City Commission - Regular Meeting

I call this meeting to order on June 9th, 2026 at 6.30 p.m. Will the clerk please call the roll?

Mayor Sharon McDonald.

Here.

Mayor Pro Tem Josh Rudin.

Here.

Commissioner Baxter Petillo.

Here.

Commissioner Stephen Burnett.

Here.

Commissioner Warren Robinson.

Here.

Commissioner Al Hernandez.

Here.

Commissioner Mark Tapley.

Here.

Madam Mayor, we have a quorum.

Okay, we're going to have the invocation tonight, and it's going to be by Pastor Jerry Martinez, and the pledge is going to be by Commissioner Tapley.

Heavenly and gracious Father, we come before you, Father, to ask that you abide here today with the Ruach HaKodesh, the Holy Spirit, to allow peace and love and harmony, to take away any discord, greediness, or any type of thing that is not from you, Lord. You are the righteous God, and you, Father, are the one who is in control. So Lord, I ask that You be here today with Your Holy Spirit and that You allow this commission, commissioner court to do the right thing, to think about what their actions are going to bestow upon them, if the decisions that they make are not the right decisions. Father God, I ask that You give them wisdom, that You give them the knowledge, and that You give them the good spirit of cooperation, and to do the right thing for the community and for the people. Lord, I plead and ask upon the request of all of those who are here today that you allow this to be a peaceful and to allow this love to overflow all the hearts that are gathered here today and to make the right decisions for the good of the community. Father God, we ask these things in your son, Yeshua HaMashiach, in his holy name. Amen, amen, amen.

Please follow me in reciting the pledge.

Pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation, under God, indivisible, with liberty and justice for all.

I'm sure she said my name.

Do we have a motion for the approval of the agenda?

So moved.

A second?

Second.

It's been moved by Commissioner Robinson and second by Commissioner Burnett. And we're going to do a vote. And the vote passes 7-0. And next we are up for public comment. I just want to remind each and everyone that's coming up tonight to speak on the forum. You have exactly three minutes. Please watch the clock. If your time expires, we will give you a warning of 20 seconds. Not to interrupt you, but 20 seconds past that time, so please be aware of the three-minute limitation. And first we have on the list is Helen Sweeney, and she is going to be talking about Dr. Hernandez, an email concerning Dr. Hernandez and conflict answers by commissioners Reardon and Burnett.

Hello, Alamogordo. I have not met most of you formally. I'm familiar with Baxter because I used to work for him. But I'm Helen Sweeney. My friend's family call me Kathy. I sent an email, 518, to the commission, which nobody has gotten back to me. So I thought I'd come and You know, put a face to it. I cannot express. You've managed to tick off every old lady in town. You know that, right? Yeah, and I'm looking at you. But what you've done this year, Tops everything else. I've been here since 2018. I came about the time that Chief Pete was being relieved of his duties in sort of a similar way. Amazingly. Somebody mentioned to me that they thought maybe I was just listening to Facebook gossip. But that's not it. Because you know what? When I first came here, I stayed in Roswell for a while. And guess what? They were talking about people in the freaking city hall yelling at employees back then. Somebody that was a cousin of somebody that was a neighbor told me about it. So this is a longstanding problem. And you guys need to straighten up and fly right. That's the only thing I can say. I am... Not very comfortable doing this because I'm not very good at public speaking. But I wanted to come up, like I said, and put a face to it. I believe that the left side of the dais has done a fairly good job. I've talked to Mark on the phone a couple of times because he's my commissioner. I have not spoken to Commissioner Robinson or Sharon McDonald. Mr. Arden, Mr. Burnett, Mr. Hernandez. And like I said, Baxter and I go back a few years now. And I love it here. And I'd like to see it become the city it should be. And I know I'm about ready to go. So thank you for your time. I did give a copy of the letter again to the city clerk so that there's no misunderstanding. I am serious. It has been submitted to the DOJ. They are investigating. It's still open, and it's still in progress. So like I said, straighten up, fly right. Thank you. Thank you.

The next person on the public forum is Thaddeus Gilmore, and he's going to be talking about the golf course and the transparency. Thank you.

Thank you, Madam Mayor, Commission. I'm Thaddeus Gilmore, and I'm here representing our AFSCME Local 3818 to address the continuous orchestrated failure of transparency. I attended the April 28th session where I stood at this very mic and politely asked this body to preserve our town. I pleaded with you to save these opportunities so younger families could afford to stay, work, and raise kids right here in Alamogordo. I LOOKED DIRECTLY AT OUR MAYOR AND I SAID, MADAM MAYOR, I WANT OPPORTUNITY FOR MY DAUGHTER TO HAVE A STORY LIKE YOURS. I THINK IT'S WONDERFUL THAT BOTH OUR MAYOR AND DR. HERNANDEZ, TWO OF THE HIGHEST RANKING PEOPLE AROUND, HAVE THE EXACT KIND OF HISTORIES THAT I WISH FOR MY AMAZING DAUGHTER. I PRAISE THE HISTORICAL VICTORY THAT BROUGHT OUR FIRST WOMAN OF COLOR TO SUCH AN IMPORTANT ROLE, PROVING TO OUR KIDS THAT YOU CAN ACTUALLY BE WHATEVER YOU WANT THROUGH HARD WORK AND DEDICATION. When my polite appeal to protect our families was ignored, I returned here May 12th for the regular session and demanded the truth. I called into question exclusive involvement of the outgoing contractor at the golf course, Grant Dalps, who's been handed a special set of knowledge and information regarding our public assets that even full-time city employees are barred from seeing. I called into question the integrity of this entire procurement process. I demanded the immediate release of the now infamous Dr. Hernandez files. I had already sent a formal request on May 5th from my email account, my city email account, to the chief procurement officer's city email account, asking for the sign-in sheet from the original contractor walk-through. Last Friday marked one month of complete silence since that record was logged on the city's servers. G&L Golf was able to request and receive the exact same information in one day via an email request to the chief procurement officer on February 11th. The administration can't say my request was lost. The exact same mechanism worked for Grant. They're withholding a factual... public record because they know that sheet is a smoking gun proving the mandatory procurement blackout period has been completely violated by outside collusion simply assigning a new number like dash 002 does not clean up the the legal tank management made it clear and everyone already knows THE PUSH TO PRIVATIZE THE CITY'S WORKFORCE ISN'T BASED ON BUDGET DEFICIT OR NECESSITY.

SIR, YOU HAVE 20 SECONDS.

THAT'S EXACTLY WHY ON JUNE 1ST AN OPEN MEETINGS ACT LAWSUIT WAS FILED AGAINST OUR CITY IN DISTRICT COURT. THE COURTS ARE NOW TRACKING YOUR CLOSED EXECUTIVE SESSIONS. I PLEADED WITH YOU TO KEEP THIS HONEST AND OPEN AND PUBLIC. NOW THE COURTS ARE DOING IT FOR US. Thank you.

Thank you. Next on the public forum is Grace, and I'm going to let you say your last name, N-A-G-A-M-I-N-E. Grace Nagamini.

Okay, thank you. Good evening, Mayor McDonald, commissioners, city staff, and fellow residents. Tonight, I would like to take a few moments to recognize and thank Dr. Stephanie Hernandez for her service to the city of Alamogordo and our community. It saddens me to see Dr. Hernandez leave her position. As a strong, accomplished, and highly educated Hispanic woman, she has been an important leader and role model. and her contributions have helped shape Alamogordo in a meaningful way. Leadership positions often come with difficult decisions, long hours, and challenges that are not always visible to the public. Yet, throughout her tenure, Dr. Hernandez remained committed to serving our community and helping move Alamogordo forward. One area that I have paid particular attention to is the relationship between the city of Alamogordo and the Holloman Air Force Base. I have watched the partnership that Dr. Hernandez, Mayor Sharon McDonald, and former Mayor Susan Payne helped cultivate and strengthen over the years. That relationship is critically important to our community, our economy, and our future. The recent recognition of the Altis Award for a second time during Dr. Hernandez's tenure in senior leadership speaks volumes. It is not simply an award, it is a reflection of years of cooperation, communication, and collaboration between city leadership and our military partners. I was especially encouraged by Colonel Etheridge's remarks regarding the strength of the partnership and the positive relationship that exists between Holloman and the City of Alamogordo. These accomplishments do not happen by accident. They are the result of people choosing to work together, build trust, and focus on common goals. Dr. Hernandez played an important role in that effort, and I believe that contribution deserves recognition and appreciation. As we look toward the future, my hope is that whatever leadership direction the city chooses, we continue to build upon the foundation that has been established. I hope we remain committed to collaboration, transparency, and strong partnerships with Holloman Air Force Base, local businesses, community organizations, and our residents. Those relationships are essential if we want Elm Gordo to continue growing and thriving. Tonight, I simply want to say thank you. Thank you for your dedication, your professionalism, your leadership, and your service to the people of Alamogordo. Your work has left a positive mark on the community, and I wish you continued success and happiness in your next chapter. God bless you, Dr. Stephanie Hernandez, and thank you for your service.

Next on the public forum is Ryan K. Saylors, and he's going to be talking about the opiates.

Your Honor, can I speak to these people real quick?

No, you cannot.

There's a gentleman on your board that is falling asleep. I have to say he stands up, please.

I'm sorry. You can't do that. You can't do that. No, that's okay.

That's okay.

Sir, can you tell us your name?

Sure. Hi, I'm Ryan Sowers. I'm gonna go to residents and good evening. Mayor, commissioners, everybody here, city staff. I appreciate you giving me the time to speak today. As our community discusses addiction and other social challenges, I would encourage us to think as much about causes as we do about symptoms. Addiction is often discussed as a drug problem, but many people struggling with addiction are also struggling with chronic pain, mental illness, trauma, family instability, poverty, isolation, and lack of opportunity. The same could be said for many other challenges we face. Crime, domestic violence, educational outcomes, health outcomes, and economic outcomes often influence one another. If we want better results, I believe we must continue supporting efforts that address immediate needs while also strengthening underlying conditions that help people succeed in the first place. The strongest communities are not necessarily those with the fewest problems. They are the ones that create opportunities for people to recover, participate, contribute, and build meaningful lives. Thank you for your time.

Thank you. Next on the forum is Pastor Jerry Martinez, and he's going to be speaking on transparency and accountability. You have three minutes, sir.

Thank you, ma'am. I read from Psalm 49, Hear this, all you people, give ear, all you inhabitants of the world, low and high, rich and poor, together. My mouth will speak of wisdom, and the meditation of my heart will be of understanding. Why should I be in awe in the days of anarchy? when the inequity of my heels will compass me about. Those who trust in their wealth and boast of the multitude of their riches, none of them can by any means redeem his brother or give to God a ransom for him. For the redemption of their soul is precious and it ceases forever, that he should stand or should still live forever and not see corruption. First of all, I'd like to say thank you to Mrs. Stephanie Hernandez for the great job that she's done. You're a very qualified lady. You should be the city manager. Against the will of some of those who opposed you, I stand up for you and give you good credit and give you the blessings of the Lord because you've done a great job. And to those who denied her being the city manager, shame on you. Shame on you. To allow a good employee who has done nothing but help this city and help the people. What does that show of you all to make that decision? The people are here. Look at how full this place is now. We are watching every single move. And I know that the mayor and Commissioner Robinson, Commissioner Tapley, I know they're outvoted by all four of you. And you need to stop that. Because we know what's going on. And the corruption ends now. That was the victory that Geraldine Martinez had as sheriff. And I'm telling you right now, the people are voting against corruption. Please, I'm telling you and I'm pleading with you as a man of God, through the word of God, please consider yourselves and don't sell your soul. I say it firmly, but with love. The love of Yeshua. Because I care about this community. And I care about the people. And I know that we can do better. I know we can have harmony. I know we can make this city the best city in New Mexico. And I'll tell you right now, there's people in the state, in Albuquerque, looking down over here, because people have been complaining. There's been complaints. Not just by... People hear, but there's complaints coming from the government itself, state government. So please, I plead with you, do the right thing. And thank you very much for everything that you do.

