Legal Committee

Regular Meeting of the Legal Committee Held in the Bassett Auditorium at the Roswell Museum & Art Center November 10, 2016 Notice of this meeting was given to the public in compliance with Sections 10-15-1 through 10-15-4 NMSA 1978 and Resolution 16-69. ROLL CALL The meeting convened at 4:31 p.m. with Chairman Perry presiding; Councilors Oropesa and Foster being present and Councilor Best participating by telephone. Staff present: Sharon Coll, Aaron Holloman, Mike Mathews and Scott Stark. Guests present: Caleb Grant, David Mantay and Josh Hartwell. APPROVAL OF AGENDA Councilor Oropesa moved to approve the November 10, 2016 Legal Committee meeting agenda. Councilor Foster was the second. A voice vote was unanimous and the motion passed with Councilor Best participating by telephone. APPROVAL OF MINUTES Councilor Oropesa moved to approve the minutes from the September 22, 2016 regular Legal Committee meeting. Councilor Foster was the second. A voice vote was unanimous and the motion passed with Councilor Best participating by telephone. REGULAR ITEMS To recommend to full City Council that the following RIAC agreements to existing leases be placed on the Consent agenda for approval: 1. EAN Holdings, LLC, a Delaware Corporation, dba Enterprise Rent-A-Car – to extend the term of their current lease agreement on counter and office space in the Terminal Building and 10 parking slots on the east side of the Terminal Building. Mr. Stark discussed the request stating that the lease is amended to read “The Lease term commences June 1, 2012 and ends December 31, 2018.” Paragraph 31 of the Lease is renumbered to paragraph 32 and a new paragraph 31 is inserted to comply with the requirements of the U.S. Department of Transportation’s regulations concerning Airport Concession Disadvantaged Business Enterprise programs. Councilor Best moved to table EAN Holdings, LLC, a Delaware Corporation, dba Enterprise Rent-A-Car lease agreement term extension request. Councilor Foster was the second. A voice vote was 3-1 and the motion passed with Councilor Oropesa voting no and Councilor Best participating by telephone. 2. Scott Patterson – an individual, to renew his current lease agreement on “T” Hangar Building 120 Space 6. Mr. Stark discussed the lease agreement request. Scott Patterson leases the building for the purpose of aircraft storage and  maintenance. The building space is 1,002 square feet. New monthly rent amount is $175; $2,100 annually. Scott Patterson has been a customer since October 2015. Councilor Perry moved to approve and send on consent agenda Scott Patterson lease agreement renewal subject to all terms and conditions. Councilor Foster was the second. A voice vote was unanimous and the motion passed with Councilor Best participating by telephone. 3. David Stevens & Kurt J. Richardson – as individuals, to renew their current lease agreement on a portion of Building 91 Space C. Mr. Stark discussed the lease agreement request. David Stevens & Kurt J. Richardson lease the building for the purpose of aircraft storage and maintenance. The building space is 4,623 square feet. New monthly rent amount is $799; $9,588 annually. The individuals have been customers since November 1999. Councilor Perry moved to approve and send on consent agenda David Stevens & Kurt J. Richardson lease agreement renewal subject to all terms and conditions. Councilor Foster was the second. A voice vote was unanimous and the motion passed with Councilor Best participating by telephone. 4. Carlton Walker – an individual, to renew his current lease agreement on “T” Hangar Building 119 Space 1. Mr. Stark discussed the lease agreement request. Carlton Walker leases the building for the purpose of aircraft storage and maintenance. The building space is 1,175 square feet. New monthly rent amount is $177; $2,124 annually. Carlton Walker has been a customer since November 1988. Councilor Perry moved to approve and send on consent agenda Carlton Walker lease agreement renewal subject to all terms and conditions. Councilor Foster was the second. A voice vote was unanimous and the motion passed with Councilor Best participating by telephone. 5. Tom Wadsworth – an individual, to renew his current lease agreement on “T” Hangar Building 119, Spaces 2, 3 and 4. Mr. Stark discussed the lease agreement request. Tom Wadsworth leases the building for the purpose of aircraft storage and maintenance. The building space is 1,002, 1,175 and 1,002 square feet respectively. The new monthly rent amount is $175, $185 and $175 respectively; $2,100, $2,220 and $2,100 annually respectively. Tom Wadsworth has been a customer since November 1992. Councilor Perry moved to approve and send on consent agenda Tom Wadsworth lease agreement renewal subject to all terms and conditions. Councilor Foster was the second. A voice vote was unanimous and the motion passed with Councilor Best participating by telephone. 