Finance Committee

City of Roswell Finance Committee Thursday, June 5, 2014, 8:00 a.m. City Hall Council Chambers Committee Members present: Caleb Grant, Chairman Art Sandoval, Councilor Jason Perry, Councilor Committee Members absent: None Other Elected Officials present: Steve Henderson Savino Sanchez Jr. Staff Present: Larry Fry Monica Garcia Jennifer Brady Renee Roach Sharon Coll Mike Mathews Scott Stark Others present: Romo Villegas Dorrie Faubus-McCarty John Mulcahy Bill Armstrong Larry Connelly John Hitchcock The meeting was called to order at 8:04 a.m. by Chairman Grant. Committee members Caleb Grant and Art Sandoval and Jason Perry were all present, which represented a quorum. Other Business/Non-Action Items/Information Items/Reports: Councilman Savino Sanchez addressed the committee regarding the need for a walking trail south of town. He suggested adding a trail around Martin Luther King Park so that the community would have an area close to home. Councilor Grant asked if this project had been placed on the ICIP project list, which it has not. Mr. Fry stated that the ICIP list is being developed presently and this project can be added to it. Regular Items: 1 1. HK Advertising – Request for Additional Budget for FY 2014: Renee Roach spoke on behalf of the request for additional funding for advertising in FY2014. There is a need to print additional 100K brochures for distribution in our three state drive market of Texas, Colorado and Arizona as well as in the state. We have only 5 boxes of brochures (2K) in inventory. We have the budget for the creative part but not for printing which costs $.44 a brochure. After discussion Councilor Sandoval moved to send to full City Council Resolution 14-25 in the amount of $44K amending the advertising budget for FY2014. Councilor Perry seconded the motion, a voice vote was unanimous and the motion was carried. 2. HK Advertising – Request for Additional Budget for FY 2015: Renee Roach spoke on behalf of the request for additional funding for advertising in FY2015. We would like continue to bring visitors and revenue to the city by continuing to use our tools to attract visitors to Roswell. This includes producing a new thirty seconds TV ad, $34K, also producing a mobile app $25K and updating our See Roswell web site $13K totaling $71,625. After further discussion Councilor Sandoval moved to send to full City Council Resolution 14-26 in the of $71,625 amending the advertising budget for FY2015. Councilor Perry seconded the motion, a voice vote was unanimous and the motion was carried. 3. Budget Adjustment Request FY2014 – Rerouting Power (old airport building) Mike Mathews spoke on behalf of the request for additional funding for re-routing power at the old airport building. This building will be demolished but before this happens the power needs to be re- routed. Mr. Mathews told the committee that Xcel was hoping to have the cost to us by the meeting, but unfortunately they had not gathered that information yet. Councilor Perry tabled the request until we had additional information regarding the cost of the project. Councilor Sandoval seconded, a voice vote was unanimous and the motion was carried. 4. Budget Adjustment Request FY2014 – Runway Project 3-21 Jennifer Brady spoke on behalf of the request for additional funding of the runway 3-21 project. The City is receiving a grant from the State of NM to complete the project, sponsoring $7M of the $8.5M of the project. This project will be completed in III stages with the first stage beginning in September of 2014 through December 2014. Phase II will begin in June 2015 through September 2015 and phase III will run from October 2015 – December 2015. After further discussion Councilor Perry moved to send to full City Council Resolution 14-25. 2 After further discussion Councilor Perry moved to send to full City Council Resolution 14-25 in the amount of $8,583,063 amending the airport budget for FY2014. Councilor Sandoval seconded the motion, a voice vote was unanimous and the motion carried. 5. Roswell Chamber of Commerce – Request for Financial Support Dorrie Faubus - McCarty spoke on behalf of the request for financial support for the Roswell Chamber of Commerce. For years the City of Roswell has been supporting the Roswell Chamber of Commerce through the Roswell-Chaves County Economic Development Corp. I didn’t realize that the funds were actually coming from the City she stated. The Roswell Chamber has seven active committees as well as 17 board members. One of our goals is to stay constantly involved in all areas of our community by promoting and/or participating in all events, not only Roswell Chamber events. We work with Main Street Roswell, the UFO Museum, Hispano Chamber, fair and livestock boards, and the tourism council just to name a few. We feel we cannot reach our goals unless we work as team at all times with the different organizations. One of our major hurdles has been staffing, which we hope to ratify this coming year. We hope to get the employees better wages as well benefits. After further discussion Councilor Sandoval moved to send to full City Council Resolution 14-26 in the amount of $55K amending the budget for the Roswell Chamber of Commerce for FY2015. Councilor Perry seconded the motion, a voice vote was unanimous and the motion carried. 