Finance Committee

Regular Meeting of the Finance Committee City Hall – Large Conference Room 425 N. Richardson Ave. Thursday, February 1, 2024, 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 2:00 p.m. with Chairman Corn presiding, Councilor Cavin, Councilor Heldenbrand, and Councilor Johnson being present. STAFF PRESENT Della Andazola, Bruce, Andler, Caroline Brooks, Jim Burress, Abraham Chaparro, Chad Cole, Tommy Jo Conyers, Janie Davies (via GoToMeeting), Robert Glenn, Toni Gomez, Jennifer Griego, Melissa Garcia (via GoToMeeting), Amalia Martinez, Mike Mathews, James MacCornack, Ashley Myers-Palma, Debbie Reyer, Lee (Mac) Rogers, Lorenzo Sanchez, Tammi Smith, and Hess Yntema. GUESTS PRESENT Patricia Andrade, Vicki Burress, Jay Da Pont, Rita Kane Doerhoefer, Sandra England, Terri Harber, Juliana Halvorson, and Kerry Moore. APPROVAL OF AGENDA Councilor Cavin made a motion to approve the agenda. Councilor Johnson seconded the motion. The motion passed with a 4-0 voice vote. Chairman Corn had a learning moment for the committee in the procurement process. Mike explained the City will issue ITB’s, Invitation to Bid, according to procurement laws from contractors on our ITB list. Request for Proposal, RFP, can also be issued and are done so following procurement laws. The City can also use CES, Cooperative Education Services, vendors. CES vendors are not just for educational entities but is also availability to government agencies. With CES vendors they don’t have to bid on projects, but CES does get a 3% fee off of the top of the contract. Hess added that CES vendors can be cheaper, but 50% of the time they are higher. Mayor Jennings added that we need to check the vendors that are bidding on the City’s projects and make sure we are getting quality work done. Councilor Johnson also brought up the City operates under price agreements as well. Hess added that we can also piggy back off of federal and state price agreements. ACTION ITEMS 1. Approval to award ITB 24-002 (rebid) for construction of the General Douglas L. McBride Veterans Memorial Pavilion Addition in the amount of $477,841.37 (including GRT) to Waide Construction.  -Funding Source – This item will be funded through State appropriation 23- HZ4074 for $410,558.85. Leaving a shortage of $67,282.52. A budget adjustment in the amount of $67,282.52 is being requested from the General Fund. Presented by Mac Rogers. This request is for consideration to award ITB 24-002 rebid for construction of the General Douglas L. McBride Veterans Memorial Pavilion Addition in the amount of $477,841.37 (including GRT) to Waide Construction. Per direction from the Chaves County Veterans Group - the project would include two Honor Guard shelters to match the existing committal shelter. As the initial bid amount was greater than the architect’s opinion of probable construction cost. We proceeded to negotiate a best and final offer with the only bidder. Funding for this project is provided in part through state appropriation 23- HZ4074 in the amount of $410,558.85. This action is requesting $67,282.52 from the General Fund for the excess cost. Councilor Johnson asked how many working days this project is estimated to take before completion. Mac responded that the number of working days had not been worked into the contract, but he estimates 9 months. Hess recommended that the finance committee vote on the action item and the line item for the $67,282.52 in the general fund be determined at City Council meeting. Councilor Heldenbrand made a motion for the recommendation for the approval to award IITB 24-002 (rebid) for construction of the General Douglas L. McBride Veterans Memorial Pavilion Addition in the amount of $477,841.37 (including GRT) to Waide Construction with the line item for the $67,282.52 to be determined at the City Council meeting to be placed on the full city council agenda. Councilor Johnson seconded the motion. The motion passed with a 4 - 0 voice vote. 2. Consider approval to hire Waide Construction in an amount not to exceed $300,000 using RFP Contract number 23-013 for general contracting services for the Roswell Museum flooring renovations phase II. -Funding Source - State appropriation 23-ZH5040 for $300,000.00 Presented by Mac Rogers. Quotes have been requested on 1/8/2024 from general contractors on the RFP-23-013 Construction Services list for the Roswell Museum Flooring renovations Phase II. Only one response was received. This request is for approval to hire Waide Construction in an amount not to exceed $300,000 using state appropriation 23-ZH5040. Two epoxy terrazzo corridors will be able to be installed in the north and south ends of the building with priority given to the