Finance Committee

Regular Meeting of the Finance Committee City Hall – Large Conference Room 425 N. Richardson Ave. Thursday, November 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 24-23. ROLL CALL The meeting convened at 2:00 p.m. with Chairman Corn presiding, Councilor Halvorson, Councilor Johnson, Councilor Heldenbrand and Councilor Cavin were present. STAFF PRESENT Della Andazola, Hess Yntema, Mike Mathews, Chad Cole, Christopher J. Narin-Mahan, Abraham Chaparro, Debbie Reyer, Lorenzo Sanchez, Justin Jones, Caroline Brooks, Elizabeth Prichard, Louis Najar, Toni Gomez, Bruce Andler, Amalia Martinez, Becky Hicks, James MacCornack, Enid Costley, Bobbie Thompson, Jim Burress, Elizabeth Nulf, and with Melissa Garcia, TJ Conyers, and Jenna Lanfor via phone GUESTS PRESENT Mayor Timothy Jennings, Rita Kane-Doerhoefer, Raenada Mason, Terri Harbor, Tim Archibeque via phone. APPROVAL OF AGENDA Councilor Heldenbrand motion to amend the agenda to include items No. 17, 18, and 19 and to correct the numbering for the items to follow. Councilor Halvorson seconded the motion. The motion passed with a 5-0 voice vote. Councilor Cavin made a motion to approve the amended agenda as presented. Councilor Johnson seconded the motion. The motion passed with a 5-0 voice vote. Councilor Corn introduced Raenada Mason, public information office with U.S. Small Business Administration. Ms. Mason spoke on assistance available for those affected by the flood disaster. Budget Planning 1. 1st Quarter Review on FY25 Budget. Presented by Toni Gomez. Toni Gomez handed out FY24-25 Budget report for August 2024, September 2024, and October 2024. Chairman Corn started with the DFA Report. Mr. Cole state the first quarter actuals have been submitted to DFA as of October 31st and are timely. Chairman Corn requested a copy of the 1st Quarter Report. Chairman Corn reiterated the requirement of getting a PO. Councilor Heldenbrand stated a purchase without a PO is not validated. 2. Future Budget Planning. Presented by Toni Gomez. Toni Gomez handed out Report Recap – Roswell (City) – FY2025 Q1 Chairman Corn went over the handouts and the budget adjustments. Councilor Heldenbrand stated he has concerns with the general fund, enterprise funds have money coming in from different sources. Chairman Corn asked for the first quarter review. Mr. Cole handed out the Report Recap-Roswell-FY25 Q1. Chairman Corn asked for the FY25 Q1 payroll information. Mr. Cole stated he and Toni were working to provide the payroll information for the FY25 Q1 payroll at next Finance Committee meeting on December 5, 2024. Councilor Heldenbrand stated we have other issues we need clarification on State Tax and Reg has allowed people to be on a 90-day hiatus in paying their GRTs. We won’t see our tax for January, February, and March and that could be a big problem for us. This could be real damage to us, since we are bringing in $5,000,000.00 on average per month. 3. Review Lodger's Tax Income and Expenses. Presented by Toni Gomez. Ms. Gomez reported Lodger’s Tax received $617,061.15, expenses is $244,432.36 year to day. Councilor Heldenbrand asked what is the balance in Lodger’s Tax? Ms. Gomez responded beginning cash was $1,512,522, year to date actuals $617,000 and our total expenditures we have $ 1.8 in our cash balance. Chairman Corn asked if we committed some of the money to RARA. We have $300,000, replied Ms. Gomez.  4. Review Water and Waste Water FY25 budget and future budget planning. Presented by Lorenzo Sanchez. Mr. Sanchez gave an overview of the infrastructure damage to Spring River and to the waste water sewer lines. Mr. Sanchez included there was 700 ft of sewer lines wasted out which are currently by-passed, Mr. Sanchez estimated damages at $750 million. Mr. Sanchez also included an overview of the damages to the Waste Water Treatment Plant which include several basins full of solids with both digesters down. Mr. Sanchez did not provide an estimate on the damages to the Waste Water Treatment Plant. Action Items 5. Consider recommending approval for Landfill to reallocate funds to cover expenses for infrastructure $70,240, equipment $300,000, vehicles $52,602, and building improvements $134,000 for FY25 totaling $556,842. Presented by Abraham Chaparro. Consider recommending approval for Landfill to reallocate funds to cover expenses: Ms. Reyer presented a handout with the amended