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, November 14, 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 Absent: Fran Palochak, Councilor Also present: Maryann Ustick, City Manager Curtis Hayes, City Attorney Mayor McKinney said Councilor Palochak’s absence shall be recorded as an excused absence. Presented to the Mayor and Councilors for their approval were the Minutes of the Regular Meeting of October 24, 2017. Councilor Landavazo made the motion to approve the aforementioned Minutes. Seconded by Councilor Garcia. Roll call: Councilors Landavazo, Garcia, Kumar and Mayor McKinney all voted yes. Presented to the Mayor and Councilors for their approval were the following Discussion/Action Topics: 1. Approval and Acceptance of the Local Liquor Excise Tax Accountability Report for 3td Quarter Calendar Year 2017 —Lori Parra and Maura Schanefelt, McKinley County Ms. Parra presented the report which summarizes the use of liquor excise tax funds by local programs and agencies during the third quarter calendar year 2017. The reports are prepared on a calendar basis to comply with State requirements. Ms. Parra introduced Ms. Schanefelt, the County’s new DWI Program Manager. Councilor Landavazo asked for a year-to-date comparison of data from 2016. Ms. Parra said she will provide the information to the City Manager or City Clerk for dissemination to the Mayor and Councilors at a later time. Discussion also followed concerning the number of admissions for detox services at Indian Health Service (IHS) (labeled as Medical PHS” on the report) and the data presented to the County Commission by Mayor MINUTES Regular City Council Meeting — 11/14/2017 Page 2 McKinney regarding the decline in the number of calls for service to the Police and Fire Departments since the City’s new ordinance on the hours of package liquor sales went into effect. Following discussion, Councilor Kumar made the motion to approve and accept the Local Liquor Excise Tax Accountability Report for 3rd Quarter Calendar Year 2017. Seconded by Councilor Garcia. Roll call: Councilors Kumar, Garcia, Landavazo and Mayor McKinney all voted yes. 2. Return of Easement from Tn-State Generation and Transmission Association, Inc. Curtis Hayes, City Attorney — Mr. Hayes said Tn-State has abandoned a transmission line (known as the Enron tap line) and has no further use or need of the easement. He recommended acceptance of a quitclaim deed which would return the easement to the City. Councilor Kumar made the motion to accept the return of easement from Tn-State Generation and Transmission Association, Inc. Seconded by Councilor Landavazo. Roll call: Councilors Kumar, Landavazo, Garcia and Mayor McKinney all voted yes. 3. Acceptance of Grant of Easement From William I. Keelen & Rebecca Sue Keeler Curtis Hayes, City Attorney — Mr. Hayes said the matter pertains to the proposed alleyway improvements behind City Hall, including the placement of underground trash containers, landscaping and electrical equipment. In exchange for granting the City access to their property for the proposed improvements, the City will improve the parking area behind the building owned by Mr. and Mrs. Keeler. Mr. Hayes recommended acceptance of the perpetual easement from Mr. and Mrs. Keeler as well as approval of the Alley Improvement Easement Agreement with Mr. and Mrs. Keeler. Discussion followed concerning the new underground solid waste container system and the alleyway requirements for the installation of the system. Councilor Garcia made the motion to accept the Grant of Easement from William I. Keeler and Rebecca Sue Keeler. Seconded by Councilor Kumar. Roll call: Councilors Garcia, Ku mar, Landavazo and Mayor McKinney all voted yes. 4. Ordinance No. C201 7-9, Amendment to the Procurement Code — Curtis Hayes, City Attorney MINUTES Regular City Council Meeting — 11/14/2017 Page 3 Mr. Hayes said the City’s existing Procurement Code has a limit of eight years on contracts for the purchases of services and tangible property. Although electricity and natural gas do not fit the definition of services or personal property, it is unclear if there is a limit on the term of contracts for the purchase of electricity and natural gas. Electric and natural gas contracts tend to be long term contracts for 25 to 30 years. The proposed Ordinance provides clear language that the City may enter into a contract for the purchase of electricity and natural gas for a term of up to 30 years. Mr. Hayes also said the New Mexico Bateman Act states that local governments may not become indebted beyond the current fiscal year; however, the New Mexico Supreme Court