The Regular Meeting of the Taos Town Council was called to order by the Honorable Mayor Daniel R. Barrone at 1:01 p.m. 

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

Those present were:      
Mayor, Daniel R. Barrone      
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

Lieutenant David Maggio led the audience in the Pledge of Allegiance.

Change 10.C. to read as follows:

Resolution 15-35 - Letter of Support for Taos Soil and Water Conservation

Discussion, consideration and possible approval of Resolution 15-35 - letter for support for a grant submission.

Ms. Olson, stated the purpose of the presentation is to inform the public of another opportunity for the Town of Taos to shine. She stated  2015 marks the 33rd Annual Taos Mountain Balloon Rally.  The rally is very intimate and normally hosts between thirty-five and fifty balloonists per year, filling up Taos area hotels and restaurants adding to Taos' economy.  Ms. Olson also discussed the events that are hosted during the rally. 

Tony Wright, President of Taos Mountain Balloon Rally, stated the Balloon Rally parade usually has forty to sixty floats.  She discussed her concern of keeping one lane open to vehicular traffic during the parade, which is very dangerous.  Last year, Taos Police Department was outstanding in assisting them with safety issues and she would like to see that tradition continue.

Chief Weaver stated the parade is getting larger and he recommends a complete road closure for safety purposes.  He asked Council to consider the closure in the near future.

Po Chen,  Executive Director of Youth Heartline, presented activities since his last presentation a couple of months ago. 

He stated their mission is to provide quality arts, health and literacy programming to underserved and isolated communities in Taos.  He reviewed the programs offered through Youth Heartline that benefit children's health and well-being.

He asked the Town to consider supporting Smart House through grant funding and providing bus-transportation to and from Gusdorf so that children can participate in Town events.

Francisco Espinoza, Public Works Director, stated the proposed Water and Sewer Masterplan was compiled by using the Preliminary Engineering Report, the 40 Year Water and Development Conservation Plan from the Abeyta Settlement, the PER for the Wastewater Treatment Plant, the 2007 Water System Study, and the revision of the 2020 Masterplan.  He plans to bring the document to the Council for adoption on August 25th.

Peter Fant and Paul Kennedy, with Souder, Miller & Associates, provided a PowerPoint presentation.  Mr. Kennedy reviewed the Water and Sewer Master Plan Objectives which includes evaluating the adequacy of the existing water and wastewater systems and providing a plan for the orderly provision of required infrastructure for future needs. They also plan to develop improvement projects to correct any deficiencies.

Mr. Kennedy provided a detailed explanation of how the Town's water and sewer system works and their usage.

Extensive discussion ensued regarding generating money from water reuse.  Mr. Espinoza clarified the Town gets credit for discharging some of its treated water back into the Rio Pueblo.  The credit is not economic; rather it is for water use.

Mr. Espinoza stated the next step will be for the Council to consider the plan at a later date for adoption.

Mayor Barrone asked to amend the agenda to allow David Torrez to speak.

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

Mr. Torrez discussed the new broadband system in Taos which is unprecedented for a community of this size.  He stated the investment in the infrastructure is $64 million. This infrastructure will assist with technological advancements in Taos. Mr. Torrez informed the Council of a one-day conference scheduled on October 10th at the Town Council Chambers to educate individuals on utilizing technology to improve their lives and their businesses. He asked the Mayor and Council to support this initiative which can improve economic development in Taos.

Councilmember Gonzales stated he supports this initiative due to the economic impact it would have on the community.  He believes tourism depends too much on the weather and it would be good to have something to create viable economic development.

The following citizens spoke during Citizens Forum:

•  Mr. Bellis stated he has received several comments from citizens regarding the animal shelter and he will compile them and make them available to the Mayor and Council.

Harvey Yokum, Executive Director of Stray Hearts Animal Shelter, stated the shelter staff created a shelter everyone could be proud of; however, yesterday 15 shelter workers were laid off and that created an uproar in the community. He stated all he's asked for is the municipality and county to pay their fair share to provide animal shelter services.  Yesterday he met with local law enforcement and all have agreed to work together. 

Mr. Bellis stated he and Mr. Yokum spoke and the shelter is not turning down animals in need.  They are returning dogs with tags to their owners.  He assured the Council that no animals are in distress.  Mr. Yokum concurred with Mr. Bellis and stated animals are coming in to the shelter in record numbers and they cannot keep up with them.

Mayor Barrone stated he believes the Town supports the animal shelter.  It seems every couple of years issues with the shelter come up.  He has received many emails about the situation.  The Town has a very tight budget and not much money to work with.  All parties need to sit down and discuss ways to address this issue. 

Extensive discussion ensued regarding the steps the Town has taken to assist the shelter since the last Council meeting.  Mr. Bellis stated he hopes the Town and the County can agree on an ordinance and services. 

Councilmember Gonzales asked Mr. Bellis to evaluate the budget and try to locate grant opportunities to assist the shelter.

