City Council - Regular Meeting

Thank you, sir. Good evening, everyone. We are now live. Well, I'd like to thank everybody to make it to this regular city council meeting. Um, there's a lot of people out in the audience because we have presentations and awards to give out. Um, would like to start the meeting with the roll call. Councelor Garcia here. Councelor Yazy here. Councelor Piano here. Councelor Molina here. Mayor Gapoli

here. Um, if everybody would join us in the pledge of 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. Our first item of business is a certification for the record of the matters discussed during the close session of January 20th, 2026.

Good evening members of the council, Mr. folks in the audience, the city attorney. I certify that the meeting in question is convened for the purpose of and limited to discussion of matters subject to the attorney client privilege pertaining to threatened or pending litigation in which the city is or may become a participant and the discussion of the city's potential acquisition of real property as in both cases permitted by New Mexico statute 1978 codification section 10-15-1H7 and H8 move on.

Okay. We don't have a motion or nothing for the Coco. All right. So, we now we'd like to take any comments by the public on non-aggenda items. Um if there isn't anybody any comments then we'd like to start with the fun part of the council meeting and that's the presentation of the uh all state honors. You know it's really nice to have all state uh uh volleyball soccer football players in in the Gallup area. Um the the following athletes were selected to the all-state volleyball team by the New Mexico High School Coaches Association for their exceptional abilities in 4A volleyball in Myamara High School is Briana Cecedo. Second team

in 2A volleyball for Rahobath is Khloe Frederickson. First team first team out of state. Come up. You can come on up. Yeah, please. It's all about you. Not us. Uh the next one was a second team. Uh just in front of us. Yes. Um the next one did is Chloe here? Oh yeah. Good. Um the uh this next one from Roick High School is a second team all state setter Shanoa Eddie.

Um these are all the volleyball girls that we have. Um do we want to take a picture with them or that would be a good idea. Are we in order? I hope so. Okay. Brianna. So Brianna's in honor of outstanding

performance say Brianna sorry in honor of outstanding performance and dedication we present Brena Ceedo Myamera High School in recognition or in recognition of your outstanding skills and dedication as a second team all district middle blocker for the Miami High School volleyball team. Your defensive proudness at the net and relentlessness committed to excellence excellence have been vital to the Patriots success and serve as an inspiration to your teammates.

The next volleyball player is Khloe Frederickson. And in honor of outstanding performance and dedication, we present Chloe Frederickson, Rahobath Christian High School High School. In recognition of her exceptional performance as a first team all district middle blocker for Rahobath Christian volleyball team, her defensive agility and powerful presence at the net, combined with her unwaving leadership, have been instrumental in the Lynx's success embodying the highest standards of the program. Last one for the volleyball teams is Shenoa. And in honor of outstanding performance and dedication, we present Shenoa Eddie Jehovith Christian High School recognized as a second team setter. So that's his second team, but was that all district or all state? All second team all state, right? So the other ones were district, right? Is that okay, good? Yes,

just want to make sure I got him right. Shoa's excellent court awareness and competitive drive have been instrumental to the link success. She is dedicated. She is dedicated athlete whose ability to perform under pressure serves as a constant inspiration to her teammates.

Yes. Parents, you're welcome to take pictures. Come down if you want. You can take pictures with them if you want. We never get this many people. All right. Thank you guys.

Thank you so much. Good work, ladies. That's part of it. Two seniors and one. Congratulations, guys.

The girls do have a they want to go watch a basketball game. It's happening out there. So,

Oh, yeah. Yeah, understand. Okay. The um the next set of athletes we have is from the state soccer all state soccer recognition. The following athletes were selected to the all-state soccer teams by the New Mexico High School Coaches Association for their exception exceptional abilities. In 4A girls high school, we have Gabriella Sanchez second to defend from Mamera High School. Iris Day Chief first team And from Mamera High School, Addison Spoer, second team midfielder and District 1 4A player of the year.

Continue with the soccer players. Yeah. Or do you want to do the do the do them all just?

All right. All right. So, we're going to present you with your the with the certifications or the uh the uh certificates certificate of recognition. In honor of outstanding performance and dedication, we present Gabriella Sanchez, Mirara High School student. Gabriela's exceptional reflexes and defensive instincts have earned her a well-deserved spot as a second team defender. She is a standout performer for the Patriots, known for her dedication to the sport and her ability to inspire her teammates through her defensive play. Next one. In in honor of outstanding performance and dedication, we present Iris Day Chief Miam High School. Iris's exceptional shots stopping ability and defensive vision have earned her a well-deserved spot on the allstate first team as selected by the New Mexico High School Coaches Association. As a standout first team goalie, she remains a vital anchor for the Mia Mira's defense and inspiration to her teammates.

And in honor of outstanding performance and dedication, we present Addison Spoer, Mayamera High School. Addison's tactical awareness and versatility have earned her a well-deserved spot as a second team midfielder on the all state soccer team. select selected by the New Mexico High School Coaches Coaches Association. She continues to be a driving force for the Mirror defense and offense alike. and smile. They can't Next is the uh the 3A girls of course. Um the first one is Laurelyn Kea. I see Rudy and dad. Second team goal and the next one is Maryanne Dylister. Second team goal leading. And we might as well give her a voice since It's Rahobath and that's Johnny

Zalistra. 17. I think it was Jason.

Um okay. All right. Thank you so much. The um let me get these in order. um certificate of recognition in honor of the outstanding performance and dedication that we present is that the same Lauren Lauren Kea Rahobitth Christian School recognized by the New Mexico High School's coach coaches association as an allstate second team forward. Lauren has demonstrated exceptional skills and relentless competitive drive. This honor reflects her hard work and consistent ability to deliver the for the links when the game is on the line. A In honor of outstanding performance and dedication, we present Maryanne Zylraith Christian School High School.

Yeah, they as it turns out, your name is different now, so it's fine. The mom and dad are right there. Is that right? Oh, they're back there. It's with a Z, right? Oh, it's a B. So, it is a V. It is a V. Okay. Well, we're going to have to redo your certificate because we put you in the wrong family and listeners. Didn't know about correctly. We made the mistake.

Thanks for Sierra cuz she's always graduating. She she corrected us. Okay. Um, Maryanne has been an a standout protector in the net for the Rahobitth Christian School, earning selection to the all-state soccer team by the New Mexico High School Coaches Association. And as a second team coalie, her quick reflexes and composure under pressure have been vital to her team's defense defensive success this year. And now this is Johnny Zyler. There we go. Thank you. In honor of outstanding performance and dedication we pres and dedicate dedication we present to Johnny Zyler Jehovith Christian High School. Johnny has been an standout has has been a standout presence in the net forth Christian school earning selection of the all state soccer team by the Mexico High School Coaches Association. as a second team goalie. His remarkable shots stopping ability and defensive leadership have been instrumental to the team's success this season. Thank you so much. And in case anybody

Does it say goalie? Oh, it does say goalie. and you'll get your fixed. So, sorry about the errors.

And just so everybody knows, you know, when you're when you're second team all state, there's you're that's like second best in the state, you know, it's you're not like it's it's right up there. First team, second team, then they have it. Was anybody selected for the North South game or do they have a North that's only in football, I guess. No, they do. They got the red ring game now. The red ring game. Okay. But we've already Okay, we got here. Let's shake your hand.

Go ahead and stand pictures. We messed up your certificate, but we'll get it right. I'll get those delivered. Adrian, okay, so I got I got two here that need to be fixed. Wait, did you get

Okay, last but not least is our all state football recognition. Um, this is Jason Bruner, Carnival Mansion receiving

and also Rotary Senior of the Month. Were you Rotary senior of the month, too? Yes. August of the month. Jason Bruner from Gallup High School. In honor of the outstanding performance and dedication, we present this award. Jason's athletic proudness and competitive spirit have earned him a well-deserved honorable mention as an all-state football team. Selected by the New Mexico High School Coaches Association, he stands as a proud representative of the Gallup High School and vital leader for the Bengals.

Awesome. Okay, now that

we She's just a little brother. Bring the bring the coach in.

Thank you.

Hey everybody, thank you so much for coming. wonderful words and we'll look forward to the ones that were juniors to see them next year. Feel free to stay for the whole meeting. You don't you don't have to rush off.

Thank you guys. Sorry, we sorry we forgot which

they all left. our audience.

How are you? Not very good. Thank you.

Okay. Next item on the agenda is going to be for update from Rahobit McKinley Christian Hospital. Um and we have Wayne here to start kind of catch us up to what's going on. We have a PowerPoint.

Yes. I'll get that. Thank you. Go ahead and flip it to the next one. Okay. So, I wanted to kind of give y'all um a yearend summary on what kind of happened in 25. Um so kind of the agenda for today is back to break even. That was one of the things that we've had as a strong initiative for us. Wanted to give you um kind of you know the report on the 22990. Um we unfortunately you know we're behind so we're working towards getting that and then also in in conjunction with the 22991 I'll actually talk about the actual financial performance for 25 our growth philosophy and then really kind of get you a little bit of taste on from the recruitment activity. We've had a lot of good movement related to provider recruitment which of course is the foundation of our ability to care for patients. So next slide please. So for us, one of the biggest challenges, you know, when I started a year ago was we had no days cash on hand, zero. Um, and so that is a big problem. We're at 90 now. Where we want to stay is north of 100. Um, and so that is a target. We're trying to make sure that we consistently do that. Um, we've made a huge amount of progress in a year. So I feel pretty confident in the next few months we'll be over a hundred. why that's so significant for a hospital when we think about personal finance. You know, for us, one of the big indicators towards credit and we had to rebuild our credit, right? Because that had not been managed very well for a number of years. And so being north of 100 is one of those big indicators that kind of bumps your credit up um from a hospital or business standpoint. Um next

slide, please. Um so the 22990 I'll kind of go over in detail. We just filed that um at the end of November. Um and so it's now out for kind of public consumption now. And so I'll kind of give you the highlights on it. Next slide, please. And so when we look at um 22 and kind of looking at revenue and expenses and kind of breaking those out, when we look at the revenue as far as kind of what we actually generated from the care that we delivered, um it was about $56 million. um that year in 22 we ended up receiving um grants of about just under seven million. So that gave us a total revenue of 63 million. When we looked at you know our salaries and then our other kind of grouped expenses we had 29 million or just under 30 million um for salaries and then about 56 million roughly in other expenses and that's contractors that's um you know lights etc. So when we look at total expenses, it was just under um $86 million. So obviously the math doesn't work very well. Um you know, we have significantly more expenses than we had revenue. And so we finished that year with a loss of just under $23 million for 22. Um next slide. So here's kind of a a little cap of something a little more current. Um, so when you look at that, you know, $23 million loss for 22, then we look at kind of where our performance was in 24. Um, we definitely came up and revenue to 68 million, which was a positive move in the right direction. We looked at expenses. We absolutely made a big impact in that. We decreased that by $10 million. And then our overall profit or what we ended up at the end of the day

was a loss of $7 million. Now we fast forward to 25. Um, we significantly bumped up revenue again. But really the biggest thing that really has really impacted us the most is really really controlling expenses. And so when you look at, you know, almost $86 million back in 22 and then we've kind of taken that down to 64 million, but we've increased revenue at the same time. And so it really is about managing, you know, revenue to expense. We still have a lot of work to do in that space to be honest with you. Um, you know, but the other area and I'm going to touch on this is really about growing revenue. Um, we need to think about how we drive clinical care, what that needs to be, how we expand the right resources for our community. And so this year we're going to end up being a little north of $10 million in the black. Um, we haven't been in the black for probably about six years. So it's been a long time. Um, and so I think when we look at our budget for 26, which of course we're in the first month of that, um, we're budgeted to be in the black again this year. And so I feel confident we'll be able to continue to move that along. Really, from my um, focus and lens really, it's it's really about stabilization. And that was really what I needed to do in 25. Now it's really about growth going forward when we look at 26, 27, and 28. And so as we start to look at, you know, growth, it needs to be growth on two from a financial standpoint, but the other really big area is we need to think about how we drive and improve clinical care and how we measure that. Um, and so that's kind of been a big change for us to really look at key performance indicators and measure ourselves not just for statewide, but we we need to measure ourselves nationally. you know, when we're thinking about a a community

that really deserves high care, we've got to really look past where we're doing. When we think about, you know, performance in the state itself, state of New Mexico is behind from a clinical perspective. Um, we don't have any five-star hospitals in the whole entire state and we need to set the bar for that and there's no reason why we can't, but we've got to make sure we focus on the right things, right? It's got to be about the patient. Um, next slide please. So, when we think about our growth philosophy, we're actually fortunate. Um, a lot of critical access hospitals um were not previous PPS hospitals, right? And so, we have actual square footage, which is a huge benefit to us. And so, that allows us to be able to think about what services we need to grow, what makes sense, and how do we expand that. And the other benefit to that is we don't have to go and worry about construction, right? Which is a huge expense.

And so for us really our primary growth lever is really about execution and leadership responsibility. So we have the square footage. When we think about initiatives, it's really about improving access. How do we support provider sustainability? Um and there's there's, you know, a absolute portion of that that we can control locally. There is also a support of that that actually is statewide because when we think about the constraints with mount medical malpractice that is a it is a barrier for us and it is a thing that we have to kind of um contend with if you will um as it relates to us being able to recruit providers from outside the state into our state. Next slide please. So strategy one is really focused on the clinic and the clinic growth. And so when we think about, you know, key objectives, this past year, when we looked at our actual schedules within the actual clinic space, our goal was to be at 90% and we have to kind of stair step this, right? Um, and so this year we've raised that bar to 95%. And so what that means is we want 95% of every single patient slot when we want it filled. We are also looking at is it not only just it's filled but we also need to compensate for the actual no-show rates and so that includes no-shows on top of that. When we think about referral leakage and really variability in schedules and how we owners the ownership and tolerance of unused capacity we've got to make sure we manage that well. Next slide. So on these key levers, we want to make sure that we have faster scheduling turnaround. You know, we're an instant society. You know, for me, I didn't have a cell phone when I was a kid. Um, you know, didn't have the internet when I was a kid. And so now that all has changed, right? And so now people want things immediately. And so they don't really want to use the phone. They don't

want to call for an appointment. They want to go online and do that. And so we're behind in some of those things. So we're trying to put a lot of effort into kind of moving that ahead and kind of modernizing ourselves. so that access is easier. We want to make sure that we're really looking for and trying to be progressive and look at two and four weeks out. We want to make sure that we've got a back fill cancellation list so when we bring new providers on, we actually can get people especially when we have no shows or they've been cancelled. And then when we think about fill rates, days to next available, all those are things are internal constraints that we have to build and make sure that we're holding ourselves accountable and make sure that we have that internal discipline in order for us to really drive excellence. Next slide, please. Um, second strategy is really on the hospital growth side. And so, you know, our our focus is really on those high demand areas. The high reliability service lines. You know, orthopedics, general surgery, urology, opthalmology, and gastronurology are really the ones that we're really trying to grow in this area. And a lot of that is really tied to some of our need, what we transfer out, what we have requests to transfer in, and then where we look at where those needs are being unmet, and then how do we figure out how to meet those. And so for us, it's really going to come, it's not really from expansion, it's really the discipline for us to really execute. Um, next slide. So from a surgical growth standpoint, one big humongous leather is really we have to have skilled O staff. You know, we have a really good group, but as we grow, we're going to need to be recruiting these. And so when we think about Gallup in a lot of rural communities, they don't have we don't have a surplus, you know, of of trained seasoned clinical staff. And so we have to tackle that from a couple of different avenues. One of those is we want to make sure that we have the ability to grow our own. Um that is important, but we have to also make sure we have the expertise in house to be

able to give them a good actual internship program. And the other really is going to make sure that we actually have people that come into our organization and they want to stay. And so longevity, low turnover, right? All those are are big levers to us. We also when we think about it from the patient perspective, we really want to make sure that we are doing a really good job of setting those patient expectations up from the beginning and that that is looks like when we think about the clinic, the hospital, outpatient, inpatient, it needs to be a circle, right? that feels comprehensive to the patient and their family. And so we're really trying to build out that so we can make sure that we don't have things fall through the cracks. Next slide, please. Um medical diagnostic group. So we've had a stress test machine, we've had the ability to do nuclear med. We had the ability to do echo cardiograms. Our biggest limitation was no cardiologist. And so that has been a big gap for us um for a number of years. Um, thank goodness we've had great recruitment. We have two full-time cardiologists. One's starting in March, the other one is starting in April. And so, we'll have full-time cardiology. We have not had that in a long time. So, that's a massive, massive win for us. On the mamography front, we got a new 3D mammo, so we were behind in that technology, and so that we actually replaced at the end of 25. Um there's also a new breast surgeon actually working with the cancer center that's next door to us um that we're partnering on and so we'll be able to do biopsies, breast surgery that we have not been able to offer that locally um in a long time as well. And so that's another enhancement from the women's services standpoint that we'll be able to enhance. Um next slide please. Workforce and recruitment. This is probably our our biggest area I've got a huge amount of focus on because when I think about, you know, physical p capacity, I've got

patient volume. It's making sure that I have the right skilled employees to be able to take care of that patient volume. And so when we think about what we're doing on our recruitment front, you know, we're continuing to look at that. The market's changing pretty dramatically. you know, it's been kind of in this real flux since co, you know, a lot of salaries kind of went up and they never have come down. Um, and in demand in areas like this, when we think about rural America, it's definitely hard to recruit individuals. And so, we've got to kind of make sure that we're being really flexible with part-time, semi-partime, full-time, how we pay them, do you want benefits, do you not want benefits? And we are continuing to kind of expand kind of our bag of tricks, if you will, in order for us to kind of have a wider aperture when we think about what we're trying to recruit and how we can actually pull those people in. Um, next slide. So, last slide is really around physician recruitment. So, I already went over the two cardiologists. Um, we're also going to have telemed. Um, and so tele medicine is going to be an area we're probably going to expand pretty significantly. Um, when we have these two full-time cardiologists, they're going to take a vacation occasionally. I don't want to go without coverage and so we'll have teoc cardiology that'll cover when they're not here. Um, we've got a new orthopedic surgeon that's coming on. We have three new family practice. Um, we're kind of rounding out women's health, not OB, but women's health. And so, we've got um a gyn surgeon and also a nurse practitioner. And then we've got another nurse practitioner that um is kind of we haven't landed her yet. Um behavioral health and psych we have it's a massive need in this area. Um and having a psychiatrist we to add to our nurse practitioner um is going to be a big big plus for us. We've also when we think about behavioral health what we really want to start to look at is can we do

medical managed detox um in the hospital. I think there's a massive need for that and we have two physicians that want to do that because I need that medical management and has to have somebody that's interested in it and so that's kind of something we're trying to figure out what does that look like how do we build that program and then start to figure out how we execute that sometime in 26 um GI you know when we look at gastronurology it's a big need there's not enough GI physicians around the country um so we're going to do that tele medicine we have our general surgeons that actually do endoscopy, but having that GI to help support that is going to further kind of enhance that program. And then endocrinology, when we think about, you know, um patients that we have on dialysis, a lot of those patients, even pre-diialysis, have a lot of diabetes issues, right? And we have a lot of complicated, really newly diagnosed um diabetics that sometimes need pumps, etc. right now that really falls to family practice providers. That's not their specialty, right? They're doing a great job of managing that, but we need to supplement that with endocrinology. And so, we can have a better opportunity of us really trying to kind of tune those patients up a little bit better and then they'll have a lot better long-term um viability if we can keep those disease processes under control. And I think that is my last slide. So, I'll open it up for questions. your questions.

