AGENDA

GALLUP CITY COUNCIL
REGULAR MEETING
TUESDAY, SEPTEMBER 24, 2019; 6:00 P.M.

CITY COUNCIL CHAMBERS

City Seal 1C_Turquoise

Jackie McKinney, Mayor

  Linda Garcia, Councilor, Dist. 1       Allan Landavazo, Councilor, Dist. 2
Yogash Kumar, Councilor, Dist. 3       Fran Palochak, Councilor, Dist. 4

Maryann Ustick, City Manager
Curtis Hayes, City Attorney




A.

Pledge of Allegiance

The members of the body and the public are invited to recite the Pledge of Allegiance.
B.

Roll Call

C.

Approval of Minutes

Regular Meeting of September 10, 2019
D.

Presentation of Proclamations

1.  Freemasonry Lebanon Lodge #22

2.  Fire Prevention Week, October 6-12, 2019
E.

Discussion/Action Topics

1.

Request for Street Closures for Hiroshi Miyamura High School Homecoming Parade to be Held on Friday, October 4, 2019

Miyamura High School (MHS) is requesting approval of the closure of Aztec Avenue from 8th Street to 1st Street for the 2019 MHS Homecoming Parade.  The proposed street closure is set in accordance with the standardized parade route approved by the City Council last year.  The parade is scheduled to begin at 3:00 p.m.
Fiscal Impact:
TBD - City staff to provide support services for the event.
Recommendation:
Miyamura High School recommends approval of the street closure.
Speaker's Name
Dr. Martina GrayBear, Miyamura High School
2.

Reappointment of Members to the Labor Management Relations Board

The current makeup of the Labor Management Relations Board consists of the following members:  Terry Proffitt representing management, Brenda Duran representing labor and Eric Begay serving on the recommendation of the first two appointees of the board.  The terms of the board members have expired and the members have all expressed interest to serve another one-year term.

Fiscal Impact:
None.
Recommendation:
Reappoint Terry Proffitt, Brenda Duran and Eric Begay to the Labor Management Relations Board.
Speaker's Name
Mayor Jackie McKinney
3.

Budget Adjustment for I-40/Rio Puerco 16-inch Water Line Replacement

A portion of the 16-inch water transmission line that connects the Gamerco Tanks to Grandview Tank between I-40 and Rt. 66 has recently experienced four breaks.  While examining the excavated line, it is clear that spot corrosion is taking place in multiple critical sections, which necessitates the replacement of this stretch of the line.  Over the past two years, the line has been replaced in its entirety from Rt. 66 to Grandview Tank via two separate projects.  A third project to replace this line from Chino Loop to the Gibson Pressure Reducing Valve Station has a completed design and is scheduled to go out to bid once the New Mexico Department of Transportation (NMDOT) issues a Right of Way (ROW) permit.

An Engineer's Opinion of Probable Construction Cost of $785,000 (Attachment 1) has been generated for the design, construction management and construction of this portion of the 16-inch line.  With a 10% contingency, funding in the amount of $863,500 would cover the project cost.

The Grandview Tank Project (Project No. CI1717) was completed $1,491,962 under budget and has not yet been closed out, thereby reverting these funds back into Fund 202.  If Council were to approve a budget transfer of $863,500 from Fund 202 using these remaining funds, approximately $628,462 would still revert back to Fund 202 balance.

Staff requests the addition of "I-40/Rio Puerco 16-inch Water Line Replacement" to the City's ICIP budget for this fiscal year.  Upon closeout of Project CI1717, Staff requests a budget adjustment/transfer in the amount of $863,500 to fund this project.

Recommendation:

Staff recommends (1) the addition of "I-40/Rio Puerco 16-inch Water Line Replacement" to the City's ICIP budget for this fiscal year; and (2) a budget adjustment/transfer in the amount of $863,500 to fund this project from Fund 202.

Fiscal Impact:
(1) Budget adjustment/transfer of $863,500 from Fund 202 for this project. (2) Reversion of $628,462 back into Fund 202, thereby increasing Fund 202's balance by this amount.
Recommendation:
See "Description" above.
Speaker's Name
Dennis Romero
4.

Resolution No. R2019-40; Water Trust Board Loan and Grant Application for Navajo Gallup Water Supply Project (NGWSP) Project 11 (Reach 27.11)

Funding will be needed for construction of Navajo Gallup Water Supply Project (NGWSP) Project 11 (Reach 27.11), which includes the installation of 12-inch and 14-inch waterlines from the terminus of Project 10 to Navajo Tribal Utility Authority (NTUA) Redrock Delivery Point, as well as the construction of a metering and backflow station.  The constructed 12-inch waterline will connect to Reaches 14.6, 14.7 and 14.8 in the future.  Council Resolution is required to submit funding application to New Mexico Water Trust Board for consideration.

Attachment 1 is the proposed resolution.  Attachment 2 is a map of the Gallup Regional Water System showing Project 11 to the south.