changes. • $70,240 from 52014342-817504 Capital Outlay - Infrastructure (New Gates), to 52014342- 654801 Contract - Professional Services to cover the negative total on the account and be able to replenish the funds to Recycling. • $300,000 from 52014342-817505 Capital Outlay - Equipment to 52014342- 654801 to cover the PO for Disaster Relief to J&H Services New total $581,016.66. • $52,602.00 from Capital Outlay - Vehicles (Supervisor Truck) to 52014342- 614004 M&R Equipment to last the rest of the fiscal year. • $134,000.00 from Capital Outlay - Building Improvements instead of getting a Seconded well replacing the Fire Suppression System $60,000, and the. (New Amount $60,000) Ms. Reyer made changes to the initial request to consider approval for reallocation funds to cover expenses for an amount of $556,842 to the new amount of $640,918.66 and change vendor from J&H Services to CES. FOR THE RECORD: Chair Corn skipped to Item 7 to allow Ms. Reyer to re- calculate the item line totals to reflect the changes from the initial PO in the amount of $556,842.00 to total amount of $640,918.66. 7. Consider recommending approval to award ITB 25-005-Bulk Fuel to AWC Propane and allow the City Manager to enter into a one (1) year contract period  with three (3) additional 12-month periods, mutually agreeable extensions. (Hicks) Presented by Becky Hicks. Consider recommending approval to award ITB 25- 005-Bulf Fuel to AWC Propane and to allow the City Manager to enter into a (1) year contract period with three additional 12-month periods, mutually agreeable extensions. Bulk Fuel has been included in the FY25 Budget and the City posted ITB-25-005- Bulk Fuel on September 8, 2024. One bid was received on October 1, 2024 from AWC Propane of Roswell, NM. Councilor Heldenbrand made a motion to consider recommendation of approval to award ITB 25-005-Bulk Fuel to AWC Propane and allow the City Manager to enter into one (1) year contract period with three (3) additional 12-month periods, mutually agreeable extensions to the consent agenda. Councilor Halvorson seconded. The motion passed with a 5-0 voice vote. 9. Consider recommending approval of award of ITB-25-004, Spring River Trail Connection to Cielo Grande Project to Constructors, Inc. in the amount of $314,937.05 including GRT. (Najar) Presented by Louis Najar. Bids received on October 8, 2024 for the subject project have been reviewed. A Bid Tabulation was attached to Constructors, Inc in the amount of $314,937.05 including tax of 7.8958%. Councilor Johnson asked what is the shelf life on the grant? First extension December 2024, second extension reversion date is June 30,2025, replied Mr. Najar Councilor Halvorson made a motion to consider recommendation of approval of award of ITB-25-004, Spring River Trail Connection to Cielo Grande Project to Constructors, Inc., in the amount of $314,937.05 including GRT on the consent agenda. Councilor Heldenbrand seconded the motion. The motion passed with a 5-0 voice vote. For the Record: Chairman Corn went back to item 5. 5. Chairman Corn explained changes to the agenda abstract – First paragraph: $134,000 is now $341,016.66. The total on the same paragraph should be $640,918.66. The last item on the list, the $134,000 becomes $341,016.66 and removing HVAC $60,000 and Domestic Water System $10,400. Ms. Reyer replied yes, we are just keeping the Fire Suppression System.  Chairman Corn asked what is the $281,016.66 for? It is going into 654,801, replied Ms. Reyer. Chairman Corn reiterated it is going with $300,000 and this is an additional $281,016.66? Yes, replied Ms. Reyer. Councilor Heldenbrand stated the total is now $581,016.66 confirmed by Ms. Reyer. Councilor Heldenbrand made a motion to amend the agenda abstract to reflect building improvements $341,016.66 for a grand total of $640,918.66. Asking for funds to be reallocated the last item will change from $134,000 and will now be $341,016.66 from the building outlay, remove the HVAC for $60,000 and the Domestic Water System for $10,400, add J&H PO for emergency repairs in the amount of $281,016.66. Councilor Johnson seconded the motion. The motion to amend the agenda passed with a 5-0 voice vote. Councilor Heldenbrand made a motion to consider recommendation of approval of amended agenda for Landfill to reallocate funds to the consent agenda. Councilor Johnson seconded the motion. The motion passed 5-0 voice