City Council

AGENDA GALLUP CITY COUNCIL REGULAR MEETING TUESDAY, JANUARY 23, 2018; 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 Curtis Hayes, City Attorney A. Pledge of Allegiance B. Roll Call C. Approval of Minutes Regular Meeting of January 9, 2018 D. Discussion/Action Topics 1. Re-appointment of Alfred “Porky” Abeita, Sr., James Michael Saucedo and Joe Zecca to the Gallup Housing Authority Board of Commissioners – Mayor Jackie McKinney 2. Approval of Amendment to the Design, Build and Operate (DBO) Contract with CH2M Hill to Meet New Mexico Environment Department (NMED) Loan Requirements – Dennis Romero, Director, Gallup Water and Sanitation Department 3. Resolution No. R2018-4; 2nd Quarter Fiscal Year 2018 Budget Adjustments and Report of Actuals – Patty Holland, Chief Financial Officer E. Comments by Public on Non-Agenda Items F. Comments by Mayor and City Councilors AGENDA Regular City Council Meeting – 1/23/2018 Page 2 G. Comments by City Manager and City Attorney H. Motion to Adjourn Auxiliary aides for the disabled are available upon request. Please contact Alfred Abeita II, 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 January 9, 2018 (Minutes will be disseminated on Monday, January 22, 2018)  DiscussionlAction Topic I Re-appointment of Alfred “Pocky” Abeita, Sr, James Michael Saucedo and Joe Zecca to the Gallup Housing Authority Board of Commissioners Mayor Jackie McKinney  CITY Of GALLUP OFFICE OF THE MAYOR STATE OF Niw MExico January 11, 201$ MEMORANDUM TO: City Councilors FROM: cN-Zi Jackie McKinney, Mayor RE: Gallup Housing Authority Board of Comnissioners I would ask for your approval to re-appoint Alfred “Porky” Abeita, Sr., James Michael Saucedo and Joe Zecca to the Gallup Housing Authority Board of Commissioners. We appreciate the willingness, dedication and commitment of these individuals to serve on the Board. Thank you for your consideration of this request.  DiscussionlAction Topic 2 Approval of Amendment to the Design, Build and Operate (DBO) Contract with CH2M Hill to Meet New Mexico Environment Department (NMED) Loan Requirements Dennis Romero, Director, Gallup Water and Sanitation Department  CITY OF COUNCIL STAFF SUMMARY FORM kJ GALLUP MEETING DATE: January23, 2018 SUBJECT: Request to Approve Contract Amendment to Design, Build and Operate Contract with CH2M to Meet New Mexico Environment Department (NMED) Loan Requirements DEPT. OF ORIGIN: Water and Sanitation DATE SUBMITTED: January 18, 2018 SUBMITTED BY: Dennis Romero, P.E., Director Summary- In order to meet the requirements for a New Mexico Environment Department (NMED) Clean Water State Revolving Fund (CWSRF) Loan, the DBO Contract the City has with CH2M had to be amended to include federal project requirements. The most notable requirements to be added are: 1. Inclusion of disadvantaged business enterprises into project; 2. Federal wage requirements; 3. Miscellaneous federal requirements (i.e. Buy American); 4. State of New Mexico audit requirements; and 5. Procedures for subcontractor substitutions. This is a no cost amendment Fiscal Impact: Reviewed By: Finartd Department None change of cost noted in Attached Change Order 1 was included in Previous Change Order approved by - Council (NOTE Change orders have ben reset to No. 1, due to Contract Amendment No. 1 there were a - total of three change orders under original contract). Attachments: (1) Contract Amendment No. 1; (2) Change Order No. 1; (3)Updated Schpdule 16 please note - that the three attachments listed in Schedule 16 will be developed by NMED after they r,ceive approved Contract Amendment: (4’ Council Summary Action Form for Previously AoDrovdd Chayfge Orders .., Legal Review: Approved As To Form: V1—/77 Cifylfory Recommendation: Staff recommends approval of Contract Amendment No. 1 CITY CLERK’S USE ONLY COUNCIL ACTION TAKEN Dçpartnient Dire r . /‘7 Resolution No. Continued To: ,2/ ,-/ Ordinance No. Approved: Referred To: Denied: Other: File: Contract Amendment No. 1  FIRST AMENDMENT TO CITY OF GALLUP, NEW MEXICO WASTEWATER TREATMENT FACILITY CAPITAL IMPROVEMENTS, OPERATIONS, MAINTENANCE AND MANAGEMENT AGREEMENT THIS FIRST AMENDMENT to the CITY OF GALLUP, NEW MEXICO WASTEWATER TREATMENT FACILITY CAPITAL IMPROVEMENTS, OPERATIONS, MAII’JTENANCE AND MANAGEMENT AGREEMENT (“Agreement”) dated November 22, 2016, is made and entered into this day of January, 2018, by and between the City of Gallup New Mexico, a municipality in the State of New Mexico with its principal place of business at 110 West Aztec Ave., Gallup, New Mexico, 87301 (“Gallup”) and CH2M HILL Engineers, Inc., a corporation organized and existing under the laws of Delaware (the “Company”). Gallup and Company are sometimes hereinafter referred to individually as a “Party” and