Thank you so much for giving us the update. Um I I think it's really helpful for the community to hear, you know, everything that you've been working on. I think it's great that you're 90 days on cash. I mean, for such a big hospital, I think having over 100 would make sense, but of course, you know, three months on cash is usually a pretty solid. So, I mean, from going from zero, which is actually terrifying. I agree. It's pretty good. Yeah. I was a little terrified when I started.

Yeah. I'm surprised you were like, I'm not sure about this. Yeah. That's terrifying. Yeah. Um, so that's really great. I I'll kind of ask all my questions and if you want to answer them, just throw out. So, what was the biggest way you reduce expenses? Because I I'm a big I'm a big proponent of that, too. Like, there's only so much you can do to increase revenue at certain points. And so, it's good that you did both, but I'm just curious like what was it that you did to reduce expenses? Um, and then I can repeat these two. Sorry, there's four. Is is the ER still contracted out? And I was just curious about the ER. Um, it is still contracted, but it's a totally different group. Okay. And they just started about a month and a half ago. Oh, a month and a half ago.

It's very, very new. Okay, great. I was I had lots of issues in September and it was not great. So, I was not great. I completely agree with you. What you know the the sad thing about some of this stuff Sarah is that you know when you get into some of these contracts especially with these provider groups there's there's nine months out sometimes there's 12 month outs so even though you're trying to manage through that out clause piece it just says what it is right and so it takes a long time for that change to then take place um and they had a ninemonth out and so I I I gave them notice right after I got here probably within two months okay but it just took that long for me to be able to execute on it.

Okay. No, that's really great actually. I mean, well, it's not great for them, but it's good to know cuz I wasn't aware of that and that makes sense that they had to finish their contract. So, new new year new year contract about a month ago. Okay. Y um just some comments. I really like that there's some new people coming in and so my question is kind of like what are also the biggest challenges with recruiting? Um, I will be honest. I um have a new I've been to your one of your new ortho. I have after knee surgery issues and uh he's been great. I go to Dr. Monroe. Shout out to him. Yeah.

He uh probably wishes I would see him less uh because I'm a crazy person. But he told me to stop dancing so much and maybe my knee would stop hurting. So, but uh yeah, funny story. But he's great. He's been great. And I and then I saw when I was there that there's a another orthod. So, I'm really excited about that. I think that's progress and I've myself gone and and it's been good. So I just want to shout out for those new docs. But what is the biggest recruitment issues in general and then like how did you reduce some of these expenses?

Um so I'll start with the expenses. Um you know it's it wasn't it would be great um if it would have been just one big silver bullet. That was not the case. you know, when we when I came into this um to the hospital and started making some assessments, there was um we didn't have a budget. So, that's usually typically a good place to start, right? It's really bad.

Mhm. It was bad. Um and so I'm like, "Okay, I don't even know where we're supposed to be." And so, we we you know, 25, we got a budget thrown together. And so now, of course, we have a whole year and we're, you know, we've made a budget for 26. And so that makes it very difficult for the leaders too that you know kind of report to me because they don't know what they're shooting for, right? You're just kind of shooting in the dark having no idea what the goal is. So I I think if if if you don't, you know, for me, I'm the CEO, but and I look at overall expenses. I'm not in the departments, right? And so I need those leaders to understand where their expenses are, how do they manage that, how do they be good stewards of that, right? And so giving them direction was kind of step one. Um when we looked at how we were using resources, whether it was overtime, balance schedules, and a lot of that wasn't really done well. And so there was a significant amount of savings from the staff resource, not having less staff, just making sure we have the right staff at the right time with the right volume. Um and so that has had a chunk of money. Um, when we also look at how we were teaching our staff because right everything's electronic. We have an EHR. Um, you know, and I'm an old nurse. So I, you know, I'm old ICU nurse and I liked my paper charting to be honest with you. And and so for me, I don't really, you know, I'm not a big fan of the EHR. Thank God I'm not doing that anymore. But but the big challenge is it's very complicated, you know, and you have to document the right things because they drive charges in the background which then, you know, drives revenue. And so we really weren't doing a great job of orienting people and and teaching them what the actual workflows were so they could document it consistently and we would actually have consistent outcomes related to revenue.

And so so that was another big opportunity. Um, probably the the probably the I don't know, probably the fifth or sixth one was as it relates to how we look at managing our schedule on the clinic side. Um, and making sure that we have appointments and they're filled and we're being, you know, assertive about that. We had lots and lots and lots of holes. We had all this access need in the community. We had demand. We were not managing that demand well. And so that was leaving a ton of money on the table um that we had the resources, we had the providers, but we didn't fill the slots. And so in general, I think there has been a um a probably a movement to us to try to bring some things into a little more progressive state. And we had some people that have never worked anywhere but here,

which is not a bad thing necessarily I if if what you have is best-in-class, but right when you're trying to get to best-in-class and you don't know what best-in-class is, that that takes time. Yeah. Right. And we're still on that journey, right? We're we we've made a lot of progress obviously in the financial end, but we still have a ton of progress when we think about how do we manage the hospital, the clinic from an operational excellence. We got a we got a quite a ways to go to get there because there's a lot of little pieces,

right? There's a lot of broken processes and we have to figure those things out and then we have to figure out how to mend them because it's not simple. If I make a decision here, I don't know if it breaks something upstream or downstream, right? because it's all connected and so it's not a simple thing anymore as it used to be before. Okay. No, that's really helpful. It sounds like generally you've become a lot more efficient. We have made a lot of progress in that space. Yes, we have still a long way to go, but yes, we have made a lot of progress. Absolutely. Awesome. Thanks. Yes, sir. Uh Wayne, appreciate everything you've done for this community.

Oh, thank you. Not just the hospital, it's the whole community that you've helped out. Uh my hats off to Bill Patton. Is Bill still involved in any way? No. No. He's actually doing a um he probably he probably his last day was January of 25. So it's been it's been a year. We've come a long way as everybody knows. We have band together with the county. We loan the hospital some money, chunk of change. And it was like my second month on council that they hit us up with this. It was it was the dire straits when this was taking place. Uh but my hats off to you for doing everything you've done.

Now Santa Fe is trying to help in a capacity with our trial lawyer situation. And I say that with a bad taste in my mouth. Yeah. Uh it's it's a bad deal for Gallup and all small communities and and even the city of Albuquerquey's suffering over this thing. So you mentioned something about doing something proactive for doctor's recruitment. Tell us more about that.

I I where we've done I I can't touch that area, right? Because I have no influence. Um what what is a big you know even though there are many many many people that choose to stick their head in the sand that you know malpractice and all the issues that we have in the state are not causing physicians to leave and not come here. It is absolutely fact. Um I'm living it. Um I'm living it when I recruit. So I it comes up over and over again on the recruitment side where we've tried to be really really conscious of and just open it up to be real flexible. We have you know probably half of our physician workforce does not live here. Um and and I you know that's kind of new to me right where I've always had you know the other parts of the country that I've worked in other states that hasn't really been a barrier but but here we are a small town right and and so when you think about physicians and their spouses it's usually the spouse that is the barrier um you know they have want certain amenities right and we don't necessarily have all those things I happen to like a small town and my wife does too Right. But that's not everybody. And so for us, you know, a lot of that full-time is we'll have somebody come in and do two weeks on, two weeks off. They'll fly in, they'll do their time, they'll fly out. I've got, you know, a couple of physicians have been doing that for years. And so we're continuing to expand that and make sure as we recruiting that we're offering a lot of different options from a scheduling standpoint that it's not you have to sign up and be full-time and move here and buy a house and blah blah blah. Um because that would severely limit our ability to recruit. Um you know the other thing we're doing a lot of advocacy work towards malpractice. I know for us we paid about $1.8 8 million

for malpractice insurance last year. It's $3 million this year. Our coverage last year was 14 million. Our coverage this year is 6 million. Jeez. Wow. And so we pay $3 million for $6 million worth of coverage. And so if we get a lawsuit

and it's $40 $50 million, we get six men covered and then we have to cover the rest. It it'll close us. It's the reality. It has. And it And I'm not the only one. There's 11 critical access hospitals in the state and they're all going to be faced with exactly the same thing. It's real. Um and you've got, you know, with the attractiveness of New Mexico because it is very very attractive um for somebody to come in and make a lot of money. Um that puts us at risk because there are more claims per capita that happen here because of the robust nature of that. And so it just it doesn't put us in a great position. Um but we do have House Bill 99 that's going um and it's in legislative sessions this, you know, this month. And so I'm hoping that they make some some progress with that. Um because that will have a big big impact on kind of how we need to at least plan and and set ourselves up. I don't know what our malpractice will be, you know, next year. We actually entertained OB, you know, and thought about that because we were getting a lot of requests from it. We cannot get an insurance claim. They will not write us a malpractice insurance um for if we have OB. So, even if we wanted to do it, we can't do it from a malpractice standpoint because it's just too ligious. And when you think about where do you have some of the biggest lawsuits, it's in perinatal care. Um, and so it just is what it is. that is not in the best interest of the community, right? When we think about that because there's such a big distance that women are having to drive to deliver, but we're kind of in a rock and a hard place until some of that changes.

Well, I'd like to pass something else on to you. When you do see these doctors that are helping us out, you can tell them, counselor Molina, thanks them. Thank you for so much gratitude for these guys for doing what they're doing for our community. Yeah, it's very it's it's very important. Yeah, we have some dedicated providers here and we're very fortunate. I completely I think they all should be thanked and congratulated for I will do that. Thank you, sir. I appreciate that. Absolutely. Any other questions? Yeah. Thank you, Mr. Mayor.

Um Mr. Gillis, nice to meet you. Yes, ma'am. Being new on the council, I wasn't here in the seat when you last came, but I was watching you online. Um, and I just want to commend you for your good work as well. Thanks. I had a question a little just two kind of smaller questions. Everybody else mostly asked what I had in mind, but um, is there a great need for market rate rental housing help you with that?

Yeah. Yeah. Just there. Do you know what I think one of the things is there's not enough inventory. you know, that's it's one of the things that as soon as we feel like that we're going to have somebody that's that's going to move here um and that we're kind of close to landing that that's one of we're trying to already kind of start to coordinate that stuff to see if we can get what what's out there and what's available because there it's just it's rather limited. That's one of the reasons that people would get there and then decide not to come.

That's true. We have had barriers like we had one leader that we and at whatever time there was like we had no in the middle kind of um as far as inventory it was really really low or really really high and it wasn't in a range that she and her husband could afford and so we kind of lost that. It's only happened once but it did happen in the last six months. Okay. Thank you.

Yes ma'am. And then also just um since I'm not super u well-versed with hospital financing um once you have as you become more financially stable is there an opportunity to maybe pass that along to the consumer, right? That for people who are having financial difficulties or people who are requesting financial aid. Um, is there a way to maybe provide more support for the people who need the financial assistance with their hospital?

We do about $2 million a year right now in indigent care for a hospital our size. That's a lot. Um, that is do we want to continue to grow some of those things? Absolutely. I think some of the resources that we'd want to put in there is really how do we keep people out of the hospital? how do we get them on better paths of health, right? And so when we think about how we're managing that on the clinic setting and then outside of that clinic setting is really where we need to, you know, help them be better. Um, and then get them the resources that they need. Um, that is an area that I think a lot of, you know, even big communities, people get lost, right? they kind of fall through the cracks and you know part of it we have to help them give them the resources but we also have to teach them right so how they can make better choices um and so it's it's a little more it's comprehensive it's not just that we want to make sure they get the right care when they come into our ED because if they don't have the ability to pay they don't pay um anybody is going to have the ability to do that but it's really a more about you know you can just have repeats right of them just coming back in and coming back in. We need to figure out how do we actually get them to where we can actually get them healthier. Um so that when we think about what they need to use from a health care resource standpoint, we're actually starting to manage that in a better way. And so it really kind of it helps that patient and the community improve and the health go up, but it also helps us manage actual cost, you know, when we look at health overall.

Absolutely. Understood. Yeah. I would just ask you to kind of keep that piece in mind that we do have a large low income population that may get stuck with that bill and not so I appreciate you guys um systems that you do provide for that. Yes, ma'am. Absolutely. Wayne, I just have a couple questions. Yes, sir. Of your budget, how much are you dependent on Medicare, Medicaid? Um it's about 70 70%. And what do you what's the outlook? I'm not worried. Okay.

Yeah. But because we when we when we think about you know everybody's was kind of you know having a little bit of coronary I think with all the stuff federally you need to you have to distill that down you know even when you start to look at that population for us when we look at anybody that's on Medicaid if they're Native American they don't even they don't even have to do the work requirement and so we started carving out then it's not females it's only males that are able-bodied you start carving that out it becomes a very small slice. Um, when we think about Medicaid reimbursement here in this state that is it's it's significantly higher than it is in when I was in Montana or when I was in North Carolina. Our Medicaid rates are good. So, if we can't manage that, we need to manage our resources and our expenses, right? Um, then we we got a bigger problem.

Appreciate it. Um and then your hospital board, how are their priorities being managed? Are you uh or you just have your relation with them? And I have a good relationship with the board. So I think the board is excellent. Is there any special priorities that they're looking for?

We're actually one of the big things that we're kind of working on and we again we didn't have a budget in 24. We just got one in 25. We also didn't have a strategic plan. And so we, you know, part of our community health assess needs assessment was kind of step one. um we've got that back and so now between now and June we're going to be going through interviews in certain populations um and that is going to also kind of further help us drive what those strategies need to be um but I should come out in June with a three-year strategic plan so that we actually can start then that'll be updated every single year you know even though you have it set out you know it starts to move and things change priorities change right and so you have to make sure you kind of have to touch it every year to make sure it stays current.

Hey, anything else? Anybody? Well, thank you so much, sir. My pleasure. See you in six months. Yes, sir. Great. Thanks.

