City Council

AGENDA GALLUP CITY COUNCIL REGULAR MEETING TUESDAY, AUGUST 25, 2015; 6:00 P.M. CITY COUNCIL CHAMBERS Jackie McKinney, Mayor Linda Garcia Allan Landavazo Councilor, District #1 Councilor, District #2 Yogash Kumar Fran Palochak Councilor, District #3 Councilor, District #4 Maryann Ustick, City Manager George Kozeliski, City Attorney A. Pledge of Allegiance B. Roll Call C. Approval of Minutes Regular Meeting of August 11, 2015 D. Discussion/Action Topics 1. Grant of Easements to the City of Gallup for Reach 27.6, Project #6 of the Navajo Gallup Water Supply Project – George Kozeliski, City Attorney 2. Water Service Agreement with Ronald E. Silva and Deanna D. Silva – George Kozeliski, City Attorney 3. Fiscal Year 2016 Lodger’s Tax Funding for Events – Patty Holland, Chief Financial Officer 4. Budget Adjustment for Increased Prisoner Care Costs at the Adult Detention Center – Patty Holland, Chief Financial Officer 5. Asset Management Plan Phase I Proposal – Stan Henderson, Public Works Director 6. Resolution No. R2015-25; Water Trust Board #334 Loan Repayment Certification – Vince Tovar, Gallup Water and Sanitation Director AGENDA Regular City Council Meeting – 8/25/2015 Page 2 E. Comment From Mr. Titus Nez, President of the Gallup McKinley County School Board F. Motion to Adjourn Into Closed Session for the Purpose of Discussing the Acquisition of Real Property, Pursuant to §10-15-1-H(8) NMSA 1978 Comp. (as revised) G. Motion to Reconvene Regular Meeting H. Certification for the Record of the Matters Discussed During the Closed Session I. Comments by Public on Non-Agenda Items J. Comments by Mayor and City Councilors K. Comments by City Manager and City Attorney L. Motion to Adjourn Auxiliary aides for the disabled are available upon request. Please contact Alfred Abeita, City Clerk, at 863-1254 at least one (1) week prior to the meeting or as soon as possible in advance of the meeting to make any necessary arrangements. Pursuant to the “Open Meetings Act”, NMSA 1978, Section 10-15-1 through 10-15-4 of the State of New Mexico, this Agenda was posted at a place freely accessible to the public 72 hours in advance of the scheduled meeting.  Minutes Regular Meeting of August11, 2015 Minutes of the Regular Meeting of the Gallup City Council, City of Gallup, New Mexico, held in the Council Chambers at City Hall, 110 West Aztec Avenue, at 6:00 p.m. on Tuesday, August11, 2015. The meeting was called to order by Mayor Jackie McKinney. Upon roll call, the following were present: Mayor: Jackie McKinney Councilors: Linda Garcia Allan Landavazo Yogash Kumar Fran Palochak Also present: Maryann Ustick, City Manager George Kozeliski, City Attorney Presented to the Mayor and Councilors were the Minutes of the Regular Meeting of July 28, 2015. Councilor Palochak made the motion to approve the aforementioned Minutes. Seconded by Councilor Garcia. Roll call: Councilors Palochak, Garcia, Kumar, Landavazo, and Mayor McKinney all voted yes. Presented to the Mayor and Councilors were the following Discussion/Action Topics: 1. Resolution No. R2015-24; A Resolution Naming the Gallup Municipal Airport Terminal the “Joe Danoff Terminal” George Kozeliski, City — Attorney Mr. Kozeliski and Mayor McKinney provided an overview of Mr. Danoff’s years of service, dedication and commitment to aviation in Gallup, especially during Mr. Danoff’s tenure as Airport Manager. It was highly recommended that the current airport terminal building and the contemplated future replacement airport terminal building be named the “Joe Danoff Terminal.” Following discussion, Councilor Landavazo made the motion to approve Resolution No. R2015-24. Seconded by Councilor Palochak. Roll call: Councilors Landavazo, Palochak, Garcia, Kumar, and Mayor McKinney all voted yes. 2. Request for a Waiver of the Red Rock Usage Fees for the 2015 Gallup Inter-Tribal Indian Ceremonial — Mary Jean Christensen and Hilda Bowman, Gallup Inter-Tribal Indian Ceremonial Ms. Bowman presented the request for the City to waive the fees in the amount of MINUTES Regular City Council Meeting — 8/11/2015 Page 2 $60,935 for the use Red Rock Park for this year’s Ceremonial. The financial data for this year’s Ceremonial was not available; however, Ms. Bowman, Ms. Christensen, Cynthia Poblano and Councilor Garcia, who is also a Ceremonial Board Member, provided an overview of this year’s Ceremonial, including the rodeo, exhibit hall, dances and parades. Ceremonial representatives commended the work done by City crews, local volunteers, and board members. Councilor Landavazo recommended that the Ceremonial Board request a partnership with the County that would allow for the sharing of the park’s expenses with the City for hosting the Ceremonial next year. Ms. Bowman said the County allocated $40,000 for this year’s Ceremonial. Councilor Palochak considers the Ceremonial to be a community event and it should be assumed that the City is a partner in hosting the event. She recommended eliminating the requirement for Ceremonial representatives to request a waiver of the usage fees every year. Mr. Kozeliski said about six years ago there were claims that the City does not do enough to support the Ceremonial; therefore, the Council at that time mandated discussion on the mailer during a public meeting. Mr. Kozeliski said the Mayor and Councilors may change the requirement if they prefer. Mayor McKinney said the City also provides $50,000 in lodger’s tax funding for Ceremonial. Following discussion, Councilor Palochak made the motion to approve the request for a waiver of the Red Rock Park usage fees for the 2015 Gallup Inter-Tribal Indian Ceremonial. Seconded by Councilor Kumar. Roll call: Councilors Palochak, Kumar, Landavazo, and Mayor McKinney all voted yes. Councilor Garcia abstained. Motion carried. 3. Ordinance No. S2015-4; An Ordinance Authorizing the Execution and Delivery of a Water Project Fund Loan/Grant Agreement By and Between the New Mexico Finance Authority and the City of Gallup Vince Tovar, — Gallup Water and Sanitation Director Mr. Tovar said the proposed Ordinance would authorize the execution and delivery of a Navajo Gallup Water Supply Project (NGWSP) Fund Loan/Grant Agreement between the New Mexico Finance Authority and the City of Gallup in the amount of $4 million. The proceeds of the Loan/Grant Agreement will be used for constructing Reach 27.6 of the NGWSP. Mr. Kozeliski said the Fiscal Administration Agreement with the Northwest New Mexico MINUTES Regular City Council Meeting — 8/11/2015 Page 3 Council of Governments is part of the proposed Ordinance and related loan documents. He there will be a minor change to paragraph 5 of the Fiscal Administration Agreement. With the use of a map on an overhead projector, Mr. Tovar and Mr. Kozeliski provided information concerning the improvements to be made by constructing Reach 27.6 of the NGWSP. Councilor Garcia made the motion to approve Ordinance No. 52015-4. Seconded by Councilor Palochak. Roll call: Councilors Garcia, Palochak, Landavazo, Kumar, and Mayor McKinney all voted yes. 4. Capital Purchase of a Vactor Truck for the Waste Water Department — Vince Tovar, Gallup Water and Sanitation Director Mr. Tovar said the City’s existing vactor truck is constantly being used and cannot achieve the level of sewerage network cleaning and the required routine maintenance to prevent blockages, overflows and backups. With the purchase of a new vactor truck, both trucks may be properly maintained to the end of the fiscal year at which time funds could be budgeted to rehabilitate the older truck. Councilor Palochak made the motion to approve the capital purchase of a vactor truck for the Waste