Portales City Council Minutes Meeting July 23, 2019

TABLE OF CONTENTS FOR COUNCIL MEETING HELD JULY 23, 2019:
(A) Minutes of Previous Meeting(s): 1. Regular Meeting held July 9, 2019. (B) Item(s) from Finance/Administration Committee & Finance Director.

1. Ratification of Finance Department’s Actions on Bills for June 2019.

2. Resolution #19-20-01, Governing Fixed Assets–Year Ending June 30, 2019.

3. Resolution #19-20-02, Final Budget Adjustments FY 2018-2019.

4. Resolution #19-20-03, Final (4th) Quarter Financial Report Year Ending June 30, 2019. (C) Public Hearing/Presentation of Final Budget for 107Th Fiscal Year 2019-2020: 1. Enter into Public Hearing for Final Budget FY 2019-2020. 2. Presentation of Final Budget. 3. Open floor for public comment and discussion. 4. Close public hearing. (D) Resolution #19-20-04, Budget Adoption/Requesting Action to Approve the Final Budget for FY 2019-2020. (E) Item(s) from Public Works Department & Committee: 1. Request for Outside Sewer Service for 501 Broadmoor Acres – Larry and Anna Brock, Owners. (F) Requesting Approval of Joint Powers Agreement (JPA) between Portales Municipal Schools and the Portales Police Department for the School Resource Officer Program. (G) Council Appointment to Eastern New Mexico Water Utility Authority (ENMWUA) Board of Directors (H) Notice of Intent to Adopt Ordinance No. 741, An Ordinance Relating to Collective Bargaining for the City of Portales Providing Rights, Responsibilities and Procedures. (I) Executive Session/Closed Meeting Section 10-15-1 H.(7), 1995, for Attorney-Client Privilege Pertaining to Threatened or Pending Litigation; and Section 10-15-1 H.(8), 1995, Related to the Purchase, Acquisition, or Disposal of Real Property or Water Rights: 1. Action to Convene in a Closed Meeting. 2. Action to Convene in Open Meeting. 3. Action Required as a Result of the Closed Meeting. (J) Other Business/Citizens to be Heard. THE CITY COUNCIL OF THE CITY OF PORTALES met in regular session Tuesday, July 23, 2019, at 6:30 p.m., in the Council Chambers of the Memorial Building, 200 E. 7th Street, Portales, NM in full conformity with the rules and regulations. Mayor Pro-Tem Miller called the meeting to order in the absence of Mayor Jackson and asked City Clerk Martinez-Terry to call roll. Those present and constituting a quorum were:
MAYOR: Ronald L. Jackson (absent)

MAYOR PRO-TEM: Michael G. Miller

COUNCIL MEMBERS: Veronica A. Cordova Dianne Y. Parker (absent) Chadrick H. Heflin Oscar H. Robinson Jake J. Lopez Jessica J. Smith Michael James “Jim” Lucero

STAFF PRESENT: Sammy Standefer, City Manager Steve Doerr, City Attorney Joan Martinez-Terry, City Clerk John DeSha, Public Works Dir. Veda Urioste, Deputy City Clerk Pat Gallegos, Police Chief Susan Baysinger, PW Cap. Proj. Adm. Dennis Hales, I.T. Director OTHERS PRESENT: David Greider, Press Bill Hendrickson, RCCDC Exec. Dir.

Mayor Pro-Tem Miller asked Councilor Cordova to give the invocation and Councilor Heflin led the Pledge of Allegiance and the Salute to the New Mexico flag.

Minutes of July 23, 2019

(A) MINUTES OF PREVIOUS MEETING(S): 1. Regular Meeting held July 9, 2019.
Mayor Pro-Tem Miller asked the Council to consider the minutes of the Regular Meeting of July 9, 2019. He asked for comments or corrections. Mayor Pro-Tem Miller asked the pleasure of the Council. Councilor Lucero made the motion to approve the minutes of the regular meeting of July 9, 2019 as presented. Councilor Robinson seconded the motion. All Council members present voted in favor of the motion. No abstentions. Motion carried.

