Finance Committee

Regular Meeting of the Finance Committee City Hall – Large Conference Room 425 N. Richardson Thursday, October 5, 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 (via GoToMeeting), Councilor Foster being absent. Staff present Della Andazola, Lance Bateman, Abraham Chaparro, Chad Cole, TJ Conyers, Amanda Dickerson, Jenna Lanfor, Kathy Lay, Janie Davies, Deanna Garcia, Toni Gomez, Jennifer Griego, Juanita Jennings, Jeremy Kirkham, Amalia Martinez, Mike Mathews, Matt Miller, Christopher Nairn-Mahan, Debbie Reyer, Lorenzo Sanchez, Tammi Smith, and Hess Yntema. Guests present Bruce Andler (via GoToMeeting), Mark Brooks (via GoToMeeting), Rita Kane Doerhoefer, Terri Harber, and Tom Kuemmerle. 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 Heldenbrand participating via GoToMeeting, and with Councilor Foster being absent. ACTION ITEMS 1. Consider adopting Resolution 23-XX approving budget adjustment for fiscal year ending June 30, 2024. Presented 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 Finance Department has performed a Quarter analysis and review, and is requesting a budget adjustment for line items in Exhibit “A”. These adjustments are for various grants and other departmental adjustments. Councilor Heldenbrand asked for an explanation as to why expenditures exceeded revenues by $4,162,474.15. Toni explained that $1,890,989.21 is for the roof repairs at the airport. This amount is in the cash balance we are just giving them the budget authority for it. There was $439,626.00 in the original capital fund projects budgeted worksheet but not included in the totals. Also $75,000 was adjusted for a school resource officer, this amount was added into the revenue in the original  budget from RISD but the expense was not added in. This gives them the budget authority for the school resource officer. A payroll correction in the amount of $1,071,059.94 was added. Also, $685,799.00 was adjusted to purchase CAT D8 Dozer, this amount is in the cash balance we are just giving them the budget authority for it. These amounts add up to the $4,162,474.15. Chairmen Corn asked about the $2,000,000 added in revenues and expenditures for the expansion of the Air Center Terminal Building. This will be removed from the budget adjustment, this was a grant that was just received and will not be used in the current fiscal year. Councilor Heldenbrand made a motion for the adoption the Resolution 23-XX approving the budget adjustment for fiscal year ending June 30, 2024 with the removal of the $2,000,000 from both the revenue and expenditures. Chairman Corn seconded the motion. The motion passed with a 2-0 voice vote, with Councilor Heldenbrand participating via GoToMeeting, and Councilor Foster being absent. 2. Consider recommending approval for the reallocation of capital equipment savings, and use of cash on hand to purchase a new CAT D8 Dozer from CAT Wagner in the amount of $1,178,418.26. Presented by Abraham Chaparro; for FY24 the approved capital equipment budget was $1,353,451.00 after the purchase of Two (2) Side- loaders for $860,832.05 it left a savings of $485,113.77. The remaining $693,304.49 will be taken from cash on hand. Current balance in Equity in Pooled cash was $4,804,493.46 as of September 29, 2023. Solid Waste is seeking to utilize the savings to purchase a new D8 Dozer. It will be purchased from CAT Wagner. Procurement is through Sourcewell No. #032119-CAT. Replacing: Unit 255 2010 CAT D6 Dozer. Trade in Value: $55,000. The trade in value was renegotiated to $70,000. Abraham did go over the comparison of the D8 Dozer compared to the D6 2010 Dozer. Councilor Heldenbrand pointed out the purchase price listed on the abstract does not account for the updated trade in value of $70,000. The purchase price should be $1,163,418.26. Abraham explained that the renegotiated trade in value occurred after the abstract was completed. Councilor Heldenbrand made a motion for the approval for the reallocation of capital equipment savings, and use of cash on hand to purchase a new CAT D8 Dozer from CAT Wagner in the amount of $1,163,418.26 be placed on the consent agenda. Chairman Corn seconded the motion. The motion passed with a 2-0 voice vote, with Councilor Heldenbrand participating via GoToMeeting, and Councilor Foster being absent. 3. Consider adoption of Resolution 23-XX certification of correctness of the physical inventory of assets for FY 2023. Presented by Deanna Garcia; subsection A of Section 12-6-10 NMSA requires at the end of each fiscal year for local governments to conduct a physical inventory of its assets. The physical inventory of assets must be approved for correctness by the City Council.  