Finance Committee

Regular Meeting of the Finance Committee City Hall – Large Conference Room 425 N. Richardson Ave. Thursday, December 5, 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, and Councilor Cavin were present. Councilor Heldenbrand was absent. STAFF PRESENT Della Andazola, Hess Yntema, Mike Mathews, Chad Cole, Lee Rogers, Christopher J. Narin-Mahan, Abraham Chaparro, Debbie Reyer, Lorenzo Sanchez, Justin Jones, Ron Garcia, Caroline Brooks, Elizabeth Prichard, Louis Najar, Toni Gomez, Bruce Andler, Amalia Martinez, Becky Hicks, James MacCornack, Enid Costley, Jim Burress, Elizabeth Nulf, Melissa Garcia, Jessica Vickers, and TJ Conyers GUESTS PRESENT Rita Kane-Doerhoefer, Terri Harbor, Alfredo Garcia, Barbara Gomez, Peggy Sesky, and Kyle Bullock. APPROVAL OF AGENDA Councilor Johnson made a motion to amend the agenda to move item No. 11 to No. 12 and No. 12 to No. 11 and to leave the numbering as is for the items to follow. Councilor Cavin seconded the motion. The motion passed with a 4-0 voice vote, with Councilor Heldenbrand being absent. Councilor Johnson made a motion to approve the agenda as amended as presented. Councilor Johnson seconded the motion. The motion passed with a 4-0 voice vote, with Councilor Heldenbrand being absent. APPROVAL OF MINUTES 1. Consider approval of the November 7, 2024, Regular Finance Committee Meeting Minutes. Councilor Halvorson made a motion to approve the regular meeting minutes from November 7, 2024. Councilor Cavin seconded the motion.  The motion passed with a 4-0 voice vote, with Councilor Heldenbrand being absent. BUDGET PLANNING 2. Payroll Summary. Presented by Elizabeth Nulf. Elizabeth Nulf handed out a FY25 Payroll Summary report for July 2024, August 2024, and September 2024. Ms. Nulf presented on the totals from the handout as $9,800,000 gross payroll for the FY25 1st Quarter and $3,719,822.51 for FY25 1st Quarter employer paid benefits provided to the employees. Councilor Cavin requested information regarding temporary employees from a temp agency as he had addressed the cost of such services in the past. Ms. Nulf only had knowledge of temp employees on the City of Roswell payroll. 3. Future Budget Planning. Chairman Corn started by asking Mr. Cole for any thoughts on the future budget and Mr. Cole stated the FY25 1st Quarter was finished up and soon Finance Department will be wrapping up the FY25 2nd Quarter, starting with payroll. Mr. Cole stated he would be starting in January 2025, for next year budget process, with the detail review of payroll which is a vital part of the City, fixed costs, allocations to the various departments, and focus on what is an essential expense or cost. Chairman Corn stated the departments will need to be very careful with expenses. Chairman Corn asked Mr. Cole on any thoughts on possible budget cuts as the City is in terrible shape. Mr. Cole is aware of the impact of the flood disaster, reason the City has hired DRS, a professional consulting firm with expertise in the FEMA funding process. The fee for the first phase will be covered with a grant, thanks to Dora Batista with SENMED, so we were able to get started with the consultants. The remaining fee for the consulting firm will be reimbursed by FEMA. Chairman Corn stated he has concerns with the future budget as well as concerns for the re-building after the flood which could be up to 200 million. Chairman Corn indicated his concern in regards to the re-build reimbursement percentages. Chairman Corn stated once the re-build begins there could be additional cost and additional requirements with possible gaps in funding. Mr. Cole provided information in regards to status meetings held regularly and emphasized on DRS, the professional consulting firm will navigate and assist with the FEMA funding process. Chairman Corn and City Manager, Chad Cole, praised all the City employees for the exceptional job during and after flood disaster.  4. Review Lodger's Tax Income and Expenses. Presented by Toni Gomez. Ms. Gomez provided an attached report detailing a review of the lodger’s tax income and expenses. Ms. Gomez presented on the attachment, reported beginning cash of $1,512,522.00 and ending cash of $297,732.63, at 11/26/2024. Councilor Johnson asked on the transfer for $530,500.00, listed on the handout under acronym PbRel-SpEV, Ms. Gomez replied it was for approved sponsorships and Reno Air Show. Mr. Cole stated also for advertising. Councilor Halvorson asked if the total on the handout under acronym TsfToZoofor for $1,016,332, the Zoo, was this separate from the flood damage? Ms. Gomez replied correct, the total did not have to do with the flood disaster. FLOOD DISASTER UPDATE 5. Flood Disaster Purchase Order List Presented by Toni Gomez. Councilor Halvorson asked if the attachment total in the amount of $2,151,130.47, included all the purchase orders and Chairman Corn responded the attachment total amount of $2,151,130.47 included the purchase orders for the flood disaster to date that have gone through Purchasing Department. 