Thank you.

You may be seated.

Go ahead and call this a meeting to order.

Please silence all electronic devices.

I'm going to take that advice myself real quick.

And if you do need to take a call, please step out into the uh lobby.

We're outside.

And let's see here.

For the record, I'm gonna go ahead and uh call the roll.

Counselor Dabson.

Present.

Thank you.

Counselor Linantine, I think he is being he's gonna be here a little bit late.

Counselor Tyler, who is online?

President.

Thank you.

Counselor Weimer.

Present.

Councillor Colbrith, I think is in route as well.

Counselor List present.

Thank you.

All right, moving on to our first agenda.

There is no public comment on this uh work session.

Um we're gonna go into the first item on the agenda, Rio Rancho Public School Bond presentation.

Is are they here yet?

No, Mr.

Mary do not believe they're here.

Can we reorder the agenda, please?

Okay.

Then we will see if Mr.

Geisel's ready to go because RPS is not here.

So we need to go ahead and bump you forward for the uh well I uh is it you or or uh director Yara Okay.

Are you ready to go, Director?

Okay, perfect.

So we're gonna get bump you forward.

It will go ahead and do the uh enterprise resources planning or ERP update.

Can we work on a big problem here that you have or I can is your microphone on there?

Is that better?

There you go.

Sorry, I thought it was on.

They want you on the record so they can hear you over the live stream.

Mr.

Mayor and Counselors, um, just want to go through some information about the ERP project.

The city has been saving some money up and planning this project for several years.

Um just want to talk about what ERP is and what it will mean to the city of Rio Rancho.

Um ERP stands for Enterprise Resource Planning.

What is it?

Okay, here we go.

Sorry about that.

Um so ERP is um again stands for enterprise resource planning, and it's basically a system of software that integrates and manages all of the core business processes of an organiz an organization, um, mostly focused on finance, HR, um, and um purchasing and supply chain, but um other modules can be added to an ERP system to meet the needs of the organization.

Um, the ERP systems are replacing a collection of decentralized and legacy software applications that have been connected through some ad hoc processes, um, back end IT coding um that eventually becomes obsolete and not um supportable.

Um so just kind of a snapshot of what a system before ERP looks like, and I'm I'm I apologize if the picture's kind of small, but just imagine each of these functions operating in their own bubble with their own software, their own system, their own database that don't talk to the other functions.

ERP will change that by creating a single database of information that all of those modules and functions can access in real time.

And um so everybody has the same information at the same time.

And so ERP, like I mentioned, is a centralized database uh essentially.

Um that ensures that all of the users have access to the same information, and they um they can share that information without effort.

Um involve a modular structure, so uh for example, the city of Rio Rancho is going to be purchasing several modules of the ERP system we'd be implementing, a financial module, an HR module, a permitting and licensing module, everything that the city needs to operate as it does today.

We can also purchase modules that aren't implemented yet, but we think we might need them in the future.

For now, and I'll go over our current negotiations with our ERP vendor and what that will look like for us.

Again, because all of the data is in one place, all of the business processes can be integrated with one another.

So for example, if finance has to receipt some money for a utility billing account, we have to go to the utility module right now in our system, look up their account, then go into our financial system separately and receive that money.

An ERP system will allow us to do that without having to go to two places, it'll be faster, more efficient for everybody.

ERP systems, of course, have to have some kind of centralized interface that people can access.

Usually it looks a lot like your phone with apps and windows that you can click on and go to the different modules.

Access, of course, will be managed by an RTR IT department depending on what your role is.

The ERP system has very robust backend security to let us do that.

Customization is something that we often hear about an ERP system implementations.

As the technology is has progressed in the last probably 20 years, they are shying a little bit more away from customizations.

They are trying to encompass all of the needs within the base software so that if there were customizations, they might be prohibiting us from updating the software in a certain way.

So we want to make sure that everything is not too customized that we can't then update it later.

Because everything is in one place, you can query that data in a billion ways to get the information we need for the decision makers.

Most of the modern ERP systems take into account all of the regulatory environments that especially governments operate in, so taxes, all of these things, are built into the system already.

And of course, we're going to be spending the next probably two years implementing the system, building it out, testing it, and then going live with it.

But let me just say for the record that uh Councillor Linantine is joined by Zoom.

Thank you.

Thank you.

Okay, and I just wanted to speak briefly about some of the features that an ERP system might have.

Of course, for us, we are really reliant on those accounting and finance tools, the HR module to manage our employees and their payroll and all of their benefits.

So inventory and warehouse software is also included in there.

Right now, the city of Rio Rancho has a small inventory function at the utilities department, and eventually hoping to build out utility an inventory process at the public works department.

So this software will help us get there.

What's really good about these new software suites is that they include workflow.

So we're not pushing physical paper around to get somebody's signature or approval.

It's all done online.

It'll send you a notification on your email.