After a brief discussion, Councilor Heldenbrand made a motion for the adoption of Resolution 23-XX certification of correctness of the physical inventory of assets for FY2023 be placed on the consent agenda. Chairman Corn seconded the motion. The motion passed with a 2-0 voice vote, with Councilor Heldenbrand participating via GoToMeeting, and Councilor Foster being absent. 4. Consider recommending approval of a budget adjustment for the Keep Roswell Beautiful program budget to include full amount of awarded grant funding from the New Mexico Department of Tourism “Clean and Beautiful Grant” program. Presented by Kathy Lay; the original budget submitted was prior to grant award announcement. The original budget included an anticipated $25,000 revenue from the “Clean and Beautiful” grant with the City adding $25,000 as a match for a total budget of $50,000. The grant award was higher than anticipated, which will increase the revenue to $53,927.26, with the amount added by the City staying the same at $25,000, for a total budget of $78,927.26. The grant award is given in two payments, half at the beginning of the grant period and half after grant projects are completed and reporting is submitted at the end of the grant period. Councilor Heldenbrand asked if we are limited on the ways we can use the grant. Kathy explained that we submitted projects with the grant application. Exhibit A lists the approved project award schedule by the grant. Councilor Heldenbrand made a motion recommending approval of a budget adjustment for the Keep Roswell Beautiful program budget to include full amount of awarded grant funding from the New Mexico Department of Tourism “Clean and Beautiful Grant” program to the consent agenda. Chairman Corn seconded the motion. The motion passed with a 2-0 voice vote, with Councilor Heldenbrand participating via GoToMeeting, and Councilor Foster being absent. 5. Consider approval to ratify the large diameter emergency water line repair work to J&H Services Inc. for the water line repairs at Country Club Road and Coronado in the amount of $116,485.01 including GRT funded through the regular operating budget using the Infrastructure Maintenance and Repair Account. Presented by Lorenzo Sanchez; the City has a large diameter water line break on an 18” concrete cylinder transmission line at Country Club Road and Coronado. The large diameter water line repair work was awarded to J&H Services Inc. utilizing RFP-22-006 On Call Utility Repair Services. This is specialized repair work on concrete cylinder which requires an excavator, shoring equipment and welding steel reinforcement bands. J&H Services was selected to perform the repair work due to them providing the lowest quote. Councilor Heldenbrand made a motion for the approval to ratify the large diameter emergency water line repair work to J&H Services Inc. for the water line repairs at  Country Club Road and Coronado in the amount of $116,485.01 including GRT to be placed on the consent agenda. Chairman Corn seconded the motion. The motion passed with a 2-0 voice vote, with Councilor Heldenbrand participating via GoToMeeting, and Councilor Foster being absent. 6. Consider recommending approval for acceptance of the Law Enforcement Recruitment Grant (23-ZH0548-72) from the Department of Finance for the amount of $393,750 over a three-year time period. Initiated by Lance Bateman; the allocated funds will be disbursed 100% up to $225,000 for the first year, 50% up to $112,500 the second year, and 25% up to $56,250 the third year. Funds for the first disbursement must be expended from July 1, 2023, through June 30, 2024; the second 50% disbursement will be made in August 2024 to be expended by June 30, 2025; and the last disbursement of 25% will be made in August 2025 to be expended by June 30, 2026. Any amount not expended in each of the three years will be returned to the State of New Mexico, Department of Finance and Administration in the year that it is scheduled for reversion. Chief Bateman stated these funds will be used to hire two crime scene technicians and one administrative assistance for the training bureau. The technicians will also help with a new DNA database machine for firearms and brass. The City of Roswell will be the hub in Southeastern New Mexico for this machine. Councilor Heldenbrand made a motion for the recommendation of approval for the acceptance of the Law Enforcement Recruitment Grant from the Department of Finance for the amount of $393,750 over a three-year time period be placed on the consent agenda. Chairman Corn seconded the motion. The motion passed with a 2-0 voice vote, with Councilor Heldenbrand participating via GoToMeeting, and Councilor Foster being absent. 