Finance Committee

FINANCE COMMITTEE AGENDA Thursday, January 7, 2021 at 9:00 a.m. Roswell Convention Center 912 N. Main, Roswell NM 88201 Committee Chair: Jason Perry Committee Vice Chair: Juan Oropesa Committee Members: Jacob Roebuck, Margaret Kennard Staff Liaison: Juan Fuentes A. Call to Order B. Roll Call C. Approval of the Agenda D. Approval of Minutes 1. Consider approval of the November 5, 2020 Meeting Minutes. – Page 3 E. Non-Action Items 2. Information Reports - Page 5 F. Action Items 3. Discuss and consider approval of Creative Bus Sales contract. – Page 27 4. Discuss and consider approval of purchase of a 2021 Caterpillar 420 Backhoe for Cemetery. – Page 33 5. Consider recommending to City Council Resolution 21-XX Budget Adjustments for FY21 Budget. – Page 38 6. Discuss and consider Landfill Loan Resolution 21-XX for Compactor. – Page 40 7. Discussion and consider to dissolve the remaining furloughs. – Page 43 8. Discussion and consideration of waiver of storage fees for airplanes stored by American Airlines at Roswell Air Center for November and December 2020. – Page 44 9. Discussion and consideration of Memorandum of Understanding between the City of Roswell and Chaves County. – Page 45 10. Discussion and consideration of EDA Grant financial commitment for RAC Dog House Project. – Page 48 G. Public Participation H. Adjourn (Next Meeting: February 4, 2021) Notice of this meeting has been given to the public in compliance with Sections 10-15-1 through 10-15-4 NMSA 1978 and Resolution 20-26. NOTICE OF POTENTIAL QUORUM - A quorum of the City Council may or may not attend, but there will not be debate by the City Council. 1 If you are an individual with a disability who is in need of a reader, amplifier, qualified sign language interpreter, or any other form of auxiliary aid or service to attend or participate in the hearing or meeting, please contact Human Resources at 575-624- 6700 at least one week prior to the meeting or as soon as possible. Public documents including the agenda and minutes can be provided in various accessible formats. Please contact the City Clerk at 575-624-6700 if a summary or other type of accessible format is needed. Printed and Posted: 12/31/20. THE PUBLIC IS ENCOURAGED TO PARTICIPATE ELECTRONICALLY THROUGH THE GOTO MEETING APPLICATION AND NOT PHYSICALLY ATTEND DURING THE PANDEMIC. Finance Committee Meeting Please join my meeting from your computer, tablet or smartphone. https://global.gotomeeting.com/join/822397005 You can also dial in using your phone. United States: +1 (669) 224-3412 Access Code: 822-397-005 New to GoToMeeting? Get the app now and be ready when your first meeting starts: https://global.gotomeeting.com/install/822397005 Help desk - 500-0587 2  1 Regular Meeting of the Finance Committee 2 Held at the Roswell Convention Center 3 Thursday, November 5, 2020 4 5 Notice of this meeting was given to the public in compliance with Sections 10-15-1 6 through 10-15-4 NMSA 1978 and Resolution 20-26. 7 8 ROLL CALL 9 The meeting convened at 9:01 a.m. with Chairman Perry presiding; Councilors Roebuck 10 and Kennard present and Councilor Oropesa being absent. 11 12 Staff present: Juan Fuentes, Joe Neeb, Chanel Rey, Juanita Jennings, Stephanie 13 Mervine, Jeff Bechtel 14 15 Guests present: Mayor Kintigh, Councilor Stubbs 16 17 APPROVAL OF AGENDA 18 Councilor Roebuck moved to approve the November 5, 2020, regular Finance 19 Committee meeting agenda. Councilor Kennard was the second. A voice vote was 3-0, 20 and the motion passed with Councilor Oropesa being absent. 21 22 APPROVAL OF MINUTES 23 Councilor Roebuck moved to approve the October 1, 2020 meeting minutes and 24 Councilor Kennard was the second. A voice vote was 3-0, and the motion passed with 25 Councilor Oropesa being absent. 26 27 NON-ACTION ITEMS 28 Information Reports: 29 GRT Update: Mr. Fuentes presented information on the GRT report. 30 31 CARES Small Business Grant: Mr. Fuentes presented information on the distribution of 32 the CARES Grant to small businesses. 33 34 Lodgers’ Tax Update: Ms. Mervine presented information on the Lodgers’ Tax report. 35 36 ACTION ITEMS 37 Discussion and approval of Ergon Lease Agreement for 13.3974 acres at the Roswell 38 Air Center: Mr. Neeb spoke on the item and reported that they did not reach agreed 39 upon terms for the lease and a public hearing had already been held on the matter. Mr. 40 Neeb answered questions from the committee. No action was taken. 41 42 Consider recommending to City Council Resolution 20-XX Budget Adjustments for 43 FY21 Budget: Mr. Fuentes presented the budget amendments to account for $416,194 44 in revenue and $2,017,295 in expenses from various funds. Councilor Kennard moved 45 to approve to send to full City Council on the consent agenda Resolution 20-XX Budget 1 3 1 Adjustments for FY21 Budget. Councilor Roebuck was the second. A voice vote was 3- 2 0 and the motion passed with Councilor Oropesa being absent. 