City Council Work Session Summary

New $34 Million Las Cruces City Hall Building
City Council work session meeting held on Monday, August 9, 2010
1. The pet of the week was presented.
2. The Council and the City Manager recognized Dr Sutter for his service to the City as Director of Finance. He was presented the Mayor’s Distinguished Service Award and a plaque by City Manager Moore. Councilor Silva commended him for raising the standards for all who worked around him.
3. Brian Denmark, Director of Facilities made a presentation to the Council on square footage analysis.
· The City has more than 1 million square feet of building space. The average building age is more than 20 years and they have not been adequately maintained.
· The City currently has 300,000 square feet beyond the budgeted maintenance funds
· The industry cost standards are $4 per sq ft. The City allocates $2.8 per sq ft which results in $2.4 million in underfunded maintenance.
· Provided an option to eliminate 300,000 sq ft which included E.Mesa Recreation Center, Apodaca Pool, Club Fusion, La Casa Community of Hope and other facilities.
· It will cost $750,000 to demolish the old City office center at the corner of Lohman and Alameda.
· He listed City owned facilities rated as in poor condition which included the Life Center, Frenger Pool, Amador Hotel, Felder Memorial Safe Haven Teen House, Burn Lake Storage, and other facilities.
· There is 143,000 sq ft of underutilized space.
· There is 100,000 square feet of space owned (and maintained) by the City but operated by non-City entities such as Community of Hope, La Casa, DABCC Learning Center, Airport, Rio Grande Theater, Las Cruces Visitors Bureau, Animal Service Center, East Side Community Center and other facilities.
· David Delahane discussed NM State tax credit for construction of low income-affordable housing as a method of reducing some of this inventory. Tax credits up to $.50 for each $1 of value (property value, demolition costs, etc).
· Mr Denmark presented 4 options for consideration:
· Destruction of (181,000 sq feet)
· Consolidation of agencies
· Sell excess buildings and/or discontinue leases
· Turn over City buildings to using Non-City occupants (La Casa, Community of Hope, etc). Note most of these organizations do not like this option because they will have to assume the maintenance costs of them.
· Councilor Connor wanted to know how much the utilities cost the City for these properties. She recommended Mr Denmark’s old portable building be used to replace the unserviceable portable at the Animal Shelter.
· Councilor Small wants the staff to focus on consolidation to identify the excess buildings. His priority is for recreational facilities maintenance and wants the City ot lease lands for renewable energy projects. He wants all proceeds from sale or lease of City property to be put into a maintenance rehabilitation fund.
· Councilor Thomas wants to know what the budget impact would be by each option and believes each building and its use must be evaluated individually.
· Councilor Sorg expressed a concern that the City is not efficiently using City owned properties and wants the City to consider selling vacant properties but will need a unique recommendation on each.
· Councilor Silva wants clearer rating system on building importance and associated costs. He said he was aware of several potential buyers for the old City Hall.
· Councilor Pedroza stated her support of affordable housing but was concerned that any consolidation of services could adversely impact or inconvenience the users of that service.
4. Patrick Peck, Director of South Central Solid Waste made a presentation on Curbside Recycling. His proposal included bi-weekly curbside recycling. Current recycle revenue is $805,000 per year and to implement his proposal it would require an additional $879,000 per year.
· He provided three options:
1. All 28,000 City households pay $4.98 per month including seniors (who currently do not pay)
2. All households pay $5.69 and seniors pay $2.59
3. Pass on the proposal and go back to the drawing board.
· Residents must participate and cannot opt in or out of the recycle program
· The program cannot handle all types of plastic or glass. It will accept multiple types of paper and cardboard
· The demands for recycling are the largest volume of calls to SCSWA and most come from District 6 (Thomas)
· There was some discussion on changing the rates and frequency of the “grappler” but the Council was informed that this would need to be a separate action by the Utility Rate Board and not the Council.
· The land fill site (600 acres) is in the Corralitos area and 54 acres are currently being used.
· Accountability for the program comes from the Solid Waste Authority Board which includes 3 Council members.
· The Council directed him to move forward and a formal vote will be taken by the Council at the September 7th Regular Council Meeting.
· The Council was reminded that they have not authority to increase rates or make rate recommendations. This is the authority of the Utilities Rate Board
5. Christy Logan, Las Cruces Economic Development Council provided an up on Local Economic Development. The goals and assumptions in the 2004 plan adopted by the City are still consistent and have been met but not due to actions by MVEDA. The 2004 City Local Economic Development Plan needs to be amended to include the Cultural component that was added by the State Act. A successful example of this program is Sapphire Energy which bought 10 acres in the West Mesa Industrial park and was given an easement over the adjacent 90 acres. Upon investment of $6 million and employing 30 Dona Ana County residents the other 90 acres will be deeded by the City to Sapphire Energy. The have met the invest goal and currently employ 24 people.

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