7. Consider recommending approval for the purchase of five 2024 Chevrolet Silverado 1500 pickups from Classic Chevrolet Fleet & Commercial in Grapevine, Texas using Fire Protection Grant Funding in the amount of $298,521.33. Initiated by Matt Miller; the fire department carried over $832,352 in Fire Protection Grant Funding from FY23. The FY24 Fire Protection Grant distribution is $1,055,560 for a total of $1,887,912. The letters are attached. Attached is the fire department inventory list of vehicles. The most recent vehicles are the ones we received from Eddy County and they ranged in age from 2007 to 2013. The last time the fire department purchased vehicles was in 2019. Attached are five price quotes from dealerships that have or will have the pickups in stock this month. We have chosen the lowest bid. No dealership on a statewide price agreement had five pickups of the same make and model nor could they guarantee they could get five in. Chairman Corn asked is any local dealerships were contacted for quotes. Chief Miller explained that he did test drive a unit from a local dealership. The local dealership could not get five identical units, the unit was more pickup than what is  needed in the fire department, and the unit was also out of the City’s price range. Councilor Heldenbrand made a request that the $150 doc fee be taken off of the quote for each unit. Councilor Heldenbrand also asked if spending these funds would harm any of the fire department’s plans for the reminder of the year. Chief Miller explained that it would not because of the way they watched the fire fund last year and the funds that were carried over. Councilor Heldenbrand made a motion recommending approval for the purchase of five 2024 Chevrolet Silverado 1500 pickups from Classic Chevrolet Fleet & Commercial in Grapevine, Texas using Fire Protection Grant Funding in the amount not to exceed $298,521.33, allowing room for the $150 doc fee to be removed, to the consent agenda. Chairman Corn seconded the motion. The motion passed with a 2-0 voice vote, with Councilor Heldenbrand participating via GoToMeeting, and Councilor Foster being absent. 8. Consider recommending approval to amend the 3Advertising Agreement for an additional $100,000 for a contract total of $335,000 for FY24 with the additional $100,000 dedicated to and from the air services marketing grant agreement as well as approve the purchase order for this should this item pass. Initiated by Juanita N. Jennings; the City of Roswell’s agency of record is 3 Advertising since January 2020 by RFP 20-002. The Roswell Air Center was awarded the Air Service Marketing Assistance Grant for a maximum $200,000 to be used for marketing and advertising. This is a housekeeping item to amend the current agency of record contract for the maximum allowable amount of the Department of Transportation Air Service Marketing Assistance Grant Service Agreement. The total air service marketing assistance grant funds is $400,000, which $200,000 comes from the State and the other $200,000 is from the City of Roswell. The current 3Advertising contract amount is $235,000. The amendment is for $100,000 for FY24 bringing the total contract amount to $335,000 for 3Advertising with the $100,000 solely dedicated to air service marketing per the grant funding. Legal Committee reviewed on September 28, 2022 and motioned to send to Finance Committee on October 6. 2022. It was approved October 13, 2022. Resubmitting for FY24 which is the second allotted $100,000 to be used. The $100,000 is currently budgeted in the Air Center account. Councilor Heldenbrand made a motion for the recommendation for the approval to amend the 3Advertising Agreement for an additional $100,000 for a contract total of $335,000 for FY24 with the additional $100,000 dedicated to and from the air services marketing grant agreement as well as approve the purchase order for this should this item pass to the consent agenda. Chairman Corn seconded the motion. The motion passed with a 2-0 voice vote, with Councilor Heldenbrand participating via GoToMeeting, and Councilor Foster being absent. 9. Consider approval to adjust prioritization and funding allocations for FY24 Capital Fund budgeted projects. Initiated by Jenna Lanfor; the following are line items in the airports capital fund projects. The projects listed in the original FY24 budget have changed due to information regarding new grant opportunities, grant expiration dates, and private investment changes.  RAC Task Order I Parking Lot (MAP Grant) $151,306.00. Armstrong Engineering Actual Cost $181,180.63, (-$29,847.63) Tax was not included in PO.  