collectively as the “Parties.” Capitalized terms not otherwise defined in this First Amendment have the meanings given to them in the original Agreement. WHEREAS, On October 13, 2017, Gallup entered into a loan agreement with the New Mexico Environment Department (“NMED”) to accommodate the financing of certain portions of the Agreement utilizing funds from the New Mexico Clean Water State Revolving Fund (“SRF”) Program (hereinafter the “SRF Loan”); and WHEREAS, the SRF Loan requires, among other things, Gallup and Company compliance with all applicable SRF requirements related to disadvantaged business enterprises, federal wage requirements, other federal conditions, applicable State audit requirements and subcontractor substitutions, which requirements are not currently in the Company’s scope of service; and WHEREAS, in accordance with Article 5, Section 5.15.5 and Article 11, Section 11.11, of the Agreement, the Agreement is subject to change orders and amendment; and WHEREAS, the parties are agreeable to an amendment of the Agreement that accommodates the requirements of the SRF Program and the SRF Loan. THEREFORE, in consideration of the mutual promises contained herein, the Parties agree to the following amendments to the Agreement: 1. Article 2, Section 2.1 of the Agreement is hereby amended to add the following definition: “State Revolving Funds (SRF)” means the New Mexico Clean Water State Revolving Fund Program administered by the New Mexico Environment Department (“NMED”) under the authority of the federal Clean Water Act (“CWA”). 2. The following new Section 5.22 (Compliance with SRF Requirements) shall be added to Article 5 of the Agreement: Section 5.22 Compliance with SRF Requirements. 1  If $RF funds are used to pay for capital improvements, Company shall comply with all applicable SRF requirements, including those pertaining to disadvantaged business enterprises, federal wage requirements, other federal conditions, applicable State audit requirements and subcontractor substitutions. In such event, Company shall include all applicable SRF requirements in all subcontracts in a manner that effectively establishes the right of the NMED to enforce such requirements. Company shall also comply with any applicable guidelines promulgated from time to time by the $RF with respect to SRF funded projects procured using the design-build project delivery method. Certain SRF requirements and guidelines are attached as Schedule 16 (Certain SRF Requirements and Guidelines). In the event of a material change in such SRF requirements (including any change in Davis-Bacon Act prevailing wage or other requirements) effective following the Contract Date, the Company shall be entitled to a Price Adjustment to account for any additional cost of compliance. The Company shall, upon request, provide Gallup with an acknowledgement of compliance with any material SRF requirement, together with appropriate supporting documentation not already in Gallup’s possession. 3. The attached new “SCHEDULE 16 - CERTAIN SRF REQUIREMENTS AND GUIDELINES” shall be added to the Agreement. 4. This First Amendment shall not become effective or binding until all required signatures have been obtained. IN WITNESS WHEREOF, the Parties have caused this First Amendment to the original Agreement to be executed this day of January, 201$. COMPANY: CH2M HILL Engineers, Inc. Date GALLUP: Jackie D. McKinney, Mayor Date ATTEST: Alfred Abeita II, City Clerk 2 n Di (D 0 -‘ 0 m -‘ z 0 Change Order No. 01 Project: Gallup WWTF Capital Improvements Design-Build Project Contract: The City of Gallup, New Mexico Wastewater Treatment Facility Capital Improvements, Operations, Maintenance and Management Agreement between the City of Gallup, New Mexico and CH2M HILL Engineers, Inc. (“Agreement”) Project No.: CH2M HILL No. 688408 To: CH2M HILL Engineers, Inc. 9191 South Jamaica Street Englewood, CO 80112 The City of Gallup, New Mexico (“City”) orders the following changes to the Agreement named above and, where applicable, directs CH2M HILL Engineers, Inc. (“Company”) to perform the described Design and Construction Requirement Change: Change Order Type(s): I Design and Construction Requirement Change J Base Design-Build Price Adjustment U Scheduled Acceptarce Date Adjustment I Other Design-Build Work related change to the Service Contract Reason for Change Order: On October 13, 2017, the City entered into a loan agreement with the New Mexico Environment Department (NMED) for financing of the Design-Build Costs utilizing funds from the New Mexico Clean Water State Revolving Fund (SRF) Program. The loam agreement has certain requirements which must be adhered to and which are not currently in the Company’s scope. In accordance with Article 5, §5. 