(B) ITEM(S) FROM FINANCE/ADMINISTRATION COMMITTEE & FINANCE DIRECTOR: 1. Ratification of Finance Department’s Actions on Bills for June 2019.
Mayor Pro-Tem Miller asked Finance Director Marilyn Rapp to present the bills for June 2019. Finance Director Rapp told the Council that she came before them to ask for ratification of the bills for the month of June 2019. She told the Council that the amount of the bills was $1,387,405.45. She stated that they were within budgeted limits and that there was nothing exciting in the bills. She asked for questions from the Council, and ratification of the bills if there were no questions.
June 2019 Pooled Cash Fund 999 1,387,405.45
Mayor Pro-Tem Miller asked the pleasure of the Council. Councilor Heflin made the motion to approve the bills for June 2019 as presented. Councilor Smith seconded the motion. All Council members present voted in favor of the motion. No abstentions. Motion carried. 2. Resolution #19-20-01, Governing Fixed Assets – Year Ending June 30, 2019.
Mayor Pro-Tem Miller asked Finance Director Marilyn Rapp to present Resolution #19-20-01, Governing Fixed assets. Ms. Rapp handed out a summary sheet to the Council and told them that the state requires that the Council see and approve the listing of assets. She told the Council that the resolution sets the statutory capitalization limit of asset items costing $5,000 or more acquired since June 17, 2005 be placed on the City’s inventory list. She told them Accounts Payable Clerk Ashley Gibson sends out inventory reports to each department and then goes out and checks assets. She asked that the Council adopt Resolution #1920-01. Mayor Pro-Tem Miller asked the pleasure of the Council. Councilor Robinson made the motion to adopt Resolution #19 – 20 – 01, a r esolution governing fixed assets. Councilor Cordova seconded the motion. Roll call vote by all Council members present resulted in unanimous support of the motion. No abstentions. Motion carried.

3. Resolution #19-20-02, Final Budget Adjustments FY 2018-2019.
Mayor Pro-Tem Miller asked Finance Director Marilyn Rapp to present the budget adjustments for FY 20182019. Ms. Rapp told the Council that these budget adjustments are for cleaning up the budget at the end of the year. She reported that she had adjusted the budget as follows:
• $144,000 was decreased in the Street Department budget ($44,000 for the Boston & Lime project and $100,000 for a reserve for matching funds for potential street grants; • PAT budget reduced by $60,356 for a van that was not purchased in this fiscal year; • DWI adjustments were for a cleanup within the fund; • Increase of the Transfer-in to Airport Fund matching funds for FAA improvement project; • Transferred $266,000 into the Building Fund for remodeling purposes;
Minutes of July 23, 2019
• Water/Wastewater Fund adjustments were for wage increases due to pay plan adjustments for wage compression created by minimum wage increases in the state. These adjustments are balanced within the fund; • Budget for the YAM Convention Center was adjusted for revenues since the City took over management of the building and for the expenditure for sprinkler repair; • Revenues in Fund 551 was increased by $2,450 and investment expense was increased by $15.00; • Revenues in Fund 552 were increased by $3,830 and investment expense was increased by $200; • Risk management adjustments were for a cleanup within the fund. • Revenues in the Criminal Justice Fund increased by $861 and an increase in expenditures by $861. Ms. Rapp told the Council that net changes to the budget resulted in an increase of $460,000 to fund balances overall. She asked for questions from the Council and approval of the budget adjustments. Mayor Pro-Tem Miller asked the pleasure of the Council. Councilor Lucero made the motion to adopt Resolut ion #19 – 20 – 02, Final Budget Adjustments for FY 2018 – 2019. Councilor Smith seconded the motion. Roll call vote by all Council members present resulted in unanimous support of the motion. No abstentions. Motion carried.
4. Resolution #19-20-03, Final (4th) Quarter Financial Report Year Ending June 30, 2019. Mayor Pro-Tem Miller asked Finance Director Marilyn Rapp to present the resolution approving the final quarter financial report for June 30, 2019. Marilyn Rapp told the Council that the state requires the council see and approve the financial report. She told the Council that the City had ended the year with $466,000 more revenues than anticipated and that the funds were being put into capital. Mayor Pro-Tem Miller asked the pleasure of the Council. Councilor Heflin made the motion to adopt Resolution #19 – 20 – 03, Final (4 th ) Quarter Financial Report for year ending June 30, 2019. Councilor Smith seconded the motion. Roll call vote by all Council members present resulted in unanimous support of the mo tion. No abstentions. Motion carried.

