The Regular Meeting of the Taos Town Council was called to order by the Honorable Mayor Pro Tem George "Fritz" Hahn at 1:05 p.m. 

Ms. Renee Lucero, Town Clerk, called roll and a quorum was present.  

Those present were:         
Mayor Pro Tem, George “Fritz” Hahn
Councilmember, Judith Y. Cantu       
Councilmember, Andrew T. Gonzales (arrived during "Presentations")
Councilmember, Frederick A. Peralta         

Also present were:      
Town Manager, Richard Bellis

Town Attorney, Floyd Lopez
Town Clerk, Renee Lucero

Absent/Excused was:

Mayor, Daniel R. Barrone   

Bill Ervin led the audience in the Pledge of Allegiance.

David Mapes, Lodgers Tax Advisory Board Marketing Committee Chairman, stated five members from the Town's new marketing firm, Atlas Advertising, came to visit Taos last week.  They met with several local and regional stakeholders including directors of tourism, lodgers, artists, government agencies, historians, educators, event promoters, and outdoor enthusiasts. Furthermore, the group met with representatives from Taos Pueblo which was a very important highlight of their visit, as the Taos Pueblo receives 100,000 visitors each year.

Councilmember Cantu stated she is pleased that Mr. Mapes is involved in the committee due to his integrity and fairness. She believes he is doing a great job.

Mr. Bellis requested that Item 11.B (Amendment to Marketing Contract) be moved to next item on the agenda since it is closely related to the current agenda item. 

Councilmember Cantu made  a motion to move Item 11.B. to the next item on the agenda.  Councilmember Peralta seconded the motion.  The motion passed.  The Councilmembers voted as follows:  Ayes:  Cantu, Gonzales, Hahn, Peralta. 

Mr. Bellis proposed to increase the Marketing Contract by $50,000 which would come from the reserves, leaving a balance in the reserves of approximately $53,000.

John Abeln, Lodgers Tax Advisory Board Member, stated the need for promotional advertising is critical. He further stated, due to fires in the northwestern United States, the Town needs to advertise so that those who planned on traveling to the northwest will travel here instead.

Councilmember Hahn made a motion to approve the amendment.  Councilmember Cantu seconded the motion.

For discussion Councilmember Cantu asked Councilmember Peralta how he feels about the amendment.  Councilmember Peralta stated he does not have a copy of the full contract to determine what the amendment will be used for.  Mr. Bellis explained this will be used exclusively for advertising on social media, radio and television.  Councilmember Peralta stated he believes the contract amendment should include specific details on what the additional funds will be used for. 

Councilmember Peralta made a motion to amend Councilmember Hahn's motion by adding the following at the end of Paragraph 1 of the amendment: The additional $50,000 of this amendment shall be spent exclusively on ad-buys for the fall and winter season, inclusive of layout, commission and GRT.   Councilmember Gonzales seconded the motion.  The motion passed.  The Councilmembers voted as follows:  Ayes: Cantu, Gonzales, Hahn, Peralta.  

Councilmember Hahn's motion passed.  The Councilmembers voted as follows:  Ayes: Cantu, Gonzales, Hahn, Peralta.  

Erik Harrigan, RBC Capital Markets, LLC, Director, stated as of July 1, 2015, the Town has $11,029,702 in total outstanding debt representing $7,541,536 in Revenue Bonds and $3,488,166 in Utility Bonds.  He stated there is no outstanding debt in Lodgers Tax Revenue Bonds or General Obligation Bonds.

Furthermore, Mr. Harrigan reviewed the Town's Local Option Taxes as of July 1, 2015 and discussed ways the Town could restructure debt in an effort to save taxpayers' money.

Councilmember Peralta stated if the Town decides to consolidate debt it should be done rather quickly because interest rates could be going up soon. 

Mr. Bellis stated he and Marietta Fambro, Finance Director, would like to meet further with Mr. Harrigan and bring a recommendation back to the Council at the next Council meeting.

Councilmember Peralta requested that Ms. Fambro schedule an Audit Committee Meeting as soon as possible so that they can assist with the recommendation.

David Weaver, Chief of Police, provided a report based on eight primary districts throughout the municipality. The report is broken down by crimes against persons and crimes against properties.   He emphasized crimes are on a downward trend.  He also indicated he will soon be getting a new records management system and he is confident that once that system is in place, his statistics will be completely accurate.  He requested that the Council provide him feedback on what they would like to see on the report.

