City of Gallup Senior Program Contract Approvals
1. The Senior Program has received the Non-Metro Area Agency on Aging (NMAAA) state and federal contracts for FY 2023-2024 for a total of $476,810.00. The Senior Program is requesting two Budget Adjustment Requests for FY 23-24 Budget.
A. Contract No. 2023-24-60013 Title III State/Federal - Increase the Title III budget by $66,416.00 as outline in general ledger worksheet. Contract award will fund salaries, fringe, and direct-services for the Gallup Senior Program.
B. Contract No. 2023-24-60013-N - Nutrition Service Incentive Program (NSIP) - Reduce the NSIP budget by $8,967.00. Contract award will fund the purchase of United States agriculture commodities and other foods produced in the United States for use in the senior nutrition program.
Resolution R2023-15 is the creation of a new electrical rate to pass on the cost savings from WAPA contract No. 22-SLC-1099 to the Water Department. The Water Accounts associated with the groundwater wells in exhibit B of the contract are currently being charged at the Municipal Service Joint Utilities Rate - $0.0950 / kWh. The Electric Department has created a new rate to serve the Water Department’s groundwater wells while WAPA contract No.22-SLC-1099 remains in effect.
This new rate will come with a monthly service charge of $135 for the 43 different accounts outlined in the contract and the new energy rate will be set at $0.0314 per kWh. The WAPA contract has an energy cap of 1,250,000 kilowatt hours per month. Any electrical usage past this energy cap will need to be charged at the Municipal Service Joint Utilities Rate. At the beginning of each fiscal year the Electric Department will reevaluate the transmission cost associated with the delivering of this power and adjust this rate if this rate needs to be increased.
If this resolution is passed and goes into effect, the Water Department will see an estimated annual cost savings of $900,000.
Staff is requesting for the City Council’s approval of Resolution No. 2023-17 NMDOTAD RASE Grant No. GUP-22-02 Amendment No. 1. The funding will be utilized to extend the current airline service for two more years.
The purpose of this Extension Agreement is to continue to provide air service transportation to the rural area that we live in and this Amendment No. 1 is an extension to the initial grant that began August 2022 and will expire May 2024.
The Airline Service for the Gallup Municipal Airport has been very successful. Gallup Airport’s authorized flight capacity is 8 passengers. Flights are filled almost every flight from Phoenix, AZ to Gallup, NM and from Gallup to Phoenix. A flight is a single trip from GUP to PHX or from PHX to GUP. To continue the airline service for an additional two years will increase the knowledge of the airline service to many more members of Gallup, Neighboring Communities, Pueblos and Reservations. This benefit will influence the outer regions of New Mexico and that will magnify economic development and tourism for Gallup.
The total amount is $3,850,000 for two years. The State’s 90% is $3,500,000 and City’s share 10% is $350,000. The breakdown is $1,750,000 per year from the State and City’s share is $175,000 per year for a total $1,925,000 per year. Matching funds to be placed in the 515 Fund Project AP2202.