Water Department. Seconded by Councilor Landavazo. Roll call: Councilor Palochak, Landavazo, Kumar, Garcia, and Mayor McKinney all voted yes. 5. Budget Adjustment for Professional and Legal Services for the G-22 Water Rights Acquisition Vince Tovar, Gallup Water and Sanitation — Director Mr. Tovar provided a brief history on the G-22 Water Rights Application including the claims, litigation and amended applications filed over time. The funding of $250,000, which was approved by the City Council in April 2015, was used to provide professional and technical resources for the City’s efforts through the end of the fiscal year. Critical hearings on the matter before the State Engineer have been scheduled for November 2015; however, several opponents in the case are requesting to delay the trial by 4 to 13 months. The City is opposed to the requests to delay the hearings and is attempting to maintain the November schedule in the administrative process. Mr. Tovar requested approval of the proposed budget adjustment in the amount of $250,000 to fund the City’s strategy in the administrative process. Mr. Kozeliski provided an overview of the City’s attempts to settle the matter with the protestants. MINUTES Regular City Council Meeting — 8/11/2015 Page 4 Following discussion, Councilor Landavazo made the motion to approve the budget adjustment for professional and legal services for the G-22 Water Rights Acquisition. Seconded by Councilor Kumar. Roll call: Councilors Landavazo, Kumar, Garcia, Palochak and Mayor McKinney all voted yes. 6. Donation of Property to the State of New Mexico Along Historic Highway 66 (NM 118) George Kozeliski, City Attorney — Mr. Kozeliski said the City has been trying to donate four parcels of property along Highway 66 to the New Mexico Department of Transportation (NMDOT) for approximately 18 months. The four parcels contain a total of 1,248 square feet of land in which most of the parcels are already in use on Highway 66. Mr. Kozeliski recommended approval of the donation contracts and the quit claim deeds to the NMDOT in order to move forward with the Pedestrian Safety Project on Highway 66. Councilor Kumar made the motion to approve the donation of property to the State of New Mexico along Historic Highway 66 (NM 118). Seconded by Councilor Garcia. Roll call: Councilors Kumar, Garcia, Landavazo, Palochak, and Mayor McKinney all voted yes. 7. Resolution No. R2015-20; Condemnation of Certain Real Property Located at 705 West Aztec Avenue C.B. Strain, Planning Director — Mr. Strain said the proposed Resolution was previously presented at the last regular meeting; however, based on a request by the property owner, the matter has been continued to the current meeting. Mr. Strain said the structure at this location remains in a dilapidated condition and has fallen under such disrepair that City staff has rendered the building to be unsafe, inhabitable and a threat to the public’s health safety and welfare. He said there has been a total of 74 calls for service to the Police Department over a span of six years at the property. Mr. Strain said Terry Rocco, power of attorney for the property owner Louis Rocco, could not be in attendance due to health reasons and has asked for another time extension to appear before the Mayor and Councilors. Mr. Strain said he advised Terry Rocco that the Council has the option of approving the condemnation and if such action by the Council occurs, Mr. Rocco would have 10 days to appeal the action and to request a hearing before the Council. Rochelle Rocco, daughter of the property owner, said her family has the money to refurbish the property and would like to do so. An unidentified individual, who stated he was Ms. Rocco’s boyfriend, asked for a time extension to make the property suitable by cleaning around the house. MINUTES Regular City Council Meeting — 8/11/2015 Page 5 Peggy Walker said Ms. Rocco has been ordered by the City to stay away from the property. Ms. Walker said she was assured by the Rocco family that they would get things done as soon as possible; however, Ms. Rocco needs ample time to bring the property to City’s standards. Mayor McKinney asked if the Rocco family is allowed to go onto the property. Mr. Strain said the house at the location was red-tagged due to the substandard living conditions which prohibits anyone from living in the structure. Mr. Strain said the Rocco’s may gain access to the property to make the necessary repairs and improvements; however, they may not live in the structure until the structure is brought up to code. Mayor McKinney asked when the first notice regarding the code violations was issued to the property owner. Mr. Strain said the first notice was issued on June 2, 2014, which was followed-up by a second notice and finally, by the clean and lien process. Although the lien was paid-off by the property owner, the property fell into a state of disrepair due to the lack of regular maintenance. Councilor Garcia asked if the structure could be repaired. Mr. Strain said he could not detect any major signs of the structure collapsing; however, it will take time and money to repair the structure. Mr. Strain also said if a time extension for the repairs is granted, a deadline needs to be specified for the owner to complete the repairs. Mr. Strain said staff recommends approval of the condemnation of the property and if the property owner’s power of attorney wants to appeal the condemnation, then the property owner’s power of attorney may do so by requesting a hearing before the Mayor and Councilors. Councilor Kumar asked how long the family would need to make the repairs to the property. Ms. Rocco said she would need 90 days to repair the property. Mr. Strain reiterated his recommendation to approve the condemnation of the property and to allow the property owner or the property owner’s power of attorney to decide on the next steps for the property. Councilor Palochak said she receives numerous phone calls regarding the dilapidated condition of the property which is located within her district. She expressed concerns with the graffiti on the structure which was cleaned by City crews. Councilor Palochak said she can appreciate Ms. Rocco waiting to make the repairs to the property; however, Mr. Rocco does not have legal authority to do so. Councilor Palochak recommended approval of the proposed Resolution. Mayor McKinney commended Ms. Rocco for her intentions to improve the property; however, the City must deal with the property owner. Ms. Rocco asked if she could access the property to obtain her personal belongings. Mr. Strain said he could contact Terry Rocco to see if Ms. Rocco could obtain her belongings. MINUTES Regular City Council Meeting — 8/11/2015 Page 6 Regarding Ms. Rocco’s boyfriend’s remarks, Councilor Landavazo said cleaning around the structure is not the only task that needs to be done as repairs to the structure is required to make it habitable. Following discussion, Councilor Palochak made the motion to approve Resolution No. R2015-20. Seconded by Councilor Landavazo. Roll call: Councilors Palochak, Landavazo, Kumar, Garcia, and Mayor McKinney all voted yes. Ms. Walker asked about the appeal process. Mr. Strain said the property owner or the property owner’s power of attorney has 10 days from today’s date to contact the City Clerk to request a hearing before the City Council. 