3 4 PUBLIC PARTICIPATION 5 None. 6 7 ADJOURN 8 The meeting adjourned at 9:16 a.m. 2 4  ABSTRACT Finance Committee Meeting Thursday, January 7, 2021 at 9:00 a.m. Roswell Convention & Civic Center ACTION REQUESTED: None BACKGROUND: Initiated by: Various Departments • Gross Receipts Report (December 2020) • Lodgers’ Tax Report • Convention Center Fee Report • Department Reports o Public Affairs o Information Technology o Property FINANCIAL CONSIDERATION: None LEGAL REVIEW: None BOARD OR COMMITTEE ACTION: None STAFF RECOMMENDATION: None. 5  City of Roswell Gross Receipts Tax December 2020 Jul ‐ Dec. Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Comparison % Total FY 19 3,131,599 2,939,761 2,717,100 2,851,428 2,747,878 2,708,431 2,781,667 3,114,447 2,690,121 2,700,303 2,973,891 2,763,391 17,096,197 34,120,016 FY 20 2,860,221 3,248,842 5,450,435 2,804,337 3,799,352 3,162,914 2,788,688 3,186,544 2,790,481 2,464,194 2,876,027 2,809,756 21,326,101 19.8% 38,241,792 FY 21 3,022,870 3,069,385 2,971,997 2,941,260 2,923,252 2,761,950 17,690,714 ‐20.5% 17,690,714 Activity Reporting City Business Collection ‐3,635,387 GRT Actual Three Year Trend 6,000,000 5,000,000 4,000,000 Budgeted Actual Variance 3,000,000 Jul $1,872,940.00 $3,022,870.04 $1,149,930.04 Aug $1,872,940.00 $3,069,385.00 $1,196,445.00 2,000,000 Sep $2,029,018.00 $2,971,997.00 $942,979.00 1,000,000 Oct $2,029,018.00 $2,941,260.00 $912,242.00 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Nov $2,185,096.00 $2,923,252.00 $738,156.00 Dec $2,185,096.00 $2,761,950.00 $576,854.00 FY 19 FY 20 FY 21 Jan $2,653,331.00 Feb $2,653,331.00 Mar $2,653,331.00 GRT Actual vs Budget Apr $2,809,410.00 $3,300,000.00 May $2,934,272.00 $3,100,000.00 Jun $2,965,488.00 $2,900,000.00 Total $28,843,271.00 $17,690,714.04 $5,516,606.04 $2,700,000.00 % FYTD 45.31% $2,500,000.00 $2,300,000.00 $2,100,000.00 $1,900,000.00 $1,700,000.00 $1,500,000.00 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Budgeted Actual 6  Business Activity Period 7  CITY OF ROSWELL LODGERS' TAX COLLECTION AND COMMENTARY REPORT NOVEMBER 2020 ROOM NIGHTS REPORTED BY MONTH: Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total FY 18 23,899 25,395 22,104 20,142 23,885 18,624 17,416 17,748 19,457 26,191 21,654 24,439 260,954 FY 19 25,002 26,166 25,245 23,452 26,874 21,109 20,661 22,740 23,435 26,674 22,147 25,019 288,524 FY 20 26,110 27,491 24,378 22,767 25,834 19,924 19,890 19,441 20,280 17,664 8,018 11,373 243,170 FY 21 17,959 16,661 20,943 21,041 21,553 98,157 Available 46,710 48,267 50,003 49,320 49,414 Room Nights Occupancy % 38.4% 34.5% 41.9% 42.7% 43.6% LODGERS' TAX COLLECTED BY MONTH: Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total FY 2018 $ 105,581 106,650 98,609 83,083 103,153 75,381 66,997 71,246 79,960 111,190 91,808 115,932 $ 1,109,591 FY 2019 116,281 123,771 121,850 104,856 118,035 92,989 88,266 99,335 107,440 133,408 103,186 126,567 $ 1,335,986 FY 2020 122,326 135,551 118,752 108,720 119,894 85,494 80,122 83,863 92,050 82,999 32,867 44,713 $ 1,107,351 FY 2021 70,763 71,786 77,386 85,368 80,583 $ 385,886 Actual Room Nights Sold - Four Year Trend Actual Lodgers' Tax - Four Year Trend 30,000 $160,000 $140,000 25,000 $120,000 20,000 $100,000 15,000 $80,000 $60,000 10,000 $40,000 5,000 $20,000 0 $- Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun FY 18 FY 19 FY 20 FY 21 FY 2018 FY 2019 FY 2020 FY 2021 STR & Lodgers' Tax Monthly Commentary COVID-19 Impact – November 2020 Roswell hotels did reach the 25% occupancy allowed in Mid-November 2020 by the state wide mandate. The November STR report occupancy at 42.7%. This report also reflects collections for 31 plus nights at hotels and short-term rentals. 8  CITY OF ROSWELL CONVENTION CENTER FEE COLLECTION REPORT November 2020 ROOM NIGHTS REPORTED BY MONTH: Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total FY 18 23,899 25,395 22,104 20,142 23,885 18,624 17,416 17,748 19,457 26,191 21,654 25,253 261,768 FY 19 25,002 26,166 25,245 23,452 26,874 21,109 20,661 22,740 23,435 26,674 22,147 25,019 288,524 FY 20 26,110 27,491 24,378 22,767 25,834 19,924 19,890 19,441 20,280 17,664 8,018 11,373 243,170 FY 21 17,959 16,661 20,943 20,891 21,553 98,007 Available 46,710 48,267 50,003 49,170 49,414 Room Nights Occupancy % 38.4% 34.5% 41.9% 42.5% 43.6% CONVENTION CENTER FEES COLLECTED BY MONTH: Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total FY 18 $ 59,748 63,488 55,260 50,355 59,713 46,560 43,540 44,369 48,643 65,479 54,135 63,133 $ 654,420 FY 19 62,505 65,415 63,113 58,630 67,185 52,773 51,653 56,850 58,588 66,686 55,368 62,548 $ 721,310 FY 20 65,275 68,728 60,945 56,918 64,585 49,810 49,725 48,603 50,778 46,658 20,045 28,433 $ 