Finance Committee

Regular Meeting of the Finance Committee City Hall – Large Conference Room 425 N. Richardson Ave. Thursday, July 2, 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 24-23. ROLL CALL The meeting convened at 2:00 p.m. with Chairman Corn presiding, Councilor Cavin (GoToMeeting), Councilor Halvorson, Councilor Heldenbrand, and Councilor Johnson being present. STAFF PRESENT Amalia Martinez, Jennifer Griego, TJ Conyers, Caroline Brooks, Mike Mathews, Tammi Smith, Louis Najar, Enid Costley, Toni Gomez, Janie Davies, Debbie Reyer, Jeff Bechtel, Justin Jones, Chad Cole and Robert Glenn GUESTS PRESENT Barbara Gomez, Kim Wood, Terri Harber, Rita Kane-Doerhoefer, Adriann Ragsdale, Jadawn Spear and Bruce Andler on (go-to-meeting). APPROVAL OF AGENDA Councilor Heldenbrand made a motion to approve the agenda. Councilor Johnson second the motion. The motion passed with a 5-0 voice vote, with Councilor Cavin via GoToMeeting. ACTION ITEMS 1. Consider recommending approval of purchases over $60,000 pursuant to City’s purchasing policy. • Funding Source - Below is what has been budgeted for FY25. o 51004332-652409 Contract-Janitorial Services - $180,673.91 o 51004332-652424 Outside Labor Force - $104,058.50 Presented by Jennifer. Pursuant to the City's Purchasing Limits Policy, expenditures over $60,000 require committee recommendation to the City Council for approval. Contracts are attached for expenditure for consideration and recommendation. Jennifer asked to amend contract by reduce the janitorial contract services for ground maintenance for one building from $180,000 to $110,000. The contractor is not renewing contract on second building.  The second contract to amend is for outside labor force with El Wood Staffing for temporary services for two employees that are assigned to the Air Center for ground maintenance forty (40) hours a week. Councilor Heldenbrand asked if it would be cost effective to make them city employees. Jennifer said the benefits would cost more. Councilor Halvorson made a motion to amend changing the amount of $180,673.91 to $110,000 for janitorial services and place on the consent agenda. Councilor Johnson seconded the motion. The motion passed with a 5-0 voice vote, with Councilor Cavin (via GoToMeeting). Councilor Heldenbrand made a motion to approve the budget amount as amended for the contract for janitorial services for ground maintenance to the consent agenda. Councilor Halvorson seconded the motion. The motion passed with a 5-0 voice vote, with Councilor Cavin (via GoToMeeting). 2. Consider approval the for purchase of two (2) new Battle Sideloaders and 1 (one) new Battle Rear Loader from Bond Equipment in the amount of $1,236,318.12. • Funding Source - FY25 Solid Waste Capital Project Budget o Item #1 - Rear Loader for $366,014.00 o Item #2 - (2) Side loaders for a total of $873,813.12 Presented by Abraham Chaparro. The Solid Waste Department is requesting approval to purchase two (2) Battle Motors chassis with Heil 24-yard DP Rapid Rail and one (1) Battle Motors chassis with the Heil 25-Yard Durapack 5000 from Bond Equipment. Delivery date is expected at or before December 2024. All specifications of the truck meet the requirements of the Collection Supervisor and the Fleet Maintenance Supervisor. All specifications of the truck meet the requirements of the Collection Supervisor and the Fleet Maintenance Supervisor Councilor Heldenbrand stated it is a 5% increase. It’s for four vehicles, replied Abraham. Councilor Johnson made a motion to approve the rear loader and two side loaders for $1,236,318.12 to the consent agenda. Councilor Halvorson seconded the motion.  The motion passed with a 5-0 voice vote, with Councilor Cavin (via GoToMeeting). 3. Consider approval the for purchase of 1 (one) new 140 LVR AWD Motor Grader from Wagner Equipment in the amount of $517,211.00. • Funding Source - FY25 Landfill Capital Project Budget Item #2 is a CAT 140 LVR AWD Motor Grade for $571,211.00 Presented by Abraham Chaparro. The Solid Waste Department is requesting approval to purchase one (1) 140LVR AWD Motor Grader from Wagner Equipment. All specifications of the truck meet the requirements of the Landfill Supervisor and the Fleet Maintenance Supervisor. Councilor Corn asked when it was expected to arrive. In six months, replied Abraham. Councilor Heldenbrand made a motion to approve the purchase of the all-wheel drive motor grader from Wagner Equipment in the amount $517,211.00 to the consent agenda. Councilor Halvorson seconded the motion. The motion passed with a 5-0 voice vote, with Councilor Cavin (via GoToMeeting). 