Councilmember Peralta asked if commercial and residential statistics could be separated within the historic district. 

Councilmember Cantu expressed concern about the panhandlers around town.  Chief Weaver stated law enforcement understands that there is a migration of homeless people during the summer; however, he stated the Police Department must allow people to practice their constitutional rights.  Furthermore, Chief Weaver stated if panhandlers are doing something illegal, the Police Department will handle it.

Francisco Espinoza, Public Works Director, gave a report on the Town's Roadway Capital Improvements Projects.  He explained that the Town's inventory consists of 46.82 miles of paved roadway and 7.65 miles of gravel roadway. In 2015 approximately 21% of the roadways were listed in good condition and approximately 18% were listed in poor condition. Mr. Espinoza stated currently, there is a shortfall of $5,550,639 in funds to complete the Town's roadway projects

Mr. Espinoza provided a breakdown of the project funding sources over the last ten years.  He stated one of the Town's priorities is improvements to Camino de la Merced. He stated the funding has provided for 19% of the roadway to be complete and an additional $1,084,260 is needed to complete the road.  Additionally, Mr. Espinoza explained that the Este Es Road Project, which is complete, was phased out over four years and was funded primarily through CDBG Funds, and also through the Town, the New Mexico State Legislature, and private entities.

Councilmember Cantu stated Governor Martinez recently awarded Taos with funds to improve Paseo del Pueblo Sur.  She asked if the plans will include bicycle paths.  Mr. Espinoza stated the plans do include bicycle paths.  Councilmember Cantu also asked if a one-way pair in the downtown area is being considered.  Mr. Espinoza stated yes; however, the state has additional work to do on the project, which would include conducting public hearings for the citizens and additional meetings with the Town and County.

The following individual spoke during Citizens Forum: 

Stephens Hall discussed the Public Works Director's report on Camino del Medio at the last meeting and how 7/8 of the road was constructed on unsuitable materials. He also requested that back up information be attached to the agenda as there were several presentations today that did not have any backup for the public to review.

Discussion, consideration and possible approval of Amendment No. 6 to Contract TT-09-95 with CH2M HILL-OMI in the amount of $909,601.78 plus GRT for a period of one year from July 1, 2015 through June 30, 2016 in continuation of an eight-year contract.

Discussion, consideration and possible approval of Change Order 3 to Contract TT-15-114 with Garcia Underground, Inc. in the amount of $23,250.50 plus NMGRT for the final adjusting quantities in the construction of the Weimer Hills Water Line as part of Water Trust Board Project 260.

Councilmember Cantu requested that Items 9 A, B, C, D, be removed for discussion.  Councilmember Gonzales requested that Item F. be removed for discussion.

Councilmember Peralta made a motion to approve the consent agenda (Item 9.E.) as amended.  Councilmember Gonzales seconded the motion.  The motion passed.  The Councilmembers voted as follows:  Ayes: Cantu, Gonzales, Hahn, Peralta. 

Item 9.A. Contract TT-15-114 Change Order 2

Councilmember Cantu referred to the original contract and asked Mr. Espinoza how this change order is justified.  Mr. Espinoza stated there were additional claims made by the contractor because of utilities that were installed by subcontractors to the broadband project after the plans for this project were completed.  During construction it was determined some of the utilities were buried two to six inches and utilities should not be buried less than eighteen inches.  Mr. Espinoza stated this caused the contractor to incur additional labor costs and the contract allows for this change order.

Councilmember Cantu asked if the contractor who installed the utilities should be responsible for the costs. Mr. Bellis stated the Town's contractor incurred that expense regardless of whether the Town gets reimbursed from Kit Carson Electric.  The Town cannot expect the contractor to seek reimbursement from Kit Carson Electric. If the Council directs him to seek reimbursement from Kit Carson Electric, he will do it.

Councilmember Peralta stated he agrees with Councilmember Cantu that the contractor should have ensured the utilities were properly marked.  He does not believe the Town is responsible. 

Councilmember Gonzales expressed concern about whether the contractor notified Kit Carson Electric about the lines.  If they were buried incorrectly it should have been Kit Carson Electric to correct them, rather than the contractor.  If the incident is not reported and documented it cannot be corrected by Kit Carson Electric.  Mr. Espinoza stated no lines were broken; the cost is for the extra excavation to locate them. Councilmember Gonzales stated he believes the issue could have been addressed without the additional cost.

