Finance Committee

Regular Meeting of the Finance Committee City Hall – Large Conference Room 425 N. Richardson Thursday, September 7, 2023, at 2:00 PM Notice of this meeting was given to the public in compliance with Sections 10-15-1 through 10-15-4 NMSA 1978 and Resolution 23-40. ROLL CALL The meeting convened at 2:01 p.m. with Chairman Corn presiding, Councilor Heldenbrand present, Councilor Foster being absent. Staff present Della Andazola (via GoToMeeting), Abraham Chaparro, Chad Cole, Enid Costly, Jenna Lanfor (via GoToMeeting), Janie Davies, Robert Glenn, Toni Gomez, Jennifer Griego (via GoToMeeting), Becky Hicks, Juanita Jennings, Amalia Martinez, Mike Mathews, Ashley Myers-Palma, Elizabeth Prichard, Debbie Reyer, Lorenzo Sanchez, Tammi Smith, and Hess Yntema. Guests present Mark Brooks, Will Cavin, Rita Kane Doehoefer, Andrea Moore, Kerry Moore, Jane Ann Oldrip, Rene C. Otero, Mayor Timothy Jennings, Brandon Williams (via GoToMeeting) and Sally Yntema APPROVAL OF AGENDA Councilor Heldenbrand moved to approve the agenda. Chairman Corn seconded the motion. The motion passed with a 2-0 voice vote, with Councilor Foster being absent. ACTION ITEMS 1. Consider recommending approval of FY2024 Fleet Maintenance Purchasing Authorization Request within their FY2024 approved budget. Presented by Becky Hicks; this request covers proposed purchasing limits for the Fleet Maintenance vendors that we are able to use via a New Mexico State Price Agreement, GSA Contract, Sourcewell Contract or RFP. This authorization will give the City of Roswell departments authority to spend over the $60,000 purchasing limit published on the July 11, 2022, Memo from Joe Neeb. “(Purchases) Over $60,000, including Cooperative Purchasing, Price Agreements, Bids/RFP’s and Professional Services Contracts (will go) to Committee for recommendation to City Council for approval.” This request is to prevent an audit finding from multiple small purchases from various departments that might exceed the $60K and create a purchasing violation. What this request does not do is eliminate the need for single transactions over $60K to come through Committee and Council for approval.  After a brief discussion, Councilor Heldenbrand moved to recommend approval of the FY2024 Fleet Maintenance Purchasing Authorization Request to be placed on the consent agenda. Chairman Corn seconded the motion. The motion passed with a 2-0 voice vote, with Councilor Foster being absent. 2. Consider ratification of PO Request for purchase of two (2) new Autocar Sideloaders from MCT, Inc in the amount of $860,832.05 with FY2024 approved budgeted funds. Presented by Abraham Chaparro; this PO was requested for two (2) new Autocar Sideloaders. It was requested to lock in the trucks. Procurement is through an approved cooperative purchasing agreement which the City of Roswell is a member of. The approved FY24 Budget is $940,000 for the purchase. Actual cost of Sideloaders is $860,832.05 leaving a savings of $79,167.95. Solid Waste will be seeking approval to relocate savings toward additional equipment. Replacing: Unit 330 2015 Autocar ACX 92,463 miles Burned / Unit 316 2015 Autocar ACX 105,316 miles. Chairmen Corn asked if the Unit 330 2015 Autocar ACX and Unit 316 2015 Autocar ACX is on the list of items for disposal in action item 4. Abraham stated these old pieces of equipment were not on the disposal list in action item 4, but they would come back to the Committee with those requests. Councilor Heldenbrand thanked Abraham for the savings on the purchase, and made a motion to recommend consideration for the ratification of PO Request for purchase of two new Autocar Sideloaders from MCT, Inc. in the amount of $860,832.05 to be placed on the consent agenda. Chairman Corn seconded the motion. The motion passed with a 2-0 voice vote, with Councilor Foster being absent. 