6. Road and Bridge Infrastructure Presented by Louis Najar. Mr. Najar started with an overview on the attachment total in the amount of $53,301,300.00. Mr. Najar provided an overview on the damage to roads, bridges, and sewer lines as extensive damage, with emphasis on the $53,301,300.00, total listed on the attachment provided was just an estimate at this point. Mr. Najar made note the $39,100,000.00 line item for Other Street Pavement repairs was for a fill not a re-build or even refill. Mr. Najar stated his department met with FEMA for a week for training and discuss mitigation to prepare and discuss prevention measures set by FEMA. Mr. Najar is the official designated Flood Plain Manager by signed ordinance dated in 2009. The City of Roswell Mayor at that time was Sam LaGrone. Mr. Najar stated he is working with FEMA out of Louisiana, Section 6. Mr. Najar stated citizens can go to the Roswell City website to view the flood zone. Mr. Najar stated FEMA informed him they identified 145 homes damaged by the flood in October. 7. Building Infrastructure and Property Presented by Lee Rogers. Mr. Rogers gave an overview of the damage to 39 properties, with 13 properties with significant flood damage. Mr. Rogers stated the insurance adjusters, Crawford, provided high level estimates indicating flood  damage to insured properties at $50,000,00.00. Mr. Rogers also indicated the report provided found the insurance policy limit for a flood event is $10,000,000.00. Mr. Rogers also gave an overview on the facilities located in the flood plain with repair estimates to those properties as Adult Center $5,273,370.05, Parks/IT Office $930,957.78, Convention Center $11,521,828.23, and the City Museum $26,039,922.98, a total of four at $43,766,076.04. Mr. Rogers made note that only the building costs beyond insurance policy limits are eligible for cost recovery from FEMA. Mr. Rogers also noted several additional items were damaged such as fine arts, IT equipment, and personal property. Mr. Rogers emphasized the importance of mitigation for future prevention required by FEMA when repairing or re-build which DRS, the consulting firm, hired by the City, will also assist and navigate through this process. 8. Debris Removal Update due to Flood Disaster Presented by Abraham Chaparro. Mr. Chaparro gave an overview on the attachments which included copies of actual invoices for debris cleanup. Mr. Chaparro also briefed on deadlines on the curb side pickup as requested by Mr. Cole, the City Manager. Mr. Chaparro stated for residential citizens clearing up debris moving forward please move this debris to their alley for pickup. Chairman Corn asked Mr. Chaparro to provide an off the head estimate in regard to the future costs still needed after what has been spent, Mr Chaparro answered with an estimate of $800,000. 9. Review Water and Waste Water FY25 budget and future budget planning. Presented by Lorenzo Sanchez. Mr. Sanchez provided a handout. Mr. Sanchez gave an overview on the handout items with a summarized progress report in regards to the progress invoice from J&G Electric and on the handout in regards to White Cloud Pipeline Corp. for replacement of flood damaged aerial pipe crossing repairs at Pennsylvania Bridge over Spring River, and Kentucky Ave Bridge over Spring River. Mr. Sanchez also gave an overview of the repair of the flood damaged aerial pipe at Lea Ave Bridge over Spring River. Action Items 10. Resolution 24-55 Consider recommending adoption of Resolution 24-55 for Travel Expenditures. Presented by Hess Yntema. Mr. Yntema stated the attached Resolution 24-55 for travel expenditure is an update which aligns with the current State law for the City’s travel expenditures.  Councilor Cavin made a motion to consider adoption of Resolution 24-55 on the consent agenda. Councilor Halvorson seconded the motion. The motion passed with a 4-0 voice vote, with Councilor Heldenbrand being absent. 11. Consider recommending authorization of requisition No. 12502011 to Quality Tool & Equipment DBA Best Buy Automotive Equipment for the West Lot TSU Evidence Building in the amount of $44,990.00 for ten (10) Atlas Garage Pro Parking 4 Post Lifts for vehicle evidence storage. Transferring funds from Capital Expenses – Building GL No. 1101411-817503 to Maintenance and Repairs Building 1101411-614002. Presented by Elizabeth Prichard. Funding Source is per Capital Appropriation No. 21-F2693 for $350,000, $60,168.82 available. Ms. Prichard stated transferring funds from Capital Expenses – Building GL No. 1101411-817503 to Maintenance and Repairs Building 1101411-614002, and funding source is per Capital Appropriation No. 21-F2693 for $350,000, with $60,168.82 available. Councilor Johnson made a motion to consider recommendation of authorization of requisition No. 12502011 to Quality Tool & Equipment DBA Best Buy Automotive Equipment for the West Lot TSU Evidence Building in the amount of $44,990.00 for ten (10) Atlas Garage Pro Parking 4 Post Lifts for vehicle evidence storage to the consent agenda. Councilor Halvorson seconded the motion. The motion passed with a 4-0 voice vote, with Councilor Heldenbrand being absent. 