AGENDA The following will be considered at the Regular Meeting of the Doña Ana County Board of County Commissioners to be held on Tuesday, M ay 23, 2017 at 9:00 a.m. in the Doña Ana County Commission Chambers, 1st Floor, Doña Ana County Government Center, 845 North Motel Boulevard, Las Cruces: • Invocation • Pledge of Allegiance • Roll Call of Commission Members Present and Determination of Quorum THE DOÑA ANA COUNTY BOARD OF COUNTY COMMISSIONERS CONVENES AS THE BOARD OF COUNTY COMMISSIONERS, THE COUNTY BOARD OF FINANCE, AND THE COUNTY BOARD OF APPEALS IN OPEN SESSION. • • CHANGES TO THE AGENDA - Chuck McMahon, Interim County Manager, will discuss PET SHOWCASE - ASCMV Staff will present 1. MINUTES - Approval o f the Minutes of the Regular Meeting of May 9, 2017 and the May 16, 2017 W ork Session 2. PUBLIC INPUT STAFF INPUT COUNTY ELECTED OFFICIALS' INPUT COMMISSION INPUT PROCLAMATIONS/PRESENTATIONS 3. Proclaim the Month o f May to be National Emergency Medical Services and Trauma Awareness Month in Doña Ana County - Introduced by Jamie Michael, Health and Human Services Director; and Eric Crespin, Interim Fire Chief; Jess Williams, Director, Public Information/Special Projects, will read the Proclamation. 4. Presentation o f the List o f Contracts Signed from May 5 - May 19, 2017 - Pamela Wood, Contract Administrator, will discuss. 5. Presentation and Discussion o f Affordable Housing Financing Mechanisms: A Feasibility Analysis and Affordable Housing Loan Fund Business Plan - Chuck McMahon, Interim County Manager, will discuss. 6. Presentation and Discussion o f Property Assisted Clean Energy (PACE) Program - Chuck McMahon, Interim County Manager, will discuss. May 23, 2017 AGENDA Page 2 of 4 CONSENT AGENDA - The Board will be asked to approve by one motion the following items of recurring or routine business: 7. Resolution Donating a Painting from the Doña Ana County Permanent Collection to the Las Cruces Elks Lodge – - District 5 Vice-Chairman John Vasquez, will discuss. 8. Approve Out-of-State Travel for Lieutenants to Attend EEO Training for New Investigators, Investigators, nd in Washington, D.C. October 23-27, 2017 One in Atlanta, Georgia June 12-16, 12-16, 2017 and 2 2nd -– Chris Barela, Director, Detention Center, will discuss. 9. Approve Award of o f Request for Proposal 17-0015 17-0015 Inmate Telecommunication Services and Delegate Signature Authority to the County Manager for Related Contract Documents -– Chris Barela, Director, Detention Center, will discuss. 10. Approve Assignment of T-11 Condominiums, Deed for o f Santa Teresa Airport Hangar T-11 Leasehold Condominium Interest Unit #5, from Leon Development, LLC, to Mike McNamee and Marcia McNamee and Delegate Signature Authority to the County Manager for the Assignment and all Related Documents -– Bill Provance, Airport Manager, will discuss. 11. Approve Purchase of o f CenturyLink Services up to $65,000 Annually and Delegate Signature Authority to the County Manager -– Bob Bunting, Infrastructure Manager, IT Department, will discuss. 12. Approve Purchase of o f Server Equipment in the Amount of o f $63,936.04 Under the Advanced Network Management State Purchasing Agreement #40-000-13-00020 WAN/LAN, Approve Associated Budget Revision and Resolution to Reallocate Operating Budget to Bunting, Capital and Delegate Signature Authority to the County Manager -– Bob Bunting, Infrastructure Manager, IT Department, will discuss. o f SPA 70-000-16-00037AA to Purchase 160 160 Tactec Carriers and 13. Approve Utilization of Special Threat Plates – - Enrique Vigil, Sheriff, will discuss. 14. Approve Utilization of o f GSA Contract #GS07F0004Y to Purchase 3 Automated License Plate Reader Speed Trailers and Associated Budget Revision and Resolution -– Enrique Vigil, Sheriff, will discuss. 15. Approve Utilization of SPA 70-000-16-00004 to Purchase Three 2017 Chevrolet Tahoes -– Enrique Vigil, Sheriff, will discuss. APPROVALS 16. Approve Resolution Adopting Doña Ana County’s County's FY2017-2018 Preliminary Budget -– Jo Ann Rowe, Financial Services Director, will discuss. 17. Approve Resolution Increasing Liquid Waste Discharge Fee -– Nora Oliver, Office Supervisor, Utilities Department, will discuss. 18. Approve Resolution Increasing Wastewater Utility Rates -– Nora Oliver, Office Supervisor, Utilities Department, will discuss. May 23, 2017 AGENDA Page 3 of 4 APPROVALS - Continued 19. Approve Resolution Superseding Resolution 2013-57 to Amend the Purpose of o f the Crisis Triage Center – - Jamie Michael, Director, Health and Human Services Department, will discuss. 20. Approve Resolution Establishing a Film Advisory Committee -– District 5 Commissioner Vice-Chair John Vasquez, will discuss. 21. Approve the Re-Appoint of o f Two Members from the Local Banking Community, William Jacobs (White Sands Federal Credit Union) and George Ruth (Citizens Bank); and One Private Citizen, Dr. Chris Erickson (NMSU), to the Doña Ana County Investment Advisory Committee – - Eric Rodriguez, County Treasurer, will discuss. 22. Approve Publication of Title and General Summary and Notice to Hold a Public Hearing to Consider and Adopt an Ordinance Approving the Las Cruces Community Farms, LLLP Local Development Act (“LEDA”) Project Proposal and Approve the Project Participation Agreement, the Intergovernmental Agreement and the Guaranty Agreement and Delegate Signature Authority to the Interim County Manager for the Documents Cited and Other Required Documents – - Chuck McMahon, Interim County Manager, will discuss. 23. Approve Resolution Establishing a Utilities Advisory Committee -– District 5 Commissioner Vice-Chair John Vasquez, will discuss. 24. Approve Payment to Infosend for Printing & Mailing Services for the Budgeted Assessor’s Assessor's 2017 Notice of o f Value – - Paul Ponce, Chief Deputy Assessor, will discuss. THE DOÑA ANA COUNTY BOARD OF COUNTY COMMISSIONERS RECONVENES AS THE COUNTY BOARD OF APPEALS IN OPEN SESSION. 25. Approve a Special Use Permit for a Winery and Wine Tasting Room -– Luis Marmolejo, Senior Planner, Community Development, will discuss. THE DOÑA ANA COUNTY BOARD OF COUNTY COMMISSIONERS ADJOURNS AS THE COUNTY BOARD OF APPEALS IN OPEN SESSION. CORRESPONDENCE CORRESPONDENCE 26. Scott ScottKrahling, Krahling, County County Clerk, Clerk, will will present presentto to the the Commission Commissionany anyclaims claims received receivedby byDoña Doña Ana County. CONVENE THE DOÑA ANA COUNTY BOARD OF COUNTY COMMISSIONERS MAY CONVENE IN CLOSED SESSION, to discuss a limited personnel matter related to the search criteria and process to be used to recruit a permanent County Manager; pursuant to the attorney-client privilege to discuss pending threatening litigation regarding El Paso Electric Company's Company’s 2017 Renewable Energy Plan before the New Mexico Public Regulatory Commission; to discuss bargaining strategy preliminary to collective bargaining negotiations with the International Association of Fire Firefighter (IAFF) Local 5037; American Federation of State, County and Municipal Employees, NM Council 18, Local 1529 (Detention Center), and Local 1879 (Court Security), and May 23, 2017 AGENDA Page 4 of 4 Local (Blue L o ca l 22709 7 0 9 (B lu e Collar); C olla r); as authorized by the Open Meetings Act, NMSA 1978, § 10-15-1 (H)(2)(5) and (7) respectively. THE DOÑA ANA COUNTY BOARD OF COUNTY COMMISSIONERS MAY CONVENE IN OPEN SESSION to take action, if any, on the closed session items. THE DOÑA ANA COUNTY BOARD OF COUNTY COMMISSIONERS ADJOURNS AS THE BOARD OF COUNTY COMMISSIONERS AND THE COUNTY BOARD OF FINANCE IN OPEN SESSION. THIS AGENDA IS SUBJECT TO CHANGE NOTE: Doña Ana County will ensure effective communication with individuals with disabilities and will, upon request, provide auxiliary communication aids and services to afford those individuals equal opportunity for participation in Doña Ana County sponsored meetings, events, or activities. Any request should be made to the Americans with Disabilities Act Coordinator, in writing, or by phone, at least two business days prior to the event at which accommodation is needed. If you have any questions regarding examples of reasonable accommodations, please contact the ADA Coordinator, at 525-5884 (voice) or 525-2951 (TTY), 845 N. Motel Blvd. Las Cruces, NM 88007. Spanish language interpretation services are now available upon request for participation in Doña Ana County sponsored meetings, events, or activities. Please contact the Community & Constituent Services Office at 525-6163, at least 48 hours prior to the event. Servicios de interpretación en las juntas será disponible por petición. Por favor en contacto la Oficina de Servicio a la Comunidad y Constituyentes 525-6163 por lo menos dos días hábiles por adelantado para pedir este servicio. DOÑA ANA COUNTY BOARD OF COUNTY COMMISSIONERS Doña Ana County Government Center 845 North Motel Boulevard Las Cruces, New Mexico 88007 Telephone: (575) 647-7200 Toll-Free: (877) 827-7200 COUNTY CLERK Initiating Department __May 23,2017___ Meeting Date Scott Krahling/Cindy C. Padilla Contact Person Agenda Item Number / TITLE OF AGENDA ITEM TO BE CONSIDERED Approval o f Minutes for the BOCC Regular Meeting of May 9,2017. SUM M ARY OF ITEM TO BE CONSIDERED INCLUDING PRESENTATION OF OPTIONS FO R ACTION and ACTION REQUESTED DESCRIPTION OF SUPPORTING DOCUM ENTATION ATTACHED SUM M ARY OF FINANCIAL IMPACT ADM INISTRATIVE REVIEW AND APPROVAL Finance Legal County Manager/ Agenda Review Purchasing Human Resources Assistant County Manager/ Peer Review Planning Other DOCUMENT CONTROL Onginal/s for signature? ___Yes No Return onginal/s to: For Recording: Yes Name Send copy of recorded original/s (resolution and ordinances only) to: Deadline for return of document/s? Yes, return by: No Dept. Name Dept. Chair Isabella Solis called the Regular M eeting o f the Doña Ana County Board o f Commissioners to order at 9:00 a.m., on Tuesday, May 9, 2017, in the Doña Ana County Commission Chambers, 1st Floor, Doña Ana County Government Center, 845 North Motel Boulevard, Las Cruces. Time: 09:02:20 District 4:Isabella Sobs, Chair - Present District 5: John L. Vasquez, Vice-Chair - Present District 1:Billy G. Garrett, Commissioner - Present District 3 Benjamin L. Rawson Commissioner - Present District 2:Ramon S. Gonzalez, Commissioner - Present Time: 09:02:31 Chair Solis recognized Mayor Perea from Sunland Park, Representative Rudy Martinez and Representative Bill Gomez in the audience and thanked them for being here. Invocation Time: 09:02:45 Before the Invocation, Jess Williams asked for moment o f silence in remembrance of Hatch Police Office Jose Chavez and Alamogordo Police Officer Clint Corvinus. Led by: Jess Williams, PIO Director Pledge of Allegiance Time: 09:04:24 Led by: Isabella Solis, BOCC Chair Roll Call o f Commission Members Present and Determination o f Quorum Time: 09:04:47 May 9, 2017, BOCC Regular Meeting 1. 1 Led by: Lynn J. Ellins, Deputy County Clerk THE DOÑA ANA COUNTY BOARD OF COUNTY COMMISSIONERS CONVENES AS THE BOARD OF COUNTY COMMISSIONERS AND THE COUNTY BOARD OF FINANCE IN OPEN SESSION. CHANGES TO THE AGENDA - Chuck McMahon, Interim County Manager, will discuss Time: 09:05:08 Changes: Chuck McMahon stated that they have a request from the appellant who would like Item #18 postponed to a later date and understands that the applicant for the winery had reached out to that applicant ahead o f time, they were not in agreement and believes the appellant is present the winery folks are also present and the decision is at the discretion of the BOCC. Commissioner Gonzalez made a Motion to Postpone Item #18 until their next Regular Meeting o f May 23,2017. Commissioner Vasquez seconded that motion. Public Input Time: 09:07:09 Given by: 1) Dawn Okaley 2) Brian Oakley 3) Quent Pirtle *In order to listen to Public Input https://donanacountv.org/bocc/video. comments go to Doña Ana County website: Motion to Postpone Item #18 until their Next Regular Meeting of May 23, 2017: Motion: Ramon S. Gonzalez Second: John L. Vasquez District District District District District 1 :Billy G. Garrett - No 2:Ramon S. Gonzalez - Yes 3:Benjamin L. Rawson - Abstain 4:Isabella Solis - Yes 5:John L. Vasquez - Yes Motion passed 1. MINUTES - Approval o f the Minutes o f the Regular Meeting o f April 25, 2017; Approval o f the Minutes o f the May 2, 2017 Work Session and the May 2, 2017 Special Meeting. Time: 09:13:49 May 9, 2017, BOCC Regular Meeting . 2 Motion: Benjamin L. Rawson Second: Ramon S. Gonzalez District District District District District l:Billy G. Garrett - Yes 2:Ramon S. Gonzalez - Yes 3:Benjamin L. Rawson - Yes 4:Isabella Solis - Yes 5:John L. Vasquez - Yes Motion passed 2. EMPLOYEE RECOGNITION - The Commission will recognize Doña Ana County Employees for their years o f service to Doña Ana County - Jess Williams, Public Information Director/Commission Liaison, will present. Time: 09:14:32 Name Department Years o f Service John Romero Matthew Root Lorenzo Banuelos Diana Lara Edgar Rivas Christian Ramirez Ryan Van Winkle Gordon Grinde Matthew Hawn Robert Bunting Michelle Blackwell Samuel Ramos Lalo Castrillo Fire & Emergency Services Detention Center Detention Center Detention Center Detention Center Detention Center Utilities Department Utilities Department Information Technology Information Technology Engineering Department S heriffs Department Road Department 5 5 5 5 5 5 5 5 10 10 10 15 Retiring Time: 09:23:18 Chair Solis recognized Eric Rodriguez-County Treasurer and Miguel Sanchez-Chief Deputy Treasurer who were in the audience. 3. PUBLIC INPUT Time: 09:23:32 Given by: 1) Mark Best 2) Rev. Jared Carson 3) Merrie Lee Soules 4) Lisa Neal STAFF INPUT Given by: Lani Davis-H/R Senior Administrator, Nelson Goodin-County Attorney and Blake Davenport-Risk Management Manager. COUNTY ELECTED OFFICIALS’ INPUT Time: 09:33:35 Given by: Eric Rodriguez- County Treasurer and Jess William-PIO Director COMMISSION INPUT Time: 09:38:10 Given by: John Vasquez, Benjamin Rawson, Ramon Gonzalez, Billy Garrett and Isabella Solis. *In order to listen to Public, Elected Officials, Staff and Commissioner’s Input comments go to Doña Ana County website: httDs://donanacounty.org/bocc/vidco. PRESENTATIONS/PROCLAMATIONS 4. Proclamation Declarinu May 2017 as Bike Month in Doña Ana County in Conjunction with National Bike Month Introduced by District 1 Commissioner Billy Garrett; Jess Williams. Director. Public Informadon/Special Projects, will read the Proclamation. Time: 09:49:36 Motion: Billy G. Garrett Second: Ramon S. Gonzalez District 1:Billy G. Garrett - Yes District 2:Ramon S. Gonzalez - Yes District 3:Benjamin L. Rawson - Yes District 4:Isabella Solis - Yes District 5: John L. Vasquez - Yes Motion passed 5. Proclamation Declaring May 2017 as Border Servant Corps Month in Doña Ana County in Conjunction with the 20lh Anniversary o f the Border Servant Corps - Introduced by District 1 Commissioner Billy Garrett: read by .less Williams, Director, Public Information/Special Projects. Time: 10:00:29 May 9, 2017, BOCC Regular Meeting Í‘ 4 Motion: Billy G. Garrett Second: John L. Vasquez District 1:Billy G. Garrett - Yes District 2:Ramon S. Gonzalez - Yes District 3:Benjamin L. Rawson - Yes District 4 ¡Isabella Solis - Yes District 5: John L. Vasquez - Yes Motion passed 6. Proclamation Declaring May 7 - 13, 2017, as Correctional Officers and Employees Week - Introduced by District 1 Commissioner Billy Garrett: read by Jess Williams. Director, Public Information Officer/Special Projects. Time: 10:04:48 Motion: Billy G. Garrett Second: John L. Vasquez District 1:Billy G. Garrett - Yes District 2:Ramon S. Gonzalez - Yes District 3:Benjamin L. Rawson - Yes District 4:Isabella Solis - Yes District 5: John L. Vasquez - Yes Motion passed 7. Presentation ol‘ the List o f Contracts Signed from April 26 - May 5. 2017 - Pamela Wood, Contract Administrator, will discuss. Time: 10:10:56 8. Presentation o f the Services provided by the Doha Ana Cooperative Extension Service and their FY18 Budget Request - Karim A. Martinez, County Program Director and Family & Consumer Sciences Agent. New Mexico State University, will discuss. Time: 10:13:51 May 9, 2017, BOCC Regular Meeting /, 5 CONSENT AGENDA Time: 10:33:18 9. Approve Award o f RFP 17-0029 for Disability Insurance to MetLife and Group Life Insurance to Dearborn National - Lani Davis. Human Resources Department., will discuss. 10. Approve Budget Revision and Resolution Transferring Budget among Payroll, Operating, and Capital Accounts as Indicated - Enrique Vigil. Sheriff, will discuss. RESOLUTION NO. 2017-44 11. Approve Out-of-State Travel for Community Development Employees. Animal Controls/Codes Employees to Attend 40 Hour National Animal Cruelty Investigation (ACI) Certification School Training, in Macomb County, MI August 21 - 25, 2017 - Vicki Lusk. Manager. Animal Controls & Codes, will discuss. 12. Approve a Sole Source Purchase from Adapt Pharma for an Amount not to exceed $170.000.00 to Purchase NARCAN as Part o f the Scope o f Work for a Drug and Overdose Prevention Grant - Jamie Michael. Director, Health and Human Services Department, will discuss. 13. Approve Task Order to W ilson & Company. Inc. Through CES Contract #2014-015 906-002 WCI. to Provide Design Services for Airport Rd. and Industrial Ave, and Delegate Signature Authority to the County Manager for all Related Documents - Robert Armijo, Director. Engineering-Road, will discuss. 14. Approve the Utilization o f US Communities Price Agreement #4400001839 to Procure Equipment for Three (3) Remote Sensing Stations and a Repeater for the Flood Commission's Flood Warning System, and Delegate Signature Authority to the County Manager lor Related Contract Documents - Paul Dugie, Director. Flood Commission, will discuss. 15. Approve Resolution Authorizing Doña Ana County to Comment on and Participate in the Public Regulation Commission Rulemaking Case No. 17-()0046-UT - Nelson Gooding. County Attorney, will discuss. RESOLUTION NO. 2017-45 May 9, 2017, BOCC Regular Meeting /„ 6 Motion to Approve Consent Agenda Items 9-15: Motion: Benjamin L. Rawson Second: Ramon S. Gonzalez District l:B illy G. Garrett - Yes District 2:Ramon S. Gonzalez - Yes District 3:Benjamin L. Rawson - Yes District 4:Isabella Solis - Yes District 5: John L. Vasquez - Absent Motion passed NO TE: Commissioner Vasquez left the meeting before vote on Consent Agenda Items. BREAK Time: 10:34:36 BACK FROM BREAK Time: 10:45:17 APPROVALS 16. A Resolution to Continue Financial Support lor the South Central Regional Transit District (S C R IP ) and Authorizing the Interim County Manager to execute ail Related Documents - District 1 Commissioner Billy Garrett will discuss. Time: 10:45:17 Motion: Billy G. Garrett Second: No Second Motion died for lack of a 2nd. May 9, 2017, BOCC Regular Meeting / . 7 PUBLIC HEARING/ORDINANCE 17. Approve Final Plat for Bishop’s Cap Subdivision - Luis Marmoleio, Senior Planner, Community Development, will discuss. Time: 10:49:30 Motion to Approve Final Plat for Bishop’s Cap Subdivision to Include Findings: May 9, 2017, BOCC Regular Meeting l. 8 F IN D IN G S: Pursuant to §2.12.9 (Final Plat Review and BOCC Action) o f the UDC, “ [t]he BOCC shall not deny a Final Plat if it has previously approved a Preliminary Plat for the proposed subdivision and it Finds that the Final Plat is in substantial compliance with the previously approved Preliminary Plat” : 1. 2 . The Board o f County Com m issioners has jurisdiction to review this application. The property is located outside o f any incorporated municipal zoning authority and is within Doña. Ana County. BOCC Approval o f the Prelim inary Plat on March 27 2015 for B ishop's Cap Subdivison confirm ed that the subdivide!’ furnished documentation o f the following: a. W ater quantity is sufficient to fulfill the maximum annual water requirements o f the subdivision, including w ater for indoor and outdoor domestic uses, to the satisfaction o f the Office o f the State Engineer. b. W ater is o f an acceptable quality for human consumption and measures are taken to protect the water supply from contamination, pursuant to NMED requirements. c. There is a means o f liquid waste disposal for the subdivision, pursuant to NMED requirements. d. There is a means o f solid waste disposal for the subdivision, pursuant to NMED requirements. e. There are satisfactory roads to each parcel, including entry and exit for emergency vehicles, and there are appropriate utility easements to each parcel, according to DAC Fire M arshal’s O ffice and DAC Engineering. , f. g. h. i. 3 Terrain m anagem ent protects against flooding, inadequate drainage, erosion and meets the requirements o f the Design and Construction Standards, according to DA C Flood Com mission and the D oña A na Soil and W ater Conservation District. There are protections for cultural properties, archaeological sites and unmarked burials that m ay be directly affected by the subdivision, as required by the Cultural Properties Act, according to New M exico SHPO. The subdivider can fulfill the proposals contained in the disclosure statement for the subdivision. The subdivision will conform to the New Mexico Subdivision Act and these Regulations. The Final Plat Application is consistent w ith the UDC: a. § 2 .12 (Subdivision Procedures) and m eets requirements for Final Plat Approval. b. §2.12.9 (Final Plat Review and BOCC Action), the Final Plat is in substantial com pliance with the previously approved Preliminary Flat. c. § 2.2.2 (General Notice Requirem ents) and §2.12.5 (Public 1leanings on Preliminary Plats and Finals Plats) as proper notice o f the public hearing was given. d. §2.12.11 a (Recording Plats); improvem ents are in place and have been review ed and approved by the C ounty Engineer. Motion: Benjamin L. Rawson Second: Ramon S. Gonzalez May 9, 2017, BOCC Regular Meeting / #9 District 1:Billy G. Garrett - Absent District 2:Ramon S. Gonzalez - Yes District 3:Benjamin L. Rawson - Yes District 4:Isabella Solis - Yes District 5: John L. Vasquez - Absent M otion passed THE DOÑA ANA COUNTY BOARD OF COUNTY COMMISSIONERS CONVENES AS THE COUNTY BOARD OF APPEALS IN OPEN SESSION. 18. Approve a Special Use Permit for a Winery and Wine Tasting Room - Luis Marmoleio, Senior Planner. Community Development, will discuss. N O TE: Item #18 was Postponed until the BOCC’s next Regular M eeting of May 23, 2017. THE DOÑA ANA COUNTY BOARD OF COUNTY COMMISSIONERS ADJOURNS AS THE COUNTY BOARD OF APPEALS IN OPEN SESSION. CORRESPONDENCE 19'. Lynn Ellins, Deputy County Clerk, will present to the Commission any claims received by Doña Ana County. Time: 11:05:35 THE DOÑA ANA COUNTY BOARD OF COUNTY COMMISSIONERS MAY CONVENE IN CLOSED SESSION, to discuss a limited personnel matter related to the search criteria and process to be used to recruit a permanent County Manager; pursuant to the attorney-client privilege to discuss pending o f threatening litigation regarding comments on the rule making case 17-00046-UT before the New Mexico Public Regulation Commission; and, to discuss bargaining strategy preliminary to collective bargaining negotiations with the International Association o f Fire Firefighter (IAFF) Local 5037; American Federation o f State, County and Municipal Employees, N M Council 18, Local 1529 (Detention Center), Local 1879 (Court Security), and Local 2709 (Blue Collar); and the Communications Workers o f America, Local 7911 as authorized by the Open Meetings Act, NM SA 1978, § 10-15-1 (H)(2)(5) and (7). ' Time: 11:05:53 Motion: Benjamin L. Rawson Second: Ramon S. Gonzalez May 9, 2017, BOCC Regular Meeting j . 10 District 1:Billy G. Garrett - Absent District 2: Ramon S. Gonzalez - Yes District 3:Benjamin L. Rawson - Yes District 4 Isabella Solis - Yes District 5: John L. Vasquez - Absent Motion passed THE DOÑA ANA COUNTY BOARD OF COUNTY COMMISSIONRS MAY CONVENE IN OPEN SESSION to take action, if any, on the closed session items. N O TE: Commissioner Vasquez was not present when the Motion was made to go into Closed Session but, he did attend the Closed Session and was present after the Commission Convened in Open Session. Time: 12:46:41 To Let the Record Reflect that nothing was discussed in Closed Session other than the Items Identified in the M otion to go into Closed Session. THE DOÑA ANA COUNTY BOARD OF COUNTY COMMISSIONERS ADJOURNS AS THE BOARD OF COUNTY COMMISSIONERS AND THE COUNTY BOARD OF FINANCE IN OPEN SESSION. Time: 12:46:54 The Commission Adjourned with no Objection. BOARD OF COUNTY COMMISSIONERS OF DOÑA ANA COUNTY, NEW MEXICO Isabella Solis, Chair, District 4 For / Against John L. V asquez, Vice-Chair, District 5 For / Against Billy G. Garrett, District 1 For / Against Benjamin L. Rawson, District 3 For / Against Ramon S. Gonzalez, District 2 For / Against ATTEST: Scott Krahling County Clerk May 9, 2017, BOCC Regular Meeting / . 11 DOÑA ANA COUNTY BOARD OF COUNTY COMMISSIONERS Doña Ana County Government Center 845 North Motel Boulevard Las Cruces, New Mexico 88007 Telephone: (575) 647-7200 Toll-Free: (877) 827-7200 COUNTY CLERK Initiating Department __May 23, 2017___ Meeting Date Scott Krahling/Cindy C. Padilla Contact Person Agenda item Number ______ [a,______ TITLE OF AGENDA ITEM TO BE CONSIDERED Approval of Minutes for the BOCC W ork Session of May 16,2017. SUM M ARY OF ITEM TO BE CONSIDERED INCLUDING PRESENTATION OF OPTIONS FOR ACTION and ACTION REQUESTED DESCRIPTION OF SUPPORTING DOCUM ENTATION ATTACHED SUM M ARY OF FINANCIAL IMPACT ADM INISTRATIVE REVIEW AND APPROVAL Finance Legal County Manager/ Agenda Review Purchasing Human Resources Assistant County Manager/ Peer Review Planning Other DOCUMENT CONTROL Original/s for signature? Return original/s to: Yes No For Recording? Yes Name Send copy of recorded original/s (resolution and ordinances only) to: Deadline for return of document/s? Yes, return by; No Dept. Name Dept. *$?*/ * * % ,? f% . # * * MINUTES I # $ Chair Isabella Solis called the W ork Session o f the Doña Ana County Board o f Commissioners to order at 9:00 a.m., on Tuesday, May 16, 2017, in the Doha Ana County Commission Chambers, 1st Floor, Doña Ana County Government Center, 845 North Motel Boulevard, Las Cruces. Time: 08:59:23 District 4:Isabella Solis, Chair - Present District 5: John L. Vasquez, Vice-Chair - Absent District 1:Billy G. Garrett, Commissioner - Present District 3 Benjamin L. Rawson Commissioner - Present District 2:Ramon S. Gonzalez, Commissioner - Present Pledge o f Allegiance Time: 08:59:30 Led by: Isabella Solis, BOCC Chair Roll Call o f Commission Members Present Time: 08:59:51 Led by: Lynn J. Ellins, Deputy County Clerk COMMISSION CONVENES AS THE BOARD OF COUNTY COMMISSIONERS IN OPEN SESSION TO DISCUSS: 1. FY18 Preliminary Budget Time: 09:00:06 NOTE: This was only a W ork Session and no Final Decisions or Motions were made. COMMISSION ADJOURNS AS THE BOARD OF COUNTY COMMISSIONERS. Time: 10:02:15 May 16, 2017, BOCC Work Session BOARD OF COUNTY COMMISSIONERS OF DOÑA ANA COUNTY, NEW MEXICO Isabella Solis, Chair, District 4 For / Against John L. Vasquez, Vice-Chair, District 5 For / Against Billy G. Garrett, District 1 For / Against Benjamin L. Rawson, District 3 For / Against Ramon S. Gonzalez, District 2 For / Against ATTEST: Scott Krahling County Clerk May 16, 2017, BOCC Work Session DOÑA ANA COUNTY BOARD OF COUNTY COMMISSIONERS Doña Ana County Government Center 845 North Motel Boulevard Las Cruces, New Mexico 88007 Telephone: (575) 647-7200 Toll-Free: (877) 827-7200 Mav 23, 2017 Meeting Date ^Health and Human Services Initial¡ni> Department ^ Jamie Michael. Director and Eric Crespin.. Interim Fire Chief Contact Person ____ Agenda item Number TITLE OF AGENDA ITEM TO BE CONSIDERED PROCLAIM THE MONTH OF MAY TO BE NATIONAL EMERGENCY MEDICAL SERVICES AND TRAUMA AWARENESS MONTH IN DOÑA ANA COUNTY SUMMARY OF ITEM TO BE CONSIDERED INCLUDING PRESENTATION OF OPTIONS FOR ACTION and ACTION REQUESTED A proclamation requested by the Health and Human Services and Fire and Emergency Services Departments honoring M ay as National Emergency Medical Services and Trauma Awareness Month to celebrate emergency medical services as a vital public service among Doña Ana County. DESCRIPTION OF SUPPORTING DOCUMENTATION ATTACHED Proclamation SUMMARY OF FINANCIAL IMPACT None ADMINISTRATIVE REVIEW AND APPROVAL Finance County Manager/ Agenda Review Purchasing Assistant County Manager Human Resources Planning DOCUMENT CONTROL Original/s for signature? ___Yes No Return original/s to: For Recording?___Yes No Name Send copy of recorded original/s (resolution and ordinances only) to: Deadline for return of document/s? Yes, return by: Name Proclamation U^oña »W COMM/Sa ie I). Hancock, Vicc-Chair, District 4 For / Against Against / Against Dr. David J. GaVti ABSENT Benjamin L.iRawson, District 3 ljeti/L-ia Duarte Bciyav ¡strict 5 For / Against / Against ATTEST L y n n J. E m C o u n ty C lei COUNTY CLFRK DAC Affordable Housing Plan Resolution Table of Contents Executive Summary.............................................................. Summary of Recommendations................. ................... ....1 .... 2 Introduction....................................................................... .... 4 Organization of the Plan................................................ ,...5 Methodology................................................................... ....9 Community and Housing Profile....................................... ..10 Population Characteristics............................................. ..10 Housing Characteristics.......................................... ........ ..18 Household Characteristics............................................. ..19 Housing Market Analysis................................................ ..25 Housing Needs Assessment............................................... ..35 Existing Affordable Housing Resources..................... . ..35 Affordable Housing Service Providers............................ ..37 Affordable Housing Programs.............. ......................... ..38 Existing Needs................................................................ ..41 Summary of Housing Needs........................................... ..44 Land Use and Policy Review.............................................. ..46 Viva Doña Ana................................................................ ..46 Existing Plans, Policies and Ordinances......................... ..48 Constraints and Barriers to Affordable Housing............. ..56 Density Calculations / Development Feasibility Analysis ..63 Goals, Policies and Quantifiable Objectives...................... ..66 Production Goals................................................... .......... ..66 Policy and Regulatory Changes....................................... ..66 Development Partnerships............................................. ..69 Assistance to non-profit housing providers.................... ..70 Funding/financing.......................................................... ..71 Other Assistance............................................................. ..72 Conclusion......................... ,............................................ ..72 Appendix............................................................................. ..74 Appendix A. Stakeholder Interview List.......................... ..76 D O Ñ A A N A C O U N T Y AFFORDABLE HOUSING PLAN jr: ¿ f Appendix B. Zoning M a p s ................................................ 77 Appendix C. Utility Locations and Flood Hazard Areas 78 .............. 79 Appendix D, Housing Resources Figures Figure 1. Doña Ana County Planning Areas and Subareas............................................................ ...... ..7 Figure 2. Private and Government Land Ownership, Doña Ana County.......................................... ..8 Figure 3. Household Income by Block Group............................................................................. ......... 14 Figure 4. New Residential Construction, 2001-2012............................................................................ 26 Figure 5. Building permits issued by dona ana county, 2001-2014................................................... Figure 6. single family new construction and mobile home installation permits, 2013 and 2014 26 Figure 7. Dona Ana County Mortgage Loan Denial Rates by Location.............................................. 30 Figure 8. Reason for Denial of Loan Applications................................................................................. 31 Figure 9. Loan Application Denial Rates by Income..................................................... ....................... 32 Figure 10. Opportunity Areas and Ethnically Concentrated............................................................... 49 Figure 11. County Zoning M ap................................................................................................................. 50 Figure 12. Proposed Sector Plan, Viva Dona Ana Plan 2040, May 15, 2015 Draft........................... 58 Figure 13. USDA Program Eligibility in Doña Ana County........................ ......................................... 72 27 Tables Table 1. Affordable Housing Goals......................................... .................................................. .2 Table 2. Historical Population Trends...................................................................................... 10 Table 3. County Population Projections................................................................................... 11 Table 4. Select Population Characteristic................................................................................ 11 Table 5. Select Population Characteristics................... ........................................ ................... 12 Table 6. Median Household Income by Municipality............................................................... 13 Table 7. Households by Income Range....... ............................................................................ 15 Table 8. Estimated Households by % AMI, County outside of Las Cruces and Mesilla............ 16 Table 9. dona county Employment and Unemployment......................................................... 16 Table 10. Doña Ana county Employment by Industry Class.................................................... 17 Table 11. Average Weekly Earnings, Dona Ana County........... ................................................ 17 Table 12. Housing by Type....................................................................................................... 18 Table 13. Year Structure Built.................................................................................................. 19 Table 14.Households by Type................................................................................ .................. 20 Table 15. Housing Units by Tenure..................... ..................................................................... 20 Table 16. Housing Units Lacking Complete Facilities...................... ......................................... 21 Table 17. Indicators of Overcrowding...................................................................................... Table 18. Selected Monthly Owner Costs as a Percentage of Household Income (SMOCAPI) 22 23 Table 19. Gross Rent as a Percentage of Household Income (GRAPI)..................................... 24 DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN é>f Table 20. Cost Burden by Tenure and Income Range, Doña Ana county outside of Las cruces and Mesilla............................................. ...... .............................. ............. ......................... 24 Table 21. Housing Affordability by %AMI................................................................................................. 28 Table 22. Distribution of For Sale Housing by Price Compared to Income......................................... 28 Table 23. Affordability of housing for sale by number of bedrooms................................................... 29 Table 24. Distribution of Housing for Rent Compared to Income........................................................ 32 Table 25. Affordability of existing rental housing by number of bedrooms....................................... 33 Table 26. Vacancy S ta tu s ............................................................................................................................. 34 Table 27. Affordable Housing Resources............................................................................................. ..... 35 Table 28. Affordable Housing for Sale................................... ................................................................... Table 29. Estimate of Rehabilitation Needs, Doña Ana County Outside of Las Cruces and Mesilla 39 44 Table 30. Summary of Estimated Current Housing Needs..................................................................... 45 Table 31. Residential uses allowed in the performance district........................................................... 51 Table 32. Development standards for Performance district zones........... .................... .................... 52 Table 33. Development Standards for Community and Village Districts............................................ 52 Table 34. ETZ Zoning District Standards.......................................................................................... .......... 55 Table 35. Water and Wastewater Providers in Dona Ana County........................................................ 60 Table 36. Single Family Subdivision Development Feasibility............... ............................................... 63 Table 37. Manufactured or mobile home Single Family Development Feasibility............................ 64 Table 38. Scattered Site Single Family Development Feasibility.......................................................... 64 Table 39. Multifamily Development Feasibility................................................ ............................ .......... 65 Table 40. Affordable Housing Goals........................................................................................................... 66 D O Ñ A A N A C O U N T Y AFFORDABLE HOUSING PLAN ACKNOWLEDGMENTS Doña Ana County Commission District 1: Billy G. Garrett District 2: Dr. David J. Garcia District 3: Benjamin L. Rawson District 4: Wayne D. Hancock District 5: Leticia Duarte-Benavidez Affordable Housing Review Team Diana Bustamante, Executive Director, Colonias Development Council Rose Garcia, Executive Director, Tierra del Sol Housing Corporation Clyde Hudson, Area Director, U.S. Department of Agriculture Robbie Levy, Executive Director, Mesilla Valley Public Housing Authority Juan Olvera, Executive Director, Mesilla Valley Public Housing Authority Nicole Martinez, Executive Director, Community of Hope Concepción Medina, Executive Director, City of Sunland Park Public Housing Eva Nevarez St. John, Community (former Affordable Housing Manager) Theresa Olguin Fisher, Chair, Board of Directors, Mesilla Valley Public Housing Authority Beth Bardwell, Board of Directors, Mesilla Valley Public Housing Authority Maria Vasquez, Executive Director, Habitat for Humanity, Las Cruces Vera Zamora, Housing & Neighborhood Services Manager, Housing and Family Services, City of Las Cruces Doña Ana County Staff Julia T. Brown, Esq., County Manager Daniel Hortert, AICP, Director, Community Development Department Jorge Castillo, Advance Planning, Community Development Department Consultant Team Sites Southwest, Ltd. Co. Rick Bressan, Business Advisory Services Steven D. Howe D O Ñ A A N A C O U N T Y AFFORDABLE HOUSING PLAN S. ¿7 EXECUTIVE SUMMARY Doña Ana County, located in south central New Mexico, encompasses 3,814 square miles and is the second most populated County in the state. The County's population is concentrated along the Rio Grande valley, which bisects the County from north to south. Doña Ana County is home to New Mexico State University. Agriculture is a major economic activity and contributes to the County's rural character, but technology and bi-national commerce and industry also contribute to the County's growth. The County borders El Paso County, Texas and the state of Chihuahua, Mexico as well as Luna, Sierra and Otero Counties in New Mexico. The County offers diversity in its natural and built environments and its cultures and communities. The purpose of this plan is to identify housing needs and barriers to housing development within the County outside of the major urban area of Las Cruces and Mesilla, each of which has its own plan for affordable housing. Plan information is reported for unincorporated areas of the County, including the Chaparral colonia, and the municipalities of Hatch, Anthony and Sunland Park. The plan proposes goals and implementation steps aimed at addressing housing needs. This report conforms to the guidelines set forth by the New Mexico Mortgage Finance Authority (MFA), which administers grants and technical support to New Mexico's municipalities and counties for affordable housing. Adoption of an Affordable Housing Plan by resolution and an Affordable Housing Ordinance, both as approved by MFA, will allow Doña Ana County to donate toward projects that meet the affordable housing needs identified in the plan. The plan is organized into the following sections: Community and Economic Profile. This section describes demographic trends and projections, highlighting community characteristics that are relevant to housing needs. It includes data about populations that often have special housing needs, including single parent families, seniors, disabled individuals and people living in poverty. Housing Assessment. The housing assessment examines the types, condition and affordability of housing in Doña Ana County and surrounding communities. It also examines characteristics and affordability of for-sale housing currently on the market as well as available rental housing. Finally, it describes local programs and organizations working to address housing needs in the County. Housing Needs. This section provides a concise description of the specific housing needs by type, population and number of units needed. Land Use and Policy Review. The policy review examines relevant planning documents, County ordinances and their impacts on affordable housing. This section also describes other governmental and non-governmental constraints to affordable housing development, including land use and environmental barriers. Goals, Policies and Quantifiable Objectives. This section puts forth specific yearly objectives for the number of housing units by type to be built or rehabilitated. It then lists a number of goals and action steps, including the strategies explained in the previous chapter, which should be implemented in order to achieve these objectives. The responsible party for carrying out each action step is noted, whether it be the County government, a nonprofit organization, or another entity. Data for this plan came from many sources. The most current sources of demographic data Include American Community Survey 5-Year Estimates and the 2010 Census. Community input regarding DONA ANA COUNTY AFFORDABLE HOU5ING PLAN 5^ ^ housing needs was collected through meetings with local housing providers and people knowledgeable about the housing market in the various communities in the County, and interviews with key stakeholders. Housing is generally considered to be affordable when a family pays no more than 30% of income for housing. The area median income (AMI) for a family of four in Doña Ana County in 2014 is $47,200. The maximum house price affordable to households at 100% of AMI is $181,572, and the maximum house price affordable to households at 120% of AMI is $217,887. While there are a few homes available for sale at prices affordable to households at these income levels, over half of housing for sale is priced higher than is affordable by a household at 120% of AMI, 15% is affordable to households with incomes between 100% and 120% AMI There are over 1,000 subsidized or affordable rental apartments in Doña Ana County outside of Las Cruces and Mesilla. Apartments are concentrated in the border communities of Anthony, Santa Theresa and Sunland Park. However, the waiting lists of households eligible for subsidized rentals are more than double the existing units, and limited vacancies are generally in transition from one tenant to another. Of approximately 1,000 households that receive rental vouchers in the County, 130 households have chosen to live in communities outside of Las Cruces and Mesilla. Doña Ana County has established nonprofits that provide subsidized rentals, affordable homeownership opportunities, transitional and temporary housing, and permanent supportive housing as well as service providers to support families who need housing. There are also service providers that specialize in rehabilitation and weatherization. The need is for additional financial resources to allow existing organizations to provide additional affordable housing. Summary of Recommendations Housing Production Goals A summary of the housing goals for the County outside of Las Cruces and Mesilla, which have separate plans, is shown in Table 1. These goals are intended to meet current needs and projected needs over the next ten years. DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN Housing and below Policy Changes • Adopt an affordable housing plan and ordinance in compliance with the Affordable Housing Act, as reviewed and approved by MFA. • Make sure that other County initiatives are consistent with the Affordable Housing Plan, ensuring that affordable housing is recognized as an issue in other County documents. • Link affordable housing and economic development investments • Reduce or eliminate performance zoning in target areas • Standardize permitting for approved affordable housing projects • Standardize permitting for infill • Support infrastructure financing, including using Tax Increment Development Districts and Public Investment Districts to help finance infrastructure improvements in large developments that include affordable housing • Encourage regionalization of utilities and expedited development review in areas where water service providers have the capacity to accommodate growth. Development Partnerships • Facilitate partnerships with other governmental and private entities. Potential partnerships could include joint projects with private or non-profit entities where the County contributes land or infrastructure improvements, funding of specific programs that further County goals, support for legislative funding or grant requests or similar support to other entities. • Surplus County property can be sold or leased to provide a revenue stream that funds affordable housing initiatives. Land acquisition could include surplus properties that might be donated by the other entities, such as the BLM. • One of the most important roles that the County can play is making sure that infrastructure in target growth areas is in place. Assistance to non-profit housing providers • Rehabilitation or replacement of existing structures through assistance to existing organizations that provide rehabilitation programs in the County. • Grants or other direct financial assistance to non-profit housing providers. Funding/financing • Partner with local mortgage lenders to administer County financing programs. • Low interest loan pool created with County funds. • Support for non-profit housing initiatives. DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN S. 'i° INTRODUCTION The State of New Mexico enacted amendments to the New Mexico Affordable Housing Act in 2007. The Affordable Housing Act permits State and local governments to provide or pay the cost of land, buildings and/or necessary financing for affordable housing projects. Affordable housing projects are residential housing primarily for persons or households of low or moderate income. Under the provisions of the Act, a municipality may: A. Donate, provide or pay all, or a portion, of the costs of land for the construction on the land of affordable housing; B. Donate, provide or pay all or a portion of the costs of conversion or renovation of existing buildings into affordable housing; C. Provide or pay the costs of financing or infrastructure necessary to support affordable housing projects; or D. Provide or pay all or a portion of the costs of acquisition, development, construction, financing, operating or owning affordable housing. The Act requires the local governing body to adopt an Affordable Housing Plan and Ordinance if it wishes to provide donations towards affordable housing. Doña Ana County is in the process of extensive planning for the County's future through the Viva Doña Ana initiative, which has adopted six livability principles that will help make healthy communities by strengthening the County's people, places and prosperity. The livability principles have a direct bearing on housing choices and affordability. The six principles are: P rin cip le 1: Provide M ore Transportation Choices " B e tte r tr a n s p o r ta tio n m e a n s m o r e tim e f o r m y f a m ily , c le a n e r air, a n d h e a lth ie r c o m m u n itie s . D e v e lo p s a fe , re lia b le , a n d a ffo r d a b le tr a n s p o r ta tio n c h o ic e s to d e c r e a s e h o u s e h o ld tr a n s p o r ta tio n c o sts, r e d u c e e n e r g y c o n s u m p tio n a n d d e p e n d e n c e o n n o n - d o m e s tic re so u rc e s, im p r o v e a ir q u a lity , re d u c e g r e e n h o u s e g a s e m is s io n s , a n d p r o m o te p u b lic h e a l th ." Research conducted for the Viva Doña Ana project indicate that 97.8% of households spend more than 45% of income on combined transportation and housing. Transportation choices are considered in analyzing the best locations for affordable housing. P rin c ip le 2 : Promote Equitable, Affordable Housing " B eing a b le to a f fo r d a g o o d p la c e to liv e is i m p o r ta n t to e v e r y o n e . M a k e d e c is io n s t h a t p r o v id e d iff e r e n t ty p e s o f h o u s in g to s u p p o r t a m o r e d iv e rse c o m m u n ity a c ro ss th e re g io n . M o r e c h o ic e s t h a t a re m o r e a ffo r d a b le , c lo s e r to w o rk, a n d c a n r e d u c e th e a m o u n t o f y o u r p a y c h e c k th a t g o e s to h o u s in g a n d tr a n s p o r ta tio n ." The Affordable Housing Act allows the County to participate directly in providing housing that meets this goal. P rin cip le 3: Enhance Economic Competitiveness " Q u a lity e d u c a tio n a n d w o r k o p tio n s m e a n s u c c e s s f o r m y f a m ily . T he s u c c e s s o f th e r e g io n is b a s e d o n o u r a c c e s s to e d u c a tio n , jo b s , a n d re a l w a g e s to live a s ta b le q u a lity DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN ¿ 7f o f life. T he lo c a l g o v e r n m e n t a n d p r iv a te b u s in e s s e s n e e d to b e in v o lv e d in e n c o u r a g in g jo b r e te n tio n , g r o w th , a n d e c o n o m ic p r o s p e r ity . This n e e d s to b e d o n e w ith a fo c u s o n th e a v a ila b ility o f a d e q u a t e h o u s in g f o r e m p lo y e e s o f e x is tin g a n d p o te n tia l f u t u r e b u s in e s s e s , in d u strie s , a n d in s titu tio n s in o u r r e g io n ." While this goal focuses on education and work options, it recognizes that adequate housing for employees of existing and potential future businesses, industries, and institutions in the region is also crucial to economic competitiveness. P rin cip le 4: Support Existing Communities " W o rk in g t o b u ild u p o u r c o m m u n itie s . C o n c e n tr a te lo c a l a n d f e d e r a l m o n ie s f o r i n v e s t m e n t in o u r e s ta b lis h e d u r b a n a n d ru ra l c o m m u n itie s . A ll a r e a s a r e s u b je c t to g r o w th o v e r tim e . M a k in g s m a r t d e c is io n s o n w h e r e to p la c e g r o w th , h o w to im p r o v e e x is tin g b u ild in g s, a n d w h a t ty p e s o f d e v e l o p m e n t s h o u ld g o w h e r e c a n s tr e n g th e n o u r e x istin g c o m m u n itie s . A s a re g io n , d e c is io n s n e e d to b e m a d e a n d to o ls p u t in p la c e to d ir e c t th e r ig h t k in d o f g r o w th in th e r ig h t lo c a tio n s ." Investments in housing - improving the existing housing stock and directing new housing to the right locations - are part of support for existing communities. P rin cip le 5: Coordinate Policies & Leverage Investment "Let's w o r k t o g e t h e r f o r a s tr o n g e r re g io n . C o o p e r a tio n a m o n g fe d e r a l, s ta te , a n d lo c a l g o v e r n m e n ts , o ffic ia ls, a n d p la n n in g e ffo r ts w ill s tr e n g th e n th e r e g io n b y p r o p e r ly c h a n n e lin g f e d e r a l fu n d in g a n d c o o r d in a tin g la r g e -s c a le im p r o v e m e n ts (like tr a n s p o r ta tio n a n d e n e r g y p r o d u c tio n ). W o r k in g to g e th e r a s a r e g io n s tr e n g th e n s o u r p u ll to s e c u r e f e d e r a l f u n d in g a n d f u n n e l re a l m o n e y to r e g io n -w id e p r o je c ts ." Decisions about the locations of affordable housing should be coordinated with the County's broader policies and investment in future growth. P rin cip le 6: Value Communities & Neighborhoods "I w o u ld lik e a c o m m u n ity g a r d e n in m y n e ig h b o r h o o d . V a lu in g c o m m u n itie s a n d n e ig h b o r h o o d s m e a n s m a k in g p la c e s t h a t w e e n jo y b e in g in, su c h a s g r e a t w a lk in g p a th s , p a rk s, p la z a s , m a r k e ts , a n d c o m m u n ity g a r d e n s . B rin g in g th e s e a m e n itie s in to o u r c o m m u n itie s c o n tr ib u te s to a d iv e rse , s u p p o r tiv e , e ffic ie n t, h e a lth y , a n d liv a b le c o m m u n ity , a n d c o n tr ib u te s to th e o v e ra ll w e ll-b e in g o f r e s id e n ts a n d v isito rs ." The County's decisions about amenity investments help support strong residential communities. The experience of Doña Ana County and the analyses conducted for this plan indicate that the powers granted to the County through the Affordable Housing Act will help the County accomplish its housing goals. Organization of the Plan The affordable housing plan Identifies existing and projected future housing needs in Doña Ana County outside of the urban communities of Las Cruces and Mesilla. This affordable housing plan contains the D O Ñ A A N A C O U N TY AFFORDABLE HOUSING P U N /. Zi- information that has been collected and analyzed to further an understanding of the housing market and unmet needs in Doña Ana County. The plan also considers the needs of the municipalities of Hatch, Sunland Park and Anthony, and the Chaparral Colonia. Figure 1 shows the locations of communities in the County, and Figure 2 shows general land ownership. The County's communities extend along the Rio Grande and the East Mesa where privately owned land is located. The affordable housing plan identifies specific obstacles to affordable housing and unique opportunities available to meet the needs identified in the community profile and housing needs assessment. Then, the plan recommends how, when, where and by whom local housing issues will be addressed. These recommendations are contained in goals, policies, and quantifiable objectives to increase affordability by housing types for owners and renters. The programs that are recommended, which include actions by the County administration and other housing providers, address specific needs for construction, rehabilitation, preservation and financing of affordable housing. The affordable housing plan is organized according to the MFA requirements for such plans, with the following sections: Community Profile. Demographics, including the characteristics of the local population, economic conditions, and housing, including general characteristics of the County's existing housing stock. Housing Market Analysis, including the recent development trends and the market for homes for sale and rentals Housing Needs Assessment, including existing and projected needs Land Use and Policy Review, including potential affordable housing sites and constraints to developing affordable housing. Goals, Policies and Quantifiable Objectives, including the target number of new and rehabilitated units per year by type. This section identifies the incentives that the County intends to put in place and the responsible entities for implementing the plan. D O Ñ A A N A C O U N T Y AFFORDABLE HOUSING PLAN FIGURE 1. DONA ANA COUNTY PLANNING AREAS AND SUBAREAS Areas and Sub Areas Sierra County II: . . O?mno Legend Conceptual Planning Areas North Valley (NV) sLasCruces Metro (LCM) 3South ValieylSV) E:e3 Border (BOR) . 4?14?? .. . Conceptual Planning SgAreas Chihuahua, Rep Incorporated Municipality hire-Isl 5 and El Paso County,TX ublic of Mexico ll A: . . iy-wgyna FIGURE 2. PRIVATE AND GOVERNMENT LAND OWNERS HI P , DOÑA ANA COUNTY ev T 5 i ts ( f 9 E- C o u L Table 8 shows the estimated distribution of households by percent of AMI in the County outside of Las Cruces and Mesilla. Approximately one-third of households have incomes over 120 percent of AMI, and 18 percent have incomes less than 30 percent of AMI. TABLE 8. ESTI MATED HOUSEHOLDS BY % AMI , COUNTY OUTSI DE OF LAS CRUCES AND MESILLA LT 30% 30-40% 40-50% 50-60% 60-70% 70-80% 80-90% 90-100% 100-120% Over 120% Total $0 $14,160 $18,880 $23,600 $28,320 $33,040 $37,760 $42,480 $47,200 $56,640 $14,160 $18,880 $23,600 $28,320 $33,040 $37,760 $42,480 $47,200 $56,640 3,672 2,725 550 3,672 2,203 2,680 794 3,275 5,678 1,531 2,177 904 4,612 878 1,501 1,501 890 4,769 1,333 3,686 5,019 6,397 2,753 2,680 2,326 2,177 1,781 1,501 1,501 2,223 11,486 34,825 7,800 7,800 S o u rc e : A m e r ic a n C o m m u n ity S u rv e y , 2 0 0 9 - 2 0 1 3 5 -Y e a r E s tim a te , S ite s S o u t h w e s t Employment Employment and Unemployment Doña Ana County's civilian labor force grew by over 30,000 from 1990 to 2010 and has continued to grow since 2010. During the same time period, employment grew as well. While the unemployment rate increased from 2000 to 2010, it has remained steady at a little over or under 7.5% since 2010. Unemployment in Doña Ana County has historically been higher than the state, but during the recession years, the County's unemployment rate did not increase as much as the state rate. In 2013, unemployment in Doña Ana County was similar to the state as a whole. TABLE 9. DONA COUNTY EMPLOYMENT AND UNEMPLOYMENT Civilian Labor Force______________________ 60,163 76,503 Employment 55,312 71,808 84,276 84,5_68 85JI38 85,859 _ 4,851 4,695 7,105 7,033 6,747 6,971 _ _ Unemployment 91,381 91,601 92,285 92,830 Rate___________________________________ 8.10% 6.10% 7.80% 7.70% 7.30% 7.50% New Mexico Unemployment Rate 4.00% 9.60% 8.90% 8.10% 7.40% 5.60% S o u rc e : N e w M e x ic o D e p a r tm e n t o f W o r k fo r c e S o lu tio n s Industries The largest private sector industry classes in the County in terms of number of employees are agriculture, retail trade, health care and social services, and accommodation and food services. The number of jobs in agriculture has declined since 2001; while there have been increases in the other three classes. Professional and technical services jobs have also exhibited growth since 2001. Government jobs account for about 26% of all jobs. DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN X S3 18.4% 7.9% 7.7% 6.7% 6.3% 5.1% 4.3% 4.3% 6.4% 33.0% 100.0% TABLE 10. DOÑA ANA COUNTY EMPLOYMENT BY I NDUSTRY CLASS Agriculture, Forestry, Fishing & Hunting 4,313 Mining — 3,433 3,317 40 20 279 354 398 Construction 3,141 3,557 3,489 Manufacturing 3,129 2,826 2,709 Utilities Wholesale Trade 1,136 1,274 1,208 Retail Trade 6,368 6,947 7,575 Transportation & Warehousing 1,086 1,282 1,336 Information Finance & Insurance Real Estate & Rental & Leasing Professional & Technical Services Management of Companies & Enterprises Administrative & Waste Services Educational Services Health Care & Social Assistance 900 848 907 1,297 1,516 1,735 651 722 703 2,414 3,749 3,938 59 94 35 3,052 3,942 3,175 229 384 524 6,835 10,685 12,230 850 1,146 1,025 Accommodation & Food Services 4,685 5,890 6,714 Other Services, Except Public Adm inistration 1,231 1,417 1,291 Arts, Entertainment, and Recreation 0 0 0 Total Private 41,705 50,106 52,330 Total Government 15,984 18,967 17,988 Total All Industries 57,689 69,074 70,317 Non-Classified S o u rc e : N e w M e x ic o D e p a r tm e n t o f W o r k fo r c e S o lu tio n s Significant economic activity is taking place in the Santa Teresa area with the opening of the Union Pacific intermodal facility and related warehousing and distribution facilities and value-added services for imports and exports. This intermodal facility is expected to employ about 600 people by 2025. Wages Earnings are reported for the state of New Mexico and Metropolitan Statistical Areas (MSAs). The Las Cruces MSA encompasses Doña Ana County. Average hourly earnings in Dona Ana County are about the same as the state average; however, average weekly hours are below the state average. As a result, average weekly earnings are lower than the state average. TABLE 11. AVERAGE WEEKLY EARNI NGS, DONA ANA COUNTY Average hourly earnings Average weekly hours Average weekly earnings Ave Nov. Oct. Nov. Nov. Oct. Nov. Nov. Nov. Oct. Nov. 2013 2014 2014 2013 2014 2014(p) 2013 2013 2014 2014 New Mexico 34.9 34.5 34.9 $20.62 $20.54 $20.47 $719.64 $708.63 $714.40 Las Cruces MSA 33.6 33.0 32.8 $19.28 $21.24 19.56 $647.81 $700.26 $641.57 S o u r c e : US D e p a r tm e n t o f L a b o r, B u r e a u o f L a b o r S ta tis tic s DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN s- - f Housing Characteristics Type Housing in Doña Ana County is predominantly single family detached homes and mobile homes. In the County outside of Las Cruces and Mesilla, over 92 percent of housing is either single family detached or mobile homes. In the outlying municipalities and Chaparral, the percentage of the housing stock that is mobile homes ranges from 24 to 69%, with the highest percentage in Chaparral. Most multifamily housing is in Sunland Park and Anthony. There are very few single family attached units, such as townhouses, except in Sunland Park. 1-unit, detached 47,110 57.4% 24,434 57.5% 814 81.2% 21,862 56.7% 1-unit, attached 2,869 3.5% 2,368 5.6% 29 2.9% 472 1.2% 2 units 2,246 2.7% 1,802 4.2% 58 5.8% 386 1.0% 4.1% 2,659 6.3% 42 4.2% 697 1.8% 3 or 4 units 3,398 5 to 9 units 3,500 4.3% 2,669 6.3% 46 4.6% 785 2.0% 10 to 19 units 2,043 2.5% 1,875 4.4% 0 0.0% 168 0.4% 20 or more units 2,900 3.5% 2,551 6.0% 0 0.0% 349 0.9% Mobile home 17,892 21.8% 4,060 9.6% 14 1.4% 13,818 35.8% Boat, RV, van, etc. 91 0.1% 46 0.1% 0 0.0% 45 0.1% Total housing units 604 100.0% 4,138 100.0% 2,826 100.0% 4,743 1-unit, detached 404 66.9% 2,371 57.3% 1,435 50.8% 1,404 29.6% 1-unit, attached 3 0.5% 180 4.3% 12 0.4% 11 0.2% 2 units 11 1.8% 160 3.9% 126 4.5% 0 0.0% 3 or 4 units 4 0.7% 164 4.0% 128 4.5% 49 1.0% 5 to 9 units 32 5.3% 112 2.7% 221 7.8% 0 0.0% 10 to 19 units 0 0.0% 0 0.0% 0 0.0% 0 0.0% 20 or more units 0 0.0% 166 4.0% 0 0.0% 0 0.0% 150 24.8% 985 23.8% 904 32.0% 3,279 69.1% 0 0.0% 0 0.0% 0 0.0% 0 0.0% Mobile home Boat, RV, van, etc. S o u rc e : A m e r ic a n C o m m u n ity S u rv e y , 5 -Y e a r E s tim a te s , 2 0 0 9 - 2 0 1 3 DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN s. / r Age of Housing Stock Over 60 percent of Do?a Ana County?s housing stock has been built since 1980 and is less than 35 years old.'However, over 4,000 homes in the rural communities and municipalities were built prior to 1960 and are more than 50 years old. An additional 9,000 homes were built between 1960 and 1980 and are 35 to 50 years old. TABLE 13. YEAR STRUCTURE BUILT Remainderof Do?a Ana County Las Cruces Mesilla County Year Structure Built Estimate Percent Estimate Percent Estimate- 5 E?Percenf tEstimate Percent Total housing units 82,049 100.0% 42,464 100.0% 1,003 100.0% 38,582 100.0% Built 2010 or later 979 13% 604 1.4% 0 0.0% 375 1.0% Built 2000 to 2009 17,859 21.8% 11,512? 