You've got to go approve this, and then it'll go on to the next level, much like the granica software works.

Finance staff will no longer have to go into the system and press a button and say post this receipt.

It will be automatic.

And then I did mention there's the potential for having a lot more capability of reporting and analyzing all types of data.

So what do we want to gain from this?

Of course, we're on a system that is pretty pretty old, but it's still supported.

We're able to get what we need out of the system.

But moving to an ERP ERP system will improve our efficiency greatly, not only staff wise, but then we'll be able to focus on more of that kind of preemptive analytical work that we need to do.

Integrated business processes, it's going to be seamless.

So I will be able to see what utility sees.

Utility is going to be able to see what public work sees, it'll all be integrated.

And of course, like I mentioned, we're going to have up-to-date information.

It's going to be pretty real time.

We're not going to have to wait a day to see what posted.

Of course, with antiquated systems, there's always redundancy.

So we have people maybe doing the same data entry in different modules, different softwares.

Now we're just going to have they're just going to need to do it once.

And hopefully we can actually upload an Excel spreadsheet instead of keying in data.

It's possible, but it's just difficult.

Of course, as the ERP system is implemented and we gain efficiencies, it's going to reduce operational costs.

So our IT staff won't be having to learn and support several different types of software.

It'll just be the one suite with all its components.

Again, I mentioned it'll help us maintain compliance with those back-end regulatory things that we need to pay attention to.

I think the biggest thing that this ERP system will do for the city is really improve the customer experience.

So everything is going to be a lot more seamless.

And as you know, more data is available and we can analyze it.

Any cross comes at this point?

Okay.

Mr.

Mayor?

Yes.

I just have one.

Counselor Debs.

If under the benefits when you're talking about enhancing customer service, one of the things I run into sometimes is not knowing for sure which department I should be contacting.

So if I say contacted BJ and Public Works, but it was actually a utility thing, he would have all that information and be able to tell me that, correct?

Yes.

That's awesome.

Ideally.

Okay.

Thank you.

That's all.

Mr.

Mayor.

Counselor Tyler.

Yeah, just real quick.

Who do we do we currently have a system?

I mean, ERP system in place and current company that we're using for that.

So we don't have a currently an ERP system as I described in place.

We are using Central Square software for finance and some permitting and utility issues, and then a lot of the departments have their own standalone software.

So I will give you an update on our current negotiations with the vendor we're looking at.

Well, hold on just a second, I had one more follow-up question.

Yes.

So is any of the information that you currently have saved?

Are you going to be able to upload that into the new system and be able to utilize all of the old stuff into the new, or is it just going to be lost, or we're going to have to maintain that somewhere else?

Yes, Mr.

Mayor and Counselor, we will be able to load as much data as we want.

Of course, the more data we want them to load in the past, that it'll cost us a little more.

Right now, they are recommending that we um load two years of active data into the system and all of the other legacy data they'll put into what's called the data lake that we will be able to access through queries.

So we will always have that data going forward.

Okay, so it'll be it'll be in a link, and we will not be able to it'll just be accessible through a link.

We're not gonna be able to upload that into the new system.

Right.

I mean, we can um there is a potential to load more than just two years of active data.

Um again, that would cost us a little more, but we can talk more about how far back we want them to do that.

Okay, I mean it's uh it's whatever you guys are comfortable with.

I just was wondering.

So I appreciate the the answer.

Thank you.

Um so I talked about some of the benefits of VRP.

I want to now talk about some of the challenges that we are going to have to realize and mitigate.

Um, first of all, the high implementation costs.

Um we cannot get away from this.

This is the current state of things.

Um where I think we did go out to an RFP process, so it was fair, competitive.

Um complex customization, like I mentioned, the more you want to customize your ERP system, the harder it is to update and change later.

So we are going to be real cognizant and with IT's help of knowing where we stop with customizations if um if that if that comes about.

Um in my experience with ERP systems, the biggest thing for the employees is resistance to change.

They like to do what they've always done.

They've always worked this way, this is the process.

So we'll have to really have a good mindset of um instead of taking our current processes and making them fit the ERP system.

We have to think the other way.

Can we change our processes so that it makes ERP work better?

So and be more efficient all around.

Um we also have the ability if we want to contract with the ERP vendor or others to help us with change management.

Um I wouldn't necessarily um recommend that for an entity this size, but it it is possible.

Um data security risk, that's always a risk for any system.

Um this will be mitigated really the functionality of the system itself, knowing up front what we need to protect, and of course, IT will be right there working with them to get to make sure the security is right, that IT can handle, have the authority to assign security.

Um ERP systems um result in some limited flexibility.

You know, you got it's just a software system, so that's what you've got.

If it doesn't meet your needs, you know, um that's when you start going to these offshoots, these off like um one-off software is that I would call.

So we just again have to be really um as we're building out the system, really think about what we need and how flexible we want it to be.