12. Resolution 24-56 - consider recommending adoption of Resolution 24-56 approving budget adjustment for the fiscal year ending June 30, 2025. Presented by Toni Gomez. Consider recommending authorization to add a budget adjustment from Line Item 11 to Resolution 24-56 in the amount of $44,990.00. Councilor Halvorson made a motion to consider recommending authorization to add a budget adjustment from Line Item 11 to Resolution 24-56 in the amount of $44,990.00 to the consent agenda. Councilor Johnson seconded the motion. The motion passed with a 4-0 voice vote, with Councilor Heldenbrand being absent. Presented by Toni Gomez. Consider recommending adoption of Resolution 24- 56, approving budget adjustment for the fiscal year ending June 30, 2025. The updated total is $378,219.10.  Councilor Cavin made a motion to consider recommendation of adoption of Resolution 24-56 approving budget adjustment in the amount of $378, 219.10 for the fiscal year ending June 30, 2025 to the consent agenda. Councilor Johnson seconded the motion. The motion passed with a 4-0 voice vote, with Councilor Heldenbrand being absent. 13. Consider recommending authorization of purchase order requested for Noon Optimist Park Lighting upgrades from J&G Electric in the amount of $649,752.98 including GRT. Presented by James MacCornack. Consider recommending authorization of purchase order requested for Noon Optimist Park Lighting upgrades from J&G Electric in the amount of $649,752.98 including GRT. Mr. MacCornack provided an attachment for the J&G Electric estimate reflecting the total including GRT as requested by Chairman Corn in the November 7, 2024 meeting. The total from J&G Electric estimate including GRT as attached is $649,752.98, and funding source is per State Appropriation 24-I2881 for $640,000 available. Budget transfer for 9,752.98 will be required to cover shortfall. Councilor Johnson made a motion to consider recommending authorization of purchase order requested for Noon Optimist Park Lighting upgrades from J&G Electric in the amount of $649,752.98 including GRT to the consent agenda. Councilor Cavin seconded the motion. The motion passed 4-0 voice vote, with Councilor Heldenbrand being absent. 14. Consider recommending authorization for ratification of disaster relief PO 22501472 in the amount of $86,748.22 to Abraham’s Construction for repair of damaged bridge rail on the Kentucky St Bridge over Spring River. Presented by James MacCornack. Consider recommending authorization for ratification of disaster relief PO 22501472 in the amount of $86,748.22 to Abraham’s Construction for repair of damaged bridge rail on the Kentucky St Bridge over Spring River. Due to flood contract work for emergency repair of bridge rail on the Kentucky St. Bridge over the Spring River needs to be contracted out. Councilor Halvorson made a motion to consider recommending authorization for ratification of disaster relief PO 22501472 in the amount of $86,748.22 to Abraham’s Construction for repair of damaged bridge rail on the Kentucky St Bridge over Spring River to the consent agenda. Councilor Johnson seconded the motion. The motion passed with a 4-0 voice vote, with Councilor Heldenbrand being absent. 15. Consider recommending authorization for an expenditure of $2,406,178.84, including GRT, for ITB-25-003, Elm St Bridge Replacement Project to Abraham’s Construction. Presented by Louis Najar. Bids received on November 12, 2024, for the subject project have been reviewed. A Bid Tabulation is attached and one bid was received from Abraham’s Construction for $2,406,178.84 including GRT. The current available amount in Tyler/Munis FY25 capital budget is $3,229,204.30. Project funded 100% by NMDOT project number CN 2104850. Councilor Cavin made a motion to consider authorization for an expenditure of $2,406,178.84 including GRT, for ITB-25-003, Elm St Bridge Replacement Project to Abraham’s Construction to the consent agenda. Councilor Halvorson seconded the motion. The motion passed with a 4-0 voice vote, with Councilor Heldenbrand being absent. 