(C) PUBLIC HEARING/PRESENTATION OF FINAL BUDGET FOR 107TH FISCAL YEAR 20192020: 1. Enter into Public hearing for Final Budget FY 2019-2020.
Mayor Pro-Tem Miller asked for a motion to enter into Public Hearing to hear the final budget for the 107Th Fiscal Year 2019-2020. Mayor Pro-Tem Miller asked the pleasure of the Council. Councilor Robinson made the motion to enter into public hearing. Councilor Cordova seconded the motion.
All Council members present voted in favor of the motion. No abstentions. Motion carried.
2. Presentation of Final Budget. Mayor Pro-Tem Miller asked City Manager Standefer to present the final budget. City Manager Standefer told the Council that he would be talking about the changes to the interim budget. He commented that the final budget turned out better than the interim budget–that the General Fund ended the year $429,000.00 higher than projected estimates. He stated that additional GRT was estimated due to the tax on internet sales. He commented that Transfers-in are the same as in the interim budget, but Transfers-out include $30,000 to Corrections Fund; $30,000 to Library; $129,647 to PAT; $215,024 to Airport; $18,250 to Unemployment Compensation Fund and $273,000 to the Economic Development Fund. He stated that the transfer to Economic Development Fund is a new one required by the state–LEDA funds have to go to the General Fund and then be moved to the LEDA Fund. He commented that increases in the General fund include the increase to PERA for $42,000.00 due to the change to the City’s participation from 9.55% to 9.8%; building insurance increased by $34,500; two (2) previously frozen police officer positions were reactivated and the Deputy Chief position was re-categorized; General Services Department Head and Library Administrator’s salaries were increased.. He commented that reserves were drawn down by $1.4
Minutes of July 23, 2019
million dollars. He added that it may be time to start looking at increasing taxes and fees for services and/or expenditures must be decreased through a reduction in services. He told the Council that the budget shows a set aside of $100,000 of matching money for the new fiscal year for projects (street projects) to be held in reserve. He reported that $44,000 was budgeted for the Boston Street project with Roosevelt County through an agreement between the City and County. He told the council that a small SUV is budgeted for the Recreation Fund (217) in the amount of $23,000 from cigarette tax funds previously collected. He reported that $10,000 is budgeted for the Incode server replacement that handles the City’s financial program. Mr. Standefer told the Council that $266,000 was transferred to the Building Fund to support a partial remodel of City Hall and other buildings.
Mr. Standefer reported that there are no major changes to the Solid Waste Fund. He commented that beginning cash and investments were greater than in the interim budget. He added that the budget reflects getting a new garbage truck.
Mr. Standefer told the Council that the Water/Wastewater Fund will have a lot of activity due to increased work coming from those two departments. Beginning cash and investment income are greater than projected in the interim budget. He stated that budgeted revenues were decreased by $1,939,607 due to a spreadsheet error caused by Water Trust Board grant revenue being added twice in the interim budget— actual amount awarded was $2,008,607. The budget does reflect getting into the fund’s reserves, but the reserves are going into capital projects. He listed the capital projects as including $7770 for well/pipe maintenance and test hole project; $200,000 for mandated O&M plan, risk assessment, emergency response plan, and OSE compliance; $2,755,158 for Johnson Hill West tank rehab project and legislative grant for water conveyance ($2,231,785 is the grant amount); $330, for the Johnson East Tank pledged match; $260,000 waste water NMED required monitoring wells; and $35,000 for a pumping system for blending the BNR at the Wastewater Treatment Plant. Councilor Lucero asked if using reserves could have been avoided if we hadn’t had the error on the spreadsheet. Mr. Standefer stated that it would have happened anyway due to there being a lot of work required for the water system and the well field.
Mr. Standefer reported that the budget for the remaining funds included matching funds for the Airport Fund for a $3,000,000 runway project; revenues and expenditures for operating the Yam Convention Center; the Ute Water membership and SCADA & AMR projects in the Water Conservation and Water Reserve Funds; required funds for the wastewater plant loan Reserves; Unemployment Compensation Fund and the Economic Development tax funds transferred from the General Fund. City Manager Standefer ended the presentation by asking for questions.
3. Open Floor for Public Comment and Discussion.
Mayor Pro-Tem Miller asked for comments and discussion from the public. There were no comments from the public.
4. Close Public Hearing
Mayor Pro-Tem Miller asked for a motion from the Council to close the public hearing. Mayor Pro-Tem Miller asked the pleasure of the Council. Councilor Lopez made the motion to close the public hearing. Councilor Smith seconded the motion. All Council members present vot ed in favor of the motion. No abstentions. Motion carried.