Um of course, because we're in it for a few years, we're reliant on the vendor and this the software um product for a few years ahead of us, at least 20 years.

So we'll be dependent on this vendor and their subsidiaries to help us.

Um now I just kind of want to talk about where we are in our process.

So um last July, an RFP was issued for ERP system services implementation, and uh eight responses were received at that time.

Three of them were selected as finalists, and they came and did some presentations to city staff.

Um after those presentations, um the group recommends DLT solutions as the vendor for our ERP system.

We are currently negotiating with them the final contract and pricing.

They were here with us yesterday and this morning.

We wanted we had a lot of questions about their scope of work document, and we wanted to make sure we knew what we were paying for.

I think that after we met with them yesterday, everybody feels pretty confident that we're getting what we think we did.

So we we always want finance to go first so that that base accounting, the chart of accounts, all of that is in place for everything that comes after.

This slide just kind of summarizes the high-level modules and functions we'll be buying with the CRP system.

There'll be a development and permitting function that will be used by development services, the city clerk, and also public works.

I didn't put that on this slide.

I I apologize.

So we have that base accounting system in place.

So and as I mentioned, there are different part consultant partners that will be helping us with each of these modules.

VIP will be the one for the permitting system.

We'll be helping with utility billing.

Um to kind of manage all of the consultants that the subcontractors.

So we will only be dealing with DLT, and they will then guide the other contractors.

So not multiple budget.

The design and implementation, which happens in the first two years, and then we'll see another slide with the ongoing licensing costs, just like any other software.

Um the implementation costs over the next two years will be 7.4 million dollars.

Um we have already shored up about 5.5 million dollars that is already in the capital budget for this project, and so we will just need to fill the gap with about 1.9 million dollars.

Um Peter, do you want me to talk about possible funding sources?

Um, so we have a few ideas on how to shore this 1.9 million gap.

Um we can take it from fund balance of the general fund and the utilities fund.

Um if we were to do that, we would be taking our general fund reserve from 26.1% down to 24.3%, which is just slightly under our 25% uh target.

Um, and we would be taking utilities from we we measure them in days of cash that they have available.

We'd be taking them from 86 to 81 days of available cash.

Our target is 90 days.

Um the other option is to make an appropriation in the strategic fund.

Um we do have one of the items on that is governance and what is it called?

Excellence and governance, I think something like that.

So this would help us, you know, of course, with our with our financial system, it's a better way for us to serve the community.

The third option is to repurpose some money that has um been earmarked for some construction on under boulevard as a placeholder.

We are anticipating getting reimbursement for that from a grant.

So that money is in place there, we can always repurpose that.

So those are the three options we're talking about.

Any questions on that implementation cost.

Mr.

Mayor.

Counselor Tyler.

Yeah I'm I'm not comfortable taking the money from utilities or any of the current projects that are underway.

I I think we need to find other places to get the money in are we still in negotiations or is that the final number?

Are we just is that done deal?

Mr Counselor, um we are still in negotiations, but this is their final kind of invest offer right as as we go into getting the final amendment to the scope of work and and executing a contract.

So okay I like I say I don't I don't want to take the money from the utilities fund to fund the project to fund that so we'll have to figure out well I'd like to figure out somewhere else.

But it's just to me it's it's not a good good place to take the money from thank you.

Counselor Dempsey I was just going to ask if how long would it take us to go from prep from 24% to 25 percent again in the general fund.

Yeah so actually the last few months our GRT revenues have been coming in over budget.

I haven't done an analysis of the extra but we I can certainly look at that and see how how much that bumps us.

Okay.

Thanks.

Yeah I point as I'm looking at the GRT reports you all send out we're performing above expectation which once again that's due to conservative budgeting and I think that's very smart and wise and continue to uh encourage that the um going back through the the finance sources again um I'm sorry can you can you tell me where you're uh because I was asking the city manager a question so can you go over the the the funding the current funding we have that's in the drill fund that's been set aside and then we're talking about the TBD funding is it what we're talking about right now?

Yes Mayor so um the implementation costs are 7.4 million so that would be the build out and implementation and go live.

We have 5.5 million yes so we have 5.5 million in the capital um budget already and we're trying to find about 1.9 million so not in disagreement with counselor Tyler at all the only thing I would say is because the ERP is going to be a huge benefit and uh and to the utility I would look at you know potentially a percentage of use that says hey look this is because it is it is an enterprise fund.

So I would just say that if we were going to take money from the utility maybe not the entire 1.86 but what would the percentage of operational you know usage from the utility be on the ERP because we've looked at that before with the uh with the um uh oh shucks what's the uh I'm oh yeah GNI thank you so we've looked at that from a G and I standpoint of what is the utility what are the costs that it imposes on the city right as an impr inner for enterprise fund and then bringing those costs back over through the GNI um so I I would be more in you know in line with looking at the percentage of cost so that way we do recover that from the utility back over into the general fund as part of the implementation of this so it's a shared it's a shared responsibility and shared cost but not just a full you know we're just taking the money off the utility.