3. Consider recommending approval of Solid Waste Purchasing Authorization Request for Toter, LLC with general budgeted funds. Presented by Abraham Chaparro; this request covers proposed inventory purchase authorizations for Solid Waste. The purchasing authorization is a “not to exceed” number for Toter, LLC. This will allow Solid Waste to streamline the purchasing process and make purchases in a timelier manner. If we get close to the “not to exceed” amount, a change order will come back to the City Council for approval. The Finance Officer has approved this concept and will continue to be the check and balance with all purchase orders issued under this authorization. Previous three fiscal years budget for the 96-gallon containers were under funded. Councilor Heldenbrand asked how many containers the $150,000 would purchase, and if this was a year supply? Abraham stated this would purchase almost 3 loads with about 624 on each load, and that it is a year supply of containers. Councilor Heldenbrand made a motion to recommend consideration for approval of Solid Waste Purchasing Authorization Request for  Toter, LLC with a “not to exceed” amount of $150,000.00 to be placed on the consent agenda. Chairman Corn seconded the motion. The motion passed with a 2-0 voice vote, with Councilor Foster being absent. 4. Consider recommending adoption of Resolution 23-XX authorizing the Disposal of Certain Surplus Personal Property. Presented by Robert Glenn; this request covers old/obsolete equipment currently owned by the City. There are items for auction or scrap listed in Exhibit A & B of the agenda. If there are no bids on the items, they will be recycled or disposed of in other approved manners. If the item does not meet the auction reserve, staff has the option to rerun the auction or accept the highest bidders offer. After a brief discussion, Councilor Heldenbrand motioned to recommend the adoption of Resolution 23-XX authorizing the Disposal of Certain Surplus Personal Property to be place on the consent agenda. Chairman Corn seconded the motion. The motion passed with 2-0 voice vote, with Councilor Foster being absent. 5. Consider recommending approval for spending $105,883 from general funds as well as any additional funds received through restricted gifts, donation, grants or memorials for books, recorded books, DVD, processing fees and handling charges through the vendor Ingram. Presented by Enid Costley; Pursuant to the City of Roswell Purchasing Limits Policy, expenditures over $60,000 require committee recommendation to the Roswell City Council for approval. Ingram is Roswell Public Library’s vendor for books. They also provide the Library with catalog records, barcode and spine labels. We also purchase DVDs, and audio books through Ingram. Roswell Public Library uses state pricing agreement 90-00000-19-00032. Roswell Public Library is required to spend $72,549.00 in fiscal year 2024 on library materials. Authority New Mexico Administrative Code 4.5.2.9 C4 (spend at least $1.50 per person in the legal service area). The line item for Supplies Book Materials account 11014211-724102 is budgeted as $105,883.00. The line item for Supplies Processing Materials account 11014211-724104 is budgeted as $22,000. We also use this line item for book tape, mylar covers, labels, and repair supplies. We anticipate that we will spend $10,000 on processing fees with Ingram, which include catalog records, barcode labels, spine labels and handling charge. We anticipate that we will spend $10,000 on online books and audio books through the vendor Overdrive. Roswell Public Library accepts restricted gifts/donations/grants/memorial for library materials. Mayor Jennings complimented Enid on the nice program the Library has for kids. Councilor Heldenbrand motioned to recommend approval for spending of $105,883 from the general funds as well as any additional funds received through restricted gifts, donation, grants or memorials for books, DVD, processing fees and handling charges through the vendor Ingram to be placed the consent agenda. Chairman  Corn seconded the motion. The motion passed with a 2-0 voice vote, with Councilor Foster being absent. 6. Consider recommending approval to purchase a 2024 Vactor for the Waste Water Treatment Plant from Pete’s Equipment Repair Inc. of Albuquerque, New Mexico in the amount of $527,953.19. The FY24 budget this item at $500,000. The over budgeted amount of $27,953.19 will be transferred from a Maintenance and Repairs account. Initiated by Lorenzo Sanchez; the request is for the purchase of a 2024 Vactor, the Vactor unit is used to clean and maintain the City’s sewer collection system to ensure proper flow, prevent back-ups into homes or businesses and sanitary overflow out of manholes. This will replace Unit 355 which is a 2008 Vactor and has cost the department $292,719.77 in maintenance and repair costs over the last few years. The recommend replacement is every 10 years for this type of equipment. It was noted that a budget adjustment will be presented at the next Finance Committee Meeting for the transfer of $27,953.19 from the Maintenance and Repairs account. Councilor Heldenbrand motioned to recommend the approval to purchase a 2024 Vactor for the WWTP from Pete’s Equipment Repairs Inc. in Albuquerque, NM in the amount of $527,953.19 to be placed on the consent agenda with the understanding the $27,953.19 overage amount will be taken from the repairs and maintenance line item. Chairman Corn seconded the motion. The motion passed with 2-0 voice vote, with Councilor Foster being absent. 