27.1% 75 7.5% 6,272 16.3% Built 1990 to 1999 16,817 20.5% 7,111 16.7% 121 12.1% 9,585 24.8% Built 1980 to 1989 15,747 19.2% 6,471 15.2% 62 6.2% 9,2?14- 23.9% Built 1970 to 1979 13,333 16.3% 5,996 14.1% 132 13.2% 7,205 18.7% Built 1960 to 1969 5,915 7.2% 3,910 9.2% 134 13.4% 1,871 4.8% Built 1950 to 1959 6,165 7.5% 4,243 10.0% 140 14.0% 1,782 4.6% Built 1940 to 1949 1,989 2.4% 1,152 2.7% 20 2.0% 817 2.1% Built 1939 or earlier 3,245 4.0% 1,465 3.4% 319 31.8% 1,461 3.8% Sunland Park Anthony Chaparral Ye?r seture Built? Estimate Percent Estimate Percent Estimate Percent. Estima??gi Pereent Total housing units 604 100.0% 4,138 100.0% 2,826 100.0% 4,743 100.0% Bum 2010 or later 9 1.5% 62 1.5% 53 1.9% 31 0.7% Built 2000 to 2009 28 4.6% 837 20.2% 527 18?.6% Built 1990 to 1999 104 17.2% 1,192 28.8% 657 23.2% 1,565 33.0% Bui 11980t0 1989 93 15.4% 949 22.9% 793 281%7 7 1:307 273% Built 1970 to 1979 61 10.1% 694 16.8% 413 14.6% 1,049 22.1% Bui t1950 to 1959 67 11.1% 235 5.7% 223 7.9% 179 3.8% Built 1950 to 1959 63 10.4% 90 2.2% 105 3.7% 28 0.6% Built 1940 to 1949 80 13.2% 29 0.7% 8 0.3% 41 0.9% Built 1939 or earlier 99 16.4% 50 1.2% 47 1.7% 12 0.3% Source: American Community Survey, 5?Year Estimates, 2009-2013 Household Characteristics Existing Households Over two?thirds of households in the County are family households, which include the householder and one or more related people. However, the percentage of family households is highest in the communities outside of Las Cruces and IVIesilla where there is a higher percentage of non husband?wife families, and particularly female headed households. DONA ANA COUNTY AFFORDABLE HOUSING PLAN 5 57?, Housing Units By Tenure Of an estimated 38,582 housing units in Doña Ana County, 90 percent are occupied. For the County as a whole, approximately two-thirds are owner occupied and one-third are rentals. The ownership rate in the County outside of Las Cruces and Mesilla is higher than the County as a whole - 74 percent of occupied units outside of Las Cruces and Mesilla are owner occupied. The homeowner vacancy rate in the County is very low at two percent, and the rental vacancy rate is an estimated seven percent. Vacancy rates outside of Las Cruces and Mesilla are lower - 1.2 percent for owner housing and 5.2 percent for rentals. The distribution between owner and renter occupied housing in Hatch, Sunland Park and Anthony is similar to the County as a whole. In Chaparral, on the other hand, over 80 percent of occupied housing is owner occupied. According to Census estimates, households are larger in the outlying municipalities and Chaparral. The owner vacancy rates are low. Rental vacancy rates are very low in Hatch and Sunland Park and higher in Chaparral. TABLE 15. HOUSI NG UNITS BY TENURE Estim ate Percent Estim ate Percent Estimate Percent Estimate Percent Total housing units 82,049 100.0% 42,464 100.0% 1,003 100.0% 38,582 100.0% Occupied housing units 73,797 89.90% 38,068 89.60% 904 90.10% 34,825 90.26% Vacant units 8,252 10.10% 4,396 10.40% 99 9.90% 3,757 9.74% Subject Owner occupied units 48,269 65.4% 38,068 57.5% 535 59.2% 25,853 74.2% Renter occupied units 25,528 34.6% 21,881 42.5% 369 40,8% 8,972 25.8% Average HH size - owner 2.82 NA 2.56 NA 2.75 NA NA NA Average HH size - renter 2.73 NA 2.49 NA 1.89 NA NA NA Homeowner vacancy rate 2.1% NA 3.2% NA 0.0% NA 1.2% NA Rental vacancy rate 7.0% NA NA 5.2% NA 8.1% DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN NA 0.0% Total housing units 604 100.0% 4,138 100.0% 2,826 100.0% 4,743 100.0% Occupied housing units 506 83.8% 3,954 95.6% 2,567 90.8% 3,965 83.6% Vacant units 98 16.2% 184 4.4% 259 9.2% 778 16.4% Owner occupied units 349 69.0% 2,614 66.1% 1,616 63.0% 3,167 79.9% Renter occupied units 157 31.0% 1,340 33.9% 951 37.0% 798 20.1% Average HH size - owner 3.68 NA 3.78 NA 3.67 NA 3.36 NA Average HH size - renter 2.52 NA 3.44 NA 3.06 NA 3.4 NA Homeowner vacancy rate 0.0% NA 0.0% NA 0.0% NA 2.6% NA NA 4.2% NA 8.9% NA Rental vacancy rate 0.0% NA 1.3% S o u rc e : A m e r ic a n C o m m u n ity S u rv e y , 5 -Y e a r E s tim a te s , 2 0 0 9 - 2 0 1 3 Housing Problems The Census identifies "problems" that are considered to be indicators of substandard housing conditions: units lacking complete plumbing or kitchen facilities, no telephone service available and overcrowding. Housing in Doña Ana County is more likely than New Mexico to have complete plumbing and kitchen facilities. Households are also more likely to have phone service available. DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN Overcrowded housing conditions are defined as more than one person per habitable room, and severe overcrowding is defined as more than 1.5 persons per habitable room. Overcrowding in Doña Ana County is similar to conditions in New Mexico. Homes in the County outside of urban areas are more likely to be overcrowded, with 3.5% of housing units having 1 to 1.5 occupants per room compared to 2.5% for the state. Homes in Doña Ana County are slightly less likely than the state overall to be severely overcrowded. Although the percentage of total housing is low, 2,300 units outside of Las Cruces and Mesilla are overcrowded or severely overcrowded. TABLE 17. INDICATORS OF OVERCROWDING 73,797 1.00 or less 70,678 95.8% 32,477 84.2% 96.5% 1.01 to 1.50 2,558 3.5% 1,946 5.0% 2.5% 561 0.8% 402 1.51 or more Doña Ana County Occupants per Room 34,825 100.0% Occupied housing units 100.0% Las Cruces 100.0% 1.0% 1.0% County Outside of Las Cruces and Mesilla Mesilla Estimate Percent Estimate Percent Estimate Percent Estimate Percent Occupied housing units 73,797 100.0% 42,464 100.0% 904 100.0% 34,825 100.0% 1.00 or less 70,678 95.8% 37,343 98.1% 858 94.9% 32,477 84.2% 1.01 to 1.50 2,558 3.5% 590 1.5% 22 2.4% 1,946 5.0% 1.51 or more 561 0.8% 135 0.4% 24 2.7% 402 1.0% Sunland Park Occupants per Room Anthony Chaparral Estimate Percent Estimate Percent Estimate Percent Estimate Percent Occupied housing units 506 100.0% 3,954 100.0% 2,567 100.0% 3,965 100.0% 1.00 or less 449 88.7% 3,488 88.2% 2,346 91.4% 3,573 90.1% 1.01 to 1.50 54 10.7% 398 10.1% 179 7.0% 291 7.3% 1.51 or more 3 0.6% 68 1.7% 42 1.6% 101 2.5% S o u rc e : A m e r ic a n C o m m u n ity S u r v e y , 5 -Y e a r E s tim a te s 2 0 0 9 - 2 0 1 3 Cost Burden According to the US Department of Housing and Urban Development, housing is considered "affordable" when a household pays no more than 30 percent of its household income on housing. Households that pay more than 30 percent of their income in housing costs are considered to be "cost burdened." The Census reports this information when it has enough information to compute selected monthly housing costs as a percentage of household income, as shown in Table 18 and Table 19. Selected monthly owner costs include mortgage payments, taxes and insurance, utilities and fuels. Gross rent is the contract rent paid plus the average monthly cost of utilities and fuels, if paid by the renter. In Doña Ana County, 33% of homeowners with a mortgage and 58% of renters have a cost burden. Outside of the urban areas of Las Cruces and Mesilla, 36% of homeowners with a mortgage and 57% of renters have a cost burden. The cost burden for owners with a mortgage is particularly high in Chaparral, a community with a very high ownership rate, where over half of homeowners with a DOÑA ANA COUNTV AFFORDABLE HOUSING PLAN ■s, & mortgage pay more than 30 percent of income for housing. Over 65 percent of renters in Anthony pay more than 30 percent oftheir incomes in gross rent. TABLE 18. SELECTED OWNER COSTS AS A PERCENTAGE OF HOUSEHOLD INCOME County Outside of Do?a Ana County Las Cruces Mesilla Las Cruces and Mesilla Subject Estimate Percent Estimate Percent Estimate Percent TEs?timate Percent 22:12:?? With a 27,931 14,496 323 13,112 Less than 20.0 percent 10,197 36.5% 5,417 37.% 160 49.5% 4,620 35.2% 20.0 to 24.9 percent 5,427 19.4% 3,137 21.6% 60 18.6% 2,230 17.0% 25.0 to 29.9 percent 7 2,857 10.2% 1,251 8.6% 33 10.2% 1,573 12.0% 30.0 to 34.9 percent 2,774 9.9% 1,470 10.10% 0 0.0% 1,304 9.9% 35.0 percent or more 6,676 23.9% 3,221 22.20% 70 21.7% 3,385 25.8% 22:12:?? WithOUt a 19,941 7,197 212 12,532 Less than 10.0 percent 9,448 47.4% 3,740 52.0% 158 74.5% 5,550 44.3% 10.0 to 14.9 percent 3,661 18.4% 1,330 18.% 5 2.4% 2,326 18.6% 15.0 to 19.9 percent 1,969 9.9% 611 8.5% 13 6.1% 1,345 10.7% 20.0 to 24.9 percent 1,306 6.5% 424 5.9% 36 17.0% 846 6.8% 25.0 to 29.9 percent 1,000 5.0% 343 4.8% 0 0.0% 657 5.2% 30.0 to 34.9 percent 776 3.9% 159 2.2% 0 0.0% 617 4.9% 35.0 percent or more 1,731 8.9% 590 8.2% 0 0.0% 1,191 9.5% Sunland Park Anthony Chaparral Sabject" Estimate Percent PerEeWMstII?ne PercEnt Estimate PerCEnt? With a 172 1,165 905 1,489 Less than 20.0 percent 70 4?0.7% 314 18.4% i 386 42.7% 447 30.0% 20.0 to 24.9 percent 30 17.4% 228 19.6% 132 14.6% 137 9.2% 25.0 to 29.9 percent 36 20.9% 192 16.5% 0 0.0% 118 7.9% 30.0 to 34.9 percent 10 5.8% 75' 6.2% 111 12.3% 128 8.6% 35.0 percent or more 26 15.1% 459 39.4% 276 30.5% 659 44.3% WithOUt a 177 1,395 701 1,662 Less than 10.0 percent 54 30.5% 35 463% 277? 39.5% 654 39.4% 10.0 to 14.9 percent 38 21.5% 276 19.8% 218 3?1.1% 166 ?10.0% 15.0 to 19.9 percent 45 25.4%? 99 7.1% 55 7.8% 357 21.5% 20.0 to 24.9 percent 4 2.3% 107 7.7% 36 5.1% 79 4.8% 25.0 to 29.9 percent 24 13.6% 51 3.7% 29 102 30.0 to 34.9 percent 9 5.1% 95 6.8% 12 1.7% 51 3.1% 35.0 percent or more 3 1.7% 122 8.7% 74 10.6% 253 15.2% Source: American Community Survey, 5-Year Estimates 2009?2013; Estimates exclude units where SMOCAPI cannot be calculated. DONA ANA COUNTY AFFORDABLE HOUSING PLAN 5 7'31? TABLE 19. GROSS RENT AS A PERCENTAGE OF HOUSEHOLD I NCOME (GRAPI) Subject Estim ate Percent Estim ate Percent Estimate P ercent Estim ate Percent Occupied units paying rent 22,997 Less than 15.0 percent 2,597 11.3% 1,654 11.0% 31 8.6% 912 12.0% 15.0 to 19.9 percent 2,200 9.6% 1,353 9.0% 99 27.6% 748 9.9% 20.0 to 24.9 percent 2,336 10.2% 1,595 10.6% 13 3.6% 728 9.6% 25.0 to 29.9 percent 2,607 11.3% 1,679 11.1% 56 15.6% 872 11.5% 30.0 to 34.9 percent 2,216 9.6% 1,507 10.0% 35 9.7% 674 8.9% 35.0 p ercent or m ore 11,041 48.0% 7,280 48.3% 125 34.8% 3,636 48.0% Estim ate Percent Estimate Percent Estimate Percent Estim ate Percent Less than 15.0 percent 21 17.6% 123 10.1% 63 7.5% 43 6.4% 15.0 to 19.9 percent 18 15.1% 146 12.0% 68 8.1% 88 13.2% 20.0 to 24.9 percent 35 29.4% 145 11.9% 45 5.4% 44 6.6% 25.0 to 29.9 percent 9 7.6% 171 14.0% 104 12.4% 125 18.7% 30.0 to 34.9 percent 33 27.7% 137 11.2% 72 8.6% 48 7.2% 35.0 percent or m ore 3 2.S% 498 40.8% 485 57.9% 320 47.9% Subject 15,068 359 7,570 S o u rc e : A m e r ic a n C o m m u n ity S u r v e y , 5 -Y e a r E s tim a te s 2 0 0 9 -2 0 1 3 ; E s tim a te s e x c lu d e u n its w h e r e GRAPI c a n n o t b e c o m p u te d . Housing cost burdened households in Doña Ana County outside of Las Cruces and Mesilla are disproportionally low and moderate income households. Nearly 60 percent of homeowners and over 90 percent of renters with incomes less than $20,000 have a cost burden. The percentage of household with a cost burden decreases as incomes go up, but a substantial percentage of households with incomes at 80% of the area median ($37,760) or below pay 30% or more of their incomes in either owner or renter costs. When compared to the state as a whole, residents of Doña Ana County outside of Las Cruces and Mesilla are somewhat less likely to bear a housing cost burden. TABLE 20. COST BURDEN BY TENURE AND I NCOME RANGE, DOÑA ANA COUNTY OUTSI DE OF LAS CRUCES AND MESILLA H om eow ners Less than $20,000 5,493 22.0% 19.7% 58.3% 22.2% 16.5% 61.3% $20,000 to $34,999 5,151 50.3% 18.8% 30.9% 43.6% 16.0% 40.5% $35,000 to $49,999 3,674 55.5% 21.9% 22.6% 48.6% 20.6% 30.8% $50,000 to $74,999 4,215 62.6% 25.3% 12.0% 55.7% 27.3% 17.1% DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN S # Income Range Doña Ana County Households Housing Costs as a Percentage of Income Doña Ana County Less than 20 % 20 to 29 % Mexico New P I 30% or Less than 20 % 20 to 29 % Housing Market Analysis The housing market in Doña Ana County over the past eight years reflected national housing trends, with a dramatic peak in new construction in 2005 and 2006 followed by a steep decline in new construction, which stabilized in 2012 and 2013. The resale market experienced a decline in housing prices and increased days on the market as overbuilding created a glut of homes for sale. According to local real estate reports, resale prices stabilized in 2013. New Construction (Building Permits) Residential construction information for Doña Ana County and Las Cruces was obtained from US Census residential building permit survey. The data in Figure 4 show residential building permits for the City of Las Cruces and for Doña Ana County as a whole. Since 2001, two-thirds of single family construction and 96 percent of multifamily construction has been within the City. The trend shows a peak in new construction in 2005-2006, with a dramatic decline since 2006. Construction decreased steadily to 2011, with a slight increase in 2012 due to an increase in construction outside of Las Cruces, primarily in Sunland Park. D O Ñ A A N A C O U N T Y AFFORDABLE HOUSING PLAN 5. FIGURE 4. NEW R^ S I DE_NJ IAJ^CONSTRUCTI ON, 2 0 0 1 - 2 0 1 2 2500 ----------------- 2000 2001 2002 2003 □ Las Cruces Single Family 2004 2005 2006 □ DAC Single Family 2007 2008 2009 E Las Cruces M ultifam ily 2010 2011 2012 B DAC Multifam ily S o u rc e : U S C e n su s, R e s id e n tia l C o n s tru c tio n R e p o r t Building permits issued in by the County are shown in Figure 5. Most of the permits issued by the County are for single family detached housing, although some apartments were built in 2002 and 2003. A duplex was built in 2002. The apartments are located in Anthony, which incorporated in 2010. Flowever, additional apartments could be built in areas of the County that have water and sewer service in place. Consistent with national trends, new construction peaked in 2005, and the number of permits issued since then declined dramatically to 2009 and has remained fairly stable since then. FIGURE 5. BUILDING PERMI TS ISSUED BY DONA ANA COUNTY, 2 001^-2014 600 --------------------- ------------ ------- 2001 2002 2003 2004 2005 2006 B Single Family 2007 2008 □ Duplex 2009 2010 2011 2012 2013 2014 5 + Family S o u rc e : US C e n su s In addition to building permits for new site built housing, the County issues mobile home installation permits. In 2013 and 2014, new site built single family construction was 30 to 40 percent of housing added to the County's housing stock. Sixty to 65% is mobile home installations. These are not necessarily DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN ^ ^ newly manufactured units, and the installation permits could represent mobile homes moved from one location in the County to another. It is common for residents to purchase an older mobile home and install it on a lot that they own. FIGURE 6. SINGLE FAMILY NEW CONSTRUCTI ON AND MOBI LE HOME INSTALLATION PERMI TS, 2 0 1 3 AND 2 0 1 4 300 -T----------------------------------------------------------------------------------------------- 2013 ■ Single Family Permits 2014 in Mobile Home Installation Permits S o u rc e : D o ñ a A n a C o u n ty Housing for Sale Information about homes for sale in December 2014 was gathered from a number of sources for unincorporated communities in Doña Ana County and the municipalities of Hatch, Sunland Park and Anthony. The Southern New Mexico Multiple Listing Service reported 2,622 listings in Dona Ana County in 2014, of which 1,466 were sold. The average sales price was $172,752. On average, the sales price equal to 96% of the listing price. Eighty-seven percent of units sold were single family houses. The average sales price for a single family detached house was $183,527, and the average sales price for a permanent manufactured unit was $97,349. Average days on the market was 119, but single family homes sold faster than mobile homes or manufactured units. Most of the sales activity is in the City of Las Cruces. Individual listings were tallied to report homes for sale outside of Las Cruces. A total of 258 homes for sale were found for communities outside of Las Cruces and Mesilla. Of these, 227 were single family detached units, 27 were manufactured units, and four were condos, townhomes or zero lot line homes. Listings within the municipal limits of Las Cruces and Mesilla were excluded from this analysis. Half of all homes for sale in the County o area are affordable to households with incomes above 120% of median income. Very few homes are available for households with incomes below 80% of median. Most of the homes for sale are within the Central and Border planning areas, which are the largest with urban or suburban areas within them. D O Ñ A A N A C O U N T Y AFFORDABLE HOUSING PLAN 4 # TABLE 21. HOUSING AFFORDABILITY BY %AMI %AMI Price Range Doña Ana % of County Total North Valley <30% LT $56,400 2 1% 1 30-40% $56,400-$75,500 13 5% 1 40-50% $75,500-$90,800 50-60% $90,800-$ 108,900 60-70% $108,900-$127,100 10 4% 1 5 2% 3 11 Central South Valley Border 0 1 7 2 3 1 3 0 1 1 0 5 4% 2 3 0 6 70-80% $127,100-$ 145,300 10 4% 0 5 2 3 80-90% $145,300-$ 163,400 14 5% 2 3 0 9 90-100% $163,400-$181,600 25 10% 0 7 3 15 100-120% $181,600-5217,900 38 15% 0 12 3 23 120%+ GT $217,900 Total 130 50% 11 87 5 27 258 100% 21 129 17 91 S o u rc e s: Las C ru ces A s s o c ia tio n o f R e a lto r s a n d R e a lto r .c o m A comparison of the distribution of household incomes in the County to the prices of homes for sale shows that very few of the homes currently on the market are affordable to households with incomes at 80 percent of AMI or below. TABLE 22. DISTRIBUTION OF FOR SALE HOUSING BY PRICE COMPARED TO INCOME Household Income* Percentage of Area Median Income (AMI) Estimated % of Doña Ana County Households at this Income Level $14,160 or less Price of Homes Affordable at this Income Level Homes in Price Range Currently on the Market Percent Total Up to 30% AMI 18.40% $54,500 or less 2 1.0% $14,160 - $18,880 30-40% AMI 7.90% $54,500 to $72,800 13 5.0% $18,880-$23,600 40-50% AMI 7.70% $72,800 to $90,800 10 4.0% $23,600-$28,320 50-60% AMI 6.70% $90,800 to $108,900 5 2.0% $28,320-$37,760 60-80% AMI 11.40% $108,900 to $145,300 21 8.0% $37,760-$47,200 80-100% AMI 8.60% $145,300 to $181,600 39 15.0% $47,200-$56,640 100-120% AMI 6.40% $181,600 to $217,900 38 15.0% 120% AMI+ 33.00% $217,900 and up 130 50.0% $56,640+ S o u rc e s: ACS 5 -Y e a r E s tim a te s , 2 0 0 9 - 2 0 1 3 , L a s C ru ces A s s o c ia tio n o f R e a lto r s a n d R e a lto r .c o m The affordability gap between incomes and housing for sale is shown in Table 23. The data show that housing that is suitable for a married couple is available for households between 60% and 80% of AMI. The average price of housing for sale was reviewed by number of bedrooms and household size typical of that size unit. Two person households with incomes above 80% of AMI can afford a one bedroom unit. Three person households with incomes above 100% of AMI can afford a two-bedroom unit, but three and four bedroom units are not affordable to households even at 120% of AMI. D O Ñ A A N A C O U N TY AFFORDABLE HOUSING PLAN Projects in Development There are two large projects that are being discussed for development. These include a large subdivision in Chaparral near McCombs Road and potential mixed-use development of the 250 acre site of the former McAnally egg farm in Berino. Both of these properties are large enough to support mixeduse, mixed-income development in growing communities where there is demand for new housing. The County does not own either parcel, but could offer incentives for including housing that meets the goals of the Affordable Housing Plan. Expedited review, assistance with infrastructure, fee waivers, and direct funding of assistance to home buyers are potential incentives. Home Mortgage Loan Data As part of the Viva Doña Ana projects, the County completed a Fair Housing Equity Assessment and Regional Analysis of Impediments (RAI) in 2013.1 This document includes an analysis of HMDA data for the county. HMDA information was collected for all Census tracts in the County from 2004 through 2011. A total of 103,138 loan applications were reported in the HMDA system during that time period. Of these, 52% were for refinancing, and 7% were for home improvement loan applications. The remaining 40,980 loan applications were for home purchase. Of these, 34,031 loans over the eight years were for owner occupied homes. Applications for home purchase loans by an owner occupant were further analyzed to determine denial rates and reasons for denials by applicant characteristics. During this time, 4,137 loans were denied. Figure 7 shows that rural colonias experienced a disproportionately high share of loan denials. 1 Western Economic Services, LLC, fo r the Camino Real Consortium, Fair Housing Equity Assessment and Regional Al, Draft fo r Public Review, July 31, 2013. D O Ñ A A N A C O U N TY AFFORDABLE HOUSING PLAN FIGURE 7. DONA ANA COUNTY MORTGAGE LOAN DENIAL RATES BY LOCATION S I E R R A COUNTY GRANT COUNTY] Lb s Cmc MK'llflT 'Anltionft DONA ANA CO UNJ.Y Sun land1RarK- 4LaminoLialí on~>si ummfiojift VIVA DOÑA A n a íoutiKJijüíiBtHíiraí I (miflUMmiMUMiKt S o u rc e : Fair H o u s in g E q u ity A s s e s s m e n t a n d R e g io n a l A l D O Ñ A A N A C O U N T ! AFFORDABLE HOUSING PLAN £ W Female applicants experience higher denial rates than male applicants - 23.2% over the eight years compared to 19.5% for males. Denial rates for Hispanic and minority applicants were higher than for non-Hispanic white applicants. The denial rate for Hispanic applicants of any race was 28%, compared to 13.2% for non-Hispanic applicants. The denial rate for American Indian applicants was 33%, for Black applicants, 20%, and for Asian applicants, 16.1%. The most frequently cited reasons for denial were credit history and debt-to-income ratio, as shown in Figure 8. Loan application denial rates were highest for lower income applicants and decreased as income levels increased, as shown in Figure 9. FIGURE 8. REASON FOR DENIAL OF LOAN APPLICATIONS DOÑA AMA COUNTY AFFORDABLE HOUSING PLAN s .n FIGURE 9. LOAN APPLICATION DENIAL RATES BY INCOME 70% T---------------------------------------------------------------------------- S o u rc e : Fair H o u s in g E q u ity A s s e s s m e n t a n d R e g io n a l A l Housing for Rent A search for rental housing in the County outside of Las Cruces and Mesilla found 49 units for rent in December 2014. Sources of rentals included Homes.com listings, Craigs List, and a local management company. Duplicates among the lists were deleted. Most of the listings - 33 of the 49 - are located in the southern part of the County, seven are located in the area surrounding Las Cruces and the East Mesa, and 9 are in the Valley just south of Las Cruces. There were no listings in the valley north of Las Cruces to Hatch. TABLE 24. DISTRIBUTION OF HOUSING FOR RENT COMPARED TO INCOME $14,160 or less Up to 30% AMI 18.40% $354 1 2.0% $14,160 - $18,880 30-40% AMI 7.90% $354-472 2 4.1% $18,880 -$23,600 40-50% AMI 7.70% $472-$590 6 12.2% $23,600-$28,320 50-60% AMI 6.70% $590-$708 6 12.2% $28,320-$37,760 60-80% AMI 11.40% $708-$944 9 18.4% $37,760-$47,200 80-100% AMI 8.60% $944-$ 1,180 13 26.5% $47,200-$56,640 100-120% AMI 6.40% $1,180-$1,416 9 18.4% 120% AMI+ 33.00% $1,146 and up 3 6.1% $56,640+ S o u rc e s: ACS 5 -Y e a r E s tim a te s , 2 0 0 9 - 2 0 1 3 , C raigs List, H o m e s .c o m , T r u s t-P r o p e r tie s .n e t DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN £9% The affordability gap for existing rentals was calculated based on the average rents by number of bedrooms for the listings of housing for rent. A married couple with an income of just over 50% of AMI could afford a one bedroom rental unit, based on the average rent. A single parent with a child needing their own bedroom or two adults needing two bedrooms would need a household income of more than 60% of AMI to afford a two-bedroom unit. A 3-person household with an income of 80% of AMI and above could afford a two-bedroom unit at the average rent. A larger family would need a household income over 80% of AMI to afford a three or four bedroom unit. TABLE 25. AFFORDABILITY OF EXISTING RENTAL HOUSING BY NUMBER OF BEDROOMS Number of Bedrooms 1 Bedroom 2 Bedrooms 3 Bedrooms 4 Bedrooms 1-2 Person HH 3 Person HH 4 Person HH 5 Person HH 5 12 23 9 Average Rent $465 $681 $971 $1,178 30% AMI Max Rent $265 $298 $330 $357 Rental Gap $200 $383 $641 $821 50% AMI Max Rent $441 $196 $551 $595 Rental Gap $24 $485 $420 $583 60% AMI Max Rent $529 $595 $661 $714 Rental Gap None $86 $310 $464 80% AMI Max Rent $706 $793 $881 $952 Household Size Number for Rent Rental Gap None None $90 $226 100% AMI Max Rent $882 $992 $1,101 $1,190 Rental Gap None None None None $1,058 $1,190 $1,322 $1,428 None None None None 120% AMI Max Rent Rental Gap The rents from the survey conducted for the Affordable Housing Plan were compared to HUD Fair Market Rents (FMRs) for Doña Ana County. The HUD survey includes a larger set of properties, but also includes Las Cruces, which has a much larger supply of rental housing. The HUD FMRs for one to three bedroom units are higher than was found in the survey of properties outside of Las Cruces. The FMR for four bedrooms is about the same as in the Affordable Housing Plan survey. Lower rents outside of Las Cruces could be due to the condition of housing stock in rural communities where, according to the County's windshield survey and the difficulty finding units that meet HUD housing quality standards, a substantial percentage of units need repair. The 2014 HUD FMRs are as follows: one-bedroom - $620, two-bedroom - $736, three-bedroom - $1,053 and four-bedroom - $1,171. Based on HUD rents, one and two bedroom units would be affordable to households with incomes of 80% of AMI and above. Foreclosures Data from RealtyTraq indicates a total of 404 homes in some stage of foreclosure in Doña Ana County. Of these, 325 units are in pre-foreclosure, and 30 are up for auction. Most of these units are located in Las Cruces, although there are units scattered throughout the County. D O Ñ A A N A C O U N T Y AFFORDABLE HOUSING PLAN £jt?o Vacancy Rates Overall, vacancy rates in the County outside of Las Cruces are low. The owner vacancy rate is very low, meaning that even if households can afford to buy a home, there are so few vacant units that there is little choice. Rental vacancy rates in Anthony and Sunland Park, where most apartment rental units are located, are lower than the five percent rate that is typical for a freely operating rental market. TABLE 26. VACANCY STATUS Total Units Owner Occupied Renter Occupied Vacant Total For rent Rented, not occupied For sale only Sold, not occupied For seasonal, recreational, or occasional use For migrant workers Other vacant Owner Vacancy Rate Renter Vacancy Rate 82,049 2,826 604 H 42,464 1,003 4,138 31,014 4,743 48,269 1,616 349 21,881 535 2,614 21,274 3,167 25,528 951 157 16,187 369 1,340 6,524 798 8,252 259 98 4,396 99 184 3,216 778 1,957 42 0 1,455 0 17 443 78 516 0 0 406 16 0 94 0 1,028 0 0 724 0 0 304 83 146 0 0 121 7 0 18 0 1,445 23 0 694 33 10 685 185 68 0 0 0 0 4 64 0 3,092 194 98 996 43 153 1,608 432 2.1% 0.0% 0 .0 % 3.2% 0.0% 0.0% 1.4% 2.6% 7.0% 4.2% 0 .0 % 8.1% 0.0% 1.3% 6.3% 8.9% S o u r c e : A m e r ic a n C o m m u n ity S u r v e y , 5 -Y e a r E s tim a te s 2 0 0 9 - 2 0 1 3 D O Ñ A A N A C O U N TY AFFORDABLE HOUSING PLAN ¿ r .# / HOUSING NEEDS ASSESSMENT Existing Affordable Housing Resources Within Doha Ana County several organizations that provide a range of programs. Information about these programs and the housing available was gathered through online affordable housing and agency data and interviews with housing managers. A summary of available housing in the County is shown in Table 27. More detailed discussion of each resource is below. TABLE 27. AFFORDABLE HOUSING RESOURCES Income Eligibility Total Studio- ZBR Population 1-BR Served 93 azoz 9 . .t Housing Type Location Public Housing w- a Scattered 130 50% or below Mesilla Valley PHA Family Vouchers S?unland Park PHA Sunland Park 40 5 5 30 1-BR are elderly; 50% or below Units rest are family IVlesilla Valley PHA Low Income Rental Housing Tres Arboles Las Cruces 64 28 8 28 Multi?family San Pedro Place Las Cruces 38 38 16 0 Elderly/disabled Walnut Grove Las Cruces 100 20 36 44 Multi-family Jardines Alegres Las Cruces 47 43 4 Elderly/disabled Subsidized Rental Valle Verde Placitas 36 6 12 18 Family 1?2 bedrooms Apartments Colonia/Hatch 50% or below; 3+ bedrooms 60% or below Valle Verde Placitas 34 12 14 8 Farmworker/ 50% or below Colonia/Hatch Family Falcon Ridge Apts Hatch 72 8 16 48 Family Tierra Encantada Anthony 24 0 6 18 Farmworker 50% or below families Cimarron II Anthony 60 28 32 Family Cimmaron Anthony 24 Family Franklin Vista I Anthony 28 8 16 4 Family Franklin Vista Anthony 29 5 16 8 Family Franklin Vista Anthony 29 5 16 8 Family Franklin Vista IV Anthony 21 5 16 0 Family Franklin Anthony 29 0 _24 5 Family 50% or below Franklin VI Anthony 24 0 16 8 Family 50% or below . Franklin Anthony 24 16 8 Farmworker 50% or below families Lorna del Norte Anthony 40 4 32 4 Family Apartments Comerciantes Terrace Santa Teresa 135 0 135 0 _Apartments Santa Teresa Terrace Santa Teresa 112 48 64 ?ts Santa Teresa Family Santa Teresa 74 0 0 74 Homes Meadow Vista Sunland Park 16 0 8 8 Family Playa Sunland Park 44 12 14 18 Family ANA COUNTY AFFORDABLE HOUSING PLAN 26 16 Family 0 2 24 Family 0 18 18 Family Vista del Rey Sunland Park 42 0 Meadow Vista Homes Sunland Park 26 Playa Apts Sunland Park 36 Highland Park Apartments Las Cruces 50 0 24 26 All 50% or below Las Cruces 14 11 2 0 All 50% or below Las Cruces 40 40 0 0 Senior 50% or below Las Cruces 80 80 0 0 All 50% or below Las Cruces 40 34 6 0 All 50% or below Robledo Ridge Dona Ana Park II Apartments Las Cruces 60 12 22 24 M ulti-family 50% or below Las Cruces 59 10 20 29 ALL 50% or below Jardines Verdes Stone Mountain Place* Montana Senior Village 1 Montana Senior Village II* Las Cruces 40 34 6 Las Cruces 72 0 28 Casa De Corazones Chaparral Senior Housing Inc Montana Meadows Apartments Burley Court Elderly/disabled 56 M ulti-family Las Cruces 48 12 37 0 Elderly/Near Elderly Las Cruces 84 60 24 0 Elderly Multi-fam ily Vista Montana Las Cruces 80 0 24 56 Desert Palms Las Cruces 100 50 40 10 All Mesquite Village Las Cruces 48 0 16 32 All Mira Vista Villas* Las Cruces 76 76 0 0 All Los Altos Villas* Saint Genevieve's Village Four Hills Apartm ents* Las Cruces 72 0 18 54 All Las Cruces 41 41 0 0 Seniors 62 + Las Cruces 72 0 20 52 Multi-fam ily Total Subsidized Rental 2,062 540 766 730 * A p o r tio n o f th e u n its a re s e t a s id e f o r lo w in c o m e s u b j e c t to LIHTC r e q u ir e m e n ts . W ill a c c e p t S e c tio n 8 v o u c h e r s f o r m a r k e t r a te u n its. Special Needs/Elderly/Disabled/Supportive Housing Villa del Sol Senior Housing Mesilla Valley Community of Hope Sue's House (Group Home) Permanent Supportive Housing Abode, Inc. (Group Homes) Sunland Park 30 30 0 Elderly 50% or below Las Cruces Las Cruces 4 Disabled, homeless women 20 Vouchers (MVPHA units, MVCH services) Chronic homeless 15 Shelter and Transitional Housing Las Cruces Mesilla Valley Community of Hope Homeless or Near Homeless 50 Camp Hope 45 Transitional Housing La Casa (em ergency and transitional housing) 0 Las Cruces DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN Homeless Homeless Victims of Domestic Violence /T Housing Type Location Studio- 2BR Population Served Income Eligibility Subsidized Homebuyer/Owner Most affordable housing in Doña Ana County is located in Las Cruces. Of 289 public housing units, 249 are in Las Cruces. Of 2,100 subsidized rental units, 1,100 or 53 percent are located in Las Cruces. A ffordable H ousin g S ervice P rovid ers Mesilla Valley Public Housing Authority (MVPHA) Mesilla Valley Public Housing Authority provides housing assistance to low income families by providing safe, affordable housing and associated services that provide opportunities to eligible persons in the City of Las Cruces and elsewhere in Doña Ana County. Sunland Park Public Housing Authority Sunland Park Housing Authority provides housing assistance to low income residents through the management of Low Rent Public Housing. Tierra del Sol Housing Corporation (TDS) Tierra del Sol provides affordable multifamily rental units, single family homes for sale, rehabilitation assistance, home buyers education and foreclosure prevention. Rental housing includes rural farm labor rental housing, senior congregate housing, supportive housing for the elderly and disabled, and LIHTC limited partnership owned mixed housing. Mesilla Valley Habitat for Humanity builds new single family homes, currently only within the City of Las Cruces using City HOME funds. Southwest Regional Housing and Community Development Corporation (SRHCDC) SRHCDC, based in Denning, provides weatherization and rehabilitation services in the County. SRHCDC has a satellite office in Doña Ana County. USDA USDA is a major lender for affordable housing in rural areas of Doña Ana County. USDA also offers a number of business development programs that contribute to the economic health of the communities in the County. Mesilla Valley Community of Hope (MVCH) MVCH provides supportive services to the homeless and near homeless through a collaboration of six separate agencies operating its campus site. MVCH is also an independent agency that provides a variety of services to approximately 2,500 clients over a year period. DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN S'. !!"') La C asa La Casa, Inc. is a non-profit that provides comprehensive services, including housing, to diminish domestic violence and abuse. A b o d e, Inc. Abode, Inc. provides housing in a group home setting and supportive services to chronically homeless residents. A ffordable H ou sin g P rogram s P u b lic H o u sin g Mesilla Valley Public Housing Authority provides a little over 1,000 Section 8 Housing Choice Vouchers, 87 percent of which are within the City of Las Cruces. The waiting list for these units has recently reopened. Prior to closing the list, the waiting list got to 1,800 families. The agency also owns, manages, and maintains approximately 290 rental public housing units, most of which are located in Las Cruces. The agency maintains waiting lists by number of bedrooms. MVPHA limits the length of the waiting lists, closing the lists when they get too long. Right now, the larger units with three and four bedrooms have the lowest demand, and the waiting lists for these units are always open. Sunland Park Housing Authority manages five one-bedroom units for elderly and five 2-bedroom units, 15 3-bedroom units and 15 4-bedroom units for families. As of December 2014, the waiting lists were 55 for one bedroom units, 291 for two bedroom units, 144 for three bedroom units and 7 for four bedroom units. The PHA does not close its waiting lists, but it sends notices annually to families on the lists to verify their current status. Applicants that do not respond to the notices are removed from the list. Applicants are from within Doña Ana County, El Paso and out of state. PHA representatives note a need for homeless services. There is no emergency housing in Sunland Park, so homeless families are referred to other agencies. A ffo r d a b le R e n ta l U n its Tierra del Sol currently has 200 rental units outside of Las Cruces, of which 30 are targeted to the elderly and 48 are targeted to farm worker families. Most rental units are targeted to households with incomes at 50% of median or less. The rest are family units. Projects are located in Hatch (and Placitas Colonia), Anthony and Sunland Park. The MVPHA is a partner in three low and moderate income rental projects with a total of 156 units. These were developed using low income housing tax credits and target families with incomes at 50% of median and below. The waiting lists for the affordable rental units total 566, with over half of the waiting lists for twobedroom units and 30 percent for three+ bedroom units. D O Ñ A A N A C O U N T Y AFFORDABLE HOUSING PLAN J, ( 0 ¿ Low to Moderate Income Rental Housing Summary There are approximately 1,025 subsidized rental apartment units in the rural communities of Doña Ana County, including those managed by the agencies listed above. Projects are located in Hatch, Anthony, Santa Teresa and Sunland Park. Forty units are owned, managed and maintained by the City of Sunland Park Housing Authority. The rest of the projects were developed through partnerships between forprofit and non-profit developers that are active in the County. Primary funding sources have included the USDA Rural Development 515 program, the HUD HOME Investment Partnerships Program and Low Income Housing Tax Credits. Approximately 130 families who hold Section 8 vouchers have chosen to use their vouchers in the County outside of Las Cruces. . In total, there are 3,000 families on waiting lists, although there may be duplication within the various lists. By far the largest waiting lists are for two and three bedroom units. Affordable Housing for Sale Tierra Del Sol (TDS) has 128 lots for single family detached homes in subdivisions and scattered sites. Homes are priced at $105,000 to $130,000, with a target population of 40% to 200% AMI, depending on the location. Subdivisions are located in Berino, Anthony, Vado, and Chaparral. TDS builds homes in all colonias. TDS provides housing fairs, homebuyer counseling, financial literacy, credit counseling and other assistance to prospective buyers. TDS maintains a waiting list of hundreds of potential buyers at its Las Cruces and Anthony Centers. To maintain affordability, TDS offers opportunities for sweat equity where buyers provide up to 1,200 hours of mutual self-help volunteer construction labor to reduce their home cost by about $30,000 in lieu of a cash down payment. Homebuyers are organized into work groups who build their homes cooperatively. In addition, TDS assists homebuyers reduce principal through Individualized Development Accounts (IDAs - down payment savings) and through utility credits, and other types of assistance. The greatest need for housing for sale is for three and four bedroom units. TABLE 28. AFFORDABLE HOUSING FOR SALE Location/Subdivision Name Total Units Types of Housing Parque Subdivision, Berino Bishop's Cap Subdivision, Berino Norton Subdivision, Anthony 80 Target Population Price Range 8 Single Family Single Family 50% -60% HUD AMI 40% -60% HUD AMI $105,000 $105,000 8 Single Family 50%-90% HUD AMI Salome Subdivision, 20 Single Family 60%-200% HUD AMI Tierra del Sol Subdivision, Vado Hermosa Subdivision 1and II, Chaparral Scattered lots, Sunland Park 40 Single Family 50%- 200% HUD AMI 16 Single Family 40% -60% HUD AMI $105,000$125,000 $105,000 $130,000 $105,000$130,000 $105,000 6 Single Family 40% -60% HUD AMI $105,000 MVPHA has Via Sereno, a 25-unit project in Anthony, is part of the HUD section 5(h) homeownership program. All but four of these units have been sold. Two of the remaining units are occupied by renters and two vacant units are in the process of being purchased. DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN S . ¡ r (? Mesilla Valley Habitat for Humanity builds a few homes per year with City of Las Cruces Home funds. The Habitat for Humanity model relies on sweat equity by the future owner, donated materials and volunteer labor to keep its prices affordable. Rehabilitation Assistance Tierra del Sol provides rehabilitation of about 25 units per year. This includes substantial rehabilitation and replacement of substandard homes and manufactured homes. This also includes installing natural gas mains and hookups to owner occupants, primarily in colonias, earning 60% AMI or below. Many of these homeowners are disabled or elderly or living in overcrowded conditions. The waiting list for rehabilitation assistance is approximately 150 households. SRHCDC provides weatherization and rehabilitation services in the County. SRHCDC has a satellite office in Doña Ana County. Special Needs Housing Victims of Domestic Violence La Casa, Inc. provides emergency and transitional housing, counseling for residents and non-residents, case management, advocacy, legal services, community outreach and education, parenting education, and counseling for offenders. The Emergency Shelter has 45 beds, and uses common areas for overflow. La Casa's transitional housing program provides up to 24 months of rental assistance, case management and support services to victims and their children who are transitioning out of the residential program. La Casa offers its counseling, outreach, advocacy and case management services in outlying areas of the County. A satellite office is located in Anthony, but staff travels to all communities in the County. Homeless or Near Homeless MVCH provides supportive services to approximately 2,500 homeless and near homeless clients per year. The population served includes veterans, homeless females, people with disabilities, and homeless families. The agency estimates that it is able to provide housing for about 10% of the clients it serves, and that 50-60 percent of its clients need housing. The agency offers housing assistance on a first come/first served basis. Those clients who need housing but are not able to find housing through MVCH seek housing at the Rescue Mission, local motels, doubled up with friends and families or other means. To fully assist clients, the organization sees a need in the County for more decent and safe housing units and housing vouchers. They observed that there is a shortage of standard housing in which to place their clients. Their clients will need ongoing supportive services, and Community of Hope could place staff on site at complexes that serve their clients. Programs range from homelessness prevention to permanent supportive housing. Because the organization provides services on-site, they are able to do their own outreach and fill units with clients who need housing. Housing fills rapidly and MVCH does not maintain a waiting list.• • Homelessness Prevention. Homelessness prevention includes assistance with rent payments and utilities. D O Ñ A A N A C O U N T Y AFFORDABLE HOUSING PLAN Ó. J O l • Camp Hope. Camp Hope is a tent city on the MVCH site that has provided housing and services to the homeless for the past three years. The site houses up to a maximum of 45 tents and 50 homeless residents who manage the project themselves. The average length of stay is four months, and MVCH helps residents become housing ready and assist them in finding permanent supportive housing. • Transitional Housing. MVCH provided transitional housing through the MFA rapid rehousing and HUD transitional housing programs. • Permanent Supportive Housing. The MVCH operates several programs that provide permanent supportive housing. These include vouchers used in 20 unites operated by the Las Cruces Housing Authority. MVCH provides home visits, case management and self-sufficiency training to these tenants. HUD vouchers, Shelter + Care grant has 45 units for individuals and families. There is not much turnover in this program. There is a waiting list of five or fewer families because of the low turnover. • Sue's House Is a group home that provides permanent supportive housing for four women that are defined as permanently disabled and have been homeless for an extended period of time. Abode, Inc. operates two group homes for 15 chronically homeless residents. Each group home has a case manager on site. E xisting N eed s Households with a Cost Burden Based on Census estimates reported in the previous section, an estimated 6,500 homeowners and 4,300 renter households pay more than 30% of their incomes for housing. Households earning 50% of AMI and above are candidates for affordable homeownership. Households with incomes below 50% AMI are most likely to need subsidized rental housing. Overcrowded Households Based on Census estimates reported in the previous section, nearly 2,000 households live in crowded conditions and 400 households live in extreme overcrowding. As with cost burdened households, the appropriate solution to relieving overcrowding will depend on tenure and household income. Need for Affordable Homeownership Even though a large number of homeowners bear a cost burden, homeowners are less likely to move than renters. Based on interviews with housing providers and discussions with the County's Affordable Housing Review Team, an estimated 600 low to moderate income households are seeking to purchase a home. These include both cost burdened households and households living in crowded conditions that need a larger home. Need for Affordable Rental Housing The analysis of properties for rent indicates that 1-3 person households with incomes of 60% of AMI and below cannot afford market rents, and 4+ person households with incomes of 80% of AMI and below cannot afford market rents. There are approximately 3,500 cost burdened renter households with incomes of 60% of AMI and below and 600 cost burdened renter households with incomes between 60% and 80% of AMI. There are approximately 3,000 households on the waiting lists for public and affordable housing. D O Ñ A A N A C O U N T Y AFFORDABLE HOUSING PLAN There is likely duplication among all of these estimates. A portion of cost burdened renters may be represented on waiting lists, and some households may be on multiple waiting lists. For this analysis a total of 4,300 units is assumed for the current need for affordable rentals in the County outside of Las Cruces and Mesilla. This need could be met by new construction or by vouchers to reduce the cost burden on households who are in existing housing. Representatives of the MVPHA observed that when families receive Section 8 vouchers and have more housing choice, they often move to better housing. One goal of the County's Affordable Housing Plan is to increase housing options and the quality of housing that is available to households living and working in outlying areas of the County. The areas of highest demand are in the southern part of the County. Sites Southwest estimated the number of units needing repair and rehabilitation based on age, tenure and type. DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN S ./o 9 Table 29 contains the estimated number of units by type needing repair. These Include 4,542 owner occupied units and 2,307 renter occupied units. The total of 6,849 derived from age and type is less than the need identified in the windshield survey. When the two estimates of housing rehabilitation needs are compared, it is likely that the total need exceeds 8,000 units; more than a quarter of the County's housing stock. Most of these are outside of the municipalities of Anthony, Sunland Park and Hatch. D O Ñ A A N A C O U N T Y AFFORDABLE HOUSING PLAN ¿ .H O TABLE 29. ESTIMATE OF REHABILITATION NEEDS, DOÑA ANA COUNTY OUTSIDE OF LAS CRUCES AND MESILLA Estimate Based on Colonia Windshield Estimate Based on Age, Tenure and Type Survey Sunland Doña Ana Hatch Anthony Park Chaparral County* Owner Occupied SF, detached or attached M ulti-fam ily Mobile homes Total 120 132 128 75 2,413 NA 0 3 0 0 5 NA 12 87 117 707 2,124 NA 132 222 244 782 4,542 NA Renter Occupied SF, detached or attached ¡m u 1 57 11 108 13 1,209 NA 11 54 30 0 198 NA 3 94 53 36 901 NA Total 72 159 191 49 2,307 NA Total 204 381 435 831 6,849 8,500 Multifam ily Mobile homes * In c lu d e s C o u n ty o u ts id e o f Las C ru ces a n d M esilla Special Needs Populations Homeless The estimate of existing needs for housing for the homeless is based on service provider interviews. An estimated 1,200 homeless people in the County as a whole that need housing and are not currently provided housing through existing programs. Assistance for the homeless is focused in Las Cruces, with very limited resources outside of the City. This estimate includes families and individuals who may be homeless for a variety of reasons, including lack of income, behavioral health or other disability issues or domestic violence. Elderly The need for housing for the elderly in Doña Ana County outside of Las Cruces and Mesilla was estimated by looking at the number of households with a householder aged 65 and over with a cost burden. An estimated 1,400 elderly homeowners pay more than 30% of their income for housing, and an estimated 360 elderly renters pay more than 30% of their income for housing. These numbers represent 21 percent of elderly homeowners and 42% of elderly renters. Sum m ary o f H ousin g N eeds An estimate of housing needs in the County outside of Las Cruces and Mesilla by type of need is shown in Table 30. This shows current need based on the needs assessment and future need based on an anticipated County growth rate of 1.4% per year. DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN £ Iff TABLE 30. SUMMARY OF ESTIMATED CURRENT HOUSING NEEDS Estimated Current Total Additional Type of Housing Target Market Need Future Need Comments Affordable Home Ownership 30-80% AMI 600 units total 40-50 units per year Units to relieve overcrowding, replace substandard units and accommodate growth Subsidized Rental Units 1-3 person households earning up to 60% o f AMI 4,300 units, 50 to 100 units per year Existing need is based onl,300 cost burdened renters and half of existing waiting lists of approximately 3,000, assuming overlap among lists; greatest need is 2 and 3 bedroom units. Need may be met through new construction and vouchers. 4+ person households earning up to 80% AMI Subsidized Senior Housing Senior-headed renter households w ith a cost burden. Currently and estimated 42% o f renters have a cost burden. 360 rental units Housing Rehabilitation (focus on homeowners) Housing rehabilitation is needed to bring homes up to code. Units that cannot be rehabilitated should be replaced. 8,000 units Transitional housing To provide transitional housing (3 months up to a year) and permanent housing in addition to services such as job training, education, life skills, counseling, etc. Housing for 1,200 people County-wide; these will transition into subsidized rental housing Permanent Supportive Housing To provide permanent housing fo r special needs populations needing ongoing supportive services through new housing o r rental assistance in existing units. 400 units D O Ñ A A N A C O U N T Y AFFORDABLE HOUSING PLAN 1-BR units; all units should be accessible 25-50 units annually Target elderly cost-burdened homeowners and other very low and low income homeowners with weatherization and repairs These services are provided by existing nonprofits. Existing resources to not meet existing needs. 20-30 units per year Permanent housing may be provided in existing or new affordable rentals S • //A LAND USE A N D POLICY REVIEW The Affordable Housing Plan will serve as the plan for unincorporated Doña Ana County. The land use and policy review takes into account the impact of plans, policies and regulations for these entities. The land use and policy review also identifies barriers to affordable housing. The County has a number of land use related ordinances in place, which were reviewed for the Affordable Housing Plan. The County is in the process of preparing a new Comprehensive Plan and a Unified Development Code (UDC) that will include all development related regulations, such as the zoning, subdivision and development standards. The Comprehensive Plan will establish a vision for the County, and the UDC will be the tool used to implement the vision. In the near future, the new Comprehensive Plan and UDC will replace the existing policies. However, in the interim, the adopted documents create the regulatory framework for all development, including housing. Barriers to affordable housing were identified through stakeholder interviews, review of existing documents, and discussions with the project review team. Stakeholders included non-profit housing providers, Realtors, homebuilders and developers. In addition, Spanish speaking interviews spoke to community residents at County community centers. Viva D oña Ana Livability Principles The components of the Viva Doña Ana effort are intended to help Doña Ana County and its communities meet six Livability Principles: 1: Provide More Transportation Choices 2: Promote Equitable, Affordable Housing 3: Enhance Economic Competiveness 4: Support Existing Communities 5: Coordinate Policies & Leverage Investment 6: Value Communities & Neighborhoods The Viva Doña Ana initiatives are aligned with these principles. Comprehensive Plan The Comprehensive Plan in draft form recommends strategies, goals and actions to accomplish the livability principles. It recognizes that there are tradeoffs among the principles and that the ways that the County chooses to address the livability principles will be shaped by the County's existing character, heritage and culture. The plan identifies likely areas of future growth and lays out a Sector Plan that indicates growth sectors. The Sector Plan is a guiding framework for the Unified Development Code discussed below. An important premise of the draft plan is the intention to build complete communities of varying size and intensity overtime. Complete communities have a mix of housing types, businesses and jobs, services and amenities that are easily accessible within the community and infrastructure that is appropriate to its scale and density. By prioritizing investments and coordinating new development, the County can direct public and private investment effectively. DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN S. i County investments in affordable housing should be consistent with the goals of the Comprehensive Plan and coordinated with other community development. Unified Development Code (UDC) Completion of the Unified Development Code will be a follow on process once the community is in agreement about the Comprehensive Plan vision and goals. The framework for the code has been established. Work on the UDC started concurrently with the Comprehensive Plan. The UDC identifies community types permitted in each sector in the Comprehensive Plan's Sector Plan. The UDC then defines zone classifications and the anticipated zones that make up each community type, with intent to create complete communities. The UDC then establishes development standards and uses for each zone. The most recent draft of the UDC was issued in June 2015. This version of the UDC indicates that higher density areas with adequate infrastructure will allow for smaller lots, narrower minimum lot widths, higher densities for multifamily projects, narrower streets and smaller setbacks than are In the current code. The draft also proposed administrative review of site plans for projects that meet all criteria of the UDC. Analysis of Impediments to Fair Housing Choice As part of the Viva Doña Ana process, the County conducted a study of impediments to fair housing choice. The study found the following impediments to housing choice in the County and a draft is under review. • Frequent discrimination against disabled people and failure to make reasonable accommodation for the disabled • Discrimination due to national origin o Discrimination due to family status • Steering homebuyers to certain neighborhoods, resulting in an increasing concentration of minority populations and poverty in certain areas. • Minorities denied home purchase loans more often than non-minorities and predatory lending practices • Assisted rental properties concentrated in certain areas • Discriminatory terms, conditions, privileges or facilities related to rentals • Preferences stated in advertising for rentals Public sector policies and programs are lacking. There is a need for policies, ordinances, programs and standard practices. The study recommended more outreach and education to landlords, lenders, tenants and buyers. The study determined that some land use policies and practices result in unequal access to social and governmental services and that land use practices do not encourage inclusionary housing. The study recommended that more diverse housing types be allowed by zoning codes and that transit service be expanded to improve access to services. The study noted the value of proximity to asset-rich communities to educational success and positive economic outcomes. These findings indicate that the location of affordable housing is as important as its DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN [ftf quantity. The study further analyzed areas with a high level of access to various opportunities, including education, jobs, transportation and a healthy environment. The study identifies areas with the highest level of access to opportunity and recommends investments in affordable new housing and transit in these areas. The study further recommends infrastructure investments and demolition and removal of dilapidated housing in ethnically concentrated areas of poverty (ECAP) shown in Figure 10 to correct for past disinvestment. The ECAP communities are some of the fastest growing communities with a high level of demand for housing. County code enforcement to address dilapidated housing, rehabilitation programs, and the potential to acquire tax delinquent or substandard properties in the unincorporated ECAP areas has the potential to improve overall housing conditions. These are also high priority areas for public infrastructure investment. The unincorporated areas of greatest opportunity are areas where the County could consider providing incentives for new affordable housing and landlord participation in the Section 8 voucher program. E xisting Plans, P o licie s and O rdinances Doña Ana County Comprehensive Plan, 1994 The adopted Comprehensive Plan for the County includes a primary goal to encourage affordable housing and a variety of housing types. The plan recognized at that there was a housing shortage at that time, with needs in the South Valley and Hatch areas. Issues included a lack of affordable apartments and houses, as well as a lack of emergency, transitional and special needs housing. Mobile homes comprised 43 percent of housing in unincorporated areas of the County, and a majority of existing housing was in need of rehabilitation. The plan also identified a need for homeownership assistance to young families. The plan projected a need for 104,000 housing units by 2015. While the plan somewhat overestimated the total housing need, the affordable housing issues are still of concern today. The policies of the plan called for flexibility in land use regulations and building codes to ensure that affordable housing can be built in the County and for zoning regulations that comply with fair housing and civil rights laws. The plan recommended partnerships to facilitate affordable housing development, acquisition of land from the BLM for housing development, infrastructure development to support housing, and incentives for all types of affordable housing including mobile home parks and subdivisions. The County has made progress on its policies and actions, including growth in the capacity of local non­ profits, wastewater infrastructure improvement, and the Viva Doña Ana projects. Doña Ana County Land Use Regulations and Zoning Ordinance (Ol d. No. 158-95 as Amended) Most of the privately owned unincorporated land in County is zoned "Performance District", as shown in Figure 11. The most densely developed areas have specific Village or Community District zoning. These areas include Rodey, Vado, Del Cerro, La Union, and Santa Teresa. Within the village and community districts the County has mapped more specific zoning districts. Other areas are eligible for establishing a community or village district, but a district has not been mapped. The locations of village and community districts, as well as areas eligible for mapping such districts, are shown in Figure 11. More DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN S', detailed maps that show zoning categories within Village and Community districts and the ETZ are in Appendix B. These are by subarea of the County so that the details are readable. The ordinance specifies that Community Development Department staff review all applications and in consultation with other agencies as appropriate make a recommendation supported and based on the provisions contained in the ordinance, the Doña Ana County Comprehensive Plan, One Valley, One Vision 2040 Regional Plan. FIGURE 10. OPPORTUNITY AREAS AND ETHNICALLY CONCENTRATED AREAS OF POVERTY iiLMihSfrMííNiClllSMflSjfif V IVA _ d o ñ a A n a Areas of Greatest Opportunity and Ethnically Concentrated Poverty IB IIlB •V I Tracis wilh G re a te s t O pportunity S c o re s (0 49 - 0 55) __ Colonias I City, Town, a n d Village B o u n d a rie s B EC AP Tracis Olhei Census Tracis C ounty B o u n d arie s ........ M ajor R o a d s rw»> IHiW. riWrwt ‘ * S o u rc e : Fair H o u s in g E q u ity A s s e s s m e n t a n d R e g io n a l A i DOÑA ANA COUNTY AFFORDABLE HOU5ING PLAN S' FIGURE 11. COUNTY ZONING MAP Doña Ana County Land Use Regulations and Zoning Ordinance Land Use Regulations J a n u a r y 2011 Gartiew White Sands Mfssle Range Rincon Vfeláje Cttlnd Rfldur i Sponge . cl ■ P< tenha: Cc rimureiy 0 ¡»*oet (^ 3 /*/ftas £ ¿effipt r$m í'^rísffRyvr» T^foisj Co D S in g le F a m ily H om es, M a n u fa c tu r e d /M o b ile H o m es This example assumes a 1,250 square foot, three bedroom, two bath modular unit In a new subdivision that has utilities and paved access nearby. The cost for the modular building includes the base price plus delivery, taxes, and setup on site. In this example, the lower cost of a modular unit brings the cost of housing into alignment with what a household with an income of 80 percent of AMI can afford. A household with an income of 60 percent of AMI would require additional subsidy. TABLE 37. MANUFACTURED OR MOBILE HOME SINGLE FAMILY DEVELOPMENT FEASIBILITY 5 5 5 Unit size 1,250 1,250 1,250 Lot cost $25,000 $0 $0 Loaded build cost/sf - $97 $606,250 $606,250 $606,250 $20,000 $20,000 $0 $12,500 Number of Units Infrastructure $25,000 $25,000 TOTAL Development Cost Permits and Fees $676,250 $651,250 $618,750 Cost Per Unit $135,250 $130,250 $123,750 100% AMI Affordability $181,600 $181,600 $181,600 $0 $0 $0 $145,300 $145,300 $145,300 $0 $0 $0 $108,900 $108,900 $108,900 $26,350 $21,350 $14,850 100% AMI Subsidy Gap 80% AMI Affordability 80% AMI Subsidy Gap 60% AMI Affordability 60% AMI Subsidy Gap S c a tte r e d S ite S in g le F a m ily C o n stru ctio n This example is for a site built home on an existing lot. The example assumes a basic 1,250 square foot home that is not custom designed. The example assumes that multiple lots are made available to a builder, enabling the builder to standardize the designs of homes to reduce costs. This example assumes that all utilities are available to the lots and that there is no infrastructure cost other than connecting utilities to the site and hookup fees. TABLE 38. SCATTERED SITE SINGLE FAMILY DEVELOPMENT FEASIBILITY Market Rate Construction Land Donation Number of Units 1 Unit 1 Unit Unit size 1,250 1,250 Lot cost $35,000 Loaded build cost/sf - $110 $137,500 $137,500 Permits and fees $5,000 $2,500 TOTAL Development Cost $177,500 $140,000 100% AMI Affordability $181,600 $181,600 $145,300 $145,300 100% AMI Subsidy Gap 80% AMI Affordability D O Ñ A A N A C O U N TY AFFORDABLE HOUSING PLAN Market Rate Construction Land Donation 80% AMI Subsidy Gap $32,200 60% AMI Affordability $108,900 $108,900 60% AMI Subsidy Gap $68,600 $31,100 M u ltifa m ily D e v e lo p m e n t F e a s ib ility Multifamily projects in Doña Ana County, which are currently located in urban communities, are relatively low density, typically two stories with parking and open space. The feasibility analysis uses a density of 12 units per acre. A 1,150 square foot unit is assumed in this example. Monthly carrying costs were calculated based on an interest rate of 4.5 percent for a 30-year loan and insurance and taxes based on local property tax rates and insurance at $3.50 per $1,000 of value. Land costs are based on current vacant land listings where multifamily is indicated as a permitted use and utilities are available. The analysis results in a per unit rent that is lower than the current market in Las Cruces and El Paso. However, households with incomes at 60 percent of median or below will require a subsidy, even with donation of land and infrastructure. TABLE 39. M ULTIFAM ILY DEVELOPMENT FEASIBILITY 12 12 12 1,150 1,150 1,150 Land (1 Acre) $47,000 $0 $0 Infrastructure $48,000 $48,000 $0 Fees $55,200 $55,200 $55,200 Loaded build cost/sf - $102 $1,407,600 $1,407,600 $1,407,600 TOTAL Development Cost $1,557,800 $1,510,800 $1,462,800 Effective Cost Per Unit $129,817 $125,900 $121,900 Monthly Carrying Costs $816 $791 $766 100% AMI Affordability $1,180 $1,180 $1,180 100% AMI Subsidy Gap $0 $0 $0 80% AMI Affordability $944 $944 $944 Units Unit size 80% AMI Subsidy Gap $0 $0 $0 60% AMI Affordability $708 $708 $708 60% AMI Subsidy Gap $108 $83 $58 30% AMI Affordability $354 $354 $354 30% AMI Subsidy Gap $462 $437 $412 D O Ñ A A N A C O U N TY AFFORDABLE HOUSING PLAN f, ¡3Z GOALS, POLICIES A N D Q U A N TIFIA BLE OBJECTIVES P rodu ction Goals The housing production goals address both current needs and the anticipated need for the next ten years based on projected growth of 5,200 households in the County outside of Las Cruces and Mesilla over the next ten years. The needs will be met throughout the County, although most growth is anticipated in the southern part of the County. P olicy and R egu latory Changes Adoption of an Affordable Housing Plan and Ordinance The County will adopt the Affordable Housing Plan by resolution and an Affordable Housing Ordinance that documents the implementation strategies that the County intends to use to meet affordable housing goals. The plan and the ordinance must be reviewed and approved by MFA prior to adoption by the County. Establish a Housing Specialist Position in the County The County will designate a staff position and/or establish a planning priority of affordable housing in the County, potentially in the Community Development Department, to be responsible for implementation of the plan. This would include a focus on affordable housing strategies. The staff would be responsible for working with MFA on implementation of the plan and continue to coordinate County initiatives with the work of the County's Affordable Housing Review Team which would convert to a standing Affordable Housing Advisory Committee. The intent of focusing on affordable housing as a community development priority would build capacity and develop affordable housing expertise within the County administration, develop RFPs for County grants and other donations, administer County grants, shepherd eligible projects through the development process and develop relationships with potential partners, including local non-profits, lenders, and developers. The affordable housing initiatives will direct efforts within the Department to ensure that affordable housing is considered in new development projects by participating in pre-application meetings and reviewing and commenting on zoning applications. D O Ñ A A N A C O U N T Y AFFORDABLE HOUSING PLAN Consistency Among Plans and County Initiatives The County will ensure that affordable housing is recognized as an issue in other County plans and initiatives. The Comprehensive Plan and UDC, economic development plans, and other similar documents will reference the Affordable Housing Plan and ensure that policies are consistent among these documents. Linking Affordable Housing and Economic Development Investments Stakeholders indicated that at present, there is not a direct linkage between housing investment and economic development strategy. As the county invests in economic development efforts, such as the recent earmark of funds for Mesilla Valley Economic Development Alliance (MVEDA) from the recent Gross Receipts Tax (GRT) increase, taking a detailed look at areas and projects of need as identified in the economic development strategy would be strongly recommended. Housing is essential to the success of new business recruitment efforts and existing business expansions, which are necessary to increase the overall tax base. Focusing housing investment in the same areas as the economic development investment, in other words, aligning the strategies, significantly strengthens both. The Comprehensive through its designation of targeted growth areas, sets the framework for coordinating development activities with the livability principles. Through the application of the UDC, the County will incentivize location of housing, community facilities and jobs in these targeted areas, as well as encouraging higher intensity of development in areas that are well served by transportation and utilities. Reduce or Eliminate Performance Zoning in Targeted Growth Areas Performance Zoning, or the Uniform Code currently being discussed, is highly practical and likely necessary in many areas of the county given its size, the varying conditions within the many colonias and other unincorporated areas, and the small size of the planning and zoning staff, it is recommended that the areas in and around areas targeted for urban scale development be removed from the flexible zoning process and have predetermined zoning in place. In cases where land is under multiple ownership, a land use plan for each of these areas would set a framework for development; accomplish the complete communities envisioned in the plan and result in a more cohesive land use pattern. The Comprehensive Plan identifies targeted growth areas with desired intensities of use in each area. The UDC further specifies types and intensities of specific land uses. It also provides for administrative approvals of residential projects that meet the standard of the UDC rather than the hearing process that is required under current zoning. Both the Comprehensive Plan and UDC are works in progress. The simplification of review and approvals for projects is important to affordable housing projects. The UDC is also intended to serve the entire County outside of Las Cruces. It may be adopted by outlying municipalities, but in any case it is likely to replace existing ETZ zoning, reducing the number of zoning districts and hearing processes for development in the County. Standardized Permitting for Approved Affordable Housing Projects 1 New subdivisions in Doña Ana County are often financed through a state or federal agency that exercises its own oversight over the project. Affordable housing projects developed to U.S. Department of Agriculture (USDA) standards must meet higher standards of infrastructure development, housing quality, and efficiency than the existing neighborhoods that surround them. Because these projects must be approved by a Federal or state agency, the subdivision layout and infrastructure have been reviewed. Projects that meet the affordability criteria of this plan (60-80% of AMI for homeownership DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN and 60% of AMI or below for rentals) and have been approved by the USDA or other designated entity, standardized permitting could be employed. Less staff time should be required to approve these projects, as the standards are well documented and have been accepted nationally. Combined with zoning recommendations above, the process from application to construction can be significantly reduced. If projects meet the standards of USDA or similar and the standards of the UDC, projects should be approved administratively. Standardized Permitting for Infill In areas where affordable housing will utilize existing lots (either as is or re-platted) that do not require a change in use, infrastructure is in place and the housing meets USDA or other designated standards, streamlined permitting could be utilized. Site plans for projects that meet the standards of the UDC should be approved administratively. County Support for Infrastructure Financing The County has adopted ordinances that enable the use of Tax Increment Development Districts (TIDD)s and Public Improvement Districts (PIDs). These tools are used to finance infrastructure in a specific area, subject to planning and approval by the County Commission. TIDDs can capture the increase in property and, potentially, gross receipts taxes generated by a project. PIDs can assess special levies on property owners within the district to create revenue to finance infrastructure improvements. Both options allow for bond financing to be paid back through the district revenues. These tools are most appropriate for larger developments. For example, the County recommends that PIDs not be approved to finance less than $3,000,000 because the cost to implement the PID makes financing for smaller projects inefficient. Consider utilization of tax increment development districts or public improvement districts for projects that meet that need for affordable housing and are to be built in the target growth areas of the Comprehensive Plan. These projects should be large enough to justify the cost of creating and administering the district. County support is essential to the success of these tools. The County has ordinances in place to allow both of these solutions. It is sometimes debated that financing tools that capture tax revenues for a specific area delay tax receipts to government entities. It must be noted that the slow pace of development and unmet demand for housing is preventing new property tax dollars from being generated currently. Therefore, it should be assumed that a program that delays tax revenue that otherwise would be nonexistent, while meeting the needs of county residents and helping secure new tax generating economic development projects through support of workforce, is preferable to the status quo. There are two large projects in early planning stages that are potential candidates for this type of support. One potential is property near State Line Rd. and McCombs in Chaparral. This area is being considered for development of a mixed use project is large enough that it will transform the community of Chaparral. The second opportunity is the former McAnally egg farm in Berino. This property is close to 1-10 and to the existing community of Berino. It is adjacent to the Parque Subdivision, a new affordable homeownership project. The egg farm has closed, and there is local interest by private developers. At around 250 acres, this property is also an opportunity for a mixed-income, mixed use community that DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN meets the standards of the Comprehensive Plan through application of the new UDC once it is adopted. The site will require utilities and drainage infrastructure. The private sector will be the driver of these projects. The County's role would be a streamlined review process and possibly assistance with utilities or hookup fees for homes priced for the target income levels of the plan and advocating for creative mixed use development to not only transform the community but to establish a model for community development that features affordable housing as an integral e le m e n t. D e v elo p m e n t P a rtn ersh ip s The recommendations of the Affordable Housing Plan assume that affordable housing and related services in Doña Ana County will be provided through the private sector, including for-profit and non­ profit housing providers. Rather than acting as a developer or providing services directly, the County can partner with these entities to remove barriers to affordable housing and further the County's affordable housing goals. Doña Ana County is fortunate to have several non-profit housing providers that provide a broad range of services, from development to property management to consumer education. There is development capacity within the County to take on new housing projects. What is lacking is adequate funding to tackle the magnitude of need in a County as large as Doña Ana County. The County has a significant role to play as a partner in projects and programs to meet housing needs. Partnerships with other governmental and private entities Potential partnerships might include joint projects where the County contributes land or infrastructure improvements, funding of specific programs that further County goals, support for legislative funding or grant requests or similar support to other entities. In addition to housing providers, there are other private and public entities that promote economic development, provide utility and transportation services, provide social services and education, and in other ways contribute to the community development in the County. Coordination with these agencies will ensure that their short-term operations and long-term plans support the County's efforts to provide affordable housing and build complete communities. Potential partners include the Gadsden Independent School District, municipal school districts that serve County communities, the two regional utility authorities, health clinics, and the Elephant Butte Irrigation District. Each of these entities owns property in the County, and surplus properties could be used as housing. As an example, the GISD owns schools that are no longer in use. These properties present an opportunity for reuse as housing or mixed use development. In such a scenario, the County could purchase the property, accept donation of the property or assist the school district in selling to a suitable developer; provide fee waivers and expedited permitting for a project that meets the goals of this plan; and/or help with zone changes or other regulatory requirements for the building reuse. Acquisition and Donation of Land Donation of land or making land available at a below market rate is a common incentive that local governments use to attract affordable housing. Alternatively, surplus County property can be sold or leased to provide a revenue stream that funds affordable housing initiatives. DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN The County should identify surplus land that it owns that can be used for housing projects directly or sold or leased to create an affordable housing fund. A preliminary look at potential properties indicates that Doña Ana County has very little property that can be considered surplus. Two potential properties are located in La Mesa/San Miguel area and Del Cerro. The Las Mesa property is 11.75 acres with a drainage channel traversing it. Surrounding development is agricultural and low density, although there are nearby subdivisions with smaller lots. An elementary school, grocery store, post office and health clinic are nearby. The Del Cerro property is adjacent to existing subdivisions. Approximately half of the 15-acre site is a large drainage pond. It is close to the Del Cerro multipurpose center. The County should also collaborate with other public entities, including school districts and municipalities, to identify surplus properties that might be donated by the other entities. The 1994 Comprehensive Plan recommended that the County look to the Bureau of Land Management (BLM) as a source of land. If BLM owned land is well located with respect to the County's land use goals, the County could facilitate transfer of the land to the County for housing development. Infrastructure Assistance Because lack of infrastructure is a major barrier to affordable housing, one of the most important roles that the County can play is making sure that infrastructure appropriate to the sectors and community types envisioned in the Comprehensive Plan and UDC are in place. The County provides roads, drainage improvements and wastewater systems. The County should continue to expand County wastewater service in growing communities and those with substandard infrastructure. The County should seek funds and collaborate with other agencies to complete the drainage improvements identified in drainage master plans. Water service is provided through multiple individual providers. The Lower Rio Grande Public Water Works Authority was formed by the merger of five water systems, and additional mutual domestic water consumers associations have since merged into the larger authority. Regional systems allow for more efficient and cost effective services in rural areas. Coordination with private water systems and encouraging regionalization to reduce fragmentation of water service is a strategy that is low cost to the County. A ssista n ce to n o n -p ro fit h o u sin g p ro v id ers Rehabilitation or replacement of existing structures Existing organizations provide rehabilitation programs in the County. Federal and state funds for these programs are limited, which means that the organizations are only able to repair a few homes per year. Because of the age and condition of the County's rural housing stock, rehabilitation is a huge need. The County could help existing organizations increase the number of homes that are rehabilitated or replaced by helping fund these programs. The County can work with MFA to identify an income stream that can fund a low interest loan program or direct grants. Grants or Other Assistance to Non-Profit Housing Providers Direct grants for programs or for administrative expenses are another way that the County could ensure that the County's non-profit housing providers continue to enhance affordable housing options for D O Ñ A A N A COUNTS' AFFORDABLE HOUSING PLAN residents of the County. The housing specialist position in the County administration would be responsible for issuing RFPs to identify qualifying grantees for County assistance. Existing non-profits in the County, such as Community of Hope and Habitat for Humanity, operate primarily in Las Cruces, although services could be provided throughout the County. These agencies do not have the resources to provide full time staff in outlying communities. Assistance could include free office space, assistance with referrals, help publicizing the resources that are available and securing funding for offices and program expansion in the southern part of the County. F u n d in g /fin a n cin g Partner with local mortgage lenders Local lenders provide credit counseling, homeownership classes, and similar support for first time homebuyers. If the County decides to provide assistance through development subsidies, downpayment assistance or second mortgages, the County will need to partner with local lenders or with non-profit organizations to manage loans, verify incomes and manage second mortgages. Partnerships could include fair housing education, seminars for local lenders regarding County land use and affordable housing initiatives, and funding a loan pool. Low interest loans If the County identifies revenues that can be targeted to affordable housing, the County could fund a low interest loan program. Loans could be used for rehabilitation or for homeownership for households that meet income criteria. A program of this type would likely be coordinated or managed through an existing lender, non-profit or a Land (or Housing) Trust. The Housing Trust is a non-profit community development organization located in Santa Fe that provides a broad range of services, similar to non­ profits in Doña Ana County, in northern New Mexico. The Housing Trust also administers a revolving loan fund. Support for Non-profit Housing Initiatives The County could provide political support for the initiatives of affordable housing providers. As an example, USDA is a major source of affordable housing loans and water and wastewater loans and grants in rural communities Doña Ana County. Unincorporated areas that are adjacent to Las Cruces and El Paso are ineligible for participation in USDA programs. Local non-profits are seeking an exception to allow USDA loan products to be used in the Santa Teresa area and rural communities outside of Las Cruces but within the area defined by USDA as ineligible. The County could support the efforts of affordable housing providers to secure state and federal funding and similar initiatives. MFA is working with the Colonias Infrastructure Board on allowing Colonias Infrastructure funds to be used for affordable housing. County support for MFA's efforts would enable new funding for housing projects. DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN Other A ssista n ce Consistency in Utility Providers As noted in interviews, the large number of utility providers presents development issues, as there is little consistency between developments in regards to water availability, capacity to meet general housing and fire safety needs, and water quality standards. Where larger water service providers have capacity to serve development, the review process for new subdivisions could be expedited. As these are private sector providers, there are limitations to the actions the county could take in providing consistency in service. Though it is recommended that where possible, the county should support and encourage the expansion and/or the creation of utility district level providers in the recommended development areas. The goal would be to develop entities such as Camino Real Regional Utility District in order to provide consistency and ultimately meet the basic household needs and ensure new housing developments have the capacity for fire safety. To the degree possible, the county could utilize tax increment financing through a TIDD to assist in increasing capacity and availability of water service in the recommended development areas. This would require the approval of property owners within the area that benefits from these improvements. It also increases costs to the property owners in exchange for the benefits provided. The County supported the formation of the two existing regional water utility authorities and is a partner in the CRRUA. In addition to support for regionalizing water utilities, the County could become a partner in water/wastewater utility districts in areas where it operates a County wastewater system. C onclusion Doña Ana County is fortunate that there is already capacity within the County to provide affordable housing for low and moderate income County residents. The Doña Ana County Affordable Housing Plan documents that affordable housing needs exceed the funding available for affordable housing projects. DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN r -'31 The Affordable Housing Plan Review Team has identified a number of opportunities to accelerate the work that is already being done in the County and to donate resources to affordable housing projects. Through ongoing work of the County's Affordable Housing Review Team, designated County staff and the MFA, with approval by the Board of County Commissioners, the County will select and implement the highest priority projects. The first priorities are adoption of the Affordable Housing Plan and ordinance, completion and adoption of the Comprehensive Plan and Unified Development Code, implementation of streamlined review processes through the UDC, and elevating affordable housing initiatives and projects as a priority for improving the quality of life for residents of Doña Ana County. m DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN S'. ( t o _u>mm _m wr>Z_A UOZ) >?nOwU>mFm IOCEZD A P P E N D IX Appendix A. Stakeholder Interview List Appendix B. Zoning Maps Appendix C. Utility Locations and Flood Hazard Areas Appendix D. Housing Resources DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN A p p en d ix A. S ta k eh o ld er In terv iew List Linda Vasquez - City of Sunland Park Pat Banegas - City of Hatch Jose Terrones - Anthony Water and Sanitation District Rose Garcia - Executive Director, Tierra del Sol Gil Mendez - Tierra del Sol Erika Prieto - Tierra del Sol Olga Diaz - Tierra del Sol Nicole Martinez - Mesilla Valley Community of Hope Robbie Levey - Mesilla Valley Public Housing Authority Conception Medina - Sunland Park Housing Authority Steve Parsley - Doña Ana Title Steve N ew by-S teve Newby Architects Bob Hearn - Dona Ana ETZ Commission Bob Pofahl - Community Builders International, Picacho Mountain Davin Lopez - Mesilla Valley Economic Development Alliance Ken Thurston - Ken Thurston Homes Kent Thurston - Ken Thurston Homes Kiel Hoffman - President, Pioneer State Bank/Board Chair, MVEDA Jack Curry - Curry Development DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN Appendix B. Zoning Maps DONA ANA COUNTY AFFORDABLE HOUSING PLAN 1?44 Milagro Incorporated Village o f H atch C om m ercial Single family residential Rodey: Village District Zoning Mixed Use Rodey: NM Inset Map Hatch Rincon CP Area Radium Springs' n ' N Valley North Ft Selden Land owned by the USA or New Mexico Commercial I ! . f---- 1 1 Whi te Range S a n d s M is s ile 4 June 5, 2015 >' OrganV i. M o o n g a t e . ^ 5 ^ and Mountain View 4 Las Cruces ' _ Metro CP Area ** - C - -s i Conceptual Planning (CP) Area i Extra Territorial Zone boundary 1 r" j-: Incorporated Municipality Industrial N/liles 2 PD Multi family residential Mixed Use Public Conservation Single family residential Dona Ana County Zoning - North Valley CP Area .57 H4 Mounta'm View .I. . . g. Moongaie .- i :i Las Cruces Metro CP Area -1 U) -J Old Picadm' in I: . . Fairacrais . Dona Ana County Zoning - Mid Valley Area .. - - Public Conservation - Park - Commercial Agriculture . Mixed Use PD Land owned by the USA or New Mexico Single family residential Multi family residential Industrial incorporated Municipality I - Extra Territorial Zone boundary Miles A I .- 1 Conceptual Planning (CP)Area I I I White Sands Range -. ?r -u - - - Ajunoo South Valley Area [Junoo OJBJO euv eyog June 5. 2015 South Vaiiey CP Area Chihuahua, San Miguel Cha mb?enno .. 1- I i 0 3? International boundary A .Hunoo fl) Junog .OJQIO. I euvleyoa Chaparral I Do?a Ana County Zoning - BorderArea - Institutional - Public Conservation . Park Agriculture IndUStrial PD Single family residential i Multifamily residential - Commercial - Mixed Use Paso County. Texas Land owned by the USA or New Mexico Census Blocks assigned to Chaparral Colonia in Otero County Incorporated Municipality Conceptual Planning (CP)Area Camino Real Regional Utility I Authority Zoning, Planning and Platting Jurisdiction June 5, 2015 A p p en d ix C. U tility L ocations and Flood Hazard A reas The locations of utilities and flood hazard areas are shown on the following maps Flood Insurance Rate Maps (FIRM) Zone Classifications are as follows: Zone X Areas determined to be outside 500-year floodplain determined to be outside the 1% and 0.2% annual chance floodplains. Zone A Areas subject to inundation by the 1-percent-annual-chance flood event generally determined using approximate methodologies. Because detailed hydraulic analyses have not been performed, no Base Flood Elevations (BFEs) or flood depths are shown. Mandatory flood insurance purchase requirements and floodplain management standards apply. Zone AE Areas subject to inundation by the 1-percent-annual-chance flood event determined by detailed methods. Base Flood Elevations (BFEs) are shown. Mandatory flood insurance purchase requirements and floodplain management standards apply. Zone AH Areas subject to inundation by 1-percent-annual-chance shallow flooding (usually areas of ponding) where average depths are between one and three feet. Base Flood Elevations (BFEs) derived from detailed hydraulic analyses are shown in this zone. Mandatory flood insurance purchase requirements and floodplain management standards apply. Zone AO Areas subject to inundation by 1-percent-annual-chance shallow flooding (usually sheet flow on sloping terrain) where average depths are between one and three feet. Average flood depths derived from detailed hydraulic analyses are shown in this zone. Mandatory flood insurance purchase requirements and floodplain management standards apply. Some Zone AO have been designated in areas with high flood velocities such as alluvial fans and washes. Communities are encouraged to adopt more restrictive requirements for these areas. Area Not An area that is located within a community or county that is not mapped on any Included published FIRM. (ANI) D O Ñ A A N A C O U N TY AFFORDABLE HOUSING PLAN S./fz Hflfch (West) m m ii§pS! , W 'fm A EI-iVljHagrq- Hatch Subarea North Valley Planning Area Utilities Wsslevvsier Treatment Piahl = • Natural gos ttne Wastewater pipeline S S Wsstewaier Lift Station O - - ■ H oad h a z a rd Q -2 % A n n u a l c h a n c e Flood Zones c a d e ra ! or sla te p arcel A r e a (C P A ) b o u n d a r y C o lo n ia s C o n c e p tu a l p la n n in g I n c o r p o r a te d m u n ic ip a lity S c h o o ls p a rc e l R h ic o n ^ F sbíüsry 6 ,2 0 1 5 f ~ l C o u n ty b o u n d a r y * —' t _ O Radium Springs Subarea North Valley Planning Area Utilities N a tu r a l g a s lin e ( j D W a s t e w a t e r L ift S t a t i o n North Valley CPA 02 % Annual chance flood hazard Flood Zones Federal or state parcel A r e a (C P A ) b o u n d a r y C o lo n ia s C o n c e p t u a l P la n n in g Ft . Selden I JjL ' D s f e e - í . 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M ie s Chaparral Subarea B ord er P la n n in g A r e a B order CPA N a tu r a l g a s lin e W a s te w a te r p ip e lin e 1~p s W a s t e w a t e r L ift S t a t i o n Utilities ; 'W spsrral u *¿m m 1 c~ AO AH AE flo o d h a z a r d 0 .2 % A n n u a l c h a n c e Flood Zones mp Mi # IU m 0 /J ■ / ' /- _ P £ 3 1 0 T ex a s b o u n d ary February 5,2015 A r e a (C P A ) b o u n d a r y C o u n ty b o u n d a r y -* C o lo n ia s C o n c e p t u a l P la n n in g S c h o o ls p a rc e l 111 F e d e r a l o r s t a t e p a r c e l •// 1 « Ancifiriii Siva " T SoíJfb Valley B o rin o c > " r Border CPA C hcim harina 'i ¿ [■” Border Planning Area Anthony Subarea Utilities im S W a s te w a te r T r e a tm e n t P la n t m W a s t e w a t e r L ift S t a t i o n '------- = S a n ta T e r e s a w a te rlin e W a s te w a te r p ip e lin e ---------- - N a t u r a l g a s lin e Flood Zones 0 2 % A nnual ch a n ce flo o d h a z a r d M>ote Rd 4* F ed eral o r s ta le p arcel [ ) S c h o o ls p a rc e l / - i C o lo n ia s C o n c e p tu a l P la n n in g I n c o r p o r a te d m u n ic ip a lity —r A r e a (C P A ) b o u n d a r y C o u n ly b o u n d a r y Miles February 5, 2015 S'. jsh? — - Border mir. 'Í! Doña 0 m m* A q a . C 0 u,n::t^ 14 m ley to - r 1 ! Á i'bojHRd . 'A-j !■ a T«resa .1 E l i alia % a V - FiT ., "vv Count y. r "V ? ' 4 -k ¿ Pa s o Natural gas line Wastewater pipeline = Santa Teresa waterline = Incorporated municipality Schools parcel J* Federal or state parcel February 5. 2015 3UÍ International boundary P '' S » W iik ^5) - h Santa Teresa Census 1 “ Designated Place (CDP) County boundary y « Colonias Conceptual Planning ? Area (CPA) boundary 0 0.2 % Annual chance flood hazard Flood Zones y% ~r W Wastewater Treatment Plant FD Wastewater Lift Station ~ Utilities Sunland Park & Santa Teresa Subarea Border Planning Area . .Jt A p p en d ix D. H ousin g R esou rces The following lists potential sources of federal, state and local financing and subsidies to support affordable housing in New Mexico. Resources are listed by type of housing and funding agency or source. Primary resources include USDA, HUD, FHA and the New Mexico Mortgage Finance Authority (NMMFA). The information is not all-inclusive, but it provides the County with information about the most commonly used housing resources for non-profit and public agency housing providers, housing developers, and individual homeowners and renters. Many of these programs are competitive, so it will be important for County officials and staff to understand how a package of multiple sources can be combined to accomplish the desired project. In addition, the County will likely partner with a non-profit or other housing developer that will take the lead on the project. The resources listed below include those generally available to individuals, non-profit and for-profit housing developers and other organizations in rural communities in New Mexico. Specific organizations that serve Dona Ana County are noted where appropriate. Resources for Non-Profit and Organizations and Public Agencies Most capacity building resources are focused on nonprofit housing providers, although the NMMFA also works with public partners. In its Action Plan, the MFA commits to building capacity in the state to: provide decent housing; provide a suitable living environment; and expand economic opportunities for the state's low- and moderate-income residents. The MFA's capacity building programs as well as other capacity building resources include the following. Community Housing Development Organization (CHDO) is a special status that a nonprofit or community based organization can obtain. This status can be provided by the Community Housing and Development (CHDO) department to organizations that provide and develop affordable housing. Through this status the nonprofit or community based organization has access to technical assistance, training, and networking opportunities. CHDO's are well suited to address affordable housing needs at the local level. Funding for certain CHDO activities is provided through the HOME program. Other capacity-building resources for nonprofits that are eligible to receive assistance include: Local Initiatives Support Coalition and Rural Local Initiatives Support Coalition (LISC) has helped nonprofit community development corporations acquire and preserve housing developments, build partnerships with housing authorities and other organizations, and advocate for government policies that can reduce the loss of affordable homes and apartments. LISC's Housing Authority Resource Center brokers relationships between local housing authorities, LISC local offices and other community developers to provide access to best practices, information and training. The Institute for Community Economics (ICE) is a federally certified Institution that makes loans to create housing that is permanently affordable. ICE also provides technical assistance and training to community-based groups who seek to set up community land trusts. ICE's principal lending goes to community land trusts, limited equity cooperatives, and community-based nonprofit organizations creating housing. DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN ¡ lj h The Housing Counseling Assistance Program enables anyone who wants to (or already does) rent or own housing-whether through a HUD program, a Veterans Affairs program, other Federal programs, a State or local program, or the regular private market-to get the counseling they need to make their rent or mortgage payments and to be a responsible tenant or owner in other ways. The counseling is provided by HUD-approved housing counseling agencies. HUD provides support to a nationwide network of Housing Counseling Agencies (HCA) and counselors. HCA's are trained and approved to provide tools to current and prospective homeowners and renters so that they can make responsible choices to address their housing needs in light of their f¡nanciaI situations. Previous and current funding: FY2014 $45 million, FY2015 $47 million, USDA Rural Development Housing Application Packaging Grants provide government funds to taxexempt public agencies and private non-profit organizations to package applications for submission to Housing and Community Facilities Programs. USDA Self-Help Technical Assistance Grants provide financial assistance to qualified nonprofit organizations and public bodies that will aid needy very low and low-income individuals and their families to build homes in rural areas by the self help method. Any State, political subdivision, private or public nonprofit corporation is eligible to apply. Resources for Homeless and Special Needs HUD Emergency Solutions Grant (ESG) Program is a federal grant program designed to help improve the quality of existing emergency shelters for the homeless, to make available additional shelters, to meet the costs of operating shelters, to provide essential social services to homeless individuals, and to help prevent homelessness. The ESG program is designed to be the first step in a continuum of assistance to prevent homelessness and to enable homeless individuals and families to move toward independent living. The three programs are the Supportive Housing Program (SHP), Shelter Plus Care (SPC) program, and Section 8 Single Room Occupancy (SRO) program. These are all competitive grants that require the development of a Continuum of Care system in the community where assistance is being sought. HUD Supportive Housing Program (SHP) is designed to promote, as part of a local Continuum of Care strategy, the development of supportive housing and supportive services to assist homeless persons in the transition from homelessness and to enable them to live as independently as possible. The program is provided to help homeless persons meet three overall goals: to help homeless people achieve residential stability, increase their skills and/or incomes, and obtain greater self-determination (i.e. more influence over decisions that affect their lives. The HUD Shelter Plus Care Program is designed to provide housing and supportive services on a long­ term basis for homeless persons with disabilities, (primarily those with serious mental illness, chronic problems with alcohol and/or drugs, and acquired immunodeficiency syndrome (AIDS) or related diseases) and their families who are living in places not intended for human habitation (e.g., streets) or in emergency shelters. The program allows for a variety of housing choices, and a range of supportive services funded by other sources, in response to the needs of the hard-to-reach homeless population with disabilities. Funds must be matched with in-kind funding to be used for supportive services. Assistance is provided through four component programs: Tenant-based, Sponsor-based, Project-based, and Single Room Occupancy Rental Assistance. DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN ^ / JQ ' HUD Section 8 Moderate Rehabilitation Single Room Occupancy (SRO) Program - Under the SRO program, HUD enters into Annual Contributions Contracts with public housing agencies (PHAs) in connection with the moderate rehabilitation of residential properties that, when rehabilitation is completed, will contain multiple single room dwelling units. These PHAs make Section 8 rental assistance payments to participating owners (i.e., landlords) on behalf of homeless individuals who rent the rehabilitated dwellings. Assistance provided under the SRO program is designed to bring more standard SRO units into the local housing supply and to use those units to assist homeless persons. The SRO units might be in a rundown hotel, a Y, an old school, or even in a large abandoned home. The MFA Emergency Homeless Assistance Program (EHA: ESG and State funding) provides assistance to units of local government or nonprofit organizations to improve the quality of existing emergency shelters and to help meet the costs of operating emergency shelters. Organizations may apply for EHA: ESG & State funding through a competitive RFP process. Funding may be used for acquisition, renovation, repair, rehabilitation, conversion, essential or supportive services, operating expenses, prevention activities associated with providing shelter or services to homeless individuals. Intended to supplement the ESG Program; applicants are not eligible to apply for both. HUD Housing Opportunities for Persons with AIDS (HOPWA) provides housing assistance and related supportive services to low-income people and their families living with HIV/AIDS. The objective of the funding is to maintain housing stability, avoid homelessness, and improve access to HIV/AIDS treatment and care. States, cities, local governments and nonprofit organizations may apply for HOPWA Competitive funding. Previous Funding: FY2013 $315, FY2014 $330, FY2015 $332 HUD Section 811 provides funding to nonprofit organizations to develop rental housing with the availability of supportive services for very low-income adults with disabilities. The newly reformed Section 811 program is authorized to operate in two ways: (1) the traditional way, by providing interestfree capital advances and operating subsidies to nonprofit developers of affordable housing for persons with disabilities; and (2) providing project rental assistance to state housing agencies. The assistance to the state housing agencies can be applied to new or existing multifamily housing complexes funded through different sources, such as Federal Low-Income Housing Tax Credits, Federal HOME funds, and other state, Federal, and local programs. In FY 2012, no funding was appropriated for traditional 811 capital advances. Previous funding: FY2013 $156 Million, FY2014 $126 Million, FY2015 $160 Millions HUD Section 202 provides capital advances to private nonprofit organizations (public entities are not eligible) to finance the development of supportive housing for the elderly. The capital advance does not have to be repaid as long as the project serves very low-income elderly persons for 40 years. Project rental assistance funds are provided to cover the difference between the HUD-approved operating cost for the project and the tenants' contribution towards rent. Project rental assistance contracts are approved initially for 3 years and are renewable based on the availability of funds. Applicants must submit a resolution that they will provide a minimum capital investment equal to 0.5 percent of the HUD-approved capital advance, up to a maximum of $25,000 for national sponsors or $10,000 for other sponsors. Previous Funding: FY 2013 $355, FY 2014 $384 million, FY 2015 $440 million DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN HUD Section 231 falls under the multifamily programs that HUD provides. Other Multifamily Programs include: • • M a n u fa c t u r e d H o u sin g - S e c tio n 2 0 7 a program that assists with construction or rehabilitation • R e n ta l H o u sin g f o r U rb a n a n d C o n c e n tr a te d D e v e lo p m e n t a r e a s - S e c tio n 2 2 0 a program that C o o p e r a tiv e H o u sin g - S e c tio n 2 1 3 a program that facilitates the construction, rehabilitation and purchase of cooperative housing projects. facilitates the development of multifamily housing projects. R e n ta l a n d C o o p e r a tiv e H o u sin g 2 2 1 (d )(4 ) a program that facilitates the construction and rehabilitation of cooperative housing developments, targeting moderate-income and displaced families. • E x istin g M u ltifa m ily R e n ta l H o u sin g - S e c tio n s 2 0 7 /2 2 3 (F ) a program that facilitates the purchase or refinancing of existing multifamily rental developments. • R isk -S h a rin g P ro g ra m - Q u a lifie d P a rtic ip a tin g E n titie s (QPE) - S e c tio n 5 4 2 (b ) a program that of manufactured homes, insures mortgage loans to facilitate the construction and substantial rehabilitation of multifamily rental housing for elderly persons (62 or older) and/or persons with disabilities. Insured mortgages may be used to finance the construction and substantial rehabilitation of detached, semidetached, walk-up, or elevator type rental housing designed specifically for elderly or handicapped individuals consisting of eight or more dwelling units. For nonprofit sponsors, the maximum loan amount is 100 percent of the estimated replacement cost of the building (or 100 percent of project value for rehabilitation projects). For all other sponsors, the maximum loan is 90 percent of the replacement cost (or 90 percent of project value for rehabilitation projects). • H o u sin g F in a n c e A g e n c y R isk -S h a rin g - S e c tio n 5 2 4 (c ) a program that provides credit enhancement for mortgages of multifamily projects with loans underwritten and serviced by HFAs. Community Services Block Grants is a formula Service and Block Grant (CSBG) from the U.S. Department • of Health and Human Services (HHS). The CSBG grants provide emergency funds to help with mortgage and utility payments and prevent homelessness. The Community Action Agency of Southern New Mexico (CAASNM) administers block grants servicing in Doña Ana County. USDA Technical and Supervisory Assistance Grants assist low-income rural families in obtaining adequate housing to meet their family's needs and/or to provide the necessary guidance to promote their continued occupancy of already adequate housing. These objectives will be accomplished through the establishment or support of housing delivery and counseling projects run by eligible applicants. USDA Farm Labor Housing Loans and Grants provide capital financing for the development of housing for domestic farm laborers. Resources for Rental Housing HUD Section 8 Housing Choice Vouchers The housing choice voucher program is the federal government's major program for assisting very low-income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market. Since housing assistance is provided on behalf of the family or individual, participants are able to find their own housing, including single-family homes, townhouses and apartments. The participant is free to choose any housing that meets the requirements of the program and is not limited to units located in subsidized housing projects. DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN Housing choice vouchers are administered locally by public housing agencies (PHAs). Project-Based Section 8 Vouchers - Project-based vouchers are a component of a public housing agencies (PHAs) housing choice voucher program. A PHA can attach up to 20 percent of its voucher assistance to specific housing units if the owner agrees to either rehabilitate or construct the units, or the owner agrees to set-aside a portion of the units in an existing development. Mortgage Insurance for Single Room Occupancy Projects (SRO): Section 221(d)(3) and 221(d)(4) insures mortgage loans for multifamily properties consisting of single-room occupancy (SRO) apartments. There are no Federal rental subsidies involved with this SRO program. It is aimed at those tenants who have a source of income but are priced out of the rental apartment market. SRO projects generally require assistance from local governing bodies or charitable organizations in order to reduce the rents to affordable levels. Although SRO housing is intended for very low-income persons, the program does not impose income limits for admission. Local Initiatives Support Coalition (LISC) Affordable Housing Preservation Initiative preserves affordable rental apartments that are in jeopardy because of expiring federal subsidies, and promotes preservation-oriented public policies. LISC helps nonprofit community development corporations acquire and preserve housing developments, build partnerships with housing authorities and other organizations, and advocate for government policies that can reduce the loss of affordable homes and apartments. Through its Housing Authority Resource Center, LISC assists local housing authorities identify financing structures that will leverage public resources with private investment as well as direct project financing such as predevelopment loans, bridge lending, lines of credit, working capital, and tax credit equity. USDA Rural Development Multi-Family Housing Programs offer Rural Rental Housing Loans to provide affordable multi-family rental housing for very low-, low-, and moderate-income families; the elderly; and persons with disabilities. This is primarily a direct mortgage program, but funds may also be used to buy and improve land and to provide necessary facilities such as water and waste disposal systems. In addition, deep subsidy rental assistance is available to eligible families. USDA Rural Rental Housing Program is adaptable for participation by a wide variety of owners. Loans can be made to individuals, trusts, associations, partnerships, limited partnerships, State or local public agencies, consumer cooperatives, and profit or nonprofit corporations. USDA Guaranteed Rental Housing Programs guarantee loans under the Rural Rental Housing Guaranteed loan program for development of multi-family housing facilities in rural areas of the United States. Loan guarantees are provided for the construction, acquisition, or rehabilitation of rural multi­ family housing. USDA Rental Assistance (RA) Program provides an additional source of support for households with incomes too low to pay the HCFP subsidized (basic) rent from their own resources. USDA Multi-Family Housing Preservation and Revitalization (MPR) Loans and Grants restructure Rural Rental Housing loans and Off-Farm Labor Housing loans and provide grants to revitalize Multi-Family DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN f.NtlL Housing projects in order to extend the affordable use of these projects without displacing tenants due to increased rents. Resources for Homebuyers Several programs are available through the New Mexico Mortgage Finance Authority (NMMFA) to help low to moderate income homebuyers. The following NMMFA programs could benefit Bernalillo families Helping Hand - Up to $8,000 down payment and closing cost assistance to first-time homebuyers with at least one family member that has a disability. This is a soft second loan that does need to be paid back until the property is sold, refinanced, or transferred, and it is assumable if the buyer meets program eligibility requirements. The loan may be forgiven after 10 years. This program is targeted toward households earning 80% or less than AMI, adjusted for family size. Mortgage B o o s te r- A fixed-rate second mortgage that is used in conjunction with either a Mortgage$aver or Mortgage$aver Zero first mortgage. Mortgage Booster features a 30-year term and a maximum loan amount of $8,000. Mortgage Booster is priced .5 percent higher than MortgageSaver's interest rate. Mortgage$aver - 30-year fixed-rate loans for low to moderate income buyers; available at below- market rates, with a one percent discount and one percent origination fee. Mortgage$aver Zero - Thirty-year fixed-rate mortgage loans priced with 0 percent discount and 0 percent origination fee for low- to moderate-income first-time homebuyers. Mortgage$aver Plus - 30-year fixed rate mortgage that includes a 3.5% grant to offset downpayment and closing costs for low to moderate income first time buyers. The interest rate is slightly higher than Mortgage$aver or Mortgage$aver Zero, but there is no origination fee or discount fee. Mortgage$aver Xtra features a deeply discounted interest rate for very low-income borrowers who are at or below 50 percent of the area median income. Payment$aver Program - A loan that provides the lesser of eight percent of the sale price of the home or $8,000 for a down payment, closing costs, principal reduction and/or interest rate buy-down for lower income buyers who have not owned and occupied a primary residence for the past three years. This is a zero percent second mortgage loan due on sale, transfer or refinance, which may be forgiven after 10 years. Payment$aver SmartChoice Program - a soft second mortgage that borrower with a Section 8 Housing Boucher can use, with a loan amount of up to $15,000. This loan has a 0 percent interest rate, and is paid back when the property is sold, refinanced or transferred. Mortgage Booster Program - this program provides down payment and closing cost assistance, in the form of a second mortgage, to borrowers who qualify for the Mortgage$aver loan. The maximum loan amount is $8,000. These are repaid over 30 years. D O Ñ A A N A C O U N T Y AFFORDABLE HOUSING PLAN HERO program - a special MFA first mortgage loan that includes a 3.5 percent down payment assistance grant to low- to moderate-income households in which at least one member is a teacher, police officer, healthcare worker, firefighter or an active member of the Armed Forces. Individual Development Account (IDA) is a program that partners local non-profit organizations and financial institutions to encourage participants to save toward the purchase of a first home through a matching grant incentive. The local non-profit, the IDA program sponsor, recruits participants for the IDA program, provides financial education classes, and may also provide one-on-one counseling and training to participants. After signing up for an IDA program, each participant opens up an account with the partnering bank or credit union. Each deposit made by the participant is matched from a source of grant funding. The participant is allowed to withdraw funds when they have achieved their savings goal. Prosperity Works partners with local organizations in New Mexico to teach them how to develop and offer effective IDA programs. Southwest Regional Housing and Community Development Corporation and CAASNM are partners in the New Mexico Assets Consortium. HELP-New Mexico in Las Cruces, which provides Emergency Assistance for low income adults and migrant and seasonal farmworkers, is also a partner. HUD's Federal Housing Administration (FHA) Section 203(b) mortgage insurance insures loans made to creditworthy borrowers who may not qualify for conventional mortgages on affordable terms. The downpayment requirements can be as little as 3.5% and some fees are limited. Mortgage insurance is available for one- to four-unit residences where the property is the owner's primary residence. The program has mortgage máximums, which vary depending on number of units. HUD's Energy Efficient Mortgage (EEM) allows homeowners to finance energy efficiency features in new or existing housing as part of their FHA insured home purchase or refinancing mortgage. Home must be the owner's principal residence. The borrower doesn't have to qualify for the higher cost and doesn't make a downpayment on it. This can also be used with the FHA Section 203(k) rehabilitation program or HUD's Title I Home Improvement Loan Program. HUD's Graduated Payment Mortgage Insurance (Section 245(a)) enables a household with a limited income that is expected to increase to buy a home sooner by making mortgage payments that start small and increase gradually over time. All FHA-approved lenders may make GPMs available to persons who intend to use the mortgage property as their primary residence and who expect to see their income rise appreciably in the future. The Federal Home Loan Bank Mortgage Partnership Finance®Program combines the retail expertise of community lenders with the wholesale funding advantages of the FHLBanks, resulting in an efficient method of financing mortgage loans. Mortgage lenders can continue to manage all aspects of their customer relationships and depending on the MPF product chosen, lenders may be paid credit enhancement fees for managing the credit risk of the loans they originate and sell. The USDA Rural Development office in Las Cruces services Doha Ana County, providing assistance to individuals, communities and others related to USDA's programs for rural areas. These programs include home loans and grants. USDA funding extends to single family homes, apartments for lowincome people and the elderly, farm laborer housing, and a wide range of community facilities. Local lenders provide USDA loans. DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN The USDA provides direct loans of up to $160,900 for low (50% - 80% AMI) and very low (below 50% AMI) income households, with a maximum income of $45,850 for a family of four. Payment subsidy is available to applicants to enhance repayment ability. USDA Rural Development guaranteed housing loans are geared to families with incomes of up to 115% of AMI. In Dona Ana County the moderate income limit for a guaranteed loan is $75,650 for a household of up to four persons and $99,850 for households of five or more. For both programs, families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance. In addition, applicants must have reasonable credit histories. USDA Rural Development Single Family Housing Loans and Grants provide homeownership opportunities to low- and moderate-income rural Americans through several loan, grant, and loan guarantee programs. The programs also make funding available to individuals to finance vital improvements necessary to make their homes decent, safe, and sanitary. USDA Section 502 Rural Housing Direct Loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to acquire, build (including funds to purchase and prepare sites and to provide water and sewage facilities), repair, renovate or relocate a home. USDA Rural Housing Guaranteed Loans are for applicants who have an income of up to 115% of the median income for the area. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance. In addition, applicants must have reasonable credit histories. USDA Section 502 Mutual Self-Help Housing Loan Program is used primarily to help very low- and lowincome households construct their own homes. USDA Guaranteed Loan Refinance PILOT Program helps rural borrowers refinance their mortgages to reduce their monthly payments. The Single Family Housing Guaranteed Rural Refinance Pilot Program operates in 19 states for homeowners who have loans that were made or guaranteed by USDA Rural Development. Resources for Housing Development HUD/FHA and the New Mexico Mortgage Finance Authority provide several types of financing and mortgage insurance programs for single family and multi-family development. They include: The Low Income Housing Tax Credit Program (LIHTC) provides federal income tax credits to individuals or organizations that develop affordable housing through either new construction or acquisition and rehabilitation. The tax credits provide a dollar for dollar reduction in the developer's tax liability for a ten year period. Tax credits can also be used by nonprofit or public developers to attract investment to an affordable housing project by syndicating, or selling, the tax credit to investors. In order to receive tax credits a developer must set-aside and rent restrict a number of units for occupancy by households below 60% of area median income. These units must remain affordable for a minimum of 30 years. This program is a resource provided by the Internal Revenue Service. In addition to tax credits, the financing "gap" for certain LIHTC projects may be filled with a below market rate HOME loan. Tax credits and D O Ñ A A N A C O U N T Y AFFORDABLE HOUSING PLAN s. ~kf rental HOME loans are awarded annually through a competitive application process according to the state's Qualified Allocation Plan. The New Mexico State Affordable Housing Tax Credit (Rental) provides charitable state tax credit for up to 50% of the value of donations (cash, land, buildings or services) for affordable housing projects approved by the MFA, or for donations made directly to the NM Affordable Housing Charitable Trust. FHA Mortgage Insurance for Rental Housing: Section 207. Section 207 mortgage insurance is however, the primary insurance vehicle for the Section 223(f) refinancing program described below. A project is eligible for mortgage insurance if the sponsor can demonstrate that there is a definite market demand, that the project is economically self-sufficient, and that financing is secure. The program has statutory per unit mortgage limits, which vary according to the size of the unit, the type of structure, and the location of the project. There are also loan-to-value and debt service limitations. The mortgage is limited to 90 percent of HUD appraised value. Eligible mortgagors include investors, builders, developers, and others who meet HUD requirements for mortgagors. All families are eligible to occupy dwellings in a structure whose mortgage is insured under this program, subject to normal tenant selections. FHA Mortgage Insurance for Manufactured Home Parks: Section 207. The Section 207 Program insures mortgage loans to facilitate the construction or substantial rehabilitation of multifamily manufactured home parks. Section 207 promotes the creation of manufactured home communities by increasing the availability of affordable financing and mortgages. The program insures HUD-approved lenders against loss on mortgage defaults. Insured mortgages may be used to finance the construction or rehabilitation of manufactured home parks. Home parks must consist of 5 or more spaces. Contractors for new construction and substantial rehabilitation projects must comply with prevailing wage requirements under the Davis-Bacon Act. Eligible mortgagors include investors, builders, developers and others who meet HUD requirements for mortgagors. Eligible Customers include families, individuals, or elderly persons owning manufactured homes or desiring to lease spaces in a manufactured park. FHA Section 207/223(f) insures mortgage loans to facilitate the purchase or refinancing of existing multifamily rental housing. These projects may have been financed originally with conventional or FHA insured mortgages. Properties requiring substantial rehabilitation are not eligible for mortgage insurance under this program. The program allows for long- term mortgages (up to 35 years) that can be financed with Government National Mortgage Association (GNMA) Mortgage-Backed Securities. This eligibility for purchase in the secondary mortgage market improves the availability of loan funds and permits more favorable interest rates. The property must contain at least 5 residential units with complete kitchens and baths and have been completed or substantially rehabilitated for at least 3 years prior to the date of the application for mortgage insurance. The program allows for non-critical repairs that must be completed within 12 months of loan closing. The remaining economic life of the project must be long enough to permit a ten-year mortgage. The mortgage term cannot exceed 35 years or 75 percent of the estimated life of the physical improvements, whichever is less. Davis Bacon prevailing wage requirements do not apply to this program. DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN S, The FHA Section 221(d)(3) and 221(d)(4) program insures mortgage loans for multifamily properties consisting of single-room occupancy (SRO) apartments. There are no Federal rental subsidies involved with this SRO program. It is aimed at those tenants who have a source of income but are priced out of the rental apartment market. SRO projects generally require assistance from local governing bodies or charitable organizations in order to reduce the rents to affordable levels. Although SRO housing is intended for very low-income persons, the program does not impose income limits for admission. The BUILD IT! Loan Guaranty Program was created to encourage other lenders to provide interim financing for "high risk" or unconventional projects when they might not otherwise do so - for "high risk" or unconventional projects, unfamiliar types of borrowers or unfamiliar markets. The program offers MFA guaranties of up to 50% of the risk of loss in the underlying loan. BUILD IT! Loan guaranties can be used for owner-occupied or rental developments or special needs facilities. Sites must be responsive to demonstrated community needs, and zoning must be pending or completed. Commitments for matching contributions from other public sector entities, equal to 10% of the total development costs, must be in place. Finally, at least 40% of the units in the development must be affordable to households earning no more than eighty percent of adjusted area median income. The NM Housing Trust Fund provides flexible funding for housing initiatives that will provide affordable housing primarily for persons or households of low or moderate income. Non-profit organizations, forprofit organizations, governmental housing agencies, regional housing authorities, governmental entities, governmental instrumentalities, tribal governments, tribal housing agencies and other entities as outlined in the Notice of Funding Availability (NOFA). Costs of infrastructure, construction, acquisition, and rehabilitation necessary to support affordable single family or rental housing as outlined in the NOFA. MFA mortgage may be in first or junior lien position on the property. Rental projects must serve households earning 60% or less of AMI. The MFA Primero Loan Program is a flexible, low cost loan program created to finance the development of affordable rental or special needs residential facilities in New Mexico that would be considered "high risk" by traditional lenders. Its goal is to leverage other public and private funds, and to expand the housing development capacity of New Mexico's nonprofit, tribal and public agency housing providers. The program can be used to finance all types of projects that cannot be accommodated by existing sources. Funding may be approved for specific housing developments, or for programs to be operated by agencies to meet local housing needs. Rental, owner occupied and special needs projects of any size maybe financed under this program, during any stage of the development process. New construction, conversion, and acquisition/rehabilitation projects may be financed. The HOME/Single Family Development Program provides partial or "gap" financing to nonprofit and for-profit developers, public and tribal entities, and CHDOs for the construction, acquisition and rehabilitation of single family homes throughout New Mexico. Units financed with HOME funds must be affordable to households earning no more than 80% of the area median income adjusted for family size. HOME/SFD provides junior mortgages with below-market interest rates, and other advantageous loan terms tailored to the needs of the projects. HOME funds may be used in combination with other down payment and closing cost assistance programs. However, all HOME subsidies combined cannot exceed $30,000 per unit. Homes must meet the Model Energy code, accessibility requirements under the Fair Housing Act, and local building codes. DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN S. I(ej The HOME/Rental Loan Program provides gap financing for a variety of affordable and special needs housing projects throughout the state of New Mexico. As gap financing, HOME funds are typically the last dollars committed to a project and are used in combination with other housing resources such as MFA's Tax Credit and 542(c) loan programs. MFA's HOME funds can be awarded as gap financing for projects that qualify for the Housing Tax Credit program. The maximum amount is $20,000 per unit with a maximum of $600,000 per project. 542(c) FHA-lnsured Multifamily Loan Program provides construction and permanent loans for affordable rental developments, including new construction, substantial rehabilitation, refinancing or acquisition of projects having no less than five units per site. Structures may be detached, semi­ detached, row houses or multi-family structures. Single asset mortgagors, including nonprofit organizations, for-profit corporations, joint ventures, limited liability companies, and partnerships are eligible borrowers. Access Loans provide federally insured construction and permanent financing for small-scale affordable housing projects throughout New Mexico. This program is designed to minimize transaction and due diligence costs and expedite processing for small projects. Eligible projects include new construction, substantial rehabilitation, refinancing or acquisition of projects having no less than five units per site. Detached, semi-detached, row houses or multifamily structures are eligible. Eligible borrowers may be single asset mortgagors, including nonprofit organizations, for-profit corporations, joint ventures, limited liability companies, and partnerships. MFA Tax Exempt Bond Financing for Affordable Rental Housing - MFA will provide bond financing for multifamily housing developments through the following mechanisms: • • • Using Private Activity Bond Volume Cap (PABVC) multifamily project allocations from the State Board of Finance ("SBOF") for new tax exempt bond issues; Refunding outstanding bond issues; or Issuing new 501(c)(3) bonds. Section 108 is the loan guarantee provision of the Community Development Block Grant (CDBG) program. Section 108 provides communities with a source of financing for economic development, housing rehabilitation, public facilities, and large-scale physical development projects. This makes it one of the most potent and important public investment tools that HUD offers to local governments. It allows them to transform a small portion of their CDBG funds into federally guaranteed loans large enough to pursue larger renewal projects. Local governments borrowing funds guaranteed by Section 108 must pledge their current and future CDBG allocations to cover the loan amount as security for the loan. Loan commitments are often paired with Economic Development Initiative (EDI) or Brownfield Economic Development Initiative (BEDI) grants, which can be used to pay predevelopment costs of a Section 108-funded project. They can also be used as a loan loss reserve (in lieu of CDBG funds), to write-down interest rates, or t o establish a debt service reserve. Eligible applicants include non­ entitlement communities that are assisted in the submission of applications by the state. D O Ñ A A N A C O U N T Y AFFORDABLE HOUSING PLAN The Federal Home Loan Banks' Affordable Housing Program (AHP) is funded with 10% of the Federal Home Loan Banks' net Income each year. The AHP allows for funds to be used in combination with other programs and funding sources, like the Low-Income Housing Tax Credit. These projects serve a wide range of neighborhood needs: many are designed for seniors, the disabled, homeless families, first-time homeowners and others with limited resources. More than 776,000 housing units have been built using AHP funds, including 475,000 units for very low-income households. The Federal Home Loan Bank System is the largest single funding provider to Habitat for Humanity. The HUD Self-Help Homeownership Program (SHOP) is a competitive grant program to national and regional nonprofit organizations and consortia that have experience in providing or facilitating self-help housing opportunities. Grants are to be used by the grantee or its affiliates for eligible expenses in connection with developing non-luxury housing for low-income families and persons who otherwise would be unable to purchase a house. Eligible expenses are limited to land acquisition (including financing and closing costs), infrastructure improvements (installing, extending, constructing, rehabilitating, or otherwise improving utilities and other infrastructure), and administrative costs (up to 20 percent of the grant amount). Homebuyers must contribute a significant amount of sweat equity toward the construction of their homes. The Enterprise Community Loan Fund offers flexible, innovative loan products to help make it possible for developers and nonprofit organizations to create sustainable, affordable housing and community facilities. Loan products include predevelopment loans; building or land acquisition loans, predevelopment costs and critical repairs; mini-permanent loans for the operating buildings, predevelopment costs and critical repairs; and construction and bridge loans. Other Enterprise Programs - Enterprise offers a variety of financing for housing project that meet specific objectives, including green development, transit oriented development, supportive housing, and others. Products include LIHTC and New Markets Tax Credit Equity, multifamily mortgage finance, predevelopment and acquisition loans and technical assistance. Enterprise often works through local partner organizations to accomplish their goals. Enterprise's Santa Fe office is a resource in New Mexico. USDA Rural Housing Site Loans are made to provide financing for the purchase and development of housing sites for low- and moderate-income families. Resources for Rehabilitation and Homeowner Support The New Mexico Energy$mart Weatherization Assistance program is administered through the New Mexico Mortgage Finance Authority. Federal, state and utility funds are used for the program. Weatherization services are performed by four non-profit providers located throughout the state. Households with incomes at or below 150 percent of the national poverty level are eligible for the program. Southwestern Regional Housing and CDC in Deming provides Energy$mart weatherization services in southern New Mexico. SRHCDC has an office in Las Cruces. MFA HOME Investment Partnership Program provides assistance to low-income homeowners who lack the resources to make necessary repairs to their homes. Assistance can be used for reimbursement of costs for rehabilitation, which includes the following: applicable codes, standards or ordinances, rehabilitation standards, essential improvements, energy-related improvements, lead-based paint hazard reduction, accessibility for disabled persons, repair or replacement of major housing systems, DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN S. /Cj incipient repairs and general property improvements of a non-luxury nature, site improvements and utility connections. MFA relies on nonprofits, housing authorities, and local governments to administer the homeowner rehabilitation program. Funds are awarded through a competitive RFP process. The Tierra del Sol Flousing Corporation is a rehab sub-grantee that currently administers owner-occupied HOME Rehabilitation program for Doña Ana County. HUD - Rehabilitation Mortgage Insurance (Section 203(k)). Section 203(k) insurance enables homebuyers and homeowners to finance the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home. The program insures a single, long term, fixed or adjustable rate loan that covers both the acquisition and rehabilitation of a property. The home must be at least a year old, requiring rehabilitation of at least $5,000, but the total value of the property must still fall within the FHA mortgage limit for the area. Eligible repairs may range from relatively minor to virtual reconstruction: a home that has been demolished or will be razed as part of rehabilitation is eligible, for example, provided that the existing foundation system remains in place. HUD requires that properties financed under this program meet certain basic energy efficiency and structural standards. USDA Rural Repair and Rehabilitation Loan and Grant Program provides loans and grants to very low- income homeowners to repair, improve, or modernize their dwellings or to remove health and safety hazards. Rural Housing Repair and Rehabilitation Grants are funded directly by the Government. Grants are available for homeowners who are 62 or older and cannot repay a loan. Funds may only be used for repairs or improvements to remove health and safety hazards, or to complete repairs to make the dwelling accessible for household members with disabilities. Loans of up to $20,000 and grants of up to $7,500 are available. The interest on loans is 1%. Loans and grants can be combined. USDA Housing Preservation Grants Program provides grants to sponsoring organizations for the repair or rehabilitation of low- and very low-income housing. Other Programs HUD 255 Home Equity Conversion Mortgage Program (HECM) - Reverse mortgages are increasing in popularity with seniors (homeowners 62 or holder) who have equity in their homes and want to supplement their income. The only reverse mortgage insured by the U.S. Federal Government is called a Home Equity Conversion Mortgage or HECM, and Is only available through an FHA approved lender. The HECM enables seniors to withdraw some of the equity in their home as a fixed monthly amount or a line of credit or a combination of both. The HECM can be used to purchase a primary residence if the owner is able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property being purchased. The property owner must own the property outright or have paid down a considerable amount, occupy the property as a principal residence, not be delinquent on any federal debt and participate in a consumer information session given by a HUD-approved counselor. Single family homes, 2-4 unit homes with one unit occupied by the borrower, and manufactured homes that meet FHA requirements are eligible property types. DOÑA ANA COUNTY AFFORDABLE HOUSING PLAN s. no DONA ANA COUNTY, NM Instrument#: 1524776 Filed: 11/18/2015 11:16:02 AM Page: 1 of 23 RE-RECORDED TO ADD RESOUTION NO. ON PAGE 1 AND ORDINANCE NO. ON PAGE 7 ORDINANCE NO. 2 8 0 - 2015 AN O R D IN A N C E E S T A B L IS H IN G AN A F F O R D A B L E H O U S IN G P R O G R A M P U R S U A N T T O T H E A F F O R D A B L E H O U S IN G A C T ; D E F IN IN G T E R M S ; E S T A B L IS H IN G A P P L IC A T IO N R E Q U IR E M E N T S AN D R E V IE W C R IT E R IA ; AND E S T A B L IS H IN G P R O C E D U R E S T O A D M IN IS T E R AN A F F O R D A B L E H O U S IN G P R O G R A M W H E R E A S, Doña Ana County, New Mexico (the "County") is a unit of local government under the laws of'the State ofNew Mexico (the "State"); and W H E R E A S, Doña Ana County, New Mexico (the "County") affordable housing represents a critical component to enhance the quality of life of County residents; and W H E R E A S, the Board of County Commissioners of Doña Ana County commits to exploring a range of options to promote affordable housing in Doña Ana County; and W H E R E A S, under an exception to the "anti-donation" clause as set forth in Article IX. §14 of the New Mexico Constitution, the County is not prohibited from: A. Donating or otherwise providing or paying a portion of the costs of land for the construction on it o f affordable housing ; B. Donating or otherwise providing or paying a portion of the costs of construction or renovation of affordable housing, or the costs of conversion or renovation of buildings into affordable housing ; C. Providing or paying the costs of financing or infrastructure necessary to support affordable housing projects; or D. Donating or otherwise paying a portion of the costs of acquisition, development, construction, financing and operating or owning affordable housing; and W H E R E A S, the Affordable Housing Act. NMSA 1978 § 6-27-1 e f s e t / (the "Act") implements the provisions of Subsections FI and F of Section 14 of Article 9 of the New Mexico Constitution; and W H E R E A S, the County Commission ("Commission"), the governing body of Doña Ana County, desires to implement an affordable housing program for lhe County: and . 