Okay. Um, next item is the information presentation and this is going to be from Terry Parker summary stuff. If you're interested, it's really cool and I'm happy that you are. And I am Tammy Parker. I am within community development and I work on housing uh specifically trying to bring more housing to Gallup. It was interesting to hear all that going on at the hospital and I know I've heard that before. So definitely relates to the housing situation and on both ends of the scale for the doctors and for the folks that are coming in without money that need housing even any housing at all any waste. uh in 2022 that this council declared a housing emergency in Gallup and we have few more homes now than we had then. So what is this about? Our current way of building cities is a financial Ponzi scheme. It creates more liability than it creates wealth. Click. Today I'm going to discuss the strong towns movement which is all about making communities that are more financially resilient. That's their main goal. For decades we've built orderly but dumb cities. Um vast urban expansions that look like growth but in reality actually are debt. Um we have more roads and more pipes than we have tax bases to maintain. We need to shift from this fragile top- down model to an approach that's more bottom up and provides real wealth. Click uh the big postw World War II housing

boom um in America kicked off right after World War II. We had uh 1945 Levittown in in Long Island City. Something when I studied landscape architecture that was a huge thing. It was it really created the the impulse for people to move from the city out to the suburbs and produced affordable homes for returning veterans and their families fueled by governmentbacked VA lo VA loans and FHA insurance. And it led to a huge suburbaniza suburb suburbanization shift from the cities out to the the more rural areas. Um, we have a systemic conflict with between shelter and investments. We're stuck in this housing trap. We need homes to be affordable shelter. But our economy depends on home prices always rising, which is investment. This makes housing an unproductive financial asset rather than a place to live. To escape, we must prioritize housing as a platform for human life over its role as a speculative investment. Strong Towns argues that we must break this cycle by treating housing as shelter first. Next slide, please. Stuck. Uh oh. love technology. It was going to make our lives so much easier. You remember that? It was going to be paperless and we were going to have flying cars. All right. Well, I can send you all the slideshow and I I'll just kind of go on here and try and sum it up. Um the

trickle versus the fire hose concept. Neighborhoods need a middle ground between stagnation and demolition. Currently, neighborhoods stay either frozen for 50 years, which is the trickle, sort of like what Gallup has seen a lot of, or get leveled out for massive apartment complexes, which is the firehouse. Strong towns advocates for the middle advocates for the middle ground, constant small-cale evolution that keeps a neighborhood alive without destroying its character. I think it's interesting that we've got that going on in the city right now. It's it's really easy to see how you make a big change and everybody kind of freaks out. Um, so incremental growth is the is the next principle and it's an evolution by right guided by safety. Every property should be allowed to evolve to the next level of intensity by right provided it meets rigorous life sta life safety and building standards. This means that a house can naturally become a duplex. No neighbor neighborhood should be exempt from change, but no neighborhood should bear the full brunt for the radical change. Oh, yay. We have slides back. Okay, thank you. If you have a single family home, you should be able to create a duplex. If you have a duplex, you should be able to turn it into a small apartment. This allows the city to grow organically like a forest as opposed to being built like mechanically like a machine. Quick principle two is legalizing the missing middle. Smallcale density is naturally more affordable. We must legalize the missing middle. Duplexes, accessory dwelling units, and cottage courts. These types are naturally affordable because they use land more efficiently and can be built by local contractors. zoning that forbids anything except a single family home is a primary driver of a house our the federal housing

shortage. Next slide please. I've talked a lot about this missing middle um was actually had it mentioned by the gentleman before me. These are the duplexes, the forplexes, cottage courts, accessory dwelling units. Um not apartment buildings but things in between a single family home and an apartment building. These types of houses are naturally more affordable because they use land more efficiently. They aren't expensive to build and they don't require massive parking garages. They fit the scale of our existing neighborhoods. Our current zoning codes make these illegal in many places. We need to make them default setting once again. Next, dense old neighborhoods pay for the in infrastructure of the new spread out ones. Value per acre maps prove that dense traditional downtowns are the cash cows of a city while low density sprawl is a net loss. We must stop subsidizing growth on the edge and start investing in infill building on land that we've already serviced with infrastructure. And we have a lot of those. If you look around town, it's easy to see we have a lot of places to put a house or two. Next. So, we need to simplify the rules for the smaller players. We need to make it easy for normal people to build. That means that a 24-hour permit turnaround for simple projects and abolishing parking mandates. If the rules only allow big corporations to build, we will only get big, expensive projects. And any of you who have been involved in like our attempts to try and make Lowe's into a big this over here into a big apartment thing, that's that's hard to do. Next, the current regulatory system is a moat that only big developers can typically class. If it takes a year and $30,000 in

legal fees for a permit to get a apartment building, only a giant corporation will do it. We need to lower the bar. 24-hour permit turnarounds for small projects. you can actually make those pre-approved plans that are set. If you use it in these plans, you're already going. Um, crucially, abolish parking mandates. Let people build homes for people and not worry about cars so much. We need to get roofs overheads before we get parking spaces. Next, local wealth needs to stay local. That's one of the most important things we can do. A resilience resilient city is built by 100 people each building one unit, not one developer that builds 100 units. Empowering local incremental development ensures that the wealth created by that housing stays in the neighborhood rather than being exported to Wall Street. Strong Towns wants to empower the small developer. This is your neighbor who wants to renovate a garage into an apartment. When we have hundreds of people making small investments, the city becomes more resilient. The wealth stays in the community. If one big developer goes bust, the city fails. If one small developer stops, the neighborhood barely notices. We need a swarm of small-scale builders. Next, these small tweaks equal big results. In cities like Norman, Oklahoma and South Bend, Indiana, they found that success came not through big spending, but by removing red tape. Just small edits to their planning and zoning made the differences. Simple acupuncture tweaks to the code allow a surge of local construction that had been blocked by for decades. Next.

All right. So, we need to identify the struggles and take that smallest step. Housing crisis won't be solved by one master plan. We have a lot of plans and they're not getting us where we need to go. It's solved by identifying where people are struggling right now. Finding the smallest thing we can do to help and then repeating that process. A strong town is a garden to be nurtured, not a machine to be built. And I stand for questions. That was a good presentation, man. Thank you. You got some work involved in this little bit. I agreed with a lot of what you just said.

Glad to hear it.

I'm here to back that up. Frank, I we've been working on a few of these things already. It is. It's the Strong Towns is an organization that they do housing, but they do all these other things, too, that are really neat. And I've given everybody links and stuff to get you there. And if you want a a computer link, I'll send you that. Just let me know. Um, they have a lot of great ideas and a great assets to help get you going. And it is, you know, it's really hard to make these big things happen. And when you do run into people, they're going, I don't want that next door to me. I don't want that in my backyard. And you know, it's it's hard to say. If somebody were to build a three-story apartment building next to me, I would probably not be thrilled. Um, but we do need housing. That basically means one person can't solve the whole problem. One organization can't solve it all. One contractor.

Good job. We're on the right track. I know it. I hope so. Thank you. Anyone else? Yeah. Oh, thank you, Tammy. I don't have any questions at this time. Thanks. Yeah, thank you so much. Oh, you sat down already. It's fine. Sit. It's fine. It's like where she go. Cool. Um, no, I just, you know, I just have some com. I think this is really helpful. I

I think for me it's like I'm going to be honest. It's a process of how do we we get to this point, right? Because I think that we say things like we need housing and then like you said we don't we h we we don't have a lot more housing but then when I've talked to people that have built housing and people here have just built some housing in our town and it it was somewhat cumbersome but they did develop and and provided housing but um I think that a lot of people tell me like the big construction people say like there's just it's expensive and there they have to make a profit at some point right I mean they have to sell it for so much and then people can afford that. So then the question becomes how do how do they how does it become affordable with building costs for them to build but also still provide housing for the average person right I mean I don't and I don't know the answer to that I totally agree that we should look at

um code enforcement things and removing parking minim minimums and what are some some requirements are state and not city but some are city and if we can if we can change some of that that it really doesn't make a big difference I do think we have some policy changes that we can make locally that we should be looking at for building. I I for sure think that um my understanding is that we do have a 24-hour permit turnaround for small projects. Although I hear people say that doesn't happen, but then I hear but we do have that. So I think there's also some communication error of what that looks like, you know, and and what we're what we're communicating. I also think just to your last point is we should have more public comment from communities when we're trying to work on projects like this on like what is the need what are people looking for um what you know what can they afford um because I think you're absolutely right that yes do we need housing yes I think we all agree and then um we've had housing things come um we've had something recently and people do are not happy about it and they don't want it I remember when we approved housing hasn't started, but in the area from the old I think it's the Casey Hall down from Casey Hall, right? And there's that whole section. Um, we voted yes because we felt like we need housing. And I remember being really distraught about that because it's in my district and people were really not happy and asked me don't don't approve this because we don't want, you know, lowinccome or affordable housing across from nicer homes. And it was like, I get that, but this is an empty lot that someone owns and they're allowed to build housing. And and I think also low-income project 8 housing is different from affordable housing. So we also just have to have an understanding to the community of what housing looks like. And I think that's challenging for the city. I'm not saying we shouldn't do it, but because people say housing all the time, but then it's that whole but not in my backyard. We need apartments, but not in my backyard. We need this. We need these affordable

housing, but not next door to me. Well, we can't have it both ways. We either need housing or we don't. And I that just makes it very complicated for the council, for the city because we were we can't have the housing we want and then and then make everybody happy. That's never going to happen. So I think as a council we have to be strong and really look at where the housing is available and how we can help because I do believe that housing is a basic necessity that people deserve whether that's a apartment, a house, whatever. So, I just I think we as a council need to talk about more of how we get there and how we make those decisions and and what is holding us up from construction. Is that is that our coding? Is that our zoning process? Is that our code for I mean, what is that? You know, and yeah, maybe maybe you could input on that. I mean, I don't really know, right? But I do hear these things from people when they say because it's just not a magic person that comes in and builds a bunch of houses. It's a it's a real person or a real company that has to spend real money to do that. So that's the other thing.

Keegan Kenda, city project manager. I just want to add one concept. The purpose of Tammy doing this presentation is to expose you to different initiatives, concepts, ideas around housing. Not particularly to jump on one at this point. The goal is for every month for her to do a presentation and for like this was um strong towns which is about really doing infill housing um really talking about activating your local contractors to do one or two houses versus looking for the big developer. So the goal is to expose you all to some more housing strategies and then we're hoping that after you know we pull in enough ideas we can use you know what the council and the city manager and the mayor wants as a direction for an overall housing plan like a strategy. So the goal for tonight is to expose you to this concept of small towns and not think that this is the answer. This is just exposure and information at this point to build an overall strategy for our community and and the thing about small towns is really looking at the focus of infill housing and looking for the smaller builder strong

town. Sorry. You know, thank you so much. And and one of the things that we've implemented in the past and which I'd like to see the council do you see standing up?

Yeah. you know, is uh there's a lot of infill, you know, places of infill that don't have water, sewer, or curbon, gutter, and sidewalk or even sometimes even streets. And it might be 250 foot, it might be 100 ft. And in the past, the city has provided the materials. Now, this particular lot is one that's been paying uh property tax for 30 years. Um, you know, and one of the things that we that I'd like to propose or see if we can get working on is how we can get the city to pay at least for the material for the infill to fill it. It would have to be a limited footage, you know, 450 or something like that, maybe 300 ft.

Um, but at least this because help help the developer get the infield done because if we don't, I think we're just going to end up in the same position right now we are with a lot of properties that could be developed, but they don't have the infrastructure to develop. And if the if if the developer is willing to do that, then we can uh we can the city can provide the material. Now, that doesn't mean they're not going to install it. They're not going to dig the trench, but the material will be available. Well, and I think we need to pull I I think there's great pieces within a lot of the different initiatives and strategies that we can pull together and really fit.

But I know one of the things that um Sydney's going to say, we do allow within our regulations lots of different kind of housing. when I was as um I zoning um commissioner, we put that into our regulations where we do allow for all kinds of different um housing. So, but I just want to say I totally when I did this was totally worried. I don't want to throw these guys under the bus. I think there's many different reasons. Let me just close by saying when you study design they call them wicked problems and these are the things like world hunger. There's no one solution that's going to fix it all and this is definitely that. So it's a matter of finding the different little pieces we can pick from here and there. So go ahead.

So pretty much everything that she showed on the screen, we have made provisions in our code to do already. We did a big rewrite of our code in 2018 to allow for these things. We included a mixeduse zoning district to allow for a mix of uses apartments, single families, multifamilies, some small business to take care of these issues. Uh we do have in our ordinance already to allow for donation or or the city to give uh materials for infield development. That's already in our ordinance. So we're just not utilizing it. And that's not my department. That's you know utilities and whoever does pipes and all that. Um

so we are making those provisions. We've had casitas in on the books forever. Nobody likes to build them. Those are we've referred to them as mother-in-law quarters. 800 foot little homes in the back that that's you don't have to have any special uh permissions. You don't have to get any special approvals from the plan and zoning commission. Nothing. They're permitted outright. Nobody builds them. So, we have made those provisions in our code. We came up with the co-h different housing types for different types of developments that we've never had before. We've tried to push that in my department, but nobody wants to take advantage of it. Uh councelor Piano hit it on the head. if it's not going to pencil out to make a profit. They don't want to do it. So, I I'm not sure what else. And again, I think we lose focus of how the law works. Basically, you all are the lawmakers. Always do. We're we're merely the public servants that enforce the rules and regulations you give us to enforce. If you want to change them,

change them. That is completely in your power to do completely. You don't need no permission. You don't need anybody's permission. We didn't write those rules. You all are the lawmakers. And if you think there's a better way to do it. All you got to do is give us the word. We'll put it in the code. Bring it to you for amendment. Um again, all we do is enforce what you give us to enforce. So, uh but we have made those provisions in the code already. We just don't have anybody taking advantage of it. They appreciate it. CB, you guys worked hard with all the making those changes. And you know, we could do all the code revisions in the world, but concrete is still going to be $250. Yeah, that's the problem.

The big money, the big money in projects comes from infrastructure. Infrastructure. Yeah, that's where the big bucks comes. I mean, the zoning stuff and you got to meet setbacks. You got to plant some trees. You got to plant some. You got to provide enough parking for people because if you don't, they're going to park up the streets and we're going to get complaints. Um, we got the nimbies. I don't want it in my backyard. We had a big housing development that we could have had and it shot it down. So it it's nice. Thank you. Appreciate it. Someone's here that wants to speak on the new

My name is Scott Fser. I was the I'm behind the Haven project down on the west side of town and thankfully we're finished. I want to say I actually had a really good experience in working with the city um from a I'm from Portland. You could be in city planning for 10 months to be able to get through a 7-day process. I mean, there were some things that I would probably tweak, but I think generally speaking, I think the infrastructure that you have with some minor changes is is actually fairly good. If if I were looking at the biggest thing the city could do to help from a not only supply perspective is is obviously make it make it feasible to develop but invest in your workforce. We had to get people from hours and hours away to get some stuff done. We shopped in Colorado. We sh we finally got some people out of Albuquerque, but we had very limited resources here from a just a very basic from just people to shovel stuff to you know tradesmen and I mean we are millions and millions of dollars over budget because of things that are not your code necessarily but from the state's code. We had to redo plumbing with that building is new, new, new because we couldn't reuse anything and that kind of stuff is problematic. But I would say the biggest issue that we faced is finding good the good contractors were good. The the ability to get people who we could rely on from a timely basis who could even get bids from was I think that's where I would invest. Um, and I found the same thing that you mentioned as far as like home being building some stuff homegrown is if you could do more of that, I think that's going to solve a lot. I've tried to get a couple of um executives that I know to bring businesses here and their biggest concern was the labor force. And so that would be my my two cents.

Right. Appreciate it. Thank you. Hey Scott, since you're up here, what um we're glad you're finished. We know you were way over budget and you probably would have just built a brand new building if you had known all that, but we're glad to beef up the West End. What? Um, are you guys going to do a grand opening or anything? How many units have you guys You guys are renting. You guys are open for business so people can come. Right.

Yeah, we're waiting on our I think we might have maybe even gotten it. We had a final final CFO. Um, we were just waiting on some tweaks on our our fitness center gym bathrooms, which which we won't even open for a while, but we can't get our C final CFO until we have that signed off. But, um, yeah, we are going to do a grand opening. Don't know exactly when. We are renting. We have, I think, 42 people living there, mostly from the medical field. Um, and I think, um, you know, if you I would encourage everybody to come by and see it. It turned out amazing. I mean, it's it's it's drop deadad gorgeous. Yeah. Ron, did you have any questions? No, no, no. But I I have seen it. It's a class act place. Yeah, it's nice. It really is. Yeah. We're really proud.

How long was your construction time? It took us four years to get done. Yeah. Four years. Four years. And And there was lots of times when if if we weren't bought committed, we would have we would just us our ability to make a profit on this thing. It's going to be pretty pretty challenging. It's we we I mean we rebuilt everything. Can we ask you what you guys charge for rent or how uh with utilities and all the amenities, it's $12.95. Is that for a two-bedroom? We only have studios. Just But they're big. I mean, they're But it's everything's included. They're big. Everything's included. Wi-Fi. Wi-Fi connectivity, water, sewer, we've got pingpong pool tables, you know, botchi ball.

Yeah, there was a botchi ball in the middle of where the pool was. You guys remember the old pool? They took it out there. Yeah, there's a lot of amen gym. I mean, there's a lot of amenities in the a lot of people 126. Can you tell us the price? What what it cost? Just give us price per unit. Oh, you had 12. We're over 100 over 100 grand a week. So, and for studios, that's a lot. Yeah, it's a lot. But, I mean, it's um like I said, it's all brand new. New plumbing, new electrical, new new 2acre roof. That's not cheap.

Um new parking lot, new landscaping. Those kind of things. That drove me crazy. I mean, I've seen the parking lots in this town. and to have to go do a brand new one before we could get our occupancy permit killed me because it's like I can't drive through some of these places. But um I would say it's little tweaks like you know and being reasonable. I mean being reasonable understand kind of grandfathering some stuff especially if you've got some assets that you could repurpose because there's such waste that goes in demolition, you know, demolishing things and rebuilding from new. Um and you know I mean you're you're in that space and um I that's all I would encourage just some some reasonleness on reuse and um and workforce. Any other questions?

It's really helpful. Thank you so much. Awesome. Thank you. Thank you, Scott. Thank you guys so much for your investment into our community, too. We know what you invested. See that it seems like there something's going on.

Yeah. Now you have a restaurant too down there. Okay. Well, we'll continue. The next next item is consent agenda. Um the first item on the consent consent agenda is approval of minutes. Uh the second item is the resolution 2026-1. It's the annual determination of notice under the open meetings act which has to be done annually for all of our grants and everything. Um and the uh last one is the tourism office budget adjustment request. The uh first item Al did you have any are you the speaker on that one or there's no

it's a consent consent agenda. We got a we got a vote. We're going to approve it all together. Yeah. Yeah. Does anybody want anything to discuss any of the other the three items? I won't do it to you. Oh, I'm sorry. I have nothing. I usually pull something, but I I will not. I refrain myself. I make a motion we approve the consent agenda numbers one, two, and three. Second. Councelor Molina. Yes. Councelor Piana, yes. Councelor, yes. Councelor Yosi, yes. Mayor Deal. Yes. Yes.