8. Airport Runway Reconstruction Project Design — Stan Henderson, Public Works Director Mr. Henderson said the existing runway and taxiway at the airport are in poor condition and requires reconstruction. The City’s airport engineering consultants, Armstrong Consultants, Inc., submitted a proposal in the amount of $222,747.00 plus New Mexico Gross Receipts Tax for the engineering design work for the project. The Federal Aviation Administration (FAA) will provide 90% of the funding for the project with 5% coming from the NMDOT and 5% from the City. The approved budget for the project under the City’s Community Improvement Plan is $10,000; however, $1,938 will need to be added to the project budget for a total of $1 1,938 for the City’s match. Mayor McKinney asked about the estimated cost of the entire project. Mr. Henderson said the cost of the entire project is estimated between $3 million to $4 million which will be funded under the same formula: 90% FAA, 5% NMDOT and 5% City. Councilor Kumar made the motion to approve the proposal with Armstrong Consultants and the additional funding of $1,938.00 for the project. Seconded by Councilor Garcia. Roll call: Councilors Kumar, Garcia, Landavazo, Palochak, and Mayor McKinney all voted aye. The following Presentation and Information Item was presented to the Mayor and Councilors: 1. Update on the City’s Odor Abatement Program — Vince Tovar, Director, Gallup Water and Sanitation Department Mr. Tovar provided a PowerPoint presentation on the City’s Odor Abatement Project and the City’s strategy to address the problem with odors emanating from the City’s MINUTES Regular City Council Meeting — 8/11/2015 Page 7 waste water system. A copy of the PowerPoint presentation is attached hereto, marked as Exhibit A and made a part of these official Minutes. Regarding the capital costs for the project, Mr. Tovar said the City will begin transporting sludge to the landfill on a routine basis beginning next week which will eliminate the odors at the waste water treatment plant. The process, which is estimated to cost the City $320,000 in annual operating and maintenance costs, is not sustainable for the long term. Discussion followed concerning Mr. Tovar’s recommendation to prepare and issue a Request for Proposals (RFP) to challenge the private sector to propose sustainable sludge management options and to develop alternative options for cost control; the process and the costs to transport sludge to the landfill every week; the use and discharge of affluent water processed by the waste water treatment plant; plans for a long term regional waste water facility as a component of the Navajo Gallup Water Supply Project; possible elimination within two to three years of the additives that are being injected into the City’s waste water system to reduce odors; and the problems that surface when sewer lines are replaced through a piecemeal process. Mr. Tovar introduced Fred Kriess, Regional Manager for Severn Trent Environmental Services. Mr. Kriess provided an overview of his involvement in addressing water and waste water issues, including odor control, in communities of the southwest. In going forward, Mr. Kriess said his company will do their best to provide professional and top quality service to the City. Comments by Public on Non-Agenda Items Linda Layton-Bowlby expressed her concerns with the Mayor and Councilors’ decision to allocate $3.5 million for improvements to the Fox Run Golf Course. She presented the results of a survey she conducted among 150 local physicians and dentists based on the belief that the golf course was a necessity to attract and retain physicians and dentists to the region. Joann Benenati also expressed her concerns with the Council’s decision to allocate $3.5 million for improvements to the golf course. She does not believe the City will have a destination golf course by committing a high amount of funds for the project. She said $3.5 million could be used for 15 years of curbside recycling to 6,000 residences with no extra charge on their utility bills. Larry Winn said if there is going to be regional waste water facility, he said the facility should never be managed or owned by the Navajo Tribal Utility Authority (NTUA). If NTUA owns or manages the facility, he said the City would become a customer of NTUA which cost the City massively. As a former member of the Gallup Water Board, he said the Board in 2007 highly recommended G-22 as the most reliable and cheapest MINUTES Regular City Council Meeting —8/11/2015 Page 8 alternative for Gallup’s water future. He also questioned the Council’s judgement for funding the golf course improvements and their hesitation for implementing curbside recycling. Comments by Mayor and City Councilors Councilor Garcia commended the volunteer work of the Ceremonial Board and its committees. She said the groundbreaking ceremony for the new Del Norte Elementary School will take place on Thursday, August 13, 2015 at 1:00 p.m. Councilor Kumar also commended the Ceremonial Board for doing an outstanding job. Councilor Landavazo said he and his family members from California celebrated the Ceremonial. He enjoyed seeing local residents and visitors from around the country and from around the world coming to Gallup for the Ceremonial. He also spoke with Dudley Byerly regarding the success of the Ceremonial Rodeo. He encouraged everyone to continue to celebrate Gallup. Councilor Palochak said she appreciates the work of all of the volunteers during the Ceremonial. She also commended all City crews for their hard work at the Ceremonial. Some City crews had to work overnight to repair a water main break near Red Rock Park. She said the City has fantastic personnel and encourage the public to contact City Hall when they have a problem. Councilor Palochak invited residents of her district to a neighborhood meeting on Thursday, August 13, 2015 at 6:00 p.m. at Stagecoach Elementary School. Mayor McKinney commended City crews for their work in removing all the litter from the downtown area after the Ceremonial parades. He also encouraged the public to attend the City Council Meetings when action is going to be taken on matters they have a passion for. He said the City Council meeting agendas are available to the public three days in advance of the meetings. He also expressed condolences to the family of Phil Garcia who passed away yesterday. Mr. Garcia served 37 years on the Planning and Zoning Commission and dedicated his life to protecting the community as it grew and developed over the years. Comments by City Manager Ms. Ustick said it was a privilege and honor to be part of a city that has an event such as Ceremonial. She thanked the Mayor and Councilors for recognizing City staff for their hard work before, during and after the Ceremonial. Ms. Ustick said there will be a community workshop on revitalizing downtown Gallup beginning Friday, August 21, 2015 at 5:00 p.m. and continuing Saturday, August 22, 2015 from 10:00 a.m. — 3:00 p.m. The workshop will be held at El Morro Second Street Events Center. The purpose MINUTES Regular City Council Meeting — 8/11/2015 Page 9 of the workshop is to solicit input for the Metropolitan Redevelopment Area and the Arts and Cultural District plans. There being no further business, Councilor Kumar made the motion to adjourn the meeting. Seconded by Councilor Garcia. Roll call: Councilors Kumar, Garcia, Landavazo, Palochak, and Mayor McKinney all voted yes. Jackie McKinney, Mayor ATTEST: Alfred Abeita II, City Clerk  DiscussionlAction Topic I Grant of Easements to the City of Gallup for Reach 27.6, Project #6 of the Navajo Gallup Water Supply Project George Kozeliski, City Attorney f\ CITY OF COUNCIL STAFF SUMMARY FORM GALLUP MEETING DATE: August 25, 2015 SUBJECT: Easements to the City of Gallup for Reach 27.6 Project # 6 DEPT. OF ORIGIN: City Attorney DATE SUBMITTED: August11, 2015 SUBMITTED BY: George W. Kozeliski, City Attorney Summary: These are easements for the eastern reach of Navajo/Gallup. The City needs to give itself Easements over its own land to encumber the land so in the future the land is subject to the Navajo/Gallup pipeline Fiscal Impact: None Reviewed B Attachments: Grant of Easements //_ Legal Review: Approved Approved As To Form:___________________________ Recommendation: Approve two easements 1 Approved Submitta(B’v z7 ,-f //7 //\ CITY CLERK’S USE ONLY COUNCILACTIONTAKEN Resolution No. Continued To: Ordinance No. Referred To: Approved: Denied: Other: File:  GRANT OF EASEMENT KNOW ALL MEN BY THESE PRESENTS: That the undersigned, CITY OF GALLUP, New Mexico a municipal corporation, hereinafter termed the Grantor hereby grants, and conveys unto the CITY OF GALLUP, NEW MEXICO, a municipal corporation, a perpetual, fidl and unrestricted easement for utility purposes, in, upon, over and across the following described strips, tracts and parcels of land located in McKinley County, New Mexico, hereinafter described as follows: DESCRIPTION A STRIP OF LAND 20 WIDE LYING WITHIN LOT 3, PONCE SUBDIVISION, GALLUP, McKINLEY COUNTY, NEW MEXICO AS THE SAME IS SHOWN ON THE PLAT FILED IN THE OFFICE Of THE CLERK OF McKINLEY COUNTY ON MAY 16, 2011, THE CENTERLINE BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHWEST CORNER OF SAID LOT 3, THENCE N00’29’12E ON A NEW MEXICO STATE PLANE WEST ZONE GRID BEARING, 10.64 TO THE REAL POINT OF BEGINNING. THENCE N70°3104”E, 444.66 TO A POINT; THENCE N56° 11 ‘07E, 74.92 TO THE POINT OF ENDING. THE SIDELINES EXTENDED OR SHORTENED AS TO TERMINATE AT THE LOT LINE OR EXISTING EASEMENT LINE. CONTAINING 0.238 ACRES MORE OR LESS Together with the free and unrestricted rights to the City of Gallup to place therein, thereunder, thereon, and above the same water, sewer lines and pipes, electric power lines, and the necessary appurtenances of such lines, and to grant the use thereof to others for such purposes, and to prohibit the use of such land for purposes which are or which may become, inconsistent with the use hereby granted. Together with the right to enter in, upon, over and across the aforesaid lands for the purpose of construction, operation, maintenance, repair and removal of said utility lines. To have and to hold the said easement for the purposes aforesaid, to the City of Gallup, its successor and assigns so long as the said easement shall not be abandoned for utility purposes. Dated this day of August, 2015 CITY OF GALLUP By: Jackie McKinney, Mayor ATTEST: Alfred Abeita, City Clerk STATE OF NEW MEXICO ) ss. COUNTY OF McKINLEY The foregoing instrument was acknowledged before me this day of August, 2015, by Jackie McKinney, Mayor, for and on behalf of CITY OF GALLUP, a municipal corporation. Notary Public My commission expires: ACCEPTANCE Comes now the CITY OF GALLUP, NEW MEXICO and hereby accepts the above Grant of Easement this day of August, 2015. CITY OF GALLUP By Jackie McKinney, Mayor ATTEST: Alfred Abeita, City Clerk 2  GRANT OF EASEMENT KNOW ALL MEN BY THESE PRESENTS: That the undersigned, CITY Of GALLUP, New Mexico a municipal corporation, hereinafter termed the Grantor hereby grants, and conveys unto the CITY Of GALLUP, NEvV i’vIEXICO, a municipal corporation, a perpetual, full and unrestricted easement for utility purposes, in, upon, over and across the following described strips, tracts and parcels of land located in McKinley County, New Mexico, hereinafter described as follows: DESCRIPTION A STRIP OF LAND $0’ WIDE IN THE SOUTHEAST 1/4 OF SECTION 10, T15N, Rl$W, N.M.P.M., GALLUP, McKINLEY COUNTY, NEW MEXICO LYING WITHIN THE SUNSHINE CANYON SUBDIVISION TO THE CITY OF GALLUP FILED 7/24/74 AND THE CENTERLINE BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE EAST 1/4 CORNER OF SAID SECTION 10; THENCE S50°05’41”W ON A NEW MEXICO STATE PLANE WEST ZONE GRID BEARING, A DISTANCE OF 1658.37’ TO A POINT ON THE EAST BOUNDARY OF SAID SUNSHINE CANYON SUBDIVISION AND THE REAL POINT OF BEGINNING; THENCE N89° 1449W, 472.39’ TO A POINT ON THE WEST BOUNDARY OF SAID SUBDIVISION AND THE POINT OF ENDING. THE SIDELINES SHORTENED AND EXTENDED AS TO TERMINATE AT THE PROPERTY LINES. CONTAINING 0.868 ACRES MORE OR LESS Together with the free and unrestricted rights to the City of Gallup to place therein, thereunder, thereon, and above the same water, sewer lines and pipes, electric power lines, and the necessary appurtenances of such lines, and to grant the use thereof to others for such purposes, md to prohibit the use of such land for purposes which are or which may become, inconsistent with the use hereby granted. Together with the right to enter in, upon, over and across the aforesaid lands for the purpose of construction, operation, maintenance, repair and removal of said utility lines. To have and to hold the said easement for the purposes aforesaid, to the City of Gallup, its successor and assigns so long as the said easement shall not be abandoned for utility purposes. Dated this day of August, 2015 CITY OF GALLUP By: Jackie MeKinney, Mayor ATTEST: Alfred Abeita, City Clerk STATE OF NEW MEXICO ) ss. COUNTY OF McKINLEY The foregoing instrument was acknowledged before me this day of August, 2015, by Jackie McKinney, Mayor, for and on behalf of CITY OF GALLUP, a municipal corporation. Notary Public My commission expires: ACCEPTANCE Comes now the CITY OF GALLUP, NEW MEXICO and hereby accepts the above Grant of Easement this day of August, 2015. CITY OF GALLUP By Jackie McKinney, Mayor ATTEST: Alfred Abeita, City Clerk 2  DiscussionlAction Topic 2 Water Service Agreement with Ronald E. Silva and Deanna D. Silva George Kozeliski, City Attorney  CITY OF COUNCIL STAFF SUMMARY FORM L*j GALLUP MEETING DATE: August 25, 2015 SUBJECT: Water Service Agreement with Ronald E. Silva & Deanna D. Silva DEPT. OF ORIGIN: City Attorney DATE SUBMITTED: August 18, 2015 SUBMITTED BY: George W. Kozeliski, City Attorney Summary: The City cannot provide water outside the city limits of Gallup except for narrow exception. One exception is where the landowners provide an easement or a well site or other benefit to the city to bring water into the city system. The Silva’s predecessor in title, Gallup Gamerco Coal Company provided the easement (right-of-way) to the City of Gallup for the main water line into Gallup for the Yah-Ta-Hey well field. The Silva’s, as present owners of the property, have requested water & waste water service. Fiscal Impact: t:r’ system Reviewed Finance partment Attachments: Agreement Legal Review: Drafted Agreement by City Attorney As To FOtm Recommendation: Approval of Agreement CITY CLERK’S USE ONLY COUNCIL ACTION TAKEN Resolution No. Continued To: Ordinance No. Referred To: Approved: Denied: Other: File: ,  WATER SERVICE AGREEMENT THIS AGREEMENT is made and entered into this day of August, 2015, by and between RonaLd E. Silva and Deanna D. Silva, individually and as trustees of the Ronald E. Silva and Deanna D. Silva Revocable Trust, dated February 16, 2006. hereafter referred to as “SILVA’S”, and the City of Gallup, New Mexico, a New Mexico municipal corporation, hereafter referred to as “GALLUP”. WHEREAS, SILVA’S are the successors in interest to certain lands owned by Gallup Gamerco Coal Company which granted the GALLUP and easement in April of 1963 to run the main water line servicing the City of Gallup with water from its Yah-Ta-Hey water well fields north of Gallup; and WHEREAS, GALLUP can furnish water from the City municipal water supply to owners of property outside the city limits of Gallup that help provide water to the City; and WHEREAS, SILVA now own that certain parcel of land legally described in paragraph 3 below, which is the base land over which the easement exists; and WHEREAS, SILVA’S have requested of GALLUP that SILVA’S wish to access city water based upon SILVA’S predecessor in interest and its assistance to the City of Gallup. NOW THEREFORE it is agreed by and between the parties as follows: 1. PREVIOUS GRANT OF EASEMENT. The Parties acknowledge the SILVA’S, based upon an April 23, 1963 easement from Gallup Gamerco Coal Company to the City of Gallup, are entitled to receive water service from Gallup. 