southern portion for the pending store move. Chairman Corn asked if this would zero out the appropriation. Mac responded that the appropriation was for $638,000. The other part of the appropriation will go towards the construction of the store move. Chairman Corn noted there was  5 months to complete the construction of the floor and bring the other construction amount for the store move to the Finance Committee. Councilor Heldenbrand asked who was responsible for the project if it is not completed by the June 30, 2024 revision date of the state appropriation. If the work is not completed by the June 30, 2024 revision date the City will have to cover the cost of the project from the general fund. This is a concern of Councilor Heldenbrand. The City needs to work on starting and finishing projects on time. Chairman Corn reiterated that we need to be ready to start projects when we are requesting state appropriation, and that if we get state appropriations, they need to be spent with zero funds being reverted back to the state. Mayor Jennings noted that we should have been asking for a reappropriation for an extension on the time period. Councilor Cavin made a motion for the recommendation for the approval to hire Waide Construction in the amount not to exceed $300,000 using RFP Contract number 23-013 for general contracting services for the Roswell Museum flooring renovations phase II to be placed on the full City Council agenda. Councilor Johnson seconded the motion. The motion passed with a 4-0 voice vote. 3. Consider a recommendation for PO for pavement maintenance overlay to Brasier Asphalt in the amount of $300,000 which includes GRT. -Funding Source - This is an approved FY24 budget item in the Road Fund and costs would be reimbursed through Street Improvement Grant Agreement per NMDOT Control Number C2233308. Presented by James MacCornack. City received a street improvement grant through NMDOT in the amount of $300,000. Engineering staff is proposing to utilize these funds to perform pavement maintenance and repair on a segment of the Roswell Air Center perimeter road. This segment of roadway was affected during the SE Roswell flood event in 2021. In addition, City has opportunity to submit for reimbursement through State Department of Homeland Security and Emergency Management for this project. If granted, reimbursement would be 75% of project cost, received at unknown future date. Councilor Johnson asked if we would overlay as much of the roadway we could for the $300,000. James stated that is the intent of the Engineering department. Councilor Heldenbrand made a motion to for the recommendation of PO for pavement maintenance overlay to Brasier Asphalt in the amount of $300,000 which includes GRT to be placed on the consent agenda. Councilor Johnson seconded the motion. The motion passed with a 4 - 0 voice vote. 4. Consider approval to allocate Capital Outlay funds and approve Task Order K for Engineering Services to Armstrong Consultants for design of New Electrical Vault and Install New Radio Controller Equipment for airfield lighting at the Roswell Air Center as well as approve the purchase order for this project if passed. -Funding Source - RAC Task Order K for design is funded through a MAP 23 Grant in the amount of $468,750; $13,223.19 local share for a total of $481,973.19 which includes NMGRT. This was not budgeted in the FY24 Airport Enterprise Fund. The local share will come out of their project savings budget line item. Presented by Jennifer Griego. An FAA Grant will fund the majority of this project using MAP 23 funds. The Grant Agreement was received in September 2023. The plan is to design in FY24 and construct in FY25. The existing airport vaults for both Runway 3/21 and 17/35 are in poor condition and were constructed by the Air Force in the late 1950’s and the equipment outdated. The SOW will consist of one new electrical enclosed building, installation of conduits in the floor and lighting; vault equipment and new electrical regulators for each runway. New radio controller equipment will also be installed to meet current electrical codes and FAA standards. Chairman Corn asked Jennifer was how much was in the project savings capital line item. Jennifer stated there is about $1M left in the project savings capital line item. Jennifer stated they wanted to do the design this year and the construction next year. Councilor Heldenbrand asked if this proposal was put out to bid or RFP. Hess stated that the City put out a bid for general contracting services at the airport three years ago, and that Armstrong Consultants were the only ones that responded to the bid. A new RFP will go out in October of this year. Councilor Heldenbrand