CITY COMMISSION CITY OF TRUTH OR CONSEQUENCES, NEW MEXICO SPECIAL MEETING. Minutes

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1 CITY COMMISSION CITY OF TRUTH OR CONSEQUENCES, NEW MEXICO Thursday, January 4, 2007 SPECIAL MEETING Minutes TIME & PLACE: The Mayor and City Commission City Truth or Consequences in County Sierra and State New Mexico, met in Special Session in full conformity with law and ordinances said Commission in Commission Chambers said City, on Thursday, January 4, 2007 at 11: 30 A.M., to discuss following: 1. Discussion/ Approval Resolution / 07 Authorizing FY 2007 CDBG Project Application PRESIDING OFFICER: ATTENDANCE: The meeting was called to order by Mayor Montgomery who presided and Mary B. Penner, City Clerk acted as Secretary meeting. Upon calling roll following Commissioners were reported present: Hon. Lori S. Montgomery, Mayor Hon. Jerry D. Stagner, Mayor Pro-tem Han Jimmy L. Rainey, Commissioner Hon. Evelyn B. Renfro, Commissioner Hon. Freddie J. Torres, Commissioner Also present: Jaime Aguilera, City Manager Mary B. Penner, City Clerk QUORUM: There being a quorum present Commission proceeded with business at hand. The following minutes are verbatim transcripts for Resolution# 19-06/ 07: FY 2007 CDBG Project Application. LM- Lori Montgomery JS Jerry Stagner JR Jimmy Rainey ER Evelyn Renfro FT Freddie Torres JA Jaime Aguilera TMR Tony MacRobert RC Raymond Chavez RESOLUTION JA I had mentioned at our previous Commission meeting that we 19-06/ 07: FY were now eligible to apply again through Community 2007 CDBG Development Block Grant Program and that our priority was a PROJECT continuation existing grant that we had received for Ash APPLICATION: Street Circuit. As a matter fact we have, we were required to do anor survey area that' s being served. I asked Raymond Chavez if he would come up and do a little explanation survey, and how he did And reason I' m asking Raymond to do that is because we have had a lot phone calls into fice

2 from people who are getting phone calls or who are getting ir doors knocked on from our city employees. And understandably our citizens are concerned who y are giving this information to y and so calling in asking, " does Mr. Chavez work for are City, or should I have answered se questions." So Mr. Chavez would you just explain about survey, that you are almost complete with. RC We completed are it. with We were asked to survey two hundred and fifty; we got two hundred and fifty about an hour ago, so we got it completed. We are helping Mr. MacRobert with it. Our main help was Jimmy here; he did most walking around and did most walking Electric Department, had two We also got help from We also had help from surveys. gentlemen. one person from Library, and one person from Municipal Court who also helped with phone surveys. Everybody was pretty much very cooperative in almost all We just had neighborhoods. a few that didn' t to want do it. We had six days to do it and we got it done in four days so I think we did pretty good. LM Good job, thank you. JA And furr purpose for this meeting is to obviously allow any public input, but n also to allow, or to ask Commissioners to approve resolution allowing us and SCCOG our partners in project, to apply on our behalf. I think Tony McRobert is here to tell you a little bit about process. I don' t know how much you all know about CDBG process, and it is from Housing Urban Development, it' s a small cities grant program. We began project in middle Ash Circuit Rebuilt Project in where City had a loan and n we came back with four hundred and fifty thousand, which course five percent was local cash match cities. We have completed that phase it which allows City T or C to go ahead and apply for " 07 project. Now my understanding is we are going to be doing from Veater Street area and Clancy, and I have a mapping area. But what are you looking at as far as how much to apply for? JA It' s five hundred thousand dollar is estimate that we have from our electric company. That' s correct, and that maximum that an entity can apply for. Which leave local match cash at twenty-five thousand for five percent rate. The or thing that I wanted to bring up, and this is dealing with Great Southwestern Construction, which y' ve done a fine job I must say. However, when we began process we began in middle so re are a lot documents that we did not have to be in compliance with Department Finance and Administration, and we' re still working on As matter fact I just completed employee interviews with two employees with Great 2

