGr.~e,eF-ai~ iAElenturo and t~ledge ar tl=le qu alif~siAes&s-f.ffi.aAsial-er Hlalefi~i£+J*ltiO~A4- ooQf)€)Fal-ieR-~Ifaf'aRlee-tl=l&.q~ify+A~tilfs-fleffewoance pl!J:Sidai~Oje Gt part.tiGR- a§feefHOHt-:-Reguire the qualifying entity to provide security to each local 0( regional government, the state. or any other New Mexico governmental entity providing public support for an economic development project. The security shall secure the qualifying entity's obligations based on terms stated in the project participation agreement with the local or regional government and shall reflect the amount of public support provided to the qualifying entity and the substantive contribution expected from the qualifying entity. (3) ~;AO(iiHie for preje6t-develej3meHt-aA~el:t:=tf:)let4&R,-fRGttldiAg-meaSYrable go.11s and lln'I O limit& fef.....tRese goals.Require the local or regional government to enforce the project participation agreement to recover that portion of the public support for which the qualifying entity failed to provide a substantive contribution. The recovery shall be proportional to the failed performance of the substantive contribution and shall take into account all previous substantive contribUtions for the economic development project performed by the gualifyinq entity, based on the terms stated in the project participation agreement. The project participation agreement for an economic development project that uses public support provided by the state to a local or regional government shall include <-t recaplllre agreement for U1e state.- -3.5-  (4) Pro\•isiens fer perfermanoe rev1ew and achens te I:Je taken upeH a detern=tinatim=t that prGJeet perfermanee is ~nsatisfactory. (5) Spes~f4G.-..pfebeffi:lfeHo-detefmi Ae-SI:IGGeS&-af.lG-I:ru:MJ:.le<:J.s...-fer-ffiGffilt)in~Alfeslm en I if-aA-. eseoom~elepmeffi-.pr..ej ecl is detonni~n~kl~lifying ontit-y-seek-s-te- leavo the area . At a minimum set out: a. The contributions to be made bv each partv to the participation agreement: b. The security provided to each governmental entity that provides public support for an economic development project by the gualirying entity in the form of a lien. mortgage, or other indenture and the pledge of the qualifying business's financial or material participation and cooperation to guarantee the qualifying entity's perrormance pursuant to the project participation agreement: c. A schedule for project development and completion, including measurable goals and time limits for those goals; and d. Provisions for performance review and actions to be taken upon a determination that project performance is unsatisfactory. Sec. 22-2-7.- Project revenues. City revenues dedicated or pledged for funding or financing of economic development projects under this article shall be deposited in a separate account. Separate accounts shall be established for each separate project. Money in the special account shall be expended only for economic development project purposes, which may include the payment of necessary professional services contracts. In no event shall the total of all the city's revenues dedicated, pledged or used pursuant to this article, excluding the value of any land or buildings contributed, exceed five percent of the city's general fund expenditures for any current fiscal year. Sec. 22-2-8.- Other revenue sources. If revenue sources other than those of the city are used to support an economic development project, the source and amount of any such funding must be disclosed. Sec. 22-2-9.- City resources. Available resources the city may offer businesses qualifying under this article include the following: (1) Land the city is willing to lease, sell, or grant. (2) Buildings the city is willing to lease, sell, or grant. (3) Infrastructure the city is willing to build, extend, or expand. (4) Payments for professional services contracts necessary for local or regional governments to implement a plan or project. (5} The provision of direct loans or grants for land. buildings, or infrastructure. (6) Technical assistance to cultural facilities. (7) Loan guarantees securing the cost of land , buildings, or infrastructure in an amount not to exceed the revenue that may be derived from the municipal infrastructure gross receipts tax or the county infrastructure gross receipts tax. (8) Grants for public works infrastructure improvements essential to the location or expansion of a qualifying entity. (9) Grants or subsidies to cultural facilities. (10) Purchase of land for a publicly held industrial park or a publicly owned cultural facility. (11) The construction of a buildir1g for use by a qualifyinq entity. (124) Financial resources available: a. Industrial revenue bonds; - 3.6-  b. Funds allowed to be expended under this article and the local economic development act; and c. Tax incentives provided pursuant to the development incentive act. Sec. 22-2-10.