City Council

Minutes of the Special Meeting of the Gallup City Council, City of Gallup, New Mexico, held in the Council Chambers at City Hall, 110 West Aztec Avenue, at 4:30 p.m. on Tuesday, January 26, 2016. 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 The Mayor and Councilors conducted a work session pertaining to the following item: 1. Growth Management Master Plan Update — Clyde (C.B.) Strain, Planning Director Ms. Ustick said the Growth Management Master Plan (GMMP) is required to be updated to be in compliance with State requirements. With the assistance of the Northwest New Mexico Council of Governments, the City obtained a State grant in the amount of $50,000 for the update. Although the completion of the update was due in December 2015, the State authorized a 90-day extension for the completion of the update as well as a renewal process by various State agencies. She commended the Steering Committee and the Planning and Zoning Commission for their time and contributions made in preparing the update. Mr. Strain said the Planning and Zoning Commission conducted an extensive review of the GMMP Update and sends a favorable recommendation to the Mayor and Councilors. The update will be presented to the Mayor and Councilors for final adoption of the plan on February 9,2016. Mr. Strain introduced Steve Burstein of Architectural Research Consultants, Inc. who provided a power point presentation of the GMMP Update. A copy of the power point presentation is attached hereto and made a part of these official Minutes. Mr. Burstein answered questions regarding employment data, priorities for annexation, the possible expansion of weatherization assistance programs, and a proposal from the 2009 Plan regarding a public referendum on an indoor arena. Discussion followed concerning the need to update the Parks and Recreation Master Plan from 2004 and additional improvements for enhancing the Sports Complex. MINUTES Special City Council Meeting — 1/26/2016 Page 2 Mr. Burstein asked the Mayor and Councilors to contract Mr. Strain if they have any changes or recommendations to the GMMP Update. There being no further business, the Work Session adjourned until the Regular Meeting at 6:00 P.M. Jackie McKinney, Mayor Approved 2/9/2016  CITY OF GALLUP GALLUP GROWTH MANAGEMENT MASTER PLAN UPDATE Summary Presentation to Gallup City Council January 26, 20 16 Workshop Prepared by Architectural Research Consultants, Incorporated PLAN UPDATE The growth management master CITY OF GALLUP Growth Management Master Plan Update plan is an official public document adopted by the City Council as a policy guide to decisions about the physical development of the community. It presents in a general way how leaders of the government want the community to grow in the ensuing 20-30 years Current plan was adopted in 2009 Gallup Growth Management Mastei Plan Update 2016 2 Z AZ GROWTH MANAGEMENT MASTER PLAN: ELEMENTS Land Use Economic Facilities Development Hazards Mitigation f Trails & Open Space Implementation Actions Utilities Housing Water Transportation New Plan Element Not Updated Updated Element Gallup Growth Management Master Plan Update 2016 3 Existing Conditions DEMOGRAPHIC TRENDS McKinley County and City of Gallup Historic Population: 1910-2010 80,000 74,798 71,492 City grew 70,000 60,686 every decade 56,536 60,000 since 1910 43,208 50,000 County 37,209 40.000 population 27 4 5 1 declined 30,000 23,641 3,400 20643 21 678 between 2000 and 2010 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 Source U.S. Census —City of Gallup McKinley County Gallup Growth Management Master Plan Update 2016 4 POPULATION DRIVERS: DEMOGRAPHICS City of Gallup has grown each decade for 100 years, including O adding nearly 1,500 persons 2000 to 2010 O toU.S.2014 Census Bureau estimates Gallup grew by -600 persons 2010 Increase of Native American population shows in-migration