7. Consider recommending the presentation of the 2023 Roswell Water Utility Rate Study to City Council. Initiated by Robert Glenn; staff has completed the requested rate study and is requesting City Council’s review and input. Revisions to include depreciation and other adjustments requested at prior committee meeting have been completed. There was discussion on the handling of depreciation. Councilor Heldenbrand believes that as depreciation is a non cash item it should not be included as an expense when determining the cost of expense for each resident. The rate study shows that the water enterprise fund can’t stand on its own feet. The enterprise fund will have to use general funds to make ends meet in the current year. Councilor Heldenbrand read the letter included in the agenda from DFA highlighting the “entity’s General Funds cash balance is being depleted by a negitive18.09%” in the current approved budget. Mayor Jennings asked that we get information to the residents on ways to conserve water. There was no action taken. A special City Council Workshop is scheduled for September 26th at 5:00 p.m. for Robert to present the 2023 Roswell Water Utility Rate Study to the city councilors. 8. Consider recommending approval for funding for the Tobosa Carnival for the dates of May 6-19, 2024 in the amount up to $3,372.50, a reimbursement of 50% of total eligible expense of $6,745. Initiated by Juanita Jennings; the Tobosa Carnival is a 14-day event. The carnival begins May 6, 2024 with the possibility of 17 rides, 7-10 games, and 6-8 food booths. Potential traffic is based upon the 2023 event numbers estimated at 4,775 people with an average of 341 people per day. The 2024 carnival will be a great opportunity for the community to enjoy before summer heat begins. The applicant identified $6,745 in eligible expenses to be reimbursed at 50% rate totaling $3,372.50 to be awarded. This is the first Lodgers’ Tax application request for funding. After a brief discussion, Councilor Heldenbrand made a motion to recommend funding for the Tobosa Carnival for the dates of May 6-19, 2024 in the amount of up to $3,372.50, a reimbursement of 50% of total eligible expense of $6,745.00 to be placed on the consent agenda. Chairmen Corn seconded the motion. The motion passed with a 2-0 voice vote, with Councilor Foster being absent. 9. Consider recommending approval for funding for the Glory Days 4on4 Inc. Sling It Fling It for the dates of May 24-26, 2024 in the amount of up to $10,250, a reimbursement of 50% of total eligible expense of $20,500. Initiated by Juanita Jennings; the Glory Days 4on4 Inc. travels across the country to put on our 4on4 Flag Football Tournaments. In 2023, 94 teams participated with 2800 to 3500 attendees and 647 athletes. Of the athletes and their families were from greater than 50 miles away. The applicant identified $12,800 in eligible expenses to be reimbursed at 50% rate totaling $25,600 to be awarded. The Occupancy Tax Board identified some non-eligible items in the request. This is the first Lodgers’ Tax application request for funding from this event. After a brief discussion, Councilor Heldenbrand made a motion to recommend funding for the Glory Days 4on4 Inc. Sling It Fling It for the dates of May 24-26, 2024 in the amount of up $10,250, a reimbursement of 50% of total eligible expenses of $20,500.00 to be placed the consent agenda. Chairmen Corn seconded the motion. The motion passed with a 2-0 voice vote, with Councilor Foster being absent. 