vote. 6. Consider recommending approval for a budget transfer totaling $254,000 from Landfill (52014342) to Collections (52004341) for the Solid Waste Department. Presented by Abraham Chaparro. The Collections division of the Solid Waste Department has already expended 48.6 % of their M&R Vehicle budget. To make sure there is enough money in the accounts to last the year we are requesting to move $250,000.00 From 52014342-817505 Capital Outlay – Equipment to 52004341-614012 M&R – Vehicle and $4,000.00 be transferred from 52014342- 817505 Capital Outlay to 52004341-655005 Contract-Online Collection. FOR THE RECORD: Councilor Calvin left meeting at 3:40 pm. Councilor Johnson made a motion to consider recommendation of approval for a budget transfer totaling $254,000 from Landfill (52014342) to Collections (52004341) for the Solid Waste Department and for $4,000 to be transferred from 52014342-817505 Capital Outlay to 52004341-655005 Contract-Online Collection to the consent agenda. Councilor Heldenbrand seconded the motion. The motion passed with a 4-0 voice vote, with Councilor Cavin being absent. 8. Consider approval for ratification of disaster relief PO# 22501320 in the amount of $300.00 to J&H Services. (Chaparro)  Presented by Abraham Chaparro. Consider approval for ratification of disaster relief PO #22501320 in the amount of $300,000.00 to J&H Services. Due to unprecedented flooding, we needed to contract out the documentation and material reclamation within the city. The City Manager approved the contract with J&H Services (with State Contractor Agreement) for the Solid Waste Department and created a purchase order #22501320 in the amount of $300,000.00 required for FEMA’s rules for disaster relief. In expectation of the Federal Disaster Declaration, the City of Roswell is anticipating the reimbursement of these funds. Councilor Heldenbrand made a motion to amend agenda to consider approval for ratification of disaster relief PO #22501320 in the amount of $581,016.66 to Cooperative Educational Services (CES) from J&H Services. Councilor Halvorson seconded the motion. The motion to amend agenda passed with a 4-0 voice vote, with Councilor Cavin being absent. Mr. Chaparro explained the need to ratify the purchase order to CES from J&H in the amount of $581,016.66. Councilor Halvorson made a motion to consider approval for ratification of disaster relief PO #22501320 in the amount of $581,016.66 to Cooperative Education Services as amended on the consent agenda. Councilor Johnson seconded the motion. The motion passed with a 4-0 voice vote, with Councilor Cavin being absent. FOR THE RECORD: Councilor Heldenbrand stated item 5 abstract was not amended to reflect CES as the vendor for PO #22501320 and made a motion to go back and revisit item 5. Councilor Halvorson seconded the motion. The motion passed with a 4-0 voice vote, with Councilor Cavin being absent. 5. Councilor Heldenbrand made a motion to amend the item as originally passed, second bullet point changed the name on the PO for disaster relief to reflect CES and the last bullet point where we added J&H emergency repairs for $281,016.66 that needs to be changed to CES. Councilor Halvorson seconded the motion. The motion passed 4-0 voice vote, with Councilor Cavin being absent. Councilor Heldenbrand made a motion to consider the recommendation as amended to reallocate fund for the landfill to the consent agenda. Councilor Johnson seconded the motion. The motion passed 4-0 voice vote, with Councilor Cavin being absent.  FOR THE RECORD: Chairman Corn moved to item 10. As Items 6-9 have already been voted on. FOR THE RECORD: The approved total $640,918.66 was corrected at City Council Meeting on November 14,2024 to reflect the actual numbers given at the finance committee meeting. Refer to City Council for corrected totals. 10. Consider recommending approval of purchase order ratification for a vendor change to Heil of Texas for the Street Department's sweeper purchase for $374,027.00, and cancel the initial purchase order #22400545 to Pete's Equipment for $374,052.00. (Najar) Presented by Louis Najar. Consider recommending approval of purchase order ratification for a vendor change to Heil of Texas for the Street Department's sweeper purchase for $374,027.00, and cancel the initial purchase order #22400545 to Pete's Equipment for $374,052.00. Mr. Najar attached quote from Heil of Texas, which was $25 less expensive than Pete’s Equipment quote. Councilor Johnson made a motion to consider recommendation of approval of purchase order ratification for a vendor change to Heil of Texas for the Street Department’s sweeper purchase for $374,027.00, and cancel the initial purchase order #22400545 to Pete’s Equipment for $374,052.00, on the consent agenda. Councilor Halvorson seconded the motion. The motion passed with a 4-0 voice vote, with Councilor Cavin being absent. 