4. Consider approval the for purchase of 1 (one) new Grappler Truck from Doggett Freightliner of South Texas in the amount of $231,665.52. • Funding Source - FY25 Solid Waste Capital Project Budget Item #3 is a grapple truck for $231,666.87. Presented by Abraham Chaparro. The Solid Waste Department is requesting approval to purchase one (1) Peterson TL3 Loader with HDX2030 Hard Ox Loader from Doggett Freightliner of South Texas. All specifications of the truck meet the requirements of the Landfill Supervisor and the Fleet Maintenance Supervisor. Councilor Johnson asked if these were contracts and not price agreements? They are a combination of both, replied Abraham. Councilor Halvorson made a motion to approve of one new grappler truck from Doggett Freightline of south Texas in the amount of $231,665.52 on the consent agenda. Councilor Johnson seconded the motion. The motion passed with a 5-0 voice vote, with Councilor Cavin (via GoToMeeting). 5. Consider recommending approval of Solid Waste Purchasing Authorization Request. Presented by Abraham Chaparro. This request covers proposed purchasing authorizations for Solid Waste. The purchasing authorization is a “not to exceed” number for each vendor. This will allow us 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. • Funding Source - Miller Engineers Purchasing Authorization not to exceed $220,000. o FY25 Landfill Operating Budget - 52014342-654801 - Contract Professional Services $145,920.38 o FY25 Landfill Capital Fund Budget - Item #1 Cell 5B Design/Construction $90,000 • Funding Source - Snyder/Tank Holding Purchasing Authorization not to exceed $70,000 o FY25 SW Collection Operating Budget - 52004342-642905 Non-Capital-Other $149,507.53 • Funding Source - Bond Equipment Purchasing Authorization not to exceed $1,236,318.12 o FY25 Solid Waste Capital Fund Budget Item #1 Read Loader $370,000 o FY25 Solid Waste Capital Fund Budget Item # 2 (2) Side loaders $873,873.12 • Funding Source - Dogget of Texas Authorization not to exceed $231,665.52 o FY25 Solid Waste Capital Fund Budget Item #4 Grapple Truck $231,666.87 • Funding Source - Cat Wagner Authorization not to exceed $600,000 o FY25 Landfill Capital Fund Budget Item #2 CAT 140 LVR AWD Motor Grade $571,211.00 o FY25 SW Collection Operating Budget 52004341-614004 M&R Equipment $51,407.98 o FY25 Landfill Operating Budget 52014342-614004 M&R Equipment $53,876.75 • Funding Source - Total Authorization not to exceed $70,000 o FY25 SW Collection Operating Budget - 52004342-642905 Non-Capital-Other $149,507.53  Councilor Heldenbrand stated the $571,211.00 plus $51,407.98 and $53,876.75 for the landfill is well over $600,000. So, what are you asking for approval for? We don’t need the collection budget of $51,407.98. Councilor Heldenbrand made a motion to amend to remove the solid waste collection funding service request of $51,407.98 and change the total amount to Wagner authorization not to exceed $571,088.00. Councilor Johnson seconded the motion. Motion passed with a 5-0 voice vote, with Councilor Cavin (via GoToMeeting). Councilor Heldenbrand I move that we place on the consent agenda the approval the solid waste purchasing authorization as amended. Second by Councilor Johnson. The motion passed with a 5-0 voice vote, with Councilor Cavin (via GoToMeeting). 