Okay. Um the next the next three the next item is the discussion action topics. The first item is a resolution number 2026-10 the second quarterly fiscal year 26 budget adjustment and reports of actual. Good evening there council.

Um these are a set of reports that sum up our quarter and they are due to the DFA. It's it's all based on their format their requirements. What we do to start off with is we have a resolution that's being presented to you for approval, but I'll run over the the numbers just a little bit. There's a lot a lot of detail here, and I know you don't want to sit here and go through them all, but I'll get as much into the weeds as you as you want.

Um, one of the the reports I want to report out to or point out to you is the adjusted budget. And if you look on the in the top left corner, it'll kind of tell you what these are. And I just look at the one that's a recap. It's two pages. These these are summed up. We have over 70 funds, but based on the DFA requirements and the way they have a SNAP amount, it it limits them down to just this number of funds. The highlights is if you look at the very last page, um the third column to the right, the 211 million, that is our budgeted revenue that we have in the system right now as of well as of December 31st. Transfers are always going to net to zero because it's just between one fund and the other. So that's just um for their purposes seeing all the transfers and what funds they're going in or out of. But then we show the expenditures that we have budgeted are over 200 million. So we are showing a use of cash and if you've seen any of our cash numbers just the very next column the 150 million um number that is the actual cash we have on hand. So that is after budget we we potentially have $150 million cash. And I know that sounds overwhelming and like we have a lot to work with, but once you start breaking it down fund by fund and the requirements and and the legal restrictions on each fund, it gets much much narrower. And a lot of this money, this does include grant and loan money that we have available as well. So, um, as we get into budgets, we're going to go through all the funds with you, and you'll be able to see the the real details of which funds and where we have money that could be allocated to try and fulfill the the programs and and the directions that you that you want to go. But right now, that's what what we're showing is that we're going to have $150 million cash at the end of the year. The DFA does require, and that's one of the things in the synopsis here, is I did explain that there's several loans to funds. They do require that no matter what is happening that no fund can end

in a negative cash balance. So the next recap that you find in your in your schedules is called the quarterly reporting recap and that's our report of actuals and that's where these loans have come into play so that we've moved them from general fund into several of the other funds. And what what they primarily are is it's grant money or loan money that we have not yet received. We have to spend our funds in advance. Then we turn in all the paperwork and go through all their requirements and all their reporting that they need and then we draw the money down. We did hire um Kagan's got a new individual that that should be working on these to try and and get the turnaround to be a little more quick because we're we're doing big projects like the uh senior center. the cash is going out the door in in millions at a time and so you know this individual should be starting to focus more so you won't see as much of the loans but that that helps with our restriction on the general fund that we keep at least 20% of operating revenue or operating expenditures on hand at all times that helps us to have the working capital to do that with. So, so you'll see that as we go forward into the budgets further and talk about those details. But on the report of actuals, um bottom line at the on the totals page, our revenue is almost $70 million year to date and our expenditures are only 60 million. The next column that you see is going to be a negative adjustment of $3.7 million. And what that is doing is we do all of our stuff on acrruel and modified acrruel basis. So if we get an invoice in and get in the system, we expense it, but we didn't pay it yet. So the state makes us convert it over to cash basis. So we have to go through in my in my department and we actually reconcile all of these different funds that they have them grouped in and we reconcile it back to cash basis for them. So our real cash on hand at the end of the quarter is $212 million. So there's not anything alarming in here. Um we didn't find anything that we

felt needed major adjustments. We are struggling a little bit between the DFA required reporting and our actual need on how we uh put the loans and the grants in into the system. And I'm hoping we can tweak that over the next few months and come up with a process that makes it a little smoother for our office. Um with that, I'm going to stand for questions. If you want to go into some of the specifics of how any particular fund works or if you have questions on the numbers, I could try to uh answer those as well. May I have a question? Yeah. Um, thank you. So to be clear, 150 million cash on hand end of year, which is coming up June. And then what was the end of year fiscal year last year?

That would be we know. I'm just like trying to have a comparison. It's very similar to that. We've been maintaining about the the same amount. I don't have that figure with me, but the actual cash not including investments at that time was the 130 million that this starts with. Okay. So, so it's it's Yeah, it's pretty much stayed pretty stable. Um, okay. So, what do you know if what percentage of that we think might is already almost like take like because we're Well, I guess we're not using the cash in that's cash on hand, not general. So, what's general? The general fund. Yeah,

that's going to be the very top line in here. That is one of the funds that's singular on this and it's in on we call it general fund 101 and in their mapping it's this 11 11 uh mill 11,000 number. We're estimating about $21 million cash on hand. They require a reserve of just under $4 million but we require a reserve of more. Our reserve has to be 20% of our expenditures. But that 21 million that's not that's not cash days cash on hand, right? That's actual in the general fund. So do we have a percentage? We know that that I feel like we're a little over let's see I've got about 30% um so that would be spoken for of that

no 30% that would be available of the overall cash so we've got about oh I can't think of it backwards on this on this no that's okay so but so 30% of that 21 million we because is already kind of accounted for right to some project in in in one all of that is already accounted for in the in the actual balance that we have. We're going to spend most of that that is mostly spoken for. Okay, that's what I'm wondering cuz it seems like a lot of money, but I think we have that money already spoken for for a lot of projects and it's just still it's sitting there until we can utilize it for the project. Correct.

We probably have about four to five million that we could allocate, but you as you've seen like last council meeting, we had to come up with $600,000 to help buy an ambulance. Yeah, luckily we had another fund that had sufficient money, but that's left that fund a little tight for coming upcoming budget.

So, I mean, it's up to you if you guys want to change that policy to where we start utilizing more of the general fund cash. We just need to keep in mind that that these opportunities and sometimes emergencies do come up and general fund is usually the final default of where we reach for those funds. Okay. Yeah. I just want to make sure we know we don't have a default of 21 million though. we have a default of maybe 4 million because the other portion of that is already accounted for for various projects essentially. Okay. I just want to be clear on that. And then as far as the various um reimbursements because we have ended with we can't end with a negative cash balance. What do we know when those various things are getting reimbured to us? Does all of are all of these like in the inner governmental grant senior citizens? So, so in general, a lot of them are different, but in general, we only have to submit quarterly reports, but I've been trying to encourage the grant managers to do it monthly

because we're expending so much money. The airport would be another one that we do large expenditures at a time. And by just complying with the quarterly reporting, we're shorting our sales cash that we could have working in the system and making money. Our investments are running at what did we come up with today? A little over 4% on return, but I there's a lot I can't invest to get that return on it because we've got it extended waiting on our reimbursements. So, it's all kind of a snowball effect. And if we can improve that process, we don't have to do the loans and we'd have a little bit more return on investments, if that makes any sense.

Yeah, I think I think so. I mean basically we'll get reimbured for all of this but depending on if you do the quarterly or the monthly how often you submit is we'll get right we'll get the money back and then okay you you we would hope that this would be reimbursed by the end of the fiscal end of the fiscal year I don't know the timeline for sure on when the um senior building will be done but roughly I would expect the May June expenditures to main won't necessarily be reimbursed by the end of June, especially the June stuff. But so we're going to have about two months of an outlier right there and and so it'll be October will be the finish.

So but then are we going in for the outstanding money into the new fiscal year? Yeah, we continue to pursue it and on our side on the acral side we show it as a receivable. you know, it's we book that. That's part of our our year-end process, and we'll book those as receivables under the system officially to recognize that it's all been taken care of. Everything's um lined up. We just did not physically receive the cash at that time. So, that that part of it is not a big issue, but getting it to speed up a little bit would reduce the amount of those loans because because reimbursements, right? Yeah. Ron, did you have a question? I do. Uh the senior citizens at 3.5 million is that all grants?

No, the the whole build the you mean for the project for the building. We've got a lot of grant money from the state through legislative appropriations, but we also utilized our building fund bond 376 to fund about 2 or 3 million as well. Okay. So this is not grant money um in the 219 fund. Yes, that is all that is all related to the grant. We did utilize other funds. Now, what is a Navajo Gallup W County? I'm not sure what that is. That's part of the Navajo Gallup funding. The one that's labeled county. I'm not sure which one you're looking at, but the the I don't understand on the agenda. It's on the agenda,

right? So, so the Navajo Gallup project, that's that's part of the money. The 221 is is the GRT we get. The 222 is Navajo Gallup money, but we have to wait for board reimbursements on some of that and and grant funding on that. And then um I didn't bring the list of everything that's there. It says it's the county. Yeah, that's that's the county one. So it's they pay us quarterly, but then we make payments out of that as they as they come due. And we've had significant payments this year. Um we anticipate that one to be fine, but that one also has some some it it ties in with the board as well.

Okay. So not paying so just on a side note not paying the Navajo Gallup water pipeline soon will help us out right cost cap of 76 billion yes you we're not at we not have not yet reached our cost cap but it is some assurance that we can hopefully stop the bleed because we've been going for loans back to back to back to back we have a handful a fistful of loans out standing on that right now I don't have a real prediction on the the cash flow and where we're going to end with that. But that that new legislation is is definitely a gamecher and and does give us some breathing room. I'm going to put all that extra money towards the animal shelter.

Me and Linda are going to me and Linda are we're going to bring another meeting. It it unfortunately we we don't have that option based on the funding and the restrictions that Yeah, I know. We're mostly being facitious, but we do want money for the animal shelter. I I did get word that the state's reducing their GRT and I don't know if that's our state shared amount. If that is, that's going to reduce our upcoming interest. I've got to find that bill and read it. Well, thanks Patty. Oh, yeah. I just I I haven't had time to follow any of it right right now. I just got busy. So, don't believe Sorry, don't believe that that changes our Senate.

It doesn't change our piece, but if it changes less overall, then we might get less of them. Yeah, there's one piece of in their their breakdown that's called state shared and we get a handful of that. So if that component changes, it affects us. That's what I'm saying I don't believe is changing. Okay, good. That's I would love for that to be the case. I hope so. I I just know there was something in there and I have not looked yet. We'll find out. Yeah. Thanks. Okay. Thank you, Daddy. Any more questions? Oh, yeah. Motion to approve resolution number R2026-10 second quarter fiscal year 2026 budget adjustments and report of actuals second.

Yes. Councelor Garcia. Yes. Councelor Yozen. Yes. Councelor Molina. Yes. Mayor Yes. Thank you. Okay. Number item number two is there's a goodiz 11 12th Street. It's an actual house. Okay. That's why our law enforcement. Is that why they took off? Yeah, that's they weren't being moved. Never seem like anyway. Item number two is request a budget adjustment in the amount of $22,000 from fund 603 and today the speaker's name is Amanda Kerry.

So go ahead. Good evening Mayor and counselors. Um as you know we've already requested the budget adjustment for the um safety incentive. Unfortunately, police and fire were unable to get us their safety hours prior to that budget adjustment, and we wanted to make sure that the other employees had gotten theirs. We've recently gone through the fire and police, and this is just to compensate police and fire for their safety incentives. Say, I mean, I made such a big stink about this last time, so I won't, I guess, make stink about this this time since you girl, I'm here. This is the same concept. They just got to do the safety video thing. And well,

I'm assuming they have more safety things that they have to do. Fire and police. Yeah. A lot of their stuff to maintain their certification though is not really safety. Like I mean, yes, when they go to qualify, they're there for 16 hours, which is two days, but only two hours of that is actual firearm safety. So, we only give them the 2-hour credit for it. So, going through their safety hours is a little bit more cumbersome than our normal employees because when we say it's safety training, it's actual safety training. Yeah. Okay. Any other questions? No questions. Thank you. We have a motion

like to make a motion to approve item number two request of budget adjustment the amount of 22,000 for the fund 603. Second. Councelor Molina. Yes. Councelor Garcia. Yes. Councelor Piano. Yes. Councelor Yazy. Yes. Mayor DeFali. Yes. Thanks Manta. Okay, we'll turn to number three and this is the recommen recommendation of award of ITBF 2613 for a supply of wellfilled electrical equipment. Um and the award will be made to border states industries of Gallup Farmington

Farmington. Sorry. That's right there. I saw him in G Farmington. Um and to the Daryl's Daryl Fit Dan Jan Moon the acting director is going to give this support motion or support request. Good evening Mayor Depali. I was wondering when I was going to add you as such. Council, good evening.

Greetings. Uh yeah, it's pretty self-explanatory. Wheel are um turn award this for the purchase of seven transformer step-up transformers along with uh uh motor controllers for this will supply the POD 8 and 13 and then future projects which are uh nine and or 10 and 11 which are coming up and possibly some more. Yes. One week. And Jen, we've been waiting on this. We've been waiting on the bid for a while for this, right? Uh yes. Like we had this out for bid and no no biders. So

we had Yeah, we had to repeat because we had no biders the first time around two times. Thanks. So, no. Yes. Um, I'll uh, you know, one of the things about switch gear that had to happen with this, John, is we've always depended on 2400 volt switch gear. Um, but unfortunately, that's the most popular switch gear that's used in the oil field, right?

And they'll buy everyone up there is. So we had to actually change the design to go with a step down transformer to 480 volt the variable frequency drives and then step it up the step the voltage back up to 2400 volts to go down the hole. So this is quite interesting. It's a complete design design change that we over the last 50 60 years we've had to change this design but hopefully it'll make the equipment more available even for replacements and repairs. Right. and the variable street uh you know drive really give us a lot of uh you know freedom to change uh flow rates and so on and so forth

and buying in bulk you know we you know it's a cost more or less a time savings and availability we found out that they weren't interested in providing one switch gear you know they wanted to get multiples out there where they can build them all at once which we can benefit from it as um anyway is there any other questions? We need the equipment and they've got it right. Bottom line. Um could we have a motion to approve them?

Motion to recommendation of award of ITB 2613 for supply of wellfield electrical equipment to Border States Industries at Farmington, New Mexico. Second. Councelor Dano. Yes. Councelor Molina. Yes. Councelor Yazy. Yes. Councelor Garcia. Yes. Mayor Dali. Yes. Thank you, Jana. Thank you, Mayor. Thank you, councel. Yes. The item number four is approval of the resolution number 20 26-7 to accept the state of New Mexico capital outlay grant agreement 25-J5957 for the waste for the city's wastewater treatment plant. And our speaker today is going to be Keegan because Nicole, is she here?

No, I was gonna Thank you, Keegan.

Keegan Mackenzie Chavez. Um, good evening, Mayor and Council. So, before we go any further on this one, I just want to um, attorney E brought up a point that um, I missed on. Do you all have your grant agreements? So on the grant agreement on page four, the resolution states that um I will be the person in charge of all the function on this grant agreement here. On page four up at the top, it has you um mayor. So I need to adjust that um city clerk. And so I think if I just changed that one section, then we can be able to sign it if you approve it tonight. Is that how we could go forward? We can amend the we can amend the a the motion to approve it with the with the change

the grantee on that section. Okay. All right. So this um grant was one that popped up from the department of finance um and administration. So it was a capital development program fund and it was a little bit um special in that it looked at projects that were basically funded but had um a component of the funding that kind of fell short. So this allowed for um a max of a million dollars to help um an existing project that needed that kind of push over the line. So for the wastewater treatment plant, this million dollars is going to go towards a non-pottable water system, which is basically the water used for construction to help out with kind of the the reworking of the wastewater treatment plant. So that's where this million dollar came in. It was um a really quick kind of grant that came up that we applied for that allowed us to secure an extra million dollars and specifically use it for the non-pottable system.

So after we uh accept this and implement this, then hopefully we're on our way to completing phase one and phase two of the wastewater plant. Well, the um or no? Yes, it this goes with the yard popping part. Yes, it does. It's in the budget agreement. I didn't print out. Why you say no? He said no, but yeah. And I didn't print out your big You're true. Um, councelor Penny, you're right. That was the phase one and two components within that for the yard piping and then overall system. Okay. So, you're correct.

Great. So, any other questions? Um, I just want to be clear or be sure I um on the this is a VFA direct grant. Yes. Um, sometimes the mayor does have to be the one that is responsible. So can we just say hold on

council just as the same draft by the grant agency and it provides the the official representative problem of course is the resolution that's before you doesn't say that it just needs to be amended to substitute the I would go with the form that the racking agencies proposed. Correct. And if they wish and they are being responsible official, so be it.

So the issue is we I need to correct the resolution where it lists who's in charge or change the grant agreement. I would suggest that the resolution be amended with respect to item two of resolution. Okay. If we could have a motion motion motion to approve resolution number R2026-7 to accept state of New Mexico capital outlay grant agreement 25J5957 for the wastewater treatment plant with the amendment to item two on the resolution. Okay. Excuse me. Second.

Councelor Piano. Yes. Councelor Garcia. Yes. Councelor Yazy. Yes. Councelor Molina. Yes. Mayor Depali. Yes. Okay. So, the next one coming up is Egan also.