has said this limitation does not apply to special funds. A special fund is a fund which has a dedicated revenue source and is separate from the general fund. The proposed Ordinance provides clear language that the City may dedicate revenue from a special fund, often called an enterprise fund, to a specific multi-year contract. Councilor Landavazo made the motion to adopt Ordinance No. C2017-9. Seconded by Councilor Garcia. Roll call: Councilors Landavazo, Garcia, Kumar and Mayor McKinney all voted yes. 5. Approval of Amendments to the Power Purchase Agreement and Lease Agreement with Mangan Renewables, LLC Curtis Hayes, City Attorney — Mr. Hayes said the Power Purchase Agreement with Mangan Renewables for the construction and management of the new solar park, provides that the contract will be assigned to Gallup PV, LLC, which is a New Mexico LLC created by Wizer Capital, the company that is currently financing the project. Wizer Capital wants to bring in another entity, Standard Solar, as a partner for financing the project. The proposed amendments to the Power Purchase Agreement with Mangan Renewables provides for the following: 1) inclusion of a different New Mexico entity than Gallup PV as a party to the contract; 2) clarifies the years in which the termination payments can be made so that it is clear that the City cannot elect to buy the facility in years 1-6; 3) clarifies the treatment of Environmental Incentives (tax credits) and Environmental Attributes (Renewable Energy Credits and other benefits from using renewable energy) to ensure the Environmental Incentives clearly go to the Seller and that the Environmental Attributes go to the City; 4) corrects a drafting error that ties Gallup’s damages, in the event of a Seller breach, to the termination fee and instead calculates damages based on Gallup’s actual economic loss including the need to buy electricity at a higher rate; 5) requires the Seller to first seek specific performance, in the event of a City breach, before it can seek monetary damages from the City and clarifies that the lease ends if the City breaches to allow the Seller to sell electricity to someone else; and 6) the lease is amended to make clear that any discrepancy between the Power Purchase Agreement and the lease will be governed by the terms of the Power Purchase Agreement. MINUTES Regular City Council Meeting — 11/14/2017 Page 4 Councilor Kumar made the motion to approve the amendments to the Power Purchase Agreement and Lease Agreement with Mangan Renewables, LLC. Seconded by Councilor Garcia. Roll call: Councilors Kumar, Garcia, Landavazo and Mayor McKinney all voted yes. 6. Approval of Budget Adjustment to Fund System Improvements Identified by System Impact Study, Additional Engineering and Legal Expenses for Allison Road Solar Park Richard Matzke, Director, Gallup Electric Department — Mr. Matzke said when the original Power Purchase Agreement with Mangan Renewables was approved by the Mayor and Councilors in December 2016, they also authorized a system impact study to evaluate what modifications to the Gallup system will be needed to accommodate the solar project. The system impact study has been completed by Transmission and Distribution Services, LLC and recommends the installation of new equipment to protect the Gallup system. Additional engineering support will be required to prepare bid specifications for this equipment as well as on site services to implement recommendations from the system impact study. Legal services have continued beyond the original scope of providing advisory services during the REP process and negotiation of the Power Purchase Agreement. The continuing legal expenses include responding to the developer’s financing team and negotiating proposed amendments to the Power Purchase Agreement. The costs of the equipment plus contingency is $148,000, additional engineering services are $38,000 and the additional legal expenses are estimated at $27,000. Mr. Matzke recommended increasing the project budget by $213,000 (including gross receipts tax) and the Fiscal Year 2018 budget be adjusted by the same amount and fund from 507 Fund balance. Mr. Matzke answered questions posed by Councilor Landavazo regarding the estimated value of the solar park and the costs to the City if it funded and constructed the solar park itself. Discussion followed concerning the anticipated savings to the City based on the renegotiated contract with Continental Divide Electric Cooperative, Inc. Following discussion, Councilor Landavazo made the motion to approve the budget adjustment to fund system improvements identified by the system