Finance Committee

Regular Meeting of the Finance Committee City Hall – Large Conference Room 425 N. Richardson Thursday, April 6, 2023 Notice of this meeting was given to the public in compliance with Sections 10-15-1 through 10-15-4 NMSA 1978 and Resolution 23-01. ROLL CALL The meeting convened at 2:00 p.m. with Chairman Corn presiding; Councilor Heldenbrand, Councilor Perry present; and with Councilor Foster being absent. Staff present: Randy Bunch, Matt Miller, Jeremey Kirkham, Della Andazola, Amalia Martinez, Robert Glenn, Lorenzo Sanchez, Jennifer Griego, Louis Najar, Jim Buress, Elizabeth Prichard, Jessica Collier, Chanel Rey, Janie Davies, Karen Sanders, Caroline Brooks, Abraham Chaparro, Colette Hall, Becky Hicks, Juan Fuentes, Juanita Jennings, Hess Yntema, Cloe Medrano, Justin Holcombe, Joe Smith, and Dan Fuller Guests present: Robert Tyme, Morgan Fennis, Terri Harber, Councilor Oropesa, Donavon Fulkerson, Anne Baker, Rita Kane Doehoefer, Valli West, Cindi Torres, Mayor Jennings, Jim Ball, Jose Zelaya, and Councilor Best, APPROVAL OF AGENDA Councilor Heldenbrand motioned to approve the agenda adding an Executive Session. Councilor Perry was the second. A voice vote was 3 -0, and the motion passed, with Councilor Foster being absent. 1. APPROVAL OF REGULAR MEETING MINUTES Councilor Heldenbrand motioned to approve minutes for March 2, 2023, Finance Committee Meeting. Councilor Perry was the second. A voice vote was 3 –0, and the motion passed, with Councilor Foster being absent. NON-ACTION ITEMS 2. Department Reports: Finance: Mr. Fuentes presented information on the GRT report for March and updates on Capital Projects, Capital Appropriations, and Grants. Public Affairs: Mrs. Jennings presented on the Public Affairs department, Roswell Convention Center, Roswell Visitor Center, Convention Center Bed Fee, and Lodgers Tax Report for January activity and bed fees and occupancy. 3. Discussion – FY 2024 Revenue Estimates: Presented by Chanel Rey, the revenue projects for the fiscal year 2024. 4. Discussion – RFP 23-005 Tweedy Farm Lease: Present by Jessica Collier, the city posted RFP-23-005 Tweedy Farm Lease. Upon Evaluation, it was determined that  the formula in the RFP to calculate cost points was incorrect. The formula used was to award points to the lowest offeror, and in this instance, points should be awarded to the highest offer. The RFP has been canceled and re-issued with the correct information. The Tweedy Farm Lease is now RFP-23-005 (2nd Posting), which opened on Sunday, March 19, 2023. Contract Execution is scheduled for June 1, 2023. 5. Discussion – Changes to customer’s water bills: Initiated by Robert Glenn, we have had several complaints that the past due amount was not noticeable when the past due amount is due and when the customer’s water is subject to be shut off. 6. Discussion – Revisions of Chapter 26, Utilities, Divisions 1-5, specifically Article II Sections 26-36 through 26-49 relating to the utility rate structure. The discussion will focus on the rate structure, not the actual rates.: Initiated by Robert Glenn, this is the second discussion of the revision of Chapter 26 of the Roswell City Code with the Finance Committee. Infrastructure Committee is working on the ordinance revisions. However, Article II sections 26-36 through 26-49 references to rates. We would recommend removing Article II sections 26-36 through 26-49 and creating a new article for all rate information. We would also request guidance on the structure of rates. Do we use the premise of a higher base rate to cover all operations expenses? The second option is to have a lower base rate and then use a cost recovery method for services not generally used for everyone. A sample cost recovery method is attached for discussion. ACTION ITEMS 7. Discussion and recommendation of FY 2023 Capital Project: Presented by Councilor Robert Corn. Councilor Corn requested that the Finance Committee be provided an update by Department Directors on FY 2023 Active and Inactive Capital Projects. For discussion only, no recommendation was made. FOR THE RECORD: Councilor Foster joined the Finance Committee meeting at 3:24 p.m. 8. Resolution 23-XX - Consider approval of Resolution 23-XX approving budget adjustment for the fiscal year ending June 30, 2023.: Presented by Chanel Rey, this is a housekeeping item. DFA’s reporting system (LGBMS) requires approval of a budget amendment when increasing a revenue and/or expense in the approved budget. Councilor Perry motioned to send to the full City Council on the consent agenda a recommendation to approve Resolution 23-XX adjusting the budget for the fiscal year ending June 30, 2023, with the expenses of various funds of $422,384, Consent form 1101 general fund expenses $42,977 and 5200 solid waste expenses  $379,407. Councilor Foster was the second. A voice vote was 4-0, and the motion passed. 9. Consider approval of Award Recommendation for RFP-23-011 Special Audit Services and authorization for the City Manager to enter into a contract with Jaramillo Accounting Group: Presented by Janie Davies, the City posted RFP-23- 011 Special Audit Services on April 19, 2023. One (1) proposal was received on March 21, 2023. The Evaluation Committee completed its review, and is recommended to award this contract to Jaramillo Accounting Group. Councilor Perry motioned to send the award recommendation for RFP 23-011 special audit services for the City Manager to enter into a contract with Jaramillo Accounting Group award to the full City Council with a recommendation. Councilor Heldenbrand was the second. A voice vote was 4-0, and the motion passed. 