O particularly from Navajo Nation Births and birth rates have declined gradually in Gallup area and O more sharply in McKinley County since 1990 O Gallup had a comparatively young population in 2010, with median age of 3 1.9 years compared to 36.7 years for NM Gallup Growth Management Master Plan Update 2016 POPULATION DRIVERS: ECONOMICS 0 County employment has declined since 2008 Some major employers added jobs in recent years GIMC, El - Segundo and Lea Ranch mines, and Fire Rock Casino O Others lost jobs -Wal-Mart, RMCH, City, County, and P&M Coal Gallup is employment hub of county, strong in “3 l’s” travel, trade O and tourism retail, medical services, lodging (new hotels, - restaurants and Indian jewelry Gallup had substantial new building in I 990s and much of 2000s; O residential permits have not recovered since 2009; additional phases of existing subdivisions can build and proposed residential projects may develop Gallup Growth Management Master Plan Update 2016  fr:1’. :q POPULATION DRIVERS: ECONOMIC PROSPECTS O Gallup Navajo Gallup Water Supply Project proceeding, should reach in 2023, enabling growth and development O Widening U.S. 491 improves accessibility to north, to be completed within 2 years 0 Greater Gallup EDC promoting and coordinating target industries O Gallup Land Partners (GLP) energy logistics park looks promising O Film industry potential for growth in Gallup O Economic development incentives including LEDA,JTIP, IRBs 0 spending I 35 miles of hiking/biking trails in area spurs some tourism and may expand further Gallup Growth Management Master Plan Update 2016 - -- - cgUrx,anc7ntvr wtrt Existing Conditions POPULATION PROJECTIONS City of Gallup Projected Population: 2000-2040 High Range Projection: 1.2% annual rate Mid Range Projection: 0.6% annual rate Low Range Projection: -0.2% annual rate O 2015 Low Range 0 2015 Mid Range 0 2015 High Range 2020 2030 2035 2040 Gallup Growth Management Master Plan Update 2016 8 Land Use: Physical Constraints GALLUP AREA PHYSICAL FEATURES • Rocky terrain & steep slopes constrain development Hogbacks bottleneck to the east — Flooding risk along Rio Puerco and some tributary arroyos Gallup Growth Management Master Plan Update 2016 Land Use EXISTING LAND USE • Gallup gained 672 acres through the Rehoboth Annexation and —52 acres of new development over the past 6 years 1 City of Gallup ExIsting Land Use 2015 Update in Acres 111-19-15 Draft) pa Wthifl 2029 COy Lm,ts Rehebeth V5ithin 20151 Land Use Category 2CC9 2015 Differenco 4arneoatian City Limits Single Fam:Iy Residennal 1.1704 1.1847 143 57 1.1904 : .tdl;E&:’; —, Mobile Homes Duplaxes 2854 523 2030 523 -24 00 2930 523 - MuSt-Family Renidential 1025 1032 06 1032 1,0650 1.061 2 162 203 -. 1.1014 Public 6672 6750 IO8 6780 2015 Existing Land Use HospitalslMedical Clinics Schools 537 4454 558 4435 21 -tO 963 _,,i zi: _,558 5428 Churches/Quasi-Pubic 655 555 00 67 662 Cextery 419 419 00 ,,,,_j 419 Parks and Recreatonal Facilities 9203 9251 88 J,,_,,_926 1 Vacant 53268 02744 -524 4900 a Ribi ot way 1.5534 1.9350 417 665 I 2,0016 Total 10,0900 12,127.6 37.6 6724 12,600.0 Saarce ARC and City at Gallup analysis Small changes in arty hmits GPO resulted lea difference 0136 acres wthtn the 2009 baucdary Gallup Growth Management Mastep Plan Update 2016 10  Land Use FUTURE LAND USE Future Concept Land Use New Residential School 2009 City of Gallup Growth Existing Residential Open Spaces Management Master Plan: Business Parks and Recreation Public, Church, Cemetery Industrial, Warehouse 1,200-1,600 acres of new development land (+24-34%) over next 20 years U Hospital New Hospital Mixed Use Vacant U V / \ \ ,•- ,.\‘I. I •‘ • I ‘•. \ ‘ 2 : r N 1 2 •. • miles - ••‘.