15.5 of the Agreement, the Company has prepared Change Order Request No. 03 (which is attached) regarding the implementation of the $RF Loan requirements. It describes the construction changes and additions and price increase to implement the requirement set forth in the SRF Loan Agreement. The City accepts and concurs with the description of the work and the related price adjustment. Description of Change Order (list any attached documents supporting or explaining the change): By this Change Order, the City makes and orders a Design-Build Work related change under Agreement Article 5, §5.15.1 by authorizing and ratifying the additional Work required to implement the requirements of the Interim Loan Agreement (Loan # CWSRF -1- 065) between the City and the NMED all as memorialized in the First Amendment to the original Agreement. The Design-Build Work related changes are described and shown in more detail in the attached COR No. 03. The Company will implement and comply with the SRF-related requirements set forth in Schedule 16, effective immediately. The City approves a Base Design-Build Price Adjustment (increase) in the amount of $37,997 and an additional 60 days to the Scheduled Acceptance Date to accommodate the SRF program notice durations. The attached new SCHEDULE 16- CERTAIN SRF REQUIREMENTS AND GUIDELINES shall be added to the Agreement as indicated in the First Amendment. Change in Desin-Bui1d Price: Base Design-Build Price: $ 1,948,636.00 Net change from prior Base Design-Build Price Adjustments: $0.00 Design-Build Price prior to this Change Order: $ 1,948,636.00 Base Design-Build Price Adjustment for this Change Order: $37,997.00 New Design-Build Price with all approved Change Orders: $1,986,633.00 Change in Scheduled Acceptance Date: Original Scheduled Acceptance Date: March 31, 2017 Scheduled Acceptance Date adjustment from prior Change Orders: No change Increase or decrease in days for this Change Order: 60 Days New Schedpled Acceptance Date: No change This Change Order is subject to, and will be implemented, performed, construed and applied in accordance with, the Agreement. Except for words and phrases that are specifically defined or described in this Change Order, Agreement-defined words and phrases will have the meaning and definitions as set forth in the Agreement. Issued and aPProved by City of Gallup, New Mexico: Dated: , 2018 By: Maryann Ustick City Manager Agreed to and accepted by CH2M HILL Engineers, Inc.: Dated: 2018 By: Steve Lindeman Project Manager -2-  Updated Schedule 16 Please note that the three attachments listed in Schedule 16 will be developed by NMED after they receive approved Contract Amendment.  Schedule 16— Certain SRF Requirements and Guidelines SCHEDULE 16 CERTAIN SRF REQUIREMENTS AND GUIDELINES The purpose of this Appendix is to set forth requirements related to City financing of the Design-Build Costs utilizing funds from the New Mexico Clean Water State Revolving Fund (SRF) Program, which is administered by the New Mexico Environment Department (NMED). In accordance with the Agreement, Company shall comply with requirements of the “Applicant”, as applicable, and as further described in Section 5.22 (Compliance with SRF Requirements) of this Agreement. STATE REVOLVING FUND PROGRAMS General’ The SRF Program is administered by NMED under the authority of the federal Clean Water Act (CWA). The NMED administers the clean water SRF program. The City’s strategy has been to work closely with the SRF Program and has submitted applications to the SRF program. The SRF Program has bidding (SRF Program Procurement Phase), and design and construction fSRF Program Contract Phase) requirements that shall be followed by the Company. Table 16-1 of this Schedule 16 describes the requirements. The following requirements of the SRF Program shall be met by the Company after approval of this Agreement: Table 16-1: Notable SRF Requirements by Project Activity Activity: Contractor/Subcontractor Procurement • Disadvantaged Business Ent$arprise (DBE) Contractor/Subcontractor Certification Forms. • DBE selected prime contractor and subcontractor(s). • DBE Good Faith Effort Certification. • DBE Utilization Form (EPA Form 5700-52A). • Comply with “Debarment and Suspension” requirements. Activity: Design-Build Work • Comply with anti-lobbying provisions. • Comply with non-discrimination provisions. • Comply with Drug-Free Workplace provisions. • Comply with Davis-Bacon Act provisions. • Comply with American Iron and Steel Act provisions. Requirements from Final Budget Approval Form • Tabulation of all subcontractor bids. • Copy of bid(s) selected and purchase orders issued. If the apparent low bid or proposal was rejected, provide a complete explanation of the rejection. • All DBE documentation. 