Thank you. Next on the public forum is Kim, the great white owl, Morrell. And how much extra time do you need? I would like two minutes extra. Okay, all right.

Maybe two minutes extra and a couple seconds to catch my breath. Good evening, Mayor McDonald, esteemed city council, or city commissioners, and my fellow citizens. My name is Kim Great White Owl. I stand tonight to... perform a labor of love because i do love my neighbors and i do hold them accountable to their highest potential and to the law first i wish to publicly praise acting city manager stephanie hernandez dr hernandez you have provided steady brilliant institutional leadership during your period of manufactured chaos i also wish to thank Mayor McDonald, Commissioner Robinson, and Tapley. Thank you for standing on principle, for hearing the people's voice, and for embracing the vision of possibility we voted for. You should be proud of your integrity. However, as we face the departure, of Dr. Hernandez following a controversy for three settlement vote. The lemons of this situation have become clear. I am here to remind this body that transparency is not an option. It's the law. We are aware of the rumors circulating within City Hall that certain commissioners are seeking to insert themselves directly in the daily administration of city services. I am here as a field futurist, a citizen, to read the law back to you. NMSA 3-14-14, the city manager has exclusive administrative authority. Elected officials set policy. They do not manage contracts. They do not supervise staff. They do not run the city like a private kingdom. Those commissioners currently overstepping our Mayor Pro Tem Reardon, Burnett, Hernandez. I speak to you as my neighbor. Your reported micromanagement and harassment have created a toxic environment, leading to resignations of desiccated staff. This is not just a failure of leadership, it's a failure and a breach of our city charter. I am a neuro shaman and Christian. I believe in redemption and second chances. But redemption requires an honest accountability of one's actions. You cannot hide your maneuvering behind executive sessions. The white elephant in the room is the EEOC investigation. The hearing is on June 23rd regarding the violation of the Open Meetings Act. We citizens are watching. We are monitoring every contact, every operational move. If this commission attempts to serve the professional role of the manager, we will resist. We will seek judicial intervention. Mayor McDonald, we support your work on the epidemic opium crisis and the partnership you have with faith-based communities. It is the lemonade we want to build, but we cannot hold a healthy community on the foundation of legal overreach. Please join us in the path of good governance or step aside. We are moving forward to make Alamogordo the gem of the desert, and we will protect our city charter at all costs. I thank you, and I will be turning in my comments and the law that I cited today.

Thank you. Next on our agenda is the City Manager's Report.

Good evening, Mayor, Commission, staff, and members of the public. Get comfortable because I do have a lot to say tonight as this will be my final Commission meeting, and I will explain that shortly. Thank you. First, operationally, I want to talk about the fireworks. I sent a couple of emails explaining that due to an executive order, we are probably going to have to move the city fireworks to city-owned property. The fireworks vendor will be here Friday to help us determine what is the safest and most appropriate location. We are mainly looking for crowd control and safety, and I will keep everyone updated as more information becomes available. Before I get into the rest of my comments, I want to explain something for the public about the difference between the city manager and the assistant city manager. The assistant city manager oversees the administrative and quality life departments, including finance, the city clerk, HR, community development, parks and rec, community service, and community services. The city manager oversees critical services including police, fire, utilities, public works, legal, and the direct communication with the governing body. Citizen concern usually follow that same structure and outside partnerships are either divided between the city manager and assistant city manager or handled jointly depending on the issue. That structure works well when both positions are filled. For the last 21 months, I have been performing both these roles. More recently, I also have taken on portions of the city attorney functions as we are still actively recruiting. With my last day approaching, staff has understandably been concerned, anxious, and uncertain about what July will look like. July is a heavily transactional month for the city. We begin the new fiscal year, close out the prior year, implement the new budget, enter new contracts and requisitions, and move forward with numerous operational items. While I could simply leave on June 30th and allow others to figure that out, I respect my directors, employees, and citizens too much not to do what I can to help create some stability. For that reason, I have made a decision that is well within my authority and does not undermine the future city manager, whether permanent or acting. I have appointed an acting assistant city manager to assist with the transition and help maintain continuity in city operations. After long and careful consideration, I have selected Chief David Kunihiro as Acting Assistant City Manager, and he has graciously accepted. Chief Kunihiro already oversees approximately one-third of city personnel and some of the most challenging departments, not because of staff, but because of the nature of the work. Police, code enforcement, animal control, dispatch, compliance, and timely public safety response. He already handles a large volume of transaction and decision making just below the assistant city manager level. So this transition should be smoother than otherwise would be. Chief Kunihiro is responsible, fair, and reasonable. I have come to appreciate his leadership because he advocates for staff while also holding his people accountable. I have also come to appreciate his presence in moments of tragedy and his grace under pressure. We had a long and direct discussion about what this role entails, and I am grateful that he is willing to step up for the city, the citizens, and his colleagues. Thank you, Chief Cooney Harrell. To clarify though, an acting assistant city manager is not an acting city manager. Upon my departure, Chief Kunihiro appointment as acting assistant city manager does not elevate him to acting city manager role. Those are separate positions with separate authority and separate responsibilities. A person can only hold one acting city role at a time. The city manager decision still needs to be made and that decision can only be made by this commission. As I stated earlier, this is my last commission meeting. However, I will remain in the office through June 30th with the sole objective of transitioning assistant city manager duties to Chief Kunihiro and doing what I can to assist with the continuity. During that transition, I sincerely hope that the constant bypassing of the city manager and going directly to directors stop. I hope Chief Kunihiro is given the ability to oversee the directors assigned to him and be successful. When decisions are made that someone disagrees with, I hope those concerns are discussed professionally and directly, rather than used to build opposition against the city manager or staff. I have now seen this pattern with multiple city managers. Going around the city manager to directors has undermined the position, weakened this organization, and created unnecessary conflict. It was a source of contention for my predecessors, and it has been a source of contention for me as well. If this organization is going to stabilize, this needs to change. I also want to address a few matters that have become public because I believe you should hear them directly from me. First is my very public recruitment. When I assumed the acting city manager role again in September of 2024, I notified the commission shortly after that I had applied for the permanent position. At that time, I also made it very clear that I would respect the commission's decision because I understood that recruitment involves more than qualifications alone. I know it involves timing, organizational direction, and priorities and the judgment. I had my first interview in April of 2025 during that initial recruitment. I interviewed and was later told that I was the highest ranked candidate. Before the second interview could take place, that recruitment was canceled in May of 2025. I was told it was canceled because the process had become tainted. That was difficult to hear, but even then, I remained steadfast in my obligation to this city. I continued to show up, continued to do the work, and continued to perform both roles because the city needed stability and the employees needed direction. Then in January of this year, the situation became even more difficult. I had been doing two jobs for far too long. I had a scheduled interview for the permanent city manager position. I had logged on and waited approximately 20 minutes only to learn that because the other two candidates had withdrawn, the interview was canceled with me rather than the commission choosing to interview me. That was an eye-opener for me, and it was also the turning point. Through all this, I have been patient. I did not push. I did not demand a resolution when many people in my position would have demanded one much earlier. I continued doing both jobs without complaint because the work still had to be done, the city still had to function, and the citizens deserved better. After the January incident, I still showed up and did my job to the best of my ability. After the April 28th decision, when it became official that I would not be the permanent city manager, I showed up again on April 29th, when most would not have. I have continued to show up since then, and I will continue to do so until my last day on June 30th. There may be people who are critical of my performance. There may be people who disagree with some of my decisions. That comes with leadership, and I respect that. But no one can fairly criticize my work ethic. Through the turmoil, the uncertainty, and the public scrutiny and criticism, I continue to show up seven days a week because the job mattered, my employees mattered, and the citizens mattered. I can hold my head up high knowing that even when it was difficult, I did not quit on this city. There has also been discussion about the seven weeks that passed after the March 10th vote without even a hint of contract. That was frustrating for me knowing that the three previous city managers had assigned a contract the same week they were voted in. But it was never only about those seven weeks. It was about the 21 months I had been doing both jobs. To put it plainly, I was tired and approaching burnout. I needed help, direction, or a final decision. I had two possible avenues to negotiate. The traditional route was being delayed, and for seven weeks my hands were tied. I also was advised that the EEOC process could be an effective negotiation avenue. It was explained that I could present what I thought was fair and that the city could accept, reject, or counteroffer, similar to the traditional contract negotiation process. So I did what I have always tried to do in difficult situations. I made a decision. I provided two options that I believe could move this matter forward depending on the direction the commission wanted to take. While the outcome was difficult, I recognize the commission ultimately made a decision I asked them to make. Continuing without a resolution was no longer sustainable for me, for my family, for staff, or for this organization. I may not agree with every part of this process, and I have been honest about that. But I also know that leaving the matter open indefinitely was not an option. Next, I need to address something directly. I'm going to do this publicly while I believe Mr. Edwards is here, the commission, the staff, and the public are present. I have now heard from several people that I have been accused of being a leak to the press, and I'm going to put that to rest now. I have never been someone who needed to be in the spotlight. I have always been content doing my job and allowing others to take the public attention. But for the past seven years, even though I have been a public employee, I have been a wife, a mother, grandma, daughter, and sister first. My priority has always been to protect my family from the ugliness that sometimes comes with this job. When something appears in print or online, I can carry the weight of that because it comes with the job. But unfortunately, it does not stop with me. It affects my supportive but very protective husband. It affects my children. It affects my parents. And it affects my brother. Because of that, I would never, ever willingly place that burden on them and publicly disclose anything about me. I have tried to focus on the positive parts of this journey rather than dwell on the difficult parts of the process. I have tried to highlight the good work of the city, the progress, and the people who continue to show up every single day. So to those of you who have suggested it could be me leaking confidential information, it is not. But what I have done is be honest. If a citizen, employee, or a commissioner has asked me a question and it is something I can answer, I have answered honestly. I have always believed in full transparency to the greatest extent allowed by law, so long as it does not harm city operation, violate confidentiality, or damage the city's position. I am also going to say this. There have been many times when I have logged on to read public comments or heard information in the community and realized that certain individuals or industries knew things that I myself didn't know. At times it appeared that the information may have come from executive session or private discussions. So for those who are quick to cast stones should first consider whether they are living in a glass house. Next, I want to speak about our employees. Our employees work hard. They have very little to gain and they have everything to lose. They are constantly criticized in the public, on social media, and under the microscope of a community of more than 31,000 people. They miss vacations, family events, and sometimes compromise their own health to show up for this city. We are not perfect. We make mistakes, and I admit some decisions could have been handled differently. Hindsight is 20-20. But I hope people remember that when they criticize a city employee, that employee may have given up time with their own family, sacrificed their own health, or their own peace of mind to try and make today a little better for the citizens of Alamogordo. These past seven years have been some of the best years of my professional life. I loved what I did and I loved the impact I was able to have. As simple as it may sound, working for the citizens is truly a gratifying experience. I believe everyone should experience public service in some form, whether through local government, state government, federal service, or the military. It is a humbling experience to wake up each day and do work for others, especially when many of the people you serve may never know your name or fully see the impact of that work. Sometimes you don't even realize the impact until, of course, something difficult plays out in public. Over the past few months, people from different corners of this community have reached out, thanked me, and spoken about the progress they have seen in this city. That has meant more to me than I can fully express. I am grateful for the support I have received in recent months, including from people I have never met. I am grateful for the partnerships the city has built with local agencies, community organizations, and Holloman. Those partnerships are strengthening this community and supporting economic development, and I hope they continue. Through the conversations at the change of command ceremonies, through comments from Holloman families, and through feedback from citizens, I have heard repeatedly that over the past two years, people feel the city has changed for the better. They see more investment. They see progress. They think Alamo is heading in the right direction. That gives me peace. I can leave knowing I did what I could. By God's grace, I believe the city is a little better today than when I started. Not every decision was perfect, but every decision I made was made with the greater good of Alamogordo in mind, not for any specific group, person, or political interest. Finally, I will close with this. The Commission's main priorities should be the budget, the City's future through planning and ordinances, and then the City Manager, in that order. The budget should receive more time and attention because the budget tells the story of where the city is headed. It reflects the priorities of the department, the needs of the community from the department's perspective, and the direction of the organization. It should never be treated as anything less than one of the most important responsibilities and documents of the commission. Without the funding in the appropriate place, nothing else matters. Policy and ordinances should be viewed through the lens of where the city needs to go, not simply what the city has always done. Alamogordo needs to grow. Since the 1990s, Alamogordo has had limited population growth with only about 3,000 net additional residents. The city needs to increase its tax base. It needs clear direction, modernized ordinances, and consistent planning if it is going to meet the needs of the future. And then third of importance is the city manager. That may sound unusual coming from someone who's sitting in that role right now, but analytically, I believe it is true. The city manager's role is straightforward in principle, but difficult in practice. The city manager is responsible for carrying out priorities, policies, ordinances, and the budget all adopted by the commission. When those priorities are unclear, inconsistent, constantly shifting, the city manager becomes a battleground for unresolved policy disagreements. In my view, that is one of the central reasons Alamogordo has experienced so much city manager turnover. The issue is not who sits in the chair. The issue is whether the commission as a whole and not individually behind closed doors has provided clear priorities, a stable policy direction, and the organizational discipline to allow the city manager to execute them. I hope that this commission gives the budget the attention it deserves, update the policies and ordinances with the future in mind and not the past, and then select and support a city manager who is allowed to carry out the direction, including making hard decisions that will unavoidably upset some people or special interest groups. Change is hard, but is vital to the success of El Magordo. And last but not least, some special thank yous. Thank you to my ride or die husband, my children, my parents, and my brother, who have all stood beside me, protected me, encouraged me, and carried me through the hardest parts of this journey. Thank you to former Mayor Payne. Since the loss of Officer Ferguson, you have become one of the people I've counted on the most. Your support, guidance, knowledge, and steady presence have meant so much to me and Cruz. Thank you to Mayor McDonald for her support, her leadership, and strength she has shown during a very difficult season for this organization. And to the members of the commission who worked with me in good faith, supported the work of the organization, and understood the weight of what staff has carried, thank you. To my directors, my managers, and my employees, thank you. You guys have carried this organization through uncertainty, criticism, tragedy, transition, and constant change. You kept showing up. You kept serving. You kept doing the work, often without recognition, and often under pressure most people will never fully understand. I am so proud of you. I am grateful for you. And I will always carry a deep respect for the work that you do for this city. To the citizens and community partners who have supported me, challenged me, and worked alongside me, thank you. The city is stronger because of the people who are willing to stay engaged, build partnerships, and believe in Alamogordo's future. It has been an honor of a lifetime to serve my hometown. Thank you.