16. Resolution 24-XX:Support for NM Matching Fund Application for SS4A-consider recommending adoption of Resolution 24-XX to support application to the New Mexico Matching Fund to provide matching funds for “Safe Streets and Roads 4 All” funding application. Presented by James MacCornack. City of Roswell has a FHWA accepted Safe Streets and Roads For All Comprehensive Safety Action Plan. Plan has identified systematic safety treatments that are recommended to be applied at various locations throughout the City. These treatments are individually low-cost and include improved roadway striping, pavement markings, and visibility enhancements at signalized intersections. Application to FHWA for project funding would depend upon NM Matching Fund Award. Intent is to achieve 100% funding through New Mexico Matching Fund and FHWA funding. Councilor Halvorson made a motion to consider recommending adoption of Resolution 24-XX to support application to the New Mexico Matching Fund to provide matching funds for “Safe Streets and Roads 4 All” funding application to the consent agenda. Councilor Cavin seconded the motion. The motion passed 4-0 voice vote, with Councilor Heldenbrand being absent. 17. Ordinance 24-XX - consider recommendation to authorize to hold a public hearing on proposed Ordinance 24-XX for emergency loan funding the New Mexico Environment Department for sewer repairs required after the historical flooding disaster in October 2024.  Presented by James MacCornack. Consider recommendation to authorize to advertise to hold a public hearing on Proposed Ordinance 24-XX for emergency loan funding from NM Environment Department for sewer repairs required after the flooding disaster in October 2024. The NM Environment Department would provide $1,040,000 to assist with the sewer repairs caused by flood disaster and City would repay once FEMA reimbursement is received. Councilor Halvorson made a motion to consider recommendation to authorize to advertise to hold a public hearing on Proposed Ordinance 24-XX for emergency loan funding from NM Environment Department for sewer repairs required after the flooding disaster in October 2024 to the full council agenda. Councilor Cavin seconded the motion. The motion passed with a 4-0 voice vote, with Councilor Heldenbrand being absent. 18. Consider recommending authorization for an expenditure in the amount of $476,980.17 which includes GRT for; Roswell Water Master Plan Project to Freese & Nichols Inc. Presented by James MacCornack. Consider recommending authorization for an expenditure in the amount of $476,980.17 which includes GRT to Freese & Nichols Inc for Roswell Water Master Plan Project. Project is planned to be funded with the American Rescue Plan Act Corona Virus Local Fiscal Recovery Fund in which current available balance is $622,692.45. Councilor Halvorson made a motion to consider recommending authorization for an expenditure in the amount of $476,980.17 which includes GRT to Freese & Nichols Inc for Roswell Water Master Plan Project on the consent agenda. Councilor Johnson seconded the motion. The motion passed with a 4-0 voice vote, with Councilor Heldenbrand being absent. 19. Consider recommending authorization to utilize Roswell Independent School District (SRO) monies up to $90,000.00 to purchase Real Time Crime Center cameras and equipment. It will be reimbursed from the State Homeland Security Grant Program (SHSGP) grant. Presented by Alberto Aldana. The amount of $90,000.00 will be used to purchase cameras and equipment for the Real Time Crime Center. The money will be reimbursed by the State Homeland Security Grant Program (SHSGP) grant. Councilor Cavin made a motion to Consider recommending authorization to utilize Roswell Independent School District (SRO) monies up to $90,000.00 to  purchase Real Time Crime Center cameras and equipment to the consent agenda. Councilor Halvorson seconded the motion. The motion passed with a 4-0 voice vote, with Councilor Heldenbrand being absent. 20. Resolution 24-XX: Disposal of Certain Surplus Personal Property- consider recommending adoption of Resolution 24-XX authorizing the Disposal of Certain Surplus Personal Property. Presented by Becky Hicks. This request covers old/obsolete equipment and vehicles currently owned by the City of Roswell. Ms. Hicks gave an overview on Items valued at less than $2,500 as a list of equipment that is no longer operational therefore ready to be scrapped and items valued at over $2,500 as a list of vehicles and equipment that have exceeded their useful life or have been totaled by insurance. If there are no bids on these items at the set minimum, the minimum may be re-evaluated and the items will be relisted until sold. If the item still does not receive bids, it will be recycled or disposed of in another acceptable manner. Councilor Johnson made a motion to consider recommending adoption of Resolution 24-XX authorizing the Disposal of Certain Surplus Personal Property to the consent agenda. Councilor Halvorson seconded the motion. The motion passed with a 4-0 voice vote, with Councilor Heldenbrand being absent. 