said this is not a competitive bid especially when the bid comes in for the amount of the grant. Councilor Heldenbrand said it is a shame that this is the process for the City. Councilor Johnson asked if there was a engineers estimate done on this. Jennifer responded there was a IFP on this project and that they stated the bid was in line with the grant. Councilor Cavin made a motion to recommend the approval to allocate Capital Outlay funds and approve Task Order K for Engineering Services to Armstrong Consultants for design of New Electrical Vault and Install New Radio Controller Equipment for airfield lighting at the Roswell Air Center as well as approve the purchase order for this project if passed to be placed on the full city council agenda. Councilor Johnson seconded the motion. The motion passed with a 3 - 1 voice vote, with Councilor Heldenbrand being the objection. 5. Consider the outside UFO / Alien Festival working group’s request for funding for the 2024 UFO Festival. Chairman Corn asked if there was anything to pass on this item. Hess explained this should have been a discussion item. This will not require a vote. Presented by Chad Cole and Hess Yntema. Memorial 24-01 directed the City Administration to work with outside groups to manage the UFO festival. Hess explained that based upon the request there could be procurement issues that arise. The request has four separate categories, addressed in turn. 1. The request for advertising funds would not implicate this issue as “[p]urchases of advertising in all media, including radio, television, print and electronic,” are exempt from the procurement code. NMSA § 13-1-98(v). Historically such advertising funds are done on a match basis, but this is not required as a matter of law. 2. The request for Entertainment for $100,000 would lead to procurement issues. There is no procurement exception for groups putting on events and providing entertainment at the events. (As opposed to the exception for entertainers in NMSA § 13-1-98). The only applicable exception is the small purchase exception, capped at $20,000. NMSA §12-1-125. As such any award directly to a group over $20,000 would require some form of bidding. 3. The $25,000 for public safety need not be awarded as this is internal to the City and the City can reimburse itself for such expenses. See NMSA §3-38-21 (5). 4. The finally $25,000 request does not entirely fit comfortably into the use of allowable proceeds under NMSA §3-38-21. The portions that do such, as information booth maps, are more easily tucked into advertising funds by requiring the City of Roswell and its attraction be advertised though said maps. A vote was not required. 6. Consider approval of Resolution 24-XX approving budget adjustment for fiscal year ending June 30, 2024 and consider ratification of Resolution 24-XX for the LG Abatement Opioid Fund. 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 is requesting a budget adjustment for line items in Exhibit “A”. These adjustments are for various grants and other departmental adjustments. Councilor Heldenbrand asked if the funds related to the LG Abatement Opioid Fund are restricted and if there is a timeline on the spending. Hess said there is strict restrictions on these funds and there is no time limit on spending the funds. Hess recommended that we get the funds in an interest-bearing account until we  have a qualifying project. Councilor Heldenbrand wants the City to request the City’s funds back from Chaves County and with the funds the City received recently we get all the Opioid Funds into an interest-bearing account. Councilor Heldenbrand made a motion to for the recommendation of approval of Resolution 24-XX approving budget adjustment for fiscal year ending June 30, 2024 and consider ratification of Resolution 24-XX for the LG Abatement Opioid Fund to be placed on the consent agenda. Councilor Cavin seconded the motion. The motion passed with a 4-0 voice vote. 7. Consider recommending approval of the 2023 Water Utility Rate Study. Presented by Robert Glenn. In June 2023, the City Manager authorized staff to review the water utilities financial status and to recommend rate adjustments, as necessary, to ensure their continued financial sustainability. Robert asked the committee if they wanted him to present the 2023 Water Utility Rate Study after the special workshop on Monday. Councilor Heldenbrand asked what option we were looking at to move the 2023 Water Utility Rate Study to legal. Robert stated we are going to move forward with option 2 which will keep the utilities in the tenant’s name but shorten the timeframe of shutting off the water on rentals for nonpayment. Councilor Heldenbrand stated