Finance Committee

Regular Meeting of the Finance Committee City Hall – Large Conference Room 425 N. Richardson Ave. Thursday, March 7, 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 2:01 p.m. with Chairman Corn presiding, Councilor Cavin, Councilor Heldenbrand, and Councilor Johnson being present. STAFF PRESENT Bruce Andler, Jim Burress, Abraham Chaparro, Chad Cole, Tommy Jo Conyers, Janie Davies, Daniel Fuller, Robert Glenn, Jennifer Griego, Melissa Garcia (via GoToMeeting), Amalia Martinez, Mike Mathews, James MacCornack, Ashley Myers- Palma, Rene C. Otero, Elizabeth Prichard (via GoToMeeting), Debbie Reyer, Lee (Mac) Rogers, Lorenzo Sanchez, Tammi Smith, and Hess Yntema. GUESTS PRESENT Christina A. Arnold (via GoToMeeting), Vicki Burress (via GoToMeeting), Rita Kane Doerhoefer, Terri Harber, and Mayor Tim Jennings. APPROVAL OF AGENDA Councilor Cavin made a motion to approve the agenda. Councilor Heldenbrand seconded the motion. The motion passed with a 4-0 voice vote. ACTION ITEMS 1. Consider ratification of PO for $87,259.37 with GRT to Souder, Miller & Associates (SMA) for emergency repair. -Funding Source – Cash on Hand. Will be repaid by NMSIF once the work is completed. Presented by Abraham Chaparro. In September of 2023 the liner to Cell 5-A was ripped. Having exposed the liner in the area. We have examined the damage and had our engineering firm put together a proposal to repair the tear. Once work begins, it will take 10-15 days to complete, weather permitting. Councilor Heldenbrand asked what is the cash balance at solid waste/landfill, and by using the cash funds will there be a negative cash balance at the end of the year? Janie stated that landfill is normally at a negative cash balance at the end of the year, but solid waste should have enough of a cash balance to cover the landfill shortfall. Also, the cash should be repaid (less the $2,500 deductible) by NMSIF before the end of the fiscal year.  Councilor Heldenbrand made a motion for the recommendation of the ratification of the PO for $87,259.37 with GRT to Souder, Miller & Associates (SMA) to be placed on consent agenda for City Council. Councilor Cavin seconded the motion. The motion passed with a 4 - 0 voice vote. 2. Consider approval to hire Custom Construction in the amount of $306,722.56 using ITB 23-020 for the Abatement and Demo of Building 112 at the Roswell Air Center. -Funding Source - Air Center has $320,000 budgeted and unencumbered in Contract-Community Enhancement-Demolitions Expense Account 51004332- 652421 Presented by: Mac Rogers. This request is to hire Custom Construction in the amount of $306,722.56 including GRT using ITB 23-020 for the abatement and demo of the Building 112A. Abatement would include the entirety of Building 112 and demo would only include the southern half, pitched roof, section located at 56 G Street. The project was budgeted for FY 2024. Councilor Heldenbrand asked what exactly is being considered due to there are two quotes attached for $209,443.28 and $263,548.47. These two quotes don’t add up to the attached request. Mac stated that we are requesting the $39,305.10 plus GRT on proposal 4380, and on proposal 4381 we are requesting both items listed the $138,224.20 and $106,747.34 plus GRT. When calculating the correct GRT of 7.8958% it does add up to the $306,722.56 listed in the request. Mac will work on getting the supporting documentation cleaned up for City Council with just one proposal with only the items being requested. Councilor Heldenbrand made a motion for the recommendation of approval to hire Customer Construction in the amount of $306,722.56 using ITB 23-020 for the Abatement and Demo of Building 112 at the Roswell Air Center to be placed on the consent agenda for City Council. Councilor Cavin seconded the motion. The motion passed with a 4-0 voice vote. 3. Consider approval to hire Custom Construction in the amount of $114,346.14 using ITB 23-019 for roofing hangar C&D of Building 91 at the Roswell Air Center.  -Funding Source - The RAC was budgeted $1,893,216.79 in M & R Roof (BLDG) 51004332-614018. The unencumbered balance is $198,061. Presented by Mac Rogers. This request is to hire Custom Construction in the amount of $114,346.14 including GRT using ITB 23-019 for roofing sections C&D for Hangar 91 at the Roswell Air Center. This would include removing the existing metal roof and installing a new 60 mil TPO roofing system. The western half of Building 91 (Hangar A&B) was reroofed in 2020. This project is included in the Air Center Capital Outlay budget for FY 2024. Councilor Cavin asked what kind of warranty the City will have on the new roof. Mac responded that we will have a 10-year warranty and the roof is rated at a 55- mph wind. Councilor Johnson asked how many bids were received on the ITB. Mac responded that we are utilizing a on call roofing contract and only a single bid was requested. Councilor Heldenbrand asked why the proposal attached is for a total of $114,291.90 and the request is for $114,346.14. Mac explained that the proposal is using the old GRT rate and not the new rate of 7.8958%. The $105,980.16 net cost on the proposal calculated with the new GRT calculates to the total 114,346.14. Councilor Cavin made a motion for the recommendation of approval to hire Custom Construction in the amount of $114,346.14 using ITB 23-019 for roofing hanging C&D of Building 91 at the Roswell Air Center to be placed on the consent agenda for City Council. Councilor Johnson seconded the motion. The motion passed with a 4 - 0 voice vote. 4. Consider a recommendation for PO for pavement maintenance overlay to Abraham Construction, INC. in the amount of $85,673.58 which includes GRT. -Funding Source – Fire Protection Grant – M&R Infrastructure 2264123-614020. Presented by Daniel Fuller. This project was originally planned for the spring of 2023, but due to other large projects, the project was delayed until current. This project will replace the entire front parking area at Station 1 (See attached). The funding from the fire fund was rolled over from last fiscal year. Councilor Johnson