Yep. Number five, approval of resolution number 2026-8 to accept State of New Mexico Energy, Mineral, and Natural Resources Department Governmental Services Agreement, ENM RD number 26-521- 03000- 0114. And with that, Kegan, that's where we are and what we're doing. Okay. So, this is an energyefficient kind of um auditing grant um to help with looking at older housing stock to upgrade energy efficiency. This grant for $150,77 is a planning aspect to develop a plan of how we would actually implement um an energy efficiency program. And so this is kind of a first step in devising a plan. We don't have a lot of time for this. Um the money needs to be spent by September 30 of 2026. So it's going to be kind of a fast work. Um but and and they ended up adding two extra months to the deadline because they didn't have a lot of communities applying for this for this planning aspect. I thought it was worthwhile to basically develop a plan. Um once we have a plan um there are the actual grant that would through the CED um which is the let's forget the acronym the community energy efficiency development um program that we could apply we could apply for that would allow us to implement a plan and it's an annual grant but um we don't have a lot of time. we are able to contract this out. You can kind of see

the components um of this that I thought was important to put we can hire a consultant. Um it's about um developing a plan that allows for energy audits and to assess what's going on with houses, what kind of uh retrofits they need, windows, roofing, insulation. Um and then also develop a component of outreach to how do we inform the public? So I know it's late. I don't if you have any other questions. I do I have a question. I do. So, okay. So, when do we have to spend the money? We have to spend the actually this one is really nice and that there's milestones. So, there's

once if you agree and accept this, there's a kickoff where they send um $20,000. Um then by the end of August um actually no June 30th 2026 um we need to have the draft efficiency plan

and that would um release $113,000 and30 $113,30 and then our overall final energy efficiency um plan of how we would implement that this energy audit um program needs to be due by September 30th, 2026 and then that releases another another 17,000. I think it's doable. Um I was hoping that this was something we'd kind of do in house, but thinking about the time um I think we need to hire put out to bid and hire a consultant to kind of knock this out. And this is really the plan on how we would implement a program. So that's what this this grant is about.

Um Ke, I'm just my concern is that if we have limited time and we're going to hire a consultant, then if that goes out to bit that has to come back to the council for approval and what if we don't get a bid initially and so and how much is the consultant going to cost? I mean is it worth it if we're spending half the money to hire a consultant to do the plan? I those are some of my questions. I don't I don't know if we know how much a consult will be but is you know the turnaround for this is pretty short. So, and we still would have to put it out for bid and come back to um council for approval for that bid prior to even hiring the consult to start the work.

It's it's true. It's a tight time frame. I I think it's worth a shot, but um the extra money doesn't then go towards energy efficient work. The money is to be sent for the planning aspect. So, if we hire someone and they don't use all the funds, then um we would return them. I talked to the um the grant um I see

person yesterday, the um grant manager and she said that I think what happened is they have a lot of money for this program and um it's a lot of it's kind of been up in the air and like I said they extended the deadline by two months to get more communities so it's it's crunched the timeline. Um I asked about exactly what you said about the invoicing and all that. She said they're still working on that, but at this point we have these three kind of milestones that we meet and she said we are realizing that communities are coming to us and um we'll by your kickoff meeting we will have all of that together but I think worrying about um I mean we just hire the consultant that's within this budget. So if we don't if we get someone cheaper then the funds would just go back. Well,

yeah, I I think that's doable, Keegan. And I also think it's a very worthwhile shot to this desperately needed and I think it's I think it's going to be a success, especially with you managing it and this community is good to I really truly believe that support. It's tight. It is really and you know, I guess we but we can work on it. Yeah. No, somebody any questions? No, if if Julian thinks she can do it, I'm all for it. And one thing I want to point out, too, there there is no matching funds, right? This is just matching grant. So, they don't have any obligation.

And I and I have to tell you that it was a letter of intent to get this grant. I just don't hear it. It was an email. They really need they're really desperate for people to spend this money and and it was for 150,000 and they said we've added a little extra. Are you okay with that? The 77 um additional dollars. So no take any comments. No, mayor. On that note, I'd like to make a motion for the approval resolution number R 2026- accept the state of New Mexico Energy, Minerals, and Services Department Government Service Agreement, EMNRD number 26-521- 0300-014.

Second. That was a lot. That was a lot. Thank you all. Council, yes. Councelor Yazy, yes. Councelor Molina, yes. Councelor Piano, yes. Mayor Deol, yes.

Okay. Our next item of business for the city is the uh resolutions um on condemnation. Um and There are four four condemnations in in the works. And before we start the hearing, I'm going to have to read a um how this is going to work. It's script this point. Um the city council will now turn to public hearings regarding the condemnation of certain real properties. 3402 Blue Hill Avenue, Gallup, New Mexico. 709B and 709C South 6th Street, Gall in Gallup. 100 West Jefferson Street in Gallup and 105 Mine Run in Gallup, New Mexico. Section 3-18-5 NMSA1978 gives the city council the authority to declare any building or structure which is ruined, damaged and dilapidated. Any or any premise which is covered with ruins, rubbish, wreckage or debris a menace to the public comfort, health, peace and safety and require the removal of the building structure, ruins, rubbish, wreckage and debris. The purpose of these condemnation hearings is for the council to hear testimony, review evidence, and determine whether it will declare the subject property a menace to the public, comfort, health, peace, and safety, and require its removal. These hearings involve substantial individual rights and must therefore be conducted in a quasi judicial manner, meaning the council sits in the capacity of a judicial panel. As is the case of any judicial proceeding, fairness and due process are paramount.

We will first address fairness. Does any city councelor have any interest in the listed properties or own property within 300 ft of those properties? Does any city councelor gain stand to gain or lose any financial benefit as a result of the outcome of these condemnation hearings? Can each city councelor hear and consider the applications for the condemnations in a fair and objective manner? And has any city councelor engaged in any exparte communications regarding these matters? Meaning any communications with people involving involved in these matters prior to these hearings? Um I I imagine it the answers are no, but if anybody has a yes, we kind of need to know. Aldo. Okay. Thank you. All right. Does any member of the audience wish to challenge the participation of any city councilor on the the fairness rather? No one in the audience. Will we will now address the due process. Each property will be addressed in turn subject to the following rules. City staff will testify first and present evidence concerning the proposed condemnation. Other witnesses other witnesses in support of the condemnation may then testify. At the conclusion of the witness's testimony and once city councilors and the city attorney have finished questioning the witness, the property owner may ask questions of the witness. Then the property owner will testify. Other witnesses opposed to the condemnation may then testify. And at the conclusion of the witness's testimony and and once city council and the city attorney have finished questioning a witness, a representative of the city staff may ask questions of

the witness of or of a witness that or I witness whatever witness it is. Witnesses may introduce other evidence such as documents, pictures, and maps. Witness witnesses will testify at the podium. At the discretion of the presiding officer, witnesses will be limited to five minutes each to present their testimony. Time spent answering questions does not account against their five minute time limit. Counselors may ask questions of the witness at any time during the witness's testimony. We ask that the witnesses do not repeat testimony that other witnesses have already provided. The city council is to allow the law to the facts of the particular case. The law requires that council determine whether the subject property is ruined, damaged, deap and elapated, sorry, and therefore constitutes a menaced public with comfort, health, peace or safety and order its removal. The city county must the city council must make its decision based solely on the evidence presented during the hearings. The city council may deliberate in close se session if so motioned. However, the final vote of the council action must be taken in open session. Okay. Any person willing to give testimony during these hearings must do so under o oath or affirmation. Would everyone who plans to testify either support or opposition of the condemnation for any of the listed properties please stand up and be sworn in by city clerk. So, if anybody's gonna testify, just stand up and Cal, you're gonna throw them in now. You will we stand up.

No, Mark administers. Okay, good. Please raise your right hand. Do you swear that the testimony you're about to give will be the truth, the whole truth, and nothing but the truth of the penalty of perjury? I do. Everybody, everybody sworn in. Um, we will begin with 3 3402 Blue Hill Avenue, Gallup, New Mexico. Lynn A. Develin is the owner of record for 3402 Blue Hill Avenue. Is Mrs. Develin present?

Uh, no, I do not see the property. Okay. Um uh so she's not here. We'll proceed with testimony with the city staff. U Mr. Strain, would you please come to the podium there and present your testimony and any other other evidence you wish council to consider.

Thank you, Mr. Mayor. Good evening, Mayor and Council. Um as the mayor has stated, this property is located at 3402 Blue Hill Avenue. certain real property containing a principal dwelling structure located at the the address stated um further described as lot 13 block one east Mmore unit 4 has fallen under such disrepair due to lack of regular maintenance that it has rendered the structure a nuisance a hazard and a threat to the public health safety and welfare to date no action has been taken by Lynn a Delin owner of record of said property as shown on the property record of McKin County Clerk to repair or remove said structure from the property from said property. Uh the building inspector and co- compliance officer of the city of Gallup have determined that said structure so ruined, damaged and dilapidated and said premises is so covered with ruin rubbish, wreckage and debris as to be a menace to the public comfort, peace, health, peace and safety. uh including your agenda packet uh our photos of the property, building inspector, structural survey, code enforcement cases to date along with other supporting documentation. Mayor has already read the state law that gives the authority to the governing body to uh condemn such structures. So I will not repeat uh if said property owners of record failed to repair remove or remove said structure, rubbish, wreckage or debris within the time frame mandated in resolution number R2026-5. The city will proceed with soliciting bids for demolition of said structure and removal of all rubbish, wreckage, and debris. City staff will then present the lowest bid to city council for approval. the lowest bid. If the lowest bid is approved by city council, the the city will then enter into a contract with the lowest bidder and proceed with

demolition and cleanup and will place a lean on set property for the cost of demolition and cleanup. I do have some photos of this property to present to council and the audience. Go ahead. Uh this is 3402 Blue Hill Avenue. It's abandoned and unoccupied. property has become a nuisance and a safety hazard to the neighborhood. Utilities are disconnected. Uh the structure is tagged unfit for human occupancy. City has boarded up and cleaned the property multiple times from 2013 to 2025. Currently owes uh $3,663 in leans. A total of 13 code enforcement cases. A total of 36 letters have been distributed to the owner from 2013 to 2026. The owner has been nonresponsive in each each letter that we've sent.

Next slide up. Issues with the exterior, stucco damage, damage to the wood fence, broken windows, as you could see in the in the photos. Next slide. Interior interior ceiling damage. uh extensive water damage, possible mold, unsanitary and unsafe conditions. This is due to the roof uh failing to repair roof damage. Uh water has gotten into the structure and uh starting to go through the ceilings. Next slide. Damaged wall, ceiling, and flooring very unsanitary. constant issue with transients breaking in and creating a nuisance as you can see with the graffiti on the walls and uh just the debris all over the floors. Next slide out. Accumulation of trash and personal belongings, human and animal waste are found throughout the structure. And you'll note the the owner just kind of up and left the structure. All the all the personal belongings are still there. He's been vacant for about 19 years. Next slide out. That's it for this one. So um staff recommendation is for condemnation of said real property and the and order of the removal of said structure ruins rubbish wreckage and debris as mandated in resolution number R2026-4 under the authority granted to the municipality by NMSA 1978 chapter 3 article 18 section 3-18-5. And with that I'll stand for any questions.

Does the council and or the city attorney have any questions as a witness? I do. Uh I guess it's kind of a question, but it's a statement also. Uh you're you're want we you're wanting to condemn the property and take it and demo it. Is that what I'm hearing? That is the recommendation.

Yeah. I'm not I'm not good with that. Uh the lot right next to it. I believe the city demoed it. I don't know if the city demoed the property already probably demo it. And we've had a vacant lot lot there for the last I'm going to say 30 years. Uh I think we demo this now. We're going to have two vacant lots. I think that the house is probably a viable house to rebuild. I don't know that we want to demo it. Uh that's my street. Meetmore is a very nice area. Very nice area. And I really feel like the house uh I I really don't want to see the house gone. I want to see it rebuilt. I want to find possibly find a new owner for it of some type. How how does that work into what we're talking about? Mayor, uh, Councelor Molina, this is strictly the recommendation and the guidance under the the New Mexico State statute that you have the authority to do so. Uh, it can be condemned and and we could hold off on soliciting bids if somebody was to approach the property owner and perhaps buy the property and rehab it. The structure itself is sound, you know, that the walls aren't caving in. Um, and it's not in in danger of collapse. Um there is some water damage to the ceiling and the roofs and you know when water infiltrates a roof it gets pretty bad pretty quick. So it's not unsavable at this point. It can be probably rebuilt but as a be as we have said the the property owner has been unresponsive to for the past since 2013. She has not responded to any of our correspondence tried to contact her. She has not returned calls uh anything like that. So, um it is not necessarily a uh written in stone that it has to be

demoed right away. That's up to us on the time frame. Um but if we do nothing and just leave it there, we could just leave a red tag on it. And do we uh do we know that the taxes have been paid?

Uh we do not research the taxes. No, we don't. That's not part of uh what the condemnation process is. Um, no. I I just real feel real strongly I don't want to get rid of another house in Gallup and I don't want another empty lot down the the street there. We It's a nice neighborhood. The whole neighborhood is nice. All the memoir is nice. Uh, I'd really uh like to see uh us condemn the property, whatever we need to do to take ownership of it, but I certainly don't want to demo it. Um with that the city manager may have an explanation.

Um um Mr. Molina mayor um that is my recommendation also. I mean if we condemn tear down uh city will be into the property for $30 to $50,000. Um I don't see us selling the lot for that. We have some great contractors and individuals in the town of Gallup who take homes like this and and refurbish. And this is probably going to take $50 to $100,000 to put into it to fix. But at the same time, if if we let it go for a very price, good price on on bids to where somebody gets it for under whatever amount, um it'll pay those leans off and any property taxes and and then the other taxpayers out of money. So, I I would recommend the first 60 to 90 days um putting it out to see if we get somebody interested in buying it, but then again, we we should set a time to where after x amount of time, if nobody wants it, it it needs to go after that.

Yeah, I think 90 days is a good it's a good time. I would observe that you really can't do anything with the property absent acquiring title. Now, we have leans against property as Mr. Strain uh mentioned. Uh those leans exist. We can look at foreclosing those leans in order to obtain title. uh we probably can do some cleanup work and establish an additional lean cleanup work as a vehicle for obtaining title. But unless the owner steps forward uh or unless the city has title, there is no way of bringing in someone to redevelop rehab the property. They're going to have to be able to acquire the property. And there, you know, that as as things stand, the only person who can convey title is the current owner who's been nonresponsive for over 15 years. Whether this person is still around u what's happened to her, we we just don't know.

Have we uh served papers on her uh certified receipt, anything like that? Actually, today was the very first one that she signed for, I think, for this meeting tonight. So, we know she's still, you know, alive at least. But I'm good. Uh, interest question for the city attorney and the city manager. If we were to acquire title, of course, we had to take check the taxes, make sure there wasn't a limit loan on the house, kind of things. Is is is that um positive for the city to fire title?

Yes. through the foreclosure mechanism that I mentioned. Um, it's highly unlikely that there's a lender. The house has been vacant. Uh, it's highly unlikely that any lender would have sat by and not done something watching its collateral uh degrade in value, damaged etc. There is every possibility that there are property tax leads against uh house. Uh and in that event, we would need to assess whether we want to engage in demolition because any demolition lean that we would establish would be junior to the property tax leans. Uh but there are mechanisms by which we can obtain title and that would give us the ability to deal with the property most likely through the foreclosure on our current leans or establishing a new lean for cleanup and foreclosing on that.

So just to be clear, I mean obviously I'm confused as to how we haven't got a hold of this person if she lives in Santa Fe. She seems to live fairly close. So we just sent her letters. We've never had anyone go physically out to try to find her. We just send letters. She just doesn't sign for them over all these years. And then and then now she signed or somebody signed it sounds like but you know no communication. So then how do because I know usually we condemn we demolish a property we ask them to pay for it or we put them on a payment plan to pay for the demolition of that condemned home. But in this case it I mean I don't know how we get someone to do that when we haven't even been able to get a hold of her for all these years. So then just the city just eat that money basically of the demolition.

There would be a lean uh placed on the property. So it would that lean would have to be uh taken care of before it could be sold. So um it would be a cloud on the title. It would be part of the title that there is a lean on the property and Dave could go into the legal Oh. So if someone bought if we demolished it and someone bought the land then that person would have to pay the lean off on it. Yes. or the owner would have to pay the lean off. Again, the owner is the one that could legally sell the house. So, unless we foreclose on it, if we foreclose on it, then I I suppose the lean goes away. And but I'm not the attorney.

We can do additional title work u based upon a potential interest in the property. If you decide to seed with a resolution that's proposed, that title would would clearly indicate whether or not there's a decomplex, a mortgage or or similar leaning. Um the information that we just received because it's not for you and strictly speaking since you're sitting in a quasi judicial capacity, this would have to be introduced and authored as evidence. But in any case, the property taxes are current. So, somebody may be paying the property taxes. Whether that's a mortgage or or excuse me, a mortgage e or the owner, we don't know. Um, I think the, you know, if if this is going to be considered, it should be offered in evidence and copies made for distribution council. So, I would suggest that so supplemented

the taxes, the tax, it's information from the county's website concerning the payment of taxes. Yeah, just sent it to the refere. Okay. So, it should be considered part of the record. What is it? What did the amount do? Zero. Zero. It's being paid off. They've been paid by somebody. They're up to date on the taxes. That's the implementation is.

All right. So, there was a larger lead um I want to say about $20,000 back in 2019, but that was paid off. Um, at the time we had the city attorney Curtis Hayes and he was in uh working with I'm not sure if it was a mortgage company, but it was a mortgage company and they paid it off and then after that she started accumulative accumulating the lean. So that's why it's at only 3,000 but prior it was about 20,000 and uh we have probably since I've worked here um we probably talked to her maybe twice and she just kind of says it's not my responsibility. Stop sending me letters. is uh what was the first lean for? Was it from the city? The first lean you talked about?

Yes, it was from the city. What was it for? $22,000 worth of work. No, it was for from 2013 to 2019 doing emergency boardups, yard cleanups. It was just all complete. Yeah, I'd sure like to see if uh we could take title of the property and and uh I mean even if we handed it over to a contractor, sold it, whatever we need to do. Uh I'd really like to salvage the house. That's a nice home. Could be a nice home. It was a nice home. Just been negle neglected for the last 20 years or so. Okay.