Right.

And so I mentioned mayor I don't know if you heard um if we were to take the 1.9 million from fund balance um Donald and budget has it split 80 20 so 80% general fund 20% utilities okay um and I mentioned that that would be taking our general fund reserve from 26.1 down to 24.3 slightly over which would be below policy right yeah um and but I I also know that as we talk about this um the um we've been trying to get this system implemented implemented since I'm I've we've been talking about this since twenty fourteen the at least as long as I've been in office and every year when we've prioritized something else um we've kind of not allowed this money to it's it's been very hard to tuck this money away right right and to put it aside so I know this is something that's been going on for being looked at to make our systems far more efficient for 12 years now and if not longer than that uh talking about it and there's things

And every year when we've prioritized something else, um we've kind of not allowed this money to get it's it's been very hard to tuck this money away.

Right.

Right, and to put it aside.

So I know this is something that's been going on for being looked at to make our systems far more efficient for 12 years now.

And if not longer than that, uh talking about it.

And there's things that finance has done and uh to try to streamline some of this stuff, but still working with a very antiquated archaic system uh that creates a lot of work when you're trying to account for everything from every different angle in every different direction.

So I think that if if a concession was to be made and brought before the governing body that would allow us to temporarily go below our policy amount, I think this would be a huge step forward and efficiency for the city.

Um if we had had the money back in 2014, it probably would have been about half the cost of this on implementation.

But we had other priorities and we looked at those priorities, and some of those priorities were you know, public safety, buying police cars, you know, uh making sure that we could be competitive with pay and things like that.

So I just, you know, as we go back and revisit the history of this, um I think it's it's long overdue to get implemented, but it's just gonna keep going up in cost if we don't start the process now.

And I appreciate the update, and I appreciate once again, Mr.

City Manager.

Um I I know this is something that's been worked on for a long, long time.

Right.

And I think long term it's going to create efficiency savings that will help offset the cost, but it's because we've had other priorities throughout the you know the last decade that it's at the cost that it is now.

And I just, you know, um I'm the only one that's been at the Diaz for the last 12 years.

So I going back and given a little bit of that historical perspective uh from where we're at.

I think I think we started this discussion.

Uh Olivia was the uh finance director at the time.

Mr.

Mayor, members of the government body, uh most likely.

I mean um uh Carol and Stephanie uh you know can both talk about the uh the challenges of um of where we are today with Central Square and um and then having a system that's not integrated uh enterprise-wide.

Um you know, so obviously it's not just the financial hub of the city, it's can it you know it should be the operational hub of the city being over the consolidate and you know permitting and other different types of you know experiences and uses that people undertake with it with our local government.

It's not gonna be an easy journey.

No.

Um I don't think there's you know an ERP implementation in the world that has gone smoothly or has not had a hiccup.

I hope it's just hiccups.

Um but it it is important for us to get the get this launched.

I think uh listening to Stephanie described the the three funding options of trying to have to the cover this this gap.

Um we're you know trying, you know, we to award the contract we need full funding.

Um so that is really the first thing.

Even if it's not paid out until they hit certain milestones in the delivery and the implementation, we need to award the contract with with with with full funding.

And it's really trying to figure out which of those weighing those pros and cons is the best.

Is as you or or you know, as we look at it, you know, do we um you know we have the answer project, we anticipate the reimbursement from the feds in the future.

Do we therefore take from that, or do we continue to have that money parked there in case there's a delay in the fund uh the reimbursements from the federal government over the two-year project?

Um the 20%, you know, do we drop down to 24.3 and then most likely with reversions throughout the year and an additional gross receipts tax generation, we end up you know back above 25 percent by then.

I would be hesitant to go down that path.

Um I I would just be hesitant to go down that path.

We know how road projects go, we know variables that can come into road projects, uh and then of course uh with federal funding, sometimes that money can be subject to flex you know different different we'll call it delays.

Delays, correct.

So in this particular case, I think with the uh diligence that we've had toward the reserve fund, uh the reserve the ending fund balance, we've been very diligent about that.

Um we've kept a strong 25 percent position in a lot of cases we've been well over that.

Um I think in this particular case uh to allow for a slight delay dip.

Now if what if we what if we blended that with some part utility part part utility part uh in the in you know ending fund balance?

So this is the uh actually blended an 80-20 split.

Oh, it is at 80 20, okay.

So it is blended.

All right.

And so we would so what what's the total amount we're talking about pulling out of the utility on that?

So it would be 20 percent of the 1.9 million is 380,000.

Okay.

And then about 1.5 to the general fund.

Counselor Tyler, would you do would you be in favor of that?

Because that is kind of a proportional cost.

Yes, I would be in favor of that.

That makes that makes complete sense.

And the tw 80-20 splits perfect.

I think that works out well.