Fiscal Impact:  Requesting up to $3.0 million from Water Trust Board for NGWSP Project 11. Typical split on NGWSP funding from WTB is 60% ($1.80 million) grant and 40% ($1.20 million) loan. A budget adjustment is needed up to $3.0 million in expenditures in addition to annual loan payments of up to $61,588 after project completion (0.25% interest rate, amortized over a 20 year period).

Recommendation:  Staff recommends approval of Resolution No. R2019-40 to submit application to the NM Water Trust Board for Funding of Navajo Gallup Water Supply Project — Project 11 (Reach 27.11) and follow on budget adjustments, as described above, if the project is funded.

Fiscal Impact:
Please see above.
Recommendation:
Please see above.
Speaker's Name
Dennis Romero
5.

Acceptance of US Bureau of Reclamation Grant for Installation of Industrial, Commercial and Institutional (ICI) Water Meters

The City of Gallup has been awarded a $60,000 grant from the US Bureau of Reclamation for the selection, purchase and installation of Industrial, Commercial and Institutional (ICI) water meters with newer, more accurate Automatic Meter Reading (AMR) devices.

The Grant Application was approved by City Council during its August 14, 2018 Regular Meeting via formal resolution (Resolution R2018-23).  An amount of $40,000 was budgeted in FY19 as a proposed match from the City, with the understanding that a decision on grant awards would be made during this time frame.  However, no decision on grant awards was made until August 2019, therefore this funding reverted to fund balance.  The grant (R18AP00264-Upgrade of Municipal Meters - Attachment 1) allows for two years to complete the scope of work.

Staff requests a budget adjustment for the $60,000 of federal funding be made to show incoming revenue and expenditure of these funds.  As the grant allows for two years to complete work, the City can budget its matching funds for the upcoming budget cycle - FY21 or Council can approve a budget adjustment of $60,000 as matching funds for the current fiscal year.

Fiscal Impact:

Budget adjustment of $60,000 to show incoming revenue of $60,000 of federal funds and an expenditure of these funds.

Optional:  City Council can approve a budget adjustment for up to $60,000 from Fund 506 this FY to be designated as matching funds for this grant.

Recommendation:

Staff recommends (1) acceptance of grant; and (2) a budget adjustment of $60,000 to show incoming revenue from federal funds and a $60,000 expenditure of these funds.

Optional:  City Council, if it so desires, can approve a budget adjustment for up to $60,000 from Fund 506 to complete a majority of the work this fiscal year.
Fiscal Impact:
Please see above.
Recommendation:
Please see above.
Speaker's Name
Dennis Romero
6.

Budget Increase for the Legislative Appropriation to Conduct a Comprehensive Housing Analysis for the Greater Gallup Area.

Summary: Staff is requesting that the City Council approve a budget increase in revenue to conduct a comprehensive housing analysis for the greater Gallup area. The City of Gallup Planning & Development Department is coordinating with the New Mexico Department of Finance & Administration to complete the Grant (Appropriation Number ZD9023). 

Fiscal Impact:
Budget increase in revenue and expenditures to the 218 fund.
Recommendation:
Staff requests approval of a budget increase in revenue and expenditures to the 218 fund of 100,000
Speaker's Name
C.B. Strain- Planning & Development Director
7.

City Warehouse Inventory and Systems Review

The end of fiscal year inventory at the City’s Warehouse conducted by staff identified some discrepancies which may be due to the inventory system itself.  City Council has approved the purchase of a state of the art Bar Code System for the Warehouse which will ensure a more error proof inventory control system.  In addition, there has been a change in staffing and supervision at the Warehouse.   Consequently, staff recommends that, prior to proceeding with the purchase and installation of the Bar Code System,  the city contract with an independent third party to conduct a comprehensive inventory, records and systems review and analysis for the Warehouse.  Staff plans to have this Inventory review and system analysis conducted prior to the completion of the city’s annual audit.  Staff recommends that the city contract with Matrix Consulting Group to conduct this Warehouse Inventory and Systems Review.  The city has contracted with Matrix on several Internal Controls Review projects in the past which have led to improvements in procedures and processes which significantly reduce the potential for fraud and loss. 

Recommendation:  Approve Agreement with Matrix Consulting Group to conduct an Inventory and Systems Review of the City’s Warehouse and adjust budget in the amount of up to $17,500 in Risk Management Reserve Funds.
Fiscal Impact:
Up to $17,500 in Risk Management Reserve Funds. Fund 603-1016-414.45-40 Professional Services.
Recommendation:
See recommendation in the summary.
Speaker's Name
Maryann Ustick
F.

Comments by Public on Non-Agenda Items

The public is invited to comment on matters not appearing on the published meeting agenda.
G.

Comments by Mayor and City Councilors

H.

Comments by City Manager and City Attorney

I.

Motion to Adjourn

Auxiliary aides for the disabled are available upon request.  Please contact Alfred Abeita, City Clerk, at 505-863-1254 at least (1) week prior to the meeting or as soon as possible in advance of the meeting to make any necessary arrangements.

 Pursuant to the “Open Meetings Act”, NMSA 1978, Section 10-15-1 through 10-15-4 of the State of New Mexico, this Agenda was posted at a place freely accessible to the public 72 hours in advance of the scheduled meeting.