TABLE OF CONTENTS FOR COUNCIL MEETING HELD OCTOBER 16, 2018:
(A) Minutes of Previous Meeting(s):
1. Regular Meeting held September 25, 2018.
(B) Presentation of 20-Year Service Award to Fire Department Battalion Chief Lance N. Hill.
(C) Resolution #18-19-17, A Resolution Authorizing the Execution and Delivery of a Water Project Fund Loan/Grant Agreement by and between the New Mexico Finance Authority (“Finance Authority”) and the City of Portales, New Mexico (The “Borrower/Grantee”), in the total Amount of $2,231,785, Evidencing an Obligation of the Borrower/Grantee to Utilize the Loan/Grant Amount Solely for the Purpose of Financing the Costs of Water Storage System Improvements, and solely in the Manner Described in the Loan/Grant Agreement; Providing for the Pledge and Payment of the Loan Amount and an Administrative Fee solely from Net System Revenues; Certifying that the Loan/Grant Amount, Together with other Funds available to the Borrower/Grantee, is Sufficient to Complete the Project; Approving the Form of and other Details Concerning the Loan/Grant Agreement; Ratifying Actions Heretofore Taken; Repealing all Action Inconsistent with this Resolution; and Authorizing the Taking of other Actions in Connection with the Execution and Delivery of the Loan/Grant Agreement.
(D) Item(s) from the Finance/Administration Committee:
1. Ratification of Finance Department’s Actions Regarding Bills for September 2018.
2. Resolution #18-19-18, First (1st) Quarter Budget Adjustments FY 2018-2019.
3. Recommendation by Finance/Administration Committee (FAC) on Membership Contribution to ENMWUA.
(E) City of Portales 2018 Water Conservation and Use Report.
(F) Report on Meeting with the New Mexico Congressional Delegation – Ute Water Pipeline.
(G) Other Business/Citizens to be Heard.
(H) Executive Session/Closed Meeting:
1. Action to Convene in a Closed Meeting for Attorney-Client Privilege Pertaining to Threatened or Pending Litigation.
2. Action to Convene in Open Meeting.
3. Action Required as a Result of the Closed Session.

THE CITY COUNCIL OF THE CITY OF PORTALES met in regular session Tuesday, October 16, 2018, 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 Jackson called the meeting to order and asked City Clerk Martinez-Terry to call roll. Those present and constituting a quorum were:

MAYOR: Ronald L. Jackson

MAYOR PRO-TEM: Michael G. Miller

COUNCIL MEMBERS: Veronica A. Cordova (absent) Dianne Y. Parker
Chadwick 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. Marilyn Rapp, Finance Director Gary Nuckols, Fire Chief
Chris Williams, Police Lt. Christine Mitchell, I.T. Tech.
Chris Mitchell, Police Ryan Fleming, Firefighter/EMT Lance Hill, Fire Battalion Chief Patti Heflin, FD Medical Billing Hunter Rolan, Firefighter/EMT Richard Hall, FD Firefighter/EMT Robert Diefenbaugh, Firefighter/EMT

OTHERS PRESENT: Bill Hendrickson, RCCDC Exec. David Essex, Xcel Energy
Alyssa & Tyler Hall Dakota Freeman
Chelsea Freeman Lisa Hall

Mayor Jackson asked Councilor Robinson to give the invocation and Mayor Jackson led the Pledge of Allegiance and the Salute to the New Mexico flag.

(A) MINUTES OF PREVIOUS MEETING(S):
1. Regular Meeting held September 25, 2018.

Mayor Jackson asked the Council to consider the minutes of the Regular Meeting of September 25, 2018.
He asked for comments or corrections. Mayor Jackson asked the pleasure of the Council. Councilor Heflin made the motion to approve the minutes of the regular meeting of September 25, 2018.
Councilor Lopez seconded the motion. All Council members present voted in favor of the motion. No abstentions. Motion carried.

(B) PRESENTATION OF 20-YEAR SERVICE AWARD TO FIRE DEPARTMENT BATTALION CHIEF LANCE N. HILL

Mayor Jackson asked Lance Hill, Fire Department Battalion Chief, to come forward to receive a 20-Year service award. Mayor Jackson read the Certificate of Appreciation to Battalion Chief Hill and presented him with a plaque and his 20-year service award pin. Lance Hill said a few words about growing up in the department and thanked Fire Chief Nuckols and especially thanked his family for supporting him in his career.

