City Council

Minutes of the Regular Meeting of the Gallup City Council, City of Gallup, New Mexico, held in the Council Chambers at Gallup City Hall, 110 West Aztec Avenue, at 6:00 p.m. on Tuesday, June 13, 2017. 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, Councilor Also present: Maryann Ustick, City Manager George Kozeliski, City Attorney Mayor McKinney recognized Bill Lee, McKinley County Commissioner and David Conejo, Chief Executive Officer, Rehoboth McKinley Christian Health Care Services (RMCHCS), in the audience. Presented to the Mayor and Councilors for their approval were the Minutes of the Regular Meeting of May 23, 2017, Special Meeting of May 26, 2017 and the Special Meeting of May 30, 2017. Councilor Palochak made the motion to approve the aforementioned Minutes. Seconded by Councilor Garcia. Roll call: Councilors Palochak, Garcia, Landavazo and Mayor McKinney all voted yes. Councilor Kumar abstained. Motion carried. Presented to the Mayor and Councilors for their approval were the following Discussion/Action Topics: 1. Request for Street, Alleyway and Parking Lot Closures and Request for a Special Dispenser’s Permit for the Annual Freedom Ride, Flight and Cruise Event to be Held Beginning Friday, July 28, 2017 Steve Gurley and — Francis Bee Mr. Gurley presented the requests and an overview of the activities to be held during the entire event. He also requested the closure of Coal Avenue from Sixth Street to Eighth Street and Seventh Street from Highway 66 to Aztec Avenue for the car show which was omitted from the event permit. Discussion followed concerning the event in previous years and how it has expanded due to the increased participation. Mr. Lee also provided information on the sponsorship of the event by New Mexico Oil and Gas. MINUTES Regular City Council Meeting — 6)1312017 Page 2 Councilor Landavazo made the motion to approve the request for street, alleyway and parking lot closures and request for a special dispenser’s permit for the Annual Freedom Ride, Flight and Cruise Event to be held beginning Friday, July 28, 2017 and to amend the event permit to include the closure of Coal Avenue from Sixth Street to Eighth Street and Seventh Street from Highway 66 to Aztec Avenue for the car show. Seconded by Councilor Palochak. Roll call: Councilors Landavazo, Palochak, Garcia, Kumar and Mayor McKinney all voted yes. 2. Request for Lower Parking Lot Closure at the Courthouse Plaza for the Gallup Native Arts Market to be Held August 10-12, 2017 Ben Welch, — Community Services & Event Coordinator and Jennifer Lazarz, Tourism & Marketing Manager Ms. Lazarz presented the request for the closure of two parking lots for the event. Mr. Welch provided information on the logistics of the event. He also recognized Lonn Parker and Aaron Anderson in the audience who will be managing the Gallup Native Arts Market. Discussion followed concerning the hours of operation of the market, the number of artists that will participate at the market, the work that was done on a concho belt by some of the participating artists and holding the market as a complementary event to Inter-Tribal Indian Ceremonial. Councilor Kumar made the motion to approve the request for the lower parking lot closure at the Courthouse Plaza for the Gallup Native Arts Market to be held August 10-12, 2017. Seconded by Councilor Garcia. Roll call: Councilors Kumar, Garcia, Landavazo, Palochak and Mayor McKinney all voted yes. 3. Ordinance No. C2017-6; An Ordinance Creating a Gross Receipts Investment Policy (GRIP) George Kozeliski, City Attorney — Mr. Kozeliski presented the proposed Ordinance which allows developers to finance city infrastructure on large-scale projects by recouping their costs by offsetting gross receipts tax over a period of time. In order for the developer to recoup their costs under the proposed Ordinance, each development project would need to be submitted to the Mayor and Councilors for approval under certain terms and conditions that will be established in a formal agreement between the developer and the City. For qualified GRIP projects, the City shall pay the developer up to 75% of the City’s share of gross receipts taxes directly attributable to sales from the new business. The percentage of gross receipts taxes to be refunded to the developer shall be