Thank you, Acting City Manager Dr. Stephanie Hernandez. Next on the agenda is remarks and inquiries by the City Commission.

I'll bring it up. I had a gentleman... get a hold of me the other day, about 15th and Cuba. It's a property that we have abated and torn down, and we're letting a lot of those properties kind of get overgrown. Somebody did go by and cut the weeds the other day, but he sent me pictures. They just left them laying in the road. all over, so I just thought I'd bring it up, let y'all know. The last time I went by the one on Tejas up there, it was the same thing. It was four or five feet high. The one over on Dewey, same thing. They recently have been cut, but I didn't know what our contract, if we're supposed to pick it up and haul it off, or if we're just supposed to leave it lay or what. But I did tell him I'd let him bring it up. And then where are we at on the LIDA applications? We talked about them, what, two weeks, four weeks ago?

Yes, so I hadn't put them on. I wanted to put them on this week, but I don't think I should put anything on without a lawyer. The applications are still the same. It was just you were requiring the... I think when we received them, the date of that we received them. So I have that information. I met with the state also because they had some questions. They had received some phone calls. And I met with Kevin and Jim. And they provided some names of the third-party review in case you want to go that direction if you want to. If you want to do the applications, the third-party review should probably be used to keep everything kind of out of conflict. I was kind of waiting until we had a city attorney on, even whether it was a contract or not, at the meeting, but I'm unable to get a contracted city attorney for just the commission meetings or for the commission itself, so... If I can get an attorney by the next one, I can bring it forward.

That's fine. I was just asking where we were at.

I have a comment. I'm going to start out with this. Sometimes we have citizens send in something that they would like to have read during public comment, but that is not something that we normally do. And this was just... I guess a comment in passing because people are wanting to know what is happening with the vacancies. And the vacancies that I'm talking about is the city attorney position and the assistant city attorney position. So to answer a lot of the questions that have been coming in from the public, we are in the process. of actively recruiting for the city attorney position. So if you are worried or concerned, that is something that is under the process of our acting city manager, and it will be ongoing. So even after the 30th, if that position is not filled, it is still ongoing.

Mayor McDonald, just a clarification. So the city attorney does not work for the commission. The city attorney worked for the city manager in the city of Alamogoro.

Okay.

Just want to make that clear because there has been some misconceptions on that, that the city attorney does not work for the city commission.

Okay, well, they were not asking for whether it was the city. I mean, if they were working for the city or the commission. They were just asking for if we were in process, and I'm just clarifying that. But the other part is good, too.

All right. During your comment, you said we. And then at the end, you said the city manager, the assistant city manager. It is not we. It's the city manager, the assistant city manager, the HR director.

Okay. So it is the city manager. Okay. So the city manager is actively recruiting the city attorney position and also the assistant city attorney position.

Thank you.

Okay, is there anything else? Because I do have a list of things here. Okay. I actually worked on the election on last week, June 2nd, and this is something that I have done for several years, and it's nice to get out and hear what people are saying. So sometimes you have an opportunity to hear it, like, during an election time or during the candidacy time, but this is really something that I enjoyed, and I get a chance to make new friends each year. I'm going to say we, along with Holloman Air Force Base, welcomes the new 49th Wing Commander, Colonel Michael S. Mullins, amid the historic transition to Air Combat Command with Chief Scott Piper as the incoming command chief. Also, Colonel Etheridge and his wife, Tricia, were on their way out to a new assignment, and Chief Ford will soon retire and wish them well. And I see our former mayor in the back, and we can attribute a lot of the relationships to her and the number of people that she utilized within the city to make this relationship happen. So we are thankful for Colonel Etheridge and his wife, Trish, Chief Ford. The change of command was a really good, great ceremony with full support from the city of Alamogordo. So if anybody was a command representative, they were there on last Thursday. Alamogordo is actually going to be going through a District 5 citywide cleanup, and it's happening on Saturday. July 18th, 2026, from 7 o'clock a.m. to 12 o'clock p.m. We are going to be at the locations here with our dumpsters, Indian Wells and Scenic, 2201 Puerto Rico Avenue, and that's the Senior Center, 817 North Scenic, New Beginnings Church parking lot, Panorama Boulevard next to the Fairfield Inn, Walker Road, the baseball park parking lot, Oregon School 1500 Oregon Avenue. We are also going to have the shredding services from 10 to 12. The forms for volunteering and also to have your property cleaned is online, and so I went in today, and you can fill out the form, and it comes directly to my email address. So we will provide information about the cleanup, And anything you need as far as dumping or getting your yard cleaned off is online. We have the shirts. that we get sponsored almost every year from the Sacramento Mountain Foundation. We have the City of Alamogordo, Alamogordo Parks and Recreation, the Utilities Department, and let me make sure, Amy Tilson, State Farm Agency, Alamogordo Chamber of Commerce. So all of these people are supporting the cleanup, and we're just hoping that everybody will at least try and volunteer. Inside the... the shirt. We have four tickets that we're going to raffle off for the people who are helping that day and it is to the Bart Crowe concert. July 18th is in the afternoon so you can come out with us in the morning and clean up and in the afternoon you can go to the concert. So I think that's all I have today. Did you have something?

I do have something. This is something for young people, which normally doesn't get mentioned in city council meetings. If you have young people from four to seven, the Martin Luther King Commission of the state of New Mexico has partnered with us, and we have 100 slots for kids to be in a leadership and reading event. It will be at Dudley School on the 27th OF JUNE, AND IT'S OPEN TO THE PUBLIC. THERE'S NO CHARGE. THERE WILL BE A FREE LUNCH. IF YOU'RE INTERESTED IN THAT, PLEASE SEE ME AFTER THE MEETING OR, YOU KNOW, LOOK COMMISSIONER ROBINSON UP. MOST OF YOU KNOW WHERE I AM. AND I'LL GIVE YOU THE INFORMATION. I HAVE IT WITH ME TONIGHT, AND I'LL BE GLAD TO PROVIDE THAT TO YOU. BUT IT'S SOMETHING FOR YOUNG PEOPLE 4 TO 7 THAT'S FREE, AND IT'S GOING TO SHOW SOME POSITIVE POINTS OF LEADERSHIP, AND THEY'RE GOING TO GET FREE BOOKS AND PRIZES.

And I forgot to tell you that the shredding is only going to be at the Dudley School location. They will have the truck out front, and from 10 to 12, you can bring all the confidential paperwork that you want shredded to the site. You can sit there and watch your papers be shredded. It will be done with extreme confidentiality. So we welcome you guys to come out, and we hope that you will help make this a great success. This is the first year that we've had all six of the sites open, and we really would like to see people come out and dump their junk. Thank you. Next, we are going to ask for a motion for the consent agenda.

Like item two pulled.

Item two? Yeah.

And I'll make a motion to approve consent agenda item one.

Okay. Do we have a second? Second. So it's been motioned by our Mayor Pro Tem Reardon and second by Commissioner Burnett. And we're ready for the vote. Okay, item number two, consider and act upon Ordinance 1724 for adoption and final publication, an ordinance repealing Chapter 22 subdivision requirements of the Code of Ordinances of the City of Alamogordo, New Mexico, and adopting updated subdivision regulations in Chapter 20, Land Development Code. And we are going to have Shelly DeHannock Barron and also Liz Street from planning of the planner for Bohemond, Houston.