2. TERM. The term of this agreement shall be commence at the signing hereof and continue until such time that SIL VA’S or SILVA’s successors in interest annex into the City of Gallup, or such time that SILVA’S or SILVA’s successors in interest violate the terms of this agreement. 3. REAL PROPERTY SUBJECT TO AGREEMENT. The real property that is the subject of this agreement is located at the western end of the street in the City of Gallup known as Silva Street and covers any portion of Section 9. Township 15 North, Range 1$ West presently owned by SIL VA’S. 4. QUALITY OF WATER. GALLUP makes no representations, warranties, or guarantees about the quality of water provided to Owners except that the water will be of drinking water quality and will be in conformance with applicable federal and state regulations when it arrives at SIL VA’S master water meter and SILVA’S are responsible for water quality after it passes through the master meter, including any equipment that may be required by federal or state regulators. 5. WATER AVAILABILITY. The availability of water may be subject to periodic interruptions due to emergency circumstance beyond the control of GALLUP. and as deemed necessary by GALLUP to perform maintenance on its facilities. GALLUP shall take every reasonable effort to limit interruption to service and when possible schedule interruption so as to minimize inconvenience to SILVA’S. 6. WATER SHORTAGES. GALLUP shall not be obligated to provide water to SILVA’S if GALLUP declares a water emergency or prolonged water shortage. Declaration of a water emergency shall be at the sole determination of GALLUP, and shall be declared upon any condition which limits the ability of GALLUP to maintain water production, treatment or delivery capacity. In the event GALLUP, for any reason, anticipates a prolonged water shortage SILVA’S shall be subject to any and all restrictions placed on all other water customers of GALLUP. 7. WATER FACILITIES AND MAINTENANCE. Nothing in this agreement shall require GALLUP to construct or otherwise provide any facility necessary to provide water to SILVA’S. SILVA’S shall be responsible for the installation, operation, maintenance and replacement of any and all facilities necessary to receive water from GALLUP, and any and all facilities necessary to distribute water to and upon SILVA’S property. 8. MASTER METER. Water supplied to SILVA’S by GALLUP shall be through a single master meter of not larger than a two (2) inch typical domestic water meter, to be located as near as practical to existing GALLUP water supply facilities. The cost of installation of meter and associated line extensions and improvements shall be borne by SILVA’S. 9. GENERATION AND DISPOSAL OF WASTEWATER. SILVA will be responsible for disposing of any generated domestic, commercial or industrial wastewater into GALLUP’S sanitary sewer system under the following conditions: A. SILVA’s agree that any wastewater discharges into the City of Gallup sanitary sewer system will conform to Gallup’s industrial wastewater ordinance as it may be amended from time to time. B. Gamerco and Gallup agree that in the event of a Federal or State mandated change to the required level of wastewater treatment SILVA’s agrees to conform to those changes.  C. SILVA’s agree to pay the standard GALLUP charge for sanitary sewer as part of SILVA’s water/utility bill and any increases and changes as may be amended on class rates from time to time. 10. CHARGES FOR WATER SUPPLIED. Pursuant to City Ordinance because the property served is outside the municipal boundaries of the GALLUP, Owners shall pay GALLUP for water One and one half (1.5) the rate charged by GALLUP for service to its Commercial Customers within the city limits, plus the customary monthly service charge (based on meter size), sewer charges, and all applicable taxes, surcharges and other charges as same are changed or amended from time to time. 11. BILLING AND PAYMENTS. Owners shall be billed for water use on a monthly basis, and shall promptly pay said bill in full, when due. Any failure by Owners to make ordinary monthly payments shall be consider cause for the termination of service until such time as Owners provide full payment of any outstanding balance due, including any penalties. Should Owners become more than one hundred and twenty (120) days in arrears, GALLUP shall have the right to permanently terminate service under this agreement, and Owners shall relinquish any and all rights to water service herein. 12. SEPERATION OF WATER SUPPLY. The parties understand and agree there are other wells in and adjacent to SILVA’S property that is the subject of this agreement. SILVA’S agree that water obtained from GALLUP will be completely separate of the other wells and will serve SIL VA’s property only. SILVA’S are responsible that no possible cross connections will occur that would mix any area well water with GALLUP supplied water. If such event occurs GALLUP may immediately terminate this agreement and hold SILVA’S responsible for any and all damages, fines and penalties that might result if such cross- connection occurs. 13. SEVERABILITY. If any portion of this agreement is deemed unenforceable, the balance of the agreement shall continue in full force and effect. 14. AMENDMENTS. This agreement may not be modified, amended or changed in any manner except by written agreement by both parties hereto. 15. JURISDICTION AND VENUE. This agreement shall be subject to the regulations of the New Mexico Office of the State Engineer, the laws of State of New Mexico, and the Ordinances of the City of Gallup. Jurisdiction and venue for Court interpretation on this agreement shall be in the District Court for McKinley County, New Mexico. 16. WATER RIGHTS. SILVA’S agree to forfeit any and all rights to object to GALLUP’S development of its existing declared water right or any and all applications by GALLUP for new appropriations. 17. NOTICES. Any notice under this agreement shall be in writing and sent to the parties at the following addresses: City of Gailcip: City Manager CITY OF GALLUP 110 West Aztec Gallup, NM 87301 Owners: Ron and Deanna Silva P.O. Box 1384 Gallup, New Mexico 87305-1384 18. AGREEMENT RUNS WITH THE LAND. The terms of this agreement are in substitute of the agreement dated and recorded April 23, 1963 mentioned above, and as such. run with the land and are binding on the successors and assigns in interest to the property described in paragraph 3 above and on GALLUP.  