6. Recommend award of RFP 24-013 Hobson Flood Prevention Design Project to Freese & Nichols, Inc in the amount of $1,050,840 which includes GRT. • Funding Source - Funding is per Water Trust Board loan/grant agreement number WPF-5979. Total agreement amount is $9,602,273. Yearly cost is estimated at $62,849.11 with a maturity date of 06/01/2045. Presented by Louis Najar. The City has received a Water Trust Board grant/loan for design and construction of flood prevention and drainage improvements on Hobson Road. City issued RFP 24-013 to solicit proposals to complete the design portions of the project. Four firms indicated initial interest in the RFP, however only one firm submitted a proposal in response. The one response is from Freese & Nichols Inc. The Freese & Nichols proposal was reviewed and scored by committee and staff is comfortable with proceeding with award to Freese & Nichols based on their project plan and their stated ability to complete the design work within the timeframe specified in the RFP. Councilor Corn asked if all the work Chaves County Flood control people did, does that change this any? No, it doesn’t change anything, that’s a good question replied Louis. Cause with this drainage was assuming in 1999 – 2000 the assumption was and you can look at this drawing. The assumption was that the Hondo River would maintain and be maintained to handle the runoff to take it over here to the relief route and there is what we got over here (points to map). So, the levee breaks in 2021 is not included in this cause the assumption was the reservoir water project in the Hondo reservoir would be maintained to carry whatever characteristics that the core engineers requires and that was the assumption in 1999.  Councilor Corn said there are two damns. One has a control gate and the other one does not. That is correct, replied Louis. You need time to get that done. Would that alleviate this problem? It might, I mean, theoretically if you look at the drainage, they are not worried about the bypass going up stream. This is assuming its good and it is not going to do anything if the levee breaks. It will help catch the water and move it out and it will help. Councilor Johnson, does this reach NM state road 2, the old Dexter Highway? It will be down here (points to map) basically, yes, replied Louis. It has flooded twice; it was washed out in 2021. Councilor Cavin asked is this project something that we need to agree to right now or do we want to do it? It has always been recommended, this came out in 2000, the City of Roswell didn’t need it until now. So, we did go after the money, but now we have already signed the agreement we’re on the hook, stated Louis. Councilor Cavin, what are we on the hook for? We have already signed the loan agreement, replied Louis. Councilor Heldenbrand motioned to recommend the award of RFP Award 24-013 Hobson flood prevention design project to Freese & Nichols, in the amount of $1,050,840.00 to be placed on the consent agenda. Councilor Halvorson seconded the motion. Motion passed with a 4-1 voice vote, with Councilor Cavin (via GoToMeeting) and Councilor Corn voting no. 7. Recommend award of ITB-24-012, Roswell Inclusive Park Project Phase 2-B to Alton’s Landscape in the amount of $ 106,687.37 which includes GRT. • Funding Source - Capital Appropriation Grant agreement number 22- G2779. The total award amount is $853,500. $605,179.35 of this amount has already been obligated on Phase I of the park that has already been completed as well as Phase 2-A that was previously awarded. The remaining balance of this grant award is $248,320.65. Presented by Louis Najar. This project was bid twice with no acceptable bids received. Per State procurement law once a project has been bid twice unsuccessfully, quotes may be solicited from possible vendors. Quotes were solicited from several appropriate companies. Two quotes were received as follows: (Amounts include Tax of 7.8958%). 1. Abraham’s Construction Inc., Albuquerque, NM $265,639.46 2. Alton’s Landscaping., Roswell, NM $106,687.37 Other firms that were solicited but did not respond with a quote were: Accent Landscaping, Vistascapes Landscaping, Smithco Construction, AK Sales, and Mountain West Golfscapes.  