(C) RESOLUTION #18-19-17, A RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF A WATER PROJECT FUND LOAN/GRANT AGREEMENT BY AND BETWEEN THE NEW MEXICO FINANCE AUTHORITY (“FINANCE AUTHORITY”) AND THE CITY OF PORTALES, NEW MEXICO (THE “BORROWER/GRANTEE”), IN THE TOTAL AMOUNT OF
$2,231,785, EVIDENCING AN OBLIGATION OF THE BORROWER/GRANTEE TO UTILIZE THE LOAN/GRANT AMOUNT SOLELY FOR THE PURPOSE OF FINANCING THE COSTS OF WATER STORAGE SYSTEM IMPROVEMENTS, AND SOLELY IN THE MANNER DESCRIBED IN THE LOAN/GRANT AGREEMENT; PROVIDING FOR THE PLEDGE AND PAYMENT OF THE LOAN AMOUNT AND AN ADMINISTRATIVE FEE SOLELY FROM NET SYSTEM REVENUES; CERTIFYING THAT THE LOAN/GRANT AMOUNT, TOGETHER WITH OTHER FUNDS AVAILABLE TO THE BORROWER/GRANTEE, IS SUFFICIENT TO COMPLETE THE PROJECT; APPROVING THE FORM OF AND OTHER DETAILS CONCERNING THE LOAN/GRANT AGREEMENT; RATIFYING ACTIONS HERETOFORE TAKEN; REPEALING ALL ACTION INCONSISTENT WITH THIS RESOLUTION; AND AUTHORIZING THE TAKING OF OTHER ACTIONS IN CONNECTION WITH THE EXECUTION AND DELIVERY OF THE LOAN/GRANT AGREEMENT

Mayor Jackson announced the title of Resolution #18-19-17, A Resolution Authorizing the Execution and Delivery of a Water Project Fund Loan/Grant Agreement by and between the New Mexico Finance Authority (“Finance Authority”) and the city of Portales, New Mexico (The “Borrower/Grantee”), in the total Amount of
$2,231,785, Evidencing an Obligation of the Borrower/Grantee to Utilize the Loan/Grant Amount Solely for the Purpose of Financing the costs of Water Storage System Improvements, and Solely in the Manner Described in the Loan/Grant Agreement; Providing for the Pledge and Payment of the Loan Amount and an Administrative Fee Solely from Net System Revenues; Certifying that the Loan/Grant Amount, Together with other Funds available to the Borrower/Grantee, is Sufficient to Complete the Project; Approving the Form of and other Details Concerning the Loan/Grant Agreement; Ratifying Actions Heretofore Taken; Repealing all Action Inconsistent with this Resolution; and Authorizing the Taking of other Actions in Connection with the Execution and Delivery of the Loan/Grant Agreement.

Mayor Jackson asked Public Works Director John DeSha to introduce the resolution. Mr. DeSha told the Council that the resolution is a requirement for obtaining the loan/grant funds from the NM Finance Authority to make improvements to the water tanks at Johnson Hill. Mayor asked for clarification of SCADA. Mr. DeSha responded that this is our way of being able to automate the water supply system–so we can tie the wells together to be able to manage the wells. Councilor Lucero asked what type of chlorine is used at the tanks. Mr. DeSha responded that it is gas, which is more efficient. Mayor Jackson asked the pleasure of the Council. Councilor Parker made the motion to adopt Resolution # 18 -19-17, authorizing the execution of the loan/ grant agreement with the NM Finance Authority as presented. Councilor Lucero seconded the motion. Roll call vote by all Council members present resulted in
unanimous support of the motion. No abstentions. Motion carried.

(D) ITEM(S) FROM THE FINANCE/ADMINISTRATION COMMITTEE:

1. Ratification of Finance Department’s Actions Regarding Bills for September 2018.

Mayor Jackson asked Marilyn Rapp, Finance Director, to present the bills for September 2018. Ms. Rapp told the Council that the bills for the month of September were in the amount of $1,390,961.23. Ms. Rapp told the Council that she was before them to ask for ratification of the bills for September. She told the Council that the Finance/Administration Committee had met and recommended approval. Lucero asked about getting a quarterly report. Marilyn said that it will be submitted next week. She reported that GRT is higher than estimated in the budget. She commented that the expenses are in line with the budget.