IN WITNESS WHEREOF, the parties have set their hands on the day and year first above written. RONALD E. SILVA AND DEANNA D. SILVA INDIVIDUALLY, AND AS TRUSTEES: By: Ronald E. Silva By: Deanna D. Silva CITY OF GALLUP, NEW MEXICO By: Jackie D. McKinney, Mayor ATTEST: Alfred Abeita, City Clerk ACKNOWLEDGEMENTS STATE OF NEW MEXICO ) ) ss. COUNTY OF McKinley ) The forgoing instrument was acknowledged before me this / day of August, 201 5, by Ronald E. Silva and Deanna D. Silva. individually and as trustees of the Ronald E. Sika and Deanna D. Silva Revocable Trust, dated February 16, 2006, for and on behalf of said Trust. No ary Pul3. / ‘9 My commission expires: /1 STATE OF NEW MEXICO ) ) ss. COUNTY OF McKINLEY ) The forgoing instrument was acknowledged before me this day of August, 2015, by Jackie McKimey, Mayor of City of Gallup, a New Mexico municipal corporation for and on behalf of said corporation. Notary Public My commission expires:  Discussion/Action Topic 3 Fiscal Year 2016 Lodger’s Tax Funding for Events Patty Holland, Chief Financial Officer  CITY OF COUNCIL STAFF SUMMARY FORM *j GALLUP MEETING DATE: August 25, 2015 SUBJECT: EYE 2016 Lodgers Tax Event Funding DEPT. OF ORIGIN: Finance DATE SUBMITTED: August 20, 2015 SUBMITTED BY: Patty Holland Summary: Each year, the Lodgers Tax Committee recommends funding for the promotion of events to bring tourism to the City of Gallup. The funds are provided from the Lodgers Tax Funding collected and can be used for promotional purposes only. The attached form lists the newest requests and the recommendation for funding for each. Fiscal Impact: Reviewed By: O41JI(J Finae p rtment There are sufficient funds in place for the recommended funding. These are to be paid from the Lodgers Tax Fund. Attachments: Recommended Funding. Legal Review: Approved As To Form:___________________________ City Attorney Recommendation: Staff recommends approval of the recommended funding. pproved for Submittal By: I I (f iJ%AXA CITY CLERK’S USE ONLY COUNCIL ACTION TAKEN ntDIrto FY 2016 Lodgers Tax Applicants FY2016 Project # Organization Name Council Event Name Contact FY 2015 Award FY 2016 Request Committee • Approved Recommendation MCKINLEY COUNTY HUMANE SOCIETY THE GREAT GATSBY BOW MEOW COLT BALOK $ - $ 5,000.00 $ 900.00 TRICES INC DBA RED ROCK PRODUCTION RED ROCK TRAILER ROPING WALT EDDY $ - $ 2,000.00 $ 1,000.00  DiscussionlAction Topic 4 Budget Adjustment for Increased Prisoner Care Costs at the Adult Detention Center Patty Holland, Chief Financial Officer  CITY OF COUNCIL STAFF SUMMARY FORM GALLUP MEETING DATE: August 25,2015 SUBJECT: Adult Detention Center Prisoner Care DEPT. OF ORIGIN: Finance DATE SUBMITTED: August 20, 2015 SUBMITTED BY: Patty Holland Summary: The costs of running the adult detention center are to be shared by the County and the City. The County has issued the City a bill for our portion of the expense for the 2015 fiscal year in the amount of $515,501.19. Fiscal Impact: Reviewed By: t ctLj— Fin3ce Department Funding to pay this is in general fund reserves. The budget has $255,000 and an additional $260,502 is needed to pay this obligation. Attachments: County bill. Legal Review: Approved As To Form:___________________________ City Attorney Recommendation: Staff recommends approval of funding from the General Fund for payment of this invoice. Approved for Submittal By: CITY CLERK’S USE ONLY ü9Jôivi COUNCIL ACTION TAKEN paflment Director Resolution No. Continued To: Ordinance No. Referred To: Approved: Denied: Other: File:  COUNTY of McKINLEY 207 West HW, 3rd Floor Gallup, New Mexico 87305-0070 505-722-3868 TO: City of Gallup Admin. Office P.O. Box 1270 INVOICE NO. Gallup, NM 87305 15-1 62 DATE 07/28/2015 Patty Holland AUENTIQN:___________________ **PLEASE RETURN COPY WITH PAYMENT** City Share Adult Detention Center Prisoner CarE - 07/01/2014 Thru 06/30/2015 : FY-15 (1,718,337.29) County Share: 70% 1,202,836.10 1 City Share: 30% 515,501.19 515,501.19 Remit Payments to: Mckinley County Accounts Receivable P.O. Box 70 Gallup, NM 87305 Mck. Cnty Rev. Act# 231 -34044 TOTAL AMO $515,501.19 Contact: Sara Keller, Finance Director skeeler@co.mckinley.nm.us) 1 USTOMER WHITE - 2. VAEMIT COPY CANARY - 3 1’ FINANCE DEPARTMENT. PINK 4 SI  DiscussionlAction Topic 5 Asset Management Plan Phase I Proposal Stan Henderson, Public Works Director  CITY OF COUNCIL STAFF SUMMARY FORM \) L.7L’iI..I..iCJ r MEETING DATE: 25 AUGUST 2015 SUBJECT: Asset Management Plan Phase I Proposal DEPT. OF ORIGIN: PW/City Engineering DATE SUBMITTED: 19 August 2015 SUBMITTED BY: Stanley Henderson, Public Works Director Summary: Attached for the City Council’s consideration and approval is a proposal for asset management planning services by CDM Smith of Albuquerque, NM. This proposal will be Phase I in the development process for a City Asset Management Plan. To that end, it includes six tasks: • Task I Project Management, Data Review and Project Kick-off Meeting. — • Task 2 Compile Master Asset Inventory for Utilities and non-Utility Assets. - • Task 3 Define Critical Assets for Condition Assessment. - • Task 4 Develop Condition Rating Scale for non-Utilities Assets. And - • Task 5 Conduct Condition Assessment for non-Utilities Assets. - Follow up phases will address the remaining parts of the asset manage,jt.pJnning process. I Fiscal Impact: ReviewedBy: Zz4— c\Qoa1cA Fi1?nce Department None. City Council fully funded the asset management planning process in its Community Improvement Plan. 47 Enclosures: (1) CDM Smith ltr of 10 Aug 15 Legal Review: A ey 6 Recommendation:. Approve the proposal from CDM Smith for $71,822.00 plus NMGRT. i,] Approved for Submittal By: CITY CLERK’S USE ONLY ,‘J .. . COUNCIL ACTION TAKEN LS1%ç . Resolution No. Continued To: Ordinance No. Referred To: ,/4f... nager Approved: Denied Other: File: àDM Smith 6000 Uptown Blvd. NE, Suite 200 Albuquerque, NM 87110 tel: 505.243.3200 August 10, 2015 Mr. Stanley Henderson Public Works Director City of Gallup P.O. Box 1270 Gallup. New Mexico 87305-1270 Subject: Scope and Fee Proposal for Phase I Asset Management Plait Professional Services Dear Mr. Henderson: CDM Smith Inc. (CDM Smith) is pleased to submit this proposed scope of services and fee proposal to the City of Gallup (City) for Phase I Asset Management Plan professional services for certain capital assets under the management of the Gallup Public Works Department. The scope of services described herein has been developed based on previous meetings and conference calls between CDM Smith and the City, most recently on Thursday, July 30, 2015. The tasks CDM Smith will perform as part of this scope of work are as follows: Task 1 - Project Management, Data Review and Project Kick-off Meeting Task 2 Compile Master Asset Inventory for Utilities and non-Utility Assets - Task 3- Define Critical Assets for Condition Assessment Task 4- Develop Condition Rating Scale for non-Utilities Assets Task 5 Conduct Condition Assessment for non-Utilities Assets - The objectives, approach, deliverables and assumptions for each of these tasks is described in detail below. Task 1: Project Management, Data Review and Project Kick-off Meeting Objectives: CDM Smith will monitor and verify performance to manage delivery of the project scope within the authorized schedule and budget. The project team will familiarize themselves with the types and classes of assets to be included in the Asset Management Plan (AMP), the level of information currently available for each asset class, and the City’s goals and objectives for the project. The Project Kick-off Meeting will establish the points of contact, expectations, roles and responsibilities, milestones and schedule for this assignment. 