10. Consider recommending approval of FY 2023 Fleet Maintenance Purchasing Authorization Request: Presented by Becky Hicks, this request covers proposed purchasing limits for the Fleet Maintenance vendors that we can use via a New Mexico State Price Agreement or RFP 23-010. This authorization will give the Fleet Department authority to spend over the $60,000 purchasing limit but is not expected to exceed $375,000 for any one vendor. Committee’s consensus is that they do not need to recommend approval of the FY 2023 Fleet Maintenance purchasing authorization request. No action was taken, informational only. 11. Consider approval of new Purchase Order to First Vehicle Group for $225,000 for vehicle maintenance and repair.: As presented by Matt Miller, the City of Roswell Fire Department requests a PO for First Vehicle. First Vehicle was awarded the contract of RFP-22-007. This requested amount is $225,000 to cover the costs of preventative maintenance and repairs for the Fire Department. Councilor Heldenbrand motioned to send to the full council for approval of the new purchase order to First Vehicle Group for $225,000 for vehicle maintenance and repair for the Fire Department. Councilor Perry was the second. A voice vote was 4- 0, and the motion passed. 12. Consider approval to move forward with flooring replacement/repairs and exterior signage at Roswell Museum using previously allocated City capital project funds: Presented by Caroline Brooks, the city capital funding in the amount of $600,000 for flooring and $120,000 for exterior signage was approved with the FY23 budget. $709,000 in state appropriations were also allocated for museum improvements and is being used for a master plan and planning through construction administration for the flooring, signage, move of the museum store and lobby, and façade updates.  FOR THE RECORD: Councilor Heldenbrand stepped away at 4:00 p.m. and returned at 4:01 p.m. Committee’s Consensus is that the Finance Committee is comfortable with the Roswell Museum & Art Center moving forward with the RFP. No action was taken, informational only. 13. Recommend award of ITB-23-011, N. Atkinson Rehab Project to Constructors Inc., in the amount of $3,335,936.08, which includes GRT. (Please Note that this Item was also on the Infrastructure Committee Agenda of 3.27.23. Infrastructure made a recommendation to award and to send to the full City Council for ratification. It is being sent to both Finance & Infrastructure due to the amount of monetary shortfall): Presented by Louis Najar, bids received on March 14, 2023, for the subject project have been reviewed. Two bids were received: (Amounts include Tax of 7.7083%). 1. Constructors Inc., Carlsbad, NM $3,335,936.08 2. Adame Construction, Los Lunas, NM $4,064,641.97 Engineer’s Estimate $2,816,011.96 Termini is N. Atkinson – Cherry St. to College Ave. Recently completed Atkinson from 2nd to Cherry was completed at the cost of $2,125,687.40. No action was taken, informational only. 14. Approve the repair of the broken 36” Large Diameter Water Line located at 603 E. Alameda. A quote for the repair was received from Smithco Construction through RFP-22-006 - On Call Utility Repair Services in the amount of $49,500 plus GRT, which amounts to $53,006.09. Presented by Lorenzo Sanchez, on Saturday, January 14, 2023, the City was advised of a water leak. It was found to be a leak on the existing 36” concrete cylinder water main located in the yard of 603 E. Alameda. City Water Department was able to turn off and isolate the 36” water main. Valves were shut off at Garden/railroad tracks and 3rd/Garden. The 36” water main was constructed in 1987. The plans show the leak’s location as City Property, but it was verified at the Chaves County Clerk’s office that the City has no easement nor owns the property. The City has obtained a right-of-entry work permit to allow for the repair of the water line. The leak is adjacent to a house and in a fenced yard where old cars and personal items are stored. No action was taken, informational only. FOR THE RECORD: Councilor Perry stepped away at 4:37 p.m. and returned at 4:37 p.m. 15. Consider recommending approval of the RFP/Scope of work for Credit Check Services. Presented byRobert Glenn/Janie Davies, this request covers proposed Credit Check Services for new and existing city utility customers. We want the provider to furnish a credit assessment, ID verification and Red Flag compliance.  Councilor Heldenbrand motioned to send to the full City Council for approval of the RFP/Scope of work for credit check services. Councilor Perry was the second. A voice vote was 3-1, and motion passed with Councilor Foster voting no. 16. Consider recommending approval of the RFP/Scope of Service for Debt Collection Services. Presented by Robert Glenn/Janie Davis, the City of Roswell, NM (“City”) is requesting proposals from qualified businesses or individuals (“consultants”) to provide debt collection services to help the city collect delinquent utility accounts. FOR THE RECORD: Councilor Perry stepped away at 5:56 p.m. and returned at 5:57 p.m. Councilor Foster motioned recommending for approval of the RFP/Scope of service for the debt collection services to be sent to the full City Council. Councilor Perry was the second. A voice vote was 4-0, and the motion passed. 