Good evening, Mayor, Mayor Pro Tem, Commissioners. We're here tonight to have the second reading of the subdivision ordinance changes. It is changing, deleting chapter 22 and inputting chapter 20 into the code of ordinances for the city of Alamogordo. I have a few slides. I'm going to try to make this as brief as possible. Liz and I sat down and we examined all of the questions that were raised at the last Commission meeting. We hope we have got answers for some of the questions that were raised, some of the concerns. We also looked into the letter that was provided by Mr. Douglas Nelson with concerns about about the changes to the subdivision ordinance. So let's go for it. So item by item, a question was raised, a concern was raised about a requirement for performance financial guarantee of 110%. And the question was raised, what is the impact of that change in the ordinance to developers and to home buyers. First of all, the performance financial guarantee is not required with every subdivision submission. It is an option that the developer can exercise which will allow him to sell lots prior to infrastructure being constructed within the subdivision. So it's not a requirement for every development. It is an option for a developer to use. What this provision in the ordinance provides is assurance to homeowners that the construction of the infrastructure, the water to their homes, the sewer, the roads, the sidewalks, will be constructed even if the developer decides to not finish the subdivision. For whatever reason, maybe the developer passes away or they just decide to walk away from the job. That the facilities that they need to live in their house like water sewer roads will be constructed And it's the cost of the performance financial guarantee isn't the entire 10% of the development cost it is a It is a premium that the developer pays to get the guarantee from a bonding company. So that ranges usually from 1% to about 3.5% of the 10%. And later on in my presentation, I have a chart that will break that down in terms of what the warranty costs are and the performance financial guarantee. So, again, the warranty bond is a way to protect taxpayers that the developer has constructed the infrastructure according to technical standards and according to the ordinances of the City of Alamogordo. The City of Alamogordo is going to be taking over the infrastructure, so we want to make sure that it's constructed correctly, it's going to have longevity, and, again, just like the performance financial guarantee, the developer... only pays the bond premium. They don't pay the full 10%, so again, it's about 1% to 4% of the 10% amount. A question was raised about costs associated with meetings, presentations for plots and plans to get them submitted and reviewed through the Planning and Zoning Commission. There really is no significant change from the current subdivision ordinance with respect to how much time the developer is going to have to put in, how much cost it is. What we've done in the new ordinance is we've actually separated out different tracks based on the level of development and what they're trying to construct. So if you have a smaller subdivision, You only have to go through a certain process. If it's a more complex subdivision, 30 lots or more, there's going to be more extensive process that they will have to go through. What this does in the new ordinance is separates it out so everyone has a different track and it will expedite process for subdivision developers. There was a question raised about the cost to developers to maintain detention ponds and the logistics in the future of how they actually go about and maintain it. I recommend and along with our city planner that the city does take ownership of those ponds in the future. Logistically it doesn't make a whole lot of sense to go and have every developer for every little development responsible for those ponds in perpetuity. The city already has about six ponds that we maintain and we would just add that to our inventory. We would propose that the city assess an impact fee on those developments for future maintenance of those ponds. The reason for that is someone who owns a house, let's say on Dewey Lane, they will not be benefiting by the ponds being in a brand new development. The people who are benefiting from the ponds are the people who are purchasing homes in the new development. So the people who live on Dewey Lane should not be paying a cost for other people who are getting the benefiting of this infrastructure. So that's the thinking behind that. The new development pays its own costs to serve its own growth, and the cost is not shifted onto existing residents and taxpayers who are not benefiting from the subdivision. As I said, we currently maintain about six ponds in fiscal year 27. It's about $30,000 to $40,000 per pond that we are spending in maintaining those ponds for sediment removal, weed abatement, et cetera. Oh, so here's that table I talked about. You can ignore most of it. The items in blue are changes that... are in the new ordinance that are not in the previous ordinance. Everything else on the left hand column, the current ordinance, there is a corresponding item in the current ordinance where there really is no change. So we are asking for a final plat review fee because if you notice at the top, there is no charge in the proposed ordinance for a new subdivision fee. We currently charge sixty dollars six hundred dollars pardon me for uh... review of a subdivision we are not proposing a fee in the new ordinance that fee will come when the final plat is submitted we will review it to ensure it conforms with the construction plans and that the infrastructure it meets all the technical standards and that's when the fee would be applied the performance financial guarantee again it's a hundred and ten percent of the construction that's proposed, 10% is the amount that is actually bonded on, and that's released upon acceptance. As soon as the city accepts the subdivision, we accept it. Previously, we required a five-year lien on the land. So developers can actually be released from any performance from the city quicker under the new subdivision. The warranty financial guarantee, that is a new fee. And again, the purpose of that financial guarantee is to protect the public, the taxpayers, to ensure that the construction of the infrastructure is according to our standards, our codes, and that it's without defect. The only other thing I would like to point out on this chart is the second line from the bottom. Under the current ordinance we require developers to submit seven copies of plans, which can be costly. Under the new proposed ordinance they only have to submit one copy, plus an electronic copy. A concern was raised about the need for traffic impact analysis and the cost to developers and homeowners. Mr. Nelson had a good point when he said, when have you seen a traffic jam in Alamogordo? So we looked at that very closely, and we agree. We really don't have a whole lot of traffic jams. So we would propose that looking to the future of Alamogordo, that we are going to grow as a city, we are going to develop, that we should have a framework in place to address issues any new traffic impacts that might arise from a development. What we are recommending is that any new subdivision completes a one-page form. It would be a requalification form and a decision would be made at that point whether or not a further traffic impact analysis study would be required. We would be asking them to just tell us how many lots they're developing, what are the egress and ingress points, what is the peak hour traffic that they were estimating would come from the development. A very simple one-page form that would just be a scoping of the development. And then again, the engineer would make a decision about whether or not, if you have between 25 and 100 peak hour traffic vehicles, we would have a focused traffic assessment. The cost for that ranges anywhere from $1,800 to $8,000. If you have a development where you are generating more than 250 peak hour traffic, we would request a comprehensive TIA. And the reason for that is there will be impacts on safety when you're looking at that scale of the development. There will be impacts on our existing infrastructure to have all those additional vehicles on the road. That should be considered and analyzed so that we are protecting our current infrastructure. And if there are additional impacts, that that is a contractual agreement between the city and the developers for the new development. A concern was raised about the need for a 100-year flood drainage study, and that is going to cause additional costs for developers. Currently, we require a 10-year flood study, and we require a 50-year flood study. Our technical standards... which differ from what our current ordinance is, require 100-year flood drainage study. FEMA requires a 100-year flood drainage study. And the new ordinance, the developers only have to do one analysis for a 100-year study instead of two analyses. So it's actually a benefit to them. Okay, here is the table that hopefully explains everything, what the overall estimated financial impact is. How much is it going to cost the developer? How much is it going to add to the cost of a house in Alamogordo? So for instance, if you're looking at the first column, for a $500,000 development, about 12 lots, it's going to add about 500, oh, I didn't even touch that. It's going to add about $500 to the cost of a lot for a homeowner to purchase. If you have a subdivision that's about 2.2 million in infrastructure, that's about 52 houses and the cost per lot increase because of the changes in the ordinances would range from about $462 to about $1,800. So if you're looking at a $300,000 house, that's less than 1% increase in cost. Some of the clarifications to the language in the ordinance from the first publication that we presented, concern was raised about clarifying the need for when the sidewalks will go in. We tightened the language up to say that the ADA ramp should go in when the curb and gutter are constructed and then they have five years to put in the ADA compliant sidewalks. So in the traffic impact analysis, we struck out that section that we had in there previously and added in what I described earlier about when a traffic impact analysis is required. So again, we're gonna start with that one-page form so that the city has an opportunity to review whether there's actually going to be traffic impacts. I am going to assume in about 95% of our developments, we are not going to require further study. Again, we added to the language of the ordinance that a final plat application and fee will be submitted because we are not requiring an upfront subdivision review fee. The detention basins, we changed that, struck out long-term maintenance being the responsibility of the property owner or the developer. We're recommending that the city maintain those ponds after the warranty period and that an impact fee be assessed to help the city pay for the cost of those long-term maintenance. The performance financial guarantee, if we don't have one, no building permit can be issued. If the developer chooses the option of providing a performance financial guarantee, they can go ahead and sell lots prior to all the infrastructure being in place. Again, this is just a little bit of added language to include that. Performance and warranty financial guarantee. We added language to clarify what the purpose of those instruments are. Again, performance financial guarantee to allow the developer to construct lots prior to the infrastructure being installed. It gives the city and the home buyers an assurance that that infrastructure will be constructed even if the developer walks away. The warranty financial guarantee, the purpose of that is to make sure that the contractor, the developer has installed infrastructure that's free of defects and it functions as intended. So I'm happy to answer any questions.

Thank you for all that information. I appreciate it. And I was going to ask if there's anywhere that references where the city reviews the estimated cost of infrastructure improvements for either the technical standards or a part of this document. Do you want to answer that one?

I believe it does address that. It's the engineer's estimated cost. Yeah. Does that help?

Well, we have for the ETJ submission of the estimated cost of infrastructure improvements. And I was just curious because I didn't see that reference anywhere else in the ordinance or the new technical standards that we just recently did. And I was just making sure we had an idea of what that was.

We are still working on the technical standards. They're not complete as of yet, but we will make a note to include the extraterritorial jurisdiction for the construction cost estimates.

The ETJ doesn't come into play other than planning purposes for subdivisions, if I remember correctly.

It's the five miles.

Just for planning purposes only. We used to have the ETJ for the building side of it, but when the department went away in 2008, that kind of went away with it.

The CID now has that?

Yeah, because CID covers all of the city and all of the county. But as far as the ETJ goes, I think we only have authority for planning purposes. So if somebody's going to build a subdivision that's within five miles of the city limits, we just have a seat at the table for the discussion, I believe.

You have concurrent jurisdiction with the county on that for subdivisions or any plotting procedures. But as far as the building side, we don't have any authority on it. Right. And I was just curious if we had a format or who reviews estimated cost of infrastructure improvements. And so that would govern, if you have one just outside city limits, how tie-ins would happen. And so I just... I hadn't seen it yet in the technical standards or the new ordinance, so just wanted to bring that up.

Thank you. We'll look into the language, make sure that's covered, because that's really important. Typically, an impact fee is charged to connect to city infrastructure if you are in the ETJ, so we'll make sure that's stated.

And I'm not sure if it covers it anywhere else for subdivisions within the city, but reference to the infrastructure improvement analysis and who governs that is important I would say it's one of those things I didn't realize until just now but I it's you have different references for different documents of see technical standards to get this done see this chapter get this done and for that estimated cost, I think we just need a little more detail on that and a little bit of planning on who handles that and how it's handled.

Thank you. Are there any more questions?

Do you guys currently have a fee schedule for the detention basins?

In a sense, yes. We have in the current ordinance a section that says the developer shall provide to the city a 3% fee to cover any further improvements or long-term maintenance of the subdivision. So we have taken that out of the new ordinance, but we are proposing that that 3% fee be levied to still provide for that long-term maintenance.

Okay, because in most cases, these detention ponds are not beneficial to the actual subdivision. They're beneficial to the downstream subdivisions because they're to slow the water down coming off of those subdivisions before they get turned over into the other areas. So to basically, I mean, I understand both parts of it. I just, you know, that's... Our canal ditches are everything, all of that part of it is part of our drainage system, and that's part of what this is. It's part of that drainage system to protect the downstream people.

Yes, you are correct. In the instance where there is no development there... The downstream doesn't have an impact from that other than the natural drainage. When you do put in a subdivision that has less permeability with the pavement and the sidewalks, the housing, that changes the whole hydrology of the area. and you will end up with a different runoff from the on-site development. The existing off-site development will still be there, but the on-site development is caused by the development, not by the people downstream. Does that clarify that?

I mean, I understand that I've built plenty of subdivisions. I just, to me, you know, it's kind of a potato-potato situation on these as far as, like, who it's for, and in most cases it's to slow the water down before it gets distributed out to the rest of the system. That's what the detention ponds are made for. They're not made to hold water. They're made to slow it down.

Are you satisfied?

Somewhat. I mean, if it's 3%, that's not too bad, but it's still going to add to the cost of the development and to the cost of each lot.

I think we're saying that part of the responsibility needs to go on the developer when they're creating the infrastructure for that subdivision of where the water's going to go when the stormwater comes and enters into that subdivision. That part of the responsibility needs to be addressed at that point.

Yeah, and I agree with that. Even on a lot that's a certain size, Walmart small Walmart, they had to put a detention pond that they have to maintain because it's on their property. But it was to slow the water down from their parking lot.

Okay.

Okay. Are we ready for the vote?

I would make a motion to table this item.

I'll second that.

Okay. And so it has been moved to be tabled and second by Mayor... Pro Tem Reardon, we're going to put it up for the vote.

Before we do that, can I ask just what the concerns are for the tabling? Why are we going to tabling?

I need some more information.

Just more information.

And we don't currently have any legal counsel. It's nothing.

I'm sorry, Commissioner, could you repeat that?