that our community had kicked this can down the road far enough, he has not heard an alternative to the rate increase. Councilor Heldenbrand says the key to this is how we present this to the community, and that it is going to be financially painful for a lot of people in our community. Yet it is needed and the City does have to start investing in our infrastructure. Councilor Heldenbrand stated that with the leadership of Chad we need to present this to the community so that everyone understands what we need. Lorenzo stated that to replace 3 quarters of a mile of water pipe runs about $1,000,000. Councilor Cavin made a motion recommending approval of the 2023 Water Utility Rate Study to the Legal Committee. Councilor Heldenbrand seconded the motion. The motion passed with a 4-0 voice vote. 8. Consider recommending approval of the 2024 Wastewater Utility Rate Study. Presented by Robert Glenn. In November 2023, the City Manager authorized staff to review the wastewater utilities financial status and to recommend rate adjustments, as necessary, to ensure their continued financial sustainability. Councilor Cavin made a motion recommending approval of the 2024 Wastewater Utility Rate Study to the Legal Committee. Councilor Johnson seconded the motion. The motion passed with a 4 - 0 voice vote. 9. Consider recommending approval of the 2023 Solid Waste Department Rate Study. Presented by Abraham Chaparro. The City of Roswell, NM (City) provides trash service to over 15,108 customer accounts, pickup up over 18,329 trash containers a week. The City’s Solid Waste Department is funded from residential pickups, and commercial 300-gallon and 3-yard pickups. The City of Roswell Code governing Solid Waste has not been completely revised in 35+ years and was in need of a major revision. Currently, the Solid Waste Ordinance, as written, has 8 pages and 2 Articles. The revised City Ordinance has 50+ pages and 7 Articles and a rate increase recommendation. The Solid Waste Department has a three-fold mission of protecting public health, protecting the environment and providing trash service to our customers. The Solid Waste Department must be fiscally sustainable in order to meet this mission. Financial sustainability requires having adequate revenues to fund revenue requirements, maintain appropriate cash reserves and having adequate debt service coverage. The City Manager authorized staff to review the department’s financial status and to recommend rate adjustments, as necessary, to ensure the department’s continuing financial sustainability. Councilor Johnson made a motion recommending approval of the 2023 Solid Waste Department Rate Study to the Legal Committee. Councilor Cavin seconded the motion. The motion passed with a 4 -0 voice vote. Councilor Heldenbrand encouraged everyone to show up to the Legal Committee for input, questions, or concerns on the rate studies. The Legal Committee will meet February 22, 2024 at 2:00 PM. APPROVAL OF MINUTES 1. Minutes for January 08, 2024 Regular Meeting Councilor Cavin moved to approve the January 8th regular meeting minutes as amended. Chairman Johnson seconded the motion. The motion passed with a 4-0 voice vote. NON-ACTION ITEMS 2. Information Departmental Reports – Finance Presented by Tammi Smith • GRT – The City of Roswell received $5,949,131 in January and currently 21.61% over budget for the fiscal year. The increase in January was in the food industry. Certain stores were incorrectly reporting the nontaxable deductions on their gross receipts tax reports. The State of NM Taxation & Revenue Department has allowed these stores to amend reports back to July 2021. These amended reports/payments are represented in the January GRT amounts received by the City of Roswell. • Cannabis Excise Tax – We received $28,210 for the month of January. With nothing being budgeted in July we have an 75.40% variance in budgeted vs. actual. Public Affairs – Presented by TJ Conyers • Lodgers Tax Report – Occupancy rate was 46.1% with $94,157 received in Lodgers Tax. • Roswell Visitor Center – Welcomed 2,200 guests, 1,382 stayed overnight in Roswell or 63% and 147 Roswell locals. December sales total $7,076. • Convention Center Bed Fee – There was $50,482 received in December. PUBLIC PARTICIPATION Rita Kane Doerhoefer asked if she would be charged when she took her recyclables to the landfill since she lives in the county, and how is the recycling program going to work. Abraham responded that the collection service was open to all citizens free of charge. Rita asked when she could bring out her recyclables. Abraham stated they have been receiving recyclables and she can bring them out anytime. ADJOURN The meeting adjourned at 3:54 p.m.