Extensive discussion ensued regarding whether the Town should be responsible for paying the additional cost.  Floyd Lopez, Town Attorney, explained the original contract allows for change orders to be made. 

Mr. Bellis stated the Town has a lot of difficulty getting contractors to bid on these types of projects due to the criticism many of them receive.  He further explained the Town has a lot of pipes that are public and private which are not recorded and contractors would be reluctant to work for the Town if they knew they couldn't continue work if a pipe was hit or discovered. 

Councilmember Peralta made a motion not to accept Change Order 2 to Contract TT-15-114 with Garcia Underground, Inc. Councilmember Cantu seconded the motion.

For discussion, Councilmember Hahn stated he understands mistakes may have been made by different entities on this project.  He believes it would behoove the Town to direct Mr. Bellis to discuss the issue with Kit Carson Electric and the other entities and bring the item back to the Council for consideration. Councilmember Peralta stated he does not believe it is the Town's responsibility to contact the other entities; rather, he believes it is the contractor's responsibility.  

The motion passed. The Councilmembers voted as follows:  Ayes: Cantu, Gonzales, Peralta.  Nays: Hahn.

Item 9.B. Approval of Amendment #6 to CH2MHill

Councilmember Cantu stated a year ago, the Town approved a one year contract with CH2M HILL-OMI and the contract seems to increase every year.  She wants to investigate whether the Town can get a better deal on these services. 

Mr. Espinoza stated this is the last year of an eight year contract with CH2M HILL-OMI and the Town will be going out for RFP before a new contract is in place next year.  He explained this contract is expected to increase by approximately $30,000 every year.  Councilmember Hahn stated in his research, he discovered the increase is due to the Consumer Price Index.  He stated he has asked to be updated on the RFP process.

Anthony Martinez, Project Manager for CH2M HILL-OMI, stated the contractual default increase is 2.4%. He clarified the CPI formula is used as a guide, but the increase is actually less than the formula.

Councilmember Peralta made a motion to approve Amendment #6 to Contract TT-09-95 with CH2M HILL-OMI.  Councilmember Gonzales seconded the motion.  The motion passed.  The Councilmembers voted as follows:  Ayes: Cantu, Gonzales, Hahn, Peralta.

Item 9.C.Contract TT-15-114 Change Order 3

Councilmember Cantu asked for an explanation on this item.  Mr. Espinoza stated this is the final adjusting change order that will resolve overruns and underruns from the quantities in the bid form. 

Councilmember Peralta asked Mr. Espinoza to ensure that the Town is not paying for work that was done in Change Order 1. Mr. Espinoza stated he received formal approval from the Mayor for Change Order 1 so that the project could continue.  The Town did not pay anything for Change Order 1.  This Change Order will take care of that payment and will close out the project.

Councilmember Gonzales stated he believes the Town needs to consider forming a Utilities Council to discuss construction projects and alleviate these types of cost over-runs and under-runs.  They can serve as an advisory board to help the Council determine whether these types of fees are justified.  He directed Mr. Bellis to follow-up on this issue.

Councilmember Peralta made a motion to approve Change Order 3 to Contract TT-15-114 with Garcia Underground, Inc. Councilmember Hahn seconded the motion.  The motion passed.  The Councilmembers voted as follows:  Ayes: Peralta, Hahn.  Nays: Cantu: Absent during vote: Gonzales.

Item 9.D. Contract TT-15-114 Amendment 2

Mr. Espinoza explained Amendment 1 was issued on June 30, 2015 as an extension of time through June 30, 2016 only. No additional costs were associated with Amendment 1. He stated Amendment 2 consists of additional SCADA Design, geotechnical work and additional survey for Phase II of the project.  The amendment includes engineering services for project implementation and system optimization.

Extensive discussion ensued regarding items listed on the amendment that seem to be part of the original contract.  Mr. Espinoza discovered that the attachments have inaccurate information and requested that the item be continued to enable him to provide the correct information.

Councilmember Peralta made a motion to continue Item 9.D. to the Regular Council Meeting on September 8, 2015 at 1:30 p.m. Councilmember Gonzales seconded the motion.  The motion passed.  The Councilmembers voted as follows:  Ayes: Cantu, Gonzales, Peralta, Hahn.

