Finance Committee

Regular Meeting of the Finance Committee City Hall – Large Conference Room 425 N. Richardson Ave. Thursday, May 02, 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 24-02. ROLL CALL The meeting convened at 2:00 p.m. with Chairman Corn presiding, Councilor Cavin, Councilor Halvorson, Councilor Heldenbrand, and Councilor Johnson being present. STAFF PRESENT Della Andazola, Bruce Andler, Chad Cole, Abraham Chaparro, TJ Conyers, Enid Costley, Janie Davies, Melissa Garcia (via GoToMeeting), Robert Glenn, Jennifer Griego, Merissa Guilez (via GoToMeeting), Amalia Martinez, Mike Mathews, James MacCornack, Mike McClain, Ashley Myers-Palma, Debbie Reyer, Karen Sanders (via GoToMeeting), Lorenzo Sanchez, Jose Serrano, Joe Seskey, Tammi Smith, Hess Yntema. GUESTS PRESENT M. Brooks (via GoToMeeting), Kyle Bullock, Rita Kane Doerhoefer, Mike Espiritu, Chris Garner (via GoToMeeting), Terri Harber, and Mayor Tim Jennings. APPROVAL OF AGENDA Councilor Heldenbrand made a motion to remove action item # 5 from the agenda, and approve the agenda as amended. Councilor Cavin seconded the motion. The motion passed with a 5-0 voice vote. ACTION ITEMS 1. Consideration of adoption of Resolution 24-XX approving the FY23 Audit and Corrective Action Plan. Presented by Chris Garner, CPA/Partner at Pattillo, Brown & Hill, LLP. The City of Roswell received authorization to release the FY23 Audit Report. The state of New Mexico Audit Rule (NMAC 2.2.210 (M)(4)) requires the final audit report to be presented to the governing authority of an agency at a meeting held in accordance with the Open Meeting Act. The New Mexico Department of Finance and Administration (DFA) requires the Governing Body to approve a resolution showing acceptance and approval of the FY23 Audit. In addition, DFA requires a corrective action plan on the findings presented in the audit report.  Chris Garner presented the audit and went through his PowerPoint presentation. He did take questions after the presentation. Councilor Heldenbrand asked if the increase in revenues could be related to ARPA funds. Chris and Janie both responded that it was not. The increase is due to the change in allocation of GRT. GRT is now directly allocated to the road fund and recreation. Councilor Halvorson asked if the split in GRT was a certain percentage. Janie responded that it was based on each 1/16 that has passed. Councilor Cavin made a motion for the consideration of adoption of Resolution 24-XX Audit and Corrective Action Plan be placed on the full agenda for City Council. Councilor Johnson seconded the motion. The motion passed with a 5-0 voice vote. 2. Recommend award of ITB-24-21-011, Roswell Inclusive Park Phase 2-A to Abraham’s Construction Inc., in the amount of $330,873.26 which includes GRT. Presented by James MacCornack. Bids received on April 9, 2024, for the subject project have been reviewed. A bid tabulation was attached to the abstract. Two bids were received as follows: (Amounts include tax of 7.8958%) 1. Abraham’s Construction Inc., Albuquerque, NM $330,873.26 2. Cross T Construction LDT., Peralta, NM $467,730.96 Councilor Halvorson asked if Part 2B would be put back out to bid again. James said the first time we put Part 2B out to bid the only bid that was received was too high. The second time we didn’t receive any bids. The City has contacted several local landscapers and no one seems interested in the project. Abraham’s has stated they might be willing to do Part2B and would get the City a price quote. The City will continue to look for interest in Part 2B. Councilor Heldenbrand asked how much was the bid the City rejected. James stated it was over $800,000.00. Councilor Halvorson made a motion for the recommendation of award of ITB-24- 21-011, Roswell Inclusive Park Phase 2-A to Abraham’s Construction Inc., in the amount of $330,873.26 which includes GRT to be placed on the consent agenda for City Council. Councilor Johnson seconded the motion. The motion passed with a 5-0 voice vote. 3. Consider recommending approval of Resolution 24-19 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. A list of items were attached to the abstract in exhibit A & B. Councilor Heldenbrand made a motion for the recommendation of Resolution 24- 19 authorizing the disposal of certain surplus personal property to be placed on the consent agenda for City Council. Councilor