I said, and we don't currently have legal counsel at the meeting. It's one of the reasons that I seconded the motion.

Okay, so we're going to put it up for vote.

Is this the table, correct? Yes.

Madam Mayor, can I ask a clarifying question? Sure. Is it being tabled to a specific future meeting or just tabled indefinitely?

I would say a future meeting. Not sure which one, but we can put it on for the next meeting.

Okay, thank you. Is it based on having an attorney?

And more information is needed.

Is it the attorney too?

No, mine's for more information.

Okay, so it's just for more information.

Can I ask one thing? Sure. Could you just, like, in the next meeting, just kind of give me an example of the infrastructure maintenance fee, like per se, how much it would be?

How much infrastructure cost is per house?

Yeah, the infrastructure maintenance fee, is that the impact fee that you're referring to? Is that the 3% here?

Yes.

Just give me an example of what that would cover. What that would cover? Yeah, I mean, is it 3% of $1,000 or 3% of $4 million? $4 million.

It's 3% of the installed infrastructure cost, the engineer's estimate of the installed infrastructure cost. Okay.

Yeah, just kind of show me kind of what it would be.

Certainly.

Is that also for the detention basins? Is it based off of?

That would be, yes, that would be to maintain the detention basins.

Based off of the total infrastructure?

Yes, that's correct. And one of my slides I put up is $30,000 to $40,000, about $40,000 per pond per year to maintain detention basins. So, a detention basin.

Thank you.

Okay, so we're going to detain this until the next meeting.

Fable it. Fable it. Yeah, depending on what the vote is, yeah.

And the vote passes six in favor. One, is that an abstention?

It's a no. It's a no?

Okay.

Thank you, Commissioners. Thank you. I appreciate your comments.

Next on the agenda is number three, consider an act upon approval of the loan grant agreement and adoption and final publication of ordinance number 1725, authorizing the execution and delivery of a loan and subsidy agreement in the total amount of $3,083,455 by and between the City of Alamogordo and the New Mexico Finance Authority. Evelyn Huff.

Mayor, Mayor, Pro Tem, Commissioners, so this is a Water Trust Board loan. In September of 2025, we submitted two applications to the Water Trust Board. We submitted the WSRP for Granada Street area, and we also submitted one for the transmission line for the pivots in between the wastewater plant and the airport. We were actually approved for both of them. So this is the first one that is ready to come to you for final approval. So this loan, while it's for the 3.083, of that, 1.233 is loan and 1.85 is grant. So we will only pay debt service on the 1.233. Also, it does have an additional match of $462,520 that would also be required to be spent on the project. With the WSRP, that's very easy. So if you have any questions on the financing, I'll stand for that, and the utilities director is here as well if you have any technical questions on the project.

Do we have any comments? If not?

I'll just make a motion to approve Ordinance 1725.

Do I have a second?

I'll second.

It's been motioned by Mayor Pro Tem Reardon and seconded by Commissioner Hernandez. We're ready for the vote. Okay, it passes 7-0. So you're standing for the next one, too. Number four, discussion and clarification on the natatorium financing. We have Mark Venezuela, managing principal, and then Chris Muirhead from shareholders Mondrell Sperling.

So Mayor, Mayor Pro Tem, Commissioners, at the last meeting we had a discussion on the pool. I believe it was part of Commissioner comments. There was questions about the pool and questions about the financing. After the meeting, then I received additional questions from some of the commissioners about how we went from Bank of Albuquerque, which was named in the motion, to Flagstar Financial, which is who we're actually moving forward with with the financing. So to make sure that everything is very clear, very open, and everybody has a chance to ask their questions in public, we asked Mark Valenzuela and Chris Meerhead to come back and give their presentation on the series of events that came from the meeting where we voted to where we are now close to closing the loan for Flagstar. So, again, I have Mark and Chris here who have a really good presentation that they're going to give you, and then if we have any questions on the financing or on the natatorium, we can answer those.

Thank you.

Good evening, Mayor and Commissioners. Again, for the record, my name is Mark Fonswell. I'm the Managing Principal of Bosque Advisors. We are a financial advisor to the city over looking at your bond program and any debt that is outstanding. I do have a presentation that I provided for the public and also for you if that's available as we're going through this. And I'm excited to be here this evening. I think that the transaction... ultimately came out very nice for the city. It was a nice outcome. It gives the city a lot of flexibility for finalizing the natatorium project. I will say that this transaction will be closing on Thursday, so the city will have funds available to start construction on the natatorium project this week. I don't want to waste everybody's time. I can walk through with hopefully good words. So to remind the commission, we had conducted a mini RFP on behalf of the city to identify potential lenders. We had looked at several different options. And at the time, we'd come back to the commission and mentioned that there were several commercial banks that were providing quite good value to the city for the financing. And at the time, it looked like Bank of Albuquerque was providing the strongest terms to the city. After that meeting and after that motion was made, we went back to those commercial banks to get a firm committed offer, a term sheet that would be closed upon and backed by the commercial banks. Again, Bank of Albuquerque was the strongest at that time. However, we had concerns about whether Bank of Albuquerque would close the transaction. One of the contingencies in the final term sheet from Bank of Albuquerque was that we had to have the FY24 and the FY25 audit completed before we closed. So that was a major hurdle. And forgive me for this comment. This financing with the voter support for this project In my view, and I know this is not very technical or very finance-based, it's a no-brainer. This is not a hard transaction to think through, in my view. And so my concern with needing to have a well-managed city like Alamogordo and have confirmation that those audits had been completed prior to closing was a concern. And so I advised that we start talking to some of the other offerors. And so we got final committed term sheets from those offerors, and that turned out to be, and if we could go to the second page. I've been talking through the second page here. So if we can just go to the next page. Oh, is it me? Sorry. I'll figure this out here. There we go. And so I felt a lot of hesitancy with the Bank of Albuquerque commitment, and so I had advised that we go and talk to Flagstar Bank and Capital One, who were the other offerors. We also talked to the New Mexico Finance Authority, who was also in consideration of The NMFA, I will tell you, did not relax its requirement to have a reserve fund. So the city would have had to borrow an additional $800,000 plus to sit in a reserve account to back the transaction. And the city would have been paying interest costs on that $800,000 for the full length of the term for 10 years. And so given that NMFA did not pull back that requirement, we recommended that the city not do this transaction to the finance authority. So, yes, sir.

Was there a reason that they required that $800,000?

Yes, sir, Mayor and Commissioner. The New Mexico Finance Authority, they generally do a one-size-fits-all financing, and based on a bond rating or the coverage requirements on a loan, they require a reserve fund. And so they, in this case, required one from the city of Alamogordo. Thank you.

And on this one, it wasn't just 10 years. It was 30 years, wasn't it?

So, yes, Mayor, forgive me. On NMFA, they were going to finance this for the full term. So it would have been that length. However, they would have provided a 10-year call option, so the city would have been able to refinance at the end of 10 years. And hopefully, you know, nobody knows what the world would look like in 10 years at the time, but the city could have sought a waiver to get rid of that reserve fund at that time. So having said that, we were left with the three. Again, my hesitancy, which is what I shared with your administrative team about the Bank of Albuquerque following through. We got the other term sheets, and they were quite positive from Flagstar Bank. And for Capital One, Capital One resubmitted the same term sheet that they had provided early on. And it was a 5.27% rate for Capital One. But I'll just point out that Capital One was doing the full 25-year financing. That's a 25-year rate. Bank of Albuquerque was providing you a 7-year rate. And Flagstar was providing you a 10-year rate. So when you look at those interest rates up there, just keep in mind that they are for different times of total financing. So after this conversation, Bosque, we advised the city's administrative team to negotiate with Flagstar and get a committed sheet. And I'm grateful for the intention of your administrative team, Dr. Hernandez and Evelyn and the mayor going forward, and we're very intent on locking down the rate. And so through this conversation, they had a call with Flagstar. And they locked in at a rate. Flagstar was pitching a 4.28% rate for that 10-year financing. Your team pushed back and got to 4.25%. And just a side note, we locked in this rate on a Friday. The following week, rates rose. And had your administrative team not acted as quickly as they did, the rate would have been more like a 4.4, 4.5. And rates have risen, and we've seen that. And so that was, in my view, a very good move to lock that in. Here are the results of the financing, and I'll take you through all of it. So the overview here is just how much money are you borrowing, and where is the money going to go? The total financing came out to $12,110,000. The uses are going to go to about $109,000 for cost of issuance. That's for all the professionals involved. $12 million is going to go to the swimming pool construction project. And then there's a little residual amount that will go back into the city's coffer to pay this debt. And I'm just identifying who all the team members here. Mr. Muirhead sitting right next to me. And again, this is going to close on Thursday. So here's an overview of the payment structure. And if you recall... In my prior presentation, the financing was structured over a 25-year amortization to ensure affordability for the city. Most commercial banks don't like to lend longer than 15 years. So in this case, Flagstar is providing a 10-year financing. And I'll just point out that final payment, that 10%. 12-1-2035, the 10-year payment. That's a balloon payment that represents the other 15 years that you're not seeing on the amortization. So in year 10, the city will be left with $8.51 million to either pay off with cash if they have that cash or to restructure it at that time. And I'm going to talk about the flexibility that that your team was able to negotiate with Flagstar. So the prospect of having to renegotiate, or excuse me, to refinance that becomes much easier under the, again, under the terms that your team negotiated. So that 10-year financing on average is going to cost the city about $780,000 per year. We're also showing you the proposed income what we believe the annual GRT that is dedicated to repay this would be. So it's about $1.1 million. And so we have good coverage. We have coverages in the 1.4 times perspective. That means there's 1.4 times more revenue than there is debt payments. and then you end up with excess cash of $360,000 per year, and after the 10-year period, you'll have $3.5 million. Now, that's the commission's decision on how to spend that additional $350,000 every year, but if you left it in the account, when you are faced with that refinance decision in 10 years, you'll have $3.5 million to help pay down some of that $8.5 remaining debt that's outstanding. So some of the benefits of this 10-year structure, clearly it provides affordability based on the revenue that's available to pay the debt. We have, again, very good coverage here. That's a very good credit quality. I believe that that's why Flagstar provided the financing interest rate that they did provide. You also have certainty. This is a fixed rate for the full 10-year period, 4.25%. That won't change. These payments, the annual payments I showed you before, they will not change. And then also, like I said, you had great coverage in terms of – of how the revenues look relative to the debt payments. The one risk, and we did talk about this at the last meeting, is that you have the 10-year final maturity, and you'll be left with $8.5 million that you would be required to pay off at year 10. That could happen again with cash, if the city has cash available. Most likely when cities do these, they refinance at year 10 and lock into a longer term, maybe additional 15 years or the 10 years or whatever the world looks like at the time, an optimized structure for the city. So I talked about your team. They negotiated some flexibility to deal with that. that 10-year final maturity. And what they got from Flagstar Bank and what Flagstar is offering the city is an early call redemption. And I know we talked a little bit about this and what this would look like. So Flagstar Bank is saying that for the first two years, there's no ability of the city to pay it off if you had the cash or you just wanted to refinance. You have to hold it at least till 2028. And in 2028, if you wanted to pay it off early, refinance, interest rates go down and we have the chance to save the city money, Flagstaff would require a 1.5% premium of any outstanding principal. So we're showing you on the line at 2028 what the outstanding principal would be at that time. So it would be $11.295 million. So the premium is about $169,000 to call that bond and pay it off or restructure early. Again, as your advisor, we would run all the numbers for you and tell you whether that makes sense or not. If interest rates dropped significantly, it could make sense to pay that premium. But again, we'll run all the scenarios for you to let you know. And as I mentioned at the last meeting, we are in an unusual interest rate environment. Interest rates are high, and in the sense of their structure, Short-term interest rates are paying investors higher than long-term interest rates, and that's just not normal. That's an abnormal what we call a yield curve. And so in our view, when the economy normalizes, you will have short-term interest rates dropping pretty significantly and longer-term interest rates going up, and that could provide considerable value for the city in this scenario where you would have to pay off this premium of $169,000. The next year, same amount of premium. It's still 1.5%, but the principal outstanding drops. In 2030, that premium drops to 1%, and then in 2031, it drops to 0.5%. After that, there is no premium. So you're going to have four years of a period of time where it does not cost the city any money. from a premium perspective to redeem the bonds. So it gives you a four-year runway to consider interest rates and what might happen and take advantage of whenever the rates are optimal to refinance. So in our view, the risk of refinance is minimized. It's mitigated in some respects because of this call structure. And again, I just want to point out that your team did a great job in terms of negotiating this with Flagstar. Here's the payoff structure. Bonds pay every six months, and so this is just the chart or the amount of payments that will be made over time. The first one's going to be on December 1st of this year. And then all the fees, we always love to be very transparent about who's participating in the transaction and what the fees that are going to be paid to any professionals. And so here's a list of all the professionals, our firm as well, who are going to be paid. The placement agent was an investment bank that represents Flagstar in the negotiations. And so as part of the term sheet, Flagstar requested that they be included, and then they also included their own bank counsel to work through the documents. And then there's a continuing disclosure fee, and I'll just explain that very quickly. Relative to all the fees, it's very small, but it's very important. With the regulatory world that we live in, The Securities Exchange Commission, they oversee us and they oversee banks and a lot of different of the financial players. And so disclosure to investors is becoming a much more important topic for them. And so what we do, and this is what the placement agent required, was that a review of your investor disclosures over time. They looked at them, and that's the charge for that. That's the $900 charge for that. I will tell you that... The city came across, in my view, with flying colors on those investor disclosures. You've been doing a great job from that perspective. But banks are requiring that any lending have this piece of disclosure and review to make sure that Frankly, they don't get in trouble with their regulator for taking on a loan that they did not sort of kick the tires and do some due diligence on. And with that, Mayor and Commissioners, I'm happy to stand for any questions. I hope that I didn't run through that too quickly, and I provided everything that you needed to make, you know, to be aware of the transaction. I'll also turn it over to Chris if you want to.