610,500 FY 21 42,132 41,652 46,342 48,717 48,286 $ 227,129 Actual Room Nights Sold - Four Year Trend Actual Convention Center Bed Fee at $2.50 30,000 Four Year Trend $80,000 25,000 $70,000 20,000 $60,000 $50,000 15,000 $40,000 10,000 $30,000 $20,000 5,000 $10,000 0 $- Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun FY 18 FY 19 FY 20 FY 21 FY 18 FY 19 FY 20 FY 21 9  Public Affairs December 2020 Department Report Lodgers’ Tax/Tourism • In Depth Events Agreement – completed and presented to In Depth on 12/18; revisions requested by In Depth on 12/22 pending changes from In Depth • Zoo Grand Reopening - Date was push back to 01.16.20, continue to ramp up to reopening items on task list. Visit Zoo each Friday to evaluate onsite ops progress. • Zoo Staff Training for Zoo Reopening - Ongoing efforts to hire and train 6 staff members, working through ITS Quest, currently 3 have on boarded. • Zoo Staff Sales/Guest Services Training - Working with staff to fully train on guest services with a strong sales focus for Zoo Store and Visitor Center Store cross training. • Short Term Rentals - Completed Voluntary Collection Agreement, will review with Parker week of 01.4. • Lodgers' Tax /STR Report - Analysis of data, STR commentary. Presenting monthly at finance committee. Working closely with local hotels as an outreach project to build stronger relationships and assure compliance with new 30 plus night collections. • Sports Tourism – Presented Sports Tourism PPT to City Council Workshop on 12.12. Completed one job description example. • Visitor Center Store - Mandate lifted but has created a challenge as visitors are unsure if opened or closed each week. Completed a successful sidewalk pop-up 12.18 weekend. Sold over $400. each day. Government Business • 3 Advertising Contract renewal and extension fully executed • MWRM Agreement for Great Blocks Project fully executed • Spectra Discussion on Operations, Budget and future of the facility • Spectra Qualitative Fee Metrics year one & two completed and submitted along with revenue bench mark incentive • Received MainStreet Roswell Q2 Report Administrative Support for Zoo staff high level budget review for reopening • Zoo Reopening Merchandise, COVID19 Plan, Signage, working on task list items, team roles and deliverables to assure a successful grand reopening is achieved • Continue DMO/Special Event Taskforce with State of NM Tourism for COVID-19 Personnel • On-boarded new administrative assistant; started on 12/7 • (1) Full-Time Visitor Center Store Lead open • (1) Part-time Visitor Center Retail Associate open Page | 1 of 3 10 Public Information • 18 Fix It Forms submitted for the month as 12.28.20 • Municipal Court Blog article and photos • Researched and responded to media inquiries on wide variety of topics on a daily basis • Numerous Facebook posts and correspondence with citizens responding to posts and making inquiries • Issue information from RPD advising public of safety tips for New Year's Eve • 12 news releases • 1 radio interviews Marketing, Graphics & Social Media Printed, ordered, copywriting, exports and design for the following projects this month include: • Production Calendar to include video, social and news features for all City departments completed for Q3 January – March • Social Media and website posts, updates and content. • KRB: mid-year review of budget and grant requirements. Prepping and planning for spring activities. • Assisting website liaisons through extra training or as they completed edits. • Assisting other departments through training materials and policies for Shopify orders and PayPal. • Tracking inventory and loading to Shopify (product photos). Product research for rec • RMAC – First ever Member Email Newsletter design and layout • Public Affairs – Sports Tourism Presentation design • Water Billing – Software Launch Ads, Bill Insert, etc. design • Recreation – Facebook Post Graphics (total of 9) along with Rise Vision TV slides • Library – Read Together While Apart video voiceover • Zoo Brochure Finalized and sent to production • Community Development: Homeowner Building Guide • Public Affairs: Creative Services branding/office signage Video Production • SWAT- Explosive Training • RFD- Recruitment Video • RFD Introduction to new Chief Matt Miller • Police Chief Body Cams Page | 2 of 3 11 Video Production • SWAT- Explosive Training • RFD- Recruitment Video • RFD Introduction to new Chief Matt Miller • Police Chief Body Cams • Roswell Public Library Read Together…While Apart • Recreation Membership video scheduled to shoot on 12/29 • Councilor Corners filmed with Best, Stubbs and Mayor • Holiday Videos for Mayor Kintigh & Mr. & Mrs. Neeb • RMAC (Art, Ceramics, Science, History, Photo Collage) Visitor Center Store • December VC Store Merchandise sales as of 12/28/20 $2,221.80 • December Whole Sale Order $3,712.50 • RMAC Memberships as of 12/28/20 $505.00 • December Combined Store Total $6,439.30 • Zoo Merchandise stocked on 12/17 and available for sale • In-person Store closed 9 days in December due to lack of personnel coverage to maintain open business hours On the Horizon (January): • In Depth Event - Visit, Tour and introductions with In Depth, scheduled for 01.21. • Zoo Grand Reopening - Continue ramp up to reopening items on task list for 1.16.20. More involved in hands on execution as we move closer to date. • Zoo Staff Training for Zoo Reopening - Continue to work toward 6 staff members hired and trained prior to reopening. • Zoo Staff Sales/Guest Services Training- Ongoing until complete, working with staff to fully train on guest services with a strong sales focus for Zoo Store and Visitor Center Store cross training. • Short Term Rentals- Meet to discuss Voluntary Collection Agreement, will review with Parker week of 01.4. • Lodgers' Tax /STR Report - Analysis of data, STR commentary. Presenting monthly at finance committee. Working closely with local hotels as an outreach project to build stronger relationships and assure compliance with new 30 plus night collections. • Sports Tourism – Waiting for discussion of next steps. • Visitor Center Store - Hours of operations will increase pending coverage • Video Productions – Councilor Corner with Kennard, Police Chief K-9 Unit, Heritage Video, Rec. Center Editing, Editing Councilor Corners • KRB- execution of spring activities. On-boarding an intern, bench install and increasing the number of clean-up requests and finalizing Arbor Day schedule and activities. • Website - Revamp website training schedule and materials. Revisit old guides, create new guides and send out training schedule for 2021. • Store - Ordering, tracking and verifying inventory for Rec. • Social Media - Releasing Social Media Post Guide and working with each department to go through the guide and plan out the quarter. • Various Collateral Materials – City Annual Report, Recreation/Library Brochure, $Talks Sheet Page | 3 of 3 12  DE CEMB ER2 020 MONT HLYR EPOR T OF FICI ALC ITYSOC IAL F ACE BOOK MEDI AFOLL OWERS Fl yRos well 1, 529fol lower s 1, 451l ikes Cit yofRos wel l 10, 707fol lower s 9, 986l ikes 1 0, 70 7 KeepRos wellBeautif ul 281fol lower s 247l ikes SpringRiverZoo 3, 810fol lower s 3, 566l ikes Roswel l PublicLi ar br y 691f 2, l ol s ower i 490l 2, kes , 20 08 Roswel l PoliceDept 24, 506fol lower s 23, 525l ikes Roswel l FireDept 696f 6, oll owers 6, 145l ikes Conv enti onCent er 2, 573fol lower s 2, 451l ikes 4 65 Roswel l ,NMT ouris m 16, 101fol lower s 15, 756l ikes Parks&Rec reati on 3, 911fol lower s 3, 620l ikes Roswel l Transit 362fol lower s 332l ikes Animal Servi ces 5, 666fol lower s 5, 343l ikes MONT HLY C OMPARI SON WE BSI TEANAL YTI CS NOVE MBE RTODE CEMB ER SeeRoswell. com Roswel l- NM. gov PageViews+9,685 6,558ofpageviews 95, 458ofpageviews UniqueVisi tor s+2,336 2,609ofuniquevisi tor s 35, Facebook+138 144ofuniquev i si tor s Ins tagram +32 Top10pa gesvisi ted Top10pagesvis ited Twitt er+8 • All Products • UFOS t ory • UFOAt tr actions • CustomerS erv ice/WaterBi ll i ng • S • hop Museums -At r tat cions Ac • Cor • countRev ona v ir ew/Pa i us( COVID- mentOpt y 19)Updat ions es E SER WE OS L L • UFOS hopping • Empl oymentOppor t uniti es ONLI NESTORE • Hotels -Mot els • Pol iceDepa rt ment • RoswellAirCenter Onli neConver s ion:3. 22% • RMAC • Int ernati ona lUFOMus eum • BecomeAMember( RMAC) UnknownT r affic :180 Ca • rt • RoswellPubli cL i brar y Diec r tTaffic r :270 Zoo • Repor • t s Soci alT raffic : 116 Sear chTraffic: 8 13 14 15 16 17 18 19 20 21 22 23  December 2020 Report  Help Requests: This month we have had 270 (documented) help requests. 24  Tyler: The IT department is heavily involved in the Tyler implementation, we are currently working on Utility Billing, Code Enforcement and Planning and Zoning. Energov is live however, we are trying to overcome the city’s lack of GIS system. Utility billing is live working through issues.  Live Streaming: Due to covid-19 restrictions, we have been busy recording and live streaming all public meetings. We have streamed and gotoed over 18 hours this month.  PD: Struggling keeping old mct’s up and running.  Dispatch: IT is also at dispatch almost every day with issues. A lot of power issues in that building. Code 3 is installing new coms computers.  Digital radio Project: Getting ready to start microwave for our simulcast side of the system. They are doing microwave studies now to determine best path. All repeaters and network equipment sent off for programming  RFD: All new equipment working well, they cannot keep their primary truck running so having to switch between primary and secondary engines..  