Councilor Halvorson asked if there was any money left in the capital outlay or from the fundraising, they did at the Kiwanis Society? All the fundraising that was done went for the sign, replied Louis. We have zero funds from outside sources for this project. Barbara Gomez, MainStreet Director, I’m part of the Kiwanis Club and we actually do have funding for the City for trash cans and picnic tables. Some of the money will be used for the gateway. We are still fundraising and talking with Jim Burress. As soon as the city is ready, we will have the funding available and it depends on how many things they want picnic tables and trash cans. Louis replied (points to map) that is what we are doing here, trash cans, park benches, irrigation, trash and trees. I’m restricted to the grant money for this project. Councilor Halvorson asked, So, this quote from Alton’s includes picnic tables and everything else? No, it includes the irrigation systems, trees and the landscaping, replied Louis. Councilor Heldenbrand, where are we with the grant now? We are in two years of the four years of the grant, replied Louis. Councilor Johnson made a motion to recommend the award of ITB-24-012, Roswell Inclusive Park project phase 2-B to Alton’s Landscaping of $106,687.37 and that includes tax on the consent agenda. Councilor Halvorson seconded the motion. The motion passed with a 5-0 voice vote, with Councilor Cavin (via GoToMeeting). 8. Consider recommendation of approval of the ENMSF Lodgers' Tax Funding Request to City Council in the amount of $47,020, a reimbursement of 50% of eligible expenses at $94,040. Presented by TJ Conyers. The Eastern New Mexico State Fair is an annual 6- day event. The fair begins with a parade on Monday and closes Saturday night after the closing of the carnival. The fair operates on opening and closing day from noon to midnight and Tuesday through Friday from 4 to midnight. The mission of the fair is to educate as well as entertain. This event was voted on at Occupancy Tax Board with a vote of (3-0) at their May 21, 2024, meeting. Councilor Halvorson ask if security is included in here or is the city helping? The security during the week is covered under eligible expenses, replied TJ.  Councilor Halvorson made a motion to accept the consideration of the recommendation of the ENMSF Lodgers’ Tax funding request to City Council in the amount of $47,020 reimbursement of 50% of eligible expenses of $94,040.00 on the consent agenda. Councilor Heldenbrand seconded the motion. The motion passed with a 5-0 voice vote, with Councilor Cavin (via GoToMeeting). 9. Consider recommendation of approval of the Crash and Clash Youth Wrestling Tournament Lodgers' Tax Funding Request to City Council in the amount of $1,250, a reimbursement of 50% of eligible expenses at $2,500. Presented by TJ Conyers. Crash and Clash Youth Wrestling Tournament is a 2- day event. The tournament is held at Roswell High School. All planning and preparations are done by Roswell Invasion Wrestling Club. The estimated attendance is 1,500-2,000 and anticipated hotel room rentals is 200 +. Crash and Clash Youth Wrestling Tournament is a new event for Lodgers’ Tax. This item was voted on at the Occupancy Tax Board meeting with a vote of (3-0) at their May,21, 2024 meeting. Councilor Heldenbrand made a motion to place on the consent agenda the recommendation of approval of the Crash and Clash Youth Wrestling Tournament Lodgers’ Tax Funding request in the amount of $1,250.00. Councilor Halvorson seconded the motion. The motion passed with a 5-0 voice vote, with Councilor Cavin (via GoToMeeting). 10. Consider recommending approval of Warehouse Inventory Purchasing Authorization Request. Presented by Robert Glenn. This request covers proposed inventory purchase authorizations for City Warehouse inventory. The purchasing authorization is a “not to exceed” number for each vendor. This will allow us 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. Councilor Johnson, so this is an expense account and it’s all in inventory until certain department purchases it and it hits their budget then? Right, it’s on the balance sheet, replied Janie. For The Record: Councilor Halvorson left at 3:03:31PM and returned at 3:03:54 PM. For The Record: Councilor Cavin left GoToMeeting at 3:04 PM and returned via phone at 3:06 PM.  Councilor Heldenbrand would like an explanation why Robert wants to spend more money with these people. What is he buying? 