Just a couple of quick questions on that. Go ahead, Mark. For the audit, who brought that up initially?

So Bank of Albuquerque had brought that up. In fact, in their initial term sheet, they had pointed that out. And then in the more formal one, they still insisted that it be provided.

And their concern was that we hadn't done the 2024 audit specifically? No.

Mayor and Commissioner, yes, but they also included a 25 audit. In their clause in the term sheet, it said FY24 and 25.

I just wanted to clarify, I think we're looking at a pretty substantial difference in interest over the 10 years. I think we have the seven-year interest cost difference outlined, but The total interest cost is different, and I think we were going with everyone's recommendation for that the last time.

Mayor and Commissioner, that's correct. There's no question that we were aiming at Bank of Albuquerque because of the interest rate that they were proposing. Our concern was, given their insistence on the FY24-25, that they were going to continue to push out closing and formal adoption of that term sheet, which would have exposed the city to higher interest rates. So rates changed since this period of time when they proposed this, and they changed anywhere from 15 to, well, a quarter of a percent to 0.15% in that period of time. So we were showing you what was pitched in that committed term sheet, which was not signed or committed to, really. Until the city formalized an agreement with it, that rate would not be locked.

And we're set to close this new transaction by?

Mayor and Commissioner, by Thursday of this week.

Thank you.

Madam Mayor, Commissioners Chris Muirhead with the Model Sperling Firm. Just to follow up on Mr. Valenzuela's presentation and just hit on the legal part, and I totally understand where the question comes from that I've had conversations with a few of you about. In terms of the motion that was made at the end of April when we were here for the ordinance, was exactly as Mr. Valenzuela said to continue the discussions with Bank of Albuquerque, and that was the preference. The ordinance itself allows for that decision ultimately made by the mayor and the administrative staff, manager and finance director, which is how it played out. And so in this situation, as Mr. Valenzuela did a great job walking through, the statute, which was changed in roughly 2017, 2018 to allow this delegation, really work to the benefit and exactly how it's supposed to here where in the world is up and down and the rates are up and down. to give a little bit of lightness of foot to the city to adjust and to adapt as things happen. Before that change in the statute 10 years ago, the sale of the bonds or the approval of the purchase and the rates had to line up exactly with a city commission meeting or county commission meeting or board of regents meeting, whatever it may be, which created inflexibility and sometimes to the cost of the issuer. So here I can definitively say you are on solid legal ground to close the transaction, and we will give a legal opinion that says exactly that. But I totally am sympathetic to the confusion that may have come because there was the shift post-meeting in terms of the market conditions and the lenders that Mr. Valenzuela discussed. Happy to clarify that further or answer any questions you have about that.

All right.

So would you consider that to have been transparent, not just to the commission, but to the public?

Madam Mayor, Commissioner Hernandez, to me, yes. To me, the situation was a presentation was given. Here are our alternatives. Here's what it looks like, but we have to go back and continue the discussions. That is what happened. We are back to give you the lowdown now. Again, ideally, Bank of Albuquerque, that would have worked out just fine, and your recommendation to continue those discussions would have played out, and those interest rates would have been set, and we would have acted on that. However, the discussion that day of the ordinance, as well as to date it reiterated, was that there was going to be that delegation to the mayor, the finance director, and the city manager to ultimately accept what, at the time of finalization of the terms and signing a term sheet, was viewed as the best transaction for the city based on the recommendation of their financial advisors.

Okay. So when this was brought to us, it was brought to us during a meeting. We weren't made aware of it prior to. So I do not consider it to be transparent. I don't have a problem with the legality of it, and how it works and how it's all been set up. But we've been living in a world of transparency for the last couple of years. I mean, I've always been transparent myself. I don't have anything to hide.

But... Madam Mayor, can we have order, please?

Order, please.

So I just have a concern that, again, I don't have a problem with the legalities of it. I just, the actual transparency was not there, in my opinion, as far as changing, you know, from what was directed Bank of Albuquerque to a different financial institution. So, again, I don't have any problem with the legalities of it. It just, it was not transparent to this commission or the public. Madam.

I'm sorry. We... I'm sorry.

Go ahead. Madam Mayor, thank you. Commissioner Hernandez, I totally understand your position, and I understand the confusion. This is, you know, it is unique in the one way, like I mentioned, the delegation and the ordinance and the statutory authorization worked ideally like it's supposed to, to adjust. But I am totally understanding your position that the motion directed continuation of discussions with Bank of Albuquerque. So I'm not going to debate that with you, but I can assure you that we feel 100% confident that it legally can close.

Okay.

Can I ask how likely is it that lack of completion with the audits will come up again for the city in the future with any other financial or legal issues?

Madam Mayor, Commissioner Patillo, the audits, as we discussed, they're always irrelevant. They are relevant, not irrelevant. They are always relevant into what a lender would look at. And I'll defer to Mr. Valenzuela on this as the financial advisor. But from a legal perspective, it is 100% common and expected that an issuer would provide either audited financial statements if they have them or some other form of financials. And depending on the lender, as we're seeing in this situation where the finance authority or Flagstar were comfortable, Bank of Albuquerque wasn't, it would depend on the lender ultimately what their credit committee is comfortable with. But absolutely, in a credit situation, the financials are always going to be a relevant topic.

I've got a quick question on that. On page 6 of your presentation, and you may have mentioned it and I may have missed it, but you have your 1.5% cost for the early payoff, but I don't see anything for 26 or 27. Are we not allowed to pay off?

That's correct, Mayor and Commissioner. You would be required to maintain the debt through 2028. Yes, sir.

Before we can start that.

Yes, sir.

Any more questions? If not, did you have a?

I do have a couple things I wanted to address. So in terms of the audit, the FY24 audit, I met with the auditors. We meet weekly. And the current goal at this point is to have the exit conference before June 30th. They are in the analytics phase looking at the final analytics FARs. To be fully out there, the Housing Authority is not responding to their request, which will create some additional analytics because they will have to be carved out and opined on separately. So we get the exit conference done before June 30th. That means we can submit the audit probably very early, early part of July. and then we will roll right into the FY25 audit and then right into the FY26 audit. So we are very close to finishing the FY24 audit just as an update. The other update that I wanted to give that usually comes up during this topic and I feel like we've kind of been swimming and giving you guys a bunch of different dates is the estimated timeline for bidding for construction. Community Development Director Shelly and I sat down and really worked out a timeline. So as you received an email from Acting City Manager Hernandez that told you the 100% non-STAT plans are being reviewed on the 10th by Engineer Payne and by Shelly. June 16th, they also have a meeting to review the 100% stamp plans, which are to be delivered on June 12th. We are providing two weeks, so from June 13th to June 26th, for the community development director to review it along with the engineer to oversee them. Advertisement will be July 2nd and July 9th, barring any huge changes in the review. If there is something obviously missing in the review and it has to go back to the designer, that could change that a little bit. Advertisement, July 2nd, July 9th. Mandatory pre-bid would be in the week of July 20th through the 24th. Bid time, we're looking at 60 days from the mandatory pre-bid, which would make the bid opening the week of September 21st through the 25th. Commission approval at this point, we're looking at October 13th meeting, and then the notice of award would go out directly after that. After the notice of award goes out, obviously, then we're talking about bonds, insurance, getting the contract signed, everything like that. So we're expecting most likely breaking ground at the very early part of 2027.

Thank you.

I appreciate your information and volunteering that. And could I ask when the 2025 is set to be completed and the schedule for that?

So they would start it as long as we go. We'd start it in July. Audit itself usually takes three to four months. We've already done a significant amount of the prep work. So we'll be able to go a little bit quicker than we are in a normal audit because the prep work is done. The goal would be to have that submitted by the end of November and then get us into having the 2026 audit submitted. It would be great by February. Earlier would be even better. And then that would get us completely caught up.

Awesome. Thank you.

Are we ready for the vote?

No vote. No vote?

No, just a discussion. So we're good.

Congratulations, Mayor and Commissioners. Thank you.

Thank you. Okay, next on the agenda is consider an act upon appointing a member of the Alamogordo City Commission and appointing a member of the public who is a resident of Alamogordo to the Transportation Master Plan Steering Committee. Shelly, you're already there, so okay. Okay.

Good evening, Mayor, Commissioners. Again, the City of Alamogordo has retained Lee Engineers to conduct a two-year transportation management plan. It will include an assessment of all of our transportation assets, pavement, curb, gutter, sidewalks, signalization, and a long-term plan for the future of transportation and Alamogordo will be addressed in the final report. We are looking to put together a stakeholder group to direct the vision for this study of where Alamogordo was going to go in the future in terms of transportation issues that might affect our community and we are asking the City Commission to appoint a commissioner to stand on the steering committee The City Commission provides the vision and the long-term policy direction for where the City of Alamogordo is going. So we think it's very critical that a member of the City Commission participates in the steering committee and lends their voice to where they think our city should be going. I'm not trying to signal anybody out, but Commissioner Petello, you would be... so ideal for this steering committee because of your background as a land surveyor, your familiarity with the land in and around Alamogordo, and your leadership on the Planning and Zoning Board for the county. So our recommendation is that you be pointed to the steering committee. Additionally, we advertised out to the public to get a member of the general public to give us um the average taxpayers point of view on where they think transportation should be going in alamogordo and we had a single person respond mr pablo a tidy and we're recommending he be appointed as well didn't we and she's the one that would know just left the room but um didn't we have a study done of all the pavement and the roads uh like three or four years ago

I believe we did. Dave may know.

Jimmy Vargas did that study with Dave.

