Legal Committee

Regular Meeting of the Legal Committee Held in the Roswell Convention & Civic Center Thursday, November 18, 2021 Notice of this meeting was given to the public in compliance with Section 10-15-1 through 10-15-4 NMSA and Resolution 21-07. ROLL CALL The meeting convened at 4:01 p.m. with Chair Stubbs presiding, Councilor Perry and Councilor Foster being present, Councilor Lopez being absent. Staff present: Scott Stark. Spencer Aiken, Kevin Maevers, Jenna Lanfor, Josh Nairn-Mahan, Parker Patterson, Jessica Collier, Christopher Stephen, and Juan Fuentes Guests: Larry Connolly Public Present: Rita Kane-Doerhoefer via GoToMeeting APPROVAL OF AGENDA Councilor Foster moved to approve the November 18, 2021, Legal Committee meeting agenda. Councilor Perry as a second. A voice vote was 3-0, and the motion passed, with Councilor Lopez being absent. APPROVAL OF MINUTES The November 4, 2021, Special Legal Committee minutes stand approved as written. REGULAR ITEMS 1. RAC Agreements A. AerSale, Inc. – Jenna Lanfor discussed the agreement. AerSale, Inc. requests Hangar No. 58 and related space consisting of 31,715 square feet. AerSale, Inc. has been a tenant since May 2010. The proposed term is January 1, 2022 through December 31, 2026. The Lease shall renew for five (5) additional one-year periods, unless either party provides thirty (30) days’ notice of non-renewal. Rent amount is Year 1: $76,433.15 yearly, $6,369.43 monthly. Year 2: $108,148.15 yearly, $9,012.35 monthly. Year 3-5: $139,863.12 yearly, $11,655.26 monthly. Councilor Foster moved to recommend approval to full City Council on the consent agenda with the following change: Adding paragraph C that reads, “Tenant agrees during renewal period each year rent will be adjusted by Consumer Price Index (“CPI”) or 3% whichever is greater.” Councilor Perry as the second. A voice vote was 3-0 and the motion passed, with Councilor Lopez being absent. B. Aersale, Inc. – Jenna Lanfor discussed the agreement. AerSale, Inc. requests Hangar No. 66 and related space consisting of 39,100 square feet, more or less. AerSale, Inc. has been a tenant since May 2010. The proposed term is January 1, 2022 through  December 31, 2026. This Lease shall renew for five (5) additional one-year periods, unless either party provides thirty (30) days’ notice of non-renewal. Rent Amount is Year 1: $94,231.00 yearly, $7,852.58 monthly. Year 2: $133,331.00 yearly, $11,110.92 monthly. Year 3-5: $172,431.00 yearly, $14,369.25 monthly. Councilor Perry moved to recommend approval to full City Council on the consent agenda with the following change: Adding paragraph C that reads, “Tenant agrees during renewal period each year rent will be adjusted by Consumer Price Index (“CPI”) or 3% whichever is greater.” Councilor Foster as the second. A voice vote was 3-0 and the motion passed, with Councilor Lopez being absent. C. GENAIR, NM, LLC – Jenna Lanfor discussed the agreement. GENAIR, NM, LLC requests Building No. 732 consisting of 2,860 square feet, and adjacent 15,000 square feet, more or less. GENAIR, NM, LLC has been a tenant since November 2016. The proposed term is January 1, 2022 through December 31, 2022. Rent amount is $895.46 monthly; $10,745.52 annually. Councilor Foster moved to recommend approval to full City Council on the consent agenda with Councilor Perry as the second. A voice vote was 3-0 and the motion passed, with Councilor Lopez being absent. D. Kent Goodman – Jenna Lanfor discussed the agreement. Kent Goodman requests Building No. 1164, consisting of 2,000 square feet, more or less. Kent Goodman has been a tenant since December 2017. The proposed term is January 1, 2022 through December 31, 2022 Rent amount is $117.72 monthly; $1,412.64 annually. Councilor Perry moved to recommend approval to full City Council on the consent agenda with Councilor Foster as the second. A voice vote was 3-0 and the motion passed, with Councilor Lopez being absent. E. Old Dog Brotherhood – Jenna Lanfor discussed the agreement. Old Dog Brotherhood requests Building No.734, consisting of 2,484 square feet, more or less. Old Dog Brotherhood has been a tenant since April 2011. The proposed term is January 1, 2022 through December 31, 2022 Rent amount is $277.70 monthly; $3,332.40 annually. Councilor Foster moved to recommend approval to full City Council on the consent agenda with Councilor Perry as the second. A voice vote was 3-0 and the motion passed, with Councilor Lopez being absent. F. Tom Wadsworth – Jenna Lanfor discussed the renewal agreement. Tom Wadsworth requests, “T” Hangar Building No. 119, space 3 and 4 consisting of 1,175 and 1,002 square feet respectively, more or less. Tom Wadsworth has been a tenant since December 2009. The proposed term is January 1, 2022 through December 31, 2022. Rent amount is $418.13 monthly; $5,017.56 annually. Councilor Perry moved to recommend approval to full City Council on the consent agenda with Councilor Foster as the second. A voice vote was 3-0 and the motion passed, with Councilor Lopez being absent. G. Carlton Walker – Jenna Lanfor discussed the renewal agreement. Carlton Walker requests, “T” Hangar Building No. 119, space 1 consisting of 1,175 square feet, more or less. Carlton Walker has been a tenant since November 1988. The proposed term is  January 1, 2022 through December 31, 2022. Rent amount is $215.48 monthly; $2,585.76 annually. Councilor Foster moved to recommend approval to full City Council on the consent agenda with Councilor Perry as the second. A voice vote was 3-0 and the motion passed, with Councilor Lopez being absent. 