•‘• •s • Gallup Growth Management Master Plan Update 2016 Land Use ISSUES AND OPPORTUNITIES P&Z sttongly recommends Land Development Code update/overhaul clarity, downtown parking, - park dedication/fee-in-lieu, airport overlay, planned mixed use zone, planned unit development zone, reexamine all zone districts and zoning map to encourage in-fill Require master plans for large scale developments over 80 acres Extraterritorial planning, platting and zoning ‘ Annexation Priority Map updated Gallup Growth Management Master Plan Update 2016 2  Land Use LAND USE SECTORS ADDENDUM • Rehoboth Annexation Area encourage - annexation of remainder of subarea, mote detailed constraints mapping, mix of uses and phasing • Mendoza Road Area encourage master - planning with mix of uses and utilities improvements coordinated with City and property owners • Allison Bridge/Road Extension Area phased - road and bridge opens up new areas for development (north of freeway and south) and improves access to Old 66 and Mendoza Road area Jr - Gallup Growth Managent Master Plan Update 2016 13 Economic Development ISSUES AND OPPORTUNITIES Continuing needs to address area poverty, creation of jobs paying good wages, workiorce participation and preparation, and growing current sectors • Target industries creating base economy jobs identified by GGEDC: oil, gas, mining equipment, plastic products, warehousing and distribution, industrial machinery, food processing, and medical cluster development • Film industry guidance and policies promote film activities with incentives and permitting process • Update LEDA ordinance and guide application process • Downtown MRA and Arts and Cultural District Plans the plan - incorporates some of key recommendations Gallup Growth Management Master Plan Update 2016 14 Economic Development LzIzzzzz Initial Assessment MEDICAL CLUSTER [ Asset Mapping Stages Cluster Analysis! Cluster consists of: medical treatment, Feasibility Study prevention, research, and light manufacturing in Cluster .zz:zzz Development Coordination Gallup, NM: Medical Assets Marketing and Promotion 1 69.7% (IIh 12.3% noreen peecletlon In Motholnt Ceririty of adolte in MrKlelm County Projects and network of federal, state are living with diabetes Programs local and beret prorraitra r.. poeclalierlef Nau* Nation . - - 2X state arerago for alcohol desrhs 4L &pnrfenro • .-— ::- 4 pi,tic health outposts 16 behnalorat health olives 200,000 2 mole, hospitals 18 addictIon & ovansnllng renters benaOd by Gallup es rogooal hcalthoare rob GIMC: 250,000+ 5800 outpatIents annually inpatient admitsicos populatIon In poPup oradtnt area rcgt000l corrontercol mother center : 0 RMCH: Top 4 $557M American Hospital Aoraolatlon; Forte, McGraw planned 51MG replacement 31..9 Galtup median age yeuocr tSar NM or US average — eoaof for Uclstoodkrg Hospital lrunatmnnr projnctlon . 53 pninrert care phyitbnu loll ii raen.cu at Ut Galap ,cuiof to taco, progeaeumicii Cr cerkUoree rral&ng W V 24 pin I vn slices W ZarC.nnurOuiC Frcrams 3,032 tb 8 ama research mstltarbns & sporisonu indudir5 lohnw Hopkkts Blnonrberg school 01 Pwhlk Health 89 lrealtycarc & sipperr r,etworrr of oral ee000roic Unluorsirn of Anuana dcveloprnrnrt suppers UnIverSity Of Colorado •6. GGEDC, GMCC0C, NWNMCOG, MbA, Malebtrect beD a edGe Supporting Economic Development Gallup Gi owth Management Master Plan Update 2016 5 Economic Development — FILM ORDINANCE Designate City point person (community services coordinator) to guide film producers through process, coordinate with state, process applications Application form should include film project description, liability requirements, and departmental review and approval process • Place form on City web site for convenience • Enhance film production marketing Gallup Growth Management Master Plan lJpdate 2016 16 Economic Development ENERGY LOGISTICS PARK Gallup supports development 3,000 acre GLP site could be developed using Gallup utilities, streets, and other services Site of potential energy logistics park Gallup Growth Management Master Plan Update 2016 17 - ,nr,rsm,t,ronezxrzrz’trVArr 2n ro3ZtrL Z.tv.j- - Trails & Open Space MAP AND PRIORITY PROJECTS UPDATE Gallup and Surroundings Trail Plan Distances IMiles) Neighbor- Safe Routes Urban hood Prinnitioe to Schools CITY - - Existing 24 93 6 07 204 062 33.66 Proposed Total Miles 2070 45,63 all 11.18 172 3.76 64a 7.10 34.01 67.67 tororo 04 turd Manaoamant • Eel0009 Opan Spur. Poffinual Open Space Trar6 P0,0mG Neahrofl’. Troll laud 4. P004mg •ClryPCrk 4. Parental COUNTY OtDetafl0e PoIrOrprA •Scflnxl — faGag Urben lIldAn Trust Existing 417 31.21 30.38 end Allotment —— — Prurolad Pnnr,lOa Proposed 1995 115 1903 0.53 41.46 CtyUmPu Total Mites 24.12 1.10 51.04 0.53 76,84 Z2 Gallup Growth Management Master Plan Update 2016 18  Housing DATA AND POLICIES UPDATE CDY OF GALLUP GETTING GALLUP GROWING NUISANCE ABATEMENT BLIGHT DEMOLmON GHA, NRHA, HUD, USDA, MFA, VA IMI-)OVi. REPAIR REHAB GRANTS AND LOANS OVERALL QUALITY REPAIR REVOLV1NG REHAB LOAN FUND NEiGHBORHOOD CLEAN-UP EFFJOENCY I PIROVEMENT GRANTS/ LOANS HOUSING TRUST FUND ASSURE OCCUPIED HOUSING IS SAFE SANITARY INCREASE OF SECTION 8 RENTAL SUBSIDIES :iPROVE REVOLViNG MORTGAGE LOAN FLING AVA’LA3ILITh’ LANDBANKING / M:N:-HOMESTEAD-NG LOCAL NON-PROFITS, DEVELOPERS & CSi:ONS FINANCIAL LITERACY, HOMEBLrYER COUNSELING NCREASE MXED USE HOUSING DOWNTOWN IMPROVE ASSSTANCE,’ DEVELOPMENT CAFA) CREATIVE LEASING & DESIGN Ee UCRO UNITS) LAND DONATION NEW AFFQRDAIT,E HOUSING INCREASE NEW MARKEt RATE HOLOING MARKE-i LOCAL, REGIONAL LENDERS AOT;VTY JOB CREATION IMPROVE WAGES CONVERT COMMUTERS INTO RESIDENTS ATTRACT RETIREES DEVELOPERS, BUILDERS (FOR PROFIT) Housing Strategy Options: Possible Steps and Key Players ECONOM DEVELOPMENT ORGS Galltip Growth Management Master Plan Update 2016 19 - Facilities and Parks: Condition Assessments INVENTORY OF CITY BUILDINGS AND PARKS •:• Over 1/2 million square feet and I ,220 acres • Coordination with City CIP and with Asset Management 44 locations with buildings and 2 I parks Planning + Condition assessments were conducted by City staff Average rating is 2.9, a little below “fair” • 889 acres are in parks (green) Gallup Growth Management MaTtel Plan Update 2016 20 - - -  Facilities and Parks: Parks & Rec Survey COMMUNITY SURVEY Weighted average to indicate highest projected use frequency Walking paths The City conducted a survey of Concerts in the parts city parks users in August and Family gathering (BBO. picnic tables. benches) September, 2015 Gardens. including communily gardens 219 surveys responses were Summer programs received (39 paper and 180 on Playground equipment Bicycling (trails, cross country, or bike park) line) by the end of September Exercise equipmentl course 2015 Outdoor team sports fields (baseball, soccer, etc.) Basketball courts Tennis courts Dog walid run Golf faclldes Ga))up Growth Management Master P)an Update 20)6 2 Water WATER SUPPLY CURRENT AND ALTERNATIVE SOURCES - I Current ground-water supplies significantly depleted Gallup has an application in to the state engineer to develop a G-22 well field that would supply the city with 5,000 AFY 1 Gallup is in collaboration with the Navajo Nation and Jicarilla Apache Tribe developing the Navajo Gallup Water Supply Project Will supply the city with 7,500 AFY Project expected to deliver water to Gallup in 2023 Growth Management Master Plan Update 2016 22 - - .rtrnzs-cr::. :rz;ccu san ...  