Yeah, and I think mayor and counselor if we would take more from utility then it might affect their rate the rate um analysis we'd have to factor taking more money from the utility would affect what they needed for the rate increases.

Oh, okay.

Well, yeah, uh so all right.

So we'd need to have that discussion as to what that would look like.

But um what if it was 100 percent from the general fund?

What would that pull us down to?

You know what I didn't ask the Donald that question, but um based on the numbers I'm guessing it would pull us down maybe about two twenty-four percent.

Down to twenty-four.

Yeah.

So we're still just doing that.

We're still one percent just off of our target.

Yeah.

So um and and that would allow us to uh go ahead and get this funded without affecting the utility rates.

Especially with an uh additional GRT that we hadn't budgeted for the the incre the over budget GRT receipts.

Uh I think I think right now from a utility standpoint and we don't want to mess around with the current rate schedule.

So I think we would s uh step back from that.

Uh it's something that we could look at in the future, recovering that from the utility and getting it back into the ending fund balance.

But uh we're I I'll I'll defer to my colleagues on the on the ideas.

Mr.

Mayor, members of the government party, if I may, um I think uh director Yara's uh statement was in the context of not going more than the 20 percent would start to have a negative adverse effect, could have an adverse effect on the utility fund.

That 20 percent was probably in the range of uh of doable.

Um what I um I think hearing, and I don't want to take comments away from anyone, but I think what we're hearing here is look at the general fund, maybe with a partial blend uh from the utility um uh avoid the strategic initiatives fund and the UNSER project.

Use we'll use that as our as our starting point, and then um we can bring that forward.

Um when we're ready to award the contract with the appropriate budget adjustment.

Right.

But we can uh definitely check in the budget adjustment would have to have a policy of modification at that point or a variance uh uh I don't know if we would have to do that because right now the governing body's policy is 25 percent, but using that money with an acknowledgement that you we'd we've maintained twenty-five percent, but an understanding that we we're gonna pull below twenty-five percent for a brief period of time.

I I I personally think that once again, the longer we put this off, the more this cost is just gonna continue to go up.

And I remember this cost being about half this 10 years ago.

But we did have other priorities.

I mean, you it was just one of those things.

And I think that's a good thing.

Central Square wasn't IT 12 years old.

And Central Square wasn't 12 years older, 12 years ago.

Right.

It is 12 years older now.

Right.

Mr.

Mayor, yes.

Can I pipe up?

Yes, absolutely, Carol.

We'd love for you to.

I don't want to overstep.

Um, this is Stephanie's shout, but just to uh to reiterate that the the reserve um balance that we're referencing right now is on a budgetary basis.

What she is has reflected in and what you've seen in her reports is that the GRT is actually coming in much higher.

So the reality is even though the uh on a budgetary basis it it it would drop below the 25 percent based on this number.

Um in the re in actual performance, it would not most likely drop below that.

And by the time a contract was actually finalized, negotiated, and awarded uh by the governing bodies advice and consent.

The likelihood is that the actual revenue will have exceeded what you need to get it back to 25 percent by that time.

Okay.

That works for me.

I'm sorry, Counselor Lynn Tine, did you have something?

Yeah, no, I I did.

I just I agree with you.

I don't want to wait on this um because either you're right, we did have priorities that we need to take uh get done, and we've done a lot over the last you know uh eight to twelve years or so.

Um and so I'm good with either like an eighty-20 split or a ninety-ten split.

Um I uh I'm with you, I don't want to hurt the rates, but I don't think we want to wait on this either.

I know it's a big pill to swallow, but um it needs to be done, and uh I think it's amazing that even using the antiquated system that they have that we've still had um so many consistent or you know consecutive years of uh you know banner-winning award-winning budgets, and it just speaks to the the solid performance from that department.

Um but I would like to see us go ahead and go forward, not delay on this, and I'm okay with some type of split.

Um even if that puts us just you know one percentage point or so away.

Um I know we'll you know we're gonna recover, or if we need to move that to a 90 10 split, something like that, I'm okay with that as well.

That's all I had.

Thank you.

Thank you.

Counselor List.

Sorry, I was waiting for you to get through all of your stuff.

I have a couple of questions not specific to the funding source, although I did get heart palpitations when you said you were gonna use money from UNSER.

So please don't don't go that direction.

Um the first thing is I really want to go back to where you said customer benefits.

So if I put on my resident hat, what you're telling me is that Nicole is the resident.

When I need to get anything from the city, this is a one-stop shop.

This is what you've created for me.

So, counselor, I'm saying that it has the potential to do that.

We're we're not scoping that just yet, but there is a potential for more outfacing tools for the customer.

Okay, so that's the direction we're headed.

Yeah.

But even in the initial stages, it should still be closer to a one-stop shop than where everybody's very fractured.

Yes, and and else the your customers and citizens will see that and how fast we can um take their payment and how efficient the those efficiencies will be.