2. Summit Foods Service, LLC – Jenna Lanfor discussed airport security upgrades. Summit Food Service, LLC, is seeking to lease a portion of Building No. 1 at the Air Center, consisting of 1,685 square feet, more or less for one year, commencing December 1, 2021 and ending November 30, 2022. This Lease shall renew for seven (7) additional one-year periods unless either party provides sixty (60) days’ notice of non- renewal. Summit Food Service is a new tenant. Summit will use the premises solely for the purpose of Concessions, Beer/Wine & Micro-Market Operations and Vending solutions. Commissions in the sum of four percent (4%) of Net Sales each month of the Lease for the first year. Year two six percent (6%), year three eight percent (8%), and years four to seven ten percent (10%). Net Sales shall be defined as gross sales minus applicable sales tax. Councilor Foster moved to recommend to full City Council with recommendation for approval with Councilor Perry as the second. A voice vote was 3- 0 and the motion passed, with Councilor Lopez being absent. 3. Ordinance 21-XX Clean Air Act – Kevin Maevers discussed the Ordinance. Upon legislative approval of HB 2, the Cannabis Regulation Act, codified as NMSA 1978, § 26-2C-1 et seq., the New Mexico Legislature established a comprehensive regulatory framework for cannabis and cannabis-derived products under state law. The Act allows local jurisdictions to adopt time, place and manner rules, including rules that reasonably protect public health from the negative impacts of second-hand smoke. The Roswell City Council has previously determined that second-hand smoke from tobacco, or any other weeds or plants, including cannabis, is a health hazard to individuals present in enclosed spaces. Additionally, the City Council has determined that the right to breathe clean air free from health and environmental hazards, such as second-hand smoke, is a human right. With the introduction of Chapter 27 of the Roswell Municipal Code, proposed Ordinance 21-XX improves public health by adding additional protections against negative impacts associated with second-hand smoke, including second-hand smoke from cannabis and product derivatives. No action taken, no votes cast. Postponed to the next Legal Committee meeting. 4. NMFA Water Loan/Grant Agreement – Juan Fuentes discussed the agreement. This WTB “Water Trust Board” Project will be to continue replacement of old lines in the Edgewood area of Roswell. In 2019, Phase 1 was performed to construct new water line on N. Garden and also to stub out a 12” water line east on Cherry St. Phase 2 will continue construction of new 12” water main on Cherry St. from Garden St. east to Atkinson Ave. Cost is estimated at $1,152,630. The WTB offer is for $750,000: 40% loan in the amount of $300,000 and 60% grant in the amount of $450,000. Interest on the loan amount would be 0% and the Administrative Fee of .25%. The funding would come from Water Enterprise funds and reimbursement back to Water Enterprise funds. Net match would be $402,630. Councilor Perry moved to send to full City Council with recommendation to accept NMFA Water Loan/Grant Agreement Councilor Foster as the second. A voice vote was 3-0 and the motion passed, with Councilor Lopez being  absent. 5. Resolution 21-78 – Juan Fuentes discussed the Resolution. This WTB “Water Trust Board” Project will be to continue replacement of old lines in the Edgewood area of Roswell. In 2019, Phase 1 was performed to construct new water line on N. Garden and also to stub out a 12” water line east on Cherry St. Phase 2 will continue construction of new 12” water main on Cherry St. from Garden St. east to Atkinson Ave. Cost is estimated at $1,152,630. The WTB offer is for $750,000: 40% loan in the amount of $300,000 and 60%grant in the amount of $450,000. Interest on the loan amount would be 0% and the Administrative Fee of .25%. The funding would come from Water Enterprise funds, and reimbursement back to Water Enterprise funds. Net match would be $402,630. Councilor Foster moved to send to full City Council with the recommendation to approve Resolution 21-78 authorizing the execution and delivery of the NM Water Loan/Grant Agreement with Councilor Perry as the second. A voice vote was 3-0 and the motion passed, with Councilor Lopez being absent. 6. Meeting Time and Date for 2022 – Parker Patterson stated that the current regular meeting time is the fourth Thursday of each month at 4:00 PM. With the exception of November 17, 2022. No action taken – no votes cast. 7. Department Reports – City Clerk, Legal Department, Safety, and Human Resources. Discussion only, no action taken. CHAIR COMMENTS, REPORTS, ANNOUNCEMENTS None PUBLIC PARTICIPATION ADJOURN The meeting adjourned at 5:23 p.m.