Okay. Um, with that, I don't we'll have to ask for some council help. I don't know if this allows us to acquire the house um or do anything like that in the province. Dave, where does that leave us? The proposed resolution before you would need to be amended uh slightly to provide that yes uh the house stands as condemned. That procedure needs to be followed. But the resolution could recommend or acquire that staff look into the possibility of acquiring title other than through demolition.

Yes.

So we do we need to postpone this resolution uh under those circumstances. Um I don't think that's requiration under the statutory standard that been provided. You can uh move the adoption of the resolution, but as part of the motion, condition any further action by staff of the city on exploration of other or alternative mechanisms for obtaining title and dealing with the property uh through the means that have been discussed, either trying to find a developer interested in acquiring the property uh but but dealing with it other than through through actual demolition. One more question. If if that is the case, if we could find a developer, it would be good because he could purch right out the

correct. They they could take title subject to whether ever leans exist. Uh and that would simply affect the price. Obviously, the city, if the real interest is in having the property developed, would would really need not to get any return for the property other than what we have put into the foreclosure and the lanes that we have established. And if it was quiet, would quiet title be the only way, you know, that way if we had purchased?

We would have to commence a foreclosure action. We would have to join all necessary parties and ask the court to convey uh title through a special master process to the city in foreclosure of its lean positions for cleaning up the property. Those are the current lean positions. And then again, as I said, if we went out cleaning property again, reboarded it, we could establish an additional lean. I I'm not entirely clear on the age of the current leans. There may be defenses to foreclosure on those leans, but we could probably one way or the other acquire title. And what I'm suggesting is that the property stand is condemned pursuant to the resolution been provided. The council add to or qualify that status by uh instructing the staff to seek uh mechanisms for the rehabilitation or refurbishment of the property. short of demolition if that's the counc and that process is about six months to get the get full get the full title

depends on how quickly the court moves but yes at least six months probably a little bit longer a clarifying question um in section five of the resolution the language there actually says that if the owner does not fails to commence with removing or um the structure, the municipality may remove it. So it does not say that that's the what we have to do next. We then have those options. So that's correct. From that stance, it looks to me like the resolution as it is written

is a logical first step to take for us at this time and we better discuss the ins and outs of what we want to do with it later. The only question be want to add to the resolution with further instruction along the lines that I've described. I'm not sure that that's going to be done. Yeah, it's going to be done. Yeah, I think we should have done some better. Yes. Yes. Yes. Uh so can we make a motion on it as in our state that we're in now? Okay. If nobody else has any questions, I'd like to make the motion to approve the Wait, hang on. Sorry. Unless there's any other Sorry, let me let me finish, guys. Oh, okay. I'm sorry.

Thank you, Frank. Um, so the um that's the qu questions for the city's witness. Um, and do we have anybody to support or oppo to the opposition of the removal of or the the the resolution? Mrs. Develin's not here, but do you have any qu does anybody does she have any questions for the witness since she's not here? Of course you don't. Um the um the next one is Mr. Strain. Do you have any other witnesses that you wish to testify? We already saw Nikki come up, but do you have anybody else? Mr. No, not at this time.

Okay. Is there anyone else in the audience wants to uh to testify in support of the condemnation? Okay. Yeah. Come up and Yeah, I saw that in the paper that they were going to be dealing with this. I live on far end of Blue Hill and I've been trying to contact her. I've called her, emailed her, written letters because I always Sorry, I don't wish to interrupt. Could you identify yourself?

Put the mic down address, please. Oh, I'm George Annist. Um, what other what other info did you need? Your Oh, 3200 Blue Hill. So, it's two blocks down from the And what what is your profession? A realtor. And your social security number? I'm just kidding. Anything else? Go ahead. Okay. Um, anyway, I've been trying to contact her also for the last 10 years. Wow. Because I was hoping to acquire it and refurbish it. So, I would be glad to see that it wouldn't be demoed. So,

that's helpful in both. There you go. Any question? Love that. No questions, but but just a quick comment. Wonderful job on the property down here south southeast of Janiros. Wonderful job on that, sir. Thank you for that. It's getting finished, but it's not finished yet. I It It's It's a thousand% improvement over what was there and we thank you for for doing that for the community. You're welcome.

Okay, we'll continue. Um since Mrs. Delin's not here, um we would ask that uh um is there anyone that wants to testify in opposition to the condemnation in the audience? If not, we now heard all the evidence. Would the council prefer a summation of the evidence by the parties or does council have a complete understanding of the issues and wish to proceed to deliberations? Proceed. Proceed.

Um, is now it is now time for the council. Okay. Okay. Bear with me. It is now time for the council to deliberate and come to a decision in the matter. We've already had our deliberations. Do I hear a motion to approve or disapprove resolution number 2026-5 declaring 3402 Blue Hill Avenue, Gallup, New Mexico, a menace to the public, comfort, health, peace, and safety and requiring removal. I I I would like to approve that with additions. Go for it. Come in. Say

yeah, please. I'd like I'd like to approve the resolution number of R2026-5 condemnation of real property located at 3402 Bill Fluill uh Avenue Lin Develin under the circumstances that we will try to forgo ownership and uh possibly pass it on to a contractor with uh before we resort to demolition. second. Um, we'd like, if that's okay, I'd like to amend that with a time frame. Um, you can't put a time frame on it because the courts are involved will get involved now. That'll take quite a while.

There's a brief time period for challenging I'm fairly confident inspire since there's no opposition here. I think what Mark's saying is time before we demolish. Right. So we have 90 days or we give them 120. We'd like to give get something, you know, into the record to modify the motion to the second. I don't think there's been a second. I already did it. I'll second your amendment. go ahead and modify or suggest that

modification that that the uh that the house is the owner has contacted and it's and it's either under renovations within the next 120 days just so I'm clear to amend the resolution to include the 90-day time frame correct with four renovations

or 120 day I'm sorry Um, and just a question for the city attorney, does uh does how does that apply with uh the state law uh section 3-18-5 as far as the time frames go? We could just set anyway. Yeah. So, so this is this is us being able to sell the full not heard me and say I'm not working on it. You're not

under the statute. The owner has 10 days to challenge the resolution that action court is extremely that would suggest that the 120 period proposed only start the clock only start on that at the conclusion of that end date period. So there is no possibility of judicial challenge. Correct. Great. I meant Okay, now you want me to say all that all over again? Yeah. What do you say? Go for it. You have to summarize.

Okay. I'm going to start again. I'm going to limp through it. Resolution number 200265 condemnation of real property located at 3402 Blue Hill Avenue, Len Develin. I recommend that we approve this under the condition that the city tried to take ownership. And uh we also do a 120day uh period after the 10day court uh what's called the court period court time period. Yes. Yes. Yes. I did limp through it. You did you did a wonderful job. And that 120 days. Can I amend it? Oh my god.

Just to make sure we're clear on you. Clear what the 120 days is? I'm going to forward it to the city attorney to add the language to the resolution. I just want to make sure we're okay with the time frames. Okay. Um um I second whatever that was. Thanks, buddy. That was a lot. That was like all over. Councelor Molina. Yes. Councelor Piano. Yeah. Yes. Councelor Garcia. Councelor Yazy. Yes, Mayor. Yes. Um,

we're going to go on to the next property. But, you know, you got people have to understand this is the first time the city's done this in how many years. Oh, just did one a year ago last year. Last year before or ninth. Uh, very similar. Same process. Same process. And I just want to make the council aware that with this particular property that we just took action on, there's more than likely going to be more code enforcement action taken as far as boardups and things like that within that time frame. So the links are going to accumulate more just so you're aware. Please do. Thank you. Very good.

Okay. The next pro the next property is um the resolution then the resolution is 2026-4 condomination of real property located at 709B and 709 C. Make sure I have the right one. Nope. Yes. Did I get it in myself? Yes. That's correct. Okay. Okay. Seven

South Sixth Street. Elodores Rosales, Nelina Martinez, Martha Graio, and Josephine Rosales. And as as we the read from the public hearing script that we read, we can just go right into the the property itself and begin the same process where um we're going to say that the the four the four people mentioned are the owners of the property. Bear with me. Alidores Rosales, Magdalina Martinez, Martha Caraveo, is that how you say it?

And Josephine Rosales are the owners of record 709B and 709 C South 6 Street. Are any of the owners present? So, she's the daughter of one of the owners. She'll be representing. Okay. Make sure the records.

Um, so yes. So, good evening. So we will uh you will present your testimony in in for Magdalina Martinez. That's what's um so I believe uh there are only two living uh owners at this time. Magdalina and Magdalina Martinez and Martha Cargo.

Sorry, my mom would slap me. But um because the county we go by county records and ownership and all the county are the keepers of the the owner's records. We have to go by what's on the owner card or the property card. So that's why all names are listed. Um we'll continue then. Mr. Strain, would you please come to the podium? You're already there and present your testimony and any evidence you wish the council to consider.

Thank you, Mr. Mayor. Uh again, this is the the last three are going to read pretty much the same as the first one. The certain real property containing this particular property contains three dwelling units on the property. However, we are only addressing two of the dwelling units. So, two dwelling structures located at 709B and 709C South 6th Street. uh further described as lot 5A-2 less the east 25 ft of replat of lots 5A and 7A uh block 14 CF Vogal edition have fallen under such disrepair due due to a lack of regular maintenance and fire damage that it has rendered the structures a hazard and a threat to the public health safety and welfare. Uh to date no action has been taken by the owners of record to um repair or remove such structures from the property. Again the building inspector code enforcement officer did an inspection and they have deemed that the property is the apprentice is covered with uh ruin rubbish and wreckage and debrisze as to as debris as to be amen to the public health comfort health peace and safety. Um, again, all the records are included in your agenda packet as far as code enforcement cases, uh, and things like that. Um, I do have photos of the properties to present to council. Uh, just for the council's uh, pleasure, this is sixth in Morgan in the Chuita area. The two red X's indicate where the properties are. There's actually three houses on the property. Uh, unit B is near the alley, which is the one you see on your screen. Now, go ahead. Unit C is this one, which is in front of

unit B. Next slide. Issues with exterior stucco damage, extensive roof damage, fire and smoke damage throughout. You can see holes in the exterior walls. The stuckco's fallen away. We've had multiple boardups done to these properties. Go ahead. A ceiling and drywall have fallen and broke and there are broken windows. Unsecured structures have created a nuisance. Accumulation of trash and debris. Unsanitary conditions throughout the property. I wonder what Jefferson Avenue unoccupied unsafe structure has become a safety hazard in a nuisance facility.

That's a different property. This is Sorry, there was only three on that one. Um yes, but there have been multiple um code enforcement cases on the property. The pre structures in question have had fire small fires within them. Uh the structure that is that we're not addressing is currently occupied by Magdalena. She's uh her mother. Um so with that I'll stand for any questions.

Does the council or city attorney have any questions of this witness? So just to be clear, essentially CB, we would be tearing or we would be condemning and potentially tearing down or at least condemning for now the two side properties and the one that Magdalina lives in would not be torn down. Correct. The condemnation would apply to the property which is the lot. Okay. Uh but we are not condemning the occupied structure itself. We're doing the 506b and 506 C. Okay. Um, this is to the owners. Do you have any questions of the witness since you're representing

the podium? Okay. One of the houses was burnt, the one closest to the alley. The other one wasn't. So, what's going on is that the roof is falling. Yes, we know they're in disarray. I my fantasy was to fix him eventually, but that is not going to happen. Um, so I'm I'm not going to fight the I'm not going to fight the condemnation and the tear down. Uh, the only way I would fight it is if I won the lottery and I could fix them. Yeah, but that's not going to happen. Um, Weller and Mr. Mayor, can I get your name, please? Oh,

my name is Sandra Martinez. Okay, thank you. Okay. Thanks. Thanks for your questions. Um, Mr. Stra, do you have any other witnesses that you'd like to bring up testify? I do not, Mr. Mayor. And is there anyone else that wants to testify in support of the condemnation? Mr. Mayor, I'm sorry. I wanted to ask the question. Yeah, you can. Yeah. Have we verified that there's no risk to the occupied structure if we are demolishing those other two on the same property that's not going to affect anything?

Yes, they all they all have separate utilities. They're all separate structures. Uh so during demolition, you know, the general contractor, whoever it is, would take measures to make sure that house is safe and secure from from any um demolition that's been done on the site. So if they'll still have their utilities, they'll still have their electric, their water, there's sewer service. It's just getting rid of the structures. Okay. But then in that case, the the lean against the property as a whole would then put the property in the name city. We acquire that property with a tenant. How would that work?

Uh no, the condemnation doesn't we'd have to go for to foreclose on the property. In this case, um, we're not looking to do that. We're in hopes that we could enter into maybe a payment plan with the owners to gradually pay off the leans and the the the cost of the demolition. Uh, so we don't want to gener we don't want to acquire the property from him and displace anybody. That's not the intent. The intent is to get rid of the structures that do pose a threat because it's very unsafe for the current occupant that lives there. Now she's an elderly woman. She lives by herself. And these, you know, they become they attract bad stuff. Vacant structures. People break into them. They party. They do bad things. We don't want that to happen. So that's not the intent. We will have to lean the property per per the law. you know, we can't just give it to them, but we can enter into payment plans or something like that with the city attorney and the city manager and work that out.

And then if the property owners failed to pay on that payment plan, I understand that's not the intent, but there's a possibility that that could happen. Correct.

Absolutely. Yes. And that I would defer to our legal department to say what happens next. we can effectively stretch out the life of the lean if we replace the lean with a mortgage and um a promise to pay against mortgage. Obviously, the mortgage would be in the same amount as the demolition lean would be, but that could allow more time for payment. It could reduce the monthly payments. Uh that's a possibility. The one thing we can't do is just walk away from demolition costs.

Do do we know what those costs are? We don't have any hard numbers right now, but just with experience and doing this for so long, structures of those size, you're looking at the first thing we have to do is do asbestous testing. If there, and that's per state law, New Mexico Environmental Department does require that. Um if there is asbestous present then we have to do a speestous abatement. Uh so that's kind of costly. And then to tear down the structures um probably around the 15 to $20,000 range. So each one I'm I'm assuming total we're looking about maybe 40 to 45,000

each. No for both of them. Good. And that's just a rough guess. you know, might be might be less.

Um, can we I have questions further. I have question. Can we bring her back? Um, can you come back up please so we can ask questions? Um, you heard all that and this payment would be made by your mother and No, it's going to be by me. Well, what's going on is I will get help. Um, I will probably end up doing it because I know you can't meet the payment. Neither can your mother. So, what what

I can I mean I can make most of it if I my plan was okay. Um, I could probably do about $400 or $500 a month. But, you know, I thought honestly I thought it was going to be 60 grand. So, it might we don't know. Yeah, we don't. But the good news is that those houses are adob matters a lot actually. Does it go damaged? Becauseensive

the the what they test for is asbestous and lead paint. If it's just lead paint removal that's not as expensive as as removal. I mean it still is a little bit but not not as near as intensive as asbestous. being that they're adobe, the likelihood of there being asbestous. You know, you look for things like floor tiles, insulation around pipes, uh some of the like the texture in the ceilings at the time, they had asbestous in them, things like that. So, if none of that's present, it's it's in their favor that they're adobe. It might drop the price for

I remember. Okay. Most of the house is are adobe. I do remember in the 80s when they were refurbished, they were refurbished. So I my uncle did own a construction company, so he was up to par at that. I mean, he was. So I don't I don't think there's going to be that much suspensive. And some of the the second the middle house has wood paneling, very valuable wood paneling that that it could be reused. you know, anything they want to save from the structures or take out, that's totally fine. They could do whatever they want, salvage whatever they want. We'll give them plenty of time to do that if that's what they want to do.

Miss Martinez, is your mother in favor of the demolition of these other two properties?

It hurts her, but she knows. We know the one by the alley has to come down. Now when the second one she she doesn't want it tear down, but we're I mean the thing is I'm going to be honest. The problem is is that if if it was just my mother, the owner, I would just jump in, which was my original plan is was to move back home instead of using my since the property is paid for was use my salary and rebuild them. And it was possible. But since there's two owners, if one if my mother passes, I'm out. If Martha puts in money, you know, you know, she passes, she's out. So, it's just complicated because they're both allergy. We're in We are really in the waiting game. Me and my cousins are really in the waiting game. And yeah, but there's they're I mean they're live, they're healthy. I just don't want my mom out in the cold.

Yeah. And is it possible that your family might be able to contract uh somebody on your own to demolish the one property? Um we probably could. And actually, this is going to hurt, but if they were to be fixed, they would be livable because all they have to do is remove that new stuckle. But I know they the middle house could probably be refurbished and somebody could live there. It just has to. The structure, the sec the middle one to me, the structure is more sound and it they could be fixed, but I can't. It's not going to be overnight. It's not going to be within the next month. It has gonna it's going to take time.

Okay. And I have another question. Mine's Who are the actual owners? Is it Magdalena and Martha? Yes. Those are sisters, right? Yeah, they're sisters. It's really lured this passed away and then Josephine passed away. Um, we haven't we did tell um the county that Josephine passed away and I thought they would remove it because it's been more than a hundred years. Lord this we could just get the death certificate easy and I can have her removed. Yeah.

I have a question ma'am. Do you know whether the current owners own as joint tenants or as tenants in common? I do not. Um, it's probably they're just joint owners. My grandfather back in the maybe in the 40s, maybe in the 50s put all the girls on and my and then we we had to get my uncle removed because what he did to that that property, he never looked like that. But anyway, back to the point. They they're just co-owners and Martha lives in Garco. Thank you.