impact study, additional engineering and legal expenses for the Allison Road Solar Park as presented. Seconded by Councilor Kumar. Roll call: Councilors Landavazo, Kumar, Garcia and Mayor McKinney all voted yes. 7. Acceptance of Utility Easements for Electric Extensions to Durango Coca Cola Bottling Richard Matzke, Director, Gallup Electric Department — Mr. Matzke said the owners of Tracts 1 A and 1 B of the Coca Cola Subdivision have MINUTES Regular City Council Meeting — 11/14/2017 Page 5 granted utility easements to the City for the extensions of underground electric facilities and pad mount transformer to serve the new Coca Cola Warehouse. The new warehouse is located near the intersection of Mentmore Road and West Historic Highway 66. Councilor Garcia made the motion to accept the utility easements for electric extensions to Durango Coca Cola Bottling. Seconded by Councilor Kumar. Roll call: Councilors Garcia, Kumar, Landavazo and Mayor McKinney all voted yes. 8. Award of Contract for HVAC Preventive Maintenance — Frances Rodriguez, Purchasing Director Ms. Rodriguez said two proposals were submitted in response to the City’s Request for Proposals (REP) to provide a preventive maintenance and inspection program along with an as-needed unscheduled on-call service repair agreement for the heating and cooling systems for City facilities. The REP evaluation team reviewed and scored the proposals received and made a recommendation to award the contract to Dallago Corporation. Ms. Rodriguez presented a list of City-owned facilities to be serviced under the proposed contract as well as a tabulation sheet with the scoring results of the proposals submitted. Ms. Rodriguez responded to questions posed by the Mayor and Councilors regarding the services to be provided under the proposed contract and information regarding the previous contract. Following discussion, Councilor Landavazo made the motion to approve the award of the contract for HVAC Preventive Maintenance to Dallago Corporation. Seconded by Councilor Kumar. Roll call: Councilors Landavazo, Kumar, Garcia and Mayor McKinney all voted yes. 9. Approval of FY17-2018 Airport Maintenance Grant (#GUP-18-01) — Stan Henderson, Public Works Director Mr. Henderson said the proposed grant from the New Mexico Department of Transportation State Aviation Division will be used for annual maintenance materials at the Airport, such as pavement markings, taxiway signage and wind socks. The State will provide 90% of the grant, in the amount of $9,341.00 and the City will need to provide a 10% match in the amount of $1,038.00, for a total of $10,379.00. Mayor McKinney asked if the City’s match was included in the City’s current budget. Mr. Henderson said the funds are budgeted in the Airport’s 308 Fund. Councilor Kumar made the motion to approve the FYi 7-2018 Airport Maintenance Grant. Seconded by Councilor Garcia. Roll call: Councilors Kumar, Garcia, Landavazo and Mayor McKinney all voted yes. MINUTES Regular City Council Meeting — 11/14/2017 Page 6 10. Resolution No. R2017-27; Approval of FY17-2018 Capital Appropriation Project Agreement Stan Henderson, Public Works Director — Mr. Henderson presented the proposed Resolution and Agreement with the New Mexico Department of Transportation for the acceptance of the State’s capital appropriation of $75,000 to be used for the State Veterans Cemetery Access Road Construction Project. Although the cost of the project will exceed $75,000, the State’s appropriation requires no local match and may be used for the design and construction of the project. Councilor Garcia made the motion to approve the FY17-2018 Capital Appropriation Project Agreement. Seconded by Councilor Landavazo. Roll call: Councilors Garcia, Landavazo, Kumar and Mayor McKinney all voted yes. 11. Appointment of Done Rowberry to the Gallup-McKinley County Animal Control Authority Board Mayor Jackie McKinney — Mayor McKinney recommended the appointment of Ms. Rowberry to fill the vacancy on the Board, created by the resignation of Glen Benefield. Mr. Benefield has moved from Gallup and can no longer serve as a board member. Councilor Kumar made the motion to approve the appointment of Done Rowberry to the Gallup-Mckinley County Animal Control Authority Board. Seconded by Councilor Garcia. Roll call: Councilors Kumar, Garcia, Landavazo and Mayor McKinney all voted yes. 12. Approval of Professional Service Agreement with SBS Consulting Debra — Martinez, Behavioral Health Investment Zone (BHIZ) Program Manager Ms. Martinez presented the proposed agreement with SBS Consulting for evaluation services in compliance with the Preventing