specified in the formal agreement. Discussion followed concerning the business qualifications to be considered as GRIP projects under the proposed Ordinance. MINUTES Regular City Council Meeting — 6/13/2017 Page 3 Following discussion, Councilot Palochak made the motion to adopt Ordinance No. C2017-6. Seconded by Councilor Landavazo. Roll call: Councilors Palochak, Landavazo, Kumar, Garcia and Mayor McKinney all voted yes. 4. Approval and Acceptance of the Local Liquor Excise Tax Accountability Report for 1st Quarter Calendar Year 2017 Lori Parra, JSACC Program — Manager, Community Services Director, McKinley County Ms. Parra presented an updated report which summarizes the use of liquor excise tax funds by local programs and agencies during the first quarter calendar year 2017. The updated report includes the information requested by the Mayor and Councilors at the last regular meeting. Councilor Kumar recommended the tracking of information pertaining to the number of persons admitted to the Gallup Detox Center from Gallup Indian Medical Center. Councilor Garcia made the motion to approve and accept the Local Liquor Excise Tax Accountability Report for 1st Quarter Calendar Year 2017. Seconded by Councilor Kumar. Roll call: Councilors Garcia, Kumar, Landavazo, Palochak and Mayor McKinney all voted yes. 5. Resolution No. R201 7-1 3; Joint Resolution with McKinley County Directing the Allocation and Distribution for Fiscal Year 2018 of Liquor Excise Tax Revenue Received Maryann Ustick, City Manager — Ms. Ustick presented the proposed Joint Resolution on how the City and the County will use projected liquor excise tax funds. The available amount of liquor excise tax funds to be used in FY 2018 is estimated to be $1.6 million. The proposed Joint Resolution includes the following recommendations: $1,100,000 to the City ($800,000 for the operation of the Gallup Detox Center and $300,000 for the City’s Community Service Aides); $300,000 to the County ($200,000 for the JSACC program and $100,000 for the County’s DWI program); and $200,000 to the Jail Authority Board for the in-house alcohol and drug treatment program at the Adult Detention Center. Mr. Conejo addressed the Mayor and Councilors to request inclusion of RMCHCS during the allocation process of liquor excise tax funds. He expressed concerns with the distribution of $1.6 million of liquor excise tax funds in the community while RMCHCS, one of the largest providers in social rehabilitation, is excluded from funding consideration. Mr. Conejo said RMCHCS has had to make drastic cuts in their expenses and are not impervious to needing help. Mr. Conejo also addressed the comments he received about McKinley County residents being unable to get into their rehabilitation MINUTES Regular City Council Meeting — 6/13/2017 Page 4 program because the program is at capacity all of the time. He said the program accepts people across the State since the State is paying for the treatment costs, If priority is given to local residents, there has to be participation in paying for the treatment costs at the local level. Mayor McKinney said the Navajo Nation President committed $300,000 for treatment services at the RMCHCS facility. Mayor Mckinney also said the City has provided Behavioral Health Investment Zone (BHIZ) funding for two staff members at the facility. Mayor McKinney said the City’s situation with the distribution of liquor excise tax funding is that the funding is still not covering 100% of the City’s cost in providing services. Ms. Ustick said the BHIZ budget for the next fiscal year is still being prepared. The proposed budget will include some funding for RMCHCS. Councilor Kumar made the motion to approve Resolution No. R201 7-13. Seconded by Councilor Landavazo. Roll call: Councilors Kumar, Landavazo, Palochak, Garcia and Mayor McKinley all voted yes. 6. Resolution No. R2017-16; A Resolution Requesting the Completion of the Gallup Indian Medical Center Relocation Project Mayor Jackie McKinney — Mayor McKinney presented the proposed Resolution requesting the Indian Health Service (IHS) to complete plans regarding the relocation of the Gallup Indian Medical Center as contemplated and approved by the federal government. IHS chose to accomplish relocation within the city limits of Gallup and selected a site after considering