Equipment: We have been deploying new computers that were purchased from the fy2021 budget.  Meetings: We are currently at all public meetings with the city.  Staff: We are at full staff. End of December our department was struck with Covid 19  Email: We are now running all email through a filter to try to remove all bad, bulk and malicious emails from being delivered. Below is last months of filtering.  IT: Working on options for wifi and switches. 25 26  CITY OF ROSWELL FINANCE COMMITTEE Thursday, January 7, 2021, at 9:00 AM Roswell Convention and Civic Center 912 N. Main St. Room A ACTION REQUESTED: Discuss and consider approval of Creative Bus Sales contract. BACKGROUND: The City Council approved one (1) new minivan and one (1) new bus for FY2021 to replace existing equipment. However, after reviewing our equipment needs, Roswell Transit would like to standardize our buses and minivans by replacing them with smaller buses. Our current rolling stock consists of ten (10) buses with an average of twenty-two (22) seats and room for two (2) wheelchairs, and three (3) minivans. The new buses are 10 (ten) seats with two (2) additional wheelchair positions. The major benefit of this change is that we can hire non-CDL drivers. But there are additional benefits as well. We will be able to require all passengers to wear a seatbelt to increase passenger safety, reduced maintenance and fuel costs, and the new size will set us up for future growth into on-demand service or microtransit. The newer style minivans are no longer an option for us. The ramp width on the new minivans is narrower because the door width is slightly smaller; however, wheelchairs are getting wider to provide more comfort to those confined to them. The new ramps do not accommodate the wider wheelchairs. We would have to go into the full-size van class in order to keep transporting everyone enrolled in Paratransit. FINANCIAL CONSIDERATION: In the FY21 budget, there was $192,448 allocated to rolling stock. The State reimbursement is 80% or $153,958. The City’s portion is $38,490. By changing the request to the two smaller buses, we will need a budget adjustment of $29,011 to increase the total to $221,459. The State is considering an amendment to our current MOA. If they are able to amend the contract, the City will owe an additional $5,802, otherwise the City will owe the entire $29,011. In addition, the State has some extra money, so they have offered to reimburse us our portion of rolling stock this year at 100%. We should be awarded at least $38,490 from these funds which have not been included in our current budget. LEGAL REVIEW: None. 27 COMMITTEE ACTION: Recommend approval of the Creative Bus Sales Contract for 2 Arboc SOI 10-2 buses in the amount of $221,459.00. STAFF RECOMMENDATION: Approve and send to City Council approval of Creative Bus Sales Contract for two (2) Arboc SOI 10-2 buses in the amount of $221,459.00. 28 29 30 31 32  CITY OF ROSWELL FINANCE COMMITTEE Thursday, January 7, 2021, at 9:00 AM Roswell Convention and Civic Center 912 N. Main St. Room A ACTION REQUESTED: Discuss and consider approval purchase of a 2021 Caterpillar 420 Backhoe for Cemetery. BACKGROUND: The Cemetery uses a backhoe to dig graves to a specific width, length and depth. These backhoes are highly specialized models known in the construction world as compact backhoe loaders. In order to get our equipment in between pre-existing grave markers that have already been set in concrete and dig a grave down to the 12 foot required depth, requires a unit with a narrower footprint with the power and strength to dig through our caliche soil. The bucket is custom made and the boom is made longer and stronger. There are many complications to using a standard backhoe, the most notable being that grave markers on either side of the dig site must be removed and reset with the risk of breaking them. Also, without the specialized bucket attachment, employees must go into the 12 foot hole to square it up before the vault can be installed. Plus, not all backhoes are designed to dig to the 10-14 ft depth which adds wear and tear on the equipment and decreases the useful life of the machine. Earlier this year, the Cemetery invested more than $7,500 on the current backhoe in an attempt to solve many of the maintenance issues; however, the unit succumbed to its 18-year age with an engine that is no longer functional-burning approximately 1 gallon of oil every day or so depending on use-and a cracked boom. FINANCIAL CONSIDERATION: The Cemetery has a quote for a new backhoe capable of doing the specialized work necessary for $128,841. Wagner Cat, the dealer we have chosen, is willing to give us a trade-in credit for the old backhoe of $7,000. The total equipment price would be $121,841. There was no equipment budgeted for Cemetery in the current budget year. This is considered an emergency. LEGAL REVIEW: None. COMMITTEE ACTION: Recommend approval of the purchase of a 2021 Caterpillar 420 Backhoe for the Cemetery. STAFF RECOMMENDATION: Approve and send to City Council approval of the purchase of a 2021 Caterpillar 420 Backhoe for the Cemetery. 