Um, any more questions for CD or for Martinez? Anyone? You can go backwards. Um, is is there anyone else that wants to uh um see me, do you have any more questions for the witness? I do not. Okay. Actually, Mr. Mayor, I do have an additional question. It's it's hypothetical, but it might be helpful to the witness. Could you say I apologize?

No. No, it's assuming a demolition cost of about 40 to $45,000 and assuming um a debt that yields somewhere between six and 12%. The statutory rate is 12% interest. Yeah, but we may be able to deal with that. Uh I think the property could cash flow and you could advertise out the debt uh at about $500 a month. Is that something that you think you could do?

I probably I would struggle, but I would have to I would have to find a way. I would just have to find a way. I mean, I was at 6% it would amortise it around $300 a month. Is that something that that is something I can do? Okay.

That is okay. Is there anyone else that wants to testify in opposition of the condemnation audience? We've now heard all the evidence. Would council prefer a summation of the evidence by the parties or does council have a complete understanding of the issues and wish to proceed to deliberations? and we're asking. Thank you.

Um, it is now time for council to deliberate and come to decision in this manner. Um, do I hear a motion to approve or disapprove resolution 2026-44 declaring 709B and 709C South 6th Street amended to the public comfort, health, peace, and safety and requiring removal? I'll motion to approve resolution number R20264 condemnation of real property located at 709B and 709C South 6 St. Lordis, oh, excuse me, street Rosales, Magdalena Martinez, Martha Gaveo, Yosephina Rosales. Um, but I'd like to add in there that if that happens, we work with um a 6% on the payment plan so that it's affordable for the owners.

A reduced interest rate. A reduced interest rate. Yeah. Um, do we have second? I second. Councelor Piano. Yes. Councelor Molina. Yes. Councelor Yazy. No. Councelor Garcia. Oh gosh. I don't know. Yes. Okay.

Yes.

Okay. The next one we have is going to 100 West Jefferson Avenue. The owner is William Romero. Um, and he is the owner for record for 10 one, excuse me, 100 West Jefferson Avenue. Is Mr. Romero present? Safe to say no. Okay. Um, so we'll we will proceed just like before with testimony from city staff. Mr. Strain, would you please come to the podium and present your testimony and any other evidence you wish to counsel?

Thank you, Mr. Mayor. Again, certainly property containing a P a principal structure dwelling principal dwelling structure located at 100 West Jefferson Avenue, G, New Mexico. Further described as lots nine and 10, lot three, Richie edition has fallen under such disrepair with the lack of regular maintenance and fire damage that it has rendered the structure a hazard and a threat to the public health safety and welfare. To date, no action has been taken by William Romero, owner of record of said property as shown on the records of the McKinley County Clerk to repair or remove set structure from the property.

Survive. uh building a factor and co- compliance officer city of Gallup have determined that said structures so ruined damaged and dilapidated and said premises so covered with ruin rubbish and wreckage and debris that the amendments to the public comfort health peace and safety. Uh backup documentation is included in your agenda packet that you have photos to present council. One sh While we're waiting, I I just to brief the mayor and council that we did make physical contact with the owners, let them know of the hearing tonight, you know, send letters out so they were aware of the meeting.

Great. Thanks. Can you give me their names? Okay. William Romero and William Romero's all the only one on the property card. While we're waiting, Mr. Trainer, can you tell us to was he was he occupying the house at the time of the fire or was it unoccupied? You know, you know, I'm not sure uh if they were occupying it at the time of the fire or not. It looks like it probably was occupied. Somebody was living there at the times. I believe Yes. And how long ago was the fire? Uh 2019.

So it's just right after

is this property salvageable in terms of um here we go renovating it. There we go. I mean I saw the picture.

So unoccupied and unsafe. This is at 100 West Jefferson Avenue. structure is unoccupied, unsafe, and has become a safety hazard and nuisance to the neighborhood. Fire occurred in 2019. Owner pulled a demo permit in 2019, but very little was done to abate the structural damage. Um, they removed some stuff from the inside and I think took out some sheetrock and that was it. Nothing else has been done to repair the structure since 2020. The utilities are disconnected. Structures tagged unfit for human occupancy. The owner has managed to keep the structure secured. Uh structure is hazardous and unlivable and the structure is unsafe and damaged beyond repair.

Next slide. Uh damage from the fire that occurred in 2019. Next slide. Uh severe damage from fire needs new framing, walls, insulation, drywall, flooring. Major repairs needed to electrical wiring. Extensive smoke damage throughout. Jeez. Next slide. Uh the property has come a storage area for personal items. Next slide. That's it. That's not possible.

So the recommendation is to condemn it and tear it down, demolish it. That is the recommendation. Yes. Council and our city attorney. I have any questions this? Sorry. Thank you. Um CV. So um is it salvageable? Like the first one that we were talking about is this repair.

The first one didn't have fire damage. Whenever you have fire damage that compromises the the structure itself, it's very costly. You're looking at the money that they would have to put in to repair, remove the fire damage material and repair that would be worth more than it costs more than just to tear down and start over. It's really notable.

I believe I was talking about a woman about this property for couple of years. I don't remember the gentleman about the fire wanted her home back. She had the insurance pay um that she wanted home, but I don't see a woman any kind of woman. So, I don't know if it's even the right one I'm talking about. But yeah, she she always came with him to Okay. But he's still he's still

so some of these homes that we've wanted to try to rehab or you know I just told her since co we used to have world changers we used to have uh habitat for humanity we used to have all these organizations before co when co came all these disband because of now some are coming back some organizations to so I was hoping this would be one of the homes that we could uh salvage. It would be nice. They are they they they couldn't afford it.

Yes, I understand. Uh and you're right. Back in the day, we when Habitat for Humanity was still functioning, we would condemn properties and level them and then we donate the properties to Habitat and they would build structured houses and they and that worked out well when they were in operation. Since then, nobody has stepped up to do that. So, um, like I said, unfortunately, this this structure is beyond repair. Um, it's just not financially feasible to do so. Um, and the longer it sits, it's just going to continue to deteriorate and and uh become a hazard. It's just

Okay. I I'll just try to host this another way hopefully. Yeah. All right. Thank you, mayor. Uh, has anybody had a conversation with Mr. Romero on this? Can you tell us about it?

Councelor Nikki Lee, planning manager. So, our building inspector, John Margus, um, he did make contact with Mr. Romero after the fire had initially happened in 2019. Uh, since then, we really haven't had many code enforcement cases there. they've been pretty cooperative. Whenever there's something going on, they're quick to go over there and secure it. Um I believe the last time we were there um in December, they we had just went to take pictures and I think the neighbors called them and then they weren't living there obviously, but they pulled up and they were um willing to give information and let us take pictures inside. But um from the way I understand it, when we went last week to deliver um we do it through certified mail and we are hand delivering. when we went to his home um I believe he lives in um Mossman and when we went to the door they said that he wasn't mobile enough to come to the door so we didn't get to speak to him face to face last week but um like counselor Garcia had said there was a lady there I'm not sure what her relation is but she was kind of the in between person and we asked her if she could bring him out and we could talk to him but she said um no that she would just tell him and um you know he signed for the letter But um we have talked to them. We they when we ask them to do things they do. So

is there any has there been any conversation about them being able to fix up the home for in the future or No, not

I know they've contacted our office saying that they do want to fix the home, but the only thing that happened like CB had said was they pulled a homeowners um demo permit and very little was done with that. And mainly I think they were just trying to um get the furniture out and just get whatever belongings they could recover and very little was done inside. But I don't think they have the means to you know do it and um I mean they want to and they call every now and then and say but that's about it. Okay. Thank you. Um, is there anyone else that wants to testify in support of the condemnation? Then I just want to make sure is there any more questions from council, city manager, council members in regard to the the the support on

I may there's no other questions. I would like to make a motion. Ohio on the other side. Oh,

so Mr. Romero is not here. You know, we'd ask him to come to the podium and testify. Um, but he's not here. So, um, we can't really ask any questions. So, I'll just jump down to the part that says um is there anyone that wants to testify in opposition of the condemnation here to that? And with that said, and there is no one testifying in opposition. We have now heard all the evidence. Would council prefer a summation of the evidence by the parties or does council have a complete understanding of the issues and wish to proceed to deliberations? Is it is now time for the council to deliberate and come to the decision in this manner. Do I hear a motion to approve or disapprove resolution number 2020 2026-3 declaring 100 West Jefferson Avenue a menace to the public comfort, health, peace, and safety and requiring removal.

Mayor, um my district, I'll take responsibility. I want a motion to approve the resolution R206-3, the condemnation of real property located at 100 West Jefferson Avenue. We need a second. I second. Councelor Garcia, yes. Councelor Molina, yes. Councelor Yazy, yes. Councelor Kenny, yes. Mayor Depali, yes.

Okay, we'll go to our next and our last case. Um, this is resolution number 2026-2, condemnation of real property located at 105 Mine Run. The owner is JVM Properties LLC and in care of Teddy A and Kathleen Sour. Um, the JVM Property Properties LLC cared or Ted A and Kathleen Sour are the owners of record for the 105 mine run. Are Mr. and Mrs. Sour present? Yes.

Um, okay. Is the owner of the property present also? Yes. Okay. Thank you. You don't have to stand up for the thing. All right, Mr. So, good evening. Will you will you will present your testimony after city staff and other witnesses in support of the condemnation. Um, Mr. Strain, would you please come to the podium, your chair, and present your testimony and any other evidence you wish the council to consider?

Thank you, Mr. Mayor. Uh again this says uh certain rail property containing a commercial garage structure located at 105 mine run further described as the north 250.09 ft of block 4 Thomas Borman replat has fallen under such disrepair due to a lack of regular maintenance and fire damage that it has rendered the structure a hazard and a threat to the public health safety and welfare. To date, no action has been taken by JVM properties or Ted and Kathleen Sour owners of record of said property as shown on the McKinley County Clerk uh at the McKinley Clanics clerk to repair or remove said structure from the property. Again, the building inspector and code compliance officer have determined that said structure is so ruined, damaged and dilapidated and said premises so covered with ruin rubbish, leakage and debris that has become a nuisance to the public comfort, health, peace and safety. I have backup documentation in your agenda packet supporting this. Um, I have pictures to present to council 105 mine run. It's an abandoned burned unsafe structure that's become a safety hazard and a nuisance to the neighborhood. Previously used as an auto repair shop. The main fire occurred in 2021 and most recent fire occurred in 2025. The utilities are disconnected. structure is tagged, unfit for human occupancy. The owner has had problems keeping the structure secured. Transients continually break in. At the beginning of 2025, transients were sleeping in several inoperable vehicles parked in the property. A total of six code enforcement cases. A total of 11 letters have been distributed to the

owners of record from 2012 to 2026. Uh from 2020 to 2026, there have been 24 calls for service from the police department. Uh structurally unsafe building and is damaged beyond repair. Next slide out. We need to upgrade our computers in here. Feed the squirrels. Then you Just been Here's the rest of testimony on that. We'll have to wait pressures on the flash drive. Help me. Bring it.

Save the day. Hey, that was Thank you, Robie. Major fire damage in 2021. Exterior walls are charred and extensive smoke damage. Next slide. The roof structure has collapsed and as a result has compromised the structures integrity uh compromised the structural integrity of the structure itself which may result in total collapse. Next slide. We trash and debris damaged fence and graffiti. Next slide. That's it. I believe uh PD can testify that we had several instances where there was extensive drug use taking place on these properties.

Um hang on real quick. Uh does council and and the city attorney have any questions of this witness?

So the recommendation is to condemn it. Staff recommendation is for condemnation of bill property and order of the removal of the structure of the ruins rubbish requisite debris as mandated in resolution number 2026-2 under the authority granted by the municipal to the municipality by NMSA 1978 chapter 3 article 18 section 3-18-5 and with that I'll stand for any questions. Any other questions?

The attorney Mr. strain. Do you have any estimate of the average amount of staff time spent on cases such as the cases you've had with respect to this process? Average staff time for just this particular one or just in general? Well, you say you've had six cases. How many hours per case will give us enough? Uh Nikki Lee, the planning manager who is also the um supervisor of code enforcement would better be able to answer that better. Thank you,

Mr. Een. So, we've had six code enforcement cases there to date. That doesn't sound like many, but you have to keep in mind that in between we have the general first, second, and final notice. And with this particular property, we did um work with the property owner, Mr. sour a couple of times um to where he would file an extension. We would try to work with him, give him more time. Um then he would board the property, then a couple months later, you know, would get breaking broken into again and then um maybe he would get cited for the inoperable vehicles or for the weeds and then he would file an extension. So it was it was prolonged and I would say on average about maybe 10 hours per case. Um, you know, our officers are going by doing patrols, taking pictures, coming back, pulling their research, doing the property cards, uh, creating the PDF forms, organizing everything. Um, that includes taking notes when they have, uh, one-on-one contact with the individual, telephone calls, we have emails, um, all that kind of stuff. So, it is pretty, um, intense the amount of work that they have to do out in the field. um the paperwork. Um we are pretty hard on them about doing their paperwork. So um I just know that this property they have tried their best to keep all their ducks in a row and we've had um cases here um dating back from uh 2020 and or I'm sorry from 2012. So back then we didn't have um an advanced system like we do now. Now we have everything electronic. It's all PDF and we can easily pull records for the records from about 2012 to 2015. We just had um it looks like a typewriter kind of thing. So, um we've really upgraded.

Thank you.

And council, I'd like to give the recommendation from the city manager's office. um building is is is beyond repair does need condemnation. But but in talking with the owners and and new owners and ones carrying the mortgage, they they are very willing to to have it removed and and understand the necessity. And I would recommend the condemnation, but given them uh whatever time the council wishes at minimum 90 days to to have it torn down and and do it at their expense. That way it's not on our expense which we then have to foreclose to try to recoup or have them pay.

Mr. May, pardon me. Uh the there are provisions in that in the for that in the resolution. The first the first action is turning back over to the property owner and giving them the chance to debate the issue themselves. In this case, if they submit a demolition permit within the time frame in the resolution, that's fine. If you want to give more time, we'd have to amend the resolution, but I would I would strongly recommend if they're willing to tear it down and do it themselves, that's absolutely fine with us if they want to do that.

So, let's see. Thank you. So, with that, if there's any are there any more questions of CB train for um if not then we'd like to call Mr. Mrs. Sour into the Do you have any questions for the witness? Good evening, councelor and mayor. My name is Ted Sers. I am the owner of Foreign Automotive and I was at present when the fire happened in uh the end of 21 right before winter. Uh it was October uh 21 um at the end 18 October 18th 1921 or 2021 sorry the uh fire happened um at that time. Uh

you know let me let me hang on real quick. So, did you have any questions for the witness at all? That's No, I don't have any questions. I do want to state that the uh the time frame and everything that they're talking about, I would like to interrate my point of view on that. Is that possible? Yes, it is. Because I think that it's a little bit skewed, but at the same time, I just want to You bet you. So, um I just want to make sure we're on the statement. Um and then do you have anybody else that you wish to testify on this another matter? All right. Is there anyone else that wants to testify in support of the condemnation?

Okay. Now I can understand that.

Yes. I'm sorry. So the uh I am not against the condemnation. Okay. What I'm against is I just don't want it to um uh so the council understands uh when you're a small business and you just had a fire and you try to revamp. The fire took place mostly in the storage room and the um the office area. So our bays were okay and the roof was gone. That's what the pictures are, the storage room and the roof. Yes, the roof is collapsing in. I understand that the structure itself is just a barn. It used to be a barn back in the late 50s and all it is is tin on the outside and sheetrock on the inside. That's what's happened. Um, so I'd know that it's there's not much to the structure. So now your question is probably answering why is it taking so long when you're trying as a small business try to revamp. We purchased the property. We're trying to do that mortgage. We're trying to get that all settled in. So, we're just strug struggling to get to going. I've had um they're they're saying that they we had uh vehicles in the bay. We were trying to get a hold of customers to try to come get them because I don't know if you're familiar, it is not easy necessarily for a mechanic to get either the car's title. It's easier for a junkyard, easier to do it, but then you have to do it legal or else you are going to pay for that, too. So, those cars, I was trying to do it legally, get them out of there. Um, chain link fence does not hold anybody. It's just for looks. I guarantee it. Especially with transients. Um, they just cut through them. Uh, they did uh uh uh citate me for some weeds and I took care of them immediately. They did site me for um the

abandoned vehicles. They're not in the pictures because I took care of them. Uh we got rid of them. We did it legally. We did everything structured that way. It's not you can't just it's not a quick fix. So that part of the deal, I apologize to the city of Gallup that I've taken this long. Okay. I apologize. Um but it's been that struggle trying to we lost our technicians right after that. They have to get work. We have to go into the thing. So, we're trying to get technicians. If you guys ever drive by, we have tons of we've had our sign up there for a technician for a long time. Um, that being said, as far as a business, we're just trying to gain it. This year is probably the first year that I can do it. That's why I u made the proposion that, hey, I'll go ahead and tear it down because I can. We were going to do it in o October. And I'm not trying to call on the mercy of the counsel or anything, but I'm just trying to explain. October, my dad really went down and I I had to go help him with my family. So, and we was coming up into winter. I did not know we were going to have this dry of a winter. So, as far as the winter goes, I should have just went ahead and do that, but you have preoccupations. So, that's what we're doing. And I told my boys, we're just going to tear it down in the springtime when it gets warm because obviously it's not that easy to tear down. Now, the reason why I haven't tore it down is because the structure itself is just a barn with sheetrock on the inside. The sheetrock shot, but the outside is skated with tin. And that tin is 1950 tin. It's not the cheap stuff that you go down and buy at Home Depot. You can buy two of those for the one of that. So, I said I wanted to repurpose the tin because the tin is very valuable. Um, especially at the prices. So, I I got some prices for demolition and they were just outrageous. They were in their 50s and 40s, thousands. And I was like, this

is just a barn. But I think it's because it's a commercial building and everybody was just after it. I can tear it down cheaper than that. And so, I've been waiting and waiting. Now, I'm to a point where I say, you know what? if you give me the time, I will do it and I will tear the building down and we'll go that route. Um, as far as the uh the notices, we have taken care of the notices. We have talked to the uh the when they came out and um and their notices are handwritten. They're not sent to me. I do not have any emails that Oh, I I guess I do have a few emails that say you've got a notice, but the the um I would say that uh we have taken care of steps that way. Now, that being said, um I can talk to the uh uh the code enforcers as far as that goes. Again, I it frustrates you as a small business because you can't just go out and just hire somebody. Every transient wants a job, but their job is terrible. And so you you you have to work with that. That's what I'm working with. And that's what I've been working with for the last four years. Um three and a half actually. But that just being said, I just that's why the building has taken so long to tear down. And I apologize. I really do. I really apologize for the because I know that it's an eyesore. I It's an eyesore for my business. So um I want it down just as much as you guys. I just was the time is the time's now. The time's now to get it down. I just didn't want a glean being put on the building or the business because I can't take it down. I just asking for your uh I I proposed that if you can give me at least 90 days and I don't know the statues of the setup, but I can have I should have it down enough that it's not a deterrence or anything like that. Okay.