Cavin seconded the motion. The motion passed with a 5-0 voice vote. 4. Recommendation to approve the Roswell Chaves County Economic Development Corporation funding request to City Council in the amount of $200,000. The RCCEDC works in partnership with the City of Roswell to provide services to businesses and to expand business and economic development in our area. In 2019 all contracts were updated to reflect scope of work for funding level. The contemplated Agreement would provide a revised and updated scope of work to support the RCCEDC’s work and continue the City’s existing relation with the RCCEDC. In 2020 the contract amount was $120,000, FY21 the contract amount was $96,000, FY22 the contract amount was $200,000 and FY24 the contract amount was $150,000. The RCCEDC is currently requesting an increase of $50,000 for FY25 for a total of $200,000.00. Councilor Cavin made a motion to amend the abstract under legal review to remove the sentence, “No amendments to the current contract or scope of work have been made.” Amendments were made on page 1 of Exhibit B: Metrics under 1. E. iii. It should read, “Metrics and proof of performance for plan of action to include contact with (20) county-wide businesses monthly award at least (3) façade grants annually, support & testify at every JTIP request involving a Roswell business with the NM State Board, provide support for company expansion and new job growth.” Councilor Halvorson seconded the motion. The motion passed with a 5-0 voice vote. Kyle Bullock went over accomplishments and highlights in FY24 and their current funding sources. Mike Espiritu continued to explain the benefits of supporting the RCCEDC. Councilor Cavin asked how much support did they received from the County in FY24. Mike stated they funded $150,000 and then another $50,000 for special projects.  Councilor Johnson made a motion for the approval of the Roswell Chaves County Economic Development Corporation funding request to City Council in the amount of $200,000.00 as amended to be place on the full agenda for City Council. Councilor Heldenbrand seconded the motion. The motion passed with a 5-0 voice vote. APPROVAL OF MINUTES 6. Minutes for April 04, 2024, Regular Meeting Councilor Heldenbrand moved to approve the April 04, 2024; regular meeting minutes. Councilor Halvorson seconded the motion. The motion passed with a 5-0 voice vote. NON-ACTION ITEMS 7. Information Departmental Reports – Finance Presented by Tammi Smith  GRT – The City of Roswell received $4,213,352 in April and is currently 19.82% over budget for the fiscal year.  Cannabis Excise Tax – We received $31,409 for the month of April. With nothing being budgeted in July we have an 82.75% variance in budgeted vs. actual. Public Affairs – Presented by Ashley Myers-Palma  Lodgers Tax Report – Occupancy rate was 60.3% with $110,577 received in Lodgers Tax.  Convention Center Bed Fee – There was $58,575 received for March. 8. Robert Glenn presented information on the Utility Rates for Outside the City Limit Customers. Councilor Johnson asked what was the cost or risk to the City for the meters outside the City limits. Robert explained that customers outside the City limits have to come to the City. This item will be revisited in the next legal committee meeting. FOR THE RECORD: Councilor Cavin left at 3:44 p.m. 9. Jennifer Griego presented a couple of option for the Airport’s Mission Statement.  10. Judge Seskey presented the Finance Committee the Municipal’s Court FY25 Budget Review. 11. Lorenzo Sanchez presented the FY25 Capital Projects for Water and Waste Water. FOR THE RECORD: Councilor Halvorson left at 5:00 p.m. 12. Janie presented the FY25 Preliminary Capital Outlay Items. PUBLIC PARTICIPATION Bruce Andler spoke to the committee about how the increase in water billing is going to affect the blue-collar workers. Chad pointed out the benefit package that the City offers is amazing and needs to be promoted more to all City employees. Rita thanked the departments that are helping with programs at the Boys and Girls Club. Rita would also like to know how the vendor was chosen for the cleaning services for the UFO festival. Chairman Corn said that anything UFO festival related is being done through Mainstreet Roswell. FOR THE RECORD: Councilor Heldenbrand left at 5:37 p.m. ADJOURN The meeting adjourned at 5:37 p.m. due to not having a quorum.