6. Hispano Chamber of Commerce – Request for Financial Support Romo Villegas spoke on behalf of the request for financial support for the Hispano Chamber of Commerce. The Hispano Chamber is asking for $23,193.18 to help support and continue the work of the Chamber. Over the past few years, the RHCC has expanded its outreach and community involvement, establishing relationships with the Small Business Development Center, the Roswell Chaves County Economic Development Corp., and the Eastern New Mexico University Roswell in order to provide more training and opportunities for existing and future small business owners in our area. The RHCC was first established to help the Hispanic business owners but has since branched out to help all small businesses. After further discussion Councilor Sandoval moved to send to full City Council Resolution 14-26 in the amount of $23,193.18 amending the budget for the RHCC for FY2015. Councilor Perry seconded the motion, a voice vote was unanimous and the motion carried. 7. Roswell Chaves County Economic Development Corp. – Requests for Financial Support John Mulcahy spoke on behalf of the request for financial support for the Roswell Chaves County Economic Development Corp. The EDC is asking for $120K to help support and continue the work of the organization. The EDC is asking that we fund the EDC separate of the Chambers of Commerce so that there is clearer accounting and accountability for all three organizations. Over the past several years this 3 organization has relied heavily on the recruiting and national marketing experience of the NM Economic Development Partnership to identify potential recruitment opportunities interested in locating to rural locations. The current Board and staff intend to continue responding to these inquiries from the Partnership but will be more focused on direct recruitment of Companies identified by in house research and tradeshow networking. The planned areas of focus for direct marketing and recruitment are; Oilfield supply chain, Roswell Air Center, The Dairy Industry, Power Production, Unmanned Aerial Systems, Workforce Development and Targeted Recruitment. This year, in addition to marketing Roswell’s existing commercial air service with American Airlines, the EDC is planning to promote expanded service. Additional routes, especially to the west, will be huge economic drivers to increase business in the City. After further discussion Councilor Perry moved to send to full City Council Resolution 14-26 in the amount of $120K amending the budget for the EDC for FY2015. Councilor Sandoval seconded the motion, a voice vote was unanimous and the motion carried. 8. Resolution 14-19 – Items to be Placed on the Consent Agenda at the City Council Meetings Sharon Coll spoke on behalf of Resolution 14-19 asking for Lodger’s Tax Requests added to the consent agenda for the City Council Meetings. Ms. Coll stated that the Lodger’s Tax Requests are requested through the Occupancy Tax Board, who then recommends funding, or not to the Finance Committee who recommends funding or not to the City Council. This process has requesters presenting three times. Adding this to the consent agenda would free up time at the City Council meetings. Any organization is always welcomed to speak on behalf of their organization is they so choose this resolution would not take that away from the organization. After further discussion Councilor Perry moved to send to full City Council Resolution 14-19 allowing the Lodgers Tax Requests added to the consent agenda for the City Council meetings. Councilor Sandoval seconded the motion, a voice vote was unanimous and the motion carried. Other Business/Non-Action Items/Information Items/Reports 1. Air Service West – John Hitchcock & Bill Armstrong John Hitchcock and Bill Armstrong presented to the committee the plans for trying to get air service to the west, Phoenix, AZ. They discussed the importance of the City to be on board with the idea since the airport is located here in Roswell and we would have to help fund the opportunity. They will be soliciting the other counties to get commitments from them as well. We hope to have a contract in place by August 2014, with 13 flights, 2 times a day and 1 flight on Saturday. As the time moves closer they will present to the Finance Committee regarding the amount that the City would need to fund. 2. Finance Director’s Report 4 Ms. Garcia went over GRT, Lodger’s Tax, and Convention Center Fee’s with regards to dollar amounts received and the FY2013 dollar amounts for comparison. She also spoke about Dean Baldwin and Millennium’s payments and that they are current. All franchise fees are current at well. Both Councilors Henderson and Best talked about getting a workshop together with regards to the Convention Center Fee (revenue) coming into the City and the future expansion of the Convention Center. Meeting adjourned at 9:50 a.m. 5