2015-64 W H E R E A S, the Commission has adopted an Affordable 1lousing Plan (Resolution____) pursuant to the Act and the New' Mexico Mortgage Finance Authority Affordable I lousing Rules (“Rules”); and W H E R E A S, this Ordinance has been drafted in accordance with the Affordable Housing Plan; and W H E R E A S, the New Mexico Mortgage Finance Authority (MFA) has reviewed and approved the Plan and the form and terms of this Ordinance prior to final adoption hereof; N O W T H E R E F O R E , the governing body of Doña Ana County, State of New Mexico hereby adopts the following ordinance: DONA ANA COUNTY, NM 11/18/2015 11:16:02 AM Instrument #: 1524776 P age:2of23 Section 1. S H O R T T IT L E . This article may be cited as the "Affordable Housing Ordinance." Section 2. PU R PO SE. This ordinance is adopted to implement the Doña Ana County Affordable I lousing Plan. In accordance with the N.M. Constitution, Article IX, § 14. the Affordable Housing AcL, NMSA 1978, §6-27-1 e t s e t / (the "Act"), NMMFA Rules, the purpose of the Affordable Housing Ordinance is to: A Establish procedures to ensure that Stale and local housing assistance grantees arc Qualifying Grantees v*ho meet the requirements of the Act and the Rules promulgated pursuant to the Act both at the time of the award and throughout the term of any grant or loan under the Program; B. Establish an application and award timetable for State housing assistance grants or loans to permit the selection of the Qualifying Grantcc(s) by Doña Ana County. C. Create an evaluation process to determine in conjunction with the MFA: 1. The financial and management stability of the Applicant; 2. The demonstrated commitment of the Applicant to the community: 3. A cost-benefit analysis of the project proposed by the Applicant; 4. The benefits to the community of a proposed project; 5. The type or amount of assistance to be provided; 6. The scope of the Affordable Housing Project; 7. Any substantive or matching contribution by the Applicant to the proposed project; 8. A performance schedule for the Qualifying Grantee with performance criteria: and 9. Any other rules or procedures the County believes are necessary lor a full review and evaluation of the Applicant and the Application or which the MFA believes is necessary for a full review of the County’s evaluation of the Applicant; D. Require long-term affordability of Doña Ana County’s Affordable Housing Projects so that a project cannot be sold shortly after completion and taken out of the affordable housing market: E. Require that a grant or loan lor a project must impose a contractual obligation on the Qualifying Grantee that the affordable bousing units in any project be occupied by persons of low or moderate income as defined in this Ordinance: F. Provide for adequate security against the loss of public funds or property in the event that the Qualifying Grantee abandons or otherwise fails to complete the project; G. Require review and approval of a housing grant project budget by the County and/or the MFA before any expenditure of grant funds or transfer of granted property; DONA ANA COUNTY, NM 11/18/2015 11:16:02 AM Instrument#: 1524776 Page: 3 of 23 11. Require that a condition of grant or loan approval be proof of compliance with all applicable Stale and local laws, rules and ordinances; I. Provide definitions for “low-income” and “moderate-income" and set out requirements for verification of income levels; and J. Require that the County enter into a contract with the Qualifying Grantee consistent with the Act, which contract shall include remedies and default provisions in the event of the unsatisfactory performance by the Qualifying Grantee and which contract shall be subject to the review of the MFA in its discretion; Section 3. D E FIN IT IO N S. The following words and terms shall have the following meanings. A, "Act" shall mean the Affordable Housing Act, NMSA 1978, §6-27-1 et seq. Í3 "Affordability Period" shall mean: 1. If the fair market value of any Housing Assistance Grant or the total amount of Affordable Housing Funds that have been awarded, loaned, donated, or otherwise conveyed to the Qualifying Grantee is from one dollar ($1.00) to fourteen thousand nine hundred ninety nine dollars and ninety nine cents ($14,999.99), then the Affordability Period shall be not less than five (5) years. 2. If the fair market value of any Housing Assistance Grant or the total amount of Affordable Housing Funds is from fifteen thousand dollars ($16.000.00) up lo and including forty thousand dollars ($40,000.00), then the Affordability Period sha 11 be not less than ten (10) years. 3. If the fair market value of any Housing Assistance Grant or the total amount of Affordable Housing Funds is from forty thousand dollars ($40,000.00) up to and including one hundred thousand dollars (5100,000.00), then the Affordability Period shall be not less than fifteen (15) years. 4. If the fair market value of any Housing Assistance Grant or the total amount of Affordable Housing Funds is greater than one hundred thousand dollars ($100,000.00), then the Affordability Period shall be not less than twenty (20) years. C.\ "Affordable" shall mean consistent with minimum rent and/or income limitations set forth in the MFA Act and in guidelines established by MFA. 1) "Affordable 1lousing" means residential housing primarily for persons or households of low or moderate income. H. "Affordable I lousing Funds" shall mean any or all funds awarded or to be awarded, loaned or otherwise distributed under the Act. F. "Affordable I lousing Plan" or "Plan" shall mean a plan pursuant to detailed research and analysis of the community and housing profile, including a review of land use and policy regar ding land DONA ANA COUNTY, NM 11/18/2015 11:16:02 AM Instrument #: 1524776 use, which produces a housing needs assessment for low and moderate income households in that locality G. "Affordable Housing Program" or "Program" shall mean any programs the County establishes pursuant to the Act and based on the findings of the approved Doña Ana County Affordable Housing Plan. H. "Affordable Housing Project" or "Project" shall mean any work or undertaking, whether new construction, acquisition o('existing Residential Housing, remodeling, improvement, rehabilitation or conversion, which may be developed in one or more phases, as approved by the County and/or the MFA for the primary purposes as allowed by the Act and In compliance with the ll ladings of the Doña Ana County Affordable Housing Plan. I. “Applicant" shall mean an individual, a governmental housing agency, regional housing authority, a for-profit organization, including a corporation, limited liability company; partnership, joint venture, syndicate, or association or a non-profit organization meeting the appropriate criteria set by the County and/or the MPA. J “Application" shall mean an application to participate in one or more Affordable Housing Projects or Programs under the Act submitted by an Applicant to the County. K. "Builder" shall mean an individual or entity licensed as a general contractor to construct Residential Housing in the State that satisfies the requirements of a Qualifying Grantee and has been approved by the County and/or the MP A to participate in an Affordable l lousing Program. The term "Builder" shall also include an individual or entity that satisfies the requirements of a Qualifying Grantee and has been approved by the County and/or the MPA to participate in an Affordable Housing Program, who is not licensed as a general contractor in the Stale, provided such individual or entity contracts with a general contractor licensed in the State to construct Residential Housing. L. "Building" shall mean a structure capable of being renovated or converted into Affordable Housing or a structure that is to be demolished and is located on land donated for use in connection with an Affordahle Housing Project. M. "Congregate Housing Facility" shall mean Residential Housing designed for occupancy by more than four Persons of Low or Moderate Income living independently of each other. The facility may contain group dining, recreational, health care or other communal living facilities and each unit in a Congregate I lousing Facility shall contain at least its own living, sleeping, and bathing facilities. N. "County" shall mean Doña Ana County, New Mexico, a unit of local government under the Constitution and laws of the State of New Mexico. O. "Federal Government" shall mean the United States of America and any agency or instrumentality, corporate or otherwise, of the United Stales of America. P. "I lousehold" shall mean one or more persons occupying a housing unit. Q "Housing Assistance Grant" means (he donation, provision or payment by the County of: I. Land upon which affordable housing will be constructed; P a g e :4 o f2 3 DONA ANA COUNTY, NM 2. 11/18/2015 11:16:02 AM Instrum ent#: 1524776 Page: 5 of 23 An existing Building that will be renovated, converted or demolished and reconstructed as as Affordable Housing; or 3. The costs acquisition, development, construction, financing, and operating or owning affordable housing; or 4. The costs of financing or infrastructure necessary to support Affordable Housing. R. "HUD" shall mean the United States Department of Housing and Urban Development. S "Infrastructure" shall mean Infrastructure Improvements and Infrastructure Purposes T. "Infrastructure Improvement" includes, but is not limited to: l Sanitary sewage systems, including collection, transport, storage, treatment, dispersal, effluent use and discharge; 2. Drainage and flood control systems, including collection, transport, diversion, storage, detention, retention, dispersal, use and discharge; 3. Water systems for domestic purposes, including production, collection, storage, treatment, transport, delivery, connection and dispersal; 4. Areas lor motor vehicle use for road access, ingress, egress and parking; 5. Trails and areas for pedestrian, equestrian, bicycle or other non-motor vehicle use for access, ingress, egress and parking; 6. Parks, recreational facilities and open space areas for the use of residents for entertainment, assembly and recreation; 7. Landscaping, including earthworks, structures, plants, trees and related water delivery systems; 8. Electrical transmission and distribution facilities: 9. Natural gas distribution facilities; 10. Lighting systems; 11. Cable or other telecommunications lines and related equipment; 12. Trafile control systems and devices, including signals, controls, markings and signs: 13. Inspection, construction management and related costs in connection with the furnishing of the items listed in this subsection; and 14. Heating, air conditioning and weatherization facilities, systems or services, and energy efficiency improvements that are affixed to real property U. "Infrastructure Purpose" shall mean: I Planning, design, engineering, construction, acquisition or installation of'lnlrastructure. including the costs ol'applications, impact fees and other fees, permits and approvals related to the construction, acquisition or installation of the Infrastructure, provided the County may DONA ANA COUNTY, NM 11/18/2015 11:16:02 AM Instrument#: 1524776 Page: 6 of 23 delcnninc it appropriate to reduce or waive building permit fees, sewer and water hook-up fees and other fees with respect to an Affordable Housing Project for which Affordable Housing Funds and/or Housing Assistance Grants are awarded, loaned, donated or otherwise distributed under the Act; 2. Acquiring, converting, renovating or improving existing facilities for Infrastructure, including facilities owned, leased or installed by the owner; 3. Acquiring interests in real property or water rights for infrastructure, including interests of the owner; and 4. Incurring expenses incident to and reasonably necessary to carry out the purposes specified in this subsection. V. "MFA" shall mean the New Mexico Mortgage Finance Authority. W. "MFA Act" shall mean the Mortgage Finance Authority Act. enacted as Chapter 303 of the Laws of 1975 of the State ofNew Mexico, as amended (being Sections 58-18-1 through 58-18-27, inclusive, N.M.S.A (1978), as amended). X. "Mortgage" shall mean a mortgage, mortgage deed, deed of trust or other instrument creating a lien, subject only to title exceptions as may be acceptable to the County and/or the MFA, on a fee interest in real property located within the State or on a leasehold interest that has a remaining term at the lime of computation that exceeds or is renewable at the option of the lessee until after the maturity day of the Mortgage Loan. Y. "Mortgage Lender" shall mean any bank or trust company, mortgage company, mortgage banker, national banking association, savings bank, savings and loan association, credit union, building and loan association and any other lending institution; provided that the mortgage lender maintains an office in the State, is authorized to make mortgage loans in the State and is approved by the County and/or the MFA and either the Federal Flousing Authority, Veterans' Affairs, Federal National Mortgage Association (now known as Fannie Mac), or Federal Home Loan Mortgage Corporation. X. "Mortgage Loan" shall mean a financial obligation secured by a Mortgage, including a Mortgage Loan for a Project. AA. "Multiple Family Housing Project" shall mean Residential 1lousing that is designed lor occupancy by more than four persons or families living independently of each other or living in a Congregate 1lousing Facility, at least sixty percent (60%) of whom are Persons of Low or Moderate Income, including without limitation Persons of Low or Moderate Income who are elderly and handicapped as determined by the County and/or the MFA, provided that the percentage of low-income persons and families shall be at least the minimum, if any. required by federal tax law. BB, CC. "Multi-Family Housing Program" shall mean a program involving a Congregate I lousing Facility, a Multiple Family I lousing Project ora Transitional Housing Facility "Persons of Low or Moderate Income" shall mean persons and families who arc DONA ANA COUNTY, NM 11/18/2015 11:16:02 AM Instrument #: 1524776 P ag e:7o f23 determined to lack sufficient income to pay enough to cause private enterprise to build an adequate supply of decent, safe and sanitary residential housing in the County and whose incomes are below the income levels established by the MFA and the Plan to be in need of the assistance made available by the Act, taking into consideration, without limitation, such factors as defined under the Act. for purposes of this definition, the word "families" shall mean a group of persons consisting of, but not limited to, the head of a household; his or her spouse, if any; and children, if any, who are allowable as personal exemptions for federal income tax purposes. In accordance with the Plan, persons of low and moderate income who are eligible for assistance in accordance with the plan are as follows: l Persons of low income shall mean persons in households with annual gross incomes below 60% of Area Median Income for Doña Ana County as approved and published each year by MFA and verified by the County, 2. Persons of Moderate Income shall mean persons in households with annual gross incomes between 60% and 80% of Area Median Income for Doña Ana County as approved and published each year by MFA and verified by the County. 3. For purposes of this definition, “annual gross income’1 shall mean the annual anticipated income from assets, regular cash or noncash contributions, and any other resources and benefits determined to be income by 1IUD. as defined in 24 CFR Section 5.609. "Ordinance" shall mean this Ordinance (No 2 8 0 -2 0 1 5 )■ DD. EE. "Policies and Procedures” shall mean Policies and Procedures of the MFA, including but not limited to. Mortgage Loan purchasing, selling, servicing and reservation procedures, which the MFA may update and revise from time to time as the MFA deems appropriate. FF. "Public Service Agencies” shall include, but are not limited to, any entities that support Affordable 1lousing and which believe that the program or project proposed by the Applicant is worthy and advisable, but which are not involved, either directly or indirectly, in the Affordable Housing Program or Project for which the Applicant is applying. GG. "Qualifying Grantee" means: 1. An individual who Is qualified to receive assistance pursuant to the Act and is approved by the County; and 2. A governmental housing agency, regional housing authority, corporation, a limited liability company, partnership, joint venture, syndicate, association o ra non-profit organization that: a) 1$ organized under State or local laws and can provide proof of such organization; b) If a non-profit organization, has no part of its net earnings inuring to the benefit of any member, founder, contributor, or individual; and c) Is approved by the County. DONA ANA COUNTY, NM 11/18/2015 11:16:02 AM Instrum ent#: 1524776 Page: 8 of 23 HI I. "Recertification" shall mean the recertification of Applicants and/or Qualifying Grantees participating in any Affordable Housing Programs or in any programs under the Act as determined necessary from time to time by the County and/or the MPA II. II. "Rehabilitation" shall mean the substantial renovation or reconstruction of an existing single-family residence or a Multi-family Housing Project, which complies with requirements established by the MFA. Rehabilitation shall not include routine or ordinary repairs, improvements or maintenance, such as interior decorating, remodeling or exterior painting, except in conjunction with other substantial renovation or reconstruction. JJ. "Residential Housing” shall mean any Building, structure or portion thereof that is primarily occupied, or designed or intended primarily for occupancy, as a residence by one or more I Iouseholds and any real property that is offered for sale or lease for the construction or location thereon of such a building, structure or portion thereof. "Residential Housing" includes congregate housing, manufactured homes and housing intended to provide or providing transitional or temporary housing for homeless persons. K.K. LL. "Residential Use” shall mean that the structure or the portion of the structure to benefit from the Affordable Housing Funds or Mousing Assistance Grant is designed primarily for use as the principal residence of the occupant or occupants and shall exclude vacation or recreational homes. "RFP" shall mean any request for proposals made by the County. MM, "Rules” shall mean the New Mexico Mortgage Finance Authority Affordable Housing Rules adopted pursuant to Section 6-27-H(B) NMSA 1978. NN. OO. "State" shall mean the State of New Mexico. 'Transitional Housing Facility" shall mean residential housing that is designed for temporary or transitional occupancy by Persons of Low or Moderate Income or special needs. Section 4. G E N E R A L R E Q U IR E M EN TS. The follow ing requirements shall apply to all Housing Assistance Grants and/or Affordable Housing Funds awarded, loaned or otherwise distributed by the County under the Act to a Qualifying Grantee. A. Request for Proposals. The County, in its discretion, may issue one or more RFPs to solicit applications from Applicants or shall otherwise identify a Qualifying Grantee for the use of any Affordable I lousing Funds or Housing Assistance Grants to be awarded, loaned, donated or otherwise distributed under the Act. B. Applicant Eligibility The following Applicants are eligible under the Act to apply for Affordable I lousing Funds or a Housing Assistance Grant to provide housing or related services to Persons of Low or Moderate Income in the community: (i) All individuals who are qualified to receive assistance pursuant to the Act, the Rules, and this Ordinance that are approved by the County; tii) All regional housing authorities and any governmental housing agencies: (iii) All for-profit organizations, including any corporation, limited liability company, DONA ANA COUNTY, NM 11/18/2015 11:16:02 AM Instrument #: 1524776 P age:9of23 partnership, joint venture, syndicate or association, (iv) All non-profit organizations meeting the following requirements: (a) A primary mission of the non-profit organization must be to provide housing or housing-related services to Persons of Low or Moderate Income; and (b) The non-profit organization must have received its 501(c)(3) designation prior to submitting an Application: (c) Have no part of its net earnings inuring to the benefit of any member, founder, contributor, or individual; (v) All non-individual Applicants must: (a) Be organized under State or local laws and can provide proof of such organization and be approved by the County; (b) Have a functioning accounting system that is operated in accordance with generally accepted accounting principles or has designated an entity that will maintain such an accounting system consistent with generally accepted accounting principles; (e) Have among its purposes significant activities related to providing housing or services to Persons or Households of Low or Moderate Income; and (d) Have no significant outstanding or unresolved monitoring findings from the County, the MFA, or its most recent independent financial audit, or if it has any such findings, it has a certified letter from the County, the MFA, or auditor stating that the findings are in the process of being resolved. C. Applications. (i) Process for Applying. Applicants wishing to apply for a 1lousing Assistance Grant, including the use of any Affordable I lousing Funds, or to participate in any Affordable Housing Program are required to submit to the County the following (as applicable): (a) One original Application together with all required schedules, documents, or such other information which may be required by the County or in any KFP which may have been issued by the County; (b) A proposal describing the nature and scope of the Affordable I lousing Project proposed by the Applicant and for which the Applicant is applying for funds or a grant under the Act. and which documents the need for the requested funds or grant, describes the type and/or amount of assistance which the Applicant proposes to provide to Persons of Low or Moderate Income and documents the consistency of the proposal with the County's Affordable Housing Plan: (c) Executive summary and project narrative(s) that address the evaluation criteria set forth in an\ KFP issued by the Count) for die Affordable Housing Funds or the I lousing Assistance Grant lor which the Applicant is applying; 11/18/2015 11:16:02 AM Instrument#: 1524776 (cl) A proposed budget (or the Affordable I lousing Project for which the Applicant is applying for Affordable Housing Funds or for a Housing Assistance Grant; (e) Current independent financial audit; (I) If the Applicant is a non-profit organization: (i) Proof of 501(c)(3) tax .status; (ii) Documentation that confirms that no part of its net earnings inures to the benefit of any member, founder, contributor or individual; (g) II'an Applicant is a legal entity, including a non-profit organization: (i) A current annual budget for the Applicant, including all sources and uses of funds not just those related to relevant programs and/or a curren! annual budget only for the program tor which the Applicant is applying for a Housing Assistance Grant, or as otherwise may be required by the County and/or the MFA in its discretion; (ii) An approved mission statement that the Applicant has among its purposes significant activities related lo providing housing or housing-related services to Persons or Households of Low or Moderate Income; (iil) A list of members ofthe Applicant’s current board ofdireclors or other governing body, including designated homeless participation, where required by the County; (iv) Evidence (or a certification as may be allowed by the County) that the Applicant has a functioning accounting system that is operated in accordance with generally accepted accounting principles or has a designated entity that will maintain such an accounting system consistent with generally accepted aecounting principles; (v) Evidence that the Applicant has no significant outstanding or unresolved monitoring findings from the County, the MFA, or its most recent independent financial audit; or if it has any significant outstanding or unresolved monitoring findings from the County, the MFA or its most recent independent financial audit, it has a certified letter from the County, the MFA or the auditor stating that the findings are in the process of being resolved; (vi) An organizational chart, including job titles and qualifications for the Applicant's employees or as otherwise may be required by the County and/or the MFA in its discretion. Job descriptions may be submitted as appropriate; (vii) Documentation that the Applicant is duly organized under State or local law and certification that the Applicant is in good standing w ith any State authorities, including the Public Regulation Commission and the Secretary of DONA ANA COUNTY, NM 11/18/2015 11:16:02 AM Instrument #: 1524776 P age:11o f23 (li) Information as may be required by the County in order for it to determine the financial and management stability of the Applicant; (i) Information as may be required by the County in order lor it to determine the demonstrated commitment of the Applicant to the community: (j) A completed cost-benefit analysis of the Affordable Housing Project proposed by the Applicant. Any cost-benefit analysis must include documentation that clearly evidences that there is a need for the Housing Assistance Giant being requested from the County, that there is or will be a direct benefit from the project proposed by the Applicant to the community and/or to the purported beneficiaries of the project, consistent with the provisions of the Act, and that the Affordable I lousing Project will meet the needs and affordability criteria defined in the County’s Affordable Housing Plan: (k) Information supporting the benefits to the community of the Affordable Housing Project proposed by the Applicant; ( l) Proof of substantive or matching funds or contributions and/or in-kind donations to the proposed Affordable Housing Project in connection with the Application for funds under the Act. Nothing contained herein shall prevent or preclude an Applicant from matching or using local, private, or federal funds in connection with a specific Housing Assistance Grant or a grant of Affordable Housing Funds under the Act; (m) Any certifications or other proof which the County may require in order for the County to confirm that the Applicant is in compliance with all applicable federal, State and local laws, rules and ordinances; (n) A verification signed by the Applicant before a notary public that the information provided, upon penalty of perjury, is true and correct to the best of the Applicant's information, knowledge and belief: (o) Certifications as may be required by the County and signed by chief executive officer, board president, or other authorized official of the Applicant; (p) Applicant shall submit adequate information, as required by the County and /or MFA, of the Affordable Housing Project proposed by the Applicant. The information provided must clearly evidence the need for the subsidy, that the value of the housing assistance grant reduces the housing costs to Persons of Low or Moderate Income, and that there will be a direct benefit from the project proposed by the Applicant to the community and/or to the purported beneficiaries of the project, consistent with the provisions of the Act. (ii) Additional Requirements for Multi-Family (lousing Projects Applicants who are submitting Applications in connection with a Multi-Family Housing Program. The Applicant must also submit to the County following additional information: 11/18/2015 11:16:02 AM (a) Instrument#: 1524776 A verified certificate that, among other things: (i) Identifies every Multi-Family Housing Program, including every assisted or insured project of HUD, RI-IS, FHA and any other state or local government housing finance agency in which such Applicant has been or is a principal; (ii) States that, except as shown on such certificate: (A) No mortgage on a project listed on such certificate lias ever been in default, assigned to the Federal Government or foreclosed, nor lias any mortgage relief by the mortgagee been given; (B) There has not been a suspension or termination of payments under any HUD assistance contract in which the Applicant has had a legal or beneficial interest; (C) Such Applicant has not been suspended, debarred or otherwise restricted by any department or agency ol'lhe Federal Government or any state government front doing business with such department or agency because of misconduct or alleged misconduct; and (D) The Applicant has not defaulted on an obligation covered by a surety or performance bond. If such Applicant cannot certify to each of the above, such Applicant shall submit a signed statement to explain the facts and circumstances that such Applicant believes will explain the lack of certification. I he County may then determine if such Applicant is or is not qualified. (b) The experience of the Applicant in developing, financing and managing Multiple-Family Housing Projects; and (c) Whether the Applicant has been found by the United States Equal Employment Opportunity Commission or the New Mexico Human Rights Commission to be in noncompliance with any applicable civil rights laws. (iii) Additional Requirements for Mortgage Lenders. If the Applicant is a Mortgage Lender, the County shall consider, among other things: (a) The financial condition of the Applicant; (b) The terms and conditions of any loans to be made; (c) The aggregate principal balances of any loans to be made to each Applicant compared with the aggregate principal balances of the loans to be made to all other Applicants; (d) I lie County's assessment of the ability of the Applicant or its designated servicer to act as originator and servicer of Mortgage Loans for any Multi-Family Housing Programs or other programs to be financed: and 11/18/2015 11:16:02 AM Instrum ent#: 1524776 (e) Previous participation by the Applicant in the MFA's programs and HUD, Federal Housing Authority or Rural Housing Service programs. Submission Procedure. (a) I ¡me, Place and Method of Submission Delivery. (i) If the County has issued an RFP, all Applications must be received by the County no later than the deadline set forth in the RFP; otherwise, all Applications must be received by the County by the deadline the County has established in connection with the respective award or grant. So that any Qualifying Grantees may be selected prior to January of the year in which any Housing Assistance Grant would be made, the County shall issue any RFP's, solicit any Applications, or otherwise identify any Qualifying Grantees no later than October 15 of any year in order to allow sufficient time for prospective applicants to respond to any such RFP, solicitation, or otherwise, and further to allow the MFA not less than forty-five (45) days in which to review any such Applications or otherwise determine or confirm that an Applicant is a Qualifying Grantee under the Act and consistent with the Rules. (ii) Applications shall be submitted by Applicants to the County in the form required by the County and shall contain all information which is required by this Ordinance and any RFP which may have been issued. (b) Additional Factors. The Application procedures shall take into consideration: (i) Timely completion and submission to the County of an Application or other appropriate response to any solicitation by the County; (ii) Timely submission of all other information and documentation related to the program required by the County as set forth in this Ordinance or as set forth in the Rules; (iii) Timely payment of any fees required to be paid to the County at the time of submission of the Application; and (iv) Compliance with program eligibility requirements as set forth in the Act, the Rules and this Ordinance. (c) Submission Format. (i) County forms or MFA forms (¡('available) must be used when provided and no substitutions will be accepted; however attachments may he provided as necessary. (ii) An Applicant's lailure to provide or complete any element of an Application, including all requirements of the County or as may be listed on any RFP. may result in (he rejection of the Application prior lo review. (iii) Illegible information, information inconsistent with other information 11/18/2015 11:16:02 AM Instrum ent#: 1524776 provided in the application, and/or incomplete forms will be treated as missing information and evaluated accordingly. (iv) Doña Ana County and the MFA reserve the right to request further information front any Applicant so long as the request is done fairly and does not provide any Applicant an undue advantage over another Applicant. (v) The County in its discretion may cancel any RI-'P or reject any or all proposals in whole or part submitted by any Applicant. (vi) Neither the County nor the MFA shall be responsible for any expenses incurred by an Applicant in preparing and submitting an Application. However, the County or the MFA, as applicable, may establish and collect fees from Applicants who file Applications. Notice that fees will be charged and the amount of any such fees shall be included by the County or the MFA, as applicable, in any RFP or otherwise shall be advertised as part of the Application solicitation process. Review by the County. On receipt of an Application, the County shall: (a) Determine whether the Application submitted by the Applicant is complete and responsive; (b) Determine whether the Applicant is a Qualifying Grantee as defined herein and in the Act; (c) Review and analyze whether the Applicant has shown a demonstrated need for activities to promote and provide affordable housing and related services to Persons of I ow or Moderate Income and that the proposal is consistent with the County's adopted Affordable blousing Plan; (d) Determine whether the Applicant has demonstrated experience related to providing housing or services to Persons ot'f.ovv or Moderate Income; as well as experience and/or the capacity ofthe Applicant to administer the Affordable Housing Program or Project for which the Applicant has applied; (e) Determine whether the Applicant’s proposal provides a plan for coordinating with other service providers in the community; whether the Applicant's plan addresses how Persons of Low Income or Moderate Income in need of housing and/or housing related supportive services can receive supportive services and referrals to federal, State and local resources; and, whether the Applicant’s plan addresses outreach efforts to reach the population to be served as identified by Lhe County in any RFP, in the Affordable Housing Plan or otherwise; (0 Determine whether the Applicant has support from Public Service Agencies, or such other support as may be required by the County and/or the MFA in its discretion, lor its proposed services in the coinmunit); (g) Ascertain the amount of any matching funds or in-kind services specific to the 11/18/2015 11:16:02 AM Instrument#: 1524776 Page: 15 of 23 program lhal may be utilized by the Applicant in connection with the program; (h) Ascertain whether any local, private, or federal funds will be used by the Applicant in connection with the specific grant for which the Applicant is applying; (i) Ascertain whether the Applicant lias and can demonstrate the capability to manage the implementation of the Program for which the Applicant is applying; G) If Applicant is a prior recipient of either a Housing Assistance Grant, Affordable Housing Funds and/or other Program funds, confirm that the Applicant had no outstanding findings or matters of non-compliance with program requirements from the County or the MFA, as applicable or if it has any such findings, ¡I has a certified letter from the County, the MFA, or auditor staling that the findings are in the process of being resolved; (k) If Applicant is a prior recipient of'eithcr a Housing Assistance Grant, Affordable Housing Funds and/or other Program funds, confirm that the Applicant reasonably committed and expended the funds under the prior Program and/or met anticipated production levels as set forth in any contract with the County or the Ml-’A, as applicable, for those prior Program funds; ( l) Evaluate the Applicants proposal in part based upon the Applicant’s current financia] audit; (m) Hvaluate the Applicant's proposed budget for the Project for which the Applicant is applying for Affordable Housing Funds or a Housing Assistance Grant which proposed budget must be approved by the County before the Applicant can be approved as a Qualifying Grantee and any expenditure of grant funds under the Act or granted property is transferred to the Applicant; (n) On receipt of an Application from a Builder, the County will analyze the Builder’s ability to construct and sell sufficient Residential Housing units to Persons of How or Moderate Income within the time or times as may be required by the County. (o) Consider other factors it deems appropriate to ensure a reasonable geographic allocation for all Affordable I lousing Programs. Certification by the County to the MFA, The County shall certify an Application to the t writing upon: (a) Completion of its review of the Application; (b) Determination that the Application is complete; (c) Determination that the requirements of the Act, the Rules and this Ordinance have been satisfied; and (d) Determination that the Applicant is a Qualifying Grantee. Review by the MFA. The MFA upon its receipt oTthe certification from the County its discretion, review the Application and any of the materials submitted by the DONA ANA COUNTY, NM 11/18/2015 11:16:02 AM Instrum ent#: 1524776 P ag e :1 6 o f2 3 Applicant to the County. The MFA may also request any additional information from the Applicant, which it may require in order to determine whether the Applicant is a Qualifying Grantee under the Act and the Application is complete. The MFA will then notify the County of its determination of whether or not the Application is complete and that the requirements of the Act and the Rules have been satisfied and the Applicant is a Qualifying Grantee. Unless the period is extended for good cause shown, the MFA shall act on an Application within forty-five (45) days of its receipt of any Application, which the MFA deems to be complete, and, if not acted upon, the Application shall be deemed to be approved. (viii) Notification of Acceptance. The County, upon completion of its review of the Application and an evaluation of the criteria for approval of the Application as set forth in the this Ordinance and in any RFP issued by the County and upon its determination that the Applicant is a Qualifying Grantee, and upon its receipt of notification from the MFA that it agrees that the Application is complete and that the Act and Rules have been satisfied and the Applicant is a Qualifying Grantee, by written notice, shall notify each Applicant which has submitted an Application of the approval or disapproval of its Application. Upon approval of its Application, the Applicant shall be considered approved to participate in the Affordable Housing Program. The County’s and the MFA's determination of any Application shall be conclusive. I). Additional Requirements. Upon acceptance, the following additional requirements shall apply to any Applicant who is a Qualifying Grantee: (i) Contractual Requirements. The Qualifying Grantee shall enter into one or more contracts with the County, which contract(s) shall be consistent with the Act and subject to the review of the MFA, in its discretion, and which conlract(s) shall include remedies and default provisions in the event of the unsatisfactory performance by the Qualifying Grantee. (ii) Security Provisions; Collateral Requirements. In accordance with the Act, (he Rules and this Ordinance, the County shall require the Qualifying Grantee to execute documents, which will provide adequate security against the loss of public funds or property in the event the Qualifying Grantee abandons or fails to complete the Affordable I lousing Project, and which shall further provide, as may be permitted by law, for the recovery of any attorneys' fees and costs which the County and/or the MFA may incur in enforcing the provisions of this Ordinance, the Rules, the Act and/or any agreement entered into by the County and the Qualifying Grantee, and which documents may include, but arc not limited to the following: note, mortgage, loan agreement, land use restriction agreement, restrictive covenant agreements and/or any other agreement which the County may require in order to allow for any funds which the Qualifying Grantee may receive under a l lousing Assistance Grant or Affordable Housing Funds to be adequately secured and to allow the County and the MFA to ensure that such funds shall be used by the Qualifying Grantee in accordance with the Act, the Rules and this Ordinance. (iii) Performance Schedule and Criteria. The Qualifying Grantee shall he required to abide by a reasonable performance schedule and performance criteria that the County, in its DONA ANA COUNTY, NM 11/18/2015 11:16:02 AM Instrument #: 1524776 P age:17of23 discretion, may establish. (iv) Examination of Books and Records. The Qualifying Grantee shall submit to and the County shall cause to be made such examinations of the books and records of each Qualifying Grantee as the County and/or the MFA deems necessary or appropriate to determine the Qualifying Grantee's compliance with the terms of the Act, the Rules, this Ordinance and any contracts between the Qualifying Grantee and the County. The County and/or the MFA may require each Qualifying Grantee to pay the costs of any such examination. (v) Infrastructure Cost Reimbursement Contracts. (a) Cost Reimbursements. Payment to a Qualifying Grantee under cost reimbursable contract provisions shall be made upon the County's receipt from the Qualifying Grantee of certified and documented invoices for actual expenditures allowable under the terms of any agreement between the Qualifying Grantee and the County. (b) Cost Reimbursements For Units of Service. Payment under any unit cost contract provisions shall be made upon the County’s receipt from the Qualifying (irantee of a certified and documented invoice showing the number of units of service provided during the billing period. (e) Rate at which Costs Incurred. Under unit cost or cost reimbursable contracts, it is anticipated that costs will be incurred by the Qualifying Grantee atan approximate level rate during the term of any agreement between the Qualifying Grantee and the County. If The County determines that the Qualifying Grantee is underspending or overspending, then the County may reduce the budget and/or exercise such other budgetary fiscal controls it deems appropriate. (d) Invoices. Qualifying Grantees shall not submit invoices more than once a month, unless written approval is obtained in advance from the County. Failure to submit invoices within twenty (20) calendar days of the close of the month for which payment is sought may result in the non-availability of funds for reimbursement, (e) No Dual Application of Costs. The Qualifying Grantee shall certify that any direct or indirect costs claimed by the Qualifying Grantee will not be allocable to or included as a cost of any other program, project) contract, or activity operated by the Qualifying Grantee and which has not been approved by the County in advance, in writing. (f) Prohibition of Substitution of Funds. Any Affordable Housing Funds or other amounts received by Qualifying Grantee may not be used by Qualifying Grantee to replace other amounts made available or designated by the State or local governments through appropriations for use for the purposes of the Act. (g) Cost Allocation. The Qualifying Grantee shall clearly identify and distribute all costs incurred pertaining to the Affordable Housing Project by a methodology and cost allocation plan at times and in a manner prescribed by, or acceptable to the County. DONA ANA COUNTY, NM 11/18/2015 11:16:02 AM Instrument #: 1524776 P a g e :1 8 o f2 3 (vi) Additional Information. Qualifying Grantees shall provide the County with any and all information which the County may reasonably require in order for it to confirm that the Qualifying Grantees continue to satisfy the requirements of the Act, the Rules and this Ordinance throughout the term of any contract and/or any Affordability Period or otherwise as may be required by the County or the MFA in its discretion. At a minimum, on an annual basis, the Couniy shall certify to the MFA in writing that to the best of its knowledge the Qualifying Grantee is in compliance with applicable provisions of the Act. the Rules and this Ordinance. E. Affordable Housing Requirements. All Affordable Housing Funds or Housing Assistance Grants awarded under the Act are to be used by Qualifying Grantees for the benefit of Persons of Low or Moderate Income subject to the provisions of the Act and with particular regard to their housing related needs. (i) Single Family Property. Qualifying Grantees shall agree that they shall maintain any single-family property which has been acquired, rehabilitated, wealherized, converted, leased, repaired, constructed, or which property has otherwise benefited from Affordable Housing Funds, including but not limited to any loans which have been repaid with Affordable Housing Funds and which loans previously were secured by such properties, as Affordable Housing for so long as any or all of the Affordable I lousing Funds which have been awarded, loaned, or otherwise conveyed to the Qualifying Grantee are unpaid and outstanding or the Affordability Period, whichever is longer, (ii) Multi-Family Property. (a) Single Apartment within a Multi-Family Property. Qualifying Grantees shall agree that, ifany single apartments are to be rehabilitated, weatherized, converted, leased, repaired, constructed or otherwise arc to benefit from Affordable Housing Funds, those apartments shall be leased to Persons of Low or Moderate Income at the time of any such award. Qualifying Grantees, who are the landlords and/or owners of such properties, shall further agree to contribute at least sixty percent (60%) of the cost of the rehabilitation, weatherization, conversion, lease, repair, and/or construction. Qualifying Grantees also shall agree that the Persons of Low or Moderate Income, who are tenants of those apartments, shall he allowed to remain tenants for so long as there are no uncured defaults by those tenants under their respective leases and provided that there is no just cause for the landlord to terminate any lease agreement with those tenants'. (b) Multiple Apartments. Qualifying Grantees shall agree that, if multiple apartments or an entire multi-family property are to be acquired, rehabilitated, weatherized, converted, leased, repaired, constructed or otherwise are to benefit from Affordable Housing Funds, including but not limited to am loans which have been repaid with Affordable I lousing Funds and which loans previously were secured by such properties, they shall maintain not less than sixty percent (60%) of the housing units as Affordable Housing for so long as any or all of the Affordable I lousing Funds which have been awarded, loaned, or otherw ise conveyed to the Qualifying Grantee DONA ANA COUNTY, NM 11/18/2015 11:16:02 AM Instrument #: 1524776 P age:19of23 are unpaid and outstanding or the Affordability Period, whichever is longer (iii) Non-Residential Property. Qualifying Grantees shall agree that they shall maintain any lion-residential property which has been acquired, rehabilitated, weatherized. converted, leased, repaired, constructed, or which property has otherwise benefitted from Affordable Housing Funds, including but not limited to any loans which have been repaid with Affordable Housing Funds and which loans previously were secured by such properties, as a facility which provides housing related-services to Persons of Low or Moderate Income for so long as any or all of the Affordable Housing Funds which have been awarded, loaned, or otherwise conveyed to the Qualifying Grantee are unpaid and outstanding or the Affordability Period, whichever is longer. (iv) Housing Assistance Grant Affordability Requirements. Qualifying Grantees shall agree that they shall maintain any land or buildings received as a Housing Assistance Grant either as either single-family or multi-family Affordable Housing in accordance with Sections 4,E.(i) and (ii) of this Ordinance or as a facility which provides housing related-services to Persons of Low or Moderate Income in accordance with Section 4.L.(iii) of this Ordinance (as applicable) for the duration of the Affordability Period. Qualifying Grantees shall agree that they shall maintain any land or buildings for which they have received the costs of Infrastructure as a Housing Assistance Grant either as either single-family or multi-family Affordable Housing or as a facility which provides housing relalcd-services to Persons of Low or Moderate Income (as applicable) for the duration of the Affordability Period. In calculating the Affordability Period for Housing Assistance Grants of either land or buildings, the fair market value of the land or buildings or the costs of Infrastructure at the time of the donation by the County shall apply. (v) Affordability Period. The County, in its discretion, may increase the Affordability Period in any contract, note, mortgage, loan agreement, land use restriction agreement, restrictive covenant agreements and/or any other agreement which the County may enter into with any Qualifying Grantee or beneficiary of the Affordable I lousing Funds or of the Housing Assistance Grant. (Sec definition of Affordability Period in Section 3.H. of this Ordinance.) Notwithstanding the foregoing, in the discretion of the MFA, weatherization funds conveyed from the State to the MFA and/or any other similar conveyances where an Affordability Period is not practical, shall not be subject to the Affordability Period requirements of this Section 4.E.; but nevertheless, any such conveyances may be subject to recapture on some pro-rated basis as determined by the County and/or the MFA. F. Consent to Jurisdiction. Each Qualifying Grantee shall consent to the jurisdiction of the courts of the State over any proceeding to enforce compliance with the terms of the Act, the Rules and (Ills ordinance and any agreement between the Qualifying Grantee and the County and/or the MFA. G. Recertification Procedures. (i) The Qualifying Grantee must meet the requirements of the Act. the Rules and this Ordinance both at the time of any award and throughout the term of any grant and contract DONA ANA COUNTY, NM 11/18/2015 11:16:02 AM Instrum ent#: 1524776 related thcrclo. (ii) The County may establish procedures lor recertifying Qualifying Grantees from time to time. (ii) Qualifying Grantees that fail to satisfy the requirements for Recertification shall cease to be eligible and shall be denied further participation in Affordable Housing programs until the requirements of the County and the MFA are satisfied. H, Compliance with the Law. Qualifying Grantee shall provide the County with any certifications or other proof that it may require in order for the County and the MFA to confirm that the Qualifying Grantee and the Qualifying Grantee's proposed Project are in compliance with all applicable federal, State and local laws, rules and ordinances. At a minimum, on an annual basis, the Qualifying Grantee shall provide the County with certifications and proof ofcompliance, and the County shall certify to the MFA in writing that the Qualifying Grantee is still in compliance with the Act and the Rules. I. Doña Ana County Grant Requirements. (i) The County is authorized to make Housing Assistance Grants under the Act. Upon determination that the County will make a Housing Assistance Grant, including the use of any Affordable Housing Funds, the County shall provide the MFA with the following: (a) Documentation that confirms that the County has an existing valid Affordable Housing Plan; (b) Documentation that confirms that the County has an existing valid Affordable Housing Ordinance which provides for the authorization of the Housing Assistance Grant, including the use of any Affordable Housing Funds; (c) Written certification that the proposed grantee is in compliance with Act and the Rules so that the MFA may confirm that the Application is complete, and that the proposed grantee is a Qualifying Grantee under the Act and the Rules. (ii) Prior to the submission of the application and project authorization to the Commission, the Commission musl approve the budget submitted by the Applicant. (iii) An action authorizing the County to make a Housing Assistance Grant and/or distribute Affordable I lousing Funds: (a) Musi authorize the grant, including use of Affordable Housing Funds, if any; (b) Must state the requirements and purpose of the grant; (c) Musi authorize the transfer or disbursement to the Qualifying Grantee only after a budget Is submitted to and approved by the Commission; (d) Must comply with the Rules, as amended: and (e) May provide for matching or using local, private or federal funds either Lhrough direct participation with a federal agency pursuant to federal law or through indirect participation through the MFA. Page: 20 of 23 DONA ANA COUNTY, NM 11/18/2015 11:16:02 AM Instrument #: 1524776 P a g e :2 1 o f2 3 (iv) The MFA shall act to approve the proposal Housing Assistance Grant authorized by the County within forty-five (45) days of its receipt of the documentation required above in Section 4.J.(i). (ii) and (iii) of this Ordinance. (v) The County, in its discretion, may also hold any award of Affordable I lousing Funds or any Housing Assistance Grant made by the County in suspense pending the issuance by the County of any RFP or pending the award of the Affordable Housing Funds or of the Housing Assistance Grant by the County to the Qualifying Grantee without the issuance of an RFP by the County. Any award of Affordable Housing Funds or a Housing Assistance Grant by the County shall subject the Qualifying Grantee of the award or grant to the oversight of the County and the MFA under this Ordinance and the Rules. School District and Public Post-Secondary Educational Institution Donations for Housing Projects. If a school district or a public post-secondary education institution intends to transfer land Lo the County to be further granted to a Qualifying Grantee as part or all of an Affordable Housing project, this transfer shall be subject to the limitations contained in the Act that the school district and the Commission enter into a contract that provides the school district with a negotiated number of affordable housing units that will be reserved lor employees ol'llie school district. Any transfer of land by a public post-secondary cducationa! institution shall be subject lo Lite additional limitations contained in the Act that: J. (i) The property transferred shall be granted to a Qualifying tirantee by lite County as part of a grant for an Affordable Housing project; and (ii) The governing board of the public post-secondary educational institution and the Commission enter into a contract that provides the public post-secondary educational institution with Affordable Housing units As used in this section, "public post-secondary educational institution" means a state university ora public community college. The County, in its discretion, may also hold any Housing Assistance Grant made by any school district or public post-secondary' educational institution in suspense pending the issuance by (lie County of any RFP or pending the award of tire Housing Assistance Grant by the County to the Qualifying Grantee without the issuance of an RFP by the County. Any award ofa I lousing Assistance Grant by a school distiict or a public post-secondary educational institution shall subject the Qualifying Grantee of the grant to the oversight of the County and the MFA under the Rules. Section 5. D ISC R IM IN A T IO N PR O H IB IT E D . I he development, construction, occupancy and operation of an Affordable Housing Program or an Affordable Housing Project financed or assisted under the Act shall be undertaken in a manner consistent with principles of non-discrimination and equal opportunity, and the County shall require compliance by till Qualifying Grantees with all applicable federal and Slate laws and regulations relating to affirmative action, non-discrimination and equal opportunity. DONA ANA COUNTY, NM 11/18/2015 11:16:02 AM Instrum ent#: 1524776 P a g e :2 2 o f2 3 Section 6. A D M IN ISTR A TIO N . The County shall administer any Affordable Housing programs in accordance with provisions of the Act, the Rules, this Ordinance, any applicable slate and federal laws and regulations as each of which may be amended or supplemented from time to time. The County, in establishing, funding and administering the Affordable Housing Programs and by making, executing, delivering and performing any award, contract, grant or any other activity or transaction contemplated by the Act, shall not violate any provision olTavv, rule or regulation or any decree, writ, order, injunction, judgment, determination or award and will not contravene the provisions of or otherwise cause a default under any of its agreements, indentures, or other instruments lo which it may be bound. Any proposed amendment to this ordinance shall be submitted to MFA for review' prior to adoption by the Commission. Section 7. T E R M IN A T IO N . The Commission may repeal this Ordinance and terminate the County's Affordable Housing Program and any or all contracts undertaken in its authority. Termination shall be by ordinance at a public hearing or in accordance with the terms of the contract. If an ordinance or a contract is repealed or terminated, all contract provisions of the contract regarding termination shall be satisfied. Section 8. R E P E A L E R . All bylaws, orders, resolutions and ordinances, or parts thereof, inconsistent with this Ordinance arc repealed by this Ordinance but only to the cxlcnt of that inconsistency. This repealer shall not be construed to revive any bylaw, order, resolution or ordinance, or part thereof, previously repealed. Section 9. SE V ER A B ILITY . If any section, paragraph, clause or provision of this Ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or uncnforceability of that section, paragraph, clause or provision shall not affect any of the remaining provisions of this Ordinance. Section 10. E F F E C T IV E DATE. This Ordinance shall be in full force and effect thirty (30) days after it is recorded with the County Clerk in accordance with Section 4-37-9 NMSA, 1978. DONA ANA COUNTY, NM Amdeq eJeueH BSSBUEA 111'1812015 11:16:02 AM Instrument 1524776 TNTRODUCED. PASSED. AND of A?wmhr 2015 25?: 23 4:102 13:: oq; ogac almo?s 0030 05 211: 3?2: 0: ?gig: go= gap: 02: ?3.33: :g Inga-1 I?m z: vv?n? 23 92;: a :caEI mI 11? 201"Do? 1! >11: 99 3 $19Lie"- 1? ?9.55? _m 3552:? 2 x. For BOARD OF COUNTY COMMISSIONERS OF DORA ANA COUNTY, NEW MEXICO WW For! gains! IBilly (Hrrett. Chair, District I - Wit-id 2? wg ninst B?xmimuyf kiwi" am am . L. Rawson, District3 l'u Luinsl J. Ellins County Clerk Bu: Scott Krahiing Page: 23 of 23 MEXICO as PAGES: 23 Hereby Certify That alrumant Was Filed for Record On NOV 17, 2015 12: . 1% And Was Duly Recorded as Of The Records Of Dona Ana County Witness My Hand And Seal 0 ice, J. Ellins, County Clerk, Dona NM Brandl Delgado 1th 1524336 ?in, mm?! Deputy 57/753 DOÑA ANA COUNTY BOARD OF COUNTY COMMISSIONERS Doña Ana County Government Center 845 North Motel Boulevard Las Cruces, New Mexico 88007 Telephone: (575) 647-7200 Toll-Free: (877) 827-7200 May 23. 2017 Meeting Date 7 District 5 Commissioner John L. Vasquez Contact Person Agenda Item Number T IT L E O F A G EN D A IT E M TO BE C O N SID ER ED RESOLUTION DONATING A PAINTING FROM THE DOÑA ANA COUNTY PERMANENT COLLECTION TO THE LAS CRUCES ELK’S LODGE SUM M ARY OF ITEM TO BE CONSIDERED INCLUDING PRESENTATION OF OPTIONS FOR ACTION and ACTION REQUESTED A resolution requested by District 5 Doña Ana County Commissioner John L. Vasquez to donate the ‘Elk Painting’ to the Las Cruces Elk’s Lodge as a way of thanking the Lodge for proving funding to stage the 2017 ‘Shattered Lives’ program, which educates area teen about the dangers of driving while impaired and/or distracted. DESCRIPTION OF SUPPORTIN G DO CUM ENTATION A TTACHED Photographs of the painting and the text on the back indicating it was donated to Doña Ana County in 1991, and an email from District 5 Doña Ana County Commissioner John L. Vasquez requesting this resolution. SU M M A R Y O F FIN A N C IA L IM PA C T None A D M IN IS T R A T IV E R E V IE W AND A PPR O V A L ------ Finance Purchasing _____ Planning County Manager/ Agenda Review /^lu n iiur'fcsources Assistant County Manager P^bli^ltir»/Snecial Projects DOCUMENT CONTROL Original/s for signature? ___Yes No For Recording?___ Yes No Return original/s to: _______________ N a m e _____________________ Dept. Send copy of recorded original/s (resolution and ordinances only) to: _______________Name _____________________ Dept. Deadline for return of document/s? Yes, return b y :__________________ or ___No Resolution of Doña Ana County Resolution N o .