• Sue Goldberg, with the Bridges Project, thanked the Town for the block grant they received.  She stated the funds are used to assist anyone interested in going to college. The grant received by the Town was used to assist sixty individuals in the community on their application process and locating financial aid.

• Stephens Hall discussed the item on the agenda approving a resolution to participate and fund $15,000 for the Green Printing GIS Mapping process with Trust for Public Lands.  He believes Town staff is capable of conducting this type of work.

Discussion, consideration and possible approval of Resolution 15-28 to allow Francisco Espinoza, Public Works Director, to supervise his immediate family member, William Espinoza, Public Utilities Operator III.

Louis Fineberg, Planning, Community and Economic Development Director, presented Ordinance 15-06 to the Mayor and Council.

Mr. Fineberg stated the annexation and zone change meets all of the requirements in accordance with state law and Town Code.  The property is currently zoned R-4 in the County and the applicant is requesting the same zone in the Town.

Public Opinion

Mayor Barrone opened the public hearing.

Mark Yaravitz was sworn in and stated he is the agent for the property owner.  He further stated the current zoning is R-4 and the property owner wants it to stay that way. Mr. Yaravitz also stated Brian James, previous Town Attorney, declared that doing any kind of site plan in conjunction with a zone change is called Contract Zoning and he forbid it. Additionally, Martha Perkins, previous Planning Director, began adjusting the code to allow that all zone changes should not be considered part of an application for any use and is illegal.   The owners do want to address the safety issue with regard to the ingress and egress at the mobile home park which is very dangerous.  Currently there is not enough space to bring a fire truck into the area and they want to remedy the issue.

Peter Leonard, 519 La Lomita, was sworn in and stated he has no objections to the annexation; however,  he does object to the zone change.  He stated if the land is to be developed Taos will lose more agricultural land.  He is also concerned about Los Lovatos Acequia.  He believes if the land is developed, the water will no longer flow through his ditch.

Michael Medina, 520 La Lomita, clarified that he and Mr. Leonard get their water from the lateral from Los Lovatos ditch, which flows parallel to the property in question.

After closing the public hearing, Mayor Barrone asked for questions from the Council.

Councilmember Hahn asked for clarification from Mr. Fineberg regarding the concern on the acequias if a development occurs.  Mr. Fineberg stated if a development occurs, the applicant would be required to preserve the acequias in accordance with Town Code. 

Councilmember Peralta stated when he was Mayor there were a couple of fires at La Lomita Park and fire trucks could not get in.  He asked where the new access would be.  Mr. Yaravitz stated there are currently no plans; however, the Council can place a condition that that the applicant create a roadway to address safety. Discussion ensued regarding the new access. 

Leroy Gonzales, Administrative Fire Chief, stated there is a hydrant nearby and fire trucks can get into the area in a small truck, but not in a big truck.  Mr. Fineberg stated at the time an application for development is submitted, the applicant would be required to do a traffic study and provide safe ingress and egress.

Councilmember Peralta asked if this can be approved with a condition.  Mr. Fineberg stated it is difficult to give a condition on an annexation or zone change. Mr. Fineberg further stated staff recommendation is to approve the annexation and zone change.  He indicated this was approved by the Planning and Zoning Commission.

Ms. Fambro reviewed the June, 2015 Financial Report which verifies that  the ending balances coincide with the beginning budget balance for fiscal year 2015-16.

GENERAL FUND

Revenues - Gross Receipts Tax - June's tax distribution (April's activity) increased by 22.12% compared to 2013-2014. The most significant categorical increases were in Retail Trade at $23,242 (9%) and Accommodation & Food Services at $22,736 (23%). The most significant categorical decreases were in Unclassified Establishments at $4,383 (48%) and Utilities at $4,249 (12%). The current year-to-date growth rate ending June 30, 2015 increased by 2.56% compared to 2013-2014 and 4.09% over budget. Overall revenues totaled $10,913,205, an increase from last fiscal year's of $10,831,079. The major contributing factor was the gross receipts tax, which increased substantially in the last two months.

Expenditures – Final expenditures between all 17 departments totaled $9,765,590. Based on the original budget figures versus actual, the Town was 3% below what was budgeted. In April 2015 all departments were asked to project what they would expense through the end of the year. Included in this report under the year end variance column is what each department projected versus what was actually spent.

Ending Balance – Based on final actual revenues and expenditures, the ending balance of $834,508 will be carried into fiscal year 2015-2016. This does not include the required 1/12 of $881,246 and the additional reserve of $1,077,316. Based on next year's budget, the Town is allocating a combined amount of $301,931 to one-time costs and community grants along with $393,506 to the additional reserve balance. In conclusion, the reserve balance (1/12 required and additional) for 2015-2016 is 10 days under a 3/12ths reserve.

Ms. Fambro provided the final budget.  She stated the budget includes $63,226,348 in revenues and $53,398,087 in expenditures.  Ms. Fambro also reviewed the major changes to the budget since her last presentation in June.

Councilmember Gonzales asked what the balance is for the Street Repair and Maintenance Fund. Ms. Fambro stated the fund includes a carry-over amount of $49,545 and a new allocation of $70,000 for a total of $119,545.