11. Consider recommending approval for purchase order requisition to Tank Industry Consultants for $450,000 to provide 3rd party inspection and quality control for Country Club Reservoir Repair Project. (Najar) Presented by Louis Najar. This purchase order would provide for 3rd party inspection expenses for Country Club Reservoir Repair Project. Tank Industry Consultants is an approved City On-Call vendor. Tank Industry Consultants has personnel with appropriate qualifications and certifications to oversee reservoir repair work. Infrastructure Committee on 10/21/2024 voted (4-0) to recommend PO requisition for Tank Industry Consultants for $450,000 to provide 3rd party inspection and quality control for Country Club Reservoir Repair Project to November 7, 2024 Finance Committee meeting. Councilor Heldenbrand made a motion to consider recommendation of approval for purchase order requisition to Tank Industry Consultants in the amount of $450,000 to provide third party inspection and quality control for Country Club  Reservoir Repair Project on the consent agenda. Councilor Johnson seconded the motion. The motion passed with a 4-0 voice vote, with Councilor Cavin being absent. 12. Consider recommending approval for the award of Roswell Air Center Hobson Road Lift Station Design Project to Freese & Nichols Inc. in the amount of $266,032.00 which includes GRT. (Najar/MacCormack) Presented by James MacCornack. Consider recommending approval for the award of Roswell Air Center Hobson Road Lift Station Design Project to Freese & Nichols Inc. in the amount of $266,032.00 which includes GRT. Project is on approved FY25 Budget for $251,000, a budget adjustment of $15,032 will be required to cover the actual total $266,032.00 versus FY25 budget amount of $251,000. Councilor Johnson made a motion to amend abstract to reflected the adjusted amount of $15,032 to reflect $5,526 and the total amount from $266,032.00 changed to $256,526.00. Councilor Heldenbrand seconded the motion. The motion passed with a 4-0 voice vote, with Councilor Cavin being absent. Mr. MacMacornack presented the amended award of the Roswell Air Center Hobson Road lift station design project to Freese & Nichols Inc. in the amount of $256,526.00 with includes GRT. Councilor Halvorson made a motion to consider recommending approval of the amended version of Roswell Air Center Hobson Road Lift Station Design Project to Freese & Nichols Inc. in the amount of $256,526.00 which includes GRT to consent agenda. Councilor Johnson seconded the motion. The motion passed with a 4-0 voice vote, with Councilor Cavin being absent. 13. Consider recommending approval of purchase order requested for Noon Optimist Park Lighting upgrades from J&G Electric in the amount of $649,752.98 including GRT. (Najar/MacCormack) Presented by James MacCornack. Councilor Heldenbrand stated that this does not include repairs to existing code violation for the unfit system and include tree removal, painting, digging through hard soil, So I am afraid this purchase order is a start of initial costs. Until we get something more conclusive on what the total cost is here, I can’t support this today.  Councilor Johnson made a motion to postpone Item 13 to December 5, 2024, Finance Committee Meeting, to give time for vendors to provide an itemization and breakdown of billing costs. Halvorson seconded the motion. The motion passed with a 4-0 voice vote, with Councilor Cavin being absent. 