RAC Task Order I Parking Lot (MAP Grant) $1,295,975.00. Constructors Actual Cost $982,471.46.00, ($313,503.35) Unspent Grant Expired PO Closed  RAC Task Order A SE Waterline Infrastructure Project Design Only Original FY21 PO $350,108.00. Armstrong Engineering Actual Cost $208,860.93 paid out in FY21-FY23 job complete; Nothing should have been carried over to FY24 budget. Louis Najar finished the work to save the city money. $141,247.51 remained PO Closed.  RAC Purchase RUBB Hangar Original FY22 PO $700,895.00. RUBB Actual Cost $588,172.40 paid out FY22 Carry Over FY24 $112,722.60 Canceled 08/28/2023  Task Order D Ascent MRO Design and Construction Phase I FY22 PO $1,342,617.32. Armstrong Engineering Actual Cost $967,991.95 paid out in FY22-FY23 Cancelled 08/28/2023 Project Cancelled  Ascent Aviation Horizontal Project $1,657,383.00 County Legislation Grant; Project Cancelled Removed from Budget  Task Order E Professional Services Agreement MAP Apron Phase I FY22 PO $525,256.00. Armstrong Engineering $316,177.45 paid out FY22-FY23 PO Closed 03/2023 remaining $209,078.55 released back to budget FY23  MAP Rehab Phase I project moved to FY25 $2,653,644.00 released back to FY24 budget  Dump Plow Roberts Truck Center, Inc PO 22200895 carried over from FY23 no changes  RAC Tower 2 Installation J & G Electric PO 22202086 Cancelled 04/24/2023  Task Order G Master Plan Armstrong Consulting PO 22300214 carried over from FY23 no changes  17/35 Runway Rehabilitation PO Armstrong Consultants PO 22300266 Closed 03/13/2023 Needs to be reopened to pay final invoice $101,666.00. Grant reimbursement will be submitted to FAA (AIP 3-35-0035-048-2022) and State $93,270.00, City $8,396.00.  Building 611 Fire Suppression Project Cancelled for now $200,000.00  Building 1000 Remodel Project $112,520.00 no changes  Foundation and Installation of the RUBB Hangar $1,000,000.00 Project Cancelled reallocated funds to added projects.  ILEA Fire Alarm System FY23 PO 22301231 $166,400.00 tax excluded added tax $179,226.00 FY24 City expenses $50,216.00 Project Complete  ILEA HVAC Chiller Rental FY23 PO 22302305 $104,674.00 should have carried  over $79,035.00. ILEA (State Department) is reimbursing $15,148.00  ILEA HVAC Chiller Replacement FY23 PO 22301232 $554,800.00 tax excluded and additional work for replacement of actuators $67,563.00 Total $622,363.00, FY23 Expenditure $415,261.00. FY24 City Expenses $207,101.00  Task Order I RUBB Hangar Design and Geotech FY23 PO 22302418 $78,933.00 PO. Armstrong Consulting paid $78,933.00 Closed 06/07/2023 should not be a carry over. FY24 Added Projects  SE Corner Expansion Original budget had 4,876,660.00 allocated after Phase I completion $2,275,284.00 remains for continuation to Phase II/II 100% Reimbursable Expires 06/24  Strategic Plan $233,000.00 State Aviation Grant Reimbursable $209,700.00 City Expenses $23,300.00  Airfield Lighting Maintenance (ADB), and Parts $380,00.00 State Aviation Grant Reimbursable $342,000.00 City Expenses $38,000.00  BLM Pit $300,000.00 BLM Lease Agreement 100% Reimbursable  Sweeper $325,000.00 State Aviation Grant Reimbursable $292,500.00 City Expense $32,500.00  BLM Taxiway $5,500,000.00 State Aviation Grant 100% Reimbursable Project Savings City Expense $1,940,345.00 Chairman Corn asked where the money was reverted to. Jenna explained that the money was reverted back to the grant last year and the PO was closed, it should have never been on the original budget. Chairman Corn also asked about the HVAC Chiller for the ILEA building. Jenna stated that it has been manufactured and the company is holding it so we don’t have the added cost of the crane twice. Councilor Foster asked about the Rubb Hanger and if the $112,723 is part of the setup that was cancelled. Jenna explained that was correct and we currently don’t have a user for the Rubb Hanger and is tying up funds until we decide what we are going to do with it. Councilor Heldenbrand followed up with asking if we should leave the $112,723 in case it is needed. Jenna explained that if we need to we could use the $1,940,345.00 in project savings for the setup of the Rubb Hanger. Councilor Heldenbrand asked were the total airport budget stood. Janie explained that we did not increase the budget we are changing the projects that were approved in the original budget. Chairman Corn asked if we were going to be able to complete projects in the current fiscal year. Jenna said they did plan on completing everything in the current fiscal year, and the only project that would likely have carryover is the $5.5M on the BLM Taxiway. Councilor Foster made