21. Consider recommending authorization for an expenditure of $42,016.01 to RoofCare Services for library roof repairs from Capital Improvement Funds. Presented by Enid Costley. Consider recommending authorization for an expenditure of $42,016.01 to RoofCare Services for library roof repairs from Capital Improvement Funds as the Roswell Public Library has been plagued with water leaks over the years from the roof and ground level. This is not a budget expense for the Roswell Public Library. Ms. Costley attached an evaluation and Proposal from RoofCare Services. Chairman Corn and Councilor Halvorson stated the roof needs to be repaired. Councilor Johnson made a motion to consider recommending authorization for an expenditure of $42,016.01 to RoofCare Services for library roof repairs from Capital Improvement Funds to the consent agenda. Councilor Halvorson seconded the motion. The motion passed with a 4-0 voice vote, with Councilor Heldenbrand being absent. 22. Resolution 24-XX -consider recommending adoption of Resolution 24-XX for receiving fire recruitment funds from the DFA. Presented by Daniel Fuller. The fire department applied for funding through the State of New Mexico for the hiring of new firefighters. This grant was approved and in order to receive the funds a resolution stating acceptance of the money has to be drafted and turned into the DFA. Councilor Halvorson made a motion to consider recommending adoption of Resolution 24-XX for receiving fire recruitment funds from the DFA to the consent agenda. Councilor Cavin seconded the motion. The motion passed 4-0 voice vote, with Councilor Heldenbrand being absent. 23. Consider recommending approval of Award Recommendation for RFP 25-004 City of Roswell Comprehensive Master Plan and authorize the City Manager to enter into contract negotiations with Able City of El Paso, TX Presented by Jessica Vickers. Consider recommending approval of Award Recommendation for RFP 25-004 City of Roswell Comprehensive Master Plan and authorize the City Manager to enter into contract negotiations with Able City of El Paso, TX. Councilor Cavin and Councilor Johnson requested the amount of the award but Ms. Vickers could not disclose the total amount. Councilor Cavin stated he was concerned due to cost and Chairman Corn stated we have to keep in mind cost as we just went over 118 million of expenses for flood disaster therefore it would be well to know the total amount of RFP 25-004. Councilor Halvorson suggested we go into closed session to discuss financials of this RFP. Councilor Cavin made a motion to go into closed session. Councilor Johnson was second. A voice vote was unanimous, motion passed 4-0 with Councilor Heldenbrand being absent. FOR THE RECORD: Committee went into closed session at 4:13p.m. Councilor Cavin made a motion to come back into open session. Councilor Halvorson was the second. A voice vote was unanimous, motion passed 4-0 with Councilor Heldenbrand being absent. FOR THE RECORD: Committee went back into open session at 4:16p.m. Councilor Halvorson made a motion to Consider recommending approval of Award Recommendation for RFP 25-004 City of Roswell Comprehensive Master Plan and authorize the City Manager to enter into contract negotiations with Able City of El Paso, TX to the consent agenda. Councilor Johnson seconded the motion.  The motion passed with a 4-0 voice vote, with Councilor Heldenbrand being absent. 24. Consider recommending authorization of the 2025 Finance Committee Meeting schedule. Presented by Elizabeth Nulf. A calendar listing the 2025 Finance Committee Meeting schedule was attached. Councilor Johnson made a motion to consider recommending authorization of the 2025 Finance Committee Meeting schedule. Councilor Cavin seconded the motion. The motion passed with a 4-0 voice vote, with Councilor Heldenbrand being absent. NON-ACTION ITEMS 25. Finance Departmental Reports. Presented by Elizabeth Nulf  Gross Receipts Tax  Cannabis Excise Tax  Lodgers Tax Report  Convention Center Bed Fee 26. Departmental Report - Roswell Public Library Report submitted, no questions 27. Golf - Department Report. No report was submitted. 28. 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. 29. Public Affairs Report. Reports submitted as stands, no questions. 30. Visitor Center Report. Report submitted as stands, no questions. 31. Roswell Chaves-County Economic Development Corporation FY2025 Q1 Report. Presented by Kyle Bullock. 32. Roswell Hispano Chamber of Commerce FY2025 Q1 Report. Presented by Alfredo Garcia 33. MainStreet Roswell FY2025 Q1 Report. Presented by Barbara Gomez. PUBLIC PARTICIPATION No public participation ADJOURN The meeting adjourned at 5:14 p.m.