___________ A RESOLUTION W HEREAS, the Doña Ana County Board of Commissioners is tasked to represent and address the needs of its residents, and W HEREAS, A painting of an elk in the Organ Mountains was donated to the Doña Ana County Permanent Collection in 1991 by Las Cruces artist Jorge W. Everbeek, and W HEREAS, Until January of 2017, the painting was hung out of most public view in the offices of various elected officials, most recently the County Treasurer, and W HEREAS, Upon entering office, the new county treasurer, Eric Rodriguez, indicated he was not interested in having the painting stay in his office, and it was then moved to the main hallway, just across from the Doña Ana County Clerk’s Office, and W HEREAS, a member of the Las Cruces Elks Club approached District 5 Doña Ana County Commissioner John L. Vasquez to ask whether the county would consider donating the painting to the Elk’s Lodge, and W HEREAS, in 2017, Doña Ana County lost its funding stream for the powerful ‘Shattered Lives’ program, which educates area teen about the dangers of driving while impaired and/or distracted, and W HEREAS, the Las Cruces Elks Lodge stepped up to provide the funding necessary to stage the ‘Shattered Lives’ program at Santa Teresa High School on Thursday, April 27, thereby ensuring that those teens - and others who read or saw the subsequent publicity —would receive the important message of the program, NOW THEREFORE, the Doña Ana County Board of Commissioners does hereby the transfer of ownership of the Elk Painting to the Las Cruces Elks Lodge and authorizes District 5 Doña Ana County Commissioner John L. Vasquez to make the formal donation of the painting on behalf of the full board at an appropriate upcoming date and time. PASSED, APPROVED AND ADOPTED this 23rd day of May, 2017 Board o f County Commissioners for Doña Ana County, New Mexico _yea nay _______________________________y e a John L. Vasquez, Vice-Chair nay yea n a y _______________________________y e a Ramon S. Gonzalez, Member nay Isabella Solis, Chair Billy G. Garrett, Member y e a __nay Benjamin L. Rawson, Member __________________________________ Attested: Scott A. Krahling, County Clerk Jess Williams From: Sent: To: Cc: Subject: John Vasquez Tuesday, May 2, 2017 11:26 AM Jess Williams Isabella Solis Elk Picture Mr. Williams I was wondering if we can donate the picture of the Elk that is located across from the Clerk's office? The reason I want to do this is because the Elks Club has raised money and supported the shattered lives program that is no longer funded. They have worked countless hours on raising money and participated in providing high school students with a dramatic presentation about death that is caused by drinking and driving. Anything you can do to help me in this matter is greatly appreciated. John L. Vasquez County Commissioner Dist. 5 71 Jess Williams From: Sent: To: Subject: JC Thursday, May 4, 2017 8:13 AM Jess Williams Elk painting 4 DOÑA ANA COUNTY BOARD OF COUNTY COMMISSIONERS Doña Ana County Government Center 845 North Motel Boulevard Las Cruces, New Mexico 88007 Telephone: (575) 647-7200 Toll-Free: (877) 827-7200 Detention Center___ Initiating Department _May 23, 2017______ Meeting Date Chris Barela______ Contact Person Agenda Item Number 1 TITLE OF AGENDA ITEM TO BE CONSIDERED APPROVE OUT OF STATE TRAVEL FOR LIEUTENANTS TO ATTEND EEO TRAINING FOR NEW INVESTIGATORS, ONE IN ATLANTA, GEORGIA JUNE 12 - 16, 2017 AND 2 nd IN WASHINGTON, DC OCTOBER 23 - 27, 2017. SUM M ARY OF ITEM TO BE CONSIDERED INCLUDING PRESENTATIO N OF OPTIONS FO R ACTION and ACTION REQUESTED The EEOC Training Institute is hosting a course on EEO training for New Investigators. The training will be held in Atlanta, Georgia, from June 12 - 16, 2017 and Washington, DC. October 23 - 27, 2017. Travel to and from the seminars will be on June 11, 2017, and June 16, 2017 and October 22, 2017 and October 27, 2017, respectively. The Lieutenants will be delegated the responsibility of investigating EEO complaints pursuant to the County’s Human Resources Policies and Procedures Guidelines, on an as needed basis. The training will provide instruction according to the federal investigative guidelines. Participants will learn the basics regarding the EEO law and are provided with the opportunity to develop essential investigative techniques.____________ D E SCRIPTION OF SUPPORTING DOCUM ENTATION ATTACHED Event information SUM M ARY OF FINANCIAL IM PACT 50030-20301-72610-200 - $1,075.00 x 2 = $2,150.00 - Registrations 50030-20301-72676-200 - $480.00 x 2 = $960.00 - Meals 50030-20301-72677-200 - $835.00 x 2 = $1,670.00 - Travel 50030-20301-72678-200 - $2,150.00 x 2 = $4300.00- Lodging Total $9,080.00 ADM INISTRATIVE REVIEW AND APPROVAL Finance ______Legal Purchasing ______Human Resources Planning ^ 0 County Manager/ Agenda Review Assistant County Manager Other DOCUMENT CONTROL Original/s for signature? __ Yes No X For Recording?___Yes No X Return original/s to: _____________ Name___________________ Dept. Send copy of recorded original/s (resolution and ordinances only) to: _____________ Name__________________ Dept. Deadline for return of document/s? Yes, return by:_______________ or __ No Dona Ana County Detention Center The Detention Center conducts 95% o f its own routine investigations using our own trained officers. Those investigations might be simple personnel issues w ith administrative procedures fo r accountability, but others fall into the category o f EEO investigations that may look into possible violations o f the protected classes. When an investigation crosses into this area we want to make sure that the investigator is fully aware, educated and competent in performing those investigations in order to protect all parties involved and the County. The Detention Center is looking at training tw o more lieutenants at this level. The trainings will take place in June, and October 2017. Regards, Chris Barela. E E O Training for New Investigators Description: Skilled EEOC personnel deliver this interactive course that fulfills the requisite 32-hour training requirement for new federal investigators. Participants are taught basics regarding EEO law and provided with the opportunity to develop essential investigative techniques in a small group setting. Trainers also use instructive exercises to assist participants in completing two actual investigations, which include allegations o f harassment, disparate treatment and disability discrimination. Course Date(s): • • April 24-28, 2017 (Washington, DC) May 22-26, 2017 (Washington, DC) • • June 12-16, 2017 (Atlanta, GA) July 10-14, 2017 (Washington, DC) • August 14-18, 2017 (Washington, DC) • August 21-25, 2017 (San Francisco, CA) • September 11-15, 2017 (Washington, DC) • October 23-27, 2017 (Washington, DC) Prerequisite: Participants are encouraged to bring a laptop and/or flash drive. Duration: Four Days, 8:30 a.m. - 5:00 p.m.; Half day, 8:30 a.m. - 12:00 p.m. Noon Participants must be able to attend all 4.5 days of instruction to receive a certificate. Price: $1,075 per participant* • includes comprehensive manual, certificate and snacks Course Topics Include: • Basics o f EEO law and theories o f discrimination; • The 1614 regulations and federal sector EEO process; • Models o f proof in employment discrimination cases; • Elements o f a disability discrimination case; • Tools and techniques fo r planning and conducting interviews; and • The Investigative Report and Investigative Summary DOÑA ANA COUNTY BOARD OF COUNTY COMMISSIONERS Doña Ana County Government Center 845 North Motel Boulevard Las Cruces, New Mexico 88007 Telephone: (575) 647-7200 Toll-Free: (877) 827-7200 Detention Center Initiating Department May 23. 2017 Meeting Date Chris Barela. Detention Center Director Contact Person Agenda Item Number TITLE OF AGENDA ITEM TO BE CONSIDERED APPROVE AWARD OF REQUEST FOR PROPOSAL 17-0015 INMATE TELECOMMUNICATION SERVICES AND DELEGATE SIGNATURE AUTHORITY TO THE COUNTY MANAGER FOR RELATED CONTRACT DOCUMENTS SUM M ARY OF ITEM TO BE CONSIDERED INCLUDING PRESENTATIO N OF OPTIONS FO R ACTION and ACTION REQUESTED Request For Proposal (RFP) #17-0015 Inmate Telecommunication Services was issued to solicit interest, was advertised in the local paper, and was sent to potential Offerors. Three (3) firms responded. In accordance with 13-1-117 of the Procurement Code, the Detention Center and the Purchasing Department request approval to award RFP 17-0015 to Legacy Inmate Services. Additionally, we are requesting authorization for the County Manager to have signature authority over the related contract documents, amendments, and renewals. DESCRIPTIO N OF SUPPORTING DOCUM ENTATION ATTACHED Executive Sum m ary Evaluation Summary Sheet Cost Proposals SUM M ARY OF FINANCIAL IM PACT 50030-00000-55395 - Revenue up to $30,000 per month ADM INISTRATIVE REVIEW AND APPROVAL A - is Finance Legal Purchasing Human Resources Planning Other County Manager/ Agenda Review Assistant County Manager DOCUMENT CONTROL Original/s for signature? ___Yes X No Return original/s to: For Recording?___ Yes X_No Donald Bullard______________ N am e_____Purchasing______________ Dept. Send copy of recorded original/s (resolution and ordinances only) to: _______________ N am e_____________________ Dept. Deadline for return of document/s? Yes, return b y :_________________ or _ No Executive Summary 5/23/2017 BOCC M e e t i n g Title: 17-0015 Inmate Telecommunication Services Proposals were solicited by Doña Ana County (DAC) Purchasing Office to establish a contract to provide inmates with access to telecommunications services, which meets Doña Ana County’s technical and functional requirements and provides for the lowest cost to inmates or any person who pays for inmate telecommunications services. The County is interested in entering into an agreement with Legacy Inmate Services from July 1, 2017 until June 30, 2018 with the option to renew at the discretion of the County for additional seven (7), one (1) year terms. Proposals were evaluated on the following criteria: RFP Requirements and Response; Technical Competence; Fees; Qualifications; Experience; References and Capability. The Evaluation Committee consisted of: Chris Barela, Detention Center Director; Bryan Baker, Detention Center Captain; Pam Wood, Contract Administrator; Donald E. Bullard, Purchasing Manager. The evaluation committee met on 3/9/2017 to evaluate and discuss all proposals. The committee determined that Legacy Inmate Services’ proposal was the most advantageous to DAC taking into consideration the evaluation factors. The evaluation committee recommends award to Legacy Inmate Services. RFP #17-0015 Inmate Telephone Services __Evaluatiqn_;_ Cast/Fees Quali?cations Experience; :Reierencias Capability Total Score Overall Score Overall Scores 9? Rank Legacy Inmate Services Don Pam _Ch?s Bryan 145 150 100 1?5 40 - 970 140 ?40? 95 ?e ?49142865 3,750 Securus Technologies _Don Pam Chris Bryan 130 135 100 150 1:?150 coon? 35 - 910 100 100. .100 - 100 50 - 800 3,625 ICS Don Pam Ch?s Bryan 120 942%029: can885 100' 135 90 ?58:neg-acne ?$9545 75 100 150 an Ax; WMMW "25 - 740 100 75' 50 MADE ?3 25 - 700 3,165 ?zz 10f1 Contract Section II - Attachment B Cost Proposal Organization Name: I. Legacy Inmate Communications Dirte; December 16, 2016 PAYMENT SCHEDULE Payments will be made in accordance with Article 5 - Section I of this Agreement. (Purchasing Department must approve any other financial agreements in advance) II. COST PER UNIT OF SERVICE OR GOOD(S) PROCURED: Provide a detailed schedule of fees or flat fee for each service requested. VIDEO VISITATION Onsite: FREE Remote: $0.35/min INMATE CALLING (COLLECT & PREPAID) Local: $0.15/mln IntraLATA: $0.15/min InterLATA: $0.15/min Interstate: $0.25/min (Collect) / $0.21/min (Prepaid) International: $1.15/mln SECURE MESSAGING SERVICES Voicemail: $1.00/message E-mall: $2.50/message (2-way) INMATE CALLING (DEBIT) Local: $0.12/mln IntraLATA: $0.12/min InterLATA: $0.12/min Interstate: $0.13/min International: $1.00/min III. OTHER SERVICES Automated Information System: FREE Continuous Voice Biometrics: FREE Inmate Kites/Forms: FREE Commissary Ordering: FREE Law Library: FREE PREA Access: FREE RENT PAYMENTS TO THE COUNTY Offerors shall indicate agreement to the thirty dollars ($30.00) per square foot rental fee or provide an alternate amount. Check agree or alternate amount. □ Agree 0 Alternate amount $ 30,000.00 . Payments will be calculated as follows: 10 square feet multiplied by the total amount of phones (i.e. 106 X 1Osqf), plus 152 square feet of office space for the for the full time call system manager, multiplied by $30.00, equals total monthly payment. RFP# 17-0015 9.3 RESPONSE 10 REQUEST I Oii PROPOSAL INMATE TELECOMMUNICATIONS SERVICES - RET5# I TOO I b ID)y LEGACY INMATE s. C O M M U N I C A T I O N S SECTION D. - COST PROPOSAL S E C T IO N D. - C O ST P R O P O SA L Complete the Cost Proposal Form, sign and include with proposal response. (Part III) C O ST The cost proposal shall contain the following information: 1. Overall cost (if any) to the County with all factors considered. Legacy has read, acknowledged, and agrees to comply. All services and equipment will be provided at no cost to the County. We have provided an explanation of our rent payment proposal to the County at the end of this section. 2. Charges levied to call recipients, with the intent of obtaining the lowest cost passed on to the recipients. It is the intention of the County to hold as the price ceiling the FCC tariffs. Contractors will be required to follow time of day discounts applicable to FCC tariffs for non-sent-paid calls. Legacy has read, acknowledged, and agrees to comply. 3. Current tariff infonnation shall be included Legacy has read, acknowledged, and agrees to comply. 4. Other costs not otherwise identified above. 0 Legacy has read, acknowledged, and agrees to comply. There are no costs to the County for any aspect of service. Below we have provided information about enduser fees. Applicable End-User Fees (No other fees will be applied Account Transaction Fee (Prepaid Only - Processed via Live Agent) $5.95 Account Transaction Fee (Prepaid Only - Processed Online) $3.00 Bill Statement Fee (Collect Only) $2.00 RENT PAYM ENTS TO THE C O U N TY Legacy Inmate Communications 10833 Valley View Street, Suite 150 Cypress, CA 90630 Office: 800-577-5534 Fax:800-700-1116 I www.legacyinmate.com RESPONSE 10 REQUEST FOR PROPOSAL INMATE. TELECOMMUNICATIONS, SERVICES REP #1 7-0015 It)) LEGACY INMATE Dona Ana County is seeking rental payments from the awarded inmate telecommunications service Provider for space rental in the amount of $30.00 per square foot per month. Offerors shall indicate on the cost proposal form an agreement to the amount indicated above or provide an alternate amount. Payments will be calculated as follows: 10 square feet multiplied by the total amount of phones (i.e. 107 X lOsqf), plus 152 square feet o f office space for the for the full time call system manager, multiplied by $30.00, equals total monthly payment. Legacy has read, acknowledged, and is proposing an alternative solution. As the County’s current provider, Legacy is well aware of the typical revenue generated from inmate communications at the County’s facilities. After careful analysis of this data, Legacy has deemed it impossible for a n y provider to be able to provide the rent payment amount requested here in the County’s RFP since the revenue generated from inmate communications is simply insufficient to cover all costs involved in providing service and simultaneously allow for the provision of rent payments of the requested amount. Legacy is confident that doing so would make the provision of service to Dona Ana County unsustainable for a n y vendor, not just Legacy. Legacy is proposing to subm it m onthly rent paym ents to the County in the fixed am ount of $ 3 0 , 0 0 0 .0 0 per m onth. In addition, Legacy w ill continue to provide the County’s current full-tim e Call System Manager, Sam M ontoya. As we have since 2 0 1 3 , we will continue to provide the annual wages for Mr. Montoya along with the medical and dental insurance necessary to ensure his well-being during his occupancy at DACDC. Legacy will also continue to provide all equipment and hardware, software and system access, ongoing system updates, investigative and administrative tools, communication services, ongoing service and support of the facility, its inmate population, and its constituent population (Friends & Family), as well as all other services, tools, features, and items necessary for the operation of the County’s inmate communication system at no cost for th e life of the agreem ent. Legacy Inmate Communications 10833 Valley View Street, Suite 150 Cypress, CA 90630 Office: 800-577-5534 Fax:800-700-1116 I www.legacyinmate.com DOÑA ANA COUNTY BOARD OF COUNTY COMMISSIONERS Doña Ana County Government Center 845 North Motel Boulevard Las Cruces, New Mexico 88007 Telephone: (575) 647-7200 Toll-Free: (877) 827-7200 ■letport_____ ______ Initiating Department May 23.2017________ Meeting Date Bill Provance. Airport Manager Contact Person Agenda Item Number /o TITLE OF AGENDA ITEM TO BE CONSIDERED APPROVE ASSIGNM ENT O F SANTA TERESA AIRPORT HANGAR T - ll CONDOMINIUMS. DEED FOR LEASEHOLD CONDOM INIUM INTEREST UNIT #5, FROM LEON DEVELOPMENT, LLC, TO MIKE M CNAM EE AND M ARCIA M CNAM EE AND DELEGATE SIGNATURE AUTHORITY TO THE COUNTY M ANAGER FOR THE ASSIGNM ENT AND ALL RELATED DOCUM ENTS. SUM M ARY OF ITEM TO BE CONSIDERED INCLUDING PRESENTATION OF OPTIONS FOR ACTION and ACTION REQUESTED Lot T -ll is currently leased to the Santa Teresa Airport Hangar Association (as Lessee). Unit #5 of that Condominium has been sold by Leon Development, LLC to Mike McNamee and Marcia McNamee. Staff recommends approval of the assignment of the land lease of Lot T -ll Unit #5 from Leon Development, LLC to Mike McNamee and Marcia McNamee and delegation of signature authority to the County Manager for the assignment and all related documents. DESCRIPTION OF SUPPORTING DOCUMENTATION ATTACHED Assignment of Leasehold Condominium Interest Unit #5 from Leon Development LLC to Mike McNamee and Marcia McNamee Executive Summary _ __ ___ ___ ___ __ __ Lease Contract DAC 05-185 to Santa Teresa Hangar Association _ SUMMARY OF FINANCIAL IMPACT No change to hangar lease rate for Lot T -ll. A D M IN ISTR ATIVE REVIEW AND APPROVAL J ^ F Finance ii Legal L Purchasing Human Resources Planning Other DOCUMENT CONTROL Original/s for signature? Yes For R ecording?__ R eturn original/s to: William Provance. Jetport Manager Send copy of recorded originai/s (resolution and ordinances only) to: Legal D epartment Deadline for return of document/s? No uñty Manager/ Agenda Review Assistant County Manager Executive Summary Re-Assign Lease to M ike and Marcia M cNamee, 2017 SUMMARY: The land lease for T-Hangar identified as T-l 1 (Contract DAC 05-185) is assigned to Santa Teresa Airport Hangar Association. The hangar is registered as a Condominium Association which sold units to various individuals or companies. Unit #5 is currently owned by Leon Development, LLC and is being sold to Mike McNamee and Marcia McNamee. The McNamee’s wish to assume the lease of that portion of Hangar T -ll In order to complete the legal paper trail, we are requesting that the BOCC approve the assignment of lease from Leon Development to Mike and Marcia McNamee. There will not be any change in the Hangar Lease rate because it is based on the total square feet of all nine units in the Condominium Association. SWAT 041681 GC/CP A S S IG N M E N T O F L E A S E Nam es o f Parties THIS AGREEMENT is made between Leon Development, LLC, a Texas Limited Liability Company, called Assignor in this agreement and Mike McNamee and Marcia McNamee, called the Assignee in this agreement. R ecitals WHEREAS, a Lease (“Lease”) was executed on or about the 2 1st day of September 2004, between Santa Teresa Hangar Association, as the Lessee, and Dona Ana County, New Mexico (“Dona Ana County”) as Lessor, by the terms of which the following described real estate was leased to Santa Teresa Hangar Association as Lessee for an initial term of 25 years, with a renewal/extension term for an additional 10 years, commencing on or about September 2 1,2004, subject to earlier termination as therein provided: UNIT 5, Santa Teresa Airport Hangar Lot T-11 Condominiums, a condominium located on Lot T-11, Dona Ana County Airport at Santa Teresa, New Mexico, being more fully described in Declaration thereof recorded on April 22, 2005, in Book 603 Pages 698 through 726 and Amendment recorded Amendment recorded June 13, 2005, in Book 615 Pages 1924 through 1926 both of Official Records, together with an undivided 7.1% interest in the common areas and facilities. WHEREAS, Santa Teresa Hangar Association assigned the Lease to Benny Davis and Janet Davis, husband and wife, via Deed for Leasehold Condominium Interest filed in the Dona Ana County, NM records on April 1,1999 as instrument #998712; and WHEREAS, Benny Davis and Janet Davis, husband and wife assigned the Lease to Thomas L. Smith and Julia M. Smith, husband and wife via Deed for Leasehold Condominium Interest filed in the Dona Ana County, NM records on September 17, 2007 as instrument #0732117; and WHEREAS, Thomas L. Smith and Julia M. Smith, husband and wife, assigned the Lease to Leon Development, LLC, a Limited Liability Company as tiled in Dona Ana County, NM records on July 3, 2013 as instrument #1316948; and WHEREAS, the Assignor now desires to assign the Lease to the Assignee, and the Assignee desires to accept the assignment; and WHEREAS, the prior written consent of “Dona Ana County” is required for the “Lease” to be assigned and transferred; and WHEREAS, Assignor is entitled to be relieved from all obligations under the “Lease” upon “Dona Ana County’s” written consent to an Assignment and transfer of the “Lease”. Assignment In consideration of the sum of $ 10.00 and other good and valuable consideration, the receipt of which is acknowledged by this agreement, and the agreement of the Assignee set forth below, the Assignor assigns and transfers to the Assignee and the Assignee’s successors and assigns all right, title and interest of Assignor in and to the “Lease,” a copy of which is recorded in Book 553, Pages 1623­ 1643, of the records o f Dona Ana County, New Mexico. The Assignee accepts the assignment and in addition, expressly assumes and agrees to perform and fulfill all the terms, covenants, conditions and obligations required by the Assignor as the Lessee under the “Lease.” Assignee hereby agrees to at all times hereafter indemnify, defend and hold Assignor harmless from and against any and all payments, liability and costs, including reasonable attorneys fees which Assignor may suffer or be requested or required to pay by virtue of the “Lease.” Binding on Successors This agreement shall be binding on and insure to the benefit of the parties to this agreement, their respective heirs, executors, administrators, personal representatives, successors in interest and assigns. Consent of Lessor The undersigned, Dona Ana County, New Mexico, is the Lessor in the Lease described in the foregoing Assignment of Lease from Leon Development, LLC, a Texas Limited Liability Company, (“Assignor”) to Mike McNamee and Marcia McNamee. The undersigned hereby consents to the Assignment of Lease to Mike McNamee and Marcia McNamee and expressly relieves and releases “Assignor” from all obligations and liability under the terms of said Lease. DATED this_____ day o f _____________, 2017. “See attached Exhibits A-C” Exhibit A - Signature Page LESSOR “Lessor” Dona Ana County, New Mexico B y:____________________________ Charles B. McMahon, Interim County Manager State o f _________ ) County o f______________ ) This instrument was acknowledged before me this_______day o f __________ , 2017, by Charles B McMahon, Interim County Manager of Dona Ana County, New Mexico as Lessor. Notary Public Exhibit - Signature Page ASSIGNOR ?Assigner? Leon a Texas Limited Liability Company 'r .I BY: K- Alan Russell State of 75% County of a ?g This instrument was acknowledged before me this ?day of M, 2017, by K. Alan Russell, Managing Member of Leon DeveIOpment, LLC, a Texas Limited Liability Company, as Assignor. 1/ OSCAR PARRA My Commission Euplm Notary Public February 7. 2018 ma? INhibit C - Signature I‘aye ASSK.M'.r. Mi'vAMcNamoc and Marcia McNamee 1 Stale of / c N ^ r , County of r ’& Z ’C ' ) I Ins insliumenl ss as acknowledged lie lore me tins a> of and Maieia McNamee. as Assignee. J OSCARPARRA Commission Expires February 7 , 20J8 " Notars Public 201 /. Its M i Kc McNamee £ .L £ tA & jr) HANGAR 3 HANGAR 2 V 2 j Cs •Ksy fcooM \j HANGAR 1 lú ZV VR. HANGAR 8 ■TñHK/ k - # t r H i y HANGARS HANGAR 5 u 1 1 C A HANGAR 9 VERftAlJ H - QQ X LU X 0 4 /0 1 /2 0 0 5 1 6 :0 5 9158527773 PAGE CONTRACT DAC 0 5 '1 * 5 5 LEA SE C O N TR A C T BETW EEN DOÑA ANA CO UN TY A N D S A N T A T E R E S A H A N G A R A S S O C IA T IO N F O R L E A S E O F A IR P O R T S P A C E A T T H E D O Ñ A A N A C O U N T Y A IR P O R T A T S A N T A T E R E S A , N E W M E X IC O T h is L e a s e , m a d e a n d e n te r e d in to b y an d b e tw e e n th e B o a r d o f C o u n ty C o m m issio n e rs o f D o ñ a A n a C o u n ty , N e w M e x ic o , h e re in a fte r r e f e rr e d to as th e " L e ss o r," a n d S a n ta T e re s a H a n g a r A s s o c ia tio n , h e r e in a f te r c a lle d th e " L e sse e ." T h is L e a s e is th e re s u lt o f a n a w a r d to th e L e s s e e o f its bid re s p o n d in g t o t h e L e s s o rO s r e q u e s t fo r r e s p o n s e s to D A C B id # 0 4 - 0 0 8 8 L e a s e o f A irp o rt Space. T h is L e a s e s u p e r s e d e s all p r io r a g re e m e n ts a n d n e g o tia tio n s b e tw e e n th e p a rtie s . W I T N E S S E T H : W H E R E A S , L e s s e e h a s s u b m itte d a L e t t e r o f In te n t to e re c t a h a n g a r a n d su p p o rt buildings u p o n a s ite d e s ig n a te d a s L o t T - l 1 a t th e S a n ta T e r e s a A irp o rt, ( h e re in a fte r ca lled th e "A irp o rt") w h ic h is o w n e d b y t h e L e s s o r , a n d W H E R E A S , L e s s e e h a s s u b m itte d t o th e L e s s o r th e ite m s se t f o r th in S e c tio n 2 .3 .2 o f the S a n ta T e r e s a A ir p o r t D e v e lo p m e n t G u id e lin e s a n d th e L e s s o r h a s a p p r o v e d th e s e item s, and W H E R E A S , L e s s e e a n d t h e L e s s o r d e s ir e to e n te r in to th is L e a s e re la tin g to th e o ccu p y in g o f a fa c ility t o b e c o n s tr u c te d u p o n th e h e re in a fte r d e s c rib e d L o t. N O W , T H E R E F O R E , f o r a n d in c o n s id e r a tio n o f th e p re m ise s a n d o f th e m u tu al covenants a n d a g re e m e n ts h e r e in c o n ta in e d a n d o th e r g o o d a n d v a lu a b le c o n s id e ra tio n , th e m utual sufficiency o f w h ic h is h e re b y c o n f e s s e d a n d a c k n o w le d g e d , th e p a rtie s a g re e a s fo llo w s: 1. L E A S E D P R E M I S E S : T h e L e s s o r le a s e s t o L e ssee , th e a re a o f lan d re fe rre d to h erein as L o t T - l 1, h e r e in a f te r re f e rr e d t o a s " leased p re m is e s ," a t th e D o ñ a A n a C o u n ty A irp o rt at S an ta T e r e s a , N e w M e x ic o . S t a te of N e w M e x ic o , w h ic h is d e p ic te d a n d d e s c rib e d u p o n E x h ib it "A" ) <*- Santa Teresa Hangar Association. Lease Lot T-11 01 U4/fcJi/2büii I b : Ü5 yiübb27/73 l-'Aiit a tt a c h e d h e r e to a n d m a d e a p a r t h e re o f. 02 T h e a re a o f lan d to b e le a se d is d e s c rib e d in E x h ib it A a tta c h e d a n d c o n ta in s 1 9 ,5 0 0 s q u a r e feet. 2. P E R I O D O F C O N T R A C T : T h e p re m ise s is h ereb y le a se d fo r a p e rio d o f fifteen (15) years c o m m e n c in g f ro m th e d a te o f a p p r o v a l by th e N e w M e x ic o S ta te B o a r d o f F in a n ce . T h e te rm o f the L e a s e m a y b e e x te n d e d o n c e f o r a n a d d itio n a l te n ( 1 0 ) y e a r te rm u p o n th e s a m e te rm s a n d co n d itio n s p r o v id e d th a t; (i) L e s s e e n o tifie s L e s s o r o f its in te n tio n to r e n e w o n e ( 1 ) y e a r p rio r to th e end th e te r r a o f th is L e a s e ; (U) L e s s e e , in L e s s o r 's re a s o n a b le ju d g m e n t a n d d isc re tio n , h a s m ain ta in e d th e le a s e d p r e m is e s in g o o d w o r k a b le c o n d itio n c o n s is te n t w ith L e s s o r's s ta n d a rd s , reso lu tio n s, ru les and r e g u la tio n s , th e D o h a A n a C o u n ty M in im u m S ta n d a rd s fo r C o m m e rc ia l A e ro n a u tic a l A c tiv itie s at S a n ta T e r e s a A ir p o rt, a n d th e S a n ta T e re s a A irp o rt D e v e lo p m e n t G u id e lin e s as m ay b e revised during t h e te r m o f th is L e a s e o r a n y r e n e w a l term s; (iii) L e s s e e , in L e s s o r 's re a s o n a b le ju d g m e n t a n d d isc re tio n , h as co n tin u o u sly o p e r a t e d its fa c ility a n d a t t h e tim e o f re n e w a l n o tic e is n o t in re c e iv e rs h ip o r b a n k ru p tc y ; (iv ) L e s s e e is n o t in v io la tio n o f th e S a n ta T e re s a A irp o rt D ev elo p m en t G uidelines, t h e D o ñ a A n a C o u n ty M in im u m S ta n d a r d s fo r C o m m e rc ia l A e ro n a u tic a l A c tiv itie s at S a n ta T e resa A ir p o r t, o r a n y o th e r L e s s o r s ta n d a r d s , re s o lu tio n s , ru le s o r re g u la tio n s th e n e x istin g o r a d o p te d d u r in g t h e te r m o f th is L e a s e o r a n y re n e w a l te rm s; (v ) L e s s e e h a s n o t b e e n m o re th a n 6 0 d ay s la te in m a k in g ren t p ay m en ts m o re than th r e e tim e s d u r in g th e te r m o f t h e le a s e o r a n y re n e w a l term s; (v i) T h e L e s s e e is c u rr e n t in p a y m e n t o f land re n ta ls, c o m p e n s a tio n and o th e r fees a n d p r o v id e d ; an d (v ii) L e s s e e is n o t th e n in b re a c h o f an y m aterial te rm , c o v e n a n t o r co n d itio n o f this L e a s e a s m a y b e a m e n d e d o r r e v is e d , e x te n d e d o r re n e w e d . 3. R E N T A L R A T E . O T H E R FE E S AND PA Y M EN T A. B a s e L a n d R e n t a n d O th e r R e n t: L e s s e e sha)) p a y th e C o u n ty re n t f o r th e leased p r e m is e s o n a n a n n u a l b a sis, a s f o llo w s : (i) C o m m e n c in g o n th e first d a y o f th is le a s e (a p p ro v a l b y th e S ta te B o a rd o f F in a n c e ) , L e s s e e sh all p a y th e L e s s o r fifte e n c e n ts (1 5 0 ) p e r s q u a re f o o t p e r y e a r a s B a s e L a n d R e n t b a s e d o n t h e fa c t th a t t h e h a n g a r w ill b e u se d only fo r s to ra g e a n d n o t o p e ra te d c o m m e rc ially and no g r o s s r e c e ip ts g e n e ra te d . I n t h e e v e n t th a t c o m m e rc ia l o p e ra tio n s a re in itia te d , th e ren ta l r a te sta te d a b o v e sh a ll b e re d u c e d t o te n c e n ts ( 1 0D) p e r s q u a re fo o t p e r y e a r d u rin g th e te rm o f th is lease as B a s e L a n d R e n t. T h e B a s e L a n d R e n ta l R a te shall b e re n e g o tia te d a t th e tim e o f e a c h c o n tra c t r e n e w a l. (ii) C o m m e n c in g o n e y e a r a fte r L e s s e e sta rts c o m m e rc ia l b u sin e ss, L e s s e e shall p a y , in a d d itio n to th e B a s e L a n d R e n t jn (i) a b o v e , to th e L e s s o r tw o p e rc e n t (2 % ) o f th e g ro ss r e c e ip ts o f th e L e s s e e , c a lc u la te d in th e sa m e m a n n e r a s L e s s e e c a lc u la te s its N e w M e x ic o sta te in c o m e t a x w ith th e s a m e e x c lu s io n s th a t ap p ly to s u c h tax . E x c lu sio n s a lso in clu d e p erm itted aircraft fu e l s a le s a n d sa je s o r o t h e r in c o m e a ttrib u ta b le to a c tiv itie s c o n d u c te d o u t o f th e le a se d prem ises. P a y m e n ts sh all b e m a d e a n n u a lly o n th e a n n iv e rsa ry d a te o f th e first p a y m e n t d u rin g th e te rm o f this L ease. Santa Teresa Hangar Associatioa Uas* Loi T-11 t) 4 /tn /2 m i) lb : 06 a i 6 0 5 2 7 7 /3 (-'A ct Ü3 (¡Ü) I n a d d itio n to r e n t set f o r th in (i) a n d (ii) ab o v e , L e s s e e shall pay L e s s o r a fuel f lo w a g e f e e o f s ix c e n ts (6D ) f o r e a c h g a llo n o f fu el d e liv e re d to L e s s e e a t th e A irp o rt. P a y m e n t shall b e m a d e q u a r te r ly o n J a n u a r y 1, A p ril 1, Ju ly 1, a n d O c to b e r 1, o f e a c h y e a r d u rin g th e te r m o f this L ease. B. R e n t a l E s c a l a t i o n : T h e n e g o tia te d B a s e R e n ta l R a te sp e cifie d in 3 .A (i) a b o v e , w ill b e in c r e a s e d a n n u a lly a c c o r d in g to in c re a s e s in th e C o n s u m e r P ric e In d e x p ro d u c e d by th e B u r e a u o f L a b o r S ta tis tic s . O n e a c h le a s e a n n iv e rs a ry d a te , th e L e s s o r shall g iv e w ritte n n o tic e to th e L e s s e e o f t h e B a s e L a n d R e n t t o b e c h a r g e d d u rin g th e e n s u in g y ear. T h e in c re a s e shall b e b a sed o n th e All U r b a n C o n s u m e r (C P 1 -U ) f o r AH I te m s C a te g o ry , U . S. C ity A v e ra g e ( o r, i f sa id in d ex is n o lo n g e r p u b lis h e d , a n a p p r o p r i a t e s u c c e s s o r in d e x ), a n d sh all b e fo r th e m o st re c e n t p e rio d a v a ilab le ; th e p e r c e n ta g e in c r e a s e o v e r th e s a m e in d e x f o r th e p re v io u s tw e lv e m o n th s shall d e te rm in e th e p e r c e n ta g e i n c r e a s e in t h e B a s e R e n t. C. A d d i t i o n a l S u b l e a s e C o m p e n s a t i o n : It is u n d e rs to o d an d a g re e d th a t L e s s e e , in a d d itio n t o its o w n u s e o f th e le a s e d p re m ise s , m a y s u b le a se th e lea se d p re m ise s to o th e r p e r s o n s o r e n titie s w i t h p r io r w r itte n a p p ro v a l o f th e L e s s o r. W ith re sp e c t th e re to . L e s s e e shall p ay tw o p e rc e n t (2%) o f t h e s u b le s s e e 's G r o s s R e c e ip ts a s a d d itio n a l re n t, exc e p tin g su b le a s e s t o L e sso r. O'* c D. D e l i n q u e n c y : T h e p a y m e n ts s e t f o rth in p a ra g ra p h A o f this p a ra g r a p h s h a ll b e k e p t c u r r e n t. I n t e r e s t sh a ll b e c h a rg e d o n a n y p a y m e n t o v e rd u e five (5 ) to th irty ( 3 0 ) d a y s a t th e r a t e o f o n e a n d o n e - h a l f p e r c e n t ( M / 2 % ) p e r m o n th p r o r a te d f o r th e n u m b e r o f d a y s late. T h e r a te fo r p a y m e n ts o v e r d u e m o r e th a n th irty (3 0 ) d a y s sh a ll b e tw o p e rc e n t (2 % ) p e r m o n th p r o ra te d f o r th e n u m b e r o f d a y s o v e r th irty d ay s. L e s s o r sh all a ls o b e e n title d to re c o v e r all c o lle c tio n c o s ts and e x p e n s e s in c lu d in g r e a s o n a b le a tto r n e y s ' fee s, r e g a r d le s s o f w h e th e r a c o u rt a c tio n is re q u ire d to p u r s u e d e lin q u e n t p a y m e n ts . E. G r o s s R e c e ip t s : ( i) " G r o s s re c e ip ts " m e a n s th e to ta l a m o u n t o f m o n ey o r th e v a lu e o r o th e r c o n s id e r a tio n f r o m s e llin g o r le a s in g p ro p e rty o r fro m p e rfo rm in g s e rv ic e s, a n d in c lu d e s a n y re c e ip ts f r o m s a le s o f ta n g ib le p e rs o n a l p r o p e r ty h a n d le d o n c o n sig n m e n t. E x c lu d e d a r e N e w M e x ic o g r o s s r e c e ip ts t a x p a y a b le o n tra n s a c tio n s f o r th e r e p o r tin g p e rio d an d ta x e s im p o se d p u rs u a n t to th e p r o v is io n s o f th e M u n ic ip a l G r o s s R e c e ip ts T a x A c t, th e S p ecial M u n ic ip a l G ro s s R e c e ip ts T a x A c t, t h e M u n ic ip a l E n v iro n m e n ta l S e rv ic e s G ro s s R e c e ip ts T a x A ct, th e L e s s o r G ro s s R e c e ip ts T a x A c t, t h e C o u n ty F ir e P r o te c t io n E x c is e T a x A c t, th e C o u n ty E n v iro n m e n ta l S e rv ic e s G ro s s R e c e ip ts T a x A c t, t h e L o c a l H o s p ita l G r o s s R e c e ip ts T a x A c t o r t h e C o u n ty H e a lth C a re G r o s s R e c e ip ts T a x A c t w h ic h a r e p a y a b le o n tr a n s a c tio n s f o r th e re p o r tin g p e rio d . A lso e x c lu d e d fro m G ro s s R e c e ip ts shall b e t h e p u r c h a s e , s a le o r e x c h a n g e o f a irc ra ft fuel. (ii) In a n e x c h a n g e in w h ic h th e m o n e y o r o th e r c o n s id e ra tio n re c e iv e d d o e s no t r e p r e s e n t th e v a lu e o f t h e p r o p e r ty o r s e rv ic e e x c h a n g e d , "g ro ss re c e ip ts" m ea n s th e rea so n a b le valu e o f th e p r o p e r t y o r s e r v ic e e x c h a n g e d . (iii) W h e n th e s a le o f p r o p e r ty o r serv ice is m a d e u n d e r an y ty p e o f c h a rg e , c o n d itio n a l o r tim e - s a le s c o n tr a c t o r th e le a sin g o f p ro p e r ty is m a d e u n d e r a lea sin g c o n tr a c t, th e L e s s e e m a y e le c t t o t r e a t all re c e ip ts , e x c lu d in g a n y ty p e o f tim e -p ric e d iffe re n tia l, u n d e r su c h c o n tr a c t s a s g r o s s r e c e ip ts a s an d w h e n th e p a y m e n ts a re actu ally re c e iv e d . I f th e L e s s e e tra n sfe rs his in te r e s t in a n y s u c h c o n tr a c t t o a th ird p e rs o n , th e n L e s s e e shall tre a t th e re c e ip ts a s g r o s s re c e ip ts u p o n th e fu ll s a le o r le a s in g c o n tr a c t a m o u n t, e x c lu d in g any ty p e o f tim e -p ric e d ifferen tial. Santa Teresa Hangar Association. Lease Lot T-11 n (iv ) " G r o s s r e c e ip ts ," f o r th e p u r p o s e o f th e b u sin ess o f b u y in g , sellin g o r p ro m o tin g t h e p u r c h a s e , s a le o r le a s in g , a s a n a g e n t o r b r o k e r , o n a c o m m issio n o r fe e b a sis, o f a n y p ro p e rty , s e rv ic e , s to c k , b o n d o r s e c u r ity , in c lu d e s th e to ta l c o m m issio n s o r fees d e riv e d fro m th e b u sin e ss. ( v ) " G r o s s r e c e ip ts ," a lso in c lu d e s th e a m o u n ts p a id by m e m b e rs o f any c o o p e ra tiv e a s s o c ia tio n o r s im ila r o r g a n iz a tio n fo r sa le s o r le a s e s o f p e rso n a l p ro p e rty o r p e rfo rm a n c e o f services b y s u c h o rg a n iz a tio n . F. P l a c e a n d M a n n e r o f P a y m e n t s : P a y m e n ts by L e s s e e shall b e m a d e to th e A irp o rt M a n a g e r o r a t s u c h o t h e r p la c e a s L e s s o r m ay h e re a f te r d e s ig n a te in w ritin g t o L e s s e e . L e s s e e shall ¡ p a y b y c h e c k m a d e p a y a b le t o T r e a s u re r, D o n a A n a C o u n ty , in leg al te n d e r o f th e U n ite d S ta te s . C h e c k s sh all b e a c c e p te d b y L e s s o r su b je c t to c o lle c tio n . L e s s e e a g re e s to p a y a n y b a n k c h a rg e s fo r £ m y c o s ts in c u r r e d b y L e s s o r o n a c c o u n t o f r e tu r n e d o r d ish o n o re d c h e ck s. T h e A irp o rt M a n a g e r s h a ll n o t a c c e p t c a s h p a y m e n ts . 4. I M P R O V E M E N T S A N D C O N S T R U C T IO N O B L IG A T IO N S : A. R e q u i r e d C o n s t r u c t i o n : L e s s e e sh all c a u se to h a v e erected u p o n th e leased p rem ises t h o s e im p r o v e m e n ts a s s e t f o r th in th e p lan s a n d s p e c ific a tio n a s shall b e su b se q u e n tly a p p r o v e d by t h e L e s s o r a t t h e s o le c o s t a n d e x p e n s e o f L e sse e . B. D e v e lo p m e n t P la n s: B e fo re a n y c o n s tru c tio n is in itia te d a p r e - c o n s tr u c tio n c o n f e r e n c e sh a ll b e h e ld w ith th e A ir p o rt M a n a g e r, C o u n ty B u ild in g In s p e c to r, C o u n ty E n g in e e r, C o u n t y P la n n in g D i r e c t o r a n d a n y o n e else d e s ig n a te d b y th e A irp o rt M a n a g e r fo r th e p u r p o s e o f L e s s o r re v ie w a n d a p p r o v a l o f aj) p la n s , s p e c ific a tio n s and a c o n s tru c tio n tim eta b le . A ll c o n s tru c tio n p la n s , s p e c ific a tio n s a n d th e tim e ta b le sh all b e re v ie w e d a n d a p p ro v e d o r d isa p p ro v e d by th e A irp o rt M a n a g e r , a n d t h e D o ñ a A n a C o u n ty P la n n in g , B u ild in g In sp e c tio n an d E n g in e e rin g D e p a r tm e n ts p r i o r t o im p le m e n ta tio n . C. Construction S t a n d a r d s : T h e im p ro v e m e n ts to b e c o n s tru c te d o n th e le a se d p r e m is e s sh all c o n f o r m t o t h e D e v e lo p m e n t P la n tim e ta b le re q u ire d b y th e L e s s o r a n d sh a ll b e a c c o m p lis h e d in a g o o d a n d w o r k m a n lik e m a n n e r, in a c c o rd a n c e w ith th e p lan s a n d s p e c ific a tio n s a p p r o v e d b y t h e L e s s o r ; in a c c o r d a n c e w ith C o u n ty a n d S ta te B u ild in g C o d e s; p u rs u a n t to a B u ild in g P e r m it to b e o b ta in e d f r o m th e D o ñ a A n a C o u n ty B u ild in g In sp e c tio n D e p a rtm e n t o r th e S ta te C o n s tr u c tio n I n d u s tr ie s D iv is io n a n d a c c o rd in g t o th e c u s to m a ry term s an d c o n d itio n s th e r e o f; in a c c o r d a n c e w ith t h e te r m s , c o n d itio n s a n d r e q u ire m e n ts o f this L e a se ; an d in a m an n er c o n sisten t w ith S ta te a n d F e d e r a l r e q u ir e m e n ts a n d su b je c t to th e re q u ire m e n ts o f th e C o u n ty , D. H o l d H a r m l e s s , I n d e m n i f y a n d D e f e n d : L e s s e e a g re e s to hold h arm less, indem nify, a n d d e fe n d L e s s o r , its a g e n t o r p u b lic e m p lo y e e s , a g a in s t liability claim s, dam ag es, losses o r ex p en ses, in c lu d in g a tto r n e y fe e s , a ris in g o u t o f b o d ily in ju ry to p e rs o n s o r d a m a g e to real p r o p e r ty o r im p r o v e m e n ts t o r e a l p r o p e r ty , c a u s e d b y o r r e s u ltin g jr o m , in w h o le o r in p a rt, th e n eg lig en ce, a c t o r o m is s io n o f th e L e s s e e , its a g e n ts o r a n y legal e n tity f o r w h o s e n e g jg e n c e 7 a c T ro 7 o m is s io n s a H y o f th e m m a y b e lia b le . I n c o r p o r a t e d h e re in , h o w e v e r, a r e th e term s an d c o n d itio n s o f S e c tio n 5 6 -7 -1 , N M S A . T h is H o ld H a r m le s s p r o v is io n is to b e r e a d an d c o n s tru e d c o n s is te n t w ith th a t s ta tu to r y s e c tio n . T h e L e s s e e 's a g re e m e n t to h o ld h a rm le ss, in d em n ify a n d d e fe n d th e L e s s o r shall n o t be a ff e c te d o r te r m in a te d b y t h e c a n c e lla tio n , e x p ira tio n o f th e term o r an y re n e w a l o r a n y o th e r m o d ific a tio n o f th e C o n t r a c t f o r a n y re a s o n a n d shall s u rv iv e th e can cellatio n , e x p ira tio n o f th e te rm o r a n y re n e w a l o r a n y o t h e r m o d if ic a tio n o f th is c o n tra c t. Santa Teresa Hangar Association. Lease Lot T-l 1 ‘ * 84/61/2865 16:35 9158527773 PAGE E15 E. INSURANCE: Lessee; agrees that it will at all times during the term of this Lease, at its own costs and expense. provide and keep in force a policy or policies of insurance as follows: Comprehensive General Liability, including at least Bodily Iniury (including death) 8: Property Damage Liability. Premises, Product Liability. Hangar Keeper?s Liability. Service Vehicle Liability. and Contractual Liability. with a single limit of no less than $1,050,000. Inaurance against loss or damage by ?re, lightning, tornado, Windstorm. hail. earthquake, explosion. riot, civil commotion, extended coverage and vandalism. covering all improvements on the leased premiSes in an amount not less than ninety percent of suCh improvements. but not to exceed one hundred titty percent (150%) of the original cost. Ifany of the above coverage is unobtainable by Lessee for a reasonable price, then said coverage may be modi?ed in the policy upon written approval of the County Risk Manager; said written approval shall not be unreasonably withheld. Lessee shall at all times maintain adequate Workers' Compensation insurance in accordance with any present or future state law with an authorized insurance company, or through the New Mexico State Compensation Insurance Fund, or through a self-insurance program approved by the State of New Mexico, insuring the payment ofWorkers? Compensation to all its employees at the Airport. All policies ofinsuranee required herein except Workers' Compensation shell name Lessor as an additional insured and shall be in a form and. issued by a company or companies approved by the County Risk Manager and qualified to do business in the State (>wa Mexico. Each such policy shall provide that such policy may not be materially changed, altered, or canceled by the insurer during its term without ?rst giving thirty (30) days written notice by registered mail, return receipt requested. to both the County Airport Manager and County Risk Manager. All such policies of insurance, or certi?ed copies thereof. shall be delivered to and left in the possession of the County Risk Manager and aU subsequent policies shall be delivered to the County Risk Monger at least ten {10) days before the expiration of existing policies. The Lessee shall have and keep in force contractual liability insurance or perfonnance/completion bonds as may be reasonably requested by the County Risk Manager from time to time during this Lease in amounts necessary to insure the performance of the contract whichis the subject of the Risk ?Manager's request. The contracting for such insurance by Lessee does not in any way limit. modify or negate the Lessee?s agreement to hold harmless, indemnify and defend the Lesser as set forth elsewhere in this Lease. Lessee shall not violate the terms or prohibitiOns of any insurance policy herein required to be ?irnished by Lessee. and Lessee shall notify the Lesser of any claim or loss exceeding the amount of the deductible under said insurance policy or policies, and certify that proper notice has been given to the appropriate insurance carrier. The Lessor shall not be under any obligations to prosecute, settle or adjust any claim which may accrue under any such policy of insurance lodged with the Lessor. It is agreed by and between the Lessor and Lessee that, in the event of a partial or total destruction of the improvements located upon the leased premises by any casualty insured against, the proceeds of the aforementioned insurance policy or policies shall be devoted exclusively to the repair or replacement of said improvements. This Lease shall terminate if such Santa Teresa Hangar Association. Lem Lat T-tl W37 M. at. 0 4 /0 1 /2 0 0 5 I S : 05 9158527773 PAGE 06 im p r o v e m e n ts a re n o t re p a ire d o r re p la c e d w ith in e ig h t (8 ) m o n th s f ro m th e d a te o f th e e v e n t o f a p a rtia l o r t o ta l d e s tr u c tio n . (i) T h e L e s s e e shall re q u ire th e C o n tr a c to r to fu rn is h (a ) g e n e ra l liability in s u r a n c e in s u c h a m o u n ts a s r e q u ir e d by th e N e w M e x ic o T o rt C la im s A c t a n d (b ) c o n tra c tu a l lia b ility in s u r a n c e a n d /o r p e rf o r m a n c e a n d c o m p le tio n b o n d s in a m o u n ts su ffic ie n t to p a y th e c o s t o f c o m p le tio n o f all in te n d e d im p ro v e m e n ts . F. O t h e r C o n s tru c tio n C o n tr a c t R e q u ire m e n ts : L e s s e e sh all a ls o in clu d e in any c o n s tr u c tio n c o n tr a c t s u c h p r o v is io n s a s m ay b e re q u ire d by L e s s o r re la tin g t o th e o p e ra tio n s o f th e C o n t r a c t o r o n th e A ir p o r t. I t is f u r th e r a g re e d and u n d e rs to o d th a t all c o n s tr u c tio n c o n tra c ts and s u b c o n tr a c ts fo r an y im p r o v e m e n ts , re p la c e m e n ts , r e p a irs o r re n e w a ls , c o n s tr u c te d h e re u n d e r a re s u b je c t t o th e s ta n d a r d s , r e s o lu tio n s , ru le s a n d re g u la tio n s o f C o u n ty a n d /o r th e S ta te o f N e w M e x ic o , a n y an d all F e d e r a l A v ia tio n A d m in is tra tio n ru le s a n d re g u la tio n s , th e S a n ta T e re s a A irp o rt D e v e lo p m e n t G u id e lin e s , a n d th e D o ñ a A n a C o u n ty M in im u m S ta n d a r d s fo r C o m m erc ia l A e r o n a u tic a l A c tiv itie s a t S a n ta T e r e s a A irp o rt. P r io r to th e c o m m e n c e m e n t o f any c o n s tru c tio n L e s s e e sh all p ro v id e L e s s o r , a c o p y o f all c o n s tru c tio n c o n tra c ts le t in c o n n e c tio n w ith th e le a se d p re m is e s . G. C o m p l e t i o n : W h e n th e im p ro v e m e n ts h a v e b een c o m p le te d , L e s s e e shall d e liv e r to L e s s o r a c e rtif ic a te o f a n a rc h ite c t o r s tru c tu ra l e n g in e e r lic e n sed to p r a c tic e in th e S ta te o f N e w M e x ic o a n d fa m ilia r w ith th e c o n s tr u c tio n o f said im p ro v e m e n ts , c e rtify in g th a t th e im p ro v e m e n ts h a v e b e e n c o n s tr u c te d in a c c o r d a n c e w ith th e a p p ro v e d p lan s a n d s p e c ific a tio n s and in s tric t c o m p lia n c e w ith all F e d e r a l, S ta te a n d C o u n ty ru les, re g u la tio n s , s ta n d a r d s , re s o lu tio n s , g u id elin es, la w s, o r d in a n c e s , o r d e r s a n d b u ild in g c o d e s a n d c e rtify in g th a t in th e e n g in e e r's o r a rc h ite c t's o p in io n s u c h im p r o v e m e n ts h a v e a n e x p e c te d u se fu l life o f a d u ra tio n w h ic h is c u s to m a ry fo r su c h im p r o v e m e n ts u n d e r sim ila r c o n d itio n s a n d c irc u m s ta n c e s . L e s s e e sh all p a y fo r all n e c e ssa ry e n g in e e r in g te s tin g a s r e q u ir e d b y th e C o u n ty E n g in e e r. I f re q u ire d te s tin g in d ic a te s that constru ctio n is n o t m e e tin g r e q u ir e d s p e c ific a tio n s o r e n g in e e rin g s ta n d a rd s, th e n le s s e e shall re c o n s tru c t su ch c o n s tr u c tio n . C o p ie s o f all te s tin g r e s u lts shall be p ro v id e d im m e d ia te ly t o th e C o u n ty E n g in e er. H. P e r f o r m a n c e : L e s s e e shall b eg in c o n s tru c tio n n o la te r th a n n in e ty (9 0 ) d ay s a fte r e x e c u tio n o f th is L e a s e b y L e s s o r a n d shall c o m p le te s u c h c o n s tr u c tio n w ith in 365 d ay s a fte r e x e c u tio n o f th is L e a s e b y L e s s o r. L e s s e e shall c o n fo rm to th e d e a d lin e s a n d th e tim e ta b le a p p ro v e d b y L e s s o r f o r b u ild in g im p r o v e m e n ts u p o n th e lea se d p re m ise s su b je c t, h o w e v e r, t o reasonable delays c a u s e d b y a n y a c t o f L e s s o r o r b y w e a th e r c o n d itio n s , strik es, lo c k o u ts , fire, u n u su a l d elay s b y c o m m o n c a rrie rs , a c ts o f G o d , o r a n y c a u s e b e y o n d L e s s e e ’s c o n tro l. I. O w n e r s h i p a n d R e m o v a l o f I m p r o v e m e n ts : E x c e p t a s o th e r w is e m u tu ally ag reed b y th e p a r tie s , all a lte r a tio n s a n d im p ro v e m e n ts m a d e to o r p lac e d in th e p re m ise s by L e sse e a re and sh all r e m a in L e s s e e 's p r o p e r ty i f s u c h a lte ra tio n s o r im p ro v e m e n ts c a n b e re m o v e d w ith o u t u n d u e d a m a g e to th e p r e m is e s a n d a re , in fa c t, rem o v e d b y th e L e s s e e p r io r t o th e term in a tio n o f this A g r e e m e n t o r w ith in a r e a s o n a b le tim e a f te r te rm in a tio n . E x c e p t a s o th e r w is e m u tu a lly agreed b y the p a r t i e s , a lte r a tio n s a n d im p r o v e m e n ts o f a p e rm a n e n t n a tu r e w h ic h c a n n o t b e rem o v ed w ith o u t u n d u e d a m a g e t o th e p r e m is e s shall im m e d ia te ly b e c o m e th e L e s s o r's p r o p e r ty . J. A l t e r a t i o n o f C o n s t r u c t i o n P la n s : T h e im p ro v e m e n ts to b e c o n s tru c te d o n th e le a s e d p r e m is e s m a y n o t b e s tr u c tu r a lly c h a n g e d o r a lte re d b y L e s s e e u n le s s th e p lan s and s p e c if ic a tio n s fo r th e s tr u c tu r a l c h a n g e o r a lte ra tio n a r e first a p p ro v e d in w r itin g b y th e L e s s o r w h ich a p p r o v a l w ill n o t b e u n r e a s o n a b ly w ith h e ld , 5. U S E R E S T R IC T IO N S : S a n ta T e r e s a H a n g a r A s s o c ia tio n . Lease Lot T -l 1 / h a g /< ) ,) $ '0 4 /0 1 /2 0 0 5 1 6 :0 5 9158527773 PAbt 07 9 A- P e r m i t t e d U s e s : T h e le a se d p re m is e s a re lo c a te d w ith in th a t p o rtio n o f th e S a n ta T e re s a A ir p o r t d e s ig n a te d an d r e s e r v e d f o r g e n e ra l a v ia tio n . O n ly u s e s c o n s is te n t w ith th a t d e s ig n a tio n a n d r e s e r v a tio n a n d w ith th e A ir p o r t M a s te r P la n shall b e p e rm itte d o n th e leased p rem ise s. T h e le a s e d p re m is e s a n d /o r im p r o v e m e n ts th e re o n shall o n ly b e u s e d fo r a irc ra ft sto ra g e , pilot e d u c a tio n , a n d a irc ra ft b u ild e r e d u c a tio n . T h e le a se d p rem ise s a n d t h e im p ro v e m e n ts t o be c o n s tr u c te d th e r e o n a r e in te n d e d to b e fo r-p ro fit a n d u tilized so le ly fo r th e p u r p o s e s sp e c ifie d in this p a ra g ra p h . B. P r o h ib ite d U ses: A ll u se s, e x c e p t th o s e u s e s specifically lis te d in P a r a g r a p h 5.A . ab o v e, a r e p r o h ib ite d . C. N o I m p l i e d U se s: L e s s e e sh all a c q u ir e n o rig h t to u tiliz e th e le a se d p re m ise s o r th e im p ro v e m e n ts th e r e o n o th e r th a n a s s p e c ific a lly a llo w e d u n d e r th is p a ra g ra p h , a s m ay b e a m e n d e d . 6. M A IN T E N A N C E O B L IG A T IO N S : A. L e s s e e , a t its o w n e x p e n s e , sh a ll k e e p th e leased p re m is e s a n d im p ro v e m e n ts, in clu d in g w a te r , s e p tic ta n k s , s e w e r a n d w a s te w a t e r d ra in lines, b a rrie r fen ces, au to /p e d estria n access w ay s, tre n c h d ra in s a n d u tilitie s, u p o n a n d w ith in th e le a se d p re m ise s in g o o d r e p a ir and m aintenance, an d in a s a fe , s a n ita ry , o rd e rly a n d s ig h tly c o n d itio n . S u c h lea se d p re m ise s a n d im p ro v em en ts shall be a t all tim e s m a in ta in e d in c o m p lia n c e w ith all F e d e ra l, S ta te a n d /o r C o u n ty ru le s , re g u la tio n s , o rd e rs , b u ild in g c o d e s , o r d in a n c e s a n d la w s , a s m ay b e a d o p te d , a m e n d e d o r m o d ifie d fro m tim e to tim e. L e s s e e sh a ll m a in ta in t h e s e c u rity o f th e le a s e d p re m is e s a n d /o r im p ro v e m e n ts. B, L e s s e e sh all b e r e s p o n s ib le f o r re m o v a l o f all w a s te s fro m th e leased p re m ise s at L e s s e e 's e x p e n s e . L e s s e e sh all n o t p e rm it ru b b is h , d e b ris, w a s te m a te ria ls o r a n y th in g o b n o x io u s o r d e trim e n ta l to s a fe ty o r h e a lth o r lik e ly t o c r e a te o b je c tio n a b le o d o rs, a fire h a z a rd , o r c o n d u c iv e to d e te rio ra tio n , t o r e m a in o n an y p a r t o f t h e le a s e d p re m is e s a n d /o r im p ro v e m e n ts o r to b e d isp o s e d o f im p ro p e rly . T h e L e s s e e shall n o t p e r m it a n y w a s te s , liq u id s, o r o th e r m a te ria l to b e c o m e a p a rt o f the e fflu en t t o t h e L e s s e e 's s e p tic ta n k , a n y s e w a g e p la n t o r o th e r se p tic ta n k s y s te m w h ich w o u ld cau se m a lfu n c tio n o f a n y s e p tic ta n k , p la n t e q u ip m e n t o r o th e r s e p tic ta n k s y ste m o r im p e d e th e n o rm al ch em ical a n d b io lo g ic a l w o r k in g s o f a n y p la n t o r s e p tic ta n k p ro c e s s sy ste m . L e s s e e shall a ls o be r e s p o n s ib le f o r c o n tr o l o f a n im a ls a n d r o d e n t, in s e c t and b ird elim in atio n u p o n th e lea se d p rem ises. 7. S I G N S : L e s s e e sh all n o t e r e c t, p a in t o r m a in ta in a n y sig n (s) a n d /o r a d v e rtisin g d isp lay (s) w h a ts o e v e r, u p o n th e le a s e d p re m is e s w ith o u t firs t s e c u rin g th e w ritte n c o n s e n t o f th e L e sso r, Signs m u st b e in c o m p lia n c e w ith th e L e s s o r 's sig n o rd in a n c e . 8. T A X E S , L IC E N S E S A N D L IE N S : A. L e s s e e c o v e n a n ts a n d a g re e s t o p r o m p tly p ay w h e n d u e all v alid tax e s, special a s s e s s m e n ts , e x c is e s , lic e n s e fee s a n d p e rm it fe e s o f w h a te v e r n a tu re a p p lic a b le to its o p e ra tio n or le v ie d o r a s s e s s e d a g a in s t le a s e d p r e m is e s in c lu d in g p e rs o n a l p ro p e rty ta x e s o n im p ro v e m e n ts to the leased p re m is e s a n d a n y a n d all u tility a n d /o r in f r a s tr u c tu re im provem ent a ssessm en ts applicable either to th e le a s e d p r e m is e s o r a p r o r a ta s h a r e (b a s e d o n L e s s e e 's p e rc e n ta g e sh a re o f th e to tal rentable land w ith in t h e A ir p o r t) o f s u c h A irp o rt a s s e s s m e n ts . S u c h im p ro v e m e n ts m u st b e n e fit all te n a n ts at the A irp o rt a n d m u s t b e a p p r o v e d b y th e C o u n ty , a f te r n o tic e to L e s s e e an d o th e r te n a n ts, p u rs u a n t to a p p lic a b le ru le s , r e g u la tio n s an d s ta tu te s . L e s s e e f u rth e r c o v e n a n ts an d a g re e s to ta k e o u t an d keep c u rre n t all lic e n s e s ( C o u n ty , S ta te a n d F e d e ra l) re q u ir e d f o r th e c o n d u c t o f its b u sin ess at and u p o n Santa Teresa Hangar Association. Lease Lot T-l t 0 4 /0 1 /2 0 0 5 I S : 05 H A bt 9158527773 ÜB th e A ir p o rt, a n d f u r t h e r a g r e e s n o t to p e rm it a n y o f s a id tax es, ex cises o r lic e n se fe e s to k n o w in g ly b e c o m e d e lin q u e n t. B. L e s s e e s h a ll f u rn is h to th e L e s s o r, u p o n re q u e s t, d u p lic a te re c e ip t o r o th e r satisfactory e v id e n c e s h o w in g t h e p r o m p t p a y m e n t by it o f S o c ia l S e c u rity taxes, U n e m p lo y m e n t C o m p e n s a tio n tax e s, all r e q u ir e d lic e n s e s , a n d all o th e r ta x e s. C. L ie n s : L e s s e e a lso c o v e n a n ts a n d a g r e e s n o t to perm it any m ech an ic's o r m aterialm an's lie n (s) o r o t h e r lie n (s ) t o b e fo re c lo s e d u p o n th e le a s e d p rem ises a n d /o r L e s s e e 's im p ro v e m e n ts th e re o n , a n d /o r a n y p a r t o f th e A irp o rt th e re o f, b y re a s o n o f any w o r k o r la b o r p e rfo rm e d , or m a te ria ls f u rn is h e d b y a n y m e c h a n ic , m a te ria lm a n o r th e like, if th e re is an y a u th o rity allo w ed by state la w to f o r e c lo s e s u c h lie n s a g a in s t L e s s o r p r o p e r ty in c lu d in g , but n o t lim ited to , th e le a se d p rem ise s a n d /o r th e A ir p o r t. L e s s e e f u rth e r c o v e n a n ts a n d a g r e e s to pay p ro m p tly w h e n d u e , all bills, debts, a n d o b lig a tio n s in c u r r e d b y it in c o n n e c tio n w ith its o p e ra tio n s on th e le a se d p re m ise s , a n d n o t to p e rm it th e s a m e t o b e c o m e d e lin q u e n t and to p r o te c t th e L e s s o r fro m , an d to suffer n o lien, m o rtg ag e, ju d g m e n t o r e x e c u t io n t o b e filed a g a in st th e le a s e d p re m is e s a n d /o r L e s s e e 's im p ro v e m e n ts th e re o n a n d /o r a n y p a r t o f t h e A ir p o r t th e re o f, if th e r e is a n y a u th o rity a llo w e d by s ta te la w to file such a g a in st L e s s o r p r o p e r t y in c lu d in g , b u t n o t lim ite d to , th e leased p re m ise s a n d /o r th e A irp o rt. T he L e s s o r d o e s n o t g r a n t c o n s e n t f o r a n d /o r d o e s n o t w a iv e so v e re ig n im m u n ity fro m any a n d all such lie n (s), m o r t g a g e s ) , j u d g m e n t( s ) , f o r e d o s u r e ( s ) , s u it( s ) , a n d /o r e x e c u tio n (s ) a g a in s t th e L e s s o r a n d /o r L e s s o r p r o p e r t y , in c lu d in g b u t n o t lim ite d to , th e leased p re m ise s a n d /o r th e a irp o rt. 9. I N D E P E N D E N T C O N T R A C T O R : N o th in g in th is L ease C o n tra c t is in te n d e d , o r should b e c o n s tr u e d in a n y w a y , t o c r e a te o r e sta b lish a p a rtn e rs h ip re la tio n sh ip b e tw e e n th e p a rtie s o r to e s ta b lis h L e s s e e a s a n a g e n t, re p r e s e n ta tiv e o r e m p lo y e e o f th e C o u n ty f o r a n y p u rp o se o r any m anner w h a ts o e v e r. L e s s e e a n d its e m p lo y e e s shall n o t a c c r u e leav e, re tire m e n t, in su ra n c e , o r a n y o th e r b e n e fits a f f o r d e d t o e m p lo y e e s o f th e C o u n ty . T h e L e sse e , its o fficers, d ire c to rs , e m p lo y ees, se rv a n ts, a g e n ts , o r r e p r e s e n ta tiv e s a r e n o t a n d sh all n o t b e d e e m e d e m p lo y e es o f th e co u n ty and shall n o t b in d th e C o u n t y in a n y r e s p e c t. 10. S O V E R E IG N IM M U N IT Y : B y e n te r in g in to th is L e a se C o n tra c t, th e C o u n ty a n d its "p u b lic e m p lo y e e s " a s d e fin e d in th e N e w M e x ic o T o r t C laim s A ct, su p ra , d o n o t w a iv e so v e re ig n im m u n ity , d o n o t w a iv e a n y d e fe n s e , a n d d o n o t w a iv e a n y lim itatio n s o f liab ility p u rs u a n t to law . N o p ro v is io n in th is C o n t r a c t m o d ifie s o r w a iv e s a n y p r o v is io n o f the N e w M e x ic o T o r t C la im s A ct, s u p ra . U. P U B L I C E M P L O Y E E S : A s u sed in th is L e a s e , "p u b lic em p lo y ees" as d e fin e d in th e N e w M e x ic o T o r t C la im s A c t, m e a n s any o ffic er(s), e m p lo y e e ^ ) , se rv a n t(s) o f th e L e s s o r, in clu d in g e le c te d o r a p p o in te d o f fic ia ls , la w e n fo rc e m e n t o f fic e r s a n d p e rso n s ac tin g on b e h a lf o r in s e rv ic e o f th e L e s s o r in a n y o f fic ia l c a p a c ity , w h e th e r w ith o r w ith o u t c o m p e n sa tio n an d a ls o in c lu d in g the a p p o in te d o ffic ia ls o f t h e D o ñ a A n a C o u n ty S a n ta T e r e s a A irp o rt B oard o r C om m issio n and th e D o n a A n a C o u n ty S a n ta T e r e s a A irp o rt A rc h ite c tu ra l C o n tr o l C o m m itte e , but th e te rm d o e s n o t include an in d e p e n d e n t c o n tr a c t o r ( s ) . 12. P E R S O N A L L I A B I L I T Y : N o e le c te d o r a p p o in te d official, em ployee, serv an t, ag e n t o r Jaw e n fo rc e m e n t o f f ic e r o f t h e C o u n ty shall be h eld p e rs o n a lly liable u n d e r th is L e a s e o r an y e x te n s io n or re n e w a l t h e r e o f b e c a u s e o f its e n fo rc e m e n t o r a tte m p te d e n fo rc e m e n t, p ro v id e d th ey are actin g w ithin th e c o u r s e a n d s c o p e o f th e ir e m p lo y m e n t o r G o v e r n m e n ta l d u ty and resp o n sib ility . S a n ta T e r e s a H a n g a r A s s o c ia tio n . L ease L ot T -11 * 0 4 / 0 1 /2 0 0 5 13. 1 6 :0 5 9158527773 T H I R D P A R T Y B E N E F I C I A R Y : It is a g re e d b e tw e e n th e p a rtie s e x e c u tin g th is C ontract th a t it is n o t in te n d e d b y a n y o f th e p r o v is io n s o f th e C o n tra c t to c re a te o n b e h a lf o f th e p u b lic o r any m e m b e r t h e r e o f t h e s ta tu s o f th ird p a r ty b e n e fic ia ry o r to a u th o r iz e a n y o n e n o t a p a rty to the A g r e e m e n t to m a in ta in a s u it f o r w r o n g f u l d e a th , p e rs o n a l injury, p r o p e r ty d a m a g e o r any o th e r claim o r c a u s e o f a c tio n w h a ts o e v e r . 14. IN C O N V E N IE N C E D U R IN G C O N S T R U C T IO N A N D R E L O C A T IO N : A. A i r p o r t E x p a n s i o n a n d C o n s t r u c t i o n : L e s s e e re c o g n iz e s th a t fro m tim e t o tim e d u rin g th e te rm o f th is L e a s e it w ill b e n e c e s s a ty fo r th e L e s s o r to in itia te a n d c a rry fo rw a rd extensive p r o g r a m s o f c o n s tr u c tio n , r e c o n s tru c tio n , e x p a n sio n , re lo c a tio n , m a in te n a n c e a n d rep air in o rd e r that th e A ir p o r t a n d its fa c ilitie s m a y b e s u ita b le fo r th e v o lu m e a n d c h a r a c te r o f a ir tra ffic a n d flight a c tiv ity w h ic h w ill r e q u i r e a c c o m m o d a tio n . S u c h c o n s tru c tio n , re c o n s tru c tio n , expansion, relocation, m a in te n a n c e , a n d r e p a ir m ay in c o n v e n ie n c e o r te m p o ra rily in te r ru p t L e s s e e in its o p e ra tio n at the A irp o rt. T h e L e s s o r r e s e r v e s th e rig h t t o f u rth e r d e v e lo p o r im p ro v e th e A irp o rt as it se es fit, and w ith o u t u n r e a s o n a b le in te r fe re n c e o r h in d ra n c e fro m L essee. JB. R e lo c a tio n : I f Lhe p h y s ic a l d e v e lo p m e n t o f th e A ir p o r t re q u ire s th e relo c atio n , r e m o v a l o r a lte r a tio n o f L e s s e e 's fa c ilitie s , th e L e s s o r a g re e s to p ro v id e a c o m p a ra b le lo catio n w ithout a n y u n r e a s o n a b le i n te r r u p tio n to th e L e s s e e 's a c tiv itie s. T h e L e s s o r a g r e e s to r e lo c a te all facilities, im p r o v e m e n ts a n d b u ild in g s fro m w ith in th e le a se d p re m ise s to th e c o m p a ra b le p re m ise s at n o co st to th e L e s s e e . I f s u c h r e lo c a tio n o f fa c ilitie s is im p ra c tic a l, L e s s o r sh all c o n s tr u c t c o m p a ra b le facilities o n s u c h n e w lo c a tio n . In th e a lte r n a tiv e , L e s s o r shall h a v e th e o p tio n t o te r m in a te th e le a se if th e cost to c o n s tr u c t c o m p a r a b le fa c ilitie s is d e e m e d e x c e s s iv e by th e L e s s o r. L e s s e e a g re e s th a t L e s s o r shall n o t b e lia b le f o r c la im s o r d a m a g e s b y r e a s o n o f s u c h in c o n v e n ie n c e o r in te rru p tio n . 