Utilities CONDITIONS AND RECOMMENDATIONS K Water I Replace aging pipes and components of treatment plant; amend utility extension policy, conduct rate study I Sewer and Treated Effluent I Replace aging pipes and components of treatment plant; evaluate pros and cons of regional wastewater treatment; continue to remedy problem of odor from treatment plant; expand treated effluent system I Electric Continue to improve transmission and service lines, promote energy conservation I Broadband I Establish fiber optic redundancy; expand City fiber optic network I Solid Waste I Continue curb-side pick up; promote increased recycling GUupGIowthManagementMastf?r IanUpdate2OI6 23 Hazards Mitigation CONDITIONS AND RECOMMENDATIONS S Promote disaster-resistant community S Continue to map and and notify public of hazards; ensure building and zoning code enforcement; water conservation; drought planning S Emergency Response Review and update emergency response plans, evacuation plans and warning systems, continue training response team members S Flooding and Wildfire S Map high risk areas and distribute information to public; identify and mitigate risks to critical public facilities S Man-made hazards I Engage railroad personnel in setting a hazardous materials notification procedure Gallup Growth Managenioit Mastei Plan IJ1cJr 2016 24 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, January 26, 2016. 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 Special and Regular Meetings of January 12, 2016. Councilor Palochak made the motion to approve the aforementioned Minutes. Seconded by Councilor Kumar. Roll call: Councilors Palochak, Kumar, Garcia, Landavazo, and Mayor McKinney all voted yes. Presented to the Mayor and Councilors were the following Discussion/Action Topics: 1. Ordinance No. S2016-1; 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, — Director, Gallup Water and Sanitation Director Mr. Tovar said staff is requesting authorization to proceed with the closing documents for Water Trust Board (WTB) Loan/Grant Funding No. 334 in the amount of $4,295,167. 40% of the awarded amount is for the loan component of the agreement in the amount of $1,718,067. 60% of the awarded amount is for the grant component of the agreement in the amount of $2,577,100. The proceeds from the Water Project Fund Loan/Grant Agreement will provide funding for the planning, design and construction of Reach 27.7a and 27.13 of the Navajo Gallup Water Supply Project (NGWSP). With the use of an overhead map, Mr. Tovar provided an overview of the work to be done for both reaches of the project. Discussion followed concerning the possibility of property owners being able to tap into the Sacred Heart water line, the improvements planned for the water tank at Red Rock Park, and the discussions with the Bureau of Reclamation concerning the City’s request to cap its costs for the NGWSP. MINUTES Regular City Council Meeting — 1/26/2016 Page 2 Councilor Landavazo made the motion to adopt Ordinance S2016-1. Seconded by Councilor Palochak. Roll call: Councilors Landavazo, Palochak, Kumar, Garcia, and Mayor McKinney all voted yes. 2. Approval to Convert Existing Part-Time Judicial Aide to Full-Time Status at Municipal Court Kb Abeita, Human Resources Director — Ms. Abeita said the workload at Municipal Court has significantly increased during the past two years due to more court filings and citations being processed. There have also been new policies implemented for the timely collection of fees, fines and assessments. Based on the increased work load, Ms. Abeita recommended converting an existing part-time Judicial Aide to full-time status. The additional fiscal impact will be $10,624.27 for the remainder of the fiscal year. The source of funds to be used for the additional impact will be covered by increased Municipal Court revenues. Mayor McKinney commended Municipal Judge Grant Foutz and his staff for their work in collecting the outstanding fees that are owed to the City. Councilor Garcia made the motion to approve the conversion of an existing part-time Judicial Aide to full-time status at Municipal Court. Seconded by Councilor Kumar. Roll call: Councibors Garcia, Kumar, Landavazo, Pabochak, and Mayor McKinney all voted yes. 3. Approval of Intergovernmental Project Participation Agreement and Security Agreement with the New Mexico Economic Development Department for El Morro Theater