33 34 35 36 37  CITY OF ROSWELL Finance Committee Meeting Roswell Convention Center 912 N. Main, Roswell, NM 88202 Thursday, January 7, 2021 at 9:00 a.m. ACTION REQUESTED: Consider approval of Resolution 21-XX to amend fiscal year ending June 30, 2021 approved budget. BACKGROUND: This is a housekeeping item. Due to DFA’s new reporting system (LGBMS), we are required to approve a budget amendment when increasing a revenue and offsetting expense line item. FINANCIAL CONSIDERATION: Revenue (various funds) $6,438,611 and Expenses (various funds) $8,202,973. Fund 1101 (General Fund): Revenues $4,482, Expenses $4,482 Fund 2610 (Transit Fund): Revenues $23,209, Expenses $29,011 Fund 2690 (Restricted Donations Fund): Expenses $7,546 Fund 5100 (Air Center Fund): Revenues $6,410,920, Expenses $6,518,103 Fund 5200 (Solid Waste Collections Fund) Expenses $1,234,434 Fund 5320 (2017 Smart Meter Bond Fund): Expenses $409,397 LEGAL REVIEW: Sent for Review. BOARD OR COMMITTEE ACTION: Resolution 21-XX: Discuss and consider recommendation to amend fiscal year ending June 30, 2021 approved budget . STAFF RECOMMENDATION: Approve Resolution 21-XX amending the FY2021 approved budget. 38  RESOLUTION 21-XX A RESOLUTION OF THE CITY OF ROSWELL, NEW MEXICO AMENDING THE BUDGET FOR THE FISCAL YEAR ENDING JUNE 30, 2021, BY INCREASING REVENUE AND OFFSETTING EXPENSES IN SIX FUNDS. WHEREAS, the governing body of the City of Roswell, State of New Mexico, has previously approved a budget for the fiscal year 2020-2021, ending June 30, 2021; and WHEREAS, the City desires to amend said budget in the amount of $6,438,611 in revenues and $8,202,973 in expenses to various funds: • Fund 1101 (General Fund) revenues $4,482, expenses $4,482 o Received Grant for Library $3,800 o Received Damage Claim for Park Fence $100 o Received Damage Claim for Code Enforcement Vehicle $582 • Fund 2610 (Transit Fund) revenues $23,209, expenses $29,011 o To purchase Two Buses • Fund 2690 (Restricted Donations Fund) expenses $7,546 o Police K-9 Expenses from Cash Balance • Fund 5100 (Air Center Fund) revenues $6,410,920, expenses $6,518,103 o Reimbursement for Conference $14,991 o A and J Taxiway Grant Project $3,217,029 revenue, expense $3,324,212 o Apron Ramp Rehab Grant Project $3,178,900 • Fund 5200 (Solid Waste Collections Fund) expenses $1,234,434 o Purchase of New Compactor for Landfill from Cash Balance • Fund 5320 (2017 Smart Meter Bond Fund) expenses $409,397 o Pay Final Invoice for Smart Water Meters $409,397 WHEREAS, it is the majority opinion of the Governing Body that the proposed amended budget continues to meet fiscal requirements as currently determined for the fiscal year 2020-2021. NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL AS THE GOVERNING BODY OF THE CITY OF ROSWELL, NEW MEXICO, hereby adopts the budget adjustment hereinabove described and respectfully request approval for same from the Local Government Division of the Department of Finance and Administration, State of New Mexico. PASSED, ADOPTED, SIGNED, and APPROVED the 14th day of January 2021. CITY SEAL _____________________________ Dennis Kintigh, Mayor ATTEST: ______________________ Sharon Coll, City Clerk 39  ABSTRACT Finance Committee Meeting Thursday, January 7, 2021 at 9:00 a.m. Roswell Convention & Civic Center ACTION REQUESTED: Discussion and consider Landfill Loan Resolution 21- XX for Compactor. BACKGROUND: Initiated by: Juan Fuentes During the Regular City Council meeting on December 10, 2020, staff presented a request for the purchase of a new compactor for the landfill. The request was to replace an aging compactor that is in disrepair and does not meet the needs of the landfill. The cost of the new compactor from Wagner Cat is $1,234,434. Staff presented two funding options: use available cash balance from the Solid Waste Collection Fund or loan from the Landfill Fund. The SW Collection and Landfill Fund are separate Enterprise Funds that fund their operations and capital expenses through rates and user fees. The City Council approved the purchase of the compactor during the regular meeting on December 10, 2020 using available cash from the Solid Waste Collection Fund. The Landfill loan resolution is being presented for consideration for reimbursement of the expense. FINANCIAL CONSIDERATION: RBC Capital analysis for a 10 year borrowing through the New Mexico Finance Authority is 1.065% with average annual debt service of $185,000. The interest paid at the end of the term would be approximately $76,247. LEGAL REVIEW: Submitted for review. BOARD OR COMMITTEE ACTION: Discussion and consider Landfill Loan Resolution for Compactor. STAFF RECOMMENDATION: Discussion and consider Landfill Loan Resolution for Compactor. 