14. Consider recommending approval of award of ITB-24-017, BLM Loading Ramp and Drainage Extension to Constructor's Inc., in the amount of $448,940.40, which includes GRT. (Yntema) Presented by Jenna Lanfor. Consider recommending approval of award of ITB- 24-017, BLM Loading Ramp and Drainage Extension to Constructor's Inc., in the amount of $448,940.40, which includes GRT. The City posted ITB-24-017 BLM Loading Ramp and Drainage Extension on June 30, 2024. One bid was received on August 6, 2024. Armstrong Engineering reviewed bids and recommends the award of Schedule I to Constructors Inc., in the amount of $448,940.40 which includes GRT. Ms. Lanfor made the presentation via phone for recommendation of the BLM Loading Ramp and Drainage Extension project is included in the BLM Taxiway together. I did not realize that is how it was budgeted. We are going to need to utilize that same funding. There is a slight increase for the bid that came in at $448,940.40. I am putting an increase of $148,940.40. The BLM is paying for this by reimbursement through their lease agreement, L23PL00005 dated 03/28/2023, is paid for 100% as we get the project done. This is a 90-day completion project. It will start now between the fire season and complete and be finished this fiscal year. Let me add that the Taxiway project is without total funding. I do have the coverage in this budget to manage this overage to get it done within this fiscal year. I asking for the award to be granted to Constructor’s so we can proceed with the project. Councilor Halvorson made a motion to recommend approval of award of ITB-24- 017, BLM Loading Ramp and Drainage Extension to Constructor's Inc., in the amount of $448,940.40, which includes GRT to the consent agenda. Councilor Heldenbrand seconded the motion. The motion passed with a 4-0 voice vote, with Councilor Cavin being absent. Chairman Corn ask how much it is going to cost to complete the project and how much is it short? For the BLM Taxiway we are $1,700,000 short at this time, replied Ms. Lanfor. Mayor Jennings requested to put this on the ICIP and ask for the additional money. 15. Consider recommending approval of award of ITB 24-015, Schedule I, Phase I, Apron Concrete Pavement, Joint Sealing, Spall Repair and Slab Replacement Project to Constructors, Inc., in the amount of $2,314,429.65, including GRT and approved in FY25 budget and consider recommending approval of award of ITB 24-015, Schedule II, Apron Mill and Overlay, including apron preservation project to Constructors, Inc., in the amount of $334,671.19, including GRT and approved in the FY25 budget. (Yntema) Presented by Jenna Lanfor: this is to ask for approval of award of ITB 24-015, Schedule 1, Phase 1, Apron Concrete Pavement this is being funding by MAP Military Airport Program by the FAA (did not have the actual match available) It is a match and it is on an extension. Tim Archibeque, Lockner Armstrong, 90-match using 2020 money, stated the grant will be used to complete Phase 1 Apron Concrete Pavement and slab replacement and complete a portion of the Apron mill and fill and request more funding. Councilor Heldenbrand stated $2,314,429.65 to Constructors including GRT and then we are going to do overlay to Constructors for $334,671.19 that comes to $2,649,000 I don’t understand the difference between the abstract and the budget analysis says or what we are trying to approve here because now there comes a difference between those two numbers. A difference of $213,000 between what you are asking us to accrue. Is this $2,800,000 what we are trying to approve? Because I see your budget analysis. The budget is allowing us $2,862,772 this will accomplish Phase I minus a section, replied Ms. Lanfor. Mr. Archibeque stated there is $2,649,644 to complete Phase I and a part of Phase II. Councilor Heldenbrand made a motion to recommend approval of award of ITB 24-015, Schedule I, Phase I Apron Concrete Pavement in the amount of $2,314,429.65, including GRT to Constructors and Schedule II in the amount of $334,671.19 including GRT to the consent agenda. Councilor Halverson seconded the motion. The motion passed 4-0 voice vote, with Councilor Cavin being absent. 16. Consider recommending adoption of Resolution 24-XX approving budget adjustment for the fiscal year ending June 30, 2025. (Gomez) Presented by Toni Gomez. Resolution 24-XX - Consider approval of Resolution 24-XX approving budget adjustment for the fiscal year ending June 30, 2025 Budget adjustments for various departments increase in Revenues totaling $349,044.44 and Increase Expenses totaling $802,544.44. Along with various transfers for solid waste outline in exhibit A included in the agenda packet.  Councilor Heldenbrand made a motion to adopt Resolution 24-XX - approving budget adjustment for the fiscal year ending June 30, 2025 on the consent agenda. Councilor Johnson seconded the motion. The motion passed with a 4-0 voice vote, with Councilor Cavin being absent. 