0 WATER + ENVIRONMENT + TRANSPORTATION + ENERGY + FACILITIES CDM Smith Mr. Stanley Henderson August 10, 2015 Page 2 Approach: CDM Smith’s proposed project manager, Mr. Robert fowlie, P.E., wifi monitor project performance to the approved project scope and authorized schedule and budget. Project status will be communicated to the City’s project manager through regular telephone communications and monthly project status reports accompanying project invoices. The City has provided CDM Smith with multiple spreadsheets in electronic format that represent the current state of the City’s asset inventory. Inventory classes that are included in these inventories include the following: 1. Utility Assets a. Wastewater Expansions by year b. Water Expansions by year c. Water System Components d. Wastewater Treatment Plant e. Electrical System and Components 2. Non-Utility Assets a. Miscellaneous Buildings/Facilities (inc. Parks & Athletic Facilities) b. Streets/Curb/Gutter/Sidewalks c. Stormwater infrastructure d. Vacant Land (not included in this project) e. Vehicles and other Rolling Stock (not included in this project) CDM Smith will review the information provided in these spreadsheets and any additional asset inventory information made available by the City. A project Kick-off Meeting will be held to review the points of contact, expectations, roles and responsibilities, milestones and schedule for this assignment. Critical success factors shall be identified, and processes, activities and tasks defined to achieve these factors. Deliverables: • Monthly project status reports, delivered electronically in pdf • Meeting Agenda, delivered electronically in pdf format • Meeting minutes, draft and final, delivered electronically in pdf format Assumptions: • Project period of performance is 10 to 12 weeks • The Kick-off Meeting will be held at City offices and will be attended by CDM Smith’s Project Manager (PM) and Client Service Leader (CSL). Other project staff may participate via conference call. • City review of draft deliverables is assumed to be 5 working days 2DI5OSO9_Draft_GIIup_AM_ProposaI_Itr.doc CDM Smith Mr. Stanley Henderson August 10, 2015 Page 3 Task 2: Compile Master Asset Inventory for Utilities and non-Utility Assets Objective: CDM Smith will develop a master inventory of assets based on the information provided by the City. This master inventory will serve as the start of an Excel database for tracking assets, values, condition, criticality and other asset information. Approach: Begiiming with the inventory classes described above under Task 1, CDM Smith will define a revised, logical and manageable system of asset classes and sub-classes to facilitate future inventory, tracking and management. The asset inventory spreadsheets will be combined into a single master inventory in MS Excel format. The City has expressed the importance of retaining the current asset numbers in the spreadsheet inventories provided. With this in mind, CDM Smith will develop a nomenclature and numbering system to classify assets. The numbering system will allow assets currently listed by year (e.g., 2004 Water Expansion) to be re-classified in the future by physical asset (e.g., 2670 ft 12-inch HDPE transmission main, 2 12” butterfly valve, 12” pressure relief valve). - The draft master asset inventory will be provided to the City as an electronic deliverable and presented at the workshop to be held imder Task 3. Deliverables: • Workshop Agenda, delivered electronically in pdf format • Workshop minutes, draft and final, delivered electronically in pdf format • Draft Master Asset Inventory (MS Excel format) delivered electronically Assumptions: • CDM Smith will utilize spreadsheet inventories provided by the City prior to the date of this proposal, including the following files: o Governmental Asset Master List.xls o Proprietary Asset Master List.xls o CoG BUILDING ADDRESSES.xlsx • The Master Asset Inventory provided will be at the same level of detail and number of assets listed provided by the City in the referenced electronic files • City review of draft deliverables is assumed to be 5 work days Task 3: Workshop to define the non-Utility Assets for Condition Assessment Objective: Verify the draft master asset inventory and identify the assets to be evaluated in the Task 5 Condition Assessment. Given project time constraints, the initial focus of the condition assessment will be limited to a representative sample of the City’s non-Utility asset, i.e., those of primary concern for capital improvement planning. Approach: CDM Smith will initiate this task at a workshop with representatives from the City Public Works Department. The workshop will be held at City offices and will be 2O1SQaO9_Draft_GIIup_AM_PropoI_Itrdoc CDM Smith Mr. Stanley Henderson August 10, 2015 Page 4 attended by CDM Smith’s Project Manager (PM), Client Service Leader (CSL) arid a CDM Smith asset management specialist. The master asset inventory developed under Task 2 will be reviewed with City staff to confirm the categorization of assets and determine if additional asset classes or subclasses are necessary. The results of this discussion will be used to revise the master asset inventory. The CDM Smith team and staff from the Public Works Department will work together to identify a representative sample of non-Utilities assets for which to conduct the condition assessment in this initial phase of the Asset Management project. These assets may include those which have a high value/capital cost, poor performance/maintenance histories, or assets nearing the end of their expected useful lives. Deliverables: • Workshop Agenda, delivered electronically in pdf format • Workshop minutes, draft and final, delivered electronically in pdf format Assumptions: • One half-day workshop at City offices, followed by preliminary visual survey of assets to verify selection of the representative asset group Task 4: Develop Condition Rating Scale for non-Utilities Assets Objective: A rating scale will be developed to document the condition of assets for each non-utility asset class. The condition rating scale will provide a measure of the degree to which each asset is able to deliver the desired level of service. Approach: CDM Smith will develop the asset condition rating scale for each asset class based on existing industry examples, relevant asset management guidance and feedback from the City. A teclmical memorandum will be developed defining the condition rating scales and providing guidance for establishing asset condition based on visual evidence and anecdotal information received from City staff. The condition rating scales can be refined in the future to include measurements, testing results or other criteria. Industry examples and guidance used in development of the condition rating scales will be identified and referenced. Deliverables: • Draft and final Condition Assessment Technical Memorandum, delivered electronically thp and MS Word formats 2015 0009_Dra ft_G ails pAM_Proposal_Itt. do Smith Mr. Stanley Henderson August 10, 2015 Page 5 Assumptions: • City review of the draft technical memorandum is assumed to be 10 working days Task 5: Conduct Condition Assessment Objective: The condition of critical non-utility assets will be evaluated to provide a baseline condition assessment as preliminary guideline for capital improvement expenditures and plarmiltg for fiilure asset maintenance and replacement. Approach: CDM Smith will conduct the asset condition assessment using several lines of evidence and documentation including interviews with City staff, aerial photo evaluation, and visual inspection. A coding system will be used to record the specific line(s) of evidence utilized to assign a condition rating. Field surveys will be photo-documented to provide a record of asset condition at the time of inspection. Data will be compiled in the master asset inventory developed in Tasks 2 & 3. Deliverables: • Draft and final Master Asset Inventory with condition information for the assets identified in the Task 3 Workshop, delivered elecboincally in MS Excel format Assumptions: • Google Earth maps will be used for initial verification of roads, curb and gutter, sidewalks, signals and road signage for the selected transportation assets • Up to four man-weeks (160 hours) wifi be spent in the field performing and verifying the condition assessment for the selected non-utility assets • Concurrent with field surveys, CDM Smith field staff wifi conduct interviews with City Public Works staff regarding asset condition and recurring maintenance requirements • City review of draft deliverables is assumed to be 10 working days SCHEDULE CDM Smith will complete Tasks 1-5 within 10 weeks of receipt of notice to proceed. PROPOSED COST We proposed to complete this work, as outlined above on a time and materials basis with a not to exceed fee of, $71,822.00, exclusive of New Mexico Gross Receipts Tax (NMGRT). Detail of this proposed fee is provided on the attached spreadsheet. 