15. P R O H IB IT IO N A G A IN S T L E A S E H O L D P L E D G E A N D A S S IG N M E N T : A. G e n e r a l A s s i g n m e n t s P r o h i b i t e d : L e s s e e shall n o t a s sig n n o r d e le g a te L essee rights a n d o b lig a tio n s , a n y in te r e s t in th is c o n tr a c t, o r tra n s fe r an y in te re s t o r a s s ig n a n y c la im s f o r m o n ey d u e o r t o b e c o m e d u e u n d e r th is le a s e w ith o u t th e w r itte n c o n s e n t o f th e L e s s o r. B. M o r t g a g e s a n d C o n s t r u c t i o n F i n a n c i n g ; U n le ss th e L e s s o r p re v io u s ly c o n sen ts in w ritin g , w h ic h c o n s e n t w ill n o t b e u n re a s o n a b ly w ith h e ld o r d e la y e d , L e s s e e shall n o t pled g e, m o r tg a g e , a lie n a te , h y p o th e c a te , o r o th e r w is e e n c u m b e r th e L e a s e o r an y in te r e s t th ere in o r g ra n t o r g iv e a n y o th e r s e c u r ity in te r e s t in th e le a s e d p re m ise s, v o lu n ta rily o r by o p e r a tio n o f law , excep t ifth e L e s s o r a g re e s to th e c o n s tr u c tio n o f im p ro v e m e n ts o n th e le a se h o ld by L e s s e e , th e L e sso r, u p o n r e q u e s t b y th e L e s s e e , sh all p e rm it L e s s e e to e n c u m b e r th e lea se h o ld in te r e s t g ra n te d by the L ease for th e p u r p o s e o f f in a n c in g su c h im p r o v e m e n ts , in a m a n n e r a c c e p ta b le to th e L e s s o r, b u t only o n the le a s e d p re m is e s o n w h ic h sa id im p r o v e m e n ts a re to b e c o n s tru c te d ; in w h ic h c a se , th e L e s s o r ag rees th a t th is L e a s e sh a ll b e s u b o r d in a te to th e c o n s tru c tio n a n d p e rm a n e n t fin an cin g o f such im p ro v e m e n ts . P r o v id e d , h o w e v e r , th a t in th e e v e n t o f a f o re c lo s u r e o f a n y m o rtg a g e o r o th er s e c u r ity d o c u m e n t g r a n te d b y L e s s e e c o n c e r n in g all o r any p a rt o f th e le a s e d p re m ise s c re a te d by this L e a s e , t h e f o re c lo s in g p a r ty fo llo w in g s u c h fo re c lo s u re shall h a v e n o g r e a te r rig h ts w ith respect to the le a s e d p re m ise s th a n a r e g r a n te d to L e s s e e u n d e r th is L e a s e an d all o th e r o p e ra tio n s , i f any, c o n d u c te d b y th e s e c u r e d f o re c lo s in g p a rty shall b e c o n s is te n t w ith th e te r m s , c o n d itio n s , co v e n an ts a n d a g re e m e n ts o f t h is L e a s e . A n y m o rtg a g e o r se c u rity d o c u m e n t g iv e n b y L e s s e e shall p ro v id e that all n o tic e s o f d e fa u lt r e q u ir e d t o b e g iv e n to L e s s e e by th e h o ld e r h e r e o f shall a lso b e given to the S a n ta T e r e s a H a n g a r A s s o c ia tio n . Lease Let T-l J 0 4 /0 1 / 2 0 0 5 1 5 :0 5 S I 58527 / f 'J L e s s o r . S h o u ld L e s s o r la te r a g re e t o a m e n d th is L e a s e to perm it an a ssig n m e n t o f th is L e a s e , as a c o n d itio n t o th e L e s s o r's c o n s e n t to th e L e s s e e to a ssig n th is L e a se, L e s s o r shall h av e th e rig h t to in c r e a s e th e B a s e L a n d R e n ts , c o m p e n s a tio n a n d o th e r fees. 16. S U B L E A S E S : I f L e s s e e d e s ir e s to s u b le a s e a n y p o rtio n o f its h a n g a r sp a c e to a n o th e r entity, L e s s e e shall: A. O b ta in w r itte n a p p ro v a l fro m th e L e s s o r f o r th e in te n d e d s u b le a s e a c tiv ity a n d the f o r m o f th e s u b le a s e a g re e m e n t sh all a ls o b e a p p ro v e d by th e L e s s o r p r io r t o th e e x e c u tio n o f su c h s u b le a s e . B. I n s u r e th a t S u b le a s e s c o n ta in all th e te rm s a n d c o n d itio n s o f th is L e a s e a s a m inim um , b u t s h a il p r o h ib it f a r th e r s u b le a s e s . S u b le a s e s sh all b e s u b o rd in a te to a n d s u b je c t to th is L e a se . C. N o t b e re lie v e d o f a n d fro m its d u tie s , liab ilities and o b lig a tio n s u n d e r th is L e a s e fo r t h e e n tir e p r e m is e s in c lu d in g th e s u b le a s e p a rt. 17, C A N C E L L A T I O N A N D T E R M I N A T I O N : A , T h e L e s s o r m ay can cel an d te rm in a te this L e a s e , a n d m a y r e p o s s e s s th e le a s e d p re m is e s , w ith o r w ith o u t p ro c e s s o f la w an d w ith o u t liability for in c lu d in g , b u t n o t lim ite d to , a n y o f th e fo llo w in g c irc u m s ta n c e s : ( i) . I n th e e v e n t a n y in sta llm e n t o f lan d ren tal, c o m p e n s a tio n , fee s a n d /o r o th e r p a y m e n t p r o v id e d fo r h e re in is in a r r e a r s a n d re m a in s u n p a id fo r a p e rio d o f th irty (3 0 ) d a y s a fte r th e s a m e is d u e , u p o n g iv in g te n ( 1 0 ) d a y s w r itte n n o tic e to L e s s e e o f its in te n tio n to so te rm in a te , at th e e n d o f w h ic h tim e all th e r ig h ts o f L e s s e e h e re u n d e r sh a ll te rm in a te u n le ss su c h p a y m e n t, w h ic h shall h a v e b e e n s ta te d in s u c h n o tic e , sh all h a v e b e e n p a id w ith in su ch te n (1 0 ) d ay s; p ro v id e d , h o w e v e r, L e s s e e w ill b e a llo w e d o n ly tw o (2 ) s u c h n o tic e s w ith in a n y tw e n ty -fo u r ( 2 4 ) m o n th p e rio d t o c u re w itiiin t h e tim e sp e c ifie d in th is p a ra g ra p h . T h e th ird s u c h n o tic e in an y tw e n ty -fo u r (2 4 ) m o n th p e r i o d sh a ll b e final a n d sh a ll c a n c e l a n d te r m in a te all o f th e rig h ts h e re u n d e r o f L e s s e e w ith o u t any r ig h t o n th e p a r t o f L e s s e e t o c u r e s u c h d e fa u lt a fte r re c e iv in g su c h n o tic e . (ii) In th e e v e n t o f a n y o th e r d e fa u lt o f L e s s e e as t o th e te rm (s ), c o n d itio n s ) , a g r e e m e n t( s ) a n d /o r c o v e n a n t( s ) o f th is L e a s e , u p o n g iv in g th irty (3 0 ) d a y s w r itte n n o tic e to L e s s e e to c u r e th e d e fa u lt o r s u ff e r te r m in a tio n , a t th e e n d o f w in c h tim e all rig h ts o f L e s s e e h e re u n d e r shall b e te r m in a te d u n le s s th e d e fa u lt s p e c ifie d in s u c h n o tic e shall h av e b een c u re d w ith in said th irty (3 0 ) d a y s , o r u n le s s L e s s e e shall ta k e d ilig e n t s te p s , a s d e te rm in e d by th e L e s s o r, to c u re s u c h d e fa u lt d u r in g sa id p e rio d . (ü i) In th e e v e n t L e s s e e shall e n g a g e in any activ ity o r p ra c tic e (e x c e p t as s p e c ific a lly p e rm itte d h e re in ) w h ic h h in d e rs o r in te rfe re s w ith th e p r o p e r u s e a n d o p e ra tio n o f the A ir p o r t, th e n th e L e s s o r m ay o r d e r L e s s e e to f o rth w ith c e a s e an d desist fro m su c h activ ity o r p ractice a n d s h o u ld L e s s e e fail o r r e f ijs e to c o m p ly w ith an y s u c h o rd e r, th e L e s s o r m ay, a t its o p tio n , can cel a n d te r m in a te th is L e a s e . (iv ) U p o n o c c u r r e n c e o f an y o f th e fo llo w in g e v e n ts. L e s s o r m ay te rm in a te the L e a s e b y g iv in g th irty (3 0 ) d a y s w r i tte n n o tic e to L e s s e e o f its in te n tio n to te rm in a te th e C o n tra c t. (a ) I f th e L e s s e e shall a p p ly f o r o r c o n se n t to , in w ritin g o n b e h a lf o f L e s s e e b y a n y o f its a g e n ts o r its d u ly a u th o riz e d a tto rn e y , th e a p p o in tm e n t o f a rec e iv e r, tru s te e or liq u i d a t o r o f L e s s e e o r o f all o r a s u b s ta n tia l p a rt o f its a sse ts; (b ) I f th e L e s s e e sh all file a v o lu n ta ry p e titio n in b a n k ru p tc y , o r a d m it in w r itin g its in a b ility to p a y d e b ts a s th e y c o m e d u e ; S a n t a T e r e s a H a n g a r A s s o c ia tio n . Lease Lot t - i l I b 3 S 0 4 /0 1 / 2 0 0 5 I S : 05 PASE 9158527773 11 (c) I f th e L e s s e e sh all m a k e a g e n e ra l a s sig n m e n t fo r th e b e n e fit o f (d ) I f th e L e s s e e sh a ll file a p e titio n o r a n s w e r s e e k in g reo rg an izatio n o r a n c r e d ito r s ; a r r a n g e m e n t w ith c r e d ito r s o r to ta k e a d v a n ta g e o f an y insolvency law ; (e) I f th e L e s s e e sh all file a n a n sw e r a d m ittin g th e m a te ria l alleg atio n s o f a p e titio n filed a g a in s t L e s s e e in a n y b a n k ru p tc y , re o rg a n iz a tio n , o r in so lv e n c y p ro ceed in g s; o r i f d uring th e te r m o f th is L e a s e , an o rd e r, j u d g m e n t o r d e c r e e shall b e e n te re d by a n y c o u rt o f c o m p e te n t ju r i s d ic ti o n o n th e a p p lic a tio n o f a c r e d ito r a d ju d ic a tin g L e sse e b a n k ru p t o r a p p ro v in g a p e titio n s e e k in g r e o r g a n iz a tio n o f L e s s e e o r a p p o in tin g a re c e iv e r, tru s te e , o r liq u id a to r to m arsh a l all o r a s u b s ta n tia l p a r t o f its a s s e ts , an d su c h o rd e r, ju d g m e n t o r d e c re e shall c o n tin u e w ith o u t Stay a n d in e f f e c t f o r an y p e r io d o f n in e ty ( 9 0 ) c o n s e c u tiv e d a y s; (f) I f th e L e s s e e sh a ll h a v e its e s ta te h erein d iv e s te d b y o th e r o p e ra tio n o f (g ) I f th e L e s s e e sh all a b a n d o n its o p e ra tio n s o r c o n d u c t o f business o n the la w ; le a s e d p r e m is e s f o r s ix ty (6 0 ) d a y s; (h ) I f a f te r th e o c c u r r e n c e o f d a m ag e o r d e s tru c tio n , p a rtial o r total, to the im p r o v e m e n ts o n t h e le a s e d p re m ise s b y fire, th e e le m e n ts o r o th e r c a s u a lty to s u c h an e x te n t th at the L e s s e e is in c a p a b le o f r e p a irin g a n d /o r r e p la c in g s u c h im p ro v e m e n ts w ith in e ig h t (8 ) m o n th s. (v ) A b a n d o n m e n t D e fin e d ; A b a n d o n m e n t o f L e s s e e 's c o n d u c t o f b u sin e ss o r o p e r a t io n sh all o c c u r w h e n L e s s e e r e p o r ts n o g r o s s rec e ip ts o r fails to m a k e an y re n ta l p a y m e n t fo r g r o s s r e c e ip ts w h e n a n y p a y m e n t is d u e a fte r L e s s e e c o n s tru c ts its im p ro v e m e n ts , o r w h en th e L essee c e a s e s its b u s in e s s a c tiv itie s o r o p e r a tio n ( s ) a f te r c o n s tru c tio n o f th e im p ro v e m e n ts re q u ire d by this L ease. 18. O B L IG A T IO N S AND R IG H T S F O L L O W IN G C A N C E L L A T IO N AND T E R M IN A T IO N O R E X P IR A T IO N : A. E x c e p t a s o th e rw is e p ro v id e d h e re in , in th e ev en t o f c a n c e lla tio n a n d /o r term in atio n o f th is L e a s e b y th e L e s s o r , e x p ira tio n o f th e te r m o r a n y ren ew al, o r any o th e r te rm in a tio n , th e L e s s o r s h a ll have n o f u r t h e r o b lig a tio n s h e re u n d e r, a n d th a t L essee shall re m a in lia b le to L e s s o r f o r all d a m a g e s , r e n ta ls , c o m p e n s a tio n a n d o th e r fe e s a c c r u e d to th e d a te o f te rm in a tio n and fo r all dam ages, r e n ta ls , c o m p e n s a tio n a n d o th e r fe e s a c c ru e d d u rin g any p e rio d o f h o ld in g o v e r. B. C o n t i n u i n g H o ld H a r m l e s s a n d I n d e m n i ty O b lig a tio n s ; A n y an d all o f th e L e s s e e 's a g re e m e n ts to h o ld h a rm le ss, in d e m n ify an d d efen d to th e L e s s o r a n d /o r its "p u b lic e m p lo y e e s " a s d e fin e d in th e N e w M e x ic o T o r t C la im s A ct, shall n o t b e a ffe c te d o r te rm in a te d b y th e c a n c e lla tio n , e x p ir a tio n o f th e te r m o r a n y re n e w a l o r any o th e r te rm in a tio n o f th is L e a s e fo r any r e a s o n a n d sh a ll s u r v iv e th e c a n c e lla tio n , e x p ir a tio n o f th e te rm o r a n y re n e w a l o r any o th e r te r m in a tio n o f th is L e a s e . C. R i g h t t o P r e m is e s : U p o n th e e x p ira tio n o f th e term o r a n y re n e w a l, c a n c e lla tio n o r a n y o t h e r te r m in a tio n o f th is L e a s e , th e L e s s e e 's r ig h ts to th e leased p re m ise s , facilities, o th e r rig h ts, lic e n s e d s e rv ic e s a n d p riv ile g e s g r a n te d in th is L e a s e shall im m ed iately ce ase . 19. R I G H T S A N D R E M E D I E S C U M U L A T I V E : L e sso r shall h a v e all rig h ts an d rem e d ie s s p e c if ie d h e re in , a s w e ll a s any an d all r ig h ts a n d rem ed ies available to L e s s o r e ith e r u n d e r th e c o m m o n la w o r t h e la w s o f th e S ta te o f N e w M e x ic o . T h e rig h ts an d re m e d ie s o f th e L e s s o r u n d e r th is L e a s e a re c u m u la tiv e a n d a re n o t in te n d e d t o b e, an d shall n o t b e, e x c lu s iv e o f o n e a n o th e r. T h e L e s s o r sh a ll h a v e all r ig h ts a n d r e m e d ie s p ro v id e d h e re in (including th e r ig h t to ex ercise any landlord's Santa Teresa Hangar Association. Lease Lot T-11 /¿e83 0 < I/0 1 /2 0 0 5 1 6 :0 b PASE 9158527773 12 o r sim ila r lie n u p o n p r o p e r ty o f L e s s e e lo c a te d o n o r u se d in c o n n e c tio n w ith th e lea se d p re m ise s), a n d a ll s u c h r ig h ts a n d r e m e d ie s m a y b e e x e rc ise d b y t h e L e s s o r. N e ith e r th e d e la y n o r th e o m issio n t o e x e r c is e a n y r ig h t o r p o w e r n o r th e e x e rc is e o f a n y right o r p o w e r a c c ru in g t o th e L e s s o r shall im p a ir a n y s u c h r ig h t o r p o w e r , o r sh all it be c o n s tr u e d to b e a w a iv e r th e re o f, o r re lie v e th e L e s s e e o f a n y o f its r e s p o n s ib ilitie s o r o b lig a tio n s u n d e r th is L e a s e o r fro m an y liability resu ltin g th ere fro m , o r in a n y w a y a m e n d , m o d ify , a lte r, lim it o r o th e rw is e a ffe c t th e rig h ts o f th e p a rtie s h e re u n d e r. 20. S U R R E N D E R O F L E A S E D P R E M IS E S A N D H O L D IN G O V E R : A. O n e x p ir a tio n o f t h e te r m o r an y re n e w a l h e re o f, c a n c e lla tio n o f th is L e a s e a s h e re in p r o v id e d o r o n a n y o t h e r te r m in a tio n , th e L e s s e e sh all im m ed ia te ly p e a ce fu lly s u rre n d e r a n d v a c a te th e le a s e d p r e m is e s . S u b je c t t o P a r a g r a p h 4.1, s u p r a . L e s s e e shall re m o v e all a lte ra tio n s and im p r o v e m e n ts a n d r e s t o r e t h e le a s e d p re m ise s t o its o rig in al c o n d itio n a s th e s a m e a p p e a re d a t the c o m m e n c e m e n t o f t h e le a se . B. N o tw ith s ta n d in g t h e fo re g o in g , th e L e s s o r re s e rv e s th e o p tio n to p u rch a se any o r all o f s u c h a lte r a tio n s a n d im p r o v e m e n ts , b u t n o t in c lu d in g a lte ra tio n s a n d im p ro v e m e n ts th a t m a y n o t be r e m o v e d w ith o u t m a te ria l d a m a g e t o th e lea se d p re m ise s , fo r a su m e q u a l to th e fa ir m a rk e t v a lu e o f s u c h im p r o v e m e n ts a s d e te rm in e d b y a q u a lifie d re a l e s ta te a p p ra is e r jo in tly a p p o in te d by th e L e s s o r a n d t h e L e s s e e . S h o u ld th e L e s s o r a n d th e L e s s e e b e u n a b le to a g re e o n th e se le c tio n o f a n ap p raiser, th e L e s s o r 's a p p r a i s e r a n d th e L e s s e e 's a p p ra is e r w ill a p p o in t a th ird p a rty to d eterm in e th e feir m ark et v a lu e o f th e im p r o v e m e n ts . A n y le a s e h o ld im p ro v e m e n ts th a t m a y n o t b e re m o v e d w ith o u t m ate ria l d a m a g e t o t h e le a s e d p r e m is e s sh all n o t b e re m o v e d b y th e L e s s e e a t an y tim e , b u t shall b e c o m e th e p r o p e r ty o f t h e L e s s o r u p o n th e e x p ira tio n o f th e te rm o r an y re n e w a l, c a n c e lla tio n o r a n y o th e r te rm in a tio n . C. L e s s o r sh a ll h a v e th e r ig h t o n s u c h e x p ira tio n o f th e term o r a n y re n e w a l, c a n ce lla tio n o r a n y o th e r te r m in a tio n to e n te r u p o n a n d ta k e p o s s e s s io n o f s a id lea se d p re m ise s, w ith o r w ith o u t p r o c e s s o f la w , w i t h o u t lia b ility f o r in clu d in g , b u t n o t lim ited to , tre sp a ss. D. S h o u ld L e s s e e h o ld o v e r th e u s e o f o r c o n tin u e to o c c u p y said le a se d p re m is e s a fte r th e e x p ir a tio n o f t h e t e r m o r a n y r e n e w a l, c a n c e lla tio n o r an y o th e r te rm in a tio n o f th is L e a s e , su c h h o ld e r o v e r sh a ll b e d e e m e d m e r e ly a te n a n c y fro m m o n th to m o n th u p o n th e sa m e c o n d itio n s as p r o v id e d in th is L e a s e b u t a t a re n ta l r a te , c o m p e n s a tio n a n d o th e r fee s as d e te rm in e d by th e L e s s o r. E. I f L e s s e e fails to r e m o v e th e le a s e h o ld im p ro v e m e n ts w ith in sixty (6 0 ) day s o f th e d a te o f e x p ir a tio n o f t h e t e r m o r a n y r e n e w a l, c a n c e lla tio n o r an y o th e r te rm in a tio n , th en title t o th e le a s e h o ld im p r o v e m e n ts sh all v e s t in th e L e sso r. F. N o h o ld in g o v e r b y L e s s e e a fte r e x p ira tio n o f th e te rm o r an y re n e w a l, c a n ce lla tio n o r a n y o t h e r te r m in a tio n o f th is L e a s e , w h e th e r w ith o r w ith o u t th e c o n se n t o f th e L e s s o r, sh all o p e ra te t o e x te n d o r r e n e w th is L e a s e . 21. W A IV E R : A n y w a iv e r b y th e C o u n ty o f a n y b re a c h o f a n y c o v e n a n t, te rra , c o n d itio n o r a g re e m e n t in th is C o n t r a c t to b e k e p t a n d p e rfo rm e d b y L e s s e e shall n o t b e d e e m e d o r c o n sid e red a s a c o n tin u in g w a i v e r a n d sh a ll n o t o p e r a te to b a r o r p re v e n t C o u n ty fro m d e c la rin g a d e fa u lt f o r any s u c c e e d in g b r e a c h e ith e r o f th e s a m e c o v e n a n t, te rm , c o n d itio n o r a g re e m e n t o r a n o th e r. All re m e d ie s a ff o r d e d in th is C o n tr a c t sh a ll b e ta k e n a n d c o n s tru e d as c u m u la tiv e , th a t is, in a d d itio n to e v e ry o t h e r r e m e d y p r o v id e d h e re in o r by law. S a n ta T e r e s a H a n g a r A s s o c ia tio n . Le#se Lot T -11 0 4 /0 1 /2 0 0 5 I B : 05 l-'AÜE 9158527773 13 22. L I T I G A T I O N E X P E N S E S : In an y a c tio n b ro u g h t by e ith e r p a rty fo r th e in te rp re ta tio n o f th is L e a s e o r t h e e n fo r c e m e n t o f th e o b lig a tio n (s), d u ty (ie s) a n d /o r liab ility (ies) o f th e L e s s e e , the L e s s o r sh all b e e n title d t o r e c o v e r re a s o n a b le fee s o f a tto m e y (s), c o u rt c o s ts and o th e r litig atio n e x p e n s e s f r o m th e L e s s e e b u t o n ly i f th e L e s s o r is t h e prevailing p arty. 23. N O T I C E S : A ll n o tic e s a n d /o r c o rr e s p o n d e n c e b etw een th e p a rtie s to th is C o n tra c t shall be h a n d d e liv e re d o r s e n t by c e rtifie d m ail w ith r e tu r n re c e ip t re q u e ste d jointly to:__________________ D o ñ a A n a C o u n ty M a n a g e r S an ta T e re s a H a n g a r A sso c ia tio n D o ñ a A n a C o u n ty A ir p o r t M a n a g e r 1 8 0 W . A m a d o r A v e. L a s C ru c e s, N M 8 8001 A ttn: B en n y D a v is 16000 A sh fo rd H o rizo n C ity, T e x a s 79928 T h e e ff e c tiv e d a te o f s e rv ic e o f a n y s u c h n o tic e sh all b e th e d a te su c h n o tic e is h an d d e liv e re d or m a ile d t o L e s s e e o r t h e L e s s o r. E ith e r p a rty m a y d e s ig n a te in w ritin g fro m tim e to tim e su b seq u en t o r s u p p le m e n ta r y p e r s o n s o r a d d r e s s e s in c o n n e c tio n w ith said n o tices. I f L e s s e e ch a n g es add ress, L e s s e e sh a ll g iv e n w r itte n n o tic e to L e s s o r w ith in th irty (3 0 ) days th ere o f. 24. A IR P O R T R U L E S A N D R E G U L A T IO N S : In ad d itio n to all o th e r p ro v isio n s o f this L e a s e , L e s s e e sh a ll c o m p ly w ith th e D o ñ a A n a C o u n ty M inim um S ta n d a rd s fo r C om m ercial A e r o n a u tic a l A c tiv itie s a t S a n ta T e r e s a A irp o rt, th e S a n ta T e resa A irp o rt D e v e lo p m e n t G uidelines, Í a n d a n y r u le s , r e g u la tio n s , s ta n d a r d s , a d v iso ry c irc u la rs a n d /o r re so lu tio n s as m ay be a d o p te d o r is s u e d b y th e C o u n ty , S ta te o f N e w M e x ic o a n d /o r th e F ederal A v ia tio n A d m in istratio n , a n d ail a m e n d m e n ts t h e r e to w h ic h f ro m tim e to tim e m a y b e a d o p te d h ereafter. S u ch M inim um S ta n d ard s, D e v e lo p m e n t G u id e lin e s , ru le s , re g u la tio n s , sta n d a rd s, adv iso ry c irc u la rs a n d re so lu tio n s are i n c o r p o r a t e d by r e f e r e n c e a s i f th e y w e r e fu lly s e t fo rth in this L e ase. F a ilu re to fully co m p ly w ith s u c h M in im u m S ta n d a r d s , D e v e lo p m e n t G u id e lin e s, ru les, reg u latio n s, sta n d a rd s, ad v iso ry circu lars a n d r e s o lu tio n s sh all c o n s titu te a m a te ria l b re a c h o f th is L e a se and se rv e as a d e q u a te g ro u n d s for te r m in a tio n . 25. L E S S E E ’S R E C O R D S ; A. L e s s e e sh a ll k e e p a n d m ain ta in a t A irp o rt, o r at su ch o th e r p la c e a s m ay b e ap p ro v e d • in w r itin g by th e L e s s o r , t r u e a n d a c c u r a te b o o k s a n d re c o rd s o f its o p e ra tio n s u n d e r th e te rm s o f this L e a s e , in a f o rm s a tis f a c to r y t o th e L e s s o r. S u c h b o o k s and re c o rd s as w ell as certified financial s ta te m e n ts , r e p o r t s o f a n y e x te rn a l a u d its p r e p a re d fo r L e ssee and its in co m e ta x re tu rn shall be m ade a v a ila b le to th e C o u n ty A ir p o r t M a n a g e r, o th e r C o u n ty s ta ff d esig n ated by th e A irp o rt M an ag er, r e p r e s e n ta tiv e s o r c o n tr a c to r s o f th e S ta te A u d ito r, at th e A irp o rt, f o r in sp e c tio n and c o p y in g a t any tim e w i t h o u t a d v a n c e n o tic e to L e s s e e d u rin g n o rm a l business h o u rs d u rin g th e term o f this L ease and f o r t w o y e a r s th e r e a f te r . B. L e s s e e sh all, a n n u a lly , d u rin g th e te r m hereof; and any ren e w al term , subm it to the C o u n t y A ir p o r t M a n a g e r a s ta te m e n t, p re p a re d in a c co rd a n ce w ith a sy stem o f ac co u n tin g s a tis f a c to r y t o th e L e s s o r s h o w in g t h e g ro s s re c e ip ts o f th e L essee an d su b lessee($ ), if any, on, in and f r o m t h e le a s e d p r e m is e s a t th e A ir p o rt, fo r th e p re c e d in g tw elv e (1 2 ) m o n th s, w h ich sta te m e n t shall b e s u b s c r ib e d a n d s w o r n to a s c o r r e c t by L e s s e e o r o n e o f its officers. S u c h sta te m e n t shall sh o w s u c h r e a s o n a b le d e ta il a n d b r e a k d o w n s as m ay b e re q u ire d by th e L esso r. Santa Teresa Hangar Association. Lease Lot T-11 ( 0 ,^ 0 usxuwzuus 1e:u5' ulbt??zh?rd C. Lessee shall provide a audit report to the Lessor for all the! purchases and deliveries made by and/or to the Lessee for sale or use at the Airport. 26. FEDERAL MANDATED LEASE PROVISIONS: A. In addition to the leased premises speci?cally designated for its exclusive use, this Lease grants Lessee the non-exclusive right to use the air?eld and associated operational areas in common with others so authorized in accordance with the aviation and air navigation rules and regulations promulgated by the laws of the United States of America and the State of New Mexico, and all pertinent directives, ordinances, rules and regulations of Doha Ana County. B. Lessee shall accommodate and serve the public on fair and reasonable terms without unjust discrimination on the basis of race, color, religion. sex. age, or national origin. C. Lessee shall accommodate and serve. on a fair and equal basis, all users thereof and it shall charge fair and reasonable prices to all users for each unit of service; provided, that Lessee may be allowed to make reasonable discounts, rebates or other similar type of price reductions to volume purchasers. D. Lessee shall not discriminate in any manner against any employee or applicant for employment because of political or religious a?iliation, sex, race, creed, color, or national origin; and lessee shall include a similar clause in all subcontracts, except subcontracts for standard commercial supplies or raw materials. Lessee understands and acknowledges that the Lessor has given to the United States of America, acting by and through the Federal Aviation Administration. certain assurances and respect to non-discrimination which have been required by Title VI of the Civil Rights Act of 1964, and by or pursuant to Title 49. Code of Federal Regulations, Department of Transportation, Subtitle A, Of?ce of the Secretary, Part 21, Nondiscrimination in Federally-Assisted Programs of the Department of Transportation, as a condition precedent to the Government making grants in aid to the Lesser, for certain Airport programs and activities. Lessor is required under said regulations to include in every agreement or concession pursuant to which any person or persons other than the Lessor operates or has the right to operate any facility on the Airport providing services to the public. the following covenant, to which Lessee agrees: ?Lessee, in its operation at and use of the Santa Teresa Airport, covenants that it will not on the grounds of sex, race, color, or national origin: discriminate or permit discrimination against any person or group of persons in any manner prohibited by Title 49. Code of Federal Regulations, Department of Transportation, Subtitle A, Of?ce of the Secretary. part 21. In the event of such discrimination, Lessee agrees that Lessor has the right to take such action against Lessee as the Government may direct to enforce this covenant.? (ii) The Lessee does hereby covenant and agree as a covenant running with the land that in the event facilities are constructed, maintained. or otherwise operated onthe said preperty described in this Lease for a purpose for which a Department of Transportation program or activity is extended or for another purpose involving the provision of similar services or bene?ts, the Lessee shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to 49 CFR Part 21, Non-discrimination in Federally Assisted Programs of the Department of Transportation. and as said Regulations may be amended. Santa Teresa Hangar Association. Lease Lot T-ll #480 my 0 4 /0 1 /2 0 0 5 1 6 :0 5 9158527773 id __ ____' (iii) T h e L e s s e e d o e s h e re b y c o v e n a n t a n d a g re e that: (a ) n o p e rso n o n th e g ro u o f race, c o lo r , o r n a tio n a l o rig in sh all b e e x c lu d e d f ro m p a rtic ip a tio n in, d e n ie d th e b en efits o f, o r b e o th e rw is e s u b je c te d to d is c rim in a tio n in th e u s e o f said facilities; (b ) in t h e c o n s tru c tio n o f an y im p ro v e m e n ts o n , o v e r, o r u n d e r su c h lan d a n d th e fu rn ish in g o f serv ices th e r e o n , n o p e rs o n o n th e g ro u n d s o f r a c e , c o lo r, o r n a tio n a l o rig in sh all b e e x c lu d e d fro m p a rtic ip a tio n in, d en ied th e b e n e fits o f, o r o th e r w is e b e s u b je c te d to d isc rim in a tio n ; ( c ) th e L e s s e e shall u se th e p re m ise s in c o m p lia n c e w ith all o th e r r e q u ir e m e n ts im p o s e d by o r p u r s u a n t to 4 9 C F R p a rt 21, N o n d iscrim in atio n in F ed erally A ssiste d P r o g r a m s o f th e D e p a r tm e n t o f T r a n s p o r ta tio n , an d as said R e g u la tio n s m ay b e a m e n d e d . E . It is c le a rly u n d e r s to o d by t h e L e s s e e th a t n o rig h ts o r p riv ile g e s h a v e b e e n g ra n te d w h ic h w o u ld o p e r a te t o p r e v e n t a n y p e rs o n , firm o r c o r p o r a tio n o p e ra tin g a irc ra ft o n th e A irp o rt fro m p e rfo rm in g a n y s e rv ic e s o n its o w n a irc ra ft w ith its o w n re g u la r e m p lo y ees (in c lu d in g , but n o t lim ited to , m a in te n a n c e a n d r e p a ir ) th a t it m a y c h o o s e to p e rfo rm , p ro v id e d , h o w e v e r, th at such services shall b e su b ject to th e ru le s a n d re g u la tio n s e s ta b lis h e d b y th e L e s s o r a n d shall b e c o n s is te n t w ith th e term s o f any le a s e o r s u b le a s e o f h a n g a r s p a c e . F. ( i) L e s s o r re s e r v e s th e r ig h t ( b u t shall n o t be o b lig a te d to th e L e sse e ) to m ain tain a n d k eep in r e p a ir th e la n d in g a re a o f th e A ir p o r t a n d all p u b lic ly -o w n e d fac ilitie s o f th e A irp o rt to g e th e r w ith th e rig h t t o d ir e c t an d c o n tro l all a c tiv itie s o f th e L e s s e e in th is re g a rd . I f th e C o u n ty fails to m a in ta in a n d k e e p in r e p a ir th e la n d in g a r e a a n d /o r th e p u b lic ly -o w n e d facilities o f th e A irp o rt a n d d im in is h e s JessceO s u s e , rig h ts a n d /o r o p e r a tio n s o n th e lea se d p re m ise s , L e s s e e shall h a v e th e rig h t to t e r m in a te th e L e a s e u p o n r e a s o n a b le n o t ic e to th e L e sso r. (ii) L e s s o r re s e rv e s t h e rig h t ( b u t shall n o t b e o b lig a te d to th e L e s s e e ) to e stab lish s u c h fair, e q u a l, a n d n o t u n ju s tly d is c rim in a to ry c o n d itio n s to b e m et by all u s e r s o f th e A ir p o rt as m a y be n e c e s s a r y fo r th e s a fe a n d e fficie n t o p e r a tio n o f th e A irp o rt a n d /o r t o p ro h ib it o r lim it any g iv e n ty p e , k in d , o r c la s s o f a e ro n a u tic a l u s e o f t h e a irp o rt i f su ch a c tio n is n e c e s s a ry f o r th e safe o p e ra tio n o f th e A ir p o r t o r n e c e s s a ry to s e rv ic e t h e civil a v ia tio n n eed s o f th e p u b lic.' G. T h e L e s s o r r e s e r v e s th e rig h t to ta k e a n y a c tio n it c o n sid e rs a p p ro p ria te to p r o te c t th e aerial a p p r o a c h e s o f th e A ir p o r t a g a in s t o b s tr u c tio n , to g e th e r w ith th e rig h t t o p re v e n t th e L e s s e e fro m e re c tin g o r p e rm ittin g to b e e r e c te d , a n y b u ild in g o r o th e r s tru c tu re o n th e A irp o rt w h ic h , in the o p in io n o f t h e L e s s o r , w o u ld lim it th e u s e fu ln e s s o f th e A irp o rt o r c o n s titu te a h a z a rd to a irc ra ft. H. (i) T h is L e a s e shall b e s u b o r d in a te to and su b ject to th e p ro v isio n s o f any a g re e m e n t b e tw e e n th e L e s s o r a n d th e U n ite d S ta te s , re la tiv e to th e o p e ra tio n o r m ain te n a n c e o f th e A irp o rt. T h is s u b o rd in a tio n in c lu d e s, b u t is n o t lim ite d to , th e rig h t o f the L e s s o r, d u rin g tim e o f w a r o r n a tio n a l e m e rg e n c y , to le a s e th e la n d in g a re a , o r a n y p a rt th e re o f, to th e U n ite d S ta te s fo r m ilita ry o r naval u s e , a n d i f an y s u c h le a s e is m a d e , th e p r o v is io n s o f any c o n tra c ts o r le a se s w ith L e s s e e shall b e suspended, T h is L e a s e sh all a ls o b e s u b o r d in a te t o and su b je c t to th e p ro v is io n s o f an y a g re e m e n t b e tw e e n th e L e s s o r a n d th e S ta te o f N e w M e x ic o re la tiv e to th e o p e ra tio n o r m ain te n a n c e o f th e A irp o rt. (ii) T h is L e a s e sh all a lso b e s u b o rd in a te to and su b je c t t o th e c o v e n a n ts a n d c o n d itio n s o f th e P a te n t N o . 3 0 - 8 2 - 0 0 4 8 fro m t h e U n ite d S ta te s o f A m e ric a to th e L esso r fo r th e land f o r th e A ir p o r t. I f th e U n ite d S ta te s e x e rc is e s its rig h t o f e n try a n d p o s s e s s io n o f title u n d e r P a te n t N o . 3 0 - 8 2 - 0 0 4 8 o r i f t h e p r o p e r ty u n d e r P a te n t N o . 3 0 -8 2 -0 0 4 8 a u to m a tic a lly re v e rts to th e U n ite d S ta te s , th e n th is L e a s e sh a ll te r m in a te im m e d ia te ly . I. T h e L e s s e e a s s u r e s th a t it w ill u n d e r t a k e an affirm ativ e a c tio n p ro g ra m as re q u ire d by 14 C F R P a r t 1 5 2 , S u b - p a r t E , t o e n s u re th a t n o p e r s o n shall o n th e g ro u n d s o f race, c re e d , c o lo r, n a tio n a l o rig in , o r se x b e e x c lu d e d fro m p a rtic ip a tin g in any e m p lo y m en t a c tiv itie s covered in 14 C F R Santa Teresa Hangar Associatioa Uase Lot T-i l '0 4 /0 1 /2 0 0 5 1 6 :0 5 P a n 152, PAGE 9158527773 Sub-part E. 16 T h e L e s s e e a s su re s th a t n o p e r s o n shall b e e x c lu d e d o n th e s e m o u n d s from f u b o a n T l f r « ° r reCC,VT í e Se^ ' CeS ° r b e " e f i,s o f a n y P r o s r ™ o r a c tiv ity c o v e re d by this £ £ • ' T * aT “ “ W‘" " * * * th a ' i,S C 0 v cred su lw tg an ia atio n s p ro v id e a s s r r r a n U to / l / f t th a t th e y w ill r e q u i r e a s s u ra n c e s fro m th e ir su b o rg a n iz a tio n s , a s re q u ire d b y 14 C F R P a jt 152, S u b p a r t E , t o t h e s a m e e ffe c t. 1 y rart 27. LESSEE'S OPERATIONS: A. L e s s e e s h a ll m a in ta in a t its o w n e x p e n s e all n e c essa ry p e rm its an d lic e n se s re q u ire d in th e c o n d u c t o f its b u s in e s s a t A ir p o rt. B. L e s s e e s h a ll a t all tim e s re ta in q u a lifie d a n d c o m p e te n t p e rs o n n e l to c o n d u c t its a u th o r iz e d a c tiv itie s a n d s a id p e rs o n n e l shall b e a u th o r iz e d to re p re se n t a n d a c t f o r L e s s e e . C. L e s s e e , i ts o ffic e rs , e m p lo y e e s, a g e n ts a n d s e rv a n ts shall o b s e rv e a n d o b e y all law s, o rd in a n c e s , r u le s a n d r e g u la tio n s o f th e U n ite d S ta te s o f A m erica, th e S ta te o f N e w M e x ic o , the C o u n ty o f D o fia A n a a n d t h e S a n ta T e re s a A irp o rt B o a r d o r C o m m issio n w h ic h m a y be a p p lic a b le to its o p e ra tio n s a t th e A i r p o r t , a n d sh a ll m a k e n o u n la w fu l o r o ffen siv e u se o f th e le a se d p re m ise s . D. Lessee s h a ll b e a r all c o s ts o f its o p e r a tio n a t th e A irp o rt a n d /o r o f its u s e and o c c u p a n c y o f th e le a s e d p r e m is e s a n d im p ro v e m e n ts a n d sh all p ay , in a d d itio n to th e c o n c e s s io n fees a n d p a y m e n ts h e re in , all o t h e r c o s ts c o n n e c te d w ith th e o p e ra tio n o f said b u sin e ss a n d /o r w ith th e use an d o c c u p a n c y o f t h e le a s e d p r e m is e s a n d im p ro v e m e n ts , in clu d in g , b u t n o t lim ite d to , in s u ra n c e and tax es. E. L e s s e e s h a ll p r o v id e th e C o u n ty A ir p o r t M a n a g e r w ith a sc h e d u le o f th e h o u r s o f o p e ra tio n t h a t L e s s e e w ill b e o p e n to th e p u b lic a n d th e n a m e s a n d te le p h o n e n u m b e rs o f L e sse e 's o fficials w h o sh a ll b e a v a ila b le a t all h o u rs o f L e s s e e 's o p e ra tio n s a t th e A ir p o rt to p e rfo rm re q u ire d m a n a g e m e n t f u n c tio n s , F. L e s s e e s h a ll c o n f o r m t o all a p p lic a b le sa fe ty , h ealth , and sa n ita ry c o d e s a n d a g re e s to c o o p e ra te w ith th e L e s s o r in its fire p r e v e n tio n e ffo rts, G- T h e L e s s o r o r th e A irp o rt M a n a g e r m a y e n te r u p o n th e le a s e d p re m is e s a n d /o r im p ro v e m e n ts to t h e l e s s e e a t a n y r e a s o n a b le tim e a n d f o r an y p u rp o se n e c e s s a ry , in c id e n ta l t o o r c o n n e c te d w ith th e p e r f o r m a n c e o f th e L e s s e e 's o b lig a tio n s u n d e r th is L e a s e o r in th e e x e rc ise o f their f u n c tio n a s C o u n ty a n d / o r M a n a g e r . 28. P E R F O R M A N C E S U R E T Y : L e sse e sh all fu rn is h a p ay m e n t g u a ra n te e in th e f o rm o f a p e rfo rm a n c e B o n d , C a s h ie r 's C h e c k , C e rtifie d C h e c k , M o n e y O rd e r, o r a n irre v o c a b le L e tte r o f C re d it fro m a b a n k in a n a m o u n t e q u a l to its a n tic ip a te d o b lig a tio n s u n d e r th is L e a s e f o r a s ix -m o n th p e rio d a s s e c u r ity f o r t h e fu ll arid faith fu l p e rf o r m a n c e a n d o b se rv a n c e b y L e s s e e o f t h e term s, c o v e n a n ts , a g r e e m e n ts a n d c o n d itio n s o f this L e a s e , S u c h se c u rity shall b e p ro v id e d to th e A irp o rt M a n a g e r w ith in th ir ty ( 3 0 ) d a y s o f t h e e ffectiv e d a te o f th is L e ase. 29. EA SEM EN TS: A. T h e L e s s o r m a y a t any tim e lo ca te, in w h o le o r in p a rt, any e a s e m e n t(s ) f o r ta x iw a y , a u to / p e d e s t r ia n a c c e s s w a y , w a s te w a te r d rain -lin e, u tility a n d /o r b a rn e r fe n c e o n th e le a s e d p r e m is e s ; p r o v id e d h o w e v e r, th a t s u c h lo c a tio n d o e s n o t d im in ish o r p e rm a n en tly i n t e ^ t s u c h ^ t s a n d / o r ^ r a t i o n s o f the L e s s e e n o r m a re a s e th e c o s ts to b e in c u rre d b y L essee. In th e E v e n t t h e L e s s e e D s o p e r a tio n is so a ffe c te d b y s u c h a ctio n , L e sse e shall h a v e th e rig h t to te rm in a te th e le a s e u p o n r e a s o n a b le n o tic e to L e s s o r. D u r in g a lte ra tio n w o rk , L e s s o r m a y su sp en d w o rk o n s u c h e a s e m e n ts a n d r e s to r e t h e leased p re m is e s t o a c o n d itio n sim ilar to th e c o n d itio n w hich Santa Teresa Hangar Association. Lease Lot T -11 /¿á38 0 4 /0 1 /2 0 0 5 1 6 :0 5 PAGE 9158527773 17 existed prior to alterations by the Lessor. After completion o f alterations, Lessor agrees to restore the leased premises to a condition substantially similar to the condition which existed prior to any alterations thereto by the Lessor. Lessee agrees to take no action that will interfere with the designated purpose o f the easement. B. Lessor possesses a perpetual easement and right-of-way for the construction, maintenance, removal and replacement of taxiway, auto/pedestrian access way, waste water drain­ lines, utility lines, manholes, barrier fence, and related facilities o f such size and capacity as is necessary or required for the development o f the Airport, through, over, across and under the utility easement, waste water drain-line easement, and/or barrier fence easement. C. Except as specified above, Lessee shall have full and complete use of the surface of the Leased premises encumbered by easements. D. The Lessor may at any time and from time to time relocate, in whole or in part, any easements provided that such relocation does not diminish or permanently interrupt the rights and/or operations o f the Lessee nor increase the costs to be incurred by Lessee. In the Event the LesseeOs operation is so affected by such action, Lessee shall have the right to terminate the lease upon reasonable notice to Lessor. The Lessor may temporarily interrupt such rights and/or operations with respect to such easement(s) during the period o f relocation o f easement, and the Lessor agrees to restore the leased premises to a condition substantially similar to the condition which existed prior to any alterations thereto by the Lessor. 30. EMINENT DOMAIN: A. In the event that all or substantially all o f the leased premises or any material portion of the Airport premises o r facilities outside the leased premises which Lessee is entitled to use pursuant to this Lease shall be appropriated or taken under the power o f eminent domain, or by purchase in lieu thereof, at any time during the lease term so as to substantially interfere with Lessee's operations as determined by Lessee in its sole discretion, this Lease may be terminated by Lessee as o f the date that title to the property taken vests in such condemning authority. In the event o f a condemnation of all or a portion of the leased premises, Lessee shall be entitled to the monetary award attributable to the condemnation or purchase o f the Lease. B. In all instances o f an appropriation or taking of a portion of the leased premises under the power o f eminent domain, or purchase in lieu thereof, when Lessee elects not to terminate this lease and Agreement, Lessee shall restore as promptly as practicable and to the extent permitted by application o f the proceeds paid by the condemning authority pursuant to any exercise of such power o f eminent domain the remaining portion of the leased premises to a condition which will permit Lessee to substantially carry on its operations. Any condemnation proceeds not required for the purposes o f restoration shall belong to Lessee. In the event Lessee elects not to terminate this Lease, effective as of the date o f such taking, the total square footage o f the leased premises shall be reduced by the amount taken by eminent domain. . FUEL IN HANGARS PROHIBITED: Lessee, its officers, servants, representatives, employees, agents, sublessee, contractors, subcontractors, invitees, customers, patrons, successors, assigns, and/or suppliers, as well as all other persons doing business with lessee, shall not fuel aircraft in any hangar. 31 Santa Teresa Hangar Association. Lease Lot T-11 04/81/2005 16:05 9158527773 PAGE 18 32. FUEL STORAGE: If Lessee stores, sells or supplies fuel, Lessee shall install above ground storage tanks in accordance with all Federal, State and County laws, rules, regulations, ordinances and building codes regulating such fuel storage. Such tanks shall be constructed in a specified fuel farm area designated in the Airport Master Plan. 33. CHARGES: Nothing in this Lease shall be deemed to relieve the Lessee and/or any and all o f its officers, employees, representatives, agents, servants, invitees, patrons, customers, contractors, sublessee, subcontractors, successors, assigns and/or suppliers, as well as all other persons doing business with the Lessee, from any and all Airport use or activity charges as are or may be levied generally by the Lessor directly upon the operation o f aircraft, including, but not limited to, fuel flowagc fees. 34. UTILITIES: A. Lessee shall obtain and install underground at its own expense any necessary electrical, gas, water, sewer and septic tank, and any other utility service, subject to the Development Guidelines, rules and regulations, and/or building codes of the State o f N ew Mexico and the Lessor. Lessee shall pay the expense o f connecting to existing utility lines and maintaining all utility facilities within the leased premises, and pay all charges for consuming such services. In the event it shall become necessary to make utility changes upon the leased premises or within any improvement covered by this Lease, or any wiring or similar installations, the Lessee will promptly make such changes and installations at its expense as directed and required by the utility company, County or the New Mexico Construction Industries Division. B. Hold Harmless, Indemnify and Defend: Lessee agrees to hold harmless, indemnify, and defend Lessor, its agent or public employees, from any and all costs, expenses and/or charges for utility services furnished to the Lessee, necessary or required in the operation and maintenance of the leased premises, caused by or resulting from the sole or concurrent negligence o f the Lessee, its agent or LesseeOs employees or any independent contractor who is directly responsible to the Lessee or from any accident which occurs in operations carried on at the direction or under the supervision of the Lessee or representative o f the Lessee. This provision shall not affect the validity of any insurance contract or any benefit conferred by the WorkmenOs Compensation Act. The Lessee's agreement to hold harmless, indemnify and defend the Lessor shall not be affected or terminated by the cancellation, expiration o f the term or any renewal or any other modification o f the Contract for any reason and shall survive the cancellation, expiration o f the term or any renewal or any other modification o f this contract. 35. RESERVATION OF RIGHT: A. After the Lessor fulfills its assurances to the United States and the State of New Mexico under the respective grant agreements or if the Lessor is released from such assurances, the Lessor reserves the right to terminate all aviation activities at the Airport and to dose the Airport because o f insufficient funds, operation o f law and/or any other reason whatsoever. The Lessor's right to do such shall be final. If such right is exercised by the Lessor, then this Lease shall terminate immediately. The Lessor's decision as to whether or not sufficient funds are available shall be accepted by Lessee and shall be final. Santa Teresa Hangar Associateoa Lease Lot T- u 0 4 /0 1 /2 0 0 5 1 6 :0 5 PAGE 9158527773 19 B. The assurances o f the Lessor to the United States and the State o f New Mexico under the respective grant agreements are not obligations o f the Lessor to Lessee and shall not be construed as such. 36. GOVERNING LAW: This Lease Contract shall be construed in agreement with the Laws of the State o f New Mexico. The Lessee shall also comply with all applicable Federal and local laws, ordinances, and the rules and regulations o f the County. 37. PARAGRAPH HEADINGS: Paragraph headings are for convenience and reference and are not intended to limit the scope o f any provision of this Contract. 38. REPRESENTATION AND WARRANTIES: Lessee has inspected the leased premises and is aware o f the condition o f the leased premises and improvements thereon, if any, and no representations as to leased premises or its conditions have been made to Lessee by Lessor except for those contained herein, if any. Lessee assumes all the risks incident to the use of the leased premises. Lessee accepts the leased premises in its present condition. Lessor and its "public employees" as defined in the new Mexico Tort Claims Act, shall not be liable to and shall be held harmless by the Lessee for any and all death(s), injury(ies) to person(s), damage(s) to property(ies) and/or damagefs) and/or liability(ies) o f any other nature whatsoever resulting from hidden, latent or other dangerous condition(s) on the leased premises and/or the Airport, for which sovereign immunity has been waived or alleged have been waived under stale law and/or for which an actionfs) is allowable or alleged to be allowable under federal law, M ERGER OF PRIOR AGREEMENTS: This Lease Contract incorporates all the conditions, agreements and understandings o f the parties concerning the subject matter o f this Agreement. All such conditions, understandings and agreements have been merged into this written Contract. No prior condition, agreement or understanding, verbal or otherwise, shall be valid or enforceable unless embodied in this Contract. 39, 40. AMENDMENTS: This contract shall not be altered, changed or amended except by written instrument signed by both parties. 41. SEVERABILITY: If any clause or provision of the Lease Contract is held to be illegal, invalid or unenforceable, then it is the intention o f the parties hereto that the remainder of the Contract shall remain in full force and effect. However, in the event that either party can no longer reasonably perform pursuant to the remaining Contract terms, or if the purpose o f the Contract can no longer be carried out by either party, the Contract is voidable and no damages shall accrue to either party. 42. PROCUREMENT CODE: Both parties are bound by the terms of the Procurement Code, Sections 13-1-25 through 13-1-199, N M S A 1978 as amended. The Procurement Code imposes civil and criminal penalties for its violation. In addition, New Mexico Criminal Statutes impose felony penalties for illegal bribes, gratuities and kickbacks. Santa Teresa Hangar Association. Lease Lot T -11 0 4 /0 1 / 2 0 0 5 1 6 :0 5 PAGE 9158527773 20 43. CONFLICT O F INTEREST: The Lessee warrants that he presently has no interest, and shall not, during the term o f this Contract, acquire any interest which has the potential to conflict with performance under this contract. In the event such a conflict arises, the County shall be notified and appropriate corrective action taken. The Lessee's failure to inform the County o f such conflict constitutes default and shall be grounds for immediate termination o f contract by the County. 44. ASSIGNM ENT O F CONTRACT: Lessee shall not assign nor delegate any interest in this contract or transfer any interest or assign any claims for money due or to become due under this contract, without the written consent of the County. 45. BINDING EFFECT OF AGREEMENT: Lessor and Lessee agree that the terms o f this Agreement and any extension or renewal thereof shall extend to and be binding upon their heirs, executors, personal representatives, administrator, assigns, successors, and transferees. 46. DUPLICATE ORIGINALS: This document shall be executed in no less than three (3) counterparts, each o f which shall be deemed an original. , 47. APPROVAL O F CONTRACT: This Lease shall not become effective until the New Mexico State Board o f Finance has approved it. County Manager 7 Santa Teresa Hangar Association. L ease Lot T - 1 1 7 04/01/2035 15:05 9158527773 PASE E X H IB IT PLAT OF SURVEY 21 A LE A SE PARCEL T - 1 1 A TRACT OF LAND sm jA T E tN THE NW1/ * OF StCTlOH 13 T.ZB S : ñ . z S .. H-M.P.M.. A S PART OF THE SARTA TERESA AIRPORT PUSHED UNIT DEVELOPMENT. COUNTY OF DONA ANA STATE OF NEW HEXlCO JUNE. ZOO* 4 ms¿ X «fiW / F 't / / " ■ n . T > V >*I !»« (TSI ■/. r:- ' -*>.*; "• St»»# o tV m w CtlHrtty » / n o n a A n í r * * s y j RJiCHPTÍUN»n / í hereby cerllfy in ri lh[i InatrVriieal wo> filed for j o e o r d l a g and daffL'afordoi) o» IW.W JStoiAl#9 LOCATION MAP DOHA AMA COVN7T L E A S E PARCEL T - 1 1 (EAST EXTENSION) s n ^ s a s v i f t i ¡k r s w ís » ¥ 2 z s z r ¿ a s s fffik m o t ** ¿ ■ o n n i /c * M rs » * * * a í. m o * u r in í m s > c r u n r n n iM C P c c w ° * n v u n io » INDEXING INFORMATION FON COUNTY CLERK DONA ANA COUNTY SANTA TERESA AIRPORT PLANNED UNIT DEVELOPMENT «01/*. stone* i i i.in„ njt, m oo«* *«» cawrr new wtreo ¿Su IIa LONA ANA COUNTY fc E n g in e e r in g D e p a r tm e n t tu s f u l f r t m . * r r mv L 0 1 OWNER; POA MUCOVNIT IM hi tfHU, —*W‘ rm »«T-Pr*J RECORD: DRAWN B Yi jM (0 S /7 P /O 4 ) m SJ-JF S» /o.A t DOÑA ANA COUNTY BOARD OF COUNTY COMMISSIONERS Doña Ana County Government Center 845 North Motel Boulevard Las Cruces, New Mexico 88007 Telephone: (575) 647-7200 Toll-Free: (877) 827-7200 IT May 23, 2017 Initiating Department Meeting Date Bob Bunting Contact Person Agenda Item Number T IT L E O F AGENDA H I M T O BE C O N SID ER ED APPROVE PURCHASE OF CENTURYLINK SERVICES UP TO $65,000 ANNUALLY AND DELEGATE SIGNATURE AUTHORITY TO THE COUNTY MANAGER FOR ALL RELATED DOCUMENTS. SU M M A R Y O F IT E M T O B E C O N SID ER ED IN C L U D IN G P R E S E N T A T IO N O F O P T IO N S F O R A C T IO N an d A C T IO N R E Q U E ST E D The Board o f County Commissioners is asked to approve the purchase o f W ide Area Network (WAN) services from CenturyLink using State Purchasing Agreement #20-361-12-01578AA up to $65,000 annually and delegate signature authority to the County M anager for all related documents, contracts, change orders and amendments. D E S C R IP T IO N O F S U P P O R T IN G D O C U M E N T A T IO N A TTA C H ED Executive summary Budgetary Impact Statement Upgrade proposal CenturyLink contracts SU M M A R Y O F FIN A N C IA L IM P A C T Multiple line items. Please see attached Budgetary Impact Statement A D M IN IS T R A T IV E R E V IE W AND A PPR O V A L / K V n „ u n e e 'b f Legal County Manager/ Agenda Review Purchasing Human Resources Assistant County Manager Planning Other DOCUMENT CONTROL Original/s for signature? CU Ves [2 No For Recording? I IYes I I No Return original/s to: Dept. Name Send copy of recorded original/s (resolution and ordinances only) to: Deadline for return of document/s? Yes, return by: or □ No Name Dept. Executive Summary CenturyLink WAN The IT department proposes to upgrade our CenturyLink Wide Area Network (WAN) services and associated contracts at six sites. WAN services are connections between sites maintained by a service provider, such as CenturyLink. The upgrades will replace legacy copper wire based services, such as T1 and T3, w ith M etro fiber Optic Ethernet (MOE) services. MOE uses primarily fiber optic cable to deliver WAN services using the Ethernet protocol to establish connections and transfer data rather than copper cabling and older, more costly to implement, serial protocols. The proposed upgrades will not only increase the bandwidth provided to the county by CenturyLink; they will also reduce our overall, regular CenturyLink bill by approximately $474 per month. CRRUA w ill see an even larger savings o f nearly $780 per month. Changing our services from legacy copper services should also increase the availability o f our WAN services. Because the MOE services rely on fiber optic cables, they are not subject to some o f the problems with electrical services, such as grounding problems and short circuits. Further, fiber optic infrastructure is more central to CenturyLink's business model going forward and will likely receive better support services than the ir legacy copper systems. Line item 1 acts as the hub fo r the other services. Each o f them ultimately connects to that central point and uses some part o f the 200 Mbps bandwidth there. Half o f the hub bandwidth is dedicated to Internet service at 100 Mbps, as indicated by the next tw o line items. The remaining bandwidth at the Government Center terminates connections from the Roads Complex, Anthony Substation, Chaparral Substation and the CRRUA Payment Center. The final line item is high-speed DSL service for a small CRRUA office that will connect to the Government Center using site-to-site VPN over the Internet. Budgetary Impact Statetment DONA ANA COUNTY Department/Agency Account FY17 Projected Expenditure FY18 Projected Expenditure Budgetary Impact IT 10001-10250-72414 $33,332.28 $30,149.52 $3,182.76 Sheriff's Office 10002?20105?72925 $17,088.72 $12,041.40 Engineering 10080-30001-72925 $2,605.68 $5,142.48 $2,536.80 $53,026.68 $47,333.40 CRRUA 55110-40718-72925 $20,700.00 $11,364.00 DAC IT Proposed Infrastructure WAN Service Modernization In order to save money, get a better return on our Wide Area Network (WAN) services investments and address longstanding needs fo r better services in several locations, IT is proposing changes to several of our existing CenturyLink services. The existing services we recommend upgrading are as follows: D escription Location Mbps M onthly Costs DS-3 Loop Government Center 45 $1,528.00 Internet Port Government Center 45 $1,249.69 Roads T 1 (point-to-point T 1) Roads Complex 1.54 $217.14 Anthony T1 (point-to-point T1) DASO Anthony Substation 1.54 $616.00 Chaparral T 1 (point-to-point T 1) DASO Chaparral Substation 1.54 $808.06 MPLS Hub (MPLS o v e rT I) Government Center 3 $825.00 CRRUA Payment Center MPLS (MPLS over T1) CRRUA Water MPLS (MPLS over T1) CRRUA Payment Center 1.54 $450.00 CRRUA Water Treatment Facility 1.54 $450.00 $ 6 ,1 4 3 .8 9 Each o f these is briefly explained along w ith the rationale fo r upgrading the circuit. D S -3 /ln te rn e t Port The DS-3 loop and Internet port together are our current Internet service. The maximum throughput of this circuit is 45 Mbps symmetric (equal both upstream and downstream). Below is a graph o f utilization o f this link fo r the last several months: 40.0 Mbps -A 20 0 Mbps - ii w n . : m r 0 bps 2 9 Aug 10 Oct S e p '16 Average Receive bps MDF-392b - Seria11/0 ■T3 tc Qwest Internet: Circuir DS3IT-14454191 Average Receive bps MDF-3925 - S e ria ll/0 ■T3 to Qwest Internet; Circuit DS3IT-14454191 Trend Average Receive bps MDF-3925 - S eriad/0 - T 3 t o Qwest Internet: Circuit D53IT-14454191 Percentile 95% B Min/Tvlax Receive bps MDF-3925 - S eriad/O • T3 to Qwest Internet: Circuit D53IT-14454191 B Average Transm it bps MDF-3925 - Serial 1/0 • T3 to Qwest Internet: Circuit 0S3IT-144541S1 ™ Average Transm it bps MDF-3925 - Seriad/0 • T3 to Qwest internet: Circuit DS3IT-14454191 Trend Average Transm it bps MDF-3925 - Serial 1/0 • T3 to Qwest internet: Circuit DS3IT-14454191 ® Percentile 95% M in/M ax Transm it bps MDF-3925 - Serial 1/0 - T3 to Q w est internet: Circuí: DS3IT-1445-41 91 solarw inds ‘V Here are several points to keep in mind when reviewing this chart: • Note that the blue "Average Receive" bps (bits per second) shows a pattern o f roughly equal highs with lows in between. This is indicative o f a network link that is quite congested during regular business hours. • The Average Receive bps is higher than the Average Transmit bps. This is typical o f connections used for web browsing and Internet access, where the requests for content are typically small and the responses containing the server data tend to be larger. • Although the number is not clearly indicated in the graph, the 95th percentile o f bandwidth for this connection is 37.9 Mbps downstream and 9.5 upstream. This is another indicator that the link is congested in the downstream direction. Ideally, the 95th percentile should remain below 80% o f link bandwidth. • This link is used fo r Internet connectivity, but also fo r site-to-site VPN, remote access VPN, public safety VPN and other purposes. Even though the bandwidth is constrained in one direction only, this still affects traffic in the other direction. Data requests and acknowledgements fo r outbound/upstream traffic share the same, congested pathway used inbound/downstream. Based on the above, it is apparent that our Internet connection is a chokepoint in our network. Upgrading this connection w ill alleviate congestion and improve more than Internet service. The various VPN services mentioned above as well as other services will perform better if more bandwidth is made available here. Roads T1 The T1 at the "Roads Complex" provides services to Roads, Fleet and ACO/Codes. All o f their nonlocal traffic, which is most o f it, must cross the T1 back to the Government Center before reaching its destination. This includes both data and voice traffic. T l's offer 1.5 Mbps o f symmetrical bandwidth. The following graph and statistics illustrate the state o f this connection: The 95th percentile statistics are 949 Kbps downstream and 1.5 Mbps upstream. This means that the upstream 95th percentile is exactly the same as the maximum bandwidth o f the link. Examining the link at shorter intervals reveals a connection that is overwhelmed downstream during regular business hours, only to be overwhelmed again upstream after hours while data backups run. The end result is poor service to the staff working at the site and overly long data backup windows that increase the risk data loss. A n th o n y T1 The DASO Anthony T1 line is now used as a backup path in the event o f a microwave radio system failure. Therefore, this link is not heavily used under normal circumstances. However, when it is pressed into service, the 1.5 Mbps symmetrical bandwidth that it offers is inadequate. Chaparral T1 The DASO Chaparral T1 will be in a similar position to the Anthony T l, once the Chaparral leg o f the MVRDA Backbone microwave radio system is completed. Because the Chaparral substation is significantly smaller than the one in Anthony, congestion has not been as much o f an issue w ith this link. MPLS Hub, CRRUA P aym ent C enter MPLS and CRRUA W a te r MPLS The final three connections listed above (all MPLS T l's) are used by CRRUA. The 3 Mbps connection at the Government Center acts as a hub fo r traffic from and between both the Payment Center and the W ater Treatment Facility. The Payment Center and W ater Treatment Facility both have 1.5 Mbps service. The Payment Center link is consistently congested during backups, showing a pattern similar to the Roads Complex T l. It is also often congested during normal business hours, though not consistently. The W ater Treatment Facility, on the other hand, is very lightly used and never congested. While the DASO Anthony T l, DASO Chaparral T l and CRRUA links are not in such dire need o f upgrade as the other circuits mentioned here, they all share another common drawback, viz. cost. The T l's to Anthony and Chaparral are both point-to-point connections, meaning they are in effect a single set o f wires dedicated to the county from point A to point B. This is significant because service providers, like CenturyLink, charge mileage when circuits o f this type go beyond a certain distance. Both o f these T l's incur mileage charges that drive up costs. The CRRUA links are MPLS serviced Tls, meaning they take advantage o f the CenturyLink MPLS cloud network. Using this service saved the county and CRRUA money versus the cost o f point-to-point T l's for these sites, again due to mileage charges. While MPLS avoids mileage charges, but it is still expensive compared to other options. More significantly, the Water Treatment Facility does not require nearly as high a level o f service as was initially installed. This provides an excellent opportunity for CRRUA to save money w ith o ut compromising services by changing the type o f service provided there. The following diagram shows the layout o f the network between these sites as it exists today. Proposed WAN Service Changes Working w ith CenturyLink and Core Services LLC, the IT Infrastructure group developed the following plan of replacement services: Description Location Mbps MOE Government Center MOE Roads Complex 20 MOE( copper only) DASO Anthony Substation 10 MOE(copper only) MOE DASO Chaparral Substation CRRUA Payment Center 7 20 200 Proposed costs $802.83 $514.90 $478.80 $358.00 $514.90 VDSL2 40 up 2 down MOE EVC to Internet CRRUA Water Treatment Facility Government Center Internet Circuit 100Mbps Government Center 40/20 $144.00 100 $78.00 100 $2,000.00 $ 4 ,8 9 1 .4 3 All costs in the above table are monthly service costs, excluding taxes and fees. The above services are almost all based on Metropolitan Optical Ethernet services (MOE). This offers a number o f long term benefits to the county: • Higher reliability (Fiber optic connections are inherently more reliable than buried copper links. In this case, they also take advantage o f much newer infrastructure than traditional, purely copper-based connections.) • Greater available bandwidth. • Flexibility to increase bandwidth as needed w ithout provisioning a new circuit. With MOE, the existing circuit is "upgraded" using a change in equipment programming. (This does not apply to the copper-based MOE services, because of their dependence on copper wiring for the "last mile" connection.) • Lower cost per bit/kilobit/m egabit than traditional telecom services. • Lower cost line cards fo r connecting routers and other equipment to these services. At an architectural level, the network bears more similarity to the MPLS network currently used by CRRUA than the point-to-point T ls employed at our other sites today. The 200 Mbps MOE connection on the first line is treated as a shared resource fo r whatever we decide to connect to it. In this proposal, the 200 Mbps is divided into a 100 Mbps Internet EVC (Ethernet Virtual Circuit), with 95 Mbps used for private network connectivity, such as servicing the connections to the Roads Complex, DASO's substations and the CRRUA Payment Center. The one service that is not MOE based in the above proposal is VDSL (a new/improved version o f DSL service) at the CRRUA W ater Treatm ent Facility. The VDSL service provides more than enough bandwidth fo r the site at a significant savings over either MPLS over T l or MOE in this case. It is not as reliable as the other services included in the proposal, but it should more than suffice for their needs. The planned network is illustrated below. There is also an additional service added to the list above, but not included in the diagram. This is a MOE EVC to the State fo r BOE. In the past, a dedicated Frame Relay circuit was maintained for this purpose. The link guaranteed tha t BOE traffic to the state would have a minimum amount o f bandwidth available at all times and also provided an alternate path to reach the Secretary o f State's election systems. This link was discontinued when CenturyLink discontinued support o f Frame Relay and ATM services. W hether a similar connection over MOE can be arranged depends upon what State DolT is willing and able to support. A common problem in deploying MOE services is "build out" cost. The cost o f a build out is the cost incurred to run fiber optic cable from the provider's nearest Add/Drop point to the facility being serviced. In many cases, these costs are charged to the customer in advance o f the service being provisioned. In other cases, the costs may be built-in into the service contract if the term is too short or the quantity o f services ordered is too small. In addition, CenturyLink requires that customer provide conduit from the property edge into the building in every case where new cable must be pulled into a customer building. Both o f these are potentially expensive and can kill a project o f this type. In our case, Core Services worked w ith a contractor to determine w hether there were any instances where the county would face these challenges. Based on their review, there will be no build out costs fo r these services. This requires a 5 year term o f service from the county, but also controls a significant county operating cost fo r that period o f time. nA Costs o f hardware can also be a difficulty in some cases. However, the county has existing equipment tha t can provide the required connectivity at each location except the CRRUA Water Treatment Facility. In order to establish a site-to-site VPN connection there, a small firewall costing less than $600 will be required. This will be more than paid fo r by CRRUA's savings in the just the first month o f these services. In the future, upgrades to the routers at the Government Center could be required to provide full, line-rate service to all sites. However, that remains to be seen and will vary depending upon other projects the IT department may undertake in the future. Cost by Department A final im portant topic is the allocation o f costs. Under the current service model, costs are distributed among departments as follows: Shared/IT Costs (DS-3 loop and Internet Service) Engineering DASO CRRUA $2,777.69 $217.14 $1,424.06 $1,725.00 More simply, the cost allocation today between the county and CRRUA is as follows: Doña Ana County CRRUA $4,418.89 $1,725.00 Given the shared nature o f MOE, it was determined that CRRUA should pay a portion o f the cost o f the MOE and Internet service provided through the county at the Government Center. A 10% charge was selected since the CRRUA Payment Center w ill have available bandwidth amounting to 10% o f the 200 Mbps MOE bandwidth at the Government Center. Costs were similarly allocated to the Roads Complex, which is subsequently divided between Engineering and DASO. The division between Engineering and DASO was determined as follows: - DASO will have 9 users in the form er ACO/Codes building by the time these contracts are completed, whereas Engineering will have 24 users (13 in Fleet and 11 at Roads). Therefore, DASO will account fo r approximately 28% o f expected traffic utilization, while Engineering (Roads and Fleet combined) will account fo r the remaining 72%. No Internet costs are redistributed to internal county departments, since the IT department has traditionally paid all Internet service costs fo r the county. Also, MOE costs fo r the Government Center were not added to the DASO MOE Anthony and Chaparral expenses in this way because these will be backup rather than primary links. Therefore, DASO's costs fo r the new services is as follows: - $478.80/m onth for Anthony 10 MOE, w ith no MOE overhead charged because it's a backup link - $358/m onth for Chaparral 7 MOE, w ith no MOE overhead charged, because it's a backup link - MOE services at the Roads Complex cost $514.90/mo. Because this is a production link, charge 10% o f the shared MOE infrastructure at the Government Center ($802.83), which amounts to $80.28/month. Therefore, the aggregate m onthly cost o f service fo r the Roads Complex is $595.19. ■ • ' - Engineering accounts fo r 72% o f the headcount and DASO accounts for the other 28%. - $166.65/month is 28% o f the monthly cost o f service fo r the Roads Complex. Therefore, DASO's m onthly responsibility comes out to $1,003.45. Similarly, Engineering's cost was determined as follows: - The cost o f $595.19/m onth was calculated for the Roads Complex as above. - $428.54 is 72% o f the total Roads Complex monthly cost. Thus, Engineering's responsibility is $428.54/month. Based on this percentage cost sharing and the individual service costs outlined above, the costs o f the new services would be allocated as follows: Shared/IT Costs Engineering (with 10% cost share) DASO CRRUA (with 10% cost share) $2,512.46 $428.54 $1,003.45 $947.00 (Net MRC change: - $268.14) (Net MRC change:+ $211.40) (Net MRC change: - $420.61) (Net MRC change:-$778.00) Thus, only Engineering sees an increase in expenses. However, the ir gains are very significant compared to the expense. Although the Roads complex monthly cost goes up significantly a little more than $200 per month, the site (including Roads, Fleet and DASO) receives 13X greater bandwidth. Moreover, the extra cost o f the services to the Roads Complex is more than offset by a monthly net reduction o f about $474 in the county's CenturyLink bill once all services are cutover. Doña Ana County Cost o f new services CRRUA Cost o f new services $3,944.45 $947.00 Assuming the county decides to purchase these services, it is im portant to note that there would be a brief period during which the old and the new services would be required. During that period, our costs would go up somewhat. Completing the cutovers from one service to another will be a three step process in each case. First, the county will test and accept the new circuit. Second, county IT will make the new circuit active in the network. Finally, the old circuit will be disabled and disconnected upon county IT's request once it is clear tha t the new services are working as expected. Because these steps all take some tim e to complete, there will necessarily be an overlap in services during each cutover. However, IT is working closely w ith CenturyLink and Core Business Solutions to identify the most efficient way to order and implement the services so that these overlaps can be kept to an absolute minimum. At this point, we expect to keep overlaps down to no more than 1 month per cutover. Our goal w ill be to cutover in days, rather than weeks, fo r each circuit. Because o f the financial and service benefits, the IT Infrastructure division strongly recommends these changes to the county, CRRUA and affected departments. Please direct any questions to Bob Bunting, IT Infrastructure Manager (575-525-5903, bobb(5)donaanacountv.org). CenturyLink^ Business Government and Education Services To; BOB BUNTING Dona Ana County From: Jerry Newsom, Ben Romero Subject: Dona Ana County Internet Circuit via Price Agreement No. 20-361-12-01578AA Date; Friday, March 3, 2017 For purchases under the State of New Mexico Master CenturyLink Loyal Advantage Agreement a signed memorandum is all that is needed. Each Service should have a separate listing of the service description, in this case one for CenturyLink IQ Internet Services (IQ). The purchase order should include all of the following elements: CenturyLink Internet Port Services (IQ) (1) CenturyLink Internet Services (IQ) - Monthly recurring charges shall be: $2,250.00 Nonrecurring charges shall be: $ (2) 0 . 