Mr. Bellis explained the different programs being proposed for the Toolbox program. He stated Section 22 of the Lease Agreement provides for a thirty day notice of termination.  Furthermore, the lease allows rent to be set at the fair market value of the premises; however, the tenant can reduce that rent by providing services to the community.

Mayor Barrone requested clarification that the tenants cannot change anything within the building; he wants to ensure that the asbestos will not be disturbed.  Mr. Bellis stated that is correct and if any permanent changes are proposed, they would come back to the Town for approval. 

Councilmember Peralta requested that the lease require the tenant to provide monthly activity reports and quarterly reports to the Town Council.  Mr. Bellis directed Mr. Lopez to add the recommended reporting requirement to the lease.

Matt Thomas, with Toolbox, stated the agenda is incorrect and should read that the lease is with "Taos Arts Festival" rather than "Taos Council for the Arts".

Councilmember Peralta made a motion to approve the recommended amendment on reporting.  Councilmember Gonzales seconded the motion.  The motion passed.  The Councilmembers voted as follows:  Ayes: Cantu, Gonzales, Hahn, Peralta.

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

Mr. Bellis stated he and Rose Vargas recently met with many foundations and it became clear that they do support the program; however, they are hesitant to commit money without the Town's commitment.  He further stated he developed a participation agreement outlining concerns of the individual Councilmembers. The agreement outlines a very rigid timeframe and indicates the Town will not commit to providing any cash until an Executive Director is hired and a board is in place.  There would also be a board selection committee comprised of a representative from the Town, County, and ACD Board.  The program would now be Taos Main Street and no longer the Arts and Cultural District.   If the resolution is approved, the process and dialogue will continue. 

Bob Sahd and Susan Cady spoke in favor of the resolution and agreement.

Mayor Barrone stated Tom Blankenhorn, Taos County Commissioner, has indicated he would support this. He has also agreed to sit on the board.

Councilmember Gonzales asked whether the County will commit to assisting with funding.  Mayor Barrone stated the County is supporting the plan with the contribution of up to $500,000 toward improvements at the Old County Courthouse to generate more business to the downtown area. 

Extensive discussion ensued.  Mr. Bellis reviewed the PowerPoint presentation that was discussed at the Council meeting on July 14th and explained the improvements that have been made to the program since then. He also reviewed the projects that are proposed to be accomplished by the Taos Main Street program.  Furthermore, he emphasized if the Main Street program is not approved, the Town stands to lose over $600,000 in grant funds. 

Councilmember Hahn made a motion to approve Resolution 15-27.  Councilmember Peralta seconded the motion.

Councilmember Peralta amended Councilmember Hahn's motion to amend Resolution 15-27 to add as an attachment the Participation Agreement.  Councilmember Hahn seconded the motion.  The motion passed.  The Councilmembers voted as follows:  Ayes: Cantu, Gonzales, Hahn, Peralta.

Councilmember Hahn's motion passed along with the Participation Agreement as an attachment.  The Councilmembers voted as follows:  Ayes:  Gonzales, Hahn, Peralta. Nay: Cantu.

Councilmember Peralta stated the Executive Director job description needs to include education requirements as well as experience. 

Mr. Bellis stated he sent an invitation to the Mayor and Councilmember Gonzales to attend a meeting on August 12th at the Library.  He believes there is technology at the Library not being utilized that would address many of their staffing issues. 

Floyd Lopez, Town Attorney, explained the Mayor and Council received a letter from Jingdezhen, China, inviting them to the International Ceramic Fair from October 18 through 22, 2015.  He read the letter for the record.  He indicated the airfare to Shanghai or Beijing is about $700 round trip. He stated it would be a great opportunity for the Council to engage in international relationships with their Sister City and emphasized all costs would be covered by Jingdezhen, except for air fare. 

Mayor Barrone asked how the Town would repay them. Mr. Lopez stated they are very interested in coming here.  

Mayor Barrone clarified that costs associated with air fare would be covered personally by the Councilmembers if they are interested in traveling. 

Councilmember Gonzales made a motion to appoint Mayor Barrone as the Voting Delegate and Councilmember Gonzales as the Alternate Voting Delegate.  Councilmember Cantu seconded the motion.  The motion passed.  The Councilmembers voted as follows:  Ayes: Cantu, Gonzales, Hahn, Peralta.

Councilmember Cantu, on behalf of the Fiesta Council, thanked the Town for their outstanding support during Fiesta weekend.

Councilmember Hahn stated Movies on the Green needs help.  He asked if the Councilmembers can go to the park at around 9:30 or 10:30 p.m. on Wednesdays to assist with loading the equipment as it is very heavy.

Mayor Barrone thanked the staff for working on Movies on the Green and also thanked the Fiesta Council for the all the events, especially the street dance on Saturday night.

A motion was made by Councilmember Hahn and seconded by Councilmember Peralta to adjourn the meeting.  The motion carried unanimously and the meeting adjourned at 5:50 p.m.