a total of ten potential sites. Mayor McKinney said the City is prepared with its infrastructure to support the site chosen by IHS. Councilor Palochak made the motion to approve Resolution No. R2017-16. Seconded by Councilor Kumar. Roll call: Councilor Palochak, Kumar, Garcia, Landavazo and Mayor McKinney all voted yes. 7. Resolution No. R201 7-1 4; Condemnation of Certain Real Property Located at 309 East Pershing Avenue Clyde “C.B.” Strain, Planning and — Development Director Mr. Strain presented the proposed Resolution as well as the code enforcement history pertaining to the property. A major drug bust recently took place at the property. The structure was boarded up and was broken into by individuals who started a fire inside the building. City staff has rendered the building to be unsafe, inhabitable and a threat to the public’s health, safety and welfare. The property owners have been notified about the MINUTES Regular City Council Meeting — 6/13/2017 Page 5 code violations and deficiencies that exist at the property; however, the property owner has not taken action to repair or remove the damaged structure. If the Mayor and Councilors approve the proposed Resolution, the property owner will have 10 days to comply with the provisions set-forth in the Resolution or to file an appeal to the Mayor and Councilors of the action taken. If the owner does not respond in 10 days, the City will solicit bids to demolish the property. Mayor McKinney asked there was anyone in the audience representing the property at 309 East Pershing Avenue. There was none present. Councilor Garcia made the motion to approve Resolution No. R2017-14. Seconded by Councilor Kumar. Roll call: Councilors Garcia, Kumar, Landavazo, Palochak and Mayor McKinney all voted yes. 8. Approval of Employment Agreement with Curtis Hayes as New City Attorney George Kozeliski, City Attorney — Mr. Kozeliski presented the proposed Agreement with Mr. Hayes to be the new City Attorney. Mr. Hayes will begin employment no later than July 17, 2017 and will earn an annual salary of $105,000. Mr. Kozeliski said he will leave City employment no later than July 31, 2017. Mayor McKinney introduced Mr. Hayes who was present in the audience and welcomed him to the City of Gallup. Councilor Palochak made the motion to approve the Employment Agreement with Curtis Hayes as the new City Attorney. Seconded by Councilor Landavazo. Roll call: Councilors Palochak, Landavazo, Kumar, Garcia and Mayor McKinney all voted yes. 9. Addendum to Veterans’ Center Management Agreement — George Kozeliski, City Attorney Mr. Kozeliski presented the Addendum to the Veterans’ Center Management Agreement to reflect the relocation of the Center to a City-owned facility (the former Ford Canyon Senior Center) at 908 East Buena Vista Avenue. All other terms and conditions remain the same. Councilor Palochak made the motion to approve the Addendum to the Veterans’ Center Management Agreement. Seconded by Councilor Kumar. Roll call: Councilors Palochak, Kumar, Garcia, Landavazo and Mayor McKinney all voted yes. MINUTES Regular City Council Meeting —6/13/2017 Page 6 10. Vacation of Electric Easement on Site of New Veterans’ Cemetery — George Kozeliski, City Attorney Mr. Kozeliski presented the proposed vacation of the electric easement at the site of the new Veterans’ Cemetery. The electric lines will be relocated underground to run outside of the cemetery site. Mr. Kozeliski also provided information on the removal of the structures at the property west of the cemetery. Councilor Garcia made the motion to approve the Vacation of the Electric Easement at the site of the new Veterans’ Cemetery. Seconded by Councilor Kumar. Roll call: Councilors Garcia, Kumar, Landavazo, Palochak and Mayor McKinney all voted yes. 11. Budget Adjustment for Legal Department — George Kozeliski, City Attorney Mr. Kozeliski presented the request for a budget adjustment in the amount of $10,000 to cover the shortage in the Legal Department’s professional services line item for the prosecution and defense of cases in Municipal Court. The professional services account was reduced from $238,000 to $184,000 during this past year. Councilor Palochak made the motion to approve the budget adjustment for the Legal Department as presented. Seconded by Councilor Garcia. Roll call: Councilors Palochak, Garcia, Kumar, Landavazo and Mayor McKinney all voted yes. 12. Construction Contract Award and Budget Adjustment for Allison Tap 115 kV Pole Replacement Project Richard Matzke, Director, Gallup Electric — Department Mr. Matzke said the Allison Bridge Project requires the raising of the existing 115 kV transmission line that feed the Allison Substation. This line was included in the facilities purchased from Public Service Company of New Mexico (PNM) in 2015. The City contracted with Transmission and Distribution Services to design the line relocation, prepare the bid package and provide oversight of the construction of the line relocation. Bids for the project were opened on June 6, 2017 and three qualified bids were received. The lowest qualified bid was from Wilson Construction in the amount of $87,112.91, including gross receipts tax. Mr. Matzke also requested a budget transfer from Fund 507 in the amount of $95,865 to cover the cost of the contract plus a 10% contingency. He recommended award of the contract to the lowest qualified bidder and approval of the budget adjustment. Councilor Landavazo made the motion to approve the construction contract award and budget adjustment for the Allison Tap 115 kV Pole Replacement Project as presented. MINUTES Regular City Council Meeting —6/13/2017 Page 7 Seconded by Councilor Palochak. Roll call: Councilors Landavazo, Palochak, Garcia, Kumar and Mayor McKinney all voted yes. 13. Contract Award for West Jefferson Avenue Reconstruction Project — Stan Henderson, Public Works Director Mr. Henderson said the proposed project will reconstruct the existing roadway pavement on West Jefferson Avenue between Metro Avenue and Highway 491 specifically, the roadway curve. Bids for the project were opened on May 30, 2017 and three bids were received. The lowest bid submitted for the project was from Star Paving. There were two paving options solicited for the project: replacement of the existing concrete roadway with concrete pavement and asphalt pavement. The asphalt bid came in at $849,222.50, not including gross receipts tax and the concrete option came in at $1,182,027.50, not including gross receipts tax. As a result, the bids have exceeded the planned budget estimate for construction; however, there is adequate funding from the General Obligation Bond proceeds to begin this project. Mr. Henderson recommended award of the asphalt option of the bid to Star Paving in the amount of $919,814.12 including gross receipts tax. He also recommended approval of a project budget increase in the amount of $250,000 from the bond funding. Discussion followed concerning the engineer’s estimate for concrete and asphalt paving and the durability of both surfaces. The construction schedule and the availability of asphalt was also discussed. Following discussion, Councilor Palochak made the motion to approve the contract award for the West Jefferson Avenue Reconstruction Project as presented. Seconded by Councilor Garcia. Roll call: Councilors Palochak, Garcia, Kumar, Landavazo and Mayor McKinney all voted yes. Mt. Henderson also announced that the reconstruction of the runway at the Gallup Municipal Airport has been completed and is now open. 14. Approval of Annual Audit Contract — Patty Holland, Chief Financial Officer Ms. Holland presented the proposed contract with Hinkle + Landers for the second year of a three year contract. The proposed contract is to conduct the City’s audit for Fiscal Year 2017. The Office of the State Auditor has granted approval of the contract. Councilor Kumar made the motion to approve the Annual Audit Contract with Hinkle + Landers. Seconded by Councilor Landavazo. Roll call: Councilors Kumar, Landavazo, Garcia, Palochak and Mayor McKinney all voted yes. MINUTES Regular City Council Meeting — 6/13/2017 Page 8 15. Budget Adjustment for the City’s Portion of Prisoner Care Costs at the Adult Detention Center Patty Holland, Chief Financial Officer — Ms. Holland said the City received a bill from the County for its portion of the prisoner care costs at the Adult Detention Center. The City’s share (30%) of the costs has been estimated at $500,000, however, $400,000 has been budgeted by the City. A budget increase of $100,000 is needed to process the invoice for payment. Discussion followed concerning the