Item 9.F. Town Manager's Employment Agreement

Councilmember Gonzales recommended the following amendments to the Town Manager's Employment Agreement:

1. Total compensation for the Town Manager, excluding Town employee benefits, shall remain at $111,600;
2. Section 7 - Automobile Allowance shall be eliminated and the $6,600 Automobile Allowance shall be moved to Section 3(A); Compensation for a total of $111,600;
3. No mileage shall be paid to the Town Manager for work-related travel within 150 miles of Taos;
4. All other terms of the Town Manager's contract shall remain in full force and effect.

Councilmember Gonzales made a motion to accept his amendment.  Councilmember Peralta seconded the motion.  The motion passed.  The Councilmembers voted as follows:  Ayes: Cantu, Gonzales, Hahn, Peralta.  

Councilmember Gonzales made a motion to approve the Town Managers Employment Agreement as amended.  Councilmember Peralta seconded the motion.  The motion passed.  The Councilmembers voted as follows:  Ayes: Cantu, Gonzales, Hahn, Peralta.

Lynda Perry, Grants and Revenue Development Director, reviewed last year's plan and highlighted projects that have been accomplished. 

Chief Weaver requested Item 11 (Replacement of 20 In-Car Police Computers) be deleted.

Public Opinion

Mayor Pro Tem Hahn opened the public hearing.  No one came forward.

After closing the public hearing, Mayor Pro Tem Hahn asked for questions from the Council.

Councilmember Peralta requested a copy of the backup description for each project with the intention for funds.  Ms. Perry stated she will follow-up on Councilmember Peralta's request. 

Extensive discussion ensued regarding several projects and the purpose of the projects. 

Mr. Bellis directed Ms. Perry to add the following projects to the ICIP:

• Perimeter fencing around trails at Fred Baca Park;
• Regional Animal Shelter;
• Cameras for parking lots and parks;
• Lighting for parking lots; and
• Expansion of Fred Baca Park.

Tamara Chavez, Human Resources Director, reviewed the new job description for the Fire Marshal position and explained the Town Code indicates that the Town must have a Fire Marshal to issue citations and do inspections.

Councilmember Hahn asked if the position has been budgeted.  Mr. Bellis stated he believes the revenue has been generated for the position; however, the line item has not been created yet.

Councilmember Peralta asked if this would increase the number of positions at the Fire Department or increase the budget.  Leroy Gonzales, Administrative Fire Chief, stated there would not be an increase in employees; however, there will be a slight increase in the budget.  Councilmember Peralta stated if the position is added to an employee's duties it should be as a promotion.

Mr. Bellis stated Matt Thomas, Director of The Paseo, approached the Council at  a previous meeting regarding this issue; however, the item was not listed as an action item.  This formalizes his request.

Councilmember Peralta expressed concern that UNM Taos is discussing reconstruction of Rio Grande Hall which is located on Civic Plaza Drive.  Mr. Bellis stated his understanding is that Mr. Thomas has already discussed the closure with UNM Taos.

Councilmember Cantu stated she has not seen the street sweepers on the road for quite some time.  Mr. Bellis stated he will talk to Mr. Espinoza about this issue. 

Councilmember Cantu also stated the weeds are out of control and she would like the Town to address the issue.

Councilmember Peralta made a motion to go into Executive Session.  Councilmember Gonzales seconded the motion. The motion was Passed.  The Councilmembers voted as follows: Ayes: Cantu, Gonzales, Hahn, Peralta.

At 6:47 p.m., Councilmember Peralta made a motion to come out of Executive Session. Councilmember Hahn seconded the motion. The motion was Passed.  The Councilmembers voted as follows: Ayes: Cantu, Gonzales, Hahn, Peralta.

Floyd Lopez, Town Attorney, stated discussion in the Executive Session was limited to the items as they were called for and no action was taken. Councilmember Peralta made a motion to accept Mr. Lopez's report.  Councilmember Hahn seconded the motion. The motion was Passed.  The Councilmembers voted as follows: Ayes: Cantu, Gonzales, Hahn, Peralta.

A motion was made by Councilmember Peralta and seconded by Councilmember Cantu to adjourn the meeting.  The motion carried unanimously and the meeting adjourned at 6:50 p.m.