- Minimum benefit required from qualifying entity. The city may require any one or combination of two or more of the following criteria as a minimum bene·fit from a qualifying entity in order to provide economic development assistance under this article: (1) Number and type of jobs created; (2) Proposed payroll; (3) Repayment of loans, if any; (4) Purchase by the qualifying entity of city-provided land, buildings, or infrastructure; (5) Public-to-private investment ratio. The amount of private dollars invested in a project must be at least twice the amount of public dollars invested in the economic development project; and (6) Direct local tax base expansion . Sec. 22-2-11. - Safeguards of public resources. If a qualifying entity fails to perform its substantive contribution, the local or regional government shall enforce the project participation agreement to recover that portion of the public support for which the qualifying entity failed to provide a substantive contribution. The recovery shall be proportional to the failed performance of the substantive contribution and shall take into account all previous substantive contributions for the economic development project performed by the qualifying entity, based on the terms stated in the project participation agreement. The project participation agreement for an economic development project that uses public support provided by the state to a local or regional government shall include a recapture agreement for the state. _U-i:Kti:Jallj:yi~nt4;4;ea~)61!0t.foo.;-+e~Gsal:es--~-l(1~~.atl.lt&-ef~~+its-GGAtfaG.k-+al­ ef--im~-G~I§afi9~~er this arliste.tRe-.sity-wm...,:eseYef-any costs, lana, e~:~iltil~g.s , or other- -lfl.fng or value.:--+l::u:~-~~Gipalion agFeefReAt-sl-laJI-Gontai-A-a-Sf')eGitiG-tef.ln to esta~&r<*~~ p~=evi~s-anG--r-emedles-ffi~meflk)(-f*_H3UG-f:&6~&.- ~ 3.7-  CITY OF FARMINGTON INTER-OFFICE MEMORANDUM TO: Mayor Duckett and City Council FROM: Kristi Benson, CPPO, CPPB Chief Procurement Officer DATE: June 14,2018 SUBJECT: 2P Zone Waterline Replacement- Phase II, Bid #18-126431 USING DEPARTMENT: Public Works ----------------------------------------------------------- A bid opening was held on June 11, 201 a for 2P Zone Waterline Replacement - Phase II. Three (3) bidders responded. The Central Purchasing Department concurs with the recommendation from the Public Works Department to award the bid to TRC Construction, Inc. from Flora Vista, NM, a responsible bidder submitting the lowest responsive bid meeting specifications for a total awarded amount of $3,908,525.86 plus estimated applicable taxes of $298,025.10. In-state and Veterans preference do not apply due to federal funding. Kristi Benson (Presenter) Council Meeting- Close/Reopen June 19, 2018 Copy to: H. Andrew Mason, Administrative Services Director David Sypher, Public Works Director Jeff Smaka, Water/ Wastewater Administrator File - 18-126431 -4.0- CITY OF FARMINGTON -ABSTRACT 2P Zone Waterline Replacement- Phase II COF PROJECT #16-05 NMFA 3632-DW BID #18-126431 OPENING DATE: June 11, 2018 @ 2:00 P.M. Public Works TRC Construction Hank Williams, Inc. TLC Plumbing & Utility ENGINEER'S ESTIMATE $3,700,000 789 Hwy 516 P.O. Box 704 5000 Edith Blvd. NE Flora Vista, NM 87415 Norwood , CO 81423 Albuquerque , NM 87107 Rick Adair Ward Priestley Dale Armstrong 505-793-4 795 970-327-4218 505-781-9696 radair@ TRC-constructio n.com wa rd @wil liamsconstruction .biz msmit h@tlce lumbing.com TOTAL BID: $3,908,525.86 $4,991,527.78 $5,359,361.00 ESTIMATED APPLICABLE TAXES: $298,025.1 0 $380,603.99 $408,651.28 BIDDER'S ESTIMATE OF TAXES FORM INITIALED: Yes Yes Yes BID SIGNED: Yes Yes Yes NM CONTRACTOR'S LICENSE NO.: 87667 359591 51429 NM DEPT OF WORKFORCE SOLUTIONS- PUBLIC WORKS NO.: 2201920110314 20201420110314 191742011629 ADDENDUM ACKNOWLEDGED: Yes Yes Yes LIST OF SUBCONTRACTORS: Yes Yes Yes BID BOND ENCLOSED: Yes Yes Yes BIDDER'S QUALIFICATIONS: Yes Yes Yes DRUG-FREE WORKPLACE CERTIFICATION: Yes Yes Yes CONTRACTOR'S SAFETY CERTIFICATION: Yes Yes Yes CERTIFICATIONS REGARDING EQUAL OPPORTUNITY CLAUSE: Yes Yes Yes MBW/WBEJSBRA UTILIZATION FORM: Yes Yes Yes DAVIS BACON CERTIFICATION: Yes Yes Yes CERTIFICATION REGARDING DEBARMENT: Yes Yes Yes DBE SUBCONTRACTOR UTILIZATION FORM: Yes Yes Yes AMERICAN IRON & STEEL CERTIFICATION: Yes Yes Yes