Well, Mr. Thank you so much. Questions. I'll I'll go ahead and ask the first voice council. First of all, I want to say sorry about your father, Robert. Yeah. Yeah. We've not known him for a long time. Um and then uh if you're satisfied with theation that Frank made, I think that's that's I just want to make sure with the 90 days if you guys work something out. I think

could we do 120 days or is 90 days enough time? Mayor and councel, the statute requires that within 10 days of service of the resolution, the owner commence commence the removal. So my question for you, Mr. Sers, is can you commence within 10 days? Not that you have to complete it, but can you start? Yes. just well it's commencing just getting a demolition fun it's pretty vague and broad

probably splitting errors but I don't know we we could consider an application for a permit you know commencing um the thing is that I got to double check with C just on the record to make sure that we're legal with him tearing it down himself being that this is a commercial structure

uh I believe a contractor needs to do it. But I can check with C who governs and regulates all the cities in New Mexico. It's not my rule. It's not G's rule, state law. Um, and also there's going to be a asbestous testing abatement to be required as well. Um, so just so the owner knows that and he's aware of that. I just got to do some double checking to make sure. And if C says yes, they could tear it down, that's fine. Great. um then they could apply for the permit, but if not, they're going to have to find a contractor. Uh the other thing is we're going to have to have the asbestous testing and abatement paperwork done by whoever is licensed to do it, they'll submit the paperwork to us that it was done, it was tested, and if there was some present, that it was abated. And if there's none present, the way it is now, there's probably none in there, but they still got to at a minimum get it tested.

And we just need the proof of that. So, just want to make that perfectly clear. Um, any other questions? Council, see attorney city manager. Yeah, I have a few additional questions. Did you acquire the property before or after the fire? After the fire. Okay. Shortly after the fire. The one reason it was sold to us was be because of the fire and just the the momentum of what was going on as far as it goes. And do you hold title to the property at this point? Is it in your name or your in your wife's name?

It is in our name as far as that goes. It's a joint deal with an escrow. So, we pay escrow on the property and the property is not so just so you guys understand council that the property is not individualled. The property goes from the um uh the alleyway of Burger King to Aztec and up to the top of the hill. So, the property is one large piece of property. That's why if you look on the on the sheet that they give you, it's like $350,000 value. That's not the property that's burned, just the whole entire property.

You're purchasing the property under an installment sales contract. That's right. I think that I'm not familiar with that. I'm just a simple mechanic. I'm sorry. But you know, is it your understanding paying original owner over time as you make payments gain and interest in the problem? Is that consistent with what you understand the case? Yes. It's similar to it's anthic sale. He has title subject to possible investment. Just wanted to clarify that. Yeah. Make sure

I know that when

I know that when the fire happened that I um was talking to I think the building inspector and he said similar to what CB said. Um and I was kind of I understood some of it but I just building is just a barn. I put the sheetrock, most of the sheetrock I put in. It was just an open barn, but I understand the asbestous states. There's tin on the outside, sheetrock on the inside. But um that might be something that I when things like this occur, the um it was actually used as a storage building. So it's not really I changed it to a commercial. Well, I guess Art changed it to commercial building and he put the two doors in there, but it's not technically a commercial building. If you guys look at it, it's just a barn. It's just a It's a pole barn is what it is.

You occupied it. How long have you been in the building? I occupied that building from 2008 to 2021. So, and we paid we paid rent on that building is what we did. After the fire happened 21 21 Yes. And then we moved next door. But that's that's where the Mr. Yeah. Other witnesses would like to question. Oh, I I I don't have a question. I got a comment. I I just want everybody to understand that the city isn't in the business of taking anybody's business away from them. Understand that.

Right. The only problem I see so far is that we've got situations where gang related activity, drug activity, whatever you want to call it. Uh that's the problem we're we're trying to resolve here, right? Uh it sounds to me like he's more than willing to help. Uh it's just my suggestion that we do whatever we need to do to help him get that done.

Yeah. the uh police um mainly was called by me because again we go back to that legality. Um I am I don't uh I I actually don't even know how to say this, okay? But a lot of times if I'm yelling at a transient because of my color of my skin, I'm considered that way. So that's why I get the police involved. It's just easier get them and I back out and I don't have to do anything. I think that's the way it should be done other than me escorting them out or taking them out. We have fixed the fences when the fences got cut and u we don't block the fences all the time. So, we have to kind of wait until somebody says, "Hey, if you got a broken fence or there's somebody getting in there, but we have not um uh as far as when the abandoned vehicles were there, that's where we had uh issues with drug related stuff." when we got rid of that mostly disappeared.

That's good. And there you're operation's not impacted at all. You're still fixing cars. I'm still fixing cars next door on the other side. Yes. I'm moving to the next thing. So that's that helped me on that side. We still get breakins and I still call the cops. In fact, I mean you look just last week I called the cops because they break into that yard. I can't secure that without something. I got cameras and everything, but it just doesn't stop. So, anyhow, that's that's where the cops are called in is because of that. We had a transient. I will say this, we did have a transient in the yard. Um, and he had a heart attack. Oh my god.

And so that was when we were in the middle of this and we got everything out because obviously we can't mess with that kind of stuff at all. Anyhow, that's that's any other Any discussions? Can we motion to approve this with just an amend asking the question for Okay, you go speech. Yeah, sorry. Um, is there anyone else that wants to testify in opposition to condemnations? Anybody else thought?

Okay, now we've heard all the evidence. Would council prefer a summation of the evidence by the parties or does council have complete understanding of the issues and wish to proceed to deliberations? Yes, I would like to proceed. I just have my question is about if we approve this, can we make an amendment or amendment that um it's passed with the knowledge of CB checking with CD about if it's legally possible, right? because someone approve it and then you find out it's not. Then how does that work? Mr. Mayor, councelor Piano, I don't think it necessarily needs to be put in the resolution because I would have we have to check it anyway. Okay.

When it comes to building the permit submission time and we would just simply tell them, you know, C said, "No, you got to hire a contractor." And at that point, they'd have to hire a contractor. The res all the resolution does is support the state law, okay? and everything that gives you the permission to or the authority.

Okay. All right. Motion to approve resolution number R2026-2, condonation of real property located at 105, Mine Run JVM Properties LLC and care of Ted and Kathleen Ted A and Kathleen Sour um with the knowledge that the property owners will tear down their own demolish their own property within 90 days. I hear a motion to approve the res within 10 days. So that means

not entirely clear. There has to be commencement within 10 days of the resolution. Commencement I agree consist of applying for a permit demolish uh the property. Um, so if that's a friendly qualification to what you were trying to I thought we wanted I thought we wanted it completed within 90 days. Yeah. Then the outside that 90 days starting at that that end date.

I amend my I amend my motion to say that the completion of the demolition is done within 90 days and the beginning starts within 10 days. That better? That's better. and just to put everybody's mind in we just can't we just can't say who's going to demo it at this point. But every that's up to the state

and the way the permitting works is once you submit for a permit you must commence work within 6 months. So they have by submitting for the permit itself that puts the clock in motion and that gives them 6 months to start the demos. So if nothing happens then then the permit voids out and then we start over. That's per building. At this point they don't do anything. We tear it down.

What we're saying here is you're approving that they demolish the structure. In order to do that they have to apply for a demolition permit. as part of the demolition permit. Once they get that entered within the 10day 10day time frame, we'll be in compliance with the state law requirement of commencing within the 10 days. Then they have six months from that date to get it done per the building permit process. Oh, so I can't even say the 90 days because they have six months. We would prefer that they get it done sooner than that, but legally they have six months to get it completed. Third amendment. Uh I don't think we need an amendment. Oh, okay. I don't think so. Motioning. So, seems like

to approve is sufficient. Yes, you sure can. We're a little bit late on the question. Everybody message Joe message. I'm I'm actually the property owner. So, what I want to do is I want to get this straight as far as um you know, making sure that Ted's okay on this thing. So, what I'm hearing now is Mr. Eastston is saying that this thing's got to start within 10 days, 10 days from the receipt of the resolution.

Okay. So, now this is 10 days after Mr. strain gets a hold of CI because no the these these numbers here are pretty screwed up as far as the time frame here. We're bound by the statute. So the statute requires that if a resolution is adopted, the owner has 10 days to commence removing the building structure. We have concluded that you can commence removing the building or structure by applying for a demolition permit. Right.

Planning and zoning. Uh Mr. Stra will take that application. We'll check with state and we'll advise you and Mr. Sers, whoever the applicant is, whether or not a contractor must be engaged to demolition based upon state law, not on the city's law or ordinances. But you will have commenced within the 10 days. Okay. So, let me ask another question. If C says he can tear it down himself, then the demolition permit goes through the city.

Yes. So, if if C says that Mr. Sers could tear it down himself, he'd still permit it through us. he would be acting as the general basic to do it, right? Um if they say he can't, then the general contractor will have to submit it and that six month or the 90day time frame goes out the window because the contractors want going to want to get it done right away and get paid. So those are the two scenarios

given the uncertainty as to whether salary can do it needs a contract to do it. We will treat the application for the demolition permit by Mr. Sers as commencement within the 10 days provided that he makes the application within 10 days. So right now, no matter what happens, he still needs to just do the um permitting right now through the city and then the decision will be made by the state where that permit with the city would go away and now the permit would have to go to the state. No, state will state will not permit it at all. We have jurisdiction over the permits. Either way, we have jurisdiction.

City's the permitting agents. So, I will find out tomorrow if CIB will allow this or not. It just takes a simple phone call. So, I'll have an answer by tomorrow and we will contact Mr. Sour tomorrow. And the only reason I'm asking that is um you know, I've been in business for 45 years. I deal with CI pretty much every day. Um, the city really has no say in what I do. It's all through CIB. This is a little bit different because I'm not in the construction business as far as litigation. So, now that I understand, you know, that situation, then I'm okay.

Okay. Um, slightly shifting the topic. You say you are also an owner of the property or I think you said you are the owner. I'm the owner until the mortgage is paid off or the installment sale gets paid off. Is there a recorded mortgage? Oh, heck yeah. Okay. So, Mr. Sers is not idle and he is not paying on an installment basis. That was his understanding is as I asked him that that's not the case. Correct.

Yeah. We we have a contract in place. He makes a monthly payment sensible and interest. Is that true? Since there's confusion over or at least at least in my mind confusion over who holds title to the property, I would strongly suggest that both of you apply for the demolition purpose. We can't allow somebody who does not hold title to demolish a structure on property that they don't have title to. Okay. So that's since it's unclear at least as far as I can tell right now who has titled either Mr. Sour and his wife or you both of you should apply to the

Okay. Okay. Thank you. Thanks. Thank you message. Appreciate it. Um is there since we um went back is there any other anybody else in the audience that has anything to say? If not, we'll continue with our uh motion to approve. And I think it was just a clean motion to approve the resolution or the ordinance or resolution. Sorry. Okay. Um uh do we need a storm? Are we good to we got enough to still on the floor? That's good. Yes. Second.

Yeah, we have to have second. We're just going to we're just going to second the the resolution as it is without any amendments. Are you fine with my original motion or what? Do I need to start over because then we had comment? You had added on to the motion, but for the record, let's go ahead and start just with the adoption of the motions. Okay. Or I'm sorry, resolution. Motion. It's getting late. New new motion to approve for resolution number R2026-2 to condemnation of real property located at 105 Mine Run JMV Properties LLC in care of Ted and Kathleen Sour.

I second. Councelor Piano. Yes. Councelor Molina. Yes. Cuz Garcia the following. Yes. Okay. for that

and fielders and everybody um that comes to almost the end and there's any comments by mayor and have those now and I know everybody I'll just go first I know everybody's pretty excited uh the federal government and our President Trump signed the energy and water bill which gave the city of Gallup $76 million cap. Thanks to every special thanks to Dave for all those details putting this uh on on everybody's radar to make sure that it is signed and underway and the also the legislation they got more money to continue to do the project.

Yeah, that's great. That's huge. That's very important for us. We need water. We're our next our next item though of course we're not done is the operation maintenance and replacement contract. That's our next negotiations which will take quite some time. Um without anybody else have anything I have no comments. Mayor comments. Yes.

Um I just wanted to say uh bring yeah commend the the organizers of the Martin Luther King Day march and event that um the city was part of organizing well and I know the mayor and councelor Garcia were both there with me and it was a beautiful day. I do hope that thank you both for coming out and also hope that um you'll be able to grow that event next year kind of bring it back up to people's minds the front of people's minds to come out and join the um events that day. Um, also wanted to say that remind everybody that this Friday is the first community meet and greet event 5:30 at the Amoro Event Center. So the council and I'll be there to talk with community members to meet people and answer questions and hope that people will remember to come out this Friday and visit with us there. Um and then next week also we will all be traveling out to Santa Fe for the Gallup McKinley day and um some other events in Santa Fe. So several I believe staff from the city as well will be heading up to Santa Fe to the short legislative session that is happening. We're looking forward to that. Um given the uh national news in the last week, I had also asked if the city manager would share a little bit when it's his turns on our police department and our position on federal uh immigration enforcement actions. So we will just want to put out there that that's coming from him but not from me. That's all. Thank you. Anybody else?

Yes, sir. I'd uh like to again thank Wayne Gillis for the report he gave us tonight. That hospital is near and dear to everybody's heart in this room, in this town, in this county. And uh they've done an extremely good job of turning that hospital around. um wherever his team is. It's not just Flint, I know, but uh there's a it it included the city, it included the county, you know, it was just a very proactive team thing that happened there. And I think we ought to all be proud of that hospital and see if we can turn things around with our medical field. If we have a chance in Santa Fe, trial lawyer, I hate that word anymore. It's hurt us so bad. It's hurt so many small towns in New Mexico. It's it's bad. Uh and I say that because I'm at the age where I really need a doctor and there's none none around. You know, it's a longevity thing. It's a real thing. Uh also tonight, it's probably one of the toughest meetings I've ever been in. We're having to make decisions here about people's property, people's homes, uh, you know, and and it was tough, but we got through it. We've never done that before. We've never been in this situation before. Uh, but my hats off to council. We got through it. Thank you. Appreciate it, Mark. Appreciate it.

No comments. got um I'd like to thank um councelor Yazy for um asking me to to speak on this. Um you know, we we have no organized ties with ICE. Um we we don't participate in in their operations. We um we we want our citizens to know that um they're safe, that we represent everybody in Gallup. Um we we really want to the undocumented um people here to know it's safe to come forward if they need to come forward. Um being extorted, uh sexually abused, domestic violence, anything like that. Uh don't be afraid to come forward. Um we we have traffic stops or if you come forward we don't ask what your nationality is. We we don't ask if you are documented. Um uh we we treat you as a individual. We treat you with rights. We treat you with due process. On the flip side, if you do commit a crime and we arrest you, um we do not again um ask for your citizenship or anything like that. Now, if you are a criminal in some other capacity that when you are arrested and are in the jail and they do a background check, it might flag you because of those crimes and and and that unfortunately is out of our control at that time. But we want you to know um we look at all individuals. We are a

melting pot. We are a town built by the Native Americans and the immigrants um the mines um many of our families um building the town um immigrating from foreign countries. So, we don't care your nationality, your your country. Um, and and we're we're not going to go looking for you, and we we just want you to know that the safety is there, and you know, take care of yourself and and if you need to come forward and you're scared to talk to the police, come to city hall. Um, come talk to me. I'm not a law enforcement agent. Um, I'll I'll be happy to to advocate and and work on your behalf to to what what you need to to keep you safe and and be productive in our community.

Thank you. Thank you, Frank. Let me just add one note to that. Um the city, state, county have no obligation whatsoever under federal law or any other law to assist, take direction from, cooperate with, or otherwise have anything to do with ICE or Border Patrol.

Thank you. Thank you. Motion to dismiss. Second. Councelor uh councelor Molina. Yes. Councelor Piano. Yes. Councelor Garcia. Yes. Councelor. Yes. Mayor Nepali. Yes.