00 . Location of service: Address____________________________ Internet IQ Speed Port Address 100Mbps/1Gbps CPA $2,000.00 $250.00 Total______ NRC $2,250.00 $0.00 (3) Term length which must match a term length available in the tariff for the service); 60 Months (4) Quantities:1 circuit at each location above (5) USOCs (if applicable) as required: (6) This statement that the "This Purchase Order is governed by the terms and conditions of CenturyLink's/Qwest’s applicable Tariff and the State of New Mexico Master Qwest Loyal Advantage Agreement, 20-361-12-01578AA, Pramata ID #: 959565_, which are incorporated herein"; (7) This statement that "Any preprinted terms contained in the Purchase Order shall not amend, modify or supplement the CenturyLink/Qwest Loyal Advantage Agreement or the Tariff in any way whatsoever, notwithstanding any provisions in the Purchase Order to the contrary, or supplement the previously agreed upon CenturyLink/Qwest Loyal Advantage Agreement. (8) State of New Mexico Pricing agreement Number 20-361-12-01578AA CenturyLink OMR# N48895 Please contact me any time for clarification or additional information on this or any other telecommunications matter. Sincerely, Jerry Newsom Core Business Systems Authorized CenturyLink Agent Dona Ana County NM Qwest Communications Company, LLC d/b/a CenturyLink QCC Authorized Signature Authorized Signature Name Typed or Printed Mark Hallamore Name Typed or Printed State o f New Mexico Department of Information Technology Agreement Price Agreement No. 20-361-12-01578CL THIS Information Technology Agreement (“Agreement”) is made by and between the State of New Mexico, Department of Information Technology, hereinafter referred to as the “Procuring Agency” and Qwest Communications Company, LLC d/b/a CenturyLink QCC, hereinafter referred to as the “Contractor” and collectively referred to as die “Parties”. WHEREAS, pursuant to the Procurement Code, NMSA 1978 13-1-28 et. seq; and Procurement Code Regulations, NMAC 1.4.1 et.seq; the Contractor has held itself out as expert in implementing the Scope o f Work as contained herein and the Procuring Agency has selected the Contractor as the offeror most advantageous to the State of New Mexico; and WHEREAS, all terms and conditions of the RFP#20-361-12-0I578 and the Contractor’s response to such docum ents) are incorporated herein by reference; and WHEREAS, this Agreement RFP#20-361-12-01578 Session Initiation Protocol (SIP) Trunking and Related Services, established and maintained by the New Mexico State Purchasing Division o f the General Services Department; NOW, THEREFORE, IT IS MUTUALLY AGREED BETWEEN THE PARTIES: ARTICLE 1 - DEFINITIONS A. B. C. D. E. F. “Acceptance” or “Accepted” shall mean the approval, after Quality Assurance, of all Deliverables by an Executive Level Representative of the Procuring Agency. “Application Deployment Package” shall mean the centralized delivery of business critical applications including the source code (for custom software), documentation, executable code and deployment tools required to successfully install application software fixes including additions, modifications, or deletions produced by the Contractor. “Business Days” shall mean Monday through Friday, 7:30 a.m. (MST or MDT) to 5:30 p.m. except for federal or state holidays. “Change Request” shall mean the document utilized to request changes or revisions in the Scope of Work - Exhibit A, attached hereto and incorporated herein, “Chief Information Officer f“CIO”V’ shall mean the Cabinet Secretary/CIO of the Department o f Information Technology for the State o f New Mexico or Designated Representative. “Confidential Information” means any communication or record (whether oral, written, electronically stored or transmitted, or in any other form) that consists of: (1) confidential client information as such term is defined in State or Federal statutes and/or regulations; (2) all non-public State budget, expense, payment and other financial information; (3) all attorney-client privileged work product; (4) all information designated by the Procuring G. H. I. J. K. L. M. N. O. P. Q. R. Agency or any other State agency as confidential, including all information designated as confidential under federal or state law or regulations; (5) unless publicly disclosed by the Procuring Agency or the State of New Mexico, the pricing, payments, and terms and conditions o f this Agreement, and (6) State information that is utilized, received, or maintained by the Procuring Agency, the Contractor, or other participating State agencies for the purpose o f fulfilling a duty or obligation under this Agreement and that has not been publicly disclosed and (7) any information that is not generally available to the public, whether of a technical, business or other nature and that the receiving party knows or has reason to know is confidential, proprietary or trade secret information of the disclosing party or is of such a nature that the receiving party should reasonably understand that the disclosing party desires to protect such information against unrestricted disclosure. “Contract Manager” shall mean a Qualified person from the Procuring Agency responsible for all aspects o f the administration of this Agreement. Under the terms of this Agreement, the Contract Manager shall be a Designated Representative. “Default” or “Breach” or “Cause” shall mean a violation o f this Agreement by either failing to perform one’s own contractual obligations or by interfering with another Party’s performance of its obligations, which failure or interference is not remedied: (a) for payment defaults by customer, within five days o f separate written notice from Contractor o f such default; or (b) for any other material breach, within 30 days after written notice. “Deliverable” shall mean any verifiable outcome, result, service or product that must be delivered, developed, performed or produced by the Contractor as defined by the Scope of Work. “Designated Representative” shall mean a substitute(s) for a title or role, e.g. Contract Manager, when the primary is not available. “DoIT” shall mean the Department of Information Technology. "DFA" shall mean the Department of Finance and Administration; “DFA/CRB” shall mean the Department o f Finance and Administration, Contracts Review Bureau. “Escrow” shall mean a legal document (such as the software source code) delivered by the Contractor into the hands of a third party, and to be held by that party until the performance o f a condition is Accepted; in the event Contractor fails to perform, the Procuring Agency receives the legal document, in this case, Source Code. “Enhancement” means any modification including addition(s), modification(s), or deletion(s) that, when made or added to the program, materially changes its or their utility, efficiency, functional capability, or application, but does not constitute solely an error correction. "Executive Level Representative’1shall mean the individual empowered with the authority to represent and make decisions on behalf o f the Procuring Agency's executives or his/her Designated Representative. “GRT” shall mean New Mexico gross receipts tax. “Intellectual Property” shall mean any and all proprietary information developed specifically for Customer at Customer’s request and paid for pursuant to the terms of this Agreement. “Independent Verification and Validation PMY&V”)” shall mean the process of evaluating a Project and the Project’s product to determine compliance with specified S. T. U. V. W. X. Y. Z. AA. BB. CC. DD. EE. requirements and the process o f determining whether the products of a given development phase fulfill the requirements established during the previous stage, both of which are performed by an entity independent of the Procuring Agency. “Know flow » shall mean all technical information and knowledge including, but not limited to, all documents, computer storage devices, drawings, flow charts, plans, proposals, records, notes, memoranda, manuals and other tangible items containing, relating or causing the enablement of any Intellectual Property developed and paid for under this Agreement specifically for Customer at Customer’s request by Contractor. “Payment Invoice” shall mean a detailed, certified and written request for payment of Services or Deliverables by and rendered from the Contractor to the Procuring Agency. Payment Invoice(s) must contain the fixed price Deliverable cost and identify the Deliverable for which the Payment Invoice is submitted. “Performance Bond” shall mean a surety bond which guarantees that the Contractor will fully perform the Contract and guarantees against breach of contract. “Project” shall mean a temporary endeavor as defined by a contract that may be issued under this Agreement undertaken to solve a well-defined goal or objective with clearly defined start and end times, a set o f clearly defined tasks, and a budget. The Project terminates once the Project scope is achieved and the Project approval is given by the Executive Level Representative and verified by the Procuring Agency CIO to the DoIT. A Project, will not include order for the services pursuant to the Price List outlined in Exhibit A. “Project Manager” shall mean a Qualified person from the Procuring Agency responsible for the application o f knowledge, skills, tools, and techniques to the Project activities to meet the Project requirements from initiation to close. Under the terms of this Agreement, the Project Manager shall be a Designated Representative. “Qualified” means demonstrated experience performing activities and tasks with Projects “Quality Assurance” shall mean a planned and systematic pattern of all actions necessary to provide adequate confidence that a Deliverable conforms to established requirements, customer needs, and user expectations. “Services” shall mean the tasks, functions, and responsibilities assigned and delegated to the Contractor under this Agreement. ’’State Purchasing Agent (SPAY1shall mean the State Purchasing Agent for the State of New Mexico or his/her Designated Representative. “State Purchasing Division fSPDV’ shall mean the State Purchasing Division of the General Services Department for the State of New Mexico. “Software” shall mean all operating system and application software used by the Contractor to provide the Services under this Agreement. “Software Maintenance” shall mean the set of activities which result in changes to the originally Accepted (baseline) product set. These changes consist of corrections, insertions, deletions, extensions, and Enhancements to the baseline system. “Source Code” shall mean the human-readable programming instructions organized into sets o f files which represent the business logic for the application which might be easily read as text and subsequently edited, requiring compilation or interpretation into binary or machine-readable form before being directly useable by a computer. FF. “Turnover Plan” means the written plan developed by the Contractor and approved by the Procuring Agency in the event that the work described in this Agreement transfers to another vendor or the Procuring Agency. ARTICLE 2 - SCOPE OF WORK A. Scone of W ork. The Contractor shall perform the work as outlined in Exhibit A, attached hereto and incorporated herein by reference. a. The Contractor shall be limited to the Products, Services, or Deliverables, awarded in this Price Agreement as outlined in Exhibit A, attached hereto and incorporated herein by reference. There are no volume or purchase commitments as to any specific dollar amount which will be contracted by the Procuring Agency or the State as a whole. b. Under the terms and conditions of this DoIT Price Agreement and upon written approval in advance by the DoIT, State of New Mexico agencies, commissions, institutions, political subdivisions and local bodies (hereinafter “Authorized Entities” or “Customers”) may issue orders for ítems and/or services described herein. The terms and conditions of this Price Agreement shall form a part of each order issued hereunder. However, the State is not responsible for the transactions between the Contractor and non-state entities. The non-state entities will have the same obligations under this Agreement as the Procuring Agency with respect to any service transactions under this Agreement. c. The Price List as outlined in Exhibit A, attached hereto and incorporated herein by reference will remain fixed for duration o f the agreement, four(4) years. Any changes to the DoIT agreement(s) to include pricing reductions shall be submitted to DoIT and SPD for review and approval. The awarded pricing may be negotiated at any point throughout the duration o f the agreement with the procuring entity. d. Any new rate centers and related pricing that become available and provided by the Contractor during the term o f this Agreement may be submitted to DoIT for review and approval. As a result, any approved changes shall be processed as an amendment to this Agreement. B. Performance Measures. The Contractor shall substantially perform to the satisfaction of the Procuring Agency the Performance Measures set forth in Exhibit A. In the event the Contractor fails to obtain the results described in Exhibit A, the Procuring Agency may provide written notice to the Contractor o f the Default and specify a reasonable period of time in which the Contractor shall advise the Procuring Agency of specific steps it will take to achieve these results and the proposed timetable for implementation. Nothing in this Section shall be construed to prevent the Procuring Agency from exercising its rights pursuant to Article 6 or Article 16. C. Schedule. The Contractor shall meet the due dates established by DoIT as a result of any contracted scope of work, as set forth in Exhibit A, which due dates shall not be altered or waived by the Procuring Agency without prior written approval, through the Amendment process, as defined in Article 25. D. License. Not Applicable. The Parties agree there is no License. E. Source Code. Not Applicable. The Parties agree there is no Source Code. F. The Procuring Agency’s Rights. 1. Rights to Software. Not Applicable. The Parties agree the Procuring Agency does not have rights to the Software. 2. Proprietary Rights. The Contractor will reproduce and include the State of New Mexico’s copyright and other proprietary notices and product identifications provided by the Contractor on such copies, in whole or in part, or on any form of the Deliverables. 3. Rights to Data. The Procuring Agency has right to its data when any o f its data is stored on the Contractor’s servers or within the Contractors custody and is the sole property of the Procuring Agency. The Contractor, subcontractor(s), officers, agents and assigns shall not make use of, disclose, sell, copy or reproduce the Procuring Agency’s data in any manner, or provide to any entity or person outside of the Procuring Agency without the express written authorization of the Procuring Agency. G. Session Initiation Protocol (SIP) Services. 1. Interoperate with Existing Procuring Agency Equipment. The Contractor shall interoperate with existing SIP compatible Procuring Agency equipment and switches which include Avaya, Cisco, and Mitel. 2. Basic 911 or E911 Services. The Contractor shall provide Basic 911 or E911 emergency services in the calling coverage area(s) as outlined in Appendix G. The Contractor’s emergency service limitations are found in Exhibit B. 3. Electronic Call Data File. The Contractor shall provide the Procuring Agency a tab delimited text file on a CD for Inbound and Outbound Calling services by the 5th day of every month as part of any SIP Trunking Services. The electronic call data file shall have at a minimum the fields as outlined below: a) Date of call start (mmddyyyy) b) Time of call start/trunk seizure (hh:mm:ss) c) Duration of call (minutes: seconds or minutes: tenths o f minute) d) Indication of inbound or outbound originating number (minimum 10 digits) e) f) g) h) i) Indication of terminating number (minimum 10 digits) Indication of answer supervision (answered and unanswered) Indication o f feature(s) invoked, if applicable Total Cost of Call, if available Records for unanswered calls (‘attempts’) 4. Session Initiation Protocol (SIP) Training Services. The Contractor shall make available training for its SIP services. The training services and Price List are found in Appendix C-8. 5. Coverage Area Availability in the State o f New Mexico. The Contractor shall provide SIP service coverage at the Rate Centers found in Appendix G. H. Service Limitations. The Contractor’s Service limitations are found in Exhibit B. A R TIC LE 3 - COMPENSATION A. Compensation Schedule. The Procuring Agency shall pay to the Contractor based upon fixed prices for each Deliverable, per the schedule outlined in Exhibit A, less retainage, if any, as identified in Paragraph D. B. Payment. The total compensation under this Agreement shall not exceed the maximum Price List for products purchased and/or services rendered, per the schedule outlined in Exhibit A, excluding New Mexico gross receipts tax. This amount is a maximum and not a guarantee that the work assigned to be performed by Contractor under this Agreement shall equal the amount stated herein. The Parlies do not intend for the Contractor to continue to provide Services without compensation when the total compensation amount is reached. Contractor is responsible for notifying the Procuring Agency when the Services provided under this Agreement reach the total compensation amount. In no event will the Contractor be paid for Services provided in excess of the total compensation amount without this Agreement being amended in writing prior to services, in excess o f the total compensation amount being provided. Payment shall be made upon Acceptance o f each Deliverable according to Article 4 and upon the receipt and Acceptance o f a detailed, certified Payment Invoice. Payment will be made to the Contractor's designated mailing address. In accordance with Section 13­ 1-158 NMSA 1978, payment shall be tendered to the Contractor within thirty (30) days o f the date of written certification o f Acceptance. If payment is made by mail, the payment shall be deemed tendered on the date it is postmarked. After the thirtieth day from the date that written certification o f acceptance is issued, late payment charges shall be paid on the unpaid balance due on the contract to the contractor at the rate o f one and one-half (1.5%) percent per month. All Payment Invoices MUST BE received by the Procuring Agency no later than thirty (30) days after the termination o f this Agreement. Payment Invoices received after such date WILL NOT BE PAID. C. Taxes. The Contractor shall be reimbursed by the Procuring Agency for applicable New Mexico gross receipts taxes, excluding interest or penalties assessed on the Contractor by any authority. The payment of taxes for any money received under this Agreement shall be the Contractor's sole responsibility and should be reported under the Contractor's Federal and State tax identification number(s). Contractor and any and all subcontractors shall pay all Federal, state and local taxes applicable to its operation and any persons employed by the Contractor. Contractor shall require all subcontractors to hold the Procuring Agency harmless from any responsibility for taxes, damages and interest, if applicable, contributions required under Federal and/or state and local laws and regulations and any other costs, including transaction privilege taxes, unemployment compensation insurance, Social Security and Worker’s Compensation. The Price Lists as indicated in Exhibit A, do not include any applicable taxes and surcharges which may be required by law. If any federal, state, or local tax, fee or other charges are required by law to be collected by the Contractor, the Contractor shall provide the fees and/or charges as separate items when invoicing the Procuring Agency. If Procuring Agency is exempt from any taxes, it must provide the Contractor with an appropriately completed and valid tax exemption certificate or other evidence acceptable to the Contractor. The Contractor is not required to issue any exemption, credit or refund of any tax payment for usage before the Procuring Agency submission o f valid evidence of exemption, D. Retainage. As a result o f any Project subject to this Agreement, the Procuring Agency shall retain 20% o f the fixed-price Deliverable cost for each Deliverable that is the subject of this Agreement as security for full perfonnance of this Agreement. All amounts retained shall be released to the Contractor upon Acceptance of the final Deliverable. E. Performance Bond. Not Applicable. The Parties agree there is no Performance Bond. ARTICLE 4 - ACCEPTANCE A. Submission. Upon completion o f agreed upon Deliverables as set forth in Article 2 and Exhibit A, Contractor shall submit a Payment Invoice with the Deliverable, or description of the Deliverable, to the Procuring Agency. Each Payment Invoice shall be for the fixed Deliverable price as set forth in Article 2 and Exhibit A, less retainage as set forth in Article 3(D). B. Acceptance. In accord with Section 13-1-158 NMSA 1978, the Executive Level Representative shall determine if the Deliverable provided meets specifications. No payment shall be made for any Deliverable until the individual Deliverable that is the subject of the Payment Invoice has been Accepted, in writing, by the Executive Level Representative. In order to Accept the Deliverable, the Executive Level Representative, in conjunction with the Project Manager, will assess the Quality Assurance level o f the Deliverable and determine, at a minimum, that the Deliverable: 1. 2. 3. 4. 5. Complies with the Deliverable requirements as defined in Article 2 and Exhibit A; Complies with the terms and conditions of the this Agreement; Meets the performance measures for the Deliverable(s), if any, set forth in this Agreement; Meets or exceeds the generally accepted industry standards and procedures for the Deliverable(s); and Complies with all the requirements o f this Agreement. If the Deliverable is deemed Acceptable under Quality Assurance by the Executive Level Representative or their Designated Representative, the Executive Level Representative will notify the Contractor o f Acceptance, in writing, fifteen (15) Business Days from the date the Executive Level Representative receives the Deliverable(s) and accompanying Payment Invoice. C. Rejection. Unless the Executive Level Representative gives notice o f rejection within the fifteen (15) Business Day Acceptance period, the Deliverable will be deemed to have been Accepted. If the Deliverable is deemed unacceptable under Quality Assurance, fifteen (15) Business Days from the date the Executive Level Representative receives the Deliverable(s) and accompanying Payment Invoice, the Executive Level Representative will send a consolidated set o f comments indicating issues, unacceptable items, and/or requested revisions accompanying the rejection. Upon rejection and receipt of comments, the Contractor will have ten (10) Business Days to resubmit the Deliverable to the Executive Level Representative with all appropriate corrections or modifications made and/or addressed. The Executive Level Representative will again determine whether the Deliverable(s) is Acceptable under Quality Assurance and provide a written determination within fifteen (15) Business Days of receipt o f the revised or amended Deliverable. If the Deliverable is once again deemed unacceptable under Quality Assurance and thus rejected, the Contractor will be required to provide a remediation plan that shall include a timeline for corrective action acceptable to the Executive Level Representative. The Contractor shall also be subject to all damages and remedies attributable to the late delivery o f the Deliverable under the terms of this Agreement and available at law or equity. In the event that a Deliverable must be resubmitted more than twice for Acceptance, the Contractor shall be deemed as in breach o f this Agreement. The Procuring Agency may seek any and all damages and remedies available under the terms of this Agreement and available at law or equity. Additionally, the Procuring Agency may terminate this Agreement. ARTICLE 5-TERM THIS AGREEMENT SHALL NEITHER BE EFFECTIVE NOR BINDING UNTIL APPROVED BY THE DoIT AND THE STATE PURCHASING AGENT. This Agreement shall terminate on June 3 0 ,201S with the option to extend, unless terminated pursuant to Article 6. The extension may be on an annual basis or for another two (2) years. No contract term, including extensions and renewals, shall not exceed four years, except as set forth in Section 13­ 1-150 NMSA 1978. This Agreement will apply to any signed and approved unexpired service orders properly placed during the Agreement’s term. ARTICLE 6 - TERMINATION A. Grounds. The Procuring Agency may terminate this Agreement for convenience with 30 day written notice or cause, The Contractor may only terminate this Agreement based upon the Procuring Agency’s uncured, material breach of this Agreement The Customer will remain liable for charges accrued but unpaid as of the termination date. B. Appropriations. The Procuring Agency may terminate the Agreement, if required by changes in State or federal law, or because of court order, or because of insufficient appropriations made available by the United States Congress and/or the New Mexico State Legislature for the performance of this Agreement. The Procuring Agency’s decision as to whether sufficient appropriations are available shall be accepted by the Contractor and shall be final. If the Procuring Agency terminates this Agreement pursuant to this subsection, the Procuring Agency shall provide the Contractor written notice of such termination at least twenty (20) Business Days prior to the effective date of the termination. Procuring Agency intends to continue this Agreement for its entire contract term and to satisfy its obligations hereunder. For each fiscal period for Procuring Agency: (a) Procuring Agency agrees to include its budget request appropriations sufficient to cover Procuring Agency’s obligations under this Agreement; (b) Procuring Agency agrees to use all reasonable and lawful means to secure these appropriations; (c) Procuring Agency agrees it will not use non-appropriations as a means of terminating this Agreement in order to acquire functionally equivalent products or services from a third party. Procuring Agency may choose to reallocate funds appropriated for the Services or Deliverables to other products or services, if permitted by law, to the extent that the other products or services are not functionally equivalent to the Services or Deliverables and, in that case, deem the appropriations insufficient for the performance of this Agreement if no other funding source is available for such purpose. Procuring Agency reasonably believes that sufficient funds to discharge its obligations can and will lawfully be appropriated and made available for this purpose. C. Notice: Opportunity to Cure, 1. Except as otherwise provided in Paragraph (6)(C)(2) below, each party shall give written notice of termination at least thirty (30) days prior to the intended date of termination, which notice shall (i) identify all the Party’s material breaches of this Agreement upon which the termination is based and (ii) state what the breaching Party must do to cure such material breaches. The notice of termination shall only he effective (i) if the breaching Party does not cure all material breaches within the thirty (30) day notice period or (ii) in the case of material breaches that cannot be cured within thirty (30) days, the breaching party does not, within the thirty (30) day notice period, notify the other Party of its intent to cure and begin with due diligence to cure the material breach. 2. Notwithstanding the foregoing, this Agreement may be terminated immediately upon written notice to the Contractor (i) if the Contractor becomes unable to perform the services contracted for, as determined by the Agency in good faith; (ii) if, during the term of this Agreement, the Contractor is suspended or debarred by the State Purchasing Agent; or (ili) the Agreement is terminated pursuant to Paragraph 6.B above, “Appropriations”, o f this Agreement. D. Liability. Except as otherwise expressly allowed or provided under this Agreement, the Agency’s sole liability upon termination shall be to pay for acceptable work performed prior to the Contractor’s receipt or issuance of a notice o f termination and any applicable Cancellation Charges; provided, however, that a notice o f termination shall not nullify or other-wise affect either party’s liability for pre-termination defaults under or breaches of this Agreement. The Contractor shall submit an invoice for such work within thirty (30) days of receiving or sending the notice of termination. THIS PRO VISION IS NOT EXCLUSIVE AND DOES NOT WAIVE OTHER LEGAL RIGHTS AND REMEDIES CAUSED BY THE PARTY’S DEFA ULT/BREACII OF THIS AGREEMENT. ARTICLE 7 - TERMINATION MANAGEMENT A. Contractor. In the event this Agreement is terminated for any reason, or upon expiration, and in addition to all other rights to property set forth in this Agreement, the Contractor shall: 1. Transfer, deliver, and/or make readily available to the Procuring Agency property in which the Procuring Agency has a financial interest and any and all data, Know How, Intellectual Property, inventions or property o f the Procuring Agency; Incur no further financial obligations for materials, Services, or facilities except for those already provided under the Agreement without prior written approval of the Procuring Agency; Terminate all purchase orders or procurements and any subcontractors and cease all work, except as the Procuring Agency may direct, for orderly completion and transition; Take such action as the Procuring Agency may direct, for the protection and preservation of all its property and all confidential records related to and required by this Agreement; Agree that the Procuring Agency is not liable for any costs arising out of termination and that the Procuring Agency is liable only for costs o f Deliverables Accepted prior to the termination of the Agreement; Cooperate fully in the closeout or transition of any activities to permit continuity in the administration of Procuring Agency’s programs; In the event that this Agreement is terminated due to the Contractor’s negligence or willful misconduct, negligence, or willful misconduct results in reductions in the Procuring Agency’s receipt of program funds from any governmental agency, the Contractor shall remit to the Procuring Agency the full amount of the reduction, subject to Article 18 below; 2. 3. 4. 5. 6. 7. 8, 9. B. Should this Agreement terminate due to the Contractor's Default, the Contractor shall reimburse the Procuring Agency for all reasonable costs arising from hiring new Contractor/subcontractors at potentially higher rates and for other costs incurred that could not otherwise be reasonably mitigated under the circumstances, subject to Article 18 below; In the event this Agreement is tenninated for any reason, or upon its expiration, the Contractor shall develop and submit to the Procuring Agency for approval an Agreement Turnover Plan at least ten (10) Business Days prior to the effective date o f termination. Such Turnover Plan shall describe the Contractor’s policies and procedures that will ensure: (1) the least disruption in the delivery o f Services during the transition to a substitute vendor; and (2) cooperation with the Procuring Agency and the substitute vendor in transferring information and Services. The Turnover Plan shall consist o f the orderly and timely transfer o f files, data, computer software, documentation, system turnover plan, Know How, Intellectual Property and other materials, to which the Procuring Agency has been granted a license that remains in effect after the termination or that it owns pursuant to the terms o f this Agreement, whether provided by the Procuring Agency or created by the Contractor under this Agreement, to the Procuring Agency, including but not limited to, user manuals with complete documentation, functional technical descriptions o f each program and data flow diagrams. At the request of the Procuring Agency, the Contractor shall provide to the Procuring Agency a copy of the most recent versions of all files, software, Know How, Intellectual Property and documentation, whether provided by the Procuring Agency or created by the Contractor under this Agreement to which the Procuring Agency has been granted a license that remains in effect after the termination or that it owns pursuant to the terms of this Agreement. Procuring Agency. In the event this Agreement is terminated for any reason, or upon expiration, and in addition to all other rights to property set forth in this Agreement, the Procuring Agency shall: 1. Retain ownership of all work products and documentation created by the Contractor for the Procuring Agency at the Procuring Agency’s request pursuant to this Agreement; and 2. Pay the Contractor all amounts due for Services or Deliverables Accepted prior to the effective date of such termination or expiration. ARTICLE 8 - INDEMNIFICATION A. General. The Contractor shall defend, indemnify and hold harmless the Procuring Agency, the State of New Mexico and its employees from all actions, proceedings, claims, demands, costs, damages, reasonable attorneys’ fees and all other liabilities and expenses of any kind from any source which may arise out of a third party claim with respect to the performance o f this Agreement, and caused by the negligent act or negligent failure to act o f the Contractor, its officers, employees, servants, subcontractors or agents, during the time when the Contractor, its officer, agent, employee, servant or subcontractor thereof has or is performing Services pursuant to this Agreement B. The indemnification obligation under this Agreement shall not be limited by the existence of any insurance policy or by any limitation on the amount or type o f damages, compensation or benefits payable by or for Contractor or any subcontractor, and shall survive the termination o f this Agreement. Money due or to become due to the Contractor under this Agreement may be retained by the Procuring Agency, as necessary, to satisfy any outstanding claim that the Procuring Agency may have against the Contractor. ARTICLE 9 - INTELLECTUAL PROPERTY ■ Contractor hereby acknowledges and grants to the Procuring Agency and the State of New Mexico, a perpetual, non-exclusive, royalty free license to reproduce, publish, use, copy and modify the Intellectual Property and Know How created or conceived pursuant to, or as a result of, performance of this Agreement. ARTICLE 10-INTELLECTUAL PROPERTY INDEMNIFICATION A. Intellectual Property Indemnification. The Contractor shall defend, at its own expense, the Procuring Agency, the State o f New Mexico and/or any other State of New Mexico body against any third party claim that any product or service provided under this Agreement when used in conformity with all instructions and documentation, infringes any patent, copyright or trademark, and shall pay all costs, damages and attorney’s fees that may be awarded as a result of such claim. In addition, if any third party obtains a judgment against the Procuring Agency based upon Contractor’s trade secret infringement relating to any product or Services provided under this Agreement, the Contractor agrees to reimburse the Procuring Agency for all costs, attorneys’ fees and the amount o f the judgment but only to the extent that Contractor is promptly notified of the claim and permitted to control the defense o f the claim. To qualify for such defense and/or payment, the Procuring Agency shall: 1. Give the Contractor written notice, within forty-eight (48) hours, of its notification o f any claim; 2. Allow the Contractor to control the defense and settlement of the claim; and 3. Cooperate with the Contractor, in a reasonable manner, to facilitate the defense or settlement o f the claim. • B. Procuring Agency Rights. If any product or service becomes, or in the Contractor’s opinion is likely to become, the subject of a claim of infringement, the Contractor shall, at its sole expense: 1. Provide the Procuring Agency the right to continue using the product or service and fully indemnify the Procuring Agency against all claims that may arise out of the Procuring Agency’s use of the product or service in accordance with Section 10A above; //, ^ 2. 3. Replace or modify the product or service with a non-infringing Service or Deliverable that is functionally equivalent in all material respects or If (1) or (2) are not reasonably achievable by the Contractor, terminate provision of the affected product or service and refund an amount equal to the value of the returned product or service, less the unpaid portion of the purchase price and any other amounts, which are due to the Contractor. The Contractor’s obligation will be void as to any product or service modified by the Procuring Agency to the extent such modification is the cause o f the claim. The Contractor’s obligations are applicable if the action arises from incorrect use o f the Services or Deliverables, or combinations o f Services or Deliverables provided by the Contractor with other products or services or transmission of customer supplied content, Other information that gives rise to the claim. The Contractor’s obligation to defend such an infringement claim will not apply to systems, services, equipment or software not provided by the Contractor, including any local exchange carrier or other service provider, notwithstanding that such provider is engaged on Customer’s behalf by the Contractor. This subsection does not apply to any CPE supplied by the Contractor or its affiliates or to Services or Deliverables for which Customer both provided and controlled the design o f such Service or Deliverable. THIS SUBSECTION SETS FORTH THE SOLE AND EXCLUSIVE REMEDY OF CUSTOMER, AND THE ENTIRE OBLIGATION AND LIABILITY THE CONTRACTOR, AS TO ANY CLAIMS OF INFRINGEMENT OR MISAPPROPRIATION OF THIRD PARTY PROPRIETARY RIGHTS IN CONNECTION WITH ANY SERVICES PROVIDED HEREUNDER. ARTICLE 11 - WARRANTIES A. General. The Contractor hereby expressly warrants the Deliverable(s) as being correct and materially compliant with the terms of this Agreement, Contractor’s official published specification and technical specifications of this Agreement and all generally accepted industry standards. This warranty encompasses correction o f defective Deliverable(s) and revision of the same, as necessary, including deficiencies found during testing, implementation, or post-implementation phases unless the corrective action requires software or system development. B. Software. Not Applicable. The Parties agree there is no Software. EXCEPT AS EXPRESSLY PROVIDED IN THE AGREEMENT. ALL SERVICES AND PRODUCTS ARE PROVIDED “AS IS.” THE CONTRACTOR DISCLAIMS ALL IMPLIED WARRANTIES. INCLUDING BUT N OT LIMITED TO ALL WARRANTIES OF MERCHANTABILITY. FITNESS FOR A PARTICULAR PURPOSE. AND NON­ INFRINGEMENT ARTICLE 12 - CONTRACTOR PERSONNEL A. Key Personnel. Contractor’s key personnel shall not be diverted from this Agreement without prior written notice to the Procuring Agency. Key personnel are those individuals considered by the Procuring Agency to be significant to the work to be performed under this Agreement. Key personnel shall be: Mark Hallamore, CenturyLink State o f New Mexico Account Manager Sue Gonzales, Account Consultant B. Personnel Changes. Replacement of any personnel shall be made with personnel of equal ability experience,and qualification. For all personnel, the Procuring Agency reserves the right to require submission o f their resumes. If the number of Contractor’s personnel assigned to the Project is reduced for any reason, Contractor shall, within ten (10) Business Days o f the reduction, replace with the same or greater number o f personnel with equal ability, experience, and qualifications, subject to Procuring Agency approval. The Procuring Agency, in its sole discretion, may approve additional time beyond the ten (10) Business Days for replacement o f personnel. The Contractor shall include status reports o f its efforts and progress in finding replacements and the effect of the absence of the personnel on the progress o f the Project. The Contractor shall also make interim arrangements to assure that the Project progress is not affected by the loss o f personnel. The Procuring Agency reserves the right to require a change in Contractor’s personnel if the assigned personnel are not, in the sole opinion o f the Procuring Agency, meeting the Procuring Agency’s expectations. The Article 12 will only apply to the Services or Deliverables as an element o f a Project or as outlined in Exhibit A. A R T I C L E 13 - S T A T U S O F C O N T R A C T O R A. Independent Contractor. The Contractor and its agents and employees are independent contractors performing professional Services for the Procuring Agency and are not employees of the State of New Mexico. The Contractor and its agents and employees shall not accrue leave, retirement, insurance, bonding, use of state vehicles, or any other benefits afforded to employees of the State of New Mexico as a result of this Agreement. The Contractor acknowledges that all sums received hereunder may be personally reportable by it for income tax purposes as self-employment or business income. B, Subject o f Proceedings. Contractor warrants that neither the Contractor nor any officer, stockholder, director or employee o f the Contractor, is presently subject to any litigation or administrative proceeding before any court or administrative body which would have an adverse effect on the Contractor’s ability to perform under this Agreement; nor, to the best knowledge o f the Contractor, is any such litigation or proceeding presently threatened against it or any o f its officers, stockholders, directors or employees. If any such proceeding is initiated or threatened during the term o f this Agreement, the Contractor shall promptly disclose such fact to the Procuring Agency. A R T IC L E 14 - C H A N G E M A N A G E M E N T A. Changes. Contractor may only make changes or revisions within the Scope of Work as defined by Article 2 and Exhibit A after receipt o f written approval by the Executive Level Representative. Such change may only be made to Tasks or Sub-Task as defined in the Exhibit A. Under no circumstance shall such change affect the: 1. 2. 3. 4. 5. B. Deliverable requirements, as outlined in Exhibit A; Due date of any Deliverable, as outlined in Exhibit A; Compensation of any Deliverable, as outlined in Exhibit A; Agreement compensation, as outlined in Article 3; or Agreement termination, as outlined in Article 5. Change Request Process, In the event that circumstances warrant a change to accomplish the Scope of Work as described above, a Change Request shall be submitted that meets the following criteria: 1. The Project Manager shall draft a written Change Request for review and approval by the Executive Level Representative to include: (a) the name of the person requesting the change; (b) a summary of the required change; (c) the start date for the change; (d) the reason and necessity for change; (e) the elements to be altered; and (f) the impact of the change. 2. The Executive Level Representative shall provide a written decision on the Change Request to the Contractor within a maximum of ten (10) Business Days of receipt of the Change Request. All decisions made by the Executive Level Representative are final. Change Requests, once approved, become a part of the Agreement and become binding as a part of the original Agreement. A R T IC L E 15 - IN D E P E N D E N T V E R IF IC A T IO N A N D V A L ID A T IO N A. If IV&V professional Services are used or required to be used for the Project associated with this Agreement, the Contractor hereby agrees to cooperate with the IV&V vendor. Such cooperation shall include, but is not limited to: 1. Providing the Project documentation; 2. 3. B. Allowing the IV&V vendor to sit in on the Project meetings; and Supplying the IV&V vendor with any other material as directed by the Project Manager. If this Agreement is for IV&V professional Services then the Contractor agrees to: 1. Submit al I reports directly to the Department of Information Technology, Project Oversight and Compliance Division (’ivandv.rcporl.s@state■nm.us,) according to the DoIT IV&V Reporting Template and Guidelines found on the DoIT website, http://w ww.doit.stale.nm.u.s/proicct templates.htmh and copy the Procuring Agency. 2. Use a report format consistent with the current DoIT IV&V Reporting Template and Guidelines found on the DoIT website, http://www.doit.state.nm.us/proiect templates.htmh A R T I C L E 16 - D E F A U L T /B R E A C H In case o f Default and/or Breach by the Contractor, for any reason whatsoever, the Procuring Agency and the State of New Mexico may procure the goods or Services from another source and hold the Contractor responsible for any resulting excess costs and/or damages to the extent that the Procuring Agency could not have reasonably mitigated the costs or damages under the circumstances and subject to Article 18 below. A R T I C L E 17 - E Q U IT A B L E R E M E D IE S Contractor acknowledges that its failure to comply with any provision of this Agreement may cause the Procuring Agency irrevocable harm and that a remedy at law for such a failure could be an inadequate remedy for the Procuring Agency, and the Contractor consents to the Procuring Agency’s obtaining from a court o f competent jurisdiction, specific performance, or injunction, or any other equitable relief in order to enforce such compliance. Procuring Agency’s rights to obtain equitable relief pursuant to this Agreement shall be in addition to, and not in lieu of, any other remedy that Procuring Agency may have under applicable law, including, but not limited to, monetary damages. A R T I C L E 18 - L I A B I L I T Y Contractor shall be liable for damages arising out of injury to persons and/or damage to real or tangible personal property at any time, in any way, if and to the extent that the injury or damage was caused by or due to the fault or negligence of the Contractor or a defect of any equipment provided or installed, provided in whole or in part by the Contractor pursuant to the Agreement. // • Tf Contractor shall not be liable for damages arising out of, or caused by, alterations made by the Procuring Agency to any equipment or its installation or for losses caused by the Procuring Agency’s fault or negligence. The remedies and limitation of liability for any claims arising between the Parties are set forth below: 1. Personal Injury; Death; Property Damage. For claims arising out of personal injury or death to a party’s employee, or damage to a party’s real or personal property, that are caused by the other party’s negligence or willful misconduct in the performance of the Agreement, each party’s liability, to the extent permitted by law, is limited to proven direct damages. 2. Other Damages. For all other claims arising out of tire Agreement, each party’s maximum liability will not exceed in the aggregate the total MRCs and usage charges paid by Customer to the Contractor under the Agreement in the three months immediately preceding the event giving rise to the claim (“Damage Cap”). A R T I C L E 19 - A S S I G N M E N T Neither party shall assign or transfer this Agreement nor any rights or obligations thereunder without the express written consent o f the other party. Such written consent shall not be unreasonably withheld. Notwithstanding the foregoing, the Contractor may assign its rights and obligations under this Agreement without the approval of the Procuring Agency to a third party in connection with a merger, consolidation, liquidation or reorganization of the Contractor or its wholly owned subsidiaries or affiliates. A R T IC L E 2 0 - S U B C O N T R A C T IN G A. General Provision. The Contractor shall not subcontract any portion of the Services or Deliverables for Session Initiation Protocol (SIP) for this Agreement without the prior written approval o f the Procuring Agency. No such subcontracting shall relieve the Contractor from its obligations and liabilities under this Agreement, nor shall any subcontracting obligate payment from the Procuring Agency. B. Responsibility for subcontractors. The Contractor must not disclose Confidential Information of the Procuring Agency or o f the State of New Mexico to a subcontractor unless and until such subcontractor has agreed in writing to protect the confidentiality of such Confidential Information in the manner required of the Contractor under this Agreement. ft. So ARTICLE 21 - RELEASE The Contractor’s Acceptance o f final payment of the amount due under this Agreement shall operate as a release of the Procuring Agency, its officers and employees, and the State of New Mexico from all liabilities, claims and obligations whatsoever arising from or under this Agreement. A R T IC L E 22 - C O N F ID E N T IA L IT Y Any Confidential Information provided to the Contractor by the Procuring Agency or, developed by the Contractor based on information provided by the Procuring Agency in the performance of this Agreement shall be kept confidential and shall not be made available to any individual or organization by the Contractor without the prior written approval o f the Procuring Agency. Upon termination o f this Agreement, Contractor shall deliver all Confidential Information in its possession to the Procuring Agency within thirty (30) Business Days o f such termination. Neither party will without the prior written consent o f the other party disclose or use (except as expressly permitted by, or required to achieve the purposes of, this Agreement) the Confidential Information of the other party. The Contractor’s consent may only be given by its Legal Department. A Party may disclose Confidential Information if required to do so by a governmental agency, by operation of law, or if necessary in any proceeding to establish rights or obligations under the Agreement, provided that the disclosing party gives the non-disclosing party reasonable prior written notice. A R T IC L E 23 - C O N F L I C T O F IN T E R E S T The Contractor warrants that it presently has no interest and shall not acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance o f Services required under the Agreement. The Contractor certifies that the requirements of the Governmental Conduct Act, Sections 10-16-1 through 10-16-18, NMSA 1978, regarding contracting with a public officer, state employee or former state employee have been followed. A R T IC L E 24 - R E C O R D S A N D A U D IT A. The Contractor shall maintain detailed time and expenditure records that indicate the date, time, nature and cost of Services rendered during this Agreement’s term and effect and retain them for a period of a minimum of three (3) years from the date of each payment for Services or Deliverables covered by this Agreement. The records shall be subject to inspection by the Procuring Agency, CIO, SPA, and DFA and the New Mexico State Auditor’s Office. The Procuring Agency shall have the right to audit billings both before and after payment. Payment for Services under this Agreement shall not foreclose the right of the Procuring Agency to recover excessive or illegal payments. ARTICLE 25 - AMENDMENT This Agreement shall not be altered, changed, or amended except by an instrument in writing executed by the Parties hereto. No amendment shall be effective or binding unless approved by all of the approval authorities. Amendments are required for the following: 1. Deliverable requirements, as outlined in Exhibit A; 2. Due Date o f any Deliverable, as outlined in Exhibit A; 3. Compensation o f any Deliverable, as outlined in Exhibit A; 4. Agreement Compensation, as outlined in Article 3; or 5. Agreement termination, as outlined in Article 5. A R T IC L E 26 - N E W M E X IC O E M P L O Y E E S H E A L T H C O V E R A G E A. If Contractor has, or grows to, six (6) or more employees who work, or who are expected to work, an average o f at least 20 hours per week over a six (6) month period during the term of the contract, Contractor certifies, by signing this agreement, to have in place, and agree to maintain for the term of the contract, health insurance for those employees and offer that health insurance to those employees if the expected annual value in the aggregate of any and all contracts between Contractor and the State exceed $250,000 dollars. B. Contractor agrees to maintain a record of the number of employees who have (a) accepted health insurance; (b) declined health insurance due to other health insurance coverage already in place; or (c) declined health insurance for other reasons. These records are subject to review and audit by a representative of the state. C. Contractor agrees to advise all employees of the availability o f State publicly financed health care coverage programs by providing each employee with, as a minimum, the following web site link to additional information: http://insurenewmexico.state.nm.us/. D. For Indefinite Quantity, Indefinite Delivery contracts (state price agreements without specific limitations on quantity and providing for an indeterminate number of orders to be placed against it); Contractor agrees these requirements shall apply the first day of the second month after the Contractor reports combined sales (from state and, if applicable, from local public bodies if from a state price agreement) of $250,000. /(■3l A R T IC L E 27 - N E W M E X IC O E M P L O Y E E S P A Y E Q U IT Y R E P O R T IN G A. The Contractor agrees if it has ten (10) or more New Mexico employees OR eight (8) or more employees in the same job classification, at any time during the term of this Agreement, to complete and submit the PEI 0-249 form on the annual anniversary of the initial report submittal for Agreements up to one (1) year in duration. If Contractor has (250) or more employees Contractor must complete and submit the PE250 form on the annual anniversary of the initial report submittal for Agreements up to one (1) year in duration. For Agreements that extend beyond one (1) calendar year, or are extended beyond one (1) calendar year, Contractor also agrees to complete and submit the PE10249 or PE250 form, whichever is applicable, within thirty (30) days of the annual Agreements anniversary date of the initial submittal date or, if more than 180 days has elapsed since submittal of the last report, at the completion of the Agreements, whichever comes first. Should Contractor not meet the size requirement for reporting as of the effective date o f this Agreement but subsequently grows such that they meet or exceed the size requirement for reporting, Contractor agrees to provide the required report within ninety (90 days) o f meeting or exceeding the size requirement. That submittal date shall serve as the basis for submittals required thereafter. B. Contractor also agrees to levy this requirement on any subcontractor(s) performing more than ten percent (10%) of the dollar value o f this Agreement if said subcontractor(s) meets, or grows to meet, the stated employee size thresholds during the term o f this Agreement. Contractor further agrees that, should one or more subcontractor not meet the size requirement for reporting as of the effective date o f this Agreement but subsequently grows such that they meet or exceed the size requirement for reporting, Contractor will submit the required report, for each such subcontractor, within ninety (90) calendar days of that subcontractor meeting or exceeding the size requirement. Subsequent report submittals, on behalf o f each such subcontractor, shall be due on the annual anniversary of the initial report submittal. Contractor shall submit the required form(s) to the State Purchasing Division of the General Services Department, and other departments as m aybe determined, on behalf o f the applicable subcontractor(s) in accordance with the schedule contained in this paragraph. Contractor acknowledges that this subcontractor requirement applies even though Contractor itself may not meet the size requirement for reporting and be required to report itself. C. Notwithstanding the foregoing, if this Agreement was procured pursuant to a solicitation, and if Contractor has already submitted the required report accompanying their response to such solicitation, the report does not need to be re-submitted with this Agreement. A R T IC L E 28 - M E R G E R , S C O P E . O R D E R O F P R E C E D E N C E A, Severable. The provisions o f this Agreement are severable, and if for any reason, a clause, sentence or paragraph of this Agreement is determined to be invalid by a court or agency or commission having jurisdiction over the subject matter hereof, such invalidity shall not affect other provisions o f this Agreement, which can be given effect without the invalid provision. B. Merger/Scooe/Order. This Agreement incorporates any and all agreements, covenants and understandings between the Parties concerning the subject matter hereof, and all such agreements, covenants and understanding have been merged into this Agreement. No prior agreement or understanding, verbal or otherwise, o f the Parties or their agents or assignees shall be valid or enforceable unless embodied in this Agreement. If a conflict exists among provisions within the Agreement, the following order o f precedence will apply in descending order o f control: (1) This Agreement, (2) the appendices to this Agreement, (3) and Exhibit B as attached, (4) the Procuring Agency’s approved purchase order (PO). If Services or Deliverables are provided pursuant to a Tariff, RSS, or ISS as described in the applicable Service Exhibit B, the order o f precedence will apply in the following descending order o f control: (1) Tariff, (2) this Agreement, (3) the appendices to this Agreement, (4) Exhibit B as it applies to RSS and ISS, (5) the Procuring Agency’s approved purchase order (PO). A R T IC L E 29 - N O T IC E S All deliveries, notices, requests, demands or other communications provided for or required by this Agreement shall be in writing and shall be deemed to have been given when sent by registered or certified mail (return receipt requested), when sent by overnight carrier, or upon telephone confirmation by Contractor to the sender o f receipt o f a facsimile communication that is followed by a mailed hard copy from the sender. Notices shall be addressed as follows: For PROCURING AGENCY To SPA: State Purchasing Agent Purchasing Division Joseph M. Montoya State Building, Room 2016 1100 St. Francis Drive Phone: (505)827-0472 With a copy to DoIT: Phil Bachicha, Procurement Specialist Contracts and Procurement Bureau Department of Information Technology Simms Building 715 Alta Vista Santa Fe,N M 87502 Phone: (505)476-3469 For CONTRACTOR Qwest Communications Company, LLC d/b/a CenturyLink QCC Attention Legal Department 1801 California St. #900 Denver, CO Fax: (888)778-0054 Any change to the Notice individual or the address, shall be effective only in writing, A R T IC L E 30 - G E N E R A L P R O V IS IO N S A. B. C. The Contractor agrees to abide by all federal and state laws and rules and regulations, and executive orders o f the Governor o f the State o f New Mexico, including but not limited to: 1. Civil and Criminal Penalties, The Procurement Code, Sections 13-1 -28 through 13-1-199 NMSA 1978, imposes civil and criminal penalties for its violation. In addition, the New Mexico criminal statutes impose felony penalties for illegal bribes, gratuities and kickbacks. 2. Equal Opportunity Compliance. The Contractor agrees to abide by all federal and state laws and rules and regulations, and executive orders of the Governor of the State o f New Mexico, pertaining to equal employment opportunity. In accordance with all such laws of the State o f New Mexico, the Contractor agrees to assure that no person in the United States shall, on the grounds of race, religion, color, national origin, ancestry, sex, age, physical or mental handicap, serious medical condition, spousal affiliation, sexual orientation or gender identity, be excluded from employment with or participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity performed under this Agreement. If Contractor is found not to be in compliance with these requirements during the life of this Agreement, Contractor agrees to take appropriate steps to correct these deficiencies. 3. Workers Compensation. The Contractor agrees to comply with state laws and rules applicable to workers compensation benefits for its employees. If the Contractor fails to comply with the Workers Compensation Act and applicable rules when required to do so, this Agreement may be terminated by the Procuring Agency. Applicable Law. The laws o f the State ofN ew Mexico shall govern this Agreement Venue shall be proper only in a New Mexico court of competent jurisdiction in accordance with Section 38-3-1 (G)NM SA 1978. By execution of this Agreement, Contractor acknowledges and agrees to the jurisdiction of the courts o f the State ofNew Mexico over any and all such lawsuits arising under or out of any term of this Agreement. Waiver, A party's failure to require strict performance of any provision of this Agreement shall not waive or diminish that party's right thereafter to demand strict compliance with that or any other provision. No waiver by a party of any of its rights tt.S J D. under this Agreement shall be effective unless expressed and in writing, and no effective waiver by a party of any of its rights shall be effective to waive any other rights. Headings. Any and all headings herein are inserted only for convenience and ease of reference and are not to be considered in the construction or interpretation of any provision o f this Agreement. Numbered or lettered provisions, sections and subsections contained herein, refer only to provisions, sections and subsections of this Agreement unless otherwise expressly stated. A R T I C L E 31 - S U R V I V A L The Articles entitled or regarding Intellectual Property, Intellectual Property Ownership, Confidentiality, limitations of liability, payment, dispute resolution, Warranties and all other terms of this Agreement that should by their nature survive the termination of the Agreement shall survive the expiration or termination of this Agreement. Software License and Software Escrow agreements entered into in conjunction with this Agreement shall survive the expiration or termination of this Agreement. A R T IC L E 32 - T IM E Calculation o f Time. Any time period herein calculated by reference to "days" means calendar days, unless Business Days are used; provided, however, that if the last day for a given act falls on a Saturday, Sunday, or a holiday as observed by the State ofN ew Mexico, the day for such act shall be the first day following that is not a Saturday, Sunday, or such observed holiday. A R T IC L E 33 - F O R C E M A JE U R E Neither party shall be liable in damages or have any right to terminate this Agreement for any delay or Default in performing hereunder if such delay or Default is caused by conditions beyond its control including, but not limited to Acts o f God, Government restrictions (including the denial or cancellation o f any export or other necessary license), wars, insurrections and/or any other cause beyond the reasonable control of the party whose performance is affected. A R T IC L E 34 - A D D IT IO N A L T E R M S A N D C O N D IT IO N S The.Customer will not pay for the Services or Deliverables with funds obtained through the American Recovery and Reinvestment Act or other similar stimulus grants or loans that would obligate the Contractor to provide certain information or perform certain functions unless each o f those obligations are explicitly identified and agreed to by the parties in the Agreement or in an amendment to the Agreement. ARRA. HIPAA. The Contractor does not require or intend to access Customer data in its performance hereunder, including but not limited to any confidential health related information of Customer’s /(■ M , clients, which may include group health plans, that constitutes Protected Health Information (“PHI”), as defined in 45 C.F.R. §160.103 under the Health Insurance Portability and Accountability Act of 1996 (“HIPAA Rules”). Any exposure to PHI will be random, infrequent and incidental to the Contractor’s provision o f Service and is not meant for the purpose of accessing, managing the PHI or creating or manipulating the PHI. Such exposure is allowable under 45 CFR 164.502(a)(l)(iii). As such, if Customer is a Covered Entity or Health Care Provider under the HIPAA Rules or supports the health care industry, the Contractor and Customer agree that the Contractor is not a “Business Associate” or “Covered Entity” under the HIPAA Rules for the purposes o f the Agreement. wnailjvn 13 WMAckley,? 