17. Consider approval of Award Recommendation for RFP-23-012 Emergency Ambulance Services and authorization for the City Manager to enter into contract negotiations with American Medical Response Ambulance Services. Presented by Daniel Fuller, the city posted RFP-23-012 Emergency Ambulance Services on February 19, 2023. Three (3) proposals were received on March 21, 2023. The Evaluation Committee completed its review, and it is their recommendation to award this contract to American Medical Response Ambulance Services. Councilor Perry motioned to be sent to the full City Council recommendation for the award of RFP-23-012 Emergency Ambulance Services and authorization for the City Manager to enter into contract negotiations with American Medical Response Ambulance Services. Councilor Hildenbrand was the second. A voice vote was 4-0, and the motion passed. 18. Access Control Doors – Consider approval to increase the current purchase order ($269,135.09) for J & G Electric for additional expenditures for security upgrades to include TSA required New Server Room ($26,443.96); additional Access Control Doors ($43,626.19). Prepared by Jeff Bechtel and presented by Jennifer Griego, the original PO issued to J & G Electric is for $269,135.09. TSA required the existing Air Center Server be relocated to a new room with controlled doors. The cost of the server room was not included in the initial scope of work. Councilor Hildenbrand motioned recommending the approval to increase the current purchase order for J & G Electric for additional expenditures for security upgrades to include TSA required new server room $26,443.96 and additional access control doors $43,626.19 to be sent to the full City Council. Councilor Hildenbrand was the second. A voice vote was 4-0, and the motion passed. 19. Runway and Taxiway Painting – Consider approval to reallocate funds from 51004332 817504 Capital Outlay Infrastructure in the amount of $25,060.17 to 51004332 614005 M&R Field for contracting Highway Supply to paint certain runway centerline and taxiway lead-in-lines at the RAC under the State Purchasing Agreement. Presented by Jennifer Griego, the centerline on Runway 21 and 03 ends have faded and is in need of repainting, as well as the lead-in lines for taxiways Delta and Foxtrot in order to comply with FAA Part 139 inspection minimum standards. The 2023 FAA annual inspection is April 4 through 6, 2023 Councilor Perry motioned to send to the full City Council on the consent agenda a recommendation for runway and taxiway painting through the reallocation of additional funds from 51004332-817504 for capital outlay and infrastructure in the amount of $25,060.17 and 51004332-614005 for M & R Field for highway supply to paint the runway. Councilor Foster was the second. A voice vote was 4-0, and the motion passed. 20. Consider approval to increase PO 22301754 $152,342.62 by $46,220.90. Presented by Jennifer Griego, during demolition and excavation, the contractor discovered a filled-in basement under the slab foundation. The basement contained -2 wash gravel as the fill. Armstrong Engineers recommend the removal of the basement and gravel along with backfill. The dump fees were also not included in the original bid. Councilor Perry moved to postpone the item until the next Finance Meeting to consider the contract. Councilor Foster was the second. A voice vote was 4-0, and the motion passed. 21. Recommending approval to the City Council of a purchase of an emergency generator and installation for the Roswell Recreation and Aquatic Center in the amount of $331,127.80. Presented by Colette Hall and Justin Holcombe, pursuant to the City’s Purchasing Limits Policy, an expenditure over $60,000 requires a committee recommendation to City Council for approval. The Recreation Department is asking to procure an emergency generator and install it for the amount of $331,127.80. Councilor Foster motioned to send to the full City Council recommendations for the approved $331,127.80 for the installation of the Roswell Recreation and Aquatic Center emergency generator. Councilor Perry was the second. A voice vote was 4- 0, and the motion passed. 22. Approval for Capital Outlay funds in 2615-4241-817504 to be reallocated for the Recreation and Aquatic Center mold abatement, natatorium locker rooms, and gym. Presented by Colette Hall, Emergency Generators are budgeted at $550,000 in 2016-4241-817504 Capital Outlay. The generator and installation have been quoted at $331,127.80, leaving a balance of $218,872.20. Recreation would like to use the portion of the remaining balance at the Recreation and Aquatic Center for mold  abatement in the natatorium, the installation of shower stalls with new plumbing hardware and fixtures for the natatorium locker rooms, and painting the gym floor. Councilor Heldenbrand motioned to approval the Capital Outlay funds in 26154241- 817504 to be reallocated for the recreation and Aquatic Center for mold abatement in the natatorium and gym the amount of $218,872.20. Councilor Perry was the second. A voice vote was 4-0, and the motion passed. FOR THE RECORD: Councilor Heldenbrand left at 5:55 p.m. 23. Executive Session scheduled right after Financial Committee meeting FOR THE RECORD: Councilors did not go into an Executive Session. PUBLIC PARTICIPATION: Jessica Lightball asked questions about zero water consumption rates and disconnections. ADJOURN The meeting adjourned at 6:11 p.m. 1234