Finance Committee

Regular Meeting of the Finance Committee City Hall – Large Conference Room 425 N. Richardson Ave. Thursday, March 6, 2025, 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 Heldenbrand, Councilor Johnson, and Councilor Cavin were present. STAFF PRESENT Chad Cole, Luis Najar, Mike Mathews, Lee Rogers, James MacCornack, Abraham Chaparro, Debbie Reyer, Andrew Valadez, Caroline Brooks, Jessica Parham, Elizabeth Prichard, Toni Gomez, Amalia Martinez, Melissa Garcia via GoToMeeting, Merissa Guilez via GoToMeeting, Enid Costley, Jim Burress, Bobbi Thompson via GoToMeeting, Derick Washichek, Steve Chavez, Naomi Steward, Ron Garcia, and Elizabeth Nulf. GUESTS PRESENT Rita Kane-Doerhoefer and Terry Harber APPROVAL OF AGENDA Councilor Cavin made a motion to amend the agenda to remove Item 17 and Item 18 due to a change in proposed cost total from a different vendor. Councilor Heldenbrand seconded the motion. For The Record: Councilor Halvorson left the meeting at 2:16 pm. The motion passed with a 4-0 voice vote with Councilor Halvorson being absent. Councilor Cavin made a motion to approve amended agenda as presented. Councilor Johnson seconded the motion. The motion passed with a 4-0 voice vote with Councilor Halvorson being absent APPROVAL OF MINUTES 1. Consider approval of the February 6, 2025, Regular Finance Committee Meeting Minutes.  Councilor Heldenbrand made a motion to approve the regular meeting minutes from February 6, 2025 meeting. Councilor Cavin seconded the motion. The motion passed with a 4-0 voice vote with Councilor Halvorson being absent. BUDGET PLANNING For The Record: Councilor Halvorson joined the meeting at 2:33 pm. 2. Payroll Summary. Report submitted by Elizabeth Nulf. Ms. Nulf gave an overview on the payroll totals including the detail of the actual payroll cost versus the budgeted totals for the 8 months ended February 28, 2025. The report reflected an overall favorable variance for the eight months ended February 28, 2025, and a favorable outcome for the year-to-date budget totals with 64% of the budget used and 36% of the budget remaining to be used. Councilor Heldenbrand made note to the Police Department reflecting as over budget at the 8-month period ended February 28, 2025, and expressed concern on the Police Department’s ability to meet the total payroll cost at end of fiscal year. Mr. Cole, City Manager stated the Police Department would meet the total payroll cost for FY2025 and also noted the overtime incurred by the department was the driving factor for the increase in the Police Department’s payroll total cost for the eight months. 3. Total Expenses. Report submitted by Toni Gomez. Ms. Gomez gave an overview on the reports included in the agenda, stating the expenses were the total expenses paid for the month of February 2025. Ms. Gomez was open for questions. There were not any questions. 4. Review Lodger's Tax Income and Expenses. Presented by Toni Gomez. Ms. Gomez presented on the report included in the agenda detailing a review of the Lodger’s Tax revenue and expenses. Ms. Gomez gave an overview of the revenue and expenditures including payroll total of $139,740.31, operating expenses total of $314,925.63, and revenue total of $1,156,359.93. Ms. Gomez also noted the transfers discussed at the February 6, 2025, Finance Committee meeting were transferred to the Roswell Zoo and Convention Center. Councilor Heldenbrand verified the ending cash balance on the report for the Roswell Zoo and Convention center with Ms. Gomez as $1.4 million on February 27, 2025. 5. Future Budget Planning. Presented by Toni Gomez. Mr. Cole, City Manager gave an overview of the status for budget process for FY2025, stating the first six-month financial reports  were provided to the Finance Committee at meeting on February 6, 2025; and the next budget team meeting will be scheduled for April 2, 2025, with a plan to update the Finance Committee at meeting on April 3, 2025. Mr. Cole, City Manager noted the Finance Department is waiting on a few items to review such as insurance reimbursements for damages incurred from the flood disaster and information pertaining to any increases in insurance expense which will need to be reflected in the budget for FY2026. Chairman Corn had a question to Mr. Cole, City Manager in regard to meetings with the department directors concerning the FY26 budget; Mr. Cole, City Manager stated the discussions