10. Consider not recommending approval for funding for the Roswell Symphony Orchestra for the Spring dates of February 24 & April 27, 2027 in the amount of up to $2,250, a reimbursement of 50% of total eligible expense of $4,500.00. Initiated by Juanita Jennings; the Roswell Symphony Orchestra spring concerts will take place on the evening of February 24, 2024 and April 27, 2024. Their two subscription concerts will take place at NMMI’s Pearson Auditorium and  anticipate 1500 concert-goers from New Mexico and Texas. The applicant identified $4,500.00 in eligible expenses to be reimbursed at 50% rate totaling $2,250 to be awarded. The Occupancy Tax Board did not recommend funding due to the on-going late reports of use of funds. The Fall 2022 reimbursement report was late and incomplete. An extension was granted. The Spring 2023 reimbursement report was due on July 28,2023. An extension was granted to provide all supporting documents and reimbursement request by August 10, 2023 per policy. The reimbursement request was late again and not sent until August 15, 2023. Approval to accept the Spring 2023 reimbursement late request is pending. Sally Yntema, President of the Board of Directors for the Roswell Symphony Orchestra addressed the Committee. She explained the resignation of the executive director at the time the reports were due for the prior Lodgers Tax Funding. She also stated that the Roswell Symphony Orchestra would continue to be here to support the City of Roswell and continue bring in artists and guests to the community. She asked if the committee would please reconsider the recommendation of the Occupancy Tax Board. Jane Ann Oldrip, a member from the Occupancy Tax Board also spoke on the behalf of the Roswell Symphony Orchestra and how she is supportive of the organization. Councilor Heldenbrand made a comment that they did apply and that the money is there and with that Councilor Heldenbrand made the motion to recommend funding for the Roswell Symphony Orchestra for the Spring dates of February 24 & April 27, 2027 in the amount of up to $2,250, a reimbursement of 50% of total eligible expense of $4,500.00 to be placed on the consent agenda. Chairman Corn seconded the motion. The motion passed with a 2-0 voice vote, with Councilor Foster being absent. 11. Consider recommending adoption of Resolution 24-XX for a budget adjustment for fiscal year ending June 30, 2024. Initiated by Toni Gomez. The New Mexico Department of Finance Administration (DFA), requires approval of a budget adjustment when increasing a revenue and/or expense in the approved budget. The final budget was submitted to DFA on 7/28/23 and the Law Enforcement Protection Fund (LEPF) was left off the budget due to not having the distribution amount in time for the 7/31/23 due date. The budget was returned by DFA to add the Law Enforcement Protection Fund (LEPF) before it could be approved by DFA. Fund 2255 (Law Enforcement Protection Fund) Revenues $227,000, Expenses $227,000.00. Councilor Heldenbrand made a motion to recommend the adoption Resolution 24-XX for a budget adjustment of fiscal year ending June 30, 2024 to be placed on the consent agenda. Chairman Corn seconded the motion.  The motion passed with a 2-0 voice vote, with Councilor Foster being absent. 12. Consider recommending approval to allocate $949,003.00 to hire Allen Roofing using ITB-23-019 for insurance roof repairs. Initiated by Jenna Lanfor; this request is for hail damage claim from 2021 and includes buildings 734, 1000, 1002, 1049, 1534, and 1535 require roof replacement. Allen Roofing is an approved contractor for ITB-23-019 has submitted proposals and Insurance Company has accepted them. State Wage Agreements received. PO will require NOI for State Wages, and Bond(s) per ITB. Funding for this project is included in the ROW cash balance. FOR THE RECORD: Councilor Foster arrived at 3:27 PM. Councilor Heldenbrand asked if the repairs would be fully covered by the insurance. The insurance claims are from 2021 so costs have gone up. The repairs will exceed the cost originally approved by the insurance company. According to Jenna she has been working with the insurance company and does believe the City of Roswell will get the full amount of depreciation back from the insurance upon completion of the repairs. Finance will be coming back to the committee with a budget adjustment for the repairs. Councilor Heldenbrand made a motion to recommend approval to allocate $949,003.00 to hire Allen Roofing using ITB-23-019 for insurance repairs on buildings 734, 1000, 1002, 1049, 1534, and 1535 to be placed on the consent agenda. Councilor Foster seconded the motion. The motion passed with a 3-0 voice vote. 13. Consider recommending approval to allocate $746,165.25 to hire Custom Construction