Rick Snider, General Services Director — Mr. Snider said the proposed participation agreement will provide $100,000 to the City for various projects at El Morro Theater, including the creation of two part-time positions. The funds are restricted for use at the historic theater and cannot be used for the Events Center. Mr. Snider also recommended utilizing the funds for decorative curtains and LED aisle lighting in the theater. The recommended improvements should be completed within a couple of months. Councilor Landavazo made the motion to approve the Intergovernmental Project Participation Agreement and Security Agreement with the New Mexico Economic Development Department for El Morro Theater. Seconded by Councilor Garcia. Roll call: Councilor Landavazo, Garcia, Palochak, Kumar, and Mayor McKinney all voted yes. MINUTES Regular City Council Meeting — 1/26/2016 Page 3 4. Resolution No. R2016-10; Authorizing the Investment Grade Energy Audit and Project Proposal Agreement Between Energy Control, Inc. / Opterra Energy Services and the City of Gallup Richard Matzke, Director, Gallup — Electric Department Mr. Matzke said Energy Control, Inc. (ECI) submitted a proposal to the City of Gallup to provide an investment grade energy audit of City owned facilities. The proposed project is a continuation of work initiated in 2011 as part of a joint venture with the Northwest New Mexico Council of Governments. ECI also recently completed a $2.4 million project with Mckinley County. John McAllister of ECI said the proposed work will be done under the New Mexico Statewide Purchasing Agreement. He presented a power point presentation on the City of Gallup Efficiency Based Infrastructure Upgrade Programs. A copy of the power point presentation is attached hereto and made a part of these official Minutes. Discussion followed concerning the term “guaranteed savings” of the proposed program; the $2.4 million project with Mckinley County; the City’s practice of replacing worn-out equipment and fixtures with high efficiency equipment and fixtures; the time- frame and the process for completing energy saving measures if the City proceeds with certain recommendations from the audit; the requirement for purchasing the energy efficient materials from ECI for the Guaranteed Savings Program; options for the City to conduct certain projects on its own, to solicit bids for certain projects based on the results of the audit or to proceed with certain projects under the Guaranteed Savings Program; the procurement process under the Statewide Pricing Agreement; a third party review to be conducted by the New Mexico Energy, Minerals and Natural Resources Department of the audit results; and the City’s no-payment obligation under the proposed Investment Grade Energy Audit and Project Proposal Agreement should ECI and the City execute the Guaranteed Utility Savings Contract. By executing the Guaranteed Utility Savings Contract, it will allow the cost of the audit to be rolled into the funding mechanisms of the Guaranteed Utility Savings Contract. Councilor Kumar made the motion to approve Resolution No. R2016-10. Seconded by Councilor Landavazo. Roll call: Councilors Kumar, Landavazo, Palochak, Garcia, and Mayor McKinney all voted yes. 5. Fiscal Year 2016 Lodger’s Tax Funding for Events — Patty Holland, Chief Financial Officer Ms. Holland presented the request from Zia Rides for lodger’s tax funding in the amount of $5,000 for the 24 Hours in the Enchanted Forest event. The request has been MINUTES Regular City Council Meeting — 1/26/2016 Page 4 reviewed and approved for funding by the Lodger’s Tax Advisory Committee. Ms. Holland said the request for lodger’s tax funding for this event was previously approved by the Mayor and Councilors months ago; however, there has been a change in the person responsible for organizing the event, therefore a new application for funding was required to be submitted for approval. Councilor Landavazo asked about the requirement for the new application for funding. Ms. Holland said the new application will require the new organizer of the event to abide by the City’s lodger’s tax guidelines. Councilor Palochak made the motion to approve the lodger’s tax funding for events as presented. Seconded by Councilor Garcia. Councilor Palochak, Garcia, Landavazo, and Mayor McKinney all voted yes. Councilor Kumar abstained. Motion carried. 