40  RESOLUTION 21-XX STATING THE OFFICIAL INTENT OF THE CITY OF ROSWELL TO REIMBURSE ITSELF FOR CERTAIN COSTS RELATING TO AN ACQUISITION EXPECTED TO BE INCURRED BY THE CITY PRIOR TO THE ISSUANCE OF TAX-EXEMPT BONDS. WHEREAS, the City Council (the “Council”) of the City of Roswell, New Mexico (the “City”) has an immediate need to expend approximately $1,234,434 from the City’s Solid Waste – Collection Fund to defray the cost of acquiring and equipping a solid waste compactor truck (the “Project”); and WHEREAS, the City expects to issue tax-exempt gross receipts tax revenue bonds in a tax-exempt borrowing (the “Borrowing”) within 18 months of the date of the expenditure of moneys for the Project, and to allocate an amount not to exceed $1,234,434 of the proceeds thereof to reimburse the Solid Waste – Collection Fund for the City’s prior expenditures in connection with the Project. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL, THE GOVERNING BODY OF THE CITY OF ROSWELL: Section 1. The City makes the following representations in connection with its intent to reimburse itself from proceeds of the Borrowing (its “Official Statement of Reimbursement Intent”): A. The City presently intends and reasonably expects to pay the capital costs of the Project from legally available funds on deposit in the City’s Solid Waste – Collection Fund. B. All of the capital expenditures within the scope of this Official Statement of Reimbursement Intent were made no earlier than 60 days prior to the date of this Resolution. C. The City presently intends and reasonably expects to issue the Borrowing in an amount not to exceed $1,234,434 within 18 months of the date of the expenditure of moneys on the Project or the date upon which the Project is placed in service or abandoned, whichever is later (but in no event more than three years after the date of the original expenditure of such moneys), and to allocate an amount not to exceed $1,234,434 of the proceeds thereof to reimburse the General Fund for the City’s prior expenditures in connection with the Project. Section 2. The City’s Official Statement of Reimbursement Intent is made for the purpose of complying with 26 C.F.R. §1.150-2(e). PASSED, APPROVED AND ADOPTED this _____ day of _________ , 2021. CITY OF ROSWELL, NEW MEXICO ______________________________________ Mayor (SEAL) Attest: City Clerk 41 Series 2021, Solid Waste Bonds  We understand that the City has a need for $1.2 million for a solid waste compactor. Below is an example of a 10 year borrowing assuming current interest rates* +35bps. The true interest cost assuming a sale through the New Mexico Finance Authority is 1.065% with average annual debt service of $185,000 Period Ending Principal Coupon* Interest Debt Service 06/01/2022 $124,000 0.640% $11,990 $135,990 06/01/2023 124,000 0.670% 11,196 135,196 06/01/2024 125,000 0.690% 10,365 135,365 06/01/2025 126,000 0.720% 9,503 135,503 06/01/2026 127,000 0.780% 8,595 135,595 06/01/2027 128,000 0.910% 7,605 135,605 06/01/2028 129,000 1.040% 6,440 135,440 06/01/2029 131,000 1.160% 5,098 136,098 06/01/2030 132,000 1.290% 3,579 135,579 06/01/2031 134,000 1.400% 1,876 135,876 $1,280,000 $76,247 $1,356,247 *NMFA Tax-Exempt rates as of 11/20/2020+35bps 8 * As of November 20th. Interest rates are subject to fluctuation. 42 RBC Capital Markets  CITY OF ROSWELL Finance Committee Roswell Convention Center 912 N. Richardson, Roswell, NM 88202 Thursday, January 7, 2021 at 9:00 a.m. ACTION REQUESTED: Discussion and consideration to dissolve the remaining furloughs through June 2021. BACKGROUND: Initiated by: Joe Neeb/Juan Fuentes The proposed recommendation to dissolve the remaining furloughs through June 2021 are in large part due to the Gross Receipts Tax (GRT) revenue year to date. The first six months were estimated at $12M but actual receipts came in at $17M for a net gain of $5M. FINANCIAL CONSIDERATION: If approved, a budget amendment will be presented at a future Council meeting to fund the dissolved furloughs. LEGAL REVIEW: None at this time. BOARD AND COMMITTEE ACTION: The Finance Committee is scheduled to meet on Thursday, January 7, 2021. STAFF RECOMMENDATION: Discussion and consideration to dissolve the remaining furloughs through June 2021. 