3 Southwestern, and according to State wage rates re were not in compliance so he contacted engineer to inform m that and that it is in contract documents, and he stated y weren' t going to be held liable but according to documents y will be held liable, so what he is doing today is demanding an amended payroll report from Great Southwestern so y can just basically get it paid up because y don' t want anything held up and this will definitely hold up grant application process, so I just wanted to make that clear for City, and y are definitely on He stated furrmore as y well know CDBG has been a great asset with fire department and electrical and y are just going to continue on with this next phase and y will do best y possibly can, and if re is any suggestions on any or things passed you know... y can take that up into discussion at public meetings/ Commission meetings that y all have, and I think unless y have any questions that is kinda meet it right re. ER On wages that you said that CDBG came in... Great Southwestern was already in progress working on project. TMR That' s correct. ER And CDBG kicked in. TMR That' s correct. ER Was Great Southwestern ever advised? Exactly y were advised because y signed documentation for State wages rates in beginning project. Now what y have to do with CDBG is y have to come up with 2, Davis-Bacon Act, federal wages rates and wage rates. Okay, federal wage rate... State wage State rates happen to be prevailing wage rates here, so y were well aware it... had it been federal y may have caused a hang up right re. FT What happens if y don' t comply... if we loose this grant will y be liable. They' ll have to be liable and that' s reason re is bonding... associated with grant in documentation, because at this point once he submits letter department labor will go after m... wouldn' and y really don' t want to get into that point I t think. It' s not pretty because thing is... and re was two, so that means everyone was under paid, so y are looking at many thousands dollars that will have to be restituted. JR I have a question... you got into Ash Street circuit about mid way through construction. TMR Correct. JR The Bacon Law that you are talking about that should only 2nd part, or amount money that was given to... under CDBG grant, it' s not complete project. affect TMR That' s correct if Davis- Bacon Act would have been prevailing wage rate, still all in all at beginning contract 3

4 with City it still was DOL State wage rate that prevailed, and you are correct on Does anybody have authority to check se payroll ER it seems to me like we use to way back when check into records... this and make sure that y were complying with... As a matter fact Shawna, Anderson with Great Southwestern, she is payroll administrator she has signed f TMR` statement compliance, however y weren' t in compliance, so what I' m having to do is submit a copy documentation that I have... you know in request with that and course submit a copy to DFA, so y can see that effort is being made and City is dot going to be held accountable. COG City... nobody got any payroll documentations or anything that y any... could see that y weren' t complying. ER But my question was... or copies As findings... a matter fact I did, and that' s where I did make you know. r LM After fact... after fact. TMR After fact course. LM I would almost think though... wage rates are mandatory on companies irregardless wher it' s a grant or if it' s a loan, it doesn' t matter if a project is over a certain $ amount y have to follow department labor laws one way or anor, so I think its irrelevant wher or not it was attached to CDBG grant or not so this company when y bid any company that bids a project this magnitude pay prevailing it to knows that if it' wage rates... s a certain $ amount y have to so it' s a mute point almost to attach grant so... okay. FT So it would still hold up our grant wouldn' t it. LM I don' t think it would hold up our grant right now. No that' s reason why y are going to be doing what y' re doing, and I' m in direct communication with Gerald Garcia project manager with DFA and he wants to get this application through... and he sees all work that Ray Chavez and Jimmy has put in to it so... LM I would almost think that once issue is brought to attention to department labor, department labor picks up with company leaving every or entity out it to make sure that wages are corrected. Exactly because final one who signed was contractor on And what I have here is grant application and will need three signatures. LM Is re anything thing else y need answered, or any or thanked Tony. She also asked if re comments or questions, and were any public comments regarding this or any future CDBG projects. Commissioner Renfro moved approval Resolution # 19-06/ 07 authorizing FY 2007 CDBG Project Application." 4

5 Seconded by Commissioner Rainey. Motion carried unanimously. ADJOURNMENT: There being no furr business to come before Commission meeting was adjourned. APPROVAL: PAIED AND APPROVED this day 2007, on motion duly made by Commissioner seconded by Commissioner and carried. LORI S. MONT q RY, YOR ATTEST: MARY B. PE ER, CITY CLERK 5

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