1  Schedule 16— Certain SRF Requirements and Guidelines Requirements from Financing Agreement Loan and NMED Clean Water SRF Program Supplemental Conditions • Comply with federal laws as listed in “Federal Conditions & Cross-Cutters”. • Provide full-time Inspector during construction. Inspector shall be approved by NMED. • Cooperate with City regarding DBE utilization reporting. • Provide project signage and disclosure statement. • Comply with Trafficking Victims Protection Act of 2000. No contractors or subcontractors may engage in trafficking in persons, procuring a commercial sex act, or use of forced labor. • Prevailing wages shall be paid. • Contractor shall furnish performance bonds: faithful performance (100%) of contract value; labor and materials (100%) of contract value. Contractor’s Default Insurance (CDI) may be furnished in lieu of performance and payment bonds. • Comply with all laws, regulations, and requirements, and specifically (1) environmental mitigation plan, (2) federal DBE requirements, and (3) federal laws as certified by the recipient. • City shall sufficiently and properly staff, operate and maintain the Project. • Company and City shall procure and maintain insurance. • Comply with all laws, rules, and regulations. City or Company to procure all permits, licenses and other authorizations. SRF Program requirements not set forth in Table 16-1 are expressly excluded and not applicable to Company. COORDlNATlON OF CITY STAFF The Company shall coordinate with the City Project Manager, as required, to implement SRF funding requirements. DRUG-FREE WORKPLACE The Company must make an ongoing, good faith effort to maintain a drug-free workplace pursuant to the specific requirements set forth in Title 2 CER Part 1536. Additionally, in accordance with these regulations, the sub-recipient organization must identify all known workplaces under its federal awards, and keep this information on file during the performance of the award. The Company is obligated to comply with any successor provisions as provided in Section 5.22 (Compliance with SRF Requirements) of this DBO Contract. DBE REQUIREMENTS The Company is required to seek and encouraged to utilize DBE businesses and to comply with providing the forms included in the attachment to this Appendix titled “Attachment 16A DBE Forms”. The requirements are as of the — Contract Date. The Company is obligated to comply with any successor provisions as provided in Section 4.2(D) (Compliance with SRF Requirements) of this DBO Agreement. The Disadvantaged Business Enterprise (DBE) Program is an outreach, education, and objectives program designed to increase the participation of DBE5 in the Clean Water State Revolving Fund (CWSRF) Program. How to Achieve the Purpose of the Program 2  Schedule 16— Certain SRF Requirements and Guidelines Recipients of SRF financing that are subject to the DBE requirements (recipients) are required to seek, and are encouraged to use, DBEs for their procurement needs. Recipients should award a ‘fair share’ of sub-agreements to DBEs. This applies to all sub-agreements for equipment, supplies, construction, and services. The key functional components of the DBE Program are as follows: • Fair Share Objectives • DBE Certification • Six Good Faith Efforts • Contract Administration Requirements • DBE Reporting Disadvantaged Business Enterprises are: • Entities owned and/or controlled by socially and economically disadvantaged individuals as described by Title X of the Clean Air Act Amendments of 1990 (42 U.S.C. 7601 note) (10% statute), and Public Law 102-389 (42 U.S.C. 4370d) (8% statute), respectively; • Minority Business Enterprise (MBE) entities that are at least 51% owned and/or controlled by a socially and - economically disadvantaged individual as described by Title X of the Clean Air Act Amendments of 1990 (42 U.S.C. 7601 note), and Public Law 102-389 (42 U.S.C. 4370d), respectively; • Women Business Enterprise (WBE) entities that are at least 51% owned and/or controlled by women; - • Small Business Enterprise (SBE); • Small Business in a Rural Area (SBRA); • Labor Surplus Area Firm (LSAF); or • Historically Underutilized Business (HUB) Zone Small Business Concern or a concern under a successor program. Certifying DBE Firms: Under the DBE Program, entities can no longer self-certify and contractors and sub-contractors must be certified at bid opening. Contractors and sub-contractors must provide to the CASRF recipient proof of DBE certification. Certifications will be accepted from the following: • The U.S. Environmental Protection Agency (USEPA) • The Small Business Administration(SBA) • The Department of Transportation’s State implemented DBE Certification Program (with U.S. citizenship) • Tribal, State and Local governments • Independent private organization certifications If an entity holds one of these certifications, it is considered acceptable for establishing status under the DBE Program. Six Good Faith Efforts (GFE) All CWSRF/DWSRF financing recipients are required to complete and ensure that the Arime contractor complies with the GFE below to esure that DBEs have the opportunity to compete for financial assitance dollars. 