August 2018
Pooled Cash Fund 999 1,390,961.23

Mayor Jackson asked the pleasure of the Council. Councilor Lucero made the motion to approve the bills for September 2018 as presented. Councilor Parker seconded the motion. All Council
members present voted in favor of the motion. No abstentions. Motion carried.

2. Resolution #18-19-18, First (1st) Quarter Budget Adjustments FY 2018-2019.

Mayor Jackson asked for Finance Director Marilyn Rapp to present the 1st quarter budget adjustments for FY 2018-2019. Ms. Rapp told the Council that the Finance/Administration Committee had reviewed the items on the list of budget adjustments. She commented that the process and report was changed from previous reporting due to changes in the NM Department of Finance Administration. She presented the budget adjustments that included the following:
• EMS Fund – Final grant was $233.00 less that estimated so reduced non-capital by the same to match;
• DWI Fund – DOT grant was not renewed; OSAP grant was adjusted and showed reversion of prior year distribution grant not spent for a total decrease in revenues of $17,138.00. Rapp commented that the reversion can be requested;
• P.A.T. Fund – New federal fiscal year amount loaded to the budget to show an increase of
$63,260.00—revenues and expenditures loaded with no net change to the fund;
• Building Capital Projects Fund – Estimated insurance recovery after lightning strike and transfer for water portion of tower repair showing an increase in revenues of $60,915.00 and a corresponding increase in expenditures;
• Water & Wastewater Fund – increased revenues for 6 months of the grazing lease and wind power lease in the amount of $27,612.00 and a corresponding increase in expenditures;

• Water Conservation Fund – Transfer out to Building Capital Projects Fund for Water portion of Tower repair.

Ms. Rapp told the Committee that the net total change to the budget was an increase of
$51,434.00. Mayor Pro-Tem Miller asked for questions from the Council. There were no questions. Mayor Jackson asked the pleasure of the Council. Mayor Pro-Tem Miller made the motion to adopt Resolution # 18 -19-18, adopting the Budget Adjustments for 2018-2019 . Councilor Heflin seconded the motion. Roll call vote by all Council members present resulted in support of the motion. No abstentions. Motion carried.

(Mayor Pro-Tem Miller suggested that Item F be moved before Item D.3—Mayor and Council agreed)

(F) REPORT ON MEETING WITH THE NEW MEXICO CONGRESSIONAL DELEGATION –
UTE WATER PIPELINE (Mayor Pro-Tem asked that this be moved before Item D.3)

Mayor Jackson told the Council that he had asked that the letter from the Congress of the United States be included in the packet. He commented that the letter from the Washington trip was signed by the New Mexico senators and representatives. He commented that representatives from the ENMWUA (Mayor Jackson, Councilor Lucero, Clovis Mayor Lansford and Orlando Ortega) who had met with groups from the other 4 pipeline projects. He commented that the groups had met with the representatives from those states adding that Senator Udall was the most informed of those who showed up at the meeting. He reported that the meetings with the other groups went well. He stated that the other groups had been in the process longer than our group. He stated that they had met with the delegates in their offices—had good representation from those people.
The Mayor talked about FW3 that will bring water to Portales. Councilor Lucero said that it was a productive trip. Mayor stated that there is 112 million dollars budgeted for this coming year and that probably the ones with Native American influences will get the bulk of the funds, but that this area will get some more funds. He said that going in as a coalition was a benefit to the issue. He commented that the Senators and Representatives worked well together and that the groups did a good job presenting the issues. City Manager Standefer asked when Congress will allocate the funds. Councilor Lucero said that allocation would be done next month.