were limited at this time, but noted the new software Clear Gov will allow the department directors to submit a draft budget electronically to the budget committee for projection calculations. Ms. Gomez gave an overview on the report included in the agenda which included the budget for FY24-25, as well as including the budget adjustments for revenue and expenditures. Ms. Gomez also noted a new fund within the budget was created for Firefighter Recruitment. Councilor Heldenbrand gave an overview noting the expenditures have been recorded creating a bleak outlook in regards to the cash on hand but once reimbursements for the damages due to the flood disaster are received the City of Roswell will have operated within the budget for FY25, despite the flood disaster. Chairman Corn and Chad Cole, City Manager made note of the current proposals in the New Mexico Legislation to provide assistance for the damages incurred in the flood disaster, noting interest free loans. Councilor Cavin asked the status regarding the ARPA funds as the deadline to encumber was December 31, 2024 and Ms. Nulf stated all the ARPA funds have been encumbered meeting the deadline, Toni Gomez concurred, stating the total on the report will remain until end of FY25. Chairman Corn and Chad Cole, City Manager emphasized for the departments to take a conservative approach when preparing their budgets, prioritizing the projects. 6. Following Ordinance 24-07 the Solid Waste Department has reviewed all costs and rates and is reporting on their financial status. Presented by Abraham Chapparo. Mr. Chapparo gave an overview on the report included in the agenda which included a budget analysis for Solid Waste and Landfill Department for Quarter 1, ended September 30, 2024 and Quarter 2, ended December 31, 2024. Mr. Chapparo stated each January, the Solid Waste Director reviews all of the costs to report proposed rate adjustments to ensure that each class of customer is carrying its share of costs, debt service, and reserves to the Finance Committee at their March or April meeting. Mr. Chapparo provided rate recommendations with noting the Solid Waste Department recommends a 3% increase to the Solid Waste Rates and explaining this would increase residential to $25.09; and, would increase commercial to $59.18 for 300 gallons and $104.65 for 3-yard metal. Mr. Chapparo gave an overview on the revenue and expenditures for the six-month period from July 1, 2024 to December 31, 2024. Mr. Chapparo stated the actual revenue for the six months ended December 31, 2024 is $4,799,126 and actual expenses for the six months  ended December 31, 2024 is $3,538.009. Councilor Heldenbrand gave an overview on the financial report included in the agenda, stating the Solid Waste and Landfill Department operated efficiently and would have reflected a favorable variance at the end of the six months ended December 31, 2024, but due to flood disaster the department incurred flood remediation costs in the amount of $738,401 in FY25. Councilor Heldenbrand stated Solid Waste and Landfill Department should be reimbursed about $680,000 for the flood disaster damage expenses, with this information the department’s revenue will have exceeded the expenses so the department is doing a great job operating favorably within the FY25 budget. Chairman Corn, Councilor Heldenbrand, Councilor Cavin, Councilor Johnson and Councilor Johnson had discussions in reference to CPI and the Ordinance in line with the current CPI. FLOOD DISASTER UPDATE 7. Flood Disaster Purchase Order List. Presented by Toni Gomez. Ms. Gomez provided a report with a total of $7,788,199.07 for expenses, and purchase orders for required expenses due to flood disaster in October 2024. Ms. Gomez made note of the pending PO for the ladder truck, which is also listed as an action item on the March 6, 2025 agenda. Chairman Corn asked if these purchase order totals were included in the financial report through February 28,2025, provided earlier in the agenda, Ms. Gomez replied the purchase order total is included in the financial reports for the eight months, July 1, 2024 to February 31, 2025. Chairman Corn again requested an update on the FEMA reimbursement process. Chad Cole, City Manager stated the process is moving along well with the third-party consultants and Lee Rogers working diligently to meet all the FEMA process requirements for the reimbursement process. Councilor