2O15OODaftGaIIup_AM_PropoIjtr.doc CDM Smith Mr. Stanley Henderson August 10, 2015 Page 6 All work will be performed in accordance with the terms and conditions of the June 29, 2014 General Engineering Services Contract between the City and CDM Smith. Please contact us at (505) 243-3200 if you have any questions regarding this proposal. If this proposal is satisfactory, Please provide a purchase order referencing this proposal to serve as CDM Smith’s notice to proceed. We look forward to proceeding with this important asset management project at your convenience. Sincerely, Robert A Fowlie, P.E., BCEE Paul A. Karas, C.P.G, CHMM Principal/Senior Project Manager Vice President! Client Service Leader CDM Smith Inc. CDM Smith Inc. attachment cc: Vincent Tovar, City of Gallup Cara Wilson, CDM Smith File 201 0809_I] raft_I] allup_AM_Proposal_Itr. dot  C 0 0, 3 -Ti a a -v 0 a 0> C> to -Cx m ax —“H >-. a a a (0 a 3 a C US a 2 a0 I; 3 I— Sc r  ATTACHMENT 1 CDM Smith Fee Proposal - Gallup Phase 1 Asset Management Services CDM Smith City of Gallup Phase 1 Asset Management Plan Other Direct Charges Detail Copies, Color, Coj star, Mytars, 24X36 Airfare Per Diem Other Dimes Polng I$iI Project Tasks Solo Sass $1.35 $1.50 $1.00 $1.00 $0505 $145.00 es ea ea ea $ $ ml. day S Task 1 : Project Management, Data Review and Project Kick-off 250 0 0 0 76 0 280 0 $242 1.1 Project Management 100 76 $86 1.2 Data Review 50 $5 1.3 Project Kick Off Meeting 100 280 $151 Taskl:ComplleMasterAssetlnuentory 0 0 0 0 10 0 0 0 $10 2.1 compile Inventory Information 10 $10 Task 3: Define Critical Assets for Condition Assessment 150 0 0 0 24 1,500 280 0 $1,680 3.1 Workshop 100 1500 280 $1,651 3.2 Revised Asset Inventory and Criticality Rankings 50 24 $29 Task 4: Develop Condition Rating Scales for non-Utility Assets 300 0 0 0 23 0 0 0 $53 4.1 Draft Technical Memorandum 200 20 $40 4.2 Final Technical Memorandum 100 3 $13 Task5:ConductCondftlonAssessmentfornon-UtlljtlesAssets 400 0 0 0 60 0 2,000 20 $4,010 5.1 Analysis of Assets by Aerial Imafery 100 10 $20 5.2 FIeld Survey of A5snt Condition 100 40 2000 20 $3,960 5,3 Inventory with Condition Assessment of Critical Assets 200 10 $30 rota(Unks 1100 0 0 0 193 1500 2560 20 Ro(lCat $100 50 50 50 $193 $1500 $1293 $2900 $5996 6/812015 2015000n_GoIIap_AsseLM000gen,enLFee.,Isn  DiscussionlAction Topic 6 Resolution No. R2015-25; Water Trust Board #334 Loan Repayment Certification Vince Tovar, Gallup Water and Sanitation Director  CITY OF COUNCIL STAFF SUMMARY FORM GALLUP MEETING DATE: August 25, 2015 SUBJECT: Water Trust Board #334 Loan/Grant to the City of Gallup DEPT. OF ORIGIN: Utilities Administration DATE SUBMITTED: August 20, 2015 SUBMITTED BY: Vincent Tovar Summary: Staff is requesting authorization in the form of Resolution R2O15Certification of intent to repay any NM Water Trust Board Loan associated with NM Water Trust Board #334 for the planning, design and construction of Reach 27.7a and 27.13 of the Gallup Rural Navajo Water Supply Project, GRNWSP, (NGWSP Reach 27.7a and 27.13) component of the Navajo-Gallup Water Supply Project ) Fiscal Impact: Reviewed By: FinWjce Department If approved, it is anticipated that the funding structure would require a loan component of up to 40% of the awarded amount, with a 20 year term at a net effective interest rate of .25% (0% interest rate with an administrative fee component of Y4 of 1%) and the balance being in the form of a grant. Attachments: Resolution No. R2015- Legal Review: Approved As To Form:____________________________ City Attorney Recommendation: — Staff recommends approval of Resolution No. R2015 Certification of intent to repay any NM Water Trust Board Loan associated with NM Water Trust Board #334 for the planning, design and construction of Reach 27.7a and 27.13 of the Gallup Rural Navajo Water Supply Project Approved for S1L4Jrral By: /3 . f. /J \ CITY CLERK’S USE ONLY jjj1 /{. -A,i1 COUNCIL ACTION TAKEN De dment Director ‘ Resolution No. Continued To: Ordinance No. Referred To: tyManager Approved: Denied:  RESOLUTION OF THE GALLUP CITY COUNCIL RESOLUTION No. R2015- Certification of intent to repay any NM Water Trust Board Loan associated with NM Water Trust Board #334 for the planning, design and construction of Reach 27.7a and 27.13 of the Gallup Rural Navajo Water Stipply Project, GRNWSP. (NGWSP Reach 27.7a and 27.13) component of the Navajo-Gailtip Water Stipply Project WHEREAS, the City of Gailcip (City) is a formal participant in the Navajo-Gallup Water Stipply Project (Project) pursuant to Ptiblic Law 111-il as passed by Congress and signed by President Obama in 2009: and WHEREAS. pcirsuant to Public Latv Ill-li, and in conformance with the Repayment Contract by and between the City and US Bureau of Reclamation (Reclamation) No. 1 1-WC-40-435 executed Jantiarv 10,2012, the City is obligated to repay Project costs allocable to City: and WHEREAS. pursuant to Public Law 111-Il and in conformance with the State olNew Mexico Cost Share Agreement dated June 27, 2011 is obligated to provide a Project cost share of tip to $50,000,000: and WHEREAS, Gallup Regional Water System is also known as the Gallup Rural Navajo Water Stipply Project (GRNWSP) No. I through 13 and Navajo-Gallup Water Supply Project (NGWSP) Reach 13 and Reach 27. WHEREAS, the City and Reclamation executed a Financial Assistance Agreement No. Ri 1 AC40002 for the design and construction of the Gallup Regional Water System component of the Project valued at $55,744,896.00: and WHEREAS, the City through funding available from Reclamation and the New Mexico water Truist Board (WTB) has and continues the planning, design and construction of the Gallup Regional Water System: and WHEREAS, it is anticipated that past and future WTB funding of the Gallup Regional Water System will reduce the NM Cost Share as such reduces Reclamation Project construction costs and benefit City, proportionally reducing its repayment obligation: and WHEREAS, the City has been awarded WTB #334 Grant/Loan through the WTB for the construction of Reach 27.7a and 27.13 of the Gallttp Regional Water System in the amount of $2,577,100.00 (Grant) and $1,71$.067.00 (Loan): and WHEREAS, the WTB. as a prerequisite to execciting the WTB #334 Grant! Loan requires City to certify or otherwise pledge repayment of the WTB #334 Loan component ($1 ,7 1 8,067.00). NOW, THEREFORE, BE IT RESOLVED by’ the Governing Body of the City’ of Gallup that the City of Gallup hereby certifies its intent to repay the loan associated with WTB#334. and further resolves. that upon execution of the loan, shall budget sufficient fuinding to make payment in the fiscal year budgets for which payments are dtie tinder the terms and conditions of the executed loan documents. PASSED, ADOPTED AND APPROVED this day of August 2015, in duly called meeting of the Gallup City Council at which a quorum was present, at Gallup, New Mexico, by a vote of in favor opposed, and abstaining. Jackie McKinney, Mayor City of Gallup ATTEST: Alfred Abeita, City Clerk City of Gallup