1. Ensure DBE5 are made aware of contracting opportunities to the fullest extent practical through outreach and recruitment activities. For Tribal, State and Local Government Recipients, this will include placing DBEs on solicitation lists and soliciting them whenever they are potential sources. 2. Make information on forthcoming opportunities available to DBE5. Posting solicitations for bids or proposals for a minimum of 30 calendar days in a local newspaper, before the bid opening date. 3. Consider in the contracting process whether firms competing for large contracts could subcontract with DBEs. 4. Encourage contracting with a group of DBE5 when a contract is too large for one firm to handle individually. S. Use the services of the SBA and/or Minority Business Development Agency (MBDA) of the US Department of Commerce. 6. If the prime contractor awards subcontracts, require the prime contractor to take the above steps. The forms listed in the Table 16-2 below and attached to these guidelines; must be completed and submitted as indicated. Table 16-2 GFE Forms 3  Schedule 16— Certain SRF Requirements and Guidelines Form XP-211 Certifications Regarding Contract under With Bids City Company/Subc Equal Opportunity Clause & Non- ontractor Segregated Facilities Form XP-214 Contractor Labor Compliance Certification With Pay App City Company/Subc ontractor Form XP-215 MBW/WBE/SBRA Utilization Form With Bids City Company/Subc ontractor Form XP-315 Davis-Bacon Certification With Bids City Company/Subc ontractor EPA Form 5700-49 Certification Regarding Disbarment With Bids City Company/Subc ontractor EPA Form 6100-2 DBE Subcontractor Participation Form With Bids City Company/Subc ontractor EPA Form 6100-3 DBE Subcontractor Performance Form As Needed Company Subcontractor EPA Form 6100-4 DBE Subcontractor Utilization Form With Bids City Company AIS CWSRF 314 AlS Compliance Certification With Bids City Company/Subc ontractor AIS Cert. Letter AIS Material Certification Letter With Pay App City Company/Subc ontractor The completed forms must be submitted with each Bid or Proposal. The recipient shall review the bidder’s documents closely to determine that the GFE was performed prior to bid or proposal opening date. Failure to complete the GFE and to substantiate completion of the GFE before the bid opening date could jeopardize SRF financing for the project. The following situations and circumstandes require action as indicated: 1. lfthe apparent successful low bidder was rejected, a complete explanation must be provided. 2. Failure of the apparent low bidder to perform the GFE prior to bid opening constitutes a non-responsive bid. The construction contract may then be awarded to the next low, responsive, and responsible bidder that meets the requirements or the Recipient may re-advertise the project. 3. If there is a bid dispute, all disputes shall be settled prior to submission of the Final Budget Approval Form. Admiristration Requirements • A recipient of SRF financing must require entities receiving funds to create and maintain a Bidders List if the recipient of the financing agreement is subject to, or chooses to follow, competitive bidding requirements. • The Bidders list must include all firms that bid or quote on prime contracts, or bid or quote on subcontracts, including both DBEs and non-DBEs. • Information retained on the Bidder’s List must include the following: o Entity’s name with point of contact; o Entity’s mailing address and telephone number; o The project description on which the entity bid or quoted and when; o Amount of bid/quote; and o Entity’s status as a DBE or non-DBE. • The Bidders List must be kept until the recipient is no longer receiving funding under the agreement. • The recipient shall include Bidders List as part of the Final Budget Approval Form. 4  Schedule 16— Certain SRF Requirements and Guidelines • A recipient must require its prime contractor to pay its subcontractor for satisfactory performance no more than 30 days from the prime contractor’s receipt of payment from the Recipient. • A recipient must be notified in writing by its prime contractor prior to any termination of a DBE subcontractor by the prime contractor. • If a DBE subcontractor fails to complete work under the subcontract for any reason, the recipient must require the prime contractor to