This is essentially going to be studying that same thing, but I think it was about four years ago we did an analysis of every road in Alamogordo and the condition of all the pavement.

You are correct. That was done by the prior public works director, Nancy Veschler. It was conducted by a firm out of El Paso. Honestly, it's pretty much useless.

Why? Why is it useless?

The matrix that were supplied, they're not usable. The data that was very inconclusive, it really shows no roadmap on what we need to get done to, well, to put together a true maintenance plan for our roads.

So you need something updated?

We need something that's comprehensive and complete. That includes safety corridors, that includes, you know, bike lanes, that includes where we need turn lanes, our roadways, our bridges, our asphalt management. I mean, includes everything to also overlay with the matrix that goes with the water master plan. That way we're not going in and fixing a road and then six years later tearing it out to replace the water.

That helps. What did that prior study cost us, and what is this one going to initially cost us?

I can tell you what that prior study cost. I know it was on the lower than $200,000.

Okay, and then what is this current one going to cost us? I know this is just the steering committee portion of it.

I will refer to Mr. Vargas on the cost of that one. What was your question?

What will this study that the steering committee is looking into, what will the study of those roads cost us? Well, yeah, the asphalt, the curb gutter, the study of all of that infrastructure.

Jimmy, can you come up to the podium, please? Thank you.

Madam Mayor and Commissioners, I believe the cost is 3.8 million total. It's a two-year plan. And there's, I think, 10 RSAs, so that would be, they're going to be reviewing 10 service quarters, Indian Wells, different things like that. It's going to also include policy recommendations and staffing recommendations. So it's a pretty comprehensive plan.

And this plan will be in the coming budget, or is it already in the budget?

It's already been budgeted and implemented. Good deal. Thank you.

This study has already been budgeted and implemented? Yes. It will be stretched out over a two-year period to $3.8 million?

Yes. But again, this is a plan that's going to include an extensive amount of data. I mean, this is something that we're going to have inventory on our asphalt a new payment condition index that will be functional for the city to use for planning projects, like Dave said, projects that we can combine with utilities and different things like that. So it's pretty extensive.

The asset inventory that will be undertaken is going to be all implemented into GIS. So that will be an excellent way for us to coordinate with all the other departments, utilities, and so on.

So are we going to move forward on this?

Is this just discussion also?

No, this is considered an act. But this is just to appoint members to that steering committee, correct?

That's correct, yes. So are we in agreement, and are you in agreement with being on the planning committee?

My wife said no more boards, and I'll have to ask her and get back to you.

Of course, you always have to check with the boss.

And if anyone else is up for it, by all means, but I would like to check with her.

You know, they've given serious consideration to this. How many meetings?

See if you can twist her arm. It's one meeting per month, and it's for about two hours. I believe it's going to be every Wednesday at 3, pardon me, 10 in the morning for a two-hour meeting once a month and over a two-year period.

You want to table this item until you ask permission?

I would appreciate that, and I appreciate those kind words. Thank you.

Is that all right with you guys?

Certainly, Commissioner, that's fine.

Like I said, don't let me stand in anyone's way on that.

Has the other person agreed?

Yes, they have agreed, yes.

Can I ask one question? So after the $3.8 million that this is going to cost, What's the, is there a maintenance fee thereafter?

No.

So it's. This will be the total. It's it.

We're not going to come back and, okay. And one other quick question on it. Where is that 3.8 million coming? What fund is it coming out of? Is it coming out of 109?

I believe it's 109. 109? Yes.

Okay. That's just a lot of roads that we could fix with $3.8 million.

I think I gave the amount of roads. Last time it was over 120 miles of roads and 330 miles of sidewalks. So yeah, it's going to be an extensive inventory. Okay.

And is the scope defined somewhere?

Yes, it is. I can provide you with a copy of that.

Thank you. Let's make a motion. We table item five till the next meeting work for you guys. Okay. I second. Commissioner. Okay. I second.

Okay. Mayor Pro Tem Reardon made the motion and Commissioner Hernandez second that we pin this until you get an answer.

Thank you.

Okay, thank you. Item number six, consider and act upon Resolution 2026-19, authorizing a conditional commitment of up to $200,000 in opioid settlement funds for the Alamo City Dream Center project and authorizing the city to serve as physical agent. And on this is myself and Anthony Torres, Pastor Anthony Torres of Mountain View Church. So you can start.

Before we start, I'm going to abstain from this due to the fact that my wife is the bookkeeper for them. Their business does the bookkeeping.

Okay. Okay.

Thank you, Stephen. Madam Mayor, Commissioners, for 10 years, Mountain View Church has done its best to be a church about the community. We do our best to model what Jesus says. When I was hungry, you gave me something to eat. When I was naked, you clothed me. And when I was thirsty, you gave me something to drink. Every year for the past 10 years, when the cold temperatures freeze, We have opened up our church to get those off the streets to provide a warm place to sleep and a warm meal. Sometimes we've been open five days. Sometimes we've been open eight days. It just depends. In the beginning, we saw maybe five to 12 people that would stay. But now we have seen a spike. And that spike we have about, I think last time we opened up, we had about 20 to 35 people staying in the winter. Homelessness has gone up. And most of those that come through our doors are dealing with some kind of substance abuse and mental health. And when they do stay, they sober up. And so we do ask if they want help. I will say the last time we did open up, we had a guy by the name of Slim come off the streets. And he is now in a program and is sober and clean and doing well. Since 2020, Mountain View Church has opened our doors to provide free funeral services to the community, provided with a free meal catered to the family. They do not have to be a member or an attender of Mountain View Church. This has been a service we have provided for those needing it. There have been times Mountain View Church has been on alert to provide emergency shelter for the city, and when the Rio Doce fires happened, our church opened and we provided 329 families, 1,523 people, and 625 people stayed for shelter, and we provided those families and those people food and supplies. In 2015, my wife and I moved to Alamogordo with the purpose and vision to build a church about the community. Since then, our mission has been that church is not who we are, it's what we do. One day, my wife and I will no longer be the pastors of Mountview Church, either to death, retirement, or God moving us to a different task. But our prayer is that all the outreaches that we do yearly will continue. And now we venture on a new project, and that will stay in this town forever, Alamo City Dream Center. With this center, we will continue to provide the services that the city needs for the homeless, and we'll be able to up our services provided with showers, laundry room, and meals, And if a winter storm comes, we will provide overnight shelter and have more room for the people. This will also allow us to do free funeral services with a place that people can meet if we need more room. I do know right now our current Larry's Hall occupancy is probably about 150. And so I know there's been some times we had to tell families we couldn't do the funeral. I'm sorry, we couldn't provide the meal in our area that we do it because they had like 200 to 250 people. This will also allow us to do free funeral services. Oh, I already said that. The Dream Center will also be an emergency shelter in case of crisis or disaster relief in the city. We've had this center, if we had had this center when the fires came, we would have used this space then. This center will be available to the city and the county when needed to meet the needs of the people during a crisis or disaster for room for cots, showers, and a place for people But last but not least, my favorite part, since the Dream Center will have a built-in commercial kitchen, we will have a soup kitchen serving free meal to the community to those Monday through Friday starting at 4 p.m. and ending at 6.30. Today we are coming to the city to seek OPA funding to help start this process or maybe be steered in the right direction for grant writers to help us with this funding. For 10 years, the tithers of Mountain View Church have carried the vision of being everything we have mentioned in this letter. We get to be open to the community when we need to because we have a church that supports what we do and what they believe in. Today, I stand in front of you with my wife, Sasha Torres. and we're asking if you will believe with us. If the county and the city and the great people of Alamogordo are serious about doing something for this town to address the homelessness, the poverty of families not being able to eat during rough times, and even a place the city can come to if needed, this Dream Center, by God's grace, could be built soon and be in full operation serving the people of Alamogordo if we can come together and make this a reality. Thank you for allowing me and my wife. And I want to thank some of my board members for coming today and some of our church family. If we can come together and make this a reality. Thank you for allowing us to share our hearts and the dreams of the people of Alamogordo. Just real quickly, I just want to go over a couple of things. There should be this up here.

No, baby.

It's part of the packet.

Oh, you guys have it? So in front of you, you'll see this is kind of where our property's at. It's across from the church. This is where the building would sit. You can kind of get an idea of what it's going to look on the outside. The other paper that you've got right here is kind of the inside of the Dream Center. So you'll see where they walk in.

Man, let me borrow your readers, please. I'm blind. There's something about my eyeballs. Okay, oh, there we go.

It's like 8K. So if they walk in right here, you'll see that men's showers is to the left, men's to the right. We'll also have a laundry room, an office, a full commercial kitchen. This also will be a place where they can sit and eat. And I think this is 254 seats that we can have. So yeah, that'll be good. And then we'll have a little office there. And then we're going to have like a little kind of like a boardroom there for meetings and things like that. But that is what that outline is going to look like. And so the mission statement is Alamo City Dream Center exists to serve our community by feeding the hungry, offering a safe time shelter with access to showers and laundry, providing emergency crisis to Otero County when needed with relief, restoring dignity, renewing and hope, and to restore every life we serve. So the ownership Alamo City Dream Center will be its own entity operating as a 501c3 structure by a board of directors and enlisted in Mountain View Church as full ownership and overseers of Alamo City Dream Center. And so I kind of just, this is just an estimate of some stuff that I was based on, you know, just kind of looking around and seeing what salaries are going. You know, it's just to have something like this, you have to have someone where they're going to operate, right? Someone that's going to be there on ground. So we have the program director. Program director provides leadership, coordination, and oversight to all Alamo City Dream Center programs and services. The program director supervises staff and volunteers, manages daily operations, maintains compliance and health and safety standards, helps guide outreach, partnership, and program growth within the city. So that will be the program director. Director's job and then we'll you got to have a full-time chef, right? So the chef is responsible for preparing a nutritious safe and high quality meals for guests of the soup kitchen This role includes menu planning food preparation Kitchen organization sanitation and working with staff and volunteers ensure meals are served efficiently and respectfully and so there it has also the key responsibilities and of course, you got to have care workers and right, that are going to be there on site. You know, people come in, need a shower, basically they're there for support. And it lists their duties there. Food cost, again, this is all just estimate, you know, $60,000 yearly, probably could go up. Utilities estimate, $36,000. Again, everything's just estimate. Operating costs, $239,000. Now, these numbers that I'm giving you next, this was given to us by White Sands Construction because we had given them our floor plan. And the building construction budget, about $305 per square foot for a building around 6,500 square feet, looking at about $1.9 million. And so that estimate does include the building from the ground up, along with basic parking lot and typical over-expansion site preparation requirements. Nothing out of the ordinary extreme. It is also assumed basic commercial finishes, which would be controlled and optimized by White Sands Construction during the design process and to help keep the project within the budget and so they kind of list however the estimate does not include the following furniture non-built-in fixtures low voltage communication systems fire alarm systems fire sprinkler systems auto visual systems auto tap fees or meter fees by the city of alamogordo and design and engineering cost we asked white sands constructions to kind of give us a phase phases and what this would look like they were unable to give us dollar amounts with the phases, but they did give us the phases. And phase one would be site due diligence pre-construction. Phase two, site infrastructure and utilities. Phase three, core shell construction. And it lists everything there that you guys have gotten. Phase four, interior build outs. And phase five, final improvements and final amenities. I believe that this will be a seed into where God is going to take this. I mean, you know, we are going to be applying for grants. You know, we are going to be going to a federal level and see what we can do. We know that there's, you know, money out there for stuff like this, you know, something that could be a good asset to the community. And so today I stand here with any questions that you guys might have.