asked if it was a 10-inch pour. Deputy Fire Chief Fuller stated it was a 10 inch pour on the part the fire trucks will drive over, the other portion will be a 6-inch pour. Councilor Johnson made a motion for the recommendation for PO for pavement maintenance overlay to Abraham Construction, Inc. in the amount of $85,673.58  which includes GRT to be placed on the consent agenda. Councilor Cavin seconded the motion. The motion passed with a 4 – 0 voice vote. 5. Recommend Ordinance 24-XX in support of funding the Country Club Reservoirs Rehabilitation Project. -Funding Source - New Mexico Finance Authority Water Project Funding Project 5980-WPF with a total monetary agreement amount of $8,000,000. This project will likely impact the FY25 budget. Debt will be paid back through the Water Enterprise Fund. Loan payment will be approximately $225,000 per year. Presented by James MacCornack. The City of Roswell submitted an application requesting funding assistance for the Country Club Reservoirs Rehabilitation Project. The Water Trust Board has awarded Project 5980-WPF for such project. Water Project Funding is in the amount of $8,000,000. Structured with a 55% loan in the amount of $4,400,000 which includes additional loan in lieu of match; and an 45% grant in the amount of $3,600,000. The loan component is a 20-year term at a net effective interest. Councilor Heldenbrand is concerned this is not enough money and there is no evidence of the $8 million cost for the project. Lorenzo did show an engineering’s estimate from Tank Industries Consultants. Councilor Heldenbrand noted it was not the full engineering’s estimate and pages appear to be missing. Lorenzo stated he would have the full engineering’s estimate for City Council. Hess stated that there had to be an updated cost estimate in order the bond to be issued. Councilor Cavin made a motion to recommend Ordinance 24-XX in support of funding the Country Club Reservoirs Rehabilitation Project to be placed on the full City Council agenda. Councilor Heldenbrand seconded the motion. The motion passed with a 4 – 0 voice vote. 6. Resolution 24-11 - Consider recommending approval of Resolution 24-11 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. 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.  Councilor Johnson asked if the reserve isn’t met are they still auction off. Robert explained that we could go back in an adjust the reserve or go with the highest bidder. Councilor Heldenbrand made a motion for the recommendation for approval of Resolution 24-11 authorizing Disposal of Certain Surplus Personal Property to be placed on the consent agenda. Councilor Johnson seconded the motion. The motion passed with a 4 – 0 voice vote. 7. Ordinance 24-XX Amending Chapter 21 Solid Waste of the Roswell City Code: Consider recommending approval to authorize to advertise for a public hearing for Ordinance 24-XX Amending Chapter 21 Solid Waste of the Roswell City Code. Presented by Abraham Chaparro. The City Manager authorized staff to review the solid waste's financial status and to recommend rate adjustments, as necessary, to ensure their continued financial sustainability. 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. Councilor Heldenbrand asked what exactly were they to vote on with option 1, 2, A, or B. Also, the ordinance that was attached to the agenda does not match either option. The ordinance is the same ordinance that went to the Legal Committee that was referred to Finance Committee. A substitute will have to be done on the ordinance to update which option is chosen to proceed with. It was agreed that option 2 for collections and option b for the landfill is the best option at this point. Councilor Cavin made a motion for recommendation to substitute out in the ordinance the graphs in sub part e and substitute in the information in option 2. Councilor Johnson seconded the motion. The motion passed with a 4 – 0 voice vote. Councilor Heldenbrand made a motion for the recommendation of Ordinance 24-XX Chapter 21 Solid Waste of the Roswell City Code and recommendation of approval to authorize to advertise for a public hearing for Ordinance 24-XX  amending Chapter 21 Solid Waste of the Roswell City Code as amended. Councilor Johnson seconded the motion. The motion passed with a 4 – 0 voice vote. APPROVAL OF MINUTES 8. Minutes for February 01, 2024 Regular Meeting Councilor Johnson moved to approve the February 01, 2024 regular meeting minutes. Councilor Heldenbrand seconded the motion. The motion passed with a 4 – 0 voice vote. NON-ACTION ITEMS 9. Information Departmental Reports – Finance Presented by Tammi Smith  GRT – The City of Roswell received $3,784,152 in February and is currently 17.20% over budget for the fiscal year. Councilor Heldenbrand stated it is concerning that GRT seems to be in a downward trend.  Cannabis Excise Tax – We received $36,580 for the month of January. With nothing being budgeted in July we have an 77.14% variance in budgeted vs. actual. Public Affairs – Presented by Ashley Myers-Palma  Lodgers Tax Report – Occupancy rate was 55.9% with $108,666 received in Lodgers Tax.  Roswell Visitor Center – Welcomed 1,244 guests, 569 stayed overnight in Roswell and 94 Roswell locals. December sales total $7,076.  Convention Center Bed Fee – There was $5,389 received in January. 10. A brief review of the 2024 Legislative Session and Capital Outlay Projects was presented. 11. Janie did a brief review of the mid-year financial condition. Janie will present budget numbers to go along with the actuals at next month’s finance committee. Chad asked that we budget all indirect costs and then on a quarterly basis we post those costs unless it throws the fund into a negative situation. An open PO report was presented with an open amount of $24,913,943.08. PUBLIC PARTICIPATION Rita Kane-Doerhoefer asked for a clarification on a couple of items on the open PO list. She had questions of how the items sold at auction are accounted for. Janie answered that when the City receives money from property sold it is recorded as revenue. ADJOURN The meeting adjourned at 4:10 p.m.