17. Consider approval for ratification of disaster relief PO #22501369 in the amount of $1,400,000 to M&M 4 HIM. LLC SERVEPRO of SOUTHWEST LUBBOCK. (Brooks) Presented by Caroline Brooks. The $1,400,000 for disaster relief to include the initial amount quoted by SERVEPRO in the amount of $850,000 and other unforeseen costs associated with disaster relief. Chairman Corn stated the amount quoted is $850,000 and asked if the Museum was using insurance money for this. Yes, replied Ms. Brooks, Councilor Halvorson made a motion to approve ratification of disaster relief PO #22501396 up to $850,000 to M&M 4 Him., LLC SERVEPRO of SOUTHWEST LUBBUCK to the consent agenda. Councilor Heldenbrand seconded the motion. The motion passed with a 4-0 voice vote, with Councilor Cavin being absent. 18. Consider approval for ratification of disaster relief PO #22501352 in the amount of $107,062.59 to Paul Davis Restoration of NM, INC. (Burress) Presented by James Burress. Requesting ratification for disaster relief for PO #22501352 for $107,062.59 to Paul Davis Restoration of NM, INC for the Park Building and storage building located at 1101 W. Fourth St, at Cahoon Park. Councilor Johnson made a motion to approve ratification of PO #22501352 for $107,062.59 to Paul Davis Restoration of NM, INC to the consent agenda. Councilor Heldenbrand seconded the motion. The motion passed with a 4-0 voice vote, with Councilor Cavin being absent. 19. Consider approval for ratification of disaster relief PO #22501417 in the amount of $103,202.33 to Abraham’s Construction. (Najar) Presented by Louis Najar. There was a lot of road damage done by the flood. Using general fund money for other projects diverted to PO #22501417 for flood damage. Not asking for any money we are using existing money. Just doing triage. Councilor Heldenbrand asked if the engineering and street department are in the process of doing an assessment on the roads to see what was really damaged from the flood so we can get roads redone on FEMA’s reimbursement program? That is a reimbursement. I am not asking for any money, replied Mr. Najar.  Councilor Heldenbrand stated this is a separate question. The assessment for roads being done is for triage, those roads may need to be fully replaced, while you are doing this triage. What you feel is damage from the storm and what will be totally replaced. Yes, replied Mr. Najar. Mr. Cole added that the City has done a cursory of an assessment of the roads and bridges. Councilor Johnson made a motion to approve the ratification of disaster relief PO #22501417 for $103,202.33 to Abraham’s Construction to the consent agenda. Councilor Halvorson seconded the motion. The motion passed with a 4-0 voice vote, with Councilor Cavin being absent. APPROVAL OF MINUTES 20. Consider approval of the October 3, 2024, Regular Finance Committee Meeting Minutes. Councilor Heldenbrand made a motion to approve the regular meeting minutes from October 3, 2024. Councilor Halvorson seconded the motion. The motion passed with a 4-0 voice vote, with Councilor Cavin being absent. NON-ACTION ITEMS 21. Finance Departmental Reports. Presented by Elizabeth Nulf • Gross Receipts Tax • Cannabis Excise Tax • Lodgers Tax Report • Convention Center Bed Fee Councilor Heldenbrand stated the GRT allocation slides was not included in the agenda packet. He asked if copies could be sent to the councilors. Yes, replied Ms. Nulf. Councilor Heldenbrand stated the calculations were not correct. Mr. Jones will look at the data on the report and correct the calculation for the December Finance Committee. 22. Departmental Report - Roswell Public Library Report submitted, no questions 23. Golf - Department Report.  No report was submitted, James Burress shared updates at Finance Committee meeting. No questions. 24. Museum Monthly Report Report submitted, Caroline gave an update of the flood damage and briefed the committee on the historic parts of the museum regarding historic preservation. 25. Public Affairs Report. Reports submitted as stands, no questions. Councilor Halvorson made a comment regarding the good job on the truck-or- treat. 26. Visitor Center Report. Report submitted as stands, no questions. PUBLIC PARTICIPATION No public participation ADJOURN The meeting adjourned at 5:28 p.m.