43  CITY OF ROSWELL Finance Committee Roswell Convention Center 912 N. Richardson, Roswell, NM 88202 Thursday, January 7, 2021 at 9:00 a.m. ACTION REQUESTED: Discussion and authorization to the City Manager the discretion to waive storage fees to American Airlines for November and December 2020. BACKGROUND: Initiated by: Joe Neeb The city has been in conversations with American Airlines on the impact of the pandemic on their operations and service from Roswell Air Center. The city desires to assist in recognition of their effort to maintain the current level of service by waiving storage fees for airplanes stored at the Roswell Air Center. FINANCIAL CONSIDERATION: The city has administratively waived the storage fees for the month of October 2020 in an amount of $58,608. The fees for November are $54,248 and December fees are estimated around $55,000. LEGAL REVIEW: None at this time. BOARD AND COMMITTEE ACTION: The Finance Committee is scheduled to meet on Thursday, January 7, 2021. STAFF RECOMMENDATION: Discussion and authorization to the City Manager the discretion to waive storage fees to American Airlines for November and December 2020. 44  CITY OF ROSWELL Finance Committee Roswell Convention Center 912 N. Richardson, Roswell, NM 88202 Thursday, January 7, 2021 at 9:00 a.m. ACTION REQUESTED: Discussion and consideration of Memorandum of Understanding between Chaves County and the City of Roswell. BACKGROUND: Initiated by: Joe Neeb Attached is the Memorandum of Understanding between the County and City. FINANCIAL CONSIDERATION: The County has received $5 million in state funding for economic development at the Roswell Air Center. LEGAL REVIEW: Sent for review. BOARD AND COMMITTEE ACTION: The Finance Committee is scheduled to meet on Thursday, January 7, 2021. STAFF RECOMMENDATION: Discussion and consideration of Memorandum of Understanding between Chaves County and the City of Roswell. 45  M-20-022 MEMORANDUM OF UNDERSTANDING BETWEEN CHAVES COUNTY AND THE CITY OF ROSWELL This is a Memorandum of Understanding between Chaves County, a political subdivision of the State of New Mexico, hereinafter referred to as “County” and the City of Roswell, New Mexico, hereinafter referred to as “City.” WHEREAS, the County has received Five Million Dollars ($5,000,000) in state funding for economic development at the Roswell Air Center, and WHEREAS, the City as the owner of the Air Center has agreed to coordinate with the County as to the expenditure of these funds, and WHEREAS, the County must encumber 5% or Two-Hundred and Fifty Thousand Dollars ($250,000) of the allocation by the end of February 2021, and WHEREAS, the City and the County have identified several infrastructure projects in which to utilize the Two-Hundred and Fifty Thousand Dollars ($250,000). NOW, THEREFORE the parties hereto agree as follows: I. SCOPE 1. The City’s contracted engineering firm Armstrong Engineering will prepare a plan for extending water, sewer, gas, electric, communications, etc. from the northeast corner of the Air Center to the southeast portion of the Air Center. 2. The City will upgrade and replace a water line sized in accordance with the engineering plan to the southeast portion of the Air Center. 3. The City will instruct Armstrong to develop a plan to increase enhanced parking for aircraft in the southeast side of the Air Center. II. SPECIFIC CONDITIONS 1. The City will be the project manager for these projects and will perform all inspections. The City will provide the County with all inspection reports. 2. The County shall serve as the fiscal agent and will therefore submit all status updates and reports to DFA. 3. The City will be solely responsible for paying its vendors, contractors, engineers, etc. 46 4. The City will provide the County with a detailed invoice and the County will reimburse the City within 30 days of receipt of a complete invoice. 5. The parties acknowledge that the County will be seeking reimbursement from DFA. As such, there may be times the County requests additional information from the City regarding the project. The City agrees to provide the County with the requested information within a timely manner. 6. This MOU will not be modified unless done in writing and signed by all parties. CITY OF ROSWELL, NEW MEXICO By: _______________________________________ Joe Neeb, City Manager Date: _____________________________________ CHAVES COUNTY By: ______________________________________ Stanton L. Riggs, County Manager Date: 2 47  CITY OF ROSWELL Finance Committee Roswell Convention Center 912 N. Richardson, Roswell, NM 88202 Thursday, January 7, 2021 at 9:00 a.m. ACTION REQUESTED: Discussion and consideration of EDA Grant financial commitment for RAC Dog House Project. BACKGROUND: Initiated by: Joe Neeb Information to be presented at meeting. FINANCIAL CONSIDERATION: Information to be presented at meeting. LEGAL REVIEW: There is no legal review required for this item. BOARD AND COMMITTEE ACTION: The Finance Committee is scheduled to meet on Thursday, January 7, 2021. STAFF RECOMMENDATION: Discussion and consideration of EDA Grant financial commitment for RAC Dog House Project. 48