Johnson wanted to know if any of the purchase orders were modified in total from the initial creation date of the purchase order, Ms. Gomez stated the purchase orders for the Water and Wastewater were adjusted as a minimal amount was added when PO was created and at a later adjusted to reflect the actual invoice cost. 8. Building Infrastructure and Property – Flood Disaster Update. Presented by Lee Rogers. Mr. Rogers gave an update making note FEMA granted an extension to April 10, 2025, to the City of Roswell to submit the damage inventory report. Mr. Rogers also stated, the City has completed a side inspection report with FEMA for Parks, and IT, which included the IT building on 4th Street. The side inspection report was 42 pages and was submitted to the FEMA back office for assessment of each line item and once this process is completed by FEMA, the focus will be on the permanent repairs process. Mr. Rogers noted final insurance proceeds from the City’s flood insurance coverage have been received which total to 3.7 million; and, are reflected in the budget  adjustment report provided earlier in the meeting by the Finance Department. Mr. Rogers stated the insurance proceeds will be used for future City projects, due to the guidelines for the FEMA reimbursement process. Mr. Rogers and DRS Consultants have implemented strategic methods to secure accuracy in the allocation and use of the insurance proceeds aligning with all the FEMA requirements for the reimbursement process. Councilor Halvorson asked if any additional damages have been added to the damage inventory report. Mr. Rogers replied all the departments are working together to assure an accurate and precise damage inventory report to FEMA. 9. Road and Bridge Infrastructure – Flood Disaster Update. Presented by Luis Najar. Mr. Najar gave an update stating the guard rail was replaced at the bridge on 8th Street and debris removal at bridges is in process to completion. Mr. Najar also stated the micro surfacing for roads was near complete and once the weather especially the wind dies down the micro surfacing road work would resume to completion. Mr. Najar also noted he spoke with Abraham in regards to the debris removal at the Sanctuary Pedestrian Bridge. Mr. Najar stated in regards to current cash flow status, he noted the first request for disbursement from loan proceeds in the amount of $910,000, was submitted. Mr. Najar further stated Wastewater Department would soon receive the $910,000 in loan proceeds to resume with the City of Roswell sewer line repairs. Mr. Najar also noted once the City of Roswell received reimbursement from FEMA for the sewer line damages the loan would be paid in full, but any chance FEMA did not reimburse for the damages the loan would be forgiven. Mr. Najar also stated a disbursement request would be submitted for the remaining $1,040,000, once progress on the initial work advanced. 10. Debris Removal Update due to Flood Disaster. Presented by Abraham Chaparro. Mr. Chaparro gave an update on the debris removal and discussed utilizing the secondary site at landfill. Mr. Chaparro also stated regular internal meetings with department heads and DRS consultants continue on a weekly basis. Mr. Chaparro stated all the departments continue to work together creating successful progress in the process. Chairman Corn did have a question about the rocks in the Spring River installed by the Prisoners of War having to be reclaimed, Mr. Cole, City Manager stated some of the rocks have to be preserved and discussed the area of the rocks that will be preserved. Mr. Chaparro also stated only the rocks installed by the Prisoners of War determined as historical would be collected, cleaned, and preserved in the Spring River POW Historic area. Councilor Heldenbrand had a question on the determination of ownership of the Spring River waterway and any determinations of payment for the rebuild. Councilor Cavin indicated concern in regards to who will predominately incur the cost of the Spring River waterway clean up and re- build.  