'tate CIO and Cabinet Secretaiy Department of lnfo1mation Tee gy 1r. WCmefr-I mu Ewing] By: Date. 5/56/13 Richard Ferna dez, irectoro Offer Management Qwest Communications Company, LLC d/b/a CenturyLink QCC Approved for legal suf?ciency: . ~1'ia R. Sa11c1cz Department of Information Technology, General Counsel By: Date: Charles Martinez Department of Information Technology Chief Financial Of?cer The records of the Taxation and Revenue Department re?ect that the Contractor 18 registered with the Taxation and Revenue Department of the State of New Mexico to pay gross receipts and com pensat1n taxes: CRS ID Number: 03?167543?00-3 r: 1,1113, axation eNenu epartment pploved as to information techn Ilogy contractual specifications and compliance with the Departm 1t of?nfo 111 'ion c 11 Ilogy Act, Chapter 9, Article 27 NMSA 1978 and Executive Orders rela1' 11' nology issued by the Governor of the State of New Mexico. a 1 We inner? Dairyl M. Acldey, State CIO and Cabinet Secre?tary Department of Information Technology .-F- 1? #7 :1 4.- . By: Date: 7/3 .r anrence O. Maxwell Purchasing Agent for the State of New Mexico This Agreemen/t/Jias been approved by the State Purchasing Agent: EXHIBIT A - SCOPE OF WORK 1. Exhibit A includes Services and Price Lists for Session Initiation Protocol (SIP) Trunking and Related Services, coverage availability for SIP services, and Service Level Agreement and service limitations. A. B. C. D. II. APPENDIX C-l —SIP Trunk Services Price List APPENDIX C-2 -Optional SIP Trunk Services Price List APPENDIX C-3 —Optional Related Services Price List APPENDIX C-4 —Enhanced Optional Service Levels: NOT APPLICABLE E. APPENDIX C-5 —Enhanced Optional Features Price List F. APPENDIX C-6 - Additional Emergency Services Price List G. APPENDIX C-7 - Enhanced Business Continuity Features Price List H. APPENDIX C-8 -SIP Training Course(s) Price List I. APPENDIX G - SIP Trunking Coverage Area Availability J. APPENDIX FI - Service Level Agreement EXHIBIT B - SIP Trunk Service Exhibit and Service Limitations APPENDIX C -l - SIP TRUNK SERVICES PRICE LIST « mm. Month-to-Month ... Allow ance of Outbound M inutes per trunk 1 SIP Trunk Setup (per Trunk) $1,000.00 Unlimited 2 SIP T ru n k $40.00* Unlimited $15.00* $ 10.00* $ 10.00* M onthly {per Trunk) *CenturyLink will offer the State of New Mexico pricing based on tiered volume structures as defined below: Number of trunks Mo to Mo 1 Year 3 Year 5 Year install Oto 100 Trunks $40.00 $15.00 $10.00 $10.00 $0.00 101 to 300 Trunks $35.00 $12.00 $9.00 $9.00 $0.00 301 to 750 Trunks $33.00 $10.00 $8.00 $8.00 $0.00 751+Trunks $33.00 ICB ICB ICB $0.00 / / . *k> APPENDIX C-2 - OPTIONAL SIP TRUNK SERVICES PRICE LIST H U B S Month-lo-Month Year 3 SIP Trunk Pricing with Bundle Transport Options Outbound Toll per Minutes 5,0100 per min 5.0100 per min $.0100 per min $.0100 per min 5.0100 per min 5.0100 per min $.0100 per min $.0100 per min $0,014* for conference calls with Passcode 50.014* for conference calls with Passcode $0,014* for conference calls with Passcode 50,014* for conference $0,018* for reservationless conference calls $0,018* for •eservatlonless conference calls $0,018* for reservationless conference calls Conference Bridging Services Conference Bridging Services Video Bridging Services Setup ‘ Conference calling services are available to calls originated from both SIP Trunks as well as all other TDM based phone services, sails with Passcode $0,018* for reservatkiniess in feren ce calls APPENDIX C-3 - OPTIONAL RELATED SERVICES PRICE LIST Transport Options for SIP Trunk SIP Trunk is available with IQ Internet, Private (MPLS Port) and/or Enhanced ports (Enhanced Port with SIG only) as well as a variety of networking access methods. Regarding ELA (Ethernet Local Access) with QoS, all ELA QoS provisioning limitations that apply generally to CenturyLink IQ™Networking also apply to SIP Trunk. For a standard order process, the SIPTrunk customer must use an IQ Networking Connection Type of Native ELA Premier or EoS ELA. Native ELA Premier is not offered for Internet Ports, VPLS VPNs are not supported for SIP Trunk, ATM Dedicated, ATM Partner, Frame Relay Dedicated and Frame Relay Partner are not SIP Trunk supported access types. internet Port with SIP Trunk - Supported as Described The customer's Internet Port is not part of the SIP Trunk service, but CenturyLink IQ™Networking access Is a requirement of the product. The Internet Port access provides transport from customer premises to the CenturyLink VoIP infrastructure and to the Internet as a whole. Voice packets are prioritized over data on the converged dedicated Internet access transport connection. OnlyTl (PPP, HDLC) and up to 8xTl (MLPPP)are available for Internet Port to support SIP Trunk. These are the only bandwidths that have QoS support. That QoS support Is provided via Queuing Method E. Private Port with SIP Trunk - Supported as Described ' The customer's Private Port (or MPLS Port) Is not part of the SIPTrunk service, but CenturyLink IQ™ Networking access is a requirement of the product, The Private MPLS-VPN IP access provides transport from customer premises to the CenturyLink VoIP infrastructure and to the rest of that customer's MPLS-VPN. Voice packets are prioritized over data on the converged Private Port access transport connection. VPLS Private Port transport Is NOT supported as access to CenturyLink VoIP services. SIP Trunk is supported on Private Ports using the Dedicated IP Connection Type of the following bandwidths and encapsulation options: DS1 (HDLC, PPP, FR, ATM), NxDSl (MI.PPP, MFR), DS3 (PPP, HDLC, FR, ATM), OC3 (PPP, ATM, HDLC) and OC12 (PPP, HDLC). Type of the following bandwidths and encapsulation options: DS1 (HDLC, PPP, FR, ATM), NxDSl (MLPPP, MFR), D$3 (PPP, HDLC, FR, ATM), 0C3 (PPP, ATM, HDLC) and OC12 (PPP, HDLC). Enhanced Pori with SIP Trunk - Supported as Described The customer's Enhanced Port is not part of the SIPTrunk service, but CenturyLink™ Networking access is a requirement of the product The Enhanced Port MPLSVPN IP access provides transport from customer premises to the CenturyLink VoIP infrastructure, The SIP Trunk service must use the Private access side of the Enhanced Port service. Voice packets are prioritized over data on the converged Enhanced Port access transport connection, The Enhanced Port also provides connectivity, to the rest of the customer's MPLS VPN and connectivity to the Internet. Only Enhanced Port with SIG is supported for SIPTrunk transport. SIP Trunk is supported on Enhanced Ports with SIG using the Dedicated IP Connection Type of the following bandwidths: DS1 (HDLC, PPP, FR, ATM), NxDSl (MLPPP, MFR), DS3 (PPP, HDLC, FR, ATM), OG (PPP, ATM, HDLC) and 0C12 (PPP, HDLC). CENTURYLINK IQ NETWORK PORT PRICING The State of Mew Mexico has a vast existing IQ Private Port and IQ Public Port Network from CenturyLink. We are proposing to reduce our rate structure for these network elements as follows: p p llp i f ”" *HjHHHH dN h i g ^ m 1V:iatl_____________„ H lÉ ? ' "T7‘l ; \j m ’J ? r í v a t ¿ ; i M M T g p » 0 : .,. U n te Q M i,,.. h b m 7-M br: ’ m . M b p s ■",X' ■1-gívMyfSO:OOrr A ¡¡pfg¡ ’ ■■■ ■■■ . r&^ferVírr7&r.¿ -rr‘"r'í‘^' ^ -•- --■- ^ - '•‘t'OTv-í í”{¿ií\P&}1’tíeS^f-V;.J•.* . ?M > vi ¡¡¡¡p S l m i » l i l 1 S Ü Í S ; mmm vva ........ ...... v._. á s g l j l ¡ ¡ ¡ ■ M S I m K h if lS P M i S p iíllli ...__ „'■■i ^"iribr.ect -■É m m m m M m T P 'r.^rt n in u n iid jim k-lfarfccl •. } , i n o .n o í i lo r tx i 1 W .i ■ i^jy _ ■f , ';'" - ,,t’ mm m Í ¡ mUm ¿ fa s í í U é iié « p M f l i S í j M bps b t b o r t 'o l - ■ ¡ ■ ■ ■ ■ i Ijim H R R I P lv á t § 0 ; p i ^ W W & m L , ____ m I s ta g ra M ra w ™ S ¡ M bps ' ■ i® mMm- I hK /ifSO t . J J ftp re d _ _ bi - aa sstl I r>uv«4ifi _ ; Tierpd . : . ■■■- •■- I MI) L EibSK>*‘t . ., Mbps l-USt ' : ; lo o ^jSthxo m :o t \iXr\ -;;;j^ ■ ' . .■-. . a ^ ^ 9 P¿00 , .Q ; ■ -._ íü u.oo VVL,;L^L% ;. L ^ '' .. . . - ?:35 H.255. 46? v- .559? Wm?? .I --.--..- n. 3 E5 ?lly?: . . all. ..LH 1 . 1.. I .- ?rm- 5 - .- hi.- 1- . 1511 I, ?Ill?AL?i?lu_ '11. ?gain-33% .1. r1 5 1 flail}?! ?v?uh-?qnvqrat" . .. . .- {aim-t; '5'3 I . .. . "hr gulf-f. ., {:cum?u . N. 9% M i S i & É l i \\l $ : o :oo ; í ■*'^ l i g s » W í f v ^ ............ .. - s’ $ 0 .0 0 " !v f f f f # Í ^ Í Í .,.- i P p M t ' S Ik í , 1 " p - i o d - M ill " ü ip % IP iU lii I S iSiSfc; iü iS i lste" Internet; ^ ' rtZ^n^rrr.'-K^ryyr. i W M E li., ' ' ' ! - B » ^ w ¡ « 6 .. i 1’ w m ssm Íjin?£Ü I t t*-^¡£5 o lrr^jí¡l l p & íf • " •‘• •isñ r i n r#ií . n n c vr:\ i!. *S® i‘ ( « * , = ; s. > 4 ; - i o o a $ M é É i § É i $ É É i H ^ th é m é u . -i M ¿ ? j : » ó c > " ■ ^ ¿ f e i ó ' • • ' í : , ; $ ' 0;oo i - „ ^ \.;& ^ L $ '§ .W . üo »."7**í: *^í1 v* f'i S I É lM o i In addition to our port pricing above, local loops will vary by city and bandwidth types. For any T1 local loop (or NxTl), CenturyLink is offering the State of New Mexico $200 PER T1 wherever CenturyLink SIP services are available here in the State of New Mexico. The State also has the option of provisioning SIP over the existing CenturyLink network in place today. Additional SIP services from CenturyLink include: BILLING ELEMENT til Telephone N u m b er Fee (per TN) $.15 p er telep h o n e n u m b e r p e r m o n th Install f e e is w aived i f m o vin g from existing CenturyLink service Local telephone numbers are the same as DIDnumbers on a PRI 02 R e m o te Direct inw ard Dial (Per R em o te DID) $.80 p e r telephone n u m b e r p e r m o n th p lu s long distance $5.00 Install fe e p er n u m b er A remote DID Is a telephone number homed to a rate center where the customer does not have a physical presence. The telephone number would normally be used In a customer support environment as an alternative to 8xx, foreign exchange or remote call forward numbers. Remote DIDservice is a metered service and supports only Inbound calls. Outbound ca lling, including emergency services (911) is not supported ti3 SIP REFER (p er usage Session) $2 ,0 0 p e r session per m onth $0.00 Install fe e SIP Refer can be thought of as the SIP protocol version of TDM's "Transfer and Release" (although It really operates more like 2BCT In the network). It allows a SIP node to drop out of a call rather than using multiple trunks or sessions for hair pinning, SIP Refer is utilized after a call has been Initially answered. Arefer changes the destination signaling point and media point, CenturyLink SIP Refer Support white paper can be found at httD://nt5.owest.net/volce/SIPT%20support%?-t)detalis%20for%20SlP%20REFER%2QVl-l%2012-2(l-ll.?lp * * ■ * SIP Refer, by standard, can transfer and release to another IP address or another TN. CenturyLink only supports transferto another TN atthistime. There are two types of SIP Refer, Consultative and Blind. Consultative SIP Refer Is supported on the local hased trunk group and usage based trunk group combined. Blind transfer Is only supported on the usaged based trunk group. Because of the above stated restriction and other variables, it is recommended that all customers who want to use SIP Refer, test this feature prior to service turn up to guarantee proper functionality. #4 Business While Pages Listing $1.95 monthly per listing Listing of telephone numbers in the local white pages directory #5 Dedicated VoIP Interconnect (covers all locations) $2,500 mnthij/ per trunk group location $5,000 Installfee A dedicated VoIP Interconnect (DVI} Is for those customers who may have higher than normal security requirements. The standard MPLS provisioning model for the SIP Trunk service is for all customers to share the same VLAN on the Sonus BBS, This shared VLAN Is why It Is required that all customers use unique IP Address space when connection across the MPLS service, Some customers do not like sharing any part of their service with other customers, if, for example they have HIPPA requirements or are a financial institution with strong security guidelines. CenturyLink will provide a VLAN dedicated solely to their use for those customers who purchase a DVI, It Is recommended that this solution only be offered to customers who express strong objections to standard configuration. 116 VoIP Switch Diversity $150.00 m onthly per trunk group location $0.00 Install Switch Diversity provides the customer access to separate, physically diverse SBC in the CenturyLink network. IP Diversity is available to customers who have purchased multiple CenturyLink IQ"' Networking ports of the same service type In conjunction with their Internal network to provide backup connectivity for their $IP Trunk service, In addition to the charges for the redundant CenturyLink IQ™ Networking ports (purchased separately), there Is an IP Diversity setup NRC charge listed above that Is associated with this feature. ft7 Q o S -Quality of Service . $1OOper service Instance monthly $0.00 Install Fee SIP Trunk requires QoS and voice priority over any CenturyLink networking access/port that this service can occupy. Specifically, for Private Port and Enhanced Port with SIG, queuing method C Is recommended, end where Queuing Method Cis not suitable for the customer, Queuing Method B Is allowed. Queuing Methods A and D are not permitted for use with SIP Trunk, for Internet Port, Queuing Method E is the only available choice. For QoS descriptions for the different port types, go to: « • Internet Port: Iutn://Ebmu.awest.net/bmgq/cgl fwd/adbullder/P0080444 Private and Enhanced Ports: http://ebma.owest.net/bmeo/cei fwd/adbuilder/P0090881 ItS 800 Service Activation $0.00 monthly $0-00 Install Toll free service activation on SIP will be waived per Instance with three year term pricing APPENDIX C -4- ENHANCED OPTIONAL SERVICE LEVELS PRICE LIST All o f the below services described In the RFP can be made available to the State of New Mexico but are ICB based pricing: • Busy Bing No Answer (BRNA): BRNA can ca u se calls to a TFN to route to a different destination if the trunk group on which BRNA is set up is either busy or rings with no answer. There can be up fa four defined destinations for each 800 number. • Day of Year, Day of Week, Time of Day Routing; Allows an 8 00 customer to define the destination of the 8XX call depending on whon the call originates. • Direct Termination Overflow (DTO): DTO can support terminating calls to three separate trunk groups In three separate switches (or a single switch), with a final overflow to a 10-diglt ANI. DTO supports overflow in the event of a busy condition only. • SuperTrunks and SupeiTrunk Overflow: SIP Trunk SuperTrunks can contain up to 10 trunk groups and these trunk groups can be attached to any SBC within the SIP Trunk platform. SuperTrunks that carry 8XX calls must b e ordered as part of the 8XX service. SuperTrunks that will handle calls to TN and RDIDs can b e set up In the SIP Trunk Section of the Control Center. • In-Switch Overflow Trunk: In-Switch Overflow Trunk allows traffic to route to multiple trunk groups that are located In the sam e switch. An In-Switch Overllow Trunk Is similar to a SuperTrunk; however, traffic overflows from trunk group to trunk group, after the lower order trunk groups are at capacity. A trunk group . can overflow to a s many a s 1 0 other trunk groups a s defined by the route plan. * Geographic Routing: Based on where the caller is dialing from, Geo Routing automatically routes calls to the appropriate trunk group, as pre-defined by the customer. ® P e r c e n t A llo c a tio n : Percent Allocation allows a customer to have calls routed to different trunk groups based on pre­ defined percentages. • • Route Advance Accelerator (RAA): RAA is a Sonus NB3 feature and is used to determine If a customer SIP server is reachable, providing the ability to "blacklist” a server IP address if it is found to be unreachable, as well as the ability to remove the server from the blacklisted state. RAA is off by default but can be activated on a per trunk group basis (via NBS SIP Service Table). It allows for a quick failover to a second route in the event the first choice is out of service. Without RAA, It takes ~ 7.5 seconds . for each call to overflow to the noxt route choice. With RAA, once an address is blacklisted, it takes each call less than ono second. A P P E N D I X C - 5 —E N H A N C E D O P T I O N A L F E A T U R E S P R I C E L I S T O p tio n a l f e a t u r e s a n d p ricin g a r e d e s c r ib e d in A p p e n d ix C-3 & C -4 A P P E N D IX C - 6 - A D D IT IO N A L E M E R G E N C Y S E R V IC E S P R IC E L IS T Emergency service pricing, like 911 are included in the price of our SIP Trunks. Other Emergency services are described in Appendix C-3 andC-4, A P P E N D I X C - 7 —E N H A N C E D B U S I N E S S C O N T I N U I T Y F E A T U R E S P R I C E L I S T Enhanced Business Continuity features and pricing are described in Appendix C-3 and G4. APPENDIX SIP TRAINING PRICE LIST . :Spvciul- . ?(W?ehigmnj?r 5-191? . $135!, - 7 . ebinar, Unsite or Benturylink Product None TED [80 NONE Courses utherare available Managers andfor Ix If APPENDIX G - SIP TRUNKING COVERAGE AREA AVAILABILITY ■Mbjisíc 91l É 1 2 T 1 3 4 Abiquiut NM 4 :" Alamogordo. NM yI Albminaiiiifl, NM 4 Alto, NM. S Angel Pice, NM 6 Anluins, NM 7 Antelope Ridge, NM B ' 4 ~T 4 9 Anton Oilco, NM 10 Arch, NM 11 4 ...... 7 4 4 4 12 4 13 i 4 4 4 T ~ ir 4 4 v. 14 15 16 17 Alttotla, NM Aztec, NM Bayard. NM Helen, NM Bollvlew, NM Bernalillo, NM Bingham, NM 18 Bloomfield, NM 19 Canillan, NM 20 Camion AFB. NM 21 C¡moncho, NM 22 Cajiidtn. NM 23 Carlsbad, NM 24 Carlsbad Caverns, NM 25 Carrizozo, NM 26 Causey, NM 27 Chama, NM 28 4 4 4 29 Chaparral, NM Cliiinayo. NM 30 Cimaricai, NM 31 Clayton, NM 32 Cliff, NM 33 34 Anihony, NM Cloud croft, NM " ....... 35 V ' 4 4 Clovis, NM Columbus. NM 36 Conchas Diun, NM I //, ¿1 Corono. NM Cottonwood, NM Crown Point, NM Cuba, NM D a ta NM Dell City, NM D e m in k , N M P ea Moines, NM Dexter, NM Dixon, NM Dora, NM Dulce, NM Bl Rito. NM El Voile. NM ElidnTNM Eananoln, NM Ixstamnn, NM Eimicc, NM F a rm in g to n , N M Punco L uka NM Hoye], NM Fort Sumner, NM Gnllinn, NM C.inJ-kin, NM Gl on wood, NM Grady, NM G iants, NM Guadaltwo Punk, NM Ilagp4‘jnim, NM Hatch, N M I-Msboro. NM !U.:l'l'rv, NM Hondo, NM Hopo, NM House, NM J»l> NM JeniBz Spangu, NM Kmton, NM in Men;i, NM Lacuna Aconw, NM hikuwood, NM Las Ciuoes, NM //. ¿ 7 79 4 4 4 80 Llndrltli, NM 81 Loco Hills, NM 82 Logan, NM 83 Lordsburp, NM 84 V 4 85 •>/ V- r~ 86 Luna, NM 90 Lybrook, NM 91 M&fíjtüil&im, NM 92 Mariamar, NM 93 Maxwell. NM 94 Mnylilll, NM 95 Mdrose, NM 96 Mcacalcro, NM 97 Milncsand, NM 08 Mimbres, NM 99 ~T~ 100 101 T “ Nnre. Visu, NM NnscWui, NM 105 Navajo, NM 106 Newcomb, NM 107 0 o CaliaiMo, NM 108 Pecos, NM 109 4 no 4 Pena Blanca, NM 4 4 ni Peñasco, NM Pino Hill, NM 112 Playas, NM 113 Pleasant H ill, NM 114 Pojoaque, NM 115 Portales, NM U6 Pueblo Pintado, NM 117 Queen, NM 118 122 Moriarty, NM Mountainnir, NM 104 121 Mora, NM M osquero, NM 4 103 120 Lor Lunas, NM Lovinglon, NM 89 119 Los Alamos, NM Loving, NM 88 102 Las Vngns, NM Quemado, NM ~ T ~ 4, Quanta, NM Ragland, NM Ramidi, NM Ranclwale, NM n.s% Raton, KM Red River, MM Reserve, NM Rodeo, N M Roswell. NM Roy, MM Ruidoso, NM Ruidoso Downs, NM Sao Jon, NM Sen isidro,NM LSaaostee, NM Santa Fe* NM Santa Roá a, NM Santa Toms a, NM Shiprock, NM Silver City, NM Socorro, NM South Clovis* NM Springer, NM Taos, NM Tatum, NM Toxico. NM Tierra Amarilla. NM H ieras, NM lim beron, NM T o a d ie s , NM TohatcnL, NM 1 orreoru NM Trementina. .NM 152 Truchas 153 Truth or Consequenoes, NM 54 Tí?e Bonito, NM T uoum cun, N M 156 Tul oros a, NM T w in L a k e s, N M 158 Vallecitos. NM 159 Variderwap.cn, N M L60 Vaughn, NM LbL Velarde, N M Vwdeih NM Wagon Mound. NM W e b e r C ity , N M W hile Lakes, N M 166 White Roch NM 167 White Sands1 NM, NM 168 Zuni. NM 4,0 APPENDIX STANDARD LEVEL AGREEMENT Mid QW EST COM MUNICATIONS COMPANY, LLC, d/b/a CENTURYLINK QCC (“CENTURYLINK”) SIP TRUNK RETAIL SERVICE LEVEL AGREEM ENT (not applicable to services offered under CenturyLink Wholesale and Enhanced Services Agreements) This SLA applies to SIP Trunk Service ordered by CenturyLInk's customer ("Customer") pursuant to a signed agreement ("Agreement") with Qwest Communications Company, LLC, d/b/a CenturyLink QCC ("CenturyLink"). Capitalized terms not defined n this SLA are defined n the Agreement. This SLA will not apply to Approved Connectivity. The CenturyLink IQ™ Networking SLA applies to such Approved Connectivity, and is available for review at htto://awest.centurylink.com/leaaiysla.html. This SLA is effective as of the first day of the second month after initial installation of Service. VOICE AVAILABILITY: Voice Availability is based on "Voice Platform Downtime," which exists when a particular SIP Trunk Flat Rate Session is unable to transmit Inbound and/or outbound voice calls, Such failure Is recorded In the CenturyLink IP Network trouble ticket system. Voice Platform Downtime Is measured from the time a master trouble ticket Is opened In the CenturyLink trouble management system to the time the Affected Service Is able to transmit inbound and outbound voice calls. In order to qualify for credits, the outage must be deemed a "Major Service Outage," which is defined as a service outage network condition causing major service disruption to the customer base relative to a network segment for which a master trouble ticket is opened, and which impacts more than one customer. This Voice Availability SLA does not apply to call quality. Subject to the foregoing limitations, each time Voice Availability is less than CenturyLInk's 100% availability goal, Customer qualifies for a percentage credit as shown in the table below, prorated from the Session and TN MRC of the Affected Service, up to the máximums indicated in the Remedies section Goal 100% Voice Platform Downtime 10 to 30 minutes 31 to 60 minutes 61 to 120 minutes 121 to 240 minutes Over 241 minutes Amount of Monthly Bill Credit 1 day's credit 2 days' credit 4 days' credit 6 days' credit 10 days' credit NETWORK AVAILABILITY Network Availability Is based on "Network Downtime," which exists when an Individual customer's SIP Trunk Flat Rate Sessions are unable to transmit inbound and/or outbound voice calls as a result of a CenturyLink network event. Such failure Is recorded In the CenturyLink VoIP Network trouble ticket system. Network Downtime Is measured from the time the trouble ticket is opened in the CenturyLink trouble management system to the lime the affected SIP Trunk Flat Rate Sessions service is again able to transmit inbound and/or outbound calls. This SLA does not cover anything on the Customer's side of the external demarcation point (e.g. Customer's data network, CPE (including CPE purchased, leased or rented from CenturyLink), extended wiring, and inside wiring) or other equipment at the Customer address. Goal 100% Remedy Each cumulative hour of Network Availability less than 100% qualifies Customer for one day's charges pro-rated from the Session and TN MRCs of the Affected Service, Remedies. To be eligible for service credits under this SLA, Customer must be In good standing with CenturyLink and current in its obligations. To receive service credits, Customer must contact either their CenturyLink account representative or CenturyLink Billing Inquiries at 1-800-860-1020 to request the credit and open a trouble ticket. Such requests must be made within thirty (30) calendar days from the date when the relevant SLA goal was not met. A credit will be applied only to the month In which the event giving rise to the credit occurred. "Affected Service" refers to the particular SIP Trunk Flat Rate Session that fails to meet the Voice Availability or Network Availability goal. Tie total in the aggregate of all credits issued in one month will not exceed the equivalent of 100% of the relevant MRCs for the Affected Service. The maximum credits given-for a specific outage will not exceed ten (10) days' credit. Service Credit Exceptions. Service credits will not be issued where the SLA is not met as a result of: (a) the acts or omissions of Customer, its employees, contractors or agents or its End Users; (b) the failure or malfunction of equipment, applications or systems not owned or controlled by CenturyLink; (c) Force Majeure Events; (d) scheduled service maintenance, alteration or implementation; (e) the unavailability of required Customer personnel, including as a result of failure to provide CenturyLink with accurate, current contact information; (f) Customer's failure to use Approved Connectivity, and Customer's failure to provide CenturyLink with remote and/or on-site access to CPE upon request, including router logon IDs and passwords; (g) Customer's failure to release the Service for testing or repair and continuing to use the Service on an impaired basis; (h) CenturyLink's termination of Service for Cause or Customer's use of Service in an unauthorized or unlawful manner; or (i) improper or inaccurate network specifications provided by Customer. Maintenance Window Definition. Maintenance will be classified as one of the following two types: Normal Maintenance. "Normal Maintenance" refers to upgrades of hardware or software or upgrades to increase capacity. Normal Maintenance may temporarily degrade the quality of the Service, including possible outages. Such effects related to Normal Maintenance will not give rise to service credits under this SLA. Normal Maintenance will be undertaken between the hours of 11:00 PM and 6:00 AM Local Time. For purposes of this SLA, "Local Time" means the local time in the time zone In which an Affected Service is located. Urgent Maintenance. "Urgent Maintenance" refers to efforts to correct network conditions that are likely to cause a material Service outage and that require immediate action. Urgent Maintenance may degrade the quality of the Service, including possible outages. Such effects related to Urgent Maintenance will entitle Customer to service credits as set forth in this SLA. CenturyLink may undertake Urgent Maintenance at any time deemed necessary and will provide notice of Urgent Maintenance to Customer as soon as is commercially practicable under the circumstances. Customer Termination Rights. Customer may terminate the Affected Services without Incurring a Cancellation Charge in the event Customer becomes entitled to terminate the Approved Connectivity over which Service is provided due to CenturyLink's failure to meet the CenturyLink IQ Networking SLA. Such termination must be conducted by written notice to the CenturyLink Dublin Service Center, with a courtesy copy to the attention of CenturyLink's General Counsel, and within five business days following the end of the relevant calendar month. Such termination will be effective 45 days after receipt of written notice by CenturyLink. The provisions of this SLA state Customer's sole and exclusive remedies for Service interruptions or Service deficiencies of any kind whatsoever. EXHIBIT SIP Trunk Service Exhibit and Service Limitations ?lf CENTURYLINK TOTAL ADVANTAGE™ AGREEMENT SrP TRUNK SERVICE EXHIBIT B 1. General; Definitions. Capitalized terms not defined herein are defined in the Agreement. CenturyLink QCC will provide SIP Trunk ("SIP Trunk" or "Service") under the terms of the Agreement and this Service Exhibit. "Affiliate" means any entity controlled by, controlling, or under common control with a party. "ANI" means automatic number identification. "Approved Connectivity" means a CenturyLink IQ™ Networking Private Port, CenturyLink IQ Networking Enhanced Port with Secure IP Gateway or CenturyLink IQ Networking Internet Port. All Approved Connectivity used with Service, whether Internet Port, Private Port or Enhanced Port, must support QoS, "AUP" means the Acceptable Use Policy incorporated by this reference and posted at qwest.centurvllnk.com/leaal/. "Calling Party Number" (CPN) means the originating party's telephone number, as displayed on Caller ID (when Caller ID privacy is not restricted). "Cancellation Charge" means the cancellation charge described in the applicable Service Exhibit and charges incurred by CenturyLink from a third party provider as a result of an early termination. "CenturyLink-Approved 911 Location" means Customer's current 911 location that Is displayed on the CenturyLink Control Center Business portal (https://controlcenter.centurylink.com), which may be the 911 location of a customer PPU, or an updated temporary location that CenturyLink has previously approved. Service may only be used at a CenturyLink-Approved 911 Location. "Convenience" means any reason other than for Default. "CPE" means any customer equipment, software, and/or other materials of Customer used in connection with the Service. "CPNI" means Customer Proprietary Network Information, which includes confidential account, usage, and billing-related information about the quantity, technical configuration, type, destination, location, and amount of use of a customer's telecommunications services. CPNI reflects the telecommunications products, services, and features that a customer subscribes to and the usage of such services, including call detail information appearing in a bill. CPNI does not include a customer's name, address, or telephone number. "Customer Environment" means Customer's data network/equipment and premises environment. "Early Termination Charge" means an amount equal to 35% of the average monthly charges billed under this Agreement through the date of termination multiplied by the number of months remaining in the Term. "End User" means Customer's members, end users, customers, or any other third parties who use or access the Services or the CenturyLink network via the Services. "IP" means Internet Protocol. "ISS" means Information Services Schedule which can be found at http;//www.centurvjink.com/tariffs/acc info services.pdf and which is subject to change. The ISS contains the current rates for domestic and international Off-Net Calls and toll free calls. "Local Session" means a Session used for the origination and termination of local and long distance telephone calls. "MATR" means minimum average time requirement. "MRC" means monthly recurring charge. "NRC" means nonrecurring charge. "Off-Net Calls" means any calls that are not (a) local calls, (b) 8xx outbound calls, or (c). On-Net Calls. i Off-Net Calls Include RDID calls. "On-Net Calls" means calls between the Service and any of SIP Trunk, Managed VoIP, CenturyLink™ Broadband Phone Service, Analog VoIP, Digital VoIP, or Integrated Access services that are transmitted through the Service entirely over the CenturyLink IP network and not the PSTN or another carrier's IP network. "Order Form" means the Customer approved purchase order from the Customer. "Ported Telephone Number" means an existing telephone number that is currently subscribed to a local exchange carrier for local, local toll and/or long distances telecommunications services.and ported to CenturyLink for use with the Service. "PPU" means the location given by the Customer as the Primary Place of Use for a particular TN, Remote DID or 8xxTN. "PSAP" means public safety answering point. "PSTN" means public switched telephone network. "QoS" means Quality of Service. "Regulatory Activity" Is a regulation or ruling by any regulatory agency, legislative body or court of competent jurisdiction. "Remote DID TN" means a telephone number In a rate center where the Customer may not have a physical presence. These telephone numbers are for Inbound use only and do not support outbound calling, Including emergency services. "RSS" means as applicable CenturyLink's Rates and Services Schedules incorporated by this reference and posted at http://www.centurylink.com/tarlffs/fcc qcc Ixc rss no 2.pdf for CenturyLink's International RSS and at httD://www.centurvlink.com/tariffs/fcc acc Ixc rss no 3.pdf for CenturyLink's Interstate RSS. "Session" means a single unit of simultaneous call capacity. "SIP" means Session Initiation Protocol. "SIP Diversion Header" means a header used to support PSTN redirecting services such as Call Forwarding. "SLAs" means service level agreements posted at http://awest.eentuiv1lnk.com/leQal which are subject to change. "Start of Service Date" means the date CenturyLink notifies Customer that the Service is provisioned and ready for use. "Tariff" includes as applicable: CenturyLink state tariffs, price lists, price schedules, administrative guidelines, catalogs, and rate and term schedules Incorporated by this reference and posted at http://www.centuryllnk.com/tariffs. "Tax" or "Taxes" means foreign, federal, state, and local excise, gross receipts, sales, use, privilege, or other tax (other than net income) now or In the future imposed by any governmental entity (whether such Taxes are assessed by a governmental authority directly upon CenturyLink or the Customer) attributable or measured by the sale price or transaction amount, or surcharges, fees, and other similar charges that are required or permitted to be assessed on the Customer. These charges may include state and federal Carrier Universal Service Charges, as well as charges related to E911, and Telephone Relay Service. "TN" means a telephone number. "Trunk Group" means a group of Sessions used for local or usage-based voice services. "Usage Session" means a Session used for the termination of Inbound toll free or Remote DID service. n .u ir 2. Service. 2.1 Description. Service provides the delivery of origination and termination of local, including 911, voice traffic and optionally long-distance, toll-free and Remote DID traffic via a SIP signaling interface enabled to the Customer Premise Equipment (CPE). All voice traffic wili be delivered in an IP format over separately purchased Approved Connectivity. 2.2 Local, 8XX and On-Net Calls. Local calls, 8XX outbound calls, and On-Net calls are included In the Service MRC. The local calling service area that applies to a Service location Is based on the area code and prefix assigned to the numbers for that location and does not depend on Customer's physical location. 2.3 Optional Services. The following optional services are available for the additional charges shown in the Pricing Attachment or other pricing document identified below. (a) Directory Assistance. A flat per call charge applies to directory assistance. (b) IP Diversity. Customer may order more than one CenturyLink IQ Networking port for the purpose of maintaining diverse IP access to the Service. Redundant CenturyLink IQ Networking ports will be purchased separately under the CenturyLink Domestic Network Diversity Service Exhibit for an additional charge. In order for Customer to use CenturyLink IQ Networking port diversity with the Service CenturyLink must configure the Service to make use of the diverse ports. An IP Diversity NRC will apply for such configuration. (c) Directory Listings. An additional MRC applies to each basic business white page listing of a telephone number. White page listings are not supported for Remote DIDs. (d) Off-Net Long-Distance: Off-Net Calls are available at the per minute rates for domestic and international Long Distance service shown in the ISS. Additional per minute charges may apply to each Off-Net Call leg of a conference call. (e) Usage-Based Trunk Groups. Customer may direct long distance calls to a usage-based Trunk Group. Off-Net LD calls directed to a usage-based Trunk Group will incur usage charges, but will not be charged a per Session charge. LD usage-based trunks are not intended to be used for placing local calls, including 911 calls. Since CenturyLink cannot always capture and provide the correct end user location for 911 calls when made over LD usage-based trunks, 911 calls placed over those trunks may not route to the proper PSAP. In those circumstances, CenturyLink may need to route the 911 call to a default national emergency call routing center, and additional third-party charges may apply. If CenturyLink incurs such additional third-party charges, CenturyLink may bill Customer for such charges. Additionally, Customer acknowledges that if it sends local calls down a usage-based Trunk Group, those calls will Incur charges at the Off-Net LD rate. To avoid incremental LD charges on local calls, Customer must configure its PBX to send all local calls to a Session-based Trunk Group. (f) Operator Services. Available for calling or credit card billed calls only. No collect or third party billing calls are supported. Pricing for Operator Services is located In the FCC Operator Services Informational Tariff posted at: http://www.centurylink.com/tariffs/fcc acc o ps to d f. (g) Dedicated VoIP Interconnect. Dedicated VoIP Interconnect provides Customers using CenturyLink IQ Networking Private Ports or CenturyLink IQ Networking Enhanced Ports with completely separate VPN access to the first network element of the Service. An additional NRC and MRC apply for this Dedicated VoIP Interconnect option. Standard Service (I.e., without the Dedicated VoIP Interconnect option) provides customers using CenturyLink IQ Networking Private Ports or CenturyLink IQ Networking Enhanced Ports with shared VPN access to the same elements at no additional cost.. n.07 (h) Remote DID. Remote DID service is a usage billed service that provides Customer with a Remote DID TN In any rate center covered by the Service for inbound calling only. CenturyLink does not support directory listings (either white, blue or yellow page) for Remote DID telephone numbers, and Customer may not purchase or otherwise arrange for directory listings for Remote DID telephone numbers with other providers of directory listings. Remote DID TNs do not support outbound calling, including emergency services (911) calls, and Customer Is strictly prohibited from using any Remote DIDs in connection with any outbound calls on the CenturyLink network or any other network, or from reconfiguring Service or any Remote DIDs to support such use, either by originating calls via the Remote DID or by using the Remote DID as an identifier for any outbound calls. If Customer falls to comply with the terms of this Section, CenturyLink may (i) immediately suspend or terminate the Remote DID Service (without notice or opportunity to cure), and (ii) CenturyLink will charge Customer an additional $0.04 per minute of use for all Remote DID service provided to Customer from and after the date of any violation of this Section. Any charges owing by Customer to CenturyLink, its affiliates or third party vendors under this Section will be in addition to any and all other charges that may be due and owing under the Agreement. (i) SIP REFER. SIP REFER allows Customer to transfer a call using a specific network protocol that causes the network to complete the call transfer rather than CPE. If Customer purchases SIP REFER with Enterprise Session Pooling, the SIP REFER MRC will be applied to all Sessions in the usage-based pool. (j) Switch Diversity. Customer may purchase optional switch diversity with the Service. Switch diversity divides Customer's Sessions between multiple network elements across separate network facilities In the CenturyLink network. Switch diversity does not provide diverse physical access to the Service. (k) Enterprise Session Pooling. Customer may purchase optional Enterprise Session Pooling with the Service. Enterprise Session Pooling enables Customer to share SIP Trunk Sessions among SIP Trunk termination locations. Centurylink provides the first Flat Session Pool at no charge. Additional Flat Session Pools after the first one will be charged as shown in the Pricing Attachment. Customer may also order Usage Pools so long as Customer has purchased Flat Pools. The number of Usage Pools cannot exceed the number of Flat Pools. There is no charge for Usage Pools.(l) ( l) Toll-Free: Inbound Toll Free services are available with the Service. CenturyLInk Is required by the FCC to state In this Service Exhibit that Customer Is prohibited from using any Toll Free TN, or other TN advertised or widely understood to be Toll Free, in a manner that would violate FCC rule 47 CFR 64,1504. Rates for domestic and international Toll Free service are In the ISS. 2.4 Service Conditions. The following conditions apply to the Service: (a) Site Conditions. Customer Environment must meet certain performance specifications designated by CenturyLink to use the Service. Customer is responsible for ensuring that its Customer Environment is fully prepared for the convergence of voice and data sen/ices, and continuing to meet specifications designated by CenturyLink during the Term. Customer is responsible for fully understanding how changes In Its data network will affect voice quality and reliability of the Service. The addition of new data network applications, increased usage, movement of Customer personnel, and equipment failures can all have an Impact on Service using that network. CenturyLink has no liability for Service deficiencies or interruptions caused by failures or malfunctions in the Customer Environment. A CenturyLInk representative will assist Customer In a technical interview to determine If the Customer Environment meets the specifications. Customer is responsible for providing all the necessary information to complete the technical interview. If CenturyLink determines in the technical interview that the Customer Environment does not meet the specifications needed bo use the Service, Customer may terminate this Service Exhibit without liability for any Cancellation Charge. (b) Voice Services (Long Distance and Toll Free). CenturyLink will provide the voice services under the terms of the Agreement, ISS, and this Service Exhibit. (i) Description; Service Guide and SLA. Long Distance accepts domestic and international dedicated long distance traffic In IP format and converts such traffic for transmission across the telecommunications network. Toll Free accepts domestic and international toll free traffic and converts It Into IP format for transmission to Customer. The voice services are dedicated offerings. The pricing for the voice services can be found in the ISS. All use of the voice services will comply with and be subject to the Services Guide and applicable sections of the SIP Trunk SLA, which is posted at qwest.centurylink.com/legal/. CenturyLink reserves the right to refuse to accept, suspend, or limit any or all of Customer's IP traffic not complying with the Service Guide technical specifications or that CenturyLInk believes Is adversely affecting other customers on the CenturyLink network. The Service Guide is incorporated into this Service Exhibit by this reference. CenturyUnk may reasonably modify the Service Guide to ensure compliance with applicable laws and regulations and to protect CenturyLink’s network and customers, and such change will be effective upon posting to the Web site. (ii) Telemarketing. With respect to any outbound Long Distance: (a) Per the Federal Trade Commission ("FTC"), telemarketers are required to transmit their telephone number to Caller ID services. As such, all telemarketers using CenturyUnk commercial services are required to provide CPN/pseudoCPN and a CGN provisioned with the service: IF A TELEMARKETER DOES MOT PROVIDE CENTURYLIMK WITH A NUMBER FOR THIS PURPOSE, THE CALL WILL BE BLOCKED BY CENTURYLINK; and (b) Federal Do Not Calls rules require that companies that telemarket or engage in telephone solicitations adhere to the requirements set forth In 47 C.F.R. section 64.1200 (FCC) and 16 C.F.R. Part 310 (FTC). Please consult with your company's legal advisor for more information. (Hi) Non-Completed Calls. "Non-completed Call Percentage Threshold" means 30% of all attempted calls, both completed and non-completed. If the percentage of Customer's calls that do not complete (out of all attempted calls) meets or exceeds the Non-completed Call Percentage Threshold for any given monthly billing cycle, CenturyUnk may, upon 30 calendar days notice to Customer, disconnect any and all circuit(s) providing Service on which the Non-completed Call Percentage Threshold was exceeded. (iv) International Toll Free. International Toll Free Service 'TTFS'YUniversal International Freephone Number "UIFN" billing increments: ITFS/UIFN Inbound International (excluding Mexico) to US Inbound Canada to US Inbound US to Canada Inbound Mexico to US 30 seconds Incremental Billing Period 6 seconds 30 seconds 30 seconds 60 seconds 6 seconds 6 seconds 60 seconds Initial Billing Period ITFS/UIFN In certain countries, the following applications are not permitted for ITFS/UIFN: calling card, VRU (Voice Response Unit), operator services, third-country termination, dial tone, dial up access, dead air or any other response the individual carrier deems inappropriate to ITFS. Originating carriers treat all carriers equally regarding these restrictions. Restrictions on usage are imposed on all other carriers, including CenturyUnk, by the originating carriers. ITFS service orders violating the restrictive guidelines of the originating carrier will not be processed by CenturyLink’s ITFS/UIFN implementation group. Tollfree originating carriers finding usage in violation of their guidelines can, and will, block toll-free numbers on the originating side of the call without notice or appeal. Carriers may change their restrictions to be more restrictive without notice to CenturyUnk. Information regarding which country has this type of limitation is located in the "ITFS/UIFN Availability Matrix". CenturyUnk Is able to supply a copy of the ITFS/UIFN Availability Matrix upon request. CenturyUnk cannot guarantee that all new ITFS/UIFN numbers are tested due to random voluntary testing of ITFS/UIFN numbers by the foreign PTTs. ITFS/UIFN numbers may be disconnected by foreign PTTs without advanced notification due to Customer fraudulent use or no usage. Customer agrees to maintain minimum usage for each number on a regular basis and adhere to the restricted application guideline (as stated in Availability Matrix). In situations when an ITFS/UIFN is disconnected by a foreign PTT, it is the Customer's responsibility to submit an order for a new number. CenturyUnk does not guarantee that the same number can be re-instated. All PTTs resen/e the right to decline, cancel, or change international services at any time with or without notice. UIFN is a service which allocates 1 toll free number to be used In multiple foreign countries to call the United States and bill to the number in the United States. Countries which are currently available for UIFN are: Argentina, Australia, Belgium, Brazil, China, Denmark, Finland, France, Germany, Hong Kong, Hungary, Ireland, Israel, Italy, Japan, South Korea, Luxembourg, Macau, Malaysia, Netherlands, New Zealand, Norway, Philippines, Portugal, Singapore, South Africa, Spain, Sweden, Switzerland, Taiwan, Thailand, and United Kingdom. There Is an NRC and an MRC, which are applicable per number, regardless of the number of countries in which the number Is active. The per minute rates using the UIFN number are the same as the ITFS rates. The UIFN nonrecurring charge and monthly rate applies to any CenturyUnk product where the customer subscribes to UIFN(s). All rates are located in the ISS. (c) Connectivity. As of the effective date of this Sen/ice Exhibit, the Service may only be used with Approved Connectivity. Customer must purchase Approved Connectivity separately. CenturyUnk may add to the Approved Connectivity list from time to time. The then current list of Approved Connectivity Is available to Customer upon request. CenturyUnk has no liability for Service deficiencies or interruptions caused by Customer, its employees, contractors or agents, or End Users reconfiguring or misconfigurlng the Approved Connectivity. (d) Off-Net Call Billing. Off-Net Call charges are quoted in full minutes. Each domestic Off-Net Call is measured and billed for an initial 18 seconds and rounded up to the next 6 second increment after the first 18 seconds. Domestic Off-Net Calls are also subject to a 30 second MATR per call. If the MATR is not met in a particular month, CenturyUnk may add $0.01 to the per minute charge for all domestic OffNet Calls during that month. Each international Off-Net Call (except to Mexico) is measured and billed for an initial 30 seconds and rounded up to the next 6 second increment after the first 30 seconds. Each International Off-Net Call to Mexico Is measured and billed for an initial one minute and rounded up to the next minute after the first minute. (e) Unsupported Calls. The Service does not support collect or third party billing. The Service may not support 311, 511 and/or other x ll services (other than 911, 711 and 411 dialing) In all service areas. The Service does not support remote bridged line appearances ("Remote BLAs"). Customer is specifically Instructed not to enable Remote BLAs on its IP devices used with the Service. Additional Information regarding potential issues with Remote BLAs is found In the "911 Emergency Service" section of this Service Exhibit. (f) Area of use. The Service is intended to be used only at one of the Customer PPU locations in the 48 contiguous United States and Hawaii. Additionally, Customer may not use IP enabled stationary devices that are assigned to, designated for, or configured for use at one PPU location in any other location, unless Customer has requested a temporary change of its 911 location, and has received approval and the 911 Update Confirmation from CenturyUnk as set forth in subpart (g) below. 911 emergency calls automatically route to the appropriate 911 center based upon the CenturyLink-Approved 911 Location. If Customer or an End User tries to use the Service (I) at a location other than a CenturyLink-Approved 911 Location (Including without limitation, using IP enabled devices assigned to, n .7 o designated for, or configured for use at one location in a different location) or (ii) outside of the 48 contiguous United States and Hawaii, they do so at their own risk ( Including without ¡imitation, the risk that Customer will n o t have access to 911 em ergency services and/or such activity violates local laws in the jurisdiction where Customer or an End User tries to use the Service). (g) Use of Service a t a Temporary Location. Customer may temporarily use the Service at a location other than the Customer PPU location only after obtaining CenturyLink's approval either (i) by contacting CenturyUnk at 1-877-878-7543 or (ii) by submitting a 911 location change request through the CenturyUnk Business portal. Customer must submit a 911 location change request both before using Service at the temporary location and before returning to the Customer PPU location. Failure to obtain CenturyLink's approval is prohibited and constitutes a misuse of the Service. Such misuse will result in 911 calls being routed to the incorrect 911 operator based on incorrect address Information. Use of Service at a temporary location may not exceed six (6) months in duration. Upon submission of Customer's 911 location change request, CenturyUnk will reject the request, or accept and begin processing the request. Customer is responsible for checking the CenturyUnk Control Center Business portal to confirm if the request was rejected or accepted. Customer will be notified of the 911 Update Interval (defined in Section 3.1 below) at the time the request is accepted via the CenturyLink Control Center Business portal. Upon completion of the 911 location change and the 911 Update Interval, an e­ mail will be sent to Customer's e-mail address notifying Customer that 911 service has been successfully moved and is ready for use ("911 Update Confirmation"). In the event Customer does not receive such confirmation by expiration of the 911 Update Interval, Customer agrees to contact CenturyUnk at 1-877­ 878-7543. Any 911 calls placed prior to receiving the 911 Update Confirmation will be routed according to the last CenturyLink-Approved 911 Location. If, upon submission of a 911 location change request, CenturyUnk rejects the change request, Customer understands that CenturyUnk has not approved using the Service at that new location and, as such, Customer is prohibited from using the Service there. (h) Compliance. The Service cannot be used for any unlawful, abusive, or fraudulent purpose, including without limitation, using the Service in a way that: (i) interferes with CenturyUnk's ability to provide service to CenturyUnk customers; (ii) avoids Customer's obligation to pay for communication services; (ill) constitutes a criminal offense; (iv) gives rise to a civil liability; (v) otherwise violates any laws; or (vi) constitutes a resale arrangement with a third party (e.g., wholesaling of the Service is not permitted). Without limiting the foregoing, the Service cannot be used for auto-dialing, continuous or extensive call forwarding, fax broadcasting or fax blasting, or for uses that result In excessive usage Inconsistent with normal usage patterns. (i) Authorized Use. Customer and Its End Users are the only parties authorized to access the Service. Customer and Its End Users are responsible for maintaining the confidentiality of passwords used by Customer and its End Users and will ensure that all use of the Service complies with the Agreement and this Service Exhibit. Customer is responsible for unauthorized use of the Service. (j) Power Outages; Network Connectivity, Customer Data Network and CPE Failures; M aintenance Work; Moving Equipment. The Service will not operate {including, without limitation, End Users will b e unable to access em ergency 911 services) if any of the following items fail: (i) power used with the Service; (Ii) the Approved Connectivity used with the Service (including without limitation, failures caused by suspension or termination of the Approved Connectivity under the terms of that service); (iii) the Customer Environment; (iv) the Approved Connectivity router; (v) Customer premises routers and switches; (vi) the IP enabled devices used with the Service; or (vii) customer's SIP signaling interface. Additionally, the Service will not operate {including, without limitation, End Users will b e unable to access em ergency 911 services) while maintenance work is being performed. If Customer has requested a temporary change of its 911 location, and has received approval and the 911 Update Confirmation from CenturyUnk as set forth in subpart (g) above, Customer may move the IP handset only. (k) Privacy. CenturyUnk, its affiliates and third-party vendors, may access and use information regarding Customer bandwidth usage and performance of CPE, software, and Service to: (a) perform related registration (equipment serial number, activation date, and WTN provided to manufacturer), maintenance, support, and other service-quality activities and (b) verify AUP compliance and network performance. ( l) Telephone Numbers. Customer must provision at least one TN for use with the Service. The TNs may be new TNs or Ported TNs. If Customer requests Ported TNs, Customer authorizes CenturyUnk to process Its order for Service and notify Customer's current carrier of Customer's decision to switch Its local and local toll services to the Service. Customer will be responsible to promptly provide CenturyUnk with its Customer Service Record (CSR) from customer's current carrier to facilitate porting of numbers. If Customer does not order new TNs from CenturyUnk, and Ported TNs are not ported within 60 days of the Start of Service Date for a specific location, CenturyUnk reserves the right to terminate Service at that location. Additionally, the Start of Service Date and commencement of billing will not depend on completion of porting. If Customer requests cancellation of Service, it Is Customer's sole responsibility to arrange porting of any telephone numbers Customer wants to retain. If porting of numbers is not completed within 30 days following Customer's request for Service cancellation, CenturyUnk may terminate Service and Customer will lose all telephone numbers. There may be limitations to number porting between providers. Due to the portability of VoIP services, for example, providers may allow non-geographic numbers to be used In connection with their service. CenturyUnk will deny a request to port a TN to a location that is not within the rate center where the Service will be used. Other limitations might also apply and can be addressed on an Individual basis. (m) Trunk Group Utilization. Customer must maintain a peak utilization of Trunk Groups used to support usage-based services of 60 percent or higher. "Peak utilization" means the maximum utilization for a Trunk Group reached at any point during the month. Each month, CenturyUnk will calculate the peak utilization over Customer's usage-based Trunk Groups. If peak utilization is less than 60% for three consecutive months, CenturyUnk reserves the right to reduce the number of Sessions in the affected usage-based Trunk Group such that the peak utilization of the Trunk Group Is at least 75%. (n) Third Party Billed Services. The Service does not support billing for third party services such as online subscription services, equipment leases and wireless services. Customer will be responsible for payment of all such charges directly to the third party provider. (o) Local Origination. Customer agrees that the SIP Diversion Header, ANI and Calling Party Number delivered with each outbound call will accurately reflect the location of the originating party so that appropriate long distance charges may be applied for each call, where applicable. For example, Customer may not utilize tail end hop off routing to route long distance calls across a private WAN VoIP network and drop off the long distance calls to the PSTN as local calls at a remote gateway. Failure to comply will constitute a material breach of the Agreement 2.5 SLA. Service is subject to the SIP Trunk SLA. Approved Connectivity (purchased separately) is subject to the CenturyUnk IQ Networking SLA, and not to the SIP Trunk SLA. Both SLAs are posted at http://qwest.centurvllnk.oom/leaal/. CenturyUnk reserves the right to amend the SLAs effective upon posting to the website or other notice to Customer. All other services, facilities, and components relating to the SIP Trunk Service, including without limitation any CPE, the Customer Environment, the Customer SIP Signaling Interface, Customer premise switches and routers, devices used with the Service, another carrier's IP network, and the PSTN are not included in the SLA measurement. The SLA credit will provide Customer's sole remedy for any Interruptions or deficiencies In the Service. D-7L 3. 911 Emergency Service. [ § g I P ñ p M Í f i POTENTIALLY HAZARDOUS SITUATION WHICH IF NOT AVOIDED COULD RESULT IN DEATH OR SERIOUS INJURY. PLEASE READ CAREFULLY. 3.1 R eq u ired F ederal C om m unications Com m ission ("FCC") Warning. The FCC requires that CenturyUnk inform Customer o f potential limitations to 911 services using SIP Trunk Service and bundles or packages th at include SIP Trunk Service. The Service provides access to 911 em ergency service only on stationary devices (an d n o t mobile devices). The Service does n o t support any outgoing calls, Including calls to 911 em ergency service from a mobile device. 911 em ergency services will n o t b e available or m a y n o t function property (e.g., th ey m a y n o t route to the correct public safety answering poin t o r "PSAP") under the following circumstances: (I) if the Service is u sed a t a location other than a CenturyLink-Approved 911 Location In the 48 contiguous United States and Hawaii, or i f an IP-enabied stationary device is m o v e d within the CenturyLink-Approved 911 Location and n o t reconfigured; (ii) if Customer selects a telephone number th a t is n o t associated with the geographic area o f the installed service (e.g., i f Customer chooses a California num ber for use in a Colorado location); (Hi) for initial installation o f Service - on average 5 days, b u t for a s long a s 3 0 days after installation o f Service due to time required to update 911 databases with custom er information; (iv) for use o f Service a t a temporary location - until CenturyUnk has com pleted the 911 Update Interval and se n t the 911 Update Confirmation to Customer's e-rnaii address o f record. "911 Update Interval" is approximately 1 5 minutes, unless further address verification is required, in which case the 911 Update Interval could b e up to 72 hours (Im p o rta n t: Custom er and End Users should always check for the 911 Update Confirmation before using 911 service a lte r a temporary m ove); (v) i f th e Service fails or degrades for any reason, such a s failures resulting from p o w er outages, CPE failure (e.g., Internet connectivity routers, Customer's data network an d equipment, Customer prem ises sw itches an d routers, phones, handsets, an d other IPenabled devices), cable cuts, o r an y Service or broadband outage o r degradation (including without Iimitation, failures caused b y suspension or termination o f the Service); (vi) while maintenance work is being perform ed; or (vii) i f Customer's area d o es n o t have 911 em ergency service. Additionally, CenturyUnk does n o t su pport R em ote BLAs on IP devices used with the Service. I f a Rem ote BLA is enabled, a n d Customer o r an End User m ake a 911 call from the R em ote BLA tine, the 911 call will incorrectly route to the PSAP associated with th e 911 location o f the telephone number assigned to the R em ote BLA, an d n o t to th e 911 location o f the calling party. For example, i f an End User has a Remote BLA fo ra colleague in Chicago on a phone located in San Francisco, and End User in San Francisco places a 911 call on the Rem ote BLA line, em ergency services will b e routed to the 911 location in Chicago associated with th e phone num ber o f the Rem ote BLA, n o t to the 911 location in San Francisco. 3.2 A dd itio n a l In fo rm a tio n R egardin g th e L im itation s o f 911 Services. When dialing 911 with the Service, End Users should always sta te the nature o f the emergency, and include End User location and number. The default PSAP m a y n o t b e able to call the End User back i f the call is n o t completed, is dropped or is disconnected, or i f End User is unable to tell the PSAP their number and physical location. The PSAP to which the call is directed will b e b a sed on the stre e t address and calling p a rty number for the CenturyLink-Approved 911 Location. The 911 em ergency service provided is Enhanced 911 em ergency service in th a t th e calling party num ber will b e delivered to the PSAP with the 911 call and the PSAP will h ave the CenturyLink-Approved 911 Location associated with that calling p a rty number. End User's CenturyLink-Approved 911 Location m a y n o t sufficiently pinpoint the specific location o f the em ergency; therefore, End Users m u st im m ediately te/i the dispatcher the specific location o f the em ergency s o the PSAP can locate the End User an d assist with the emergency. CENTURYLINK RECOMMENDS THAT CUSTOMER AND END USERS ALWAYS HAVE AN ALTERNATIVE MEANS OF ACCESSING TRADITIONAL 9 1 1 SERVICES. /A 73 3.3 No P rivacy R ights. Customer acknowledges th at there is no right o f privacy with respect to the transmission o f number, name, or address when the Service is used to access 911 or other numbers used in conjunction with 911 or similar em ergency services, either b y Customer or End Users. 3.4 C u stom er M u st N o tify End U sers o f 911 Limits. Customer will notify all End Users (!) o f the limitations on access to 911 em ergency service described in the Agreem ent and this Service Exhibit; and (ii) th at access to 911 em ergency service and an appropriate PSAP is only available a t the CentuiyLi/ikApproved 911 Location an d is n o t available using an IP enabled mobile device. CenturyUnk will provide labels th at will indicate th at 911 service has limited availability an d functionality when used with SIP Trunk, and CenturyLink recom m ends that the labels b e placed on or near the equipment associated with th e Services. 3.5 Limitation of Liability. CENTURYLINK, ITS AFFILIATES, AGENTS AND CONTRACTORS (INCLUDING WITHOUT LIMITATION, ANY SERVICE PROVIDER PROVIDING SERVICES ASSOCIATED WITH ACCESS TO 911 EMERGENCY SERVICE) WILL NOT HAVE ANY LIABILITY WHATSOEVER FOR ANY PERSONAL INJURY TO OR DEATH OF ANY PERSON, FOR ANY LOSS, DAMAGE OR DESTRUCTION OF ANY PROPERTY RELATING TO THE USE, LACK OF ACCESS TO OR PROVISION OF, 911 EMERGENCY SERVICE. 3.6 A c k n o w le d g e m e n t o f 9 1 1 Lim itations. By Initialing below, Customer acknowledges that CenturyUnk has advised it o f the 911 limitations s e t forth in this Service Exhibit, th at Customer understands this information, and that Customer accepts the Service with these limitations. Using CenturyLink's electronic signature process for this Acknowledgment is acceptable. PRINT CUSTOMER COMPANY N A M E : ____________________ ________________ PRINT CUSTOMER REPRESENTATIVE'S NAME: ____ ______________________ ___ CUSTOMER REPRESENTATIVE'S IN ITIA LS:______________________________________ 4. Term; Cancellation. In accordance with Article 6 of the Department of Informtion Technology Price Agreement#20-361-12-01578CL This Service Exhibit will commence upon the Effective Date of the Agreement (or, if applicable, an amendment to the Agreement if this Service Exhibit is added to the Agreement after its Effective Date) and will conclude upon the termination of the last-to-terminate Service ordered hereunder. Either party may cancel Service by providing notice of such cancellation to the other party at least 30 days prior to the date of cancellation. Customer will remain liable for charges accrued but unpaid as of the cancellation date of Service, including charges for Service used by Customer or its End Users if cancellation has been delayed for any reason, such as delays for porting Customer telephone numbers to another carrier. The initial Trunk Group will have a minimum term equal to