11. Chairman Corn tabled the item until Robert Glenn arrives to the meeting. Consider approval for the cost of an internet and Transparent LAN (TLS) service and the following software maintenance/licenses. Presented by Jeff Bechtel. Seeking approval for the expense of the City’s internet and TLS service and the following software maintenance/licensing: 1. Plateau internet/TLS service 285,000.00 2. Extreme Networks - network equipment subscription 99,500.00 3. Brightly (Dude Solutions) - work order/asset program 93,000.00 4. Tyler - financial software yearly saas/support and upgrade fee 450,000.00 5. Central Square - support and maintenance for police/dispatch/fire 84,000.00 6. Wells Fargo - printer lease and maintenance 104,055.00 7. Code 3 - radio/microwave/dispatch maintenance 204,520.00 Councilor Halvorson made a motion to consider approval for the cost of the internet and Transparent LAN (TLS) service and the software maintenance/licenses for IT to the consent agenda. Councilor Johnson seconded the motion. The motion passed with a 5-0 voice vote, with Councilor Cavin (via GoToMeeting). 12. Consider approval of Resolution 24-XX approving year-end budget adjustments for fiscal year ending June 30, 2024. Presented by Toni Gomez. The year-end budget adjustments are required by the State of New Mexico Department of Finance Administration (DFA) for year-end adjustments for FY24. The final budget adjustment resolution (BAR) must be approved and submitted by July 31st. Councilor Heldenbrand made a motion to place on the consent agenda approval of Resolution 24-XX approving year-end budget adjustments for fiscal year ending June 30, 2024. Councilor Halvorson seconded the motion. The motion passed with a 5-0 voice vote, with Councilor Cavin (via GoToMeeting). APPROVAL OF MINUTES Councilor Cavin made a motion to approve the regular meeting minutes from June 6, 2024. Councilor Halvorson seconded the motion. Th motion passed with a 5-0 voice vote, with Councilor Cavin (via GoToMeeting). NON-ACTION ITEMS 13. Finance Departmental Reports. Presented by Tammi Smith. • Gross Receipts Tax • Cannabis Excise Tax • Lodgers Tax Report • Convention Center Bed Fee Councilor Corn suggested to remove the 2.2 million off of the calculations. For June. Assuming it will stay at this rate. Councilor Heldenbrand made a recommendation to have a budget review every quarter starting end of October and end of February to keep a close eye on it. For The Record: Chairman Corn returned to item 10. Robert Glenn replied to Councilor Heldenbrand’s question, Baker Utility, Core & Main and Ferguson Water Works, those are the three state approved vendors that we have state contracts with, that’s where we purchase the majority of our underground supplies. Valves, pipes all that kind of stuff. We’ve had a significant increase again in pricing. We have also had a significant increase in the number of valves around town that we have found broken that we need to dig up and replace. Some of these valves, you have a 12” value that’s $10,000. we have a whole bunch of those that need to be done. We also have the new infrastructure reinvestment money that will hopefully be coming in. Some of that will be going to our crew that will be doing work out in the field. We need to be able to purchase the parts and stuff to do that work. For The Record: Councilor Halvorson left the meeting at 3:22 PM. For The Record: Councilor Cavin left GoToMeeting at 3:31 PM. Councilor Johnson made a motion to put this on the consent agenda for the consideration of recommending the approval for warehouse inventory purchasing authorization request in the amount of $1,325,000. Councilor Heldenbrand seconded the motion. The motion passed with a 3-0 voice vote, with Councilors Halvorson and Cavin being absent. 14. Departmental Report - Roswell Public Library - report submitted, no questions 15. Museum Monthly Report - report submitted, no questions. . 16. Golf - Department Report. – report submitted, no questions. 17. Public Affairs Report. – report submitted, no questions.  18. Visitor Center Report. – report submitted, no questions. 19. MainStreet Roswell FY2024 Profit/Loss as of June 15 and Profit/Loss December 2023. For information only. 20. Informational Only. Expected purchases over $60,000 in the first 90 days of FY25. City manager, Chad Cole said the pickleball sidewalk work is currently being done and fence on either side. It should drive membership of the facility. Anyone who is not a member of the adult center, it’s only $49.00 for the year. 21. Informational Only - Carryover Purchase Orders at FY24 Year End. PUBLIC PARTICIPATION No public participation ADJOURN The meeting adjourned at 4:07 p.m.