6. Resolution No. R2016-9; 2nd Quarter Fiscal Year (FY) 2016 Budget Adjustments and Report of Actuals Patty Holland, Chief Financial Officer — Ms. Holland presented the proposed Resolution which encompasses all budget changes processed October 1, 2015 through December 31, 2015. She provided an overview of the Report of Actuals showing cumulative activity as well as the budget changes for the first quarter. Ms. Holland also presented a mid-year budget proposal for the funding of items not included in the original FY 2016 budget. Ms. Holland answered questions regarding the budget adjustments for the Customer Care phone and website system improvement; budget investment income; the data shown under Joint Utilities in the Report of Actuals; and the amounts that were overlooked and missed during the budget preparation process. Discussion followed concerning the amounts that were overlooked during the budget preparation process for FY 2016; the City’s high expenses for telephones, cellphones, T-1 service and group insurance; and the need for accurate budget reporting. Ms. Holland explained the changes that are going to be made in preparing the budget for FY 2017. She is also working on a 10-year cash balance analysis for all funds, cleanup work is being done on the bond funds and a financial policy and procedures manual is being developed. Mr. Snider said the City is locked into a long-term contract with CenturyLink for services set at fixed prices; however, there will be more options available in the next fiscal year to address the City’s costs for telephones and related services. For the upcoming budget preparations for FY 2017, Mayor McKinney asked for a true MINUTES Regular City Council Meeting — 1/26/2016 Page 5 picture of the City’s cost of operation. He said accurate information is needed in order for the Council to properly plan and prepare for the City’s financial future. Following discussion, Councilor Palochak made the motion to approve Resolution No. R2016-9. Seconded by Councilor Kumar. Roll call: Councilors Palochak, Kumar, Garcia, Landavazo, and Mayor McKinney all voted yes. Comments by Public on Non-Agenda Items None. Comments by Mayor and City Councilors Councilor Palochak reminded everyone to yield to emergency vehicles while driving. She also invited everyone to McKinley County/Gallup Day at the Legislature on Thursday, January 28, 2016. Councilor Landavazo encouraged everyone to “keep believing, keep building and to support Gallup.” Councilor Kumar asked Stan Henderson, Public Works Director, for an update of the City’s Curb and Gutter Replacement Program. Mr. Henderson said he is preparing the raw data in a format to be presented to the Mayor and Councilors around budget time. The program is currently suspended at this time due to the cold and inclement weather. Ms. Ustick said $500,000 was allocated in the CIP for the Curb and Gutter Replacement Program for this fiscal year; however, staff needs to submit recommendations to the Mayor and Councilors for their consideration for next fiscal year’s program. Ms. Ustick said the recommendations will be presented to the Mayor and Councilors separately from the CIP process within the next couple of months. Discussion followed concerning the problems staff is encountering with the program, such as the lack of contractors bidding on the projects, determining priorities for the program and block