Okay, because I think that I think that that will be a huge um need for the city because there is gonna be a hiccup in the transition.

So we already have lots of directions, and then we're gonna put a hiccup in there.

So if this is gonna make it better and less hiccups, then I think the growing pains are worth it.

Um the other thing is uh, you know, our city's growing.

We're evolving.

Like we have to grow with it, and this is something ginormous, and this is something that is very expensive, but is very, very important.

When we make this transition, you're already talking about, you know, we have to sign contracts, and by the time they executed, it's like a two-year process just to get to what we're talking about today, and you have futuristic wish list, right, to add to this.

So, with that, what's the longevity of this system?

Are in five years, do we have to go through this process again?

Is this a 20-year thing?

Like, how long is this gonna serve us?

Yes, um counselor, I think that a system like this would we'd expect it to last at least 20 to 25 years.

Um it might have been in the past that certain systems like 20 years ago, it was just technology was rolling over really fast.

Um and people were growing into these ERP systems.

Um, but I think if we can implement it correctly, keep a good vendor relationship with the support folks.

I think it can last us at least 20 years.

All right.

And just for the staff members, totally understand and appreciate those that are not tech savvy having to change new things or that have been doing it so long.

So maybe we could bring donuts to work when they're having to go through this.

Yes, let them know that they are loved and appreciated in their growing pains.

Um thank you so much for all your work on this because this is a very complex situation, and you have to be able to explain it to the higher level thinkers and the not so higher level thinkers, and I just appreciate you being able to spell this out.

You brought amazing information.

So thank you.

Thank you.

Mr.

Mayor.

Counselor Weimer.

Director Yara, I think you you you said something that I heard and I think I understood, but it was that it sounded like you have experience with this type of a system.

You've done you've you've used it in the past.

Is that accurate?

Yeah, so uh in my previous role at the city of Albuquerque, they had implemented uh people soft system, it's an Oracle system.

Um I have to say that up front the contract wasn't um there wasn't enough detail in the contract for us to manage what we were doing.

Um and it took a painful probably about 10 years to get it right after failed attempts with different contractors, we moved to different another contractor to help us fix what was wrong.

Um but once it was in place, it was amazing compared to all of those old green screen systems we used to use.

Um being able just to query accounting information right out of the system.

It just it made my life so much easier.

And to pay our vendors a lot more quickly and more accurately.

That's very good.

I'm glad that you've at least dabbled in it and you learned from the mistakes of the past.

Do you know how many other of your staff members have had similar experience or has that?

I know Carol implemented some payroll systems and our new accounting manager.

His name's Steven Morales.

He's um familiar with implementing even utility systems.

So we have that.

Okay, very expertise on staff.

Yeah, I think that's important to at least have have the knowledge up front to be able to share with the staff that has as we've heard from several.

It's gonna be painful.

And so at least you they've got somebody's hand to hold and move through the process.

Um let me make sure I understand this budget issue.

7.4 million, if I understand City Manager Geisel correctly, that would be due up front once the contract is signed.

Is that correct?

So we would need to have those funds in place at that time we signed that.

So even though it's listed as year two, it's yeah, part of the contract.

And then and as he mentioned, uh as uh city manager mentioned, there will be uh a payment kind of schedule that we'll need to follow once the contract's executed.

And then not to jump ahead.

I see you've got another slide on the ongoing costs.

They're listed out as year one through year five, and then a total.

Is year one the same year one as the implementation costs, or is it the first year after the first two years of implementation?

So it is the first year and the same first year as the implementation.

Um we are targeting them starting in January of 2026, so that's a good kind of gauge.

So we're hoping by January 27, we'll have the finance and those first parts in place and live.

Um the cost I want to mention the ongoing costs of licensing will be offset by what we're currently paying for the suite of different softwares.

Um really rough estimation I got from um director um Charlie this morning is that we're paying a little over half a million dollars for some of those main core software right now.

So these yearly costs will be offset by uh so that that half a million that we're paying currently is yearly?

Yes.

Is that correct?

So it's really not that big of a delta there.

No.

There I think year four and five are the biggest.

So the number of seven, what was it, seven point um four million, there would need to be a few dollars added for those software costs.

Is that accurate?

Right.

So the the contract would include these implementation costs and the ongoing licensing, which we know is budgeted on an annual basis.

Okay.

Thank you, Mr.

Mayor.

That's all I have.

Anything further from council?

Um, it and Director Yara, I I appreciate that comprehensive uh presentation, and as far as the the employees adaptability, I we just live in a day and age where technology is constantly changing and adaptability is becoming and and acceptance of new technologies and processes, uh, I think is becoming more and more acceptable.

I understand you'll run into a few headwinds there, but I just I I would find that, you know.

I I know you I know you know this better than anybody, but still it's I would find that inflexibility a little bit hard to you know accept at this point in time.