employ the six GFEs if soliciting a replacement subcontractor. • A recipient must require its prime contractor to employ the six GFEs even if the prime contractor has achieved its fair share objectives. Reporting Requirements For the duration of the construction contract(s), the recipient is required to submit to the DBE reports annually by October10 of each fiscal year on the attached Utilization Report form (UR-334). Failure to provide this information as stipulated in the financial agreement language may be cause for withholding disbursements. FEDERAL WAGE REQUIREMENTS (DAVIS-BACON ACT) The Company is required to comply with state and federal mandated labor compliance and monitoring requirements and federal wage requirements (Davis-Bacon Act). Provisions of the Davis-Bacon Act are addressed in the attachment to this Appendix titled “Attachment 16B Clean Water SRF Wage Requirements”. The attached requirements are as — of the Contract Date. The Company is obligated to comply with any successor provisions as provided in Section 5.22 (Compliance with SRF Requirements) of this DBO Agreement. AMERICAN IRON AND STEEL REQUIREMENTS The Company is required to comply with the ‘American Iron and Steel (AIS)’ provision that requires SRF assistance recipients to use iron and steel products that are produced in the United States. Requirements of the AIS provision are addressed in the attachment to this Appendix tited “Attachment 16C American Iron and Steel”. The attached — requirements are as of the Contract Date. The Corhpany is obligated to comply with any successor provisions as provided in Section 5.22 (Compliance with SRF Requirements) of this DBO Agreement. END OF SCHEDULE 16 ATTACHMENTS to SCHEDULE 16 Attachment 16A — DBE Forms Attachment 163— NMED Clean Water SRF Wage Requirements Attachment 16C — EPA American Iron and Steel Guidelines and Requirements 5 Council Summary Action Form for Previously Approved Change Orders fTh, CITY OF COUNCIL STAFF SUMMARY FORM GALLUP MEETING DATE: September 12,2017 SUBJECT: Request to Approve Change Orders to Design, Build, Operate (DBO) Contract with CH2M Hill for Urgent Work and Capital Improvement Project at Wastewater Treatment Plant (WWTP) DEPT. OF ORIGIN: Water and Sanitation DATE SUBMITTED: September 5, 2017 SUBMITTED BY: Dennis Romero, P.E., Director Summary- Three Change Orders to the DBO Contract with CH2M Hill are requested as detailed below: Change Order Reason Amount Funding Source 001 Electric Load Study to allow design $24,340 Project JU 1877 work to meet National Electric Code 304-6062-443.48-99 (NEC) Requirements due to the lack of as-built drawings and documentation of electrical system at WWTP 002 Engineering Analysis to Correct $37,997 Budget Adjustment from Deficiencies in Return Activated Wastewater Enterprise Sludge (RAS) and Waste Activated Fund of $37,997 to 508- Sludge (WAS) Handling. Due to 6062-443.45-30 deterioration of telescoping valve in digesters and issues created by 2005 modifications to secondary clarifiers, a method for adjusting the sludge blankets in the secondary clarifiers with solids movements between the clarifiers and digesters must be determined and designed to control solids management and mitigate odor problems. This Scope of Work falls under Appedix B-7, Repairs not— under the C P Project, as Change Orders 001 and 003 do. 003 NMED Loan Requirements/Support — $41,697 Project JU 1877 City has been approved for a Loan in 304-6062-443.48-99 the amount of $1 .925 million for Capital Improvement Project work at WWTP. Loan requires Environmental Clearance Work and Reporting Requirements. Change Order would allow for completion of these requirements Fiscal Impact: Reviewed FinanceyJepartment Fiscal Impact shown in Summary Section of this Council Summary Form Attachments: (1) Schedule 7 of Design/Build/Operate Contract between City of Gallup and CH2M Hill; (2) Change Order Request 001 Connected Load Study; (3) Change Order Request 002 — — Return Activated Sludge fRAS) / Waste Activated Sludge (WAS) Engineering Report and Analysis; (4) Change Order Request 003 Clean Water State Revolving Fund Environmental Clearance and Administrative Support — Legal Review: A Recommendation: Staff recommends approval of Change Orders 001-003 with corresponding budget adjustment and funding sources. Appr ved for S CITY CLERK’S USE ONLY COUNCIL ACTION TAKEN 1p1t e ector “ Resolution No. Continued To: /‘f Ordinance No. Referred To: ‘ ft anager Approved: Denied: Other: File:  DiscussionlAction Topic 3 Resolution No. R2018-4; 2”’ Quarter Fiscal Year 2018 Budget Adjustments and Report of Actuals Patty Holland, Chief Financial Officer  CITY OF COUNCIL STAFF SUMMARY FORM *1 GALLUP MEETING DATE: January 23, 2018 SUBJECT: 2nd Quarter FY2018 Budget Adjustments