Well, I first want to start off that this started back in January, February, and it was as a result of meeting with the county, Matthew Clark, Emergency Services with the county. Also, we had Amy Barella, who is a county commissioner. She's been involved in there, and we are looking at – she had given us – an amount of money that they would not be able to provide, but they are looking at the ability for the county to enter into this partnership. And hopefully we have tried to identify all of the shelters and availability in the city of Alamogordo, not only in the city but also in the county. And so at this time, we are looking as a partnership, we're looking for a resolution on tonight to secure this funding. And also as a result of this, you would be in turn going to the county to also ask for a resolution with them to give this project, you know some type of credent and we have been informed that loan grant money is available through the state and the federal levels and the opening for applications does not start until late in this year so 26 we will be getting the applications and then the applications will be made and presented to not only the state, but also with the federal level, Senator Heinrich and also Congressman Gabe Vasquez and also Senator Lujan, because they had representatives here and they talked about the money that would be available. And this is some of the things that we talked about. I don't know if Dr. Hernandez has any additional information that you can provide, especially with the opioids and how the money can be used.

So opioid money is very restricted in how we can use it, and this fits the criteria. Opioid money is to remediate the effects of opioids, and so this is one of the uses it could be used for. Everything Mayor McDonald said is accurate, and I think one last thing is, Our grant writer, and I believe, I'm not sure if the Sacramento Foundation grant writer was also going to participate in helping with this. So we are agreeing to be the fiscal agent. What I do want to say is we are not just handing the check over. We are entering into this partnership, giving them the resolution, making sure that the money is available when they are able to complete it. some of these phases. So that's pretty much all I have, unless you have any questions about the opioid or anything else.

And I know you said it, but you're also donating the land, which is across the street, for this structure to go.

Yes, we're going to have our land. Yes, ma'am. Yes.

Are there any questions? So that's everything except for the apartments that are right there to the south?

Correct, sir. We own all that property right there. Yeah. And so, you know, I'm sorry? Up to the apartments, yes, sir.

So it would not include those, or it would?

No, sir.

Okay. So it stops kind of like at that alley, that driveway right there?

Yes, sir, where the gate's at, and that's where it stops. Yeah. Yeah.

I've got a quick question on that.

The $200,000 you'd mentioned would be available once they reach a certain phase. I mean, what goal do they have to reach before the city kicks this money in? Do they have to raise all of the money?

Ideally, this is kind of similar to what the state has. We would like it to be, when we get the money from ICIP or any fund, we have to have a standalone where it's functional by itself, and we're kind of mirroring that same kind of idea. So it definitely needs to be mostly complete, like furniture and all that. That's not necessary for it to be functional. Okay.

Okay. So, I mean, would it be like a turnkey building minus the furniture would be the point when the money would get kicked in?

I believe when it could be inhabitable.

Inhabitable. Okay. And we won't cut a check until that point? Until, yeah. Until they're ready to reach that point. Okay. I just want to clarify that.

So this money is not for building. It's basically for operational purposes.

So the money is for, so if you look at their, did you get their phase? Yeah.

Okay. I'm looking at the phase. I mean, so there's building costs and there's operational costs. What is?

Well, the building itself costs, I believe, is $1.9 million. Correct. And so what our money would be to help get that project off the ground, which would be for the building costs. And then the state and hopefully if the federal will give money and hopefully if the county can give money, that's going to get the building up and running. So we're not giving ongoing money. We're giving money to get this project up and going.

And that is why we named it Alamo City Dream Center, because we want this to be a partnership with the city. For 10 years, we've been doing this. And the only reason why we're able to do this is because of our tithers. They believe in what we do. This would... But not just benefit the city, but even the people that are on the streets, you know. So, yeah, that's why we wanted to have this partnership with the city, with the county, you know, moving forward. That this will be here forever, you know, 10, 15, 20 years from now. It'll be here forever.

I also wanted to clarify one thing. So as the fiscal agents, if they get money through the state or the federal and we're the fiscal agents, we never actually hand over the money. Similar to what we did with COPE, we have to put this out to bid. And I spoke with Pastor Torres. When that happens, we are the city, we have to go by our procurement rules. Similar to what we did with COPE, we have to go through their wage rates and all that. So We're technically not handing over any money. We're becoming the fiscal agent so that most of these nonprofits aren't allowed to take the money on their own. It has to go through a fiscal agent, and that fiscal agent has to agree.

And then did the contractor give you any idea on the missing items, specifically like the fire alarm system, fire sprinkler system, and the low voltage? Did they give you an idea of the cost of that?

Please state your name.

I'm Taylor, and how are you guys doing? Break the ice a little bit here. Yes, I was in contact with White Sands Construction, communicating through email. And no, he did not give me a price on what that would cost if it was included. No numbers were really discussed, being too that it was too early in the project and also for that reason that we did have the understanding that this would go up for business.

Okay. Just so you guys know, that is a significant cost. It's probably 25%, if not more, of your total cost just for those three items. So, I mean, they are very expensive. There's also an operational cost on those three items that you have to maintain every year And if you have a kitchen, you guys know already about the hoods every six months and stuff like that, the additional operational cost on that as well. I do it every day.

Thank you, sir.

And then I'd like to hear Chief Cooney Harris' thoughts on this project as well. They deal with this every day. Sorry to put you on the spot, but...

Do you have a specific question?

Well, just what are your thoughts on this? Hang on. David Cuniero, Chief, Alamogordo Police Department. Sorry. Just your thoughts on this project, and would it help hurt, make your job easier, harder?

I think anywhere that someone and people are willing to provide shelter, meals, warmth, cooling, whatever that looks like, I think it can help keep people off the streets.

Okay.

Any concerns, any? Nothing?

Okay. Yeah, I don't have any concerns. All right.

As a pastor, I also have been putting out of my own pocket money to put people who are homeless during real cold weather, real hot weather or if it's raining. I have a contract set up with three hotel owners here in town. They give me a good rate. And so whenever they're in need of shelter or food, for that matter, I also help as well. So there is a great need for something like this. And I'm glad that the Lord has inspired my brother and my sister here to do this because there are very many people in need. And something like this would be a place that I can't really tell how much longer I'll be able to be doing this because it's getting very, very expensive. I've gotten families from six people to just two people or one person, but they charge, you know, $60 per day. And sometimes they're there two, three weeks. And so I either go out and try to get donations, which God is good, or I put it out of my own pocket. But what I'm saying is this. I think it's a vital thing, and it's an important thing, and it's a visionary thing. And I think God is in this. God's helping this church, and this pastor is a very gifted pastor. And so I ask of you to just... Look at your sign up there. In God we trust. And to allow the Lord to move you guys to help the pastor, to help others. Thank you.

Hi, I'm Wendy Urquidez, and I volunteer at Runner's Refuge, and we feed about 175 people Monday, Tuesday, Thursday, Friday. That's solely on volunteers and donations. But I was blessed to go a couple weeks ago up to Albuquerque with some other people in our community, and we met with nine other counties. And during that time, what we did is we drafted a bill with all the counties together to try to get money for our communities for homelessness, for situations like just assisting people in need, whether it's an emergency situation and such. So we drafted a bill, we're going to be meeting again with the idea that the situation in Albuquerque is different than our situation in Alamogordo, is different than the situation in Las Cruces. Also, we met with the Speaker of the House and he gave us tips on how to write the bill, what they're looking for. with the idea, if we all work together, that that money could be available more than everybody sending in their different bills and the people getting exhausted looking at them. The point I'm trying to make is, if this starts, and bless you for starting this. If this starts, there is money available that can assist. And I think that it would be amazing if you as commissioners and mayor, if you said, yes, we're gonna assist too because it's the people that voted us in, you as mayor and commissioner are the people that you're saving. We got calls, my family and some other people in the communities got calls this last weekend, right when school was out, from families that didn't have any food. And someone said, well, Wendy, don't they know that there's a food bank on this day and this day and this day? And that mother did go to the food bank. She's got four teenage boys. If you've had boys eat, she went on Wednesday, and by Saturday, that food was gone. Our community has needs, and this would be an amazing start for our community.

Are there any other questions?

Just on the total of the opioid settlement funds, do we have an idea on that figure?

That we currently have? We have a little over a million.

And how did we settle on the $200 million?

Honestly, it was just a starting point. Definitely the commission can up it if you choose to. It was a starting point to give them a piece of paper that says the city is in support of this and to help get other funding. So if they fall short and the money is still available, that is absolutely a decision that the commission can make. It was just really a starting point.

So if I understand, it could contribute to the operational costs year after year, provided there are funds.

Provided that there are funds. This is one-time money that we received, and we will be getting smaller settlements. So yes, it's not restricted to capital, and it can be used for operation.

Thank you.

Any other questions? Do we have a motion? So moved. Do we have a second?

I will second. What's your motion? Is it to approve or?

Oh, to approve, sure.

Okay.

Okay. It's been moved by Commissioner Robinson and second by Commissioner Patello. And now we.

Just to clarify, this is to approve Resolution 2026-19, correct?

Yes. We act as the fiscal agent.

And the vote passes 6-0 with one at the end. Thank you guys so much.

Thank you.

Next on the agenda is appointments to boards and committees. and it's on the Parks and Recreation Board, and it's one upcoming vacancy for an applicant who lives in the city due to an expiring term of Linda Gilead on July 23, 2026.

Madam Mayor, can you just hold so they can, I don't think Rachel can hear.

Ladies and gentlemen.

Just give them a minute to get out. I don't care.

And when they're out in the hall, shh, too. Yeah.

No.

No, we can't.

It has to stay open. Are you ready to adjourn?

No, we're not. We're getting ready to.

Go into executive session. Yeah.

Okay. And reconvene.

I think we're good.

Okay. This is one upcoming vacancy for an applicant who lives in the city due to an expiring term of Linda Gilead on July 23rd, 2026. One application from Linda Gilead, if reappointed, this will be her second term. Are there any objections? If not, we will appoint Linda Gilead for a second term. The other vacancies we have is the Airport Advisory Board. There are no current vacancies. Airport Zoning Board. one current vacancy for an applicant who lives within the city limits, one current vacancy for a county-appointed representative for the Alma Gorda Public Library Board, and then on the Senior Volunteer Program Advisory Council, five current vacancies for applicants who live within the city limits. So we have one appointment. At this time, number eight, we're going to motion to recess into executive closed session pursuant to NMSA 1978-10-15-1-H2 for the purpose of discussing limited personnel matters, city manager recruitment, and NMSA 1978-10-15-1-H7 for discussions related subject to the attorney-client privilege pertaining to threatened or pending litigation in which the city is or may become a participant. And at this time, we will ask for a motion. So moved. Do we have a second?

Second.

Okay, so it's been moved by Commissioner Robinson and second by Commissioner Tagley that we will adjourn at recess at 9 o'clock. And the vote passes 7-0.

Motion to recess. Yes. Or to reconvene.

Nine is going to be a motion to reconvene into open session and read the statements related to the executive closed session. And it is 9.55 p.m. We'll make a motion to reconvene. Second. Okay. It's been motioned by Mayor Pro Tem Reardon and second by Commissioner Burnett. And the statement here is for... We've got to take the vote first. Okay. I'm sorry, the vote. It's up in front of me, too.

All right.

And the vote passes 7-0. In the statement for the item discussing limited personnel matters, city manager recruitment, there is no pending action. For the discussion for the attorney-client privilege pertaining to threatened or pending litigation in which the city is or may become a participant is... Dr. Stephanie Hernandez filed a charge of discrimination with the United States Equal Opportunity Commission on January 26, 2026. The parties have successfully resolved all issues raised in the charge. Pursuant to the party's resolution, Dr. Hernandez will be leaving her employment with the city effective June 30, 2026. And at this time, we will ask for a motion to... close or to adjourn.

I'll make a motion to adjourn. Second.

Okay. It's been moved by Mayor Pro Tem Reardon to close the session, and Commissioner Hernandez has seconded. And it passes 7-0. Adjourned.