6. Kent Goodman – an individual, a new lease agreement on a portion of Building 1164. Mr. Stark discussed the lease agreement request. Kent Goodman requests to lease a portion of the building for the purpose of storage. The building space is 2,000 square feet. Monthly rent amount is $100; $1,200 annually. Kent Goodman was notified his lease agreement on Building 732 would expire under its own terms on September 30, 2016. The City leased the building to GenAir due to job creations. Councilor Foster moved to approve and send on consent agenda Kent Goodman new lease agreement. Councilor Oropesa was the second. A voice vote  was unanimous and the motion passed with Councilor Best participating by telephone. 7. Cellco Partnership, dba Verizon Wireless, a Delaware General Partnership – to amend their current lease agreement to allow for a term extension. Mr. Stark discussed the lease agreement request. Cellco Partnership leases a portion of land with space on the water tower for the operations and maintenance of a communications facility. Commencing as of November 1, 2017, the lease shall be automatically extended for one year additional extension term of five years expiring on October 31, 2022, with annual Rent Adjustments as outlined in the amendment. Councilor Foster moved to approve and send on consent agenda Cellco Partnership lease agreement request. Councilor Oropesa was the second. A voice vote was unanimous and the motion passed with Councilor Best participating by telephone. 8. Information Protection Services, Inc., a New Mexico Corporation – to amend their current lease agreement on Building 250 to allow for rent abatement in accordance with RIAC Rent Abatement Policy. Mr. Stark discussed the lease agreement amendment request stating that Information Protection Services, Inc. is requesting rent abatement in an amount not to exceed $6,428.50 for upgrading the office HVAC with a 3 ton 14 SEER high efficiency unit. Josh Hartwell with Information Protection Services, Inc. was present to discuss the upgrades needing to be done. Councilor Foster moved to approve and send on consent agenda Information Protection Services, Inc. rent abatement request. A voice vote was unanimous and the motion and the motion passed with Councilor Best participating by telephone. 9. Dean Baldwin Painting, LP, a Texas Corporation – to renew their current lease agreement on Building 1083. Mr. Stark discussed the lease agreement request. Dean Baldwin Painting, LP, leases the building for the purpose of stripping and painting aircraft. The building space is 167,356 square feet. New monthly rent amount is $20,493; $245,916 annually. The tenant agrees to pay landlord as “Additional Rent” the sum of $171,544.68 payable in 12 monthly payments of $14,295.39 each year for the term of the lease, as repayment of City funding participation of $1,715,446.79 for improvements completed by landlord. The tenant has been a customer since December 1998. Councilor Oropesa moved to approve and send on consent agenda Dean Baldwin Painting, LP lease agreement renewal with the amended language presented by the City Attorney. Councilor Best was the second. A voice vote was unanimous and the motion passed with Councilor Best participating by telephone. 10. Dean Baldwin Painting, LP, a Texas Corporation – to amend their current lease agreement on Building 1083 to allow for rent abatement in accordance with RIAC Rent Abatement Policy. Mr. Stark discussed the lease agreement request. Dean Baldwin Painting, LP, is requesting rent abatement in an amount not to exceed $35,417.81 for a new conference room build out, light assembly replacement, vinyl tile in offices previously built and a new wall installed by the walk way on the second floor. David Mantay with Dean Baldwin Painting discussed the projects  needing to be done. Councilor Foster moved to approve and send on consent agenda Dean Baldwin Painting, LP rent abatement in the amount of $25,458.16 for new conference room build out and $9,959.65 for light assembly replacement subject to all other terms and conditions. Councilor Oropesa was the second. A voice vote was unanimous and the motion passed with Councilor Best participating by telephone. 11. Western Emulsions, Inc., an Arizona Corporation – to amend their current lease agreement to allow assignment of their lease to Ergon Asphalt & Emulsions, Inc. Mr. Stark discussed the lease agreement request. Ergon Asphalt & Emulsions has agreed with Western Emulsions to purchase assets located at RIAC on property leased from the City of Roswell by Western Emulsions. Ergon and Western Emulsions are requesting approval of reassignment of the lease to Ergon. Councilor Foster moved to approve and send on consent agenda Wester Emulsions, Inc. to allow assignment of their lease to Ergon Asphalt & Emulsions, Inc. Councilor Best was the second. A voice vote was unanimous and the motion passed with Councilor Best participating by telephone. NON-ACTION ITEMS Discussion of potential policy/resolution waiving City liens on property to encourage development. The City imposes liens on a property when forced to take action to abate or remedy code violations or enforce its nuisance laws through condemnation. In many cases the liens outweigh the ultimate value of the property making development cost prohibitive. Waiving the liens, pursuant to stipulations requiring development within a certain timeframe, may help to alleviate the burdens. PUBLIC PARTICIPATION None ADJOURN Meeting adjourned at 5:36 p.m.