and Report of Actuals DEPT. OF ORIGIN: Finance DATE SUBMITTED: January 10, 2018 SUBMITTED BY: Patty Holland Summary: Each quarter the Finance department reviews any changes to the budget and submits these changes to council for approval. The following areas are reviewed: personne operations, capital outlay and transfers in and out of each fund. The Department of Finance and Administration (DFA) requires Council to pass a resolution for all budget increases, decreases, and transfers between funds. DFA further requires approval of the report of actuals showing cumulative activity for the fiscal year. The report to DFA regarding budget revisions is due Januaty 31, 2018. This revision encompasses all budget changes processed October 1, 2017 through December 31, 2017 (Quarter 2 of FY2018). /—/ Fiscal Impact: Reviewed By: I Q..thA-?-f CQI’6L I izIiance Department None. Attachments: Budget Changes Q 2, FY 2018, Report olActuals 12/31/17 Legal Review: Approved As To Form:___________________________ CityA r ey Recommendation: Staff recommends approval of the budget adjustments and r ort of actuals. CITY CLERK’S USE ONLY COUNCIL ACTION TAKEN Resolution No. Cont,nued To: Ordinance No. Referred To: Approved: Denied: Other: File:  CITY OF GALLUP RESOLUTION NO. R2018-4 A RESOLUTION AMENDING THE FISCAL YEAR 2018 BUDGET FOR CERTAIN FUNDS, APPROVING THE YEAR TO DATE REPORT Of ACTUALS AND APPLICATION TO THE LOCAL GOVERNMENT DIVISION Of THE NEW MEXICO DEPARTMENT Of FINANCE AND ADMINISTRATION FOR THE APPROVAL THEREOF: WHEREAS, the Governing Body in and for the City of Gallup, State of New Mexico has amended the budget for Fiscal Year 2018 (July 1, 2017 through June 30, 2018); and WHEREAS, said budget amendment was developed on the basis of need and through cooperation with all user departments, elected officials and other department supervisors; and WHEREAS, to perform essential and necessary services for the citizens of the City of Gallup, certain transfers of funds for personnel, operations and capital outlay expenditures are necessary; and WHEREAS, the DFA YTD report of actual activity has been prepared showing summary data by tund; and WHEREAS, the official meeting for the review of said documents were duly advertised on January 19, 2018, in compliance with the State Open Meetings act; and WHEREAS, it is the majority opinion of this Council that the proposed budget adjustment meets the requirements as currently determined for the close of the second quarter of 2018. NOW THEREFORE, BE IT HEREBY RESOLVED that the Governing Body of the City of Gallup, State of New Mexico hereby adopts the budget amendment herein above described and respectfully requests approval from the Local Government Division of the Department of Finance and Administration. RESOLVED: In session this 23th day of January, 2018. CITY Of GALLUP, NEW MEXICO ATTEST: Al Abeita, City Clerk Jackie McKinney, Mayor Linda Garcia, City Councilor Allan Landavazo, City Councilor Yogash Kumar, City Councilor Fran Palochak, City Councilor  City ot Gallup Budget Changes 2nd Qtr. FY 2018 revision llTher ster A creeor I FuncIDet,tj Fund Revenue I In II Expense II Out II(Decrease) II ‘I Purpose - General Fund 101 0000 GF Revenue 22,035 (22,035) CC 9/26/17#6 Budget Automation Court grant funding - 101 0103 Legal 160,000 160,000 CC 12/13/17 Cover Legal expenses - - - - 101 1025 GFNon Departmental 50,050 50,050 Project Roll / Sidewalk 50% split - - - 101 1025 Non Departmental (43,867) (43,867) CC 7/25/17#9 SWIF move to Facility / cover cooling tower - - - 101 1025 Non Departmental 50,000 50,000 CC 10/10/17 move 50k from Engineering to PW CP / NEA Event St. - - - 101 1054 Facilities Management 43,867 43,867 CC 7/25/17#9 SWIF move to Facility / cover cooling tower - - - 101 1532 Engineering (50,000) (50,000) CC 10/10/17 move 50k from Engineering to PW CP / NEA Event St. - - - 101 2011 Police 29.147 29,147 CC 9/26/17#7 Cover P0 for Police vehicles from LFY encumbrance - - - 101 4553 Municipal Court 22.035 22.035 CC 9/26/17#6 Budget Automation Court grant funding - GFAdjustmenl 22,035 211,232 50,000 239,197 Other Funds - - - 214 Lodgers Tax 51,000 51,000 CC 9/26/17 Budget Best of Best allocation for FY2018 - - - 214 Lodgers Tax (6.283) - (6,283) Budget to actual Rodeo pioject balance & close SA1704& LT1740 - - 290 Detox / I H 5 1,500,000 1.500,000 - CC 10/10/17 Budget I H S grant BH18 IH S 0001-01-00 - - 307 GJU Elec. Enterprise 49,124 49,124 - CC 10/10/17 cover change in Solar Project/ design piles increases - - - 307 6061 GJU Elec. Enterprise 213,000 213,000 CC 11/14/17 cash from 507 to 307 Elec C? / Solar Prj. Modification - - - 307 6063 GJU W Enterprise (81,022) 81,022 CC 9/26/l7#8 transfer additional Sidewalk Combined proj. fr:307& - - 308 Airport 35,861 39,845 3,984 CC 