3. Recommendation by Finance/Administration Committee (FAC) on Membership Contribution to ENMWUA.

Mayor Jackson asked for a report from Mayor Pro-Tem Miller who stated that, as the Council knows, the Finance/Administration Committee has had questions in the past regarding funds to the authority. Mayor has indicated that things are changing at the ENMWUA (Authority). He said that the Authority has made a turn and we are seeing some progress. He told the Council that the Committee had a long discussion about the amount of reserves. He said that Mr. Ortega, Executive Director of the Authority, had stated that they would use the money in more appropriate and productive ways. Mayor Pro-Tem Miller stated that he had more confidence in the Authority adding that in the past the Finance/Administrative Committee has been hard on the Authority. He stated that the Committee recommended that the City pay the membership dues for 2018-2019 in the amount of $347,497.00 as presented. He added that this amount was lower than that of the previous year. He asked for questions. Mayor Jackson asked the pleasure of the Council. Mayor
Pro-Tem Miller made the motion to approve payment of the invoice issued by the Authority in the amount of $ 347,497 .00 for FY 2018-2019. Councilor Lucero seconded the motion. Six of the seven Council members present voted in favor of the motion. Councilor Heflin voted Nay. Motion carried.

(E) CITY OF PORTALES 2018 WATER CONSERVATION AND USE REPORT

Mayor Jackson asked Public Works Director John DeSha to present the 2018 Water Conservation and Use Report. Mr. DeSha told the Council that the wellfield is as healthy as it can be. He told the Council that Dr. Charles Wilson, the City’s water consultant, could not attend this meeting. Mr. DeSha commented that the wellfield has seen some recharge. He commented that there had been some bad data in the past. He stated that some needed improvements have been made for the wellfields and that the City now has a good specialist on board. In addition, he stated that Skip Wilson, the retired Wellfield Specialist has come back to the City to assist. He commented that water conservation is working and added that outdoor use has gone down a great deal. He reported that the automatic meter reading program is working well. Mr. DeSha said that historically water wellfield levels had dropped like a stone in the past, but now they seem to be leveling off. He commented that we had made up a little bit of ground in water levels over the last few years. He said that the Department is getting ready to drill some test wells. Mayor asked about any issues at the wellfield. Mr. DeSha says that the people working at the wellfields have a better handle on the condition of the wells. He asked the Council to send their questions about the report to him for submittal to Dr. Wilson. There were no questions at this time.

(F) REPORT ON MEETING WITH THE NEW MEXICO CONGRESSIONAL DELEGATION – UTE
WATER PIPELINE (moved before Item D.3)

(G) OTHER BUSINESS/CITIZENS TO BE HEARD

Mayor Jackson asked for items of other business for any matter not known about or which could not have been reasonably foreseen prior to the time of posting of the agenda. Public comments will be limited to three (3) minutes per speaker. Individuals will be limited to one (1) presentation per meeting, and there will be a maximum of six (6) speakers on each subject. To avoid any possible violation of the Open Meetings act, Councilors will not respond to comments or answer any questions. Questions or requests for information in writing should be directed to the City Manager during regular business hours.

Mayor asked for comments.

Comments from Council:

Mayor Pro-tem Miller said that he had attended the NMML board meetings and that the main priority was tax reform–getting rid of exemptions and bringing down the tax rates in the state to attract businesses.

Councilor Parker asked for an update on the downtown hotel. City Manager Standefer reported that they are a little behind schedule – Sammy said that they are a little behind schedule due to problems in the HVAC and electrical. He commented that the contractor is working from the top down and added that the owner is still talking about opening in November or December this year.

(H) EXECUTIVE SESSION/CLOSED MEETING:
1. Action to Convene in a Closed Meeting (pertaining to open meetings referencing Section 10-15-1 H.) for Attorney-Client Privilege Pertaining to Threatened or Pending Litigation.

Mayor Jackson asked for a motion to convene in closed session to discuss matters as provided for under the New Mexico Statutes pertaining to open meetings referencing Section 10-15-1 H. for Attorney-Client Privilege Pertaining to Threatened or Pending Litigation. Councilor Parker made the motion to enter

into closed session for threatened or pending litigation. Councilor Smith seconded the motion. Roll call vote of all Council members present voted in favor of the motion. No abstentions.
Motion carried.

2. Action to Convene in Open Meeting.

Mayor Jackson asked for a motion to convene in open session. Mayor Pro-Tem Miller made the motion to convene in open meeting. Councilor Robinson seconded the motion. All Council members present voted in favor of the motion. No abstentions. Motion carried.

3. Action Required as a Result of the Closed Session.

Mayor Jackson stated that only those items mentioned in the motion to close the session were discussed by the Council and that no action was needed or taken.

There was no further business.

ADJOURNMENT

There being no further business, Mayor Jackson adjourned the meeting at 7:25 p.m.