11. Review Water and Waste Water FY25 budget, future budget planning, and flood disaster update. Presented by Andrew Valadez. Mr. Valadez gave an update stating the Lea Street Bridge repairs will be complete next week. Mr. Valadez gave an overview on the progress for repairs involving 8th Street Bridge. Mr. Valadez stated he was available for anyone with questions. Not any questions presented at this time. Action Items 12. Consider recommending adoption of Resolution 25-XX approving budget adjustments for the fiscal year ending June 30, 2025. Presented by Toni Gomez. Ms. Gomez requested to consider recommending adoption of Resolution 25-XX approving budget adjustment in the amount of $3,439,990.47, for the fiscal year ending June 30, 2025. Councilor Heldenbrand made a motion to consider recommending adoption of Resolution 25-XX approving budget adjustments in the amount of $3,439,990.47 for the fiscal year ending June 30, 2025 to the consent agenda. Councilor Halvorson seconded the motion. The motion passed with a 5-0 voice vote. 13. RFP-25-006: Consider Recommending Approval of Scope of Work for RFP-25- 006 Audit Services. Presented by Toni Gomez. Ms. Gomez requested to consider recommending approval of Scope of Work for RFP-25-006 Audit Services. The City of Roswell, New Mexico is seeking proposals from independent Certified Public Accounting Firms (CPAs) approved by the New Mexico State Auditor to conduct the annual audit of the City’s financial statements for the fiscal year July 1, 2024 through June 30, 2025. Councilor Johnson made a motion to consider recommending approval of Scope of Work for RFP-25-006 Audit Services seeking proposals from independent Certified Public Accounting Firms (CPAs) approved by the New Mexico State Auditor to conduct the annual audit of the City’s financial statements for the fiscal year July 1, 2024 through June 30, 2025 to the consent agenda. Councilor Cavin seconded the motion. The motion passed with a 5-0 voice vote. 14. Consider recommending authorization for change order to PO 22501332 for the following emergency Water & Wastewater Repairs due to flood disaster: Hondo  Draw Bypass (Hondo River Sewer Damage) in the amount of $462,259.59, 4th Street man-hole replacement in the amount of $65,323.31, Lea Street manhole replacement in the amount of $128,310.37, and Berrendo River Aerial sewer line repair in the amount of $6,967.69 totaling $662,861.05 to J & H Services, Inc. including GRT. Presented by Naomi Steward. Ms. Steward requested to consider recommending authorization for change order to PO 22501332 for the following emergency Water & Wastewater Repairs due to flood disaster: Hondo Draw Bypass (Hondo River Sewer Damage) in the amount of $462,259.59, 4th Street man-hole replacement in the amount of $65,323.31, Lea Street manhole replacement in the amount of $128,310.37, and Berrendo River Aerial sewer line repair in the amount of $6,967.69 totaling $662,861.05 to J & H Services, Inc. including GRT. Councilor Johnson made a motion to consider recommending authorization for change order to PO 22501332 for the following emergency Water & Wastewater Repairs due to flood disaster: Hondo Draw Bypass (Hondo River Sewer Damage) in the amount of $462,259.59, 4th Street man-hole replacement in the amount of $65,323.31, Lea Street manhole replacement in the amount of $128,310.37, and Berrendo River Aerial sewer line repair in the amount of $6,967.69 totaling $662,861.05 to J & H Services, Inc. including GRT to the consent agenda. Councilor Halvorson seconded the motion. The motion passed with a 5-0 voice vote. 15. Consider Recommendation of Resolution 25-XX for support of projects in response to the NMDOT’s January 2025 TPF Funding Call For Projects. Presented by James MacCornack. Mr. MacCornack requested to Consider Recommendation of Resolution 25-XX for support of projects in response to the NMDOT’s January 2025 TPF Funding Call For Projects. This is for project application support. Any awarded projects would have to be budget adjusted one formal award is received. 1. 2nd St. (US 380) Pavement Maint. - $1,520,000 (State $1,444,000, City Match $76,000) 2. S. Atkinson Mill & Fill Capital- $2,660,000 (State $2,527,000, City Match $133,000) Councilor Halvorson made a motion to consider recommendation of Resolution 25-XX for support of projects in response to the NMDOT’s January 2025 TPF Funding Call For Projects to the consent agenda. Councilor Heldenbrand seconded the motion. The motion passed with a 5-0 voice vote. 16. Consider recommending authorization for the approval of issuing a purchase order to Siddons Martin Emergency Group in the amount of $215,000.00 for a 2003 Ferrara 100' Ladder truck. Presented by Steve Chavez. Mr. Chavez requested to consider recommending authorization for the approval of issuing a purchase order to Siddons Martin Emergency Group in the amount of $215,000.00 for a 2003 Ferrara 100' Ladder truck. After the floods totaled our aerial platform, we were able to secure a used aerial ladder for rent. The initial payments were being made by NMSIF and as the payouts have come, it is now the responsibility of the City to take over rental payments. The charge is $395.00/ day. The new ladder truck is expected in 12-18 months. 