County’s billing process for invoicing the City for the prisoner care costs. Councilor Palochak made the motion to approve the budget adjustment for the City’s portion of prisoner care costs at the Adult Detention Center. Seconded by Councilor Kumar. Councilors Palochak, Kumar, Garcia, Landavazo and Mayor McKinney all voted yes. 16. Approval of Revised Travel Policy for the City of Gallup — Patty Holland, Chief Financial Officer Ms. Holland presented the proposed changes to the City’s Travel Policy to modify the single day travel and the last day of travel provisions to reimburse the employee for out of pocket expenses when on official business. The proposed amendment allows an employee to be reimbursed $30 for per diem for more than 5 hours on a single day’s travel or the last day of travel during the normal work day. The second change to the policy provides for the calculation of hours to begin with the time the traveler initially departed on travel. The City has home rule authority and is able to deviate from the State’s Travel Policy. Councilor Garcia made the motion to approve the revised Travel Policy for the City of Gallup. Seconded by Councilor Kumar. Roll call: Councilors Garcia, Kumar, Landavazo, Palochak and Mayor McKinney all voted yes. 17. Resolution No. R2017-15; Fiscal Year 2018 Budget Adoption — Maryann Ustick, City Manager and Patty Holland, Chief Financial Officer Ms. Ustick and Ms. Holland presented the Fiscal Year 2018 Budget for final approval and for submission to the New Mexico Department of Finance and Administration by July 31, 2017. Ms. Ustick provided an overview of two minor changes to the proposed budget which includes the purchase of electrical equipment and the allocation for a part-time bus driver in the City’s Senior Program. MINUTES Regular City Council Meeting — 6/13/2017 Page 9 Councilor Landavazo made the motion to approve of Resolution No. R2017-15. Seconded by Councilor Palochak. Roll call: Councilors Landavazo, Palochak, Garcia, Kumar and Mayor McKinney all voted yes. Councilor Palochak made the motion to adjourn into closed session for the purpose of discussing certain purchases relative to contract negotiations with Continental Divide Electric Cooperative, Inc. and threatened or pending litigation. Seconded by Councilor Landavazo. Roll call: Councilors Palochak, Landavazo, Kumar, Garcia and Mayor McKinney all voted yes. The Mayor and Councilors adjourned into closed session pursuant to §10-15-1-H(6) and §10-15-1-H(7) NMSA 1978 Comp. (as revised). Following the closed session, Councilor Palochak made the motion to reconvene the Regular Meeting. Seconded by Councilor Landavazo. Roll call: Councilors Palochak, Landavazo, Garcia, Kumar and Mayor McKinney all voted yes. Mr. Kozeliski certified for the record that the only matters discussed during the closed session were certain purchases relative to contract negotiations with Continental Divide Electric Cooperative, Inc. and threatened or pending litigation. Comments by Public on Non-Agenda Items Joann Benenati invited all interested parties to a meet and greet with Jeff Apodaca, candidate for New Mexico Governor. The event will take place at the Gallup Coffee Company on Saturday, June 17, 2017 from 10:00 a.m. to 12:00 p.m. Comments by Mayor and City Councilors Councilor Palochak invited everyone to attend the Relay for Life event to be held on Friday, June 16, 2017 at the Courthouse Plaza. Councilor Landavazo said he will hold a District 2 meeting on Wednesday, June 14, 2017 at 6:30 p.m. at the East Side Fire Station #3. Fire Marshall Jacob LaCroix will provide a presentation on fireworks safety. Councilor Landavazo also encouraged everyone to keep believing, keep building and keep supporting Gallup, New Mexico. Mayor McKinney thanked all City employees for the work they do. Comments by City Manager and City Attorney Ms. Ustick said the City’s milling machine broke down during the City’s milling and overlay project. A new milling machine is being leased and the project will resume as soon as possible. She provided a tentative planning schedule of the streets to be worked on as  MINUTES Regular City Council Meeting — 6/13/2017 Page 10 the project continues. 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. Mayor Jackie McKinney • : ATTEST: • frAbeI,Citrk Approved 6/27/2017