9/12/17#7 budget GUP-17-05 35,861 + 3,984 match / Taxi Mali - - 308 Airport (9,341) (10.022) (681) Close GUP-16-0l AP1601 - 308 Airport (46,387) (168,351) (121,964) C10seGUP-15-0l AP15OI - - - 311 Inlrastructure GRT C? 103,875 103,875 - CC 9/26/17#8 transfer additional Sidewalk Combined proj. fr:307& - - 391 Legislative Appropriation (8,815) (5,865) 2,950 Adjust to close Legislative projects - 399 Public Work CP 50,000 50,000 - - CC 10/10/17 move 50k from Engineering to PW C? / NBA Event St. - - 399 Public Work CP (5,000) (5,000) - Correct budget adj. 18-24 7/24/17 CC approval 250k fr: 603 to Skat - - 506 6063 GJU W Enterprise (22,853) 22,853 - CC 9/26/17#8 transfer additional Sidewalk Combined proj. fr:307& - - - 507 6061 GJU E Enterprise 49,124 49,124 CC 10/10/17 cover change in Solar Project/ design piles increases - - - 507 6061 GJU E Enterprise 213,000 213,000 CC 11/14/17 cash from 507 to 307 Bloc CP / Solar Prj. Modification - - - 508 6062 GJUWwEnterprise 130,354 130,354 CCll/28/l7BudgetEPAexpense - 590 Rodeo 160.000 51,000 211,000 - CC 9/26/17 Budget Best of Best allocation for FY2018 - 590 Rodeo (2,705) (6,283) (584) - 8,404 Budget to actual Rodeo project balance & close SA17D4& LT1740 603 Risk Management - - - (5,000) (5,000) Correct budget adj. 18-24 7/24/17 CC approval 250k Ir: 603 to Skat - - - 603 Risk Management 24,724 24,724 Cover the cost of repairs / Solid Waste unit 334 Other funds-Adjustment 1,653,337 455,716 2,028,225 405,716 $ 324,888 1,675,372 455,716 2.239,457 455.716 564,085  - MUNICIPALITY: GALLUP DEPARTMENT OF FINANCE AND ADMINISTR ATION LOCAL GOVERNMENT DIVISION I HEREBY CERTIFY THAT THE CONTENTS IN THiS REPORT ARE TRUE AND CORRECT TO THE Period Ending: 1213t/2O17 BEST OF MY KNOWLEDGE AND THAT ThiS REPORT DEPICTS ALL FUNDS SUBAHTTO lOCAl. GO1’ERNMEA7’DII3SION IN) L4TER THAN 30 DAIS’ Prepared Dv: P 1IOLL AND AFtER inC CWSEOFE4CH QUARTER. Patty Holland] 918 Signature Date I YEAR-TO-DATE TRANSACTIONS BEGINNING QTR ENDING CASH REQUIRED FUND CASH BALANCE REVENuES TRANSFERS EXPENDITURES ADJUSTMENTS CASH BALANCE INVESTMENTS + RESERVES AVAILABLE Fund NAME CURRENT FY TO DATE TO DATE TO DATE (1)+(2)-(3)+(4)+(5) IN VESTMENTS CASH 8 (I) (2) (3) (4) (5) (6) (7) (8) (9) (8)—(9) 101 GENERAL FUN[) (GF) $2,299,561 13,242,380 243,409 12,545,287 890,499 $4,130,562 7,226,241 $11,356,803 1,045,441 $10,311,363 201 CORRECTION $414,647 67,387 0 43,21 t $438,823 $438,823 $43$,823 202 ENVIRONMENTALGRT $97,402 844,723 0 697,150 (107.9591 $137,017 8,839,347 $8,976,363 $8,976,363 206 EMS $1,288 12,626 0 6,996 1,903 $8,821 $8,821 $8,821 207 ENI1ANCEDOII $0 0 0 0 80 $0 $0 209 FIRE PROTECTION FUND $313,460 171,816 (15.2021 106,354 925 $364,646 $364,646 $364,646 211 LEPF $2,015 66600 0 49,298 609 $19,926 $19,926 $19,926 214 LODGERSTAX $1,049,292 799,858 (147,470) 908,199 783) $792,698 930,124 $1,722,822 $1,722,822 216 MUNICIPAL STREET $597,387 645,755 0 1,488,280 137,443 ($107,695) 730,211 $622,516 $622,516 217 RECREATION $800 0 0 0 $800 $800 $800 218 INTERGOVERNMENTAL GRANT. $8,814 10,964 0 13,024 $6,754 $6,754 $6,754 219 SENIOR CITIZEN $180,368 191,889 172,703 288,802 747 $256,905 $256,905 $256,905 223 DWI PROGRAM $0 0 0 0 $0 $0 SO 290 OTHER $6,636,230 2,478,413 500,000 802,939 (108,710) $8,702,994 930,124 $9,633,118 $9,633.1 II 300 CAPITAL PROJECT FUNDS $11,257,134 6,432,719 7,256,077 10,707,373 367,088 $14,605,645 8,929,720 $23,535,365 $23,535,365 401 G. 0. BONDS $620,937 195,154 51,443 571,852 (I) $295,681 $295,681 $295,681 402 REVENUE BONDS $5,300,255 774 2,128,663 358,663 (175.335) $6,895,694 144,869 $7,040,563 $7,040,563 403 DEBT SERVICE OTI-IER $7,244,649 2,417 188,818 15,202 (27,187) $7,393,494 466,811 $7,860,305 $7,860,305 500 ENTERPRISE FUNDS Water Fund $0 0 0 (I $0 0 $0 $0 Solid Waste $654,758 1,831,701 (2,431,240) 1,229,618 (44,621) ($1,219,020) 4,307,954 $3,088,934 $3,088,934 Waste Water $0 0 0 0 $0 SO $0 Airport $237,500 20.468 44,804 15,842 119 $287,049 $287,049 $287,049 — Ambulance $0 0 0 0 $0 $0 $0 Cemeteiy $0 0 0 (1 $0 SO SO . Housing 80 0 0 0 50 $0 $0 Parking $0 0 0 0 $0 $0 $0 506-JointUtilities $13,658,988 17,035,377 (7,843,032) 11,866,603 259,327 $11,244,057 11,723,854 $22,967,911 $22,967,911 516-Fitness Center $628,219 127,664 0 99,43(1 234 $656,678 $656,678 $656,678 590-Rodea $16,528 13,115 96,027 106,651 251 $19,270 $19,270 $l9.270 592-Gamerco $157,824 234,556 0 194,092 7,510 $205,798 $205,798 $205,798 600 INTERNAL SERVICE FUNDS $485,758 1,149,058 (245,000) 1,270,9911 (3,743) $115,075 2,490,503 $2,605,578 $2,605,578 700 TRUST AND AGENCY FUNDS $817,864 0 0 0 10,774 $828,638 0 $828,638 $828,638 GRAND TOTAL $52,681,676 $45,575,414 $0 $43,385,873 $1,209,091 $56,080,308 $46,719,759 $102,800,067 $1,045,441 $101,754,627 FORM MODIFIED tlOROS LAST UPDATE I’I 0/tO 11:32 AM 2:55PM 1/10/2018