construction strategies as a way to comply with the Americans with Disabilities Act (ADA) transition plans imposed by state and federal governments. Councilor Garcia also encouraged everyone to attend McKinley County/Gallup Day at the Legislature. She said Jackson Gibson, Jeff Kiely, Tawnya and Shawndey Gomez, Ray Welch, Ralph Richards, Ryan Dashner, Niles Thomas, Wade Bell, Benson Ndolo, John Dowling, and Dr. Bruce Tempest will be honored at the Legislature. Mayor McKinney said the City will need to see how it fates with its capital outlay requests during this year’s 30-day session of the Legislature. He said the City will need to recognize the financial trouble that is anticipated for the State next year as gas and oil revenues have vastly declined. Since there are differences in both legislative MINUTES Regular City Council Meeting — 1/26/2016 Page 6 chambers and amongst party lines, Mayor McKinney said he will carry a message to encourage all legislators to form a consensus on important issues. Comments by City Attorney and City Manager Mr. Kozeliski recommended proceeding with concrete work when the weather warms up. There being no further business, Councilor Palochak made the motion to adjourn the meeting. Seconded by Councilor Garcia. Roll call: Councilors Palochak, Garcia, Kumar, Landavazo, and Mayor McKinney all voted yes. Jackie McKinney, Mayor Approved 2/9/2016  1/26/2016 Gallup Energy Efficiency Assessments COG I Green Horizon Evaluation COG I Energy Control > Individual Building Surveys Budget and Building Level Energy Use and Cost assessment > Identified Lighting, Weather-sealing, Water eff, DHW, and other EEM > Streetlights opportunities > Water treatment and pumping Recommended policy and planning approaches r Wastewater treatment i- Limited evaluation of actual EEM > Building Level Benchmarks and cost and savings viable efficiency targets > Confirmed excellent target EEMs > Utility rate analysis 1  1/26/2016 Program Energy And Cost Savings Energy Use Savings (BWISq Foot) Energy Cost and Cost Savings Current Energy Use Intensity (BTU!Sq Foot) Currenty Energy Costs’r $1,083,000 Future$1 5776 172 72% Current Greenhouse Gases by Services (pounds) Streetights ___ 11,260,055 Water I WW 12,386,043_— 38% 4 ) Current GHG Total .Faciltities 32 million pounds ____— g,185g7g 28% 3  1/26/2016 Facility Upgrades • High Eff Boilers and furnaces • Lighting • Exterior and parking lighting • Occupancy/vacancy sensors • Domestic Hot Water heaters ‘lhc I .i1ur I rarnid • Rooftop units • Pool HVAC systems ai A • Windows ., tAEfficIsflcy LJfr • Meters and submeters r Conservation Energy a Water Supply & Treatment System Opportunities • Pumping Optimization • Premium efficiency motors • Variable Speed Drives .1 • Treatment System efficiency and control upgrades • Hydro electric evaluation • Back up generators and smart grid integration 5  1/26/2016 Vehicle Fleet Opportunities • Alternative fuels • Natural Gas • Electric • Hybrids Gallup Area • fleet Management • GIS • Idling • Scheduling I A N Solar and Renewable Energy Evaluation t %4. 7  1/26/2016 Next Steps- Execute IGA Agreement • ECI proposes performing an IGA 11ii I IR(f\ P\r1iy)id under NM State Pricing Agreement • —400,000 Sf .r8/Sf = $71,000 +GRT (includes streetlights, water!W’vV and fleets) Al s,., .A1t 5S Energy • IGA effort spans four months • Integrate recommendations with Efficiency Lu Capital Improvement Program • Prioritize • financing Choices El Discussion Questions and Comments John McAllister Scott Stevens Energy Control, Inc. Energy Control, Inc. Regional Sales Manager Business Development (505) sgo-2888 work (505) 263-4753 Mobile (505) 366-8703 Primary 977 72 H: mc 303) 956-8492 Mobile ,rn 2600 American Rd SE, Suite 360 2600 American Rd. SE Suite 360 Rio Rancho, NM 87824 Rio Rancho, NM 87124 2600 American Rd. 5ERio Rancho, NM 8... www.energyctrl.com w’ww.opterraenergy,. 9