using ITB-23-019 for insurance roof repairs. Initiated by Jenna Lanfor; this request is for hail damage claim from 2021 and includes buildings 734, 1000, 1002, 1049, 1534, and 1535 require roof replacement. Custom Construction is an approved contractor for ITB 23-019 has submitted proposals and Insurance Company has accepted them. State Wage Agreements have been received. PO will require NOI for State Wages, and Bond(s) per ITB. Funding for the project is included in the ROW cash balance. Councilor Heldenbrand asked if Jenna was working with the state insurance to get full reimbursement. Jenna is working with the insurance and contractors to get full the depreciation amount and reimbursement. Jenna is waiting on Custom Construction for their notice of intent on prevailing wage and bond. Councilor Foster made a motion to recommend approval to allocate $745,165.25 to hire Custom Construction using ITB-23-019 for insurance roof repairs to buildings 734, 1000, 1002, 1049, 1534, and 1535 to be place on the full city council agenda. Councilor Heldenbrand seconded the motion. The motion passed with a 3-0 voice vote. APPROVAL OF MINUTES 14. Minutes for August 3, 2023 Regular Meeting Councilor Heldenbrand moved to approve the August 3rd regular meeting minutes. Councilor Foster seconded the motion. The motion passed with a 3-0 voice vote. NON-ACTION ITEMS 15. Information Departmental Reports – Finance Presented by Janie Davies • DFA Budget Approval Letter – The letter from DFA states that the City of Roswell’s FY24 budget has been approved. DFA highlighted in the letter, “ Due to estimated expenditures and transfers exceeding estimated revenue, your entity’s General Fund cash balance is being depleted by -18.09%. Careful Control of expenditures and attention to revenue collection efforts is recommended to avoid further depletion of reserves.” The first quarter report is due to DFA October 31st. This report will be presented to the Finance Committee. Councilor Foster pointed out that the cash balance being depleted by the -18.09% is on the budgeted numbers not actual numbers. Janie confirmed that for budgeted purposes this would be normal. Whereas the City of Roswell has never spent more then we have collected. The biggest problem is capital expenditures being budgeted and started in one fiscal year and are completed Chad mentioned that the budget is distorted due to the City encumbering funds for capital projects and then projects coming to fruition in a following fiscal year. • GRT – The City of Roswell has received more GRT than budgeted for both July and August. GRT is being reported as gross and not net of the administration fee as reported in the past. • Cannabis Excise Tax – Is reported as actuals numbers and will be reported as gross as well. • Grant Status Report – Elizabeth gave a brief update on current grants. Public Affairs – Presented by Juanita Jennings • Lodgers Tax Report – There was discussion on short-term rentals properties reporting Lodgers Tax and the Bed Fee. We currently have 104 short term rentals advertising in Roswell with only 7 reporting. The City can put liens  against these properties. Public Affairs will provide the City Attorney with a list of the short-term rentals. The City Attorney will work on getting letters out to these property owners and will be the first step in collecting Lodgers Tax on non- reporting short term rentals. • Roswell Visitor Center – brief report by Juanita. • Convention Center Bed Fee – brief report by Juanita. Discussions regarding Bed Fee were discussed with the Lodger Tax Report discussions. Information Technology: n/a 16. FY24 Solid Waste Fleet Listing – was review by the Chairman and council members. Staff will continue to work on getting a fleet listing from every department. PUBLIC PARTICIPATION Mark Brooks with the Utilities Workers Union of American expressed his concerns with the current budget and how it fails to invest properly in public services for city residents and the employees that provide these services. He did urge The City to reconsider their stance on step increases and cost of living increases for employees in the current fiscal year. Rita Kane-Doehoefer a Roswell citizen asked when the final figures for the UFO festival would be released. Juanita Jennings responded that the UFO festival numbers would be presented at the October Finance Committee Meeting. ADJOURN The meeting adjourned at 4:07 p.m.