12 - months rent= $144,175.00 18 - months rent = $216.262.50 We would like to purchase the truck and own it. This will allow us to keep it in our fleet as a reserve for years to come for the same price as paying the rent. Councilor Halvorson made a motion to consider recommending authorization for the approval of issuing a purchase order to Siddons Martin Emergency Group in the amount of $215,000.00 for a 2003 Ferrara 100' Ladder truck. Councilor Heldenbrand seconded the motion. The motion passed with a 5-0 voice vote. 19. Consider recommending authorization to approve waiving the replacement fees, valued at $1,440.92, for items borrowed and damaged or lost in the flood of October 19, 2024. Presented by Enid Costley. Ms. Costley requested to consider recommending authorization to approve waiving the replacement fees, valued at $1,440.92, for items borrowed and damaged or lost in the flood of October 19, 2024. Ms. Costley stated On October 19, 2024, the City of Roswell and Chaves County experienced a devastating flood that caused damage to many homes and property. Included in the damaged items were materials borrowed from the Roswell Public Library. Residents returned damaged materials or reported damaged materials between October 21, 2024 and January 31, 2025. Councilor Heldenbrand made a motion to consider recommending approval to approve waiving the replacement fees, valued at $1,440.92, for items borrowed and damaged or lost in the flood of October 19, 2024, to the consent agenda. Councilor Cavin seconded the motion. The motion passed with a 5-0 voice vote. 20. Consider recommending approval of Award of Professional Services for the Roswell Public Library Outdoor Play and Learn Area to Studio 27 in the amount of $38,843.93 which included GRT. Presented by Enid Costley. Ms. Costley requested to consider recommending approval of Award of Professional Services for the Roswell Public Library Outdoor Play and Learn Area to Studio 27 in the amount of $38,843.93 which included GRT. Funding Source - Miscellaneous expense: Donation library funding available $63,583.25. The City of Roswell issued a RFQ on January 30, 2025, from the on- call vendors for design services. The award of professional services for a complete set of engineer-designed plans for developing and constructing an outdoor early childhood play and learning area (3,182 square feet). The outdoor early childhood play area and learning area will be located in the northeast area of the library with an entrance through the children's area. The area will be fenced in and include an area for outdoor play and a gardening area. An outdoor program area would be ideal. The outdoor early childhood play area and learn area will include an integrated mixture of elements with a defining signature theme that identifies the facility as unique and one-of-a-kind. The city desires the outdoor early childhood play and learn area to be music-themed, consisting of singing, talking, reading, writing, and playing features. We would like this project completed by December 31, 2025. Councilor Heldenbrand made a motion to consider recommending approval of Award of Professional Services for the Roswell Public Library Outdoor Play and Learn Area to Studio 27 in the amount of $38,843.93 which included GRT to the consent agenda. Councilor Cavin seconded the motion. The motion passed 5-0 voice vote. NON-ACTION ITEMS 28. Finance Departmental Reports.  Gross Receipts Tax  Cannabis Excise Tax 29. Lodger’s Tax Report  Convention Center Bed Fee Report submitted as stands, no questions. 30. Roswell Public Library  Report submitted as stands, no questions. 31. Golf - Department Report. Report submitted, no questions 32. Museum Monthly Report Report submitted as stands, no questions. 33. Public Affairs Report. Reports submitted as stands, no questions. 34. Visitor Center Report. Report submitted as stands, no questions. PUBLIC PARTICIPATION ADJOURN The meeting adjourned at 5:13 p.m.