Alcohol Related Deaths (PARD) Grant. She also provided an outline of the services to be provided under the agreement. Councilor Landavazo made the motion to approve the Professional Service Agreement with SBS Consulting. Seconded by Councilor kumar. Roll call: Councilors Landavazo, Kumar, Garcia and Mayor McKinney all voted yes. The following Presentation and Information Items were presented to the Mayor and Council ors: 1. Quarterly Behavioral Health Investment Zone Report — Debra Martinez, Behavioral Health Investment Zone Program Manager MINUTES Regular City Council Meeting — 11/14/2017 Page 7 Ms. Martinez provided an update on the BH(Z Program for the 1st Quarter FY 2018, including the work to obtain the IHS PARD Grant, working with IHS to train school counselors to conduct motivational interviewing of students in order to identify students at the early stages of substance abuse and working with the Department of Health and the CDC to conduct a cost of alcohol study for local governments. By cellular phone, Sindy Sacoman of SBS Consulting, provided an overview of her work as the evaluator for the BHIZ Program during the past quarter. Included in the presentation was data pertaining to the BHIZ services provided at Na’Nizhoozhi Center, Inc. (NC I) and Rehoboth McKinley Christian Health Care Services (RMCHCS). Ms. Martinez and Ms. Ustick provided an overview of the funding of program components at NCI with the use of Liquor Excise Tax Funds, the City’s General Fund, BHIZ Funds and PARD Funds. 2. Behavioral Health Report David Conejo, Chief Executive Officer, Rehoboth — McKinley Christian Hospital Mr. Conejo presented the report which focuses on the aftercare follow up for the treatment of individuals for substance abuse. He provided information on the following: data regarding the treatment services provided by RMCHCS; the rehabilitation projects used for not only cleaning up the community but to develop the work ethic of their clients in the treatment program; the pottery sales program which consists of their clients making pottery and selling the pottery through Southwest Indian Foundation’s catalog; the collaborative work with Navajo Tech to develop a curriculum for a behavioral health technician program for interested clients to enroll in and to develop the program to become an associate degree program and ultimately, a bachelor degree program; the week-long peer to peer counseling program that was held to enable their clients to obtain their certifications for employment; the production and distribution of 300 fliers to bring awareness of exposure deaths by encouraging the public to notify authorities should they find someone in need of shelter; efforts to demystify hospital and ambulatory based detoxification; the forum that was conducted which focused on trauma, physical and psychological effects related to alcoholism; the dress for success workshop that was held to introduce clients on proper work attire, work ethics, resume writing and interview process; the Dine Suicide Workshop which was held and focused on the Navajo way of dealing with suicides; the workshops conducted on motivational interviewing; and the suicide prevention training for first responders. Overall, Mr. Conejo said the community cannot only focus on detox as additional programs are needed. He asked for support of their programs through the allocation of liquor excise tax funds in the future. Mr. Conejo answered questions presented by Councilor Landavazo regarding admissions to their treatment program. Comments by Public on Non-Agenda Items None. MINUTES Regular City Council Meeting — 11/14/2017 Page 8 Comments by Mayor and City Councilors Councilor Garcia wished everyone a Happy Thanksgiving. Councilor Kumar commented on the groundbreaking ceremony at the new Veterans Cemetery and the new flag pole that was erected north of the cemetery. He wished everyone a Happy Thanksgiving. Councilor Landavazo commented on the Veterans Day events which took place last weekend. He wished everyone a Happy Thanksgiving. Mayor McKinney wished everyone safe travels during the Thanksgiving holiday. He also commented on the new Veterans Cemetery and Veterans Day events. Comments by City Manager and City Attorney Ms. Ustick provided a brief update on the status of the construction of the new skate park. She also wished everyone a Happy Thanksgiving. There being no further business, Councilor Kumar made the motion to adjourn the meeting. Seconded by Councilor Garcia. Roll call: Councilors Kumar, Garcia, Landavazo and Mayor McKinney all voted yes. :• Jackie McKinney, May’\ ATTEST Al dAbeitall, rk Approved 11/28/2017