So I think the uh if we can make this a little bit simpler, I think adapting to technology is we're in a different place, yeah.

You know, no, I don't think we have a choice, right?

Yeah, yeah.

We're gonna have to do it.

Yeah, sometimes they're just technologies, you just have to take it.

You just have to move along if you're gonna grow in the system.

And and I've I've seen that once those resistant employees see how easy it makes their job, and all of that goes away.

Right.

So nowadays you get five new apps on your phone if you're walking around with a uh if you're walking around with a smartphone, you you adapt to change.

Yes.

I I have to put up every time they do a software up to date to my phone.

Like, why did they change that?

But I have to accept it.

Yes, you know.

Just why did they do that?

But anyway, okay, thank you very much.

Uh anybody let's see.

No, doesn't look like anybody else is online.

Uh didn't look like Councillor Tyler or Lynn and Time have anything further.

Okay.

Um thank you very much.

Moving on to our next item.

We have a presentation from the Rio Rancho Public Schools on the bond presentation.

Point.

Thank you.

All right, good afternoon.

Um first and foremost, I apologize for necessitating a little uh alteration to the agenda today, but I appreciate the council's flexibility and patience with me as we uh approach this very exciting process.

Um my name is Wyndham Kemsley, I'm the executive director of the communications department for Rio Rancho Public Schools, and um I the the way I've been approaching this when I when I talk about the bond this year is that you know we we kind of feel like we just did this.

We um a lot of people say, I just could have sworn we just went through a bond process, and that is true.

Uh it's only been two short years since we approached our our last bond um question on the ballot.

And that's for uh kind of a laundry list of reasons, but um the way the world is today has kind of forced our hand in in approaching voters again in Rio Rancho.

Um so we're we're grateful to be here uh especially today to to speak to the council and the um Rio Rancho Public, really in uh in a wider sense.

So uh what I'd like to do is uh just briefly go over some of the items that are on the bond this year, just for information's sake.

I we we're just trying to provide information to as many avenues as possible.

So um as they have in years past, or I guess as as bonds have in years past, we are asking Rio Rancho voters for a total of 80 million dollars in funding allocations for some very uh important and um I would say critical infrastructure and security projects throughout the district, as well as some some very cool projects that we have in mind.

Um I have a handout here after the fact if anybody in the room wants one that's a little bit more tangible that you can look through.

But um the the main selling point for us is that there's no tax rate increase with this bond.

We we do that very deliberately to lighten the load on Rio Rancho voters and to ensure that um whatever comes about in these elections is in the best interest of not only our students but the communities surrounding our schools.

Um so like I said, we are um looking for $80 million in funding allocations.

But the the cool thing about this bond is that we have a construction project that's kind of first and foremost on the questions that will present us or give us an opportunity to gain some PSFA funding, which is the public school uh facilities authority.

They have um we have seen that we we might be able to uh get up to I think it's a 60% um fund match of what the actual project is gonna be.

I'll talk about that one when when we go through.

But basically, it means that our eighty million dollar ask from Rio Rancho Voters turns into 104 million dollars that could directly benefit the schools if if approved by voters.

So first and foremost, I want to talk about the um first project that we have, which is a new pre-K facility.

I think everybody in this room is very acutely familiar with the um the population of pre-K individuals in Rio Rancho and how underserved they are.

Um I I think that we have the number one underserved pre-K population in the state, and so we're trying to change that.

And uh you may have heard about it last year where we're um pursuing a project that might transform um some of our existing elementary schools like Cuesta Del Sol Elementary into partially into two pre-K services, but that just does not meet the need that we have in Rio Rancho.

So we want to build a brand new facility, just like Shining Stars.

Anybody who has any affiliation with Shining Stars will tell you how amazing that that campus is.

So on the southern end of Rio Rancho, we want to build a a facility just like Shining Stars to help uh alleviate the burden that that school has and the uh you know help help some of the the students who desperately need pre-K services in Rio Rancho.

And the cool thing is we're asking for 17 million from from voters.

Um but with that PSFA match funding, it will go up to 41 million dollars, which is more than enough to cover the cost of of what this project will be.

So it's very exciting.

Um the second item on here is the one I probably get the most questions on.

Um, but it is the completion of 2023 bond items.

Um I anybody who's heard me say this presentation, I'll apologize who might be watching.

But I I use this example because it's very potent and it uh demonstrates where we are in the world today, really.

Um so when the district constructed Joe Harris Elementary, that that complete or that was completed, I suppose, in early 2020, I believe.

Um the price per square foot for that facility was about 260 dollars to construct that entire school.

Now, as we approach constructing the new independence high school just on Northern over here, we are looking at over $800 a square foot.

Everybody in this room is acutely aware of the construction costs, and I'm I feel like I'm preaching to the choir here, but um it is vastly different than what it was just a couple of years ago.

So we unfortunately have to go back to the Rio Rancho voters and um appeal to them to s to complete the projects that we're already working on.