a motion for the approval to adjust prioritization and funding allocations for FY24 Capital Fund budgeted projects to be placed on the consent agenda. Chairman Corn seconded the motion. FOR THE RECORD: Councilor Foster arrived at 2:47 PM. FOR THE RECORD: Councilor Heldenbrand lost his connection at 2:56 PM via GoToMeeting. The motion passed with a 2-0 voice vote, with Councilor Heldenbrand being absent. APPROVAL OF MINUTES 10. Minutes for September 7, 2023 Regular Meeting Councilor Foster moved to approve the September 7th regular meeting minutes. Chairman Corn seconded the motion. The motion passed with a 2-0 voice vote, with Councilor Heldenbrand being absent. NON-ACTION ITEMS 11. Information Departmental Reports – Finance Presented by Janie Davies  GRT – The City of Roswell has received more GRT than budgeted for both July, August, and September. GRT is currently 18.12% above budgeted amounts.  Cannabis Excise Tax – We received $26,592 for the month of September. With nothing being budgeted in July we have a 112.55% variance in budgeted vs. actual. There was discussion on what the City was going to use the funds for. There are no restrictions on these funds. Chief Bateman was asked by Councilor Foster if there was an added cost to the police department for monitoring if drivers are under the influence. The only need in the police department would be funds for overtime. Chief Bateman might be able to use funds for education in the local schools in the future. Public Affairs – Presented by Juanita Jennings  Lodgers Tax Report – brief report by Juanita. Occupancy rate for August was 54.4% with $123,242 received in Lodgers Tax.  Roswell Visitor Center – brief report by Juanita.  Convention Center Bed Fee – brief report by Juanita. There was $59,332 received in August. Information Technology: n/a 12. UFO Report – The UFO Report was handed out and presented by Juanita Jennings. Councilor Foster stated that you can’t really see the benefit of the UFO Festival the week of the festival. The festival puts heads in beds 365 days a year. And in the future whoever runs the festival needs to have a clear direction and the understanding Lodgers Tax is to be run correctly. Chairman Corn stated that the challenges need to revisited and reworded. Chairman Corn can’t make heads or tails of the report, there needs to be a way to report the information so it can be easily understood, it needs to be cleaned up, and a positive reflection of the festival. Hess asked about the $71,000 in-kind donation from SkyElements Drone Show. TJ responded that SkyElements Drone Show had stated that they gave us a $71,000 discount off their normal rate. Rita asked on page 4 how was the 13,900 people each day of festival downtown and at the Roswell Convention Center counted. Juanita said this number was based off the trash collection number. Chad asked on page 6 about ticket sales of 477 and a price per ticket of $25.93 how was the direct economic impact without tickets $497,835.36 calculated, and what is the difference of revenue on page 9 for $16,585 vs the direct ticket spending of $12,370.27 calculated. Juanita stated this was calculated with the state’s economic impact calculator. TJ added that difference was the VIP tables that were sold. 13. Financial Review – No report. For the Record: Councilor Heldenbrand rejoined the meeting at 3:37p.m. via GoToMeeting. Lorenzo Sanchez – let the committee know that on the Capital Funds budget there was $630,645 that should not have been carried over to FY24. Of these funds, $116,485 is going to be used for the emergency water line break. This will leave a project savings of $514,160 in the capital fund. This has been approved by infrastructure committee and does not have an effect on the budget. This is for informational purposes only. PUBLIC PARTICIPATION Rita Kane-Doehoefer a Roswell citizen asked on the purchase CAT D8 Dozer did the City even check to see if the current dozer could be reconditioned. Abraham responded that the current dozer has had the bottom under carriage reconditioned once. The dozer is too small for the City’s needs and we have extinguished the life of the unit. Chairman Corn added that with heavy equipment this machine is too small for the job it is being asked to do currently and in the past on a daily basis. Tom Kuemmerle with Uncle Suds Laundry expressed his concern with the water rate study and the purposed rate increased within the study. Chairman Corn responded that the purposed rate increases would be discussed in the public hearing at a City Council Meeting and Tom would be able to present his concerns at that time. ADJOURN The meeting adjourned at 4:05 p.m.