(D) RESOLUTION #19-20-04, BUDGET ADOPTION/REQUESTING ACTION TO APPROVE THE FINAL BUDGET FOR FY 2019-2020
Mayor Pro-Tem Miller asked for action to adopt Resolution #19-20-04, a resolution adopting the final budget for FY 2019-2020. Mayor Pro-Tem Miller asked the pleasure of the Council. Councilor Heflin made the
Minutes of July 23, 2019
motion to adopt Resolution #19 – 20 – 04, adopting the budget for FY 2019 – 2020. Councilor Lopez seconded the motion. Roll call vote by all Council members present resulted in unanimous support of the motion. No abstentions. Motion carried.

(E) ITEM(S) FROM PUBLIC WORKS DEPARTMENT AND COMMITTEE:
1. Request for Outside Sewer Service for 501 Broadmoor Acres – Larry and Anna Brock.
Mayor Pro-Tem Miller asked Public Works Director John DeSha to present the request for outside sewer service for 501 Broadmoor Acres submitted by Larry and Anna Brock. Mr. DeSha told the Council that the request is a follow up to the first request for service by the Brocks that was denied. He reported that they had come back with a letter requesting reconsideration of the denial. He stated that he had talked to the attorneys about attaching a contract to the deed on this type of request. He reported that the Public Works Committee had met, heard the request and recommended approval with conditions. Councilors Heflin and Lucero expressed confidence that the Brocks would pay their sewer account. Councilor Cordova said she agreed, but that staff should come up with a policy for the Public Works Committee to handle request for outside utility users. Councilor Lucero asked about cutting off their service and Mr. DeSha stated that this is possible with a 30 day notice. Mayor Pro-Tem Miller asked the pleasure of the Council. Councilor Lucero made the motion to approve the request for outside sewer service for 501 Broadmoor Aces for Larry and Anna Brock with the conditions placed on them by the Public Works Committee. Councilor Robinson seconded the motion.
All Council members present voted in favor of the motion. No abstentions. Motion carried.

(F) REQUESTNG APPROVAL OF JOINT POWERS AGREEMENT (JPA) BETWEEN PORTALES MUNICIPAL SCHOOLS AND THE PORTALES POLICE DEPARTMENT FOR THE SCHOOL RESOURCE OFFICER PROGRAM
Mayor Pro-Tem Miller asked Police Chief Gallegos to present the Joint Powers Agreement (JPA) between the City and the Portales Municipal School District for the School Resource Officer (SRO). Chief Gallegos told the Council that the SRO agreement is basically the same as the previous one. Councilor Cordova asked if the Department rotated the SRO. Chief Gallegos responded that rotation is not feasible because the Department has such a new group of officers. He asked for Council approval. Mayor Pro-Tem Miller asked the pleasure of the Council. Councilor Robinson made the motion to approve the JPA with the Portales Municipal School District as presented. Councilor Cordova seconded the motion.
All Council members present voted in favor of the mot ion. No abstentions. Motion carried.

(G) COUNCIL APPOINTMENT TO EASTERN NEW MEXICO WATER UTILITY AUTHORITY (ENMWUA) BOARD OF DIRECTORS
Mayor Pro-Tem Miller asked that the Council approve the recommendation by Mayor Jackson to appoint Councilor Lucero for another two-year term on the Board of the Eastern New Mexico Water Utility Authority (ENMWUA). Councilor Lopez asked Councilor Lucero if he wanted the appointment. Councilor Lucero declared that he did want the appointment. Councilor Robinson asked if the Mayor’s term was expired also. City Manager Standefer responded that the terms are staggered and that the Mayor’s term was not expired now. Mayor Pro-Tem Miller asked the pleasure of the Council. Councilor Robinson made the motion to approve th e Mayor’s recommendation to approve the appointment of Councilor Lucero to another term on the board of the ENMWUA. Councilor Smith seconded the motion.
All Council