So this includes drainage, roof repairs, electrical, um, bolstering of our of our systems, and that equates to 20 million dollars that we are hoping to get allocated in this bond.

Next up, we would like to transform our oldest school in the district and sort of give it new life and a new purpose.

That is Rio Rancho Elementary School.

I guarantee you the the um what is it, the order of separation of Rio Rancho Elementary School, and anybody in Rio Rancho is only one person and it might be less.

Everybody has some connection to that school because it has served such an amazing purpose in the community.

And it's it's just time.

It's time for a a new mission for that school.

So what we want to do is is make it into a steam-focused elementary school to offer programs that aren't offered anywhere else in in the district, as well as attract some of the students who may have left Rio Rancho in pursuit of more steam-focused programs.

So this includes potentially constructing a planetarium at Rio Rancho Elementary, housing or uh excuse me, housing, the UFO record center that is currently at Martin Luther King Elementary is a permanent facility.

There's really the sky's the limit with what we can do, and we're really excited to offer some incredible programs to to children in in Rio Rancho.

That equates to at least the first phase of this project equates to about $18 million.

Um next up, a lot of this stuff is what I refer to as kind of boilerplate bond.

It's it's on all of the bonds that I've worked on, and it's just the cost of having aging facilities.

Um we're looking to improve roof, HVAC, drainage systems, uh, intercom systems across the district, um just to bolster really the security, the infrastructure, and the health and wellness of our facilities and our buildings.

Um that equates to about seven million dollars, as well as we are redesigning the bus loop at Vista Grande Elementary.

And again, talk to anybody who has any affiliation with uh Vista Grande, they'll tell you that that bus loop needs to be redesigned and has always needed to be redesigned.

So we're finally in a position where we are able to do that, and we're pursuing that this year.

Um next up, we also want to acquire some land in the south end of Rio Rancho for the construction of a new middle school down the line.

Uh this is a very important process for us.

Um we're quickly growing.

Everybody knows how how fast Rio Rancho is growing, and the population is just continuing to boom.

So we are needing to look at the future and and see what we can do about constructing a new middle school.

So we're excited about that.

Purchasing it today for hopefully pre-inflation prices that will save us some money, same save the community some money down the line.

Um, these two, or I guess there's there's three more, but uh two of them are very closely associated.

We need to revamp and re construct some of the athletic facilities, namely the soccer fields at Rio Rancho High School and Cleveland High School, as well as uh some of the other places that need turf just to redo those.

Um turf is so so important to our um student athletes, and those these programs changed lives, so we want to make sure that they're they're in the best spot possible.

And alongside that, we want to repave and um improve the condition of the marching band fields at both high schools, at both comprehensive high schools.

Again, fine arts and athletics.

I mean, I I love everything that our district does and talk to anybody who has students in these programs and they'll tell you the same thing.

They change lives, so um, we want to make sure that the marching band is is a safe area for our students to practice and and better themselves as well as uh make it more effective for their their learning process.

And then finally, um we want to construct a permanent facility for enchanted mesa daycare.

Now, what that is is the district offers a daycare service to uh not only Rio Rancho Public Schools employees, but also student parents who need daycare during the day to complete their studies and to attend schools as they uh need to.

Anyone who has had any affiliation with that knows that the current location of the of the daycare isn't ideal, and in fact, it was never supposed to be permanent.

We don't actually even own the facility that it's in right now, and so we would like to change that and uh continue to continue to offer this incredible incentive to not only employees but but our our hardworking student parents as well.

And uh not only that, we are pursuing the idea of turning daycare into a pathway for our CTE programs, which would prepare a lot of students for child care services right out of high school, which is a very cool idea.

Um, so that that's basically everything that's on the bond this year.

Like I said, $80 million quickly turns into $104 million that directly benefits the schools.

Um we just want to let everybody, as many people I should say, know as possible uh to get out there and and vote November 4th.

Um again, no tax rate increase, you can't really ask for much more than that.

And uh all of this information is readily available on the district's website, which is www.rrps.net.

If anybody has any questions uh outside of this room, we encourage them to reach out to us, communications at rrps.net.

But at this time I'll stand for questions if there are any excellent.

Well, thank you so much for your time.

Yeah, I don't have any jobs.

I'll just say that you know, you guys are doing a great job, and thank you.

Um appreciate all that you do uh in the uh in educating our children and creating a great environment for them to do to get the best education possible.

So thank you for all you do.

Rio Rancho wouldn't be Rio Rancho without Rio Rancho Public Schools.

So you know, so we we appreciate everything that you do and the way you work with the community and help us with our kids.

Thank you so much.

The the feeling if I can speak on behalf of Rio Public Schools is is mutual.

Thank you for all your support of our schools and our students.

Thank you.

Anything further?

All right, I don't see any.

So thank you for those presentations.

Uh if there's nothing else, we are adjourned.