By Mary Alice Murphy

[Editor's Note: This is part of a multi-article series on the Grant County Commission work and regular sessions on April 18 and 20, 2017.]

Item P on the regular meeting agenda, which was reviewed and discussed at the Tuesday, April 18, 2017, work session and again discussed at the regular meeting Thursday, April 20, 2017, elicited considerable commissioner comments.

The professional services agreement with the Silver City-Grant County Chamber of Commerce for management of the county-owned Grant County Veterans Memorial Conference Center met with resistance from Commissioner Harry Browne, as well as concerns from other commissioners.

"I have significant problems with this agreement," Browne said at the work session. "I think it is too generous to the chamber. My main concern is that we are not clear about what our expenses will be. We have a situation where the county could incur risks but the chamber is not taking risks. The first $80,000 goes to the chamber and above that, 40 percent of revenues. I understand the incentive. The county is paying for marketing. To me, it would be prudent to cover our costs first. I also recommend reducing the term from four years to two years, but that would be drastic. But it would give us a chance to evaluate what is a new project."

Commission Chairman Brett Kasten said the commissioners had given the county manager the authority to negotiate the contract. "We have to vote up or down on Thursday. We can't negotiate in public."

"Or we could withdraw the agenda item," Browne said. "I see a significant chance of the county losing money and the chamber making money."

"I don't see it that way," Kasten replied.

Commissioner Gabriel Ramos said he thought the county should get it done as soon as possible to begin renting the facility.

"I agree, I can't see the county being able to turn it around overnight, but we need to get started," Kasten said.

General Services Director Randy Villa said the "amount of usage of the building will be there. I think the county doesn't have the staff to turn it around. I believe it is a moneymaker. I think it will benefit the county. I think we need a management team."

Browne said he is not opposing a management team, and "I have no problem with the choosing of the organization. I would just rather see it based on a net operating budget, not on gross receipts, in order to protect our interests."

Commissioner Billy Billings said, going forward, he would like to see the process accounting for every expense. "We need a business plan. We don't have enough information. Then we can see how much the county is making or losing. Get the university to determine the economic value of the facility. I think we will have a loss at the conference center."

Ramos said: "We are providing a public building that will bring in revenue in the building, and through gross receipts tax from public businesses. I think it's a good contract. Hopefully, we can bring in big events."

"I've done start up businesses," Kasten said. "I don't think the chamber will make too much money, especially not in the first couple of years."

At the regular meeting, when the agenda item came up, Ramos moved to approve the contract and Billings seconded it.

In discussion, Browne said he wanted to be "crystal clear, my concerns do not question the choice. I know the manager sought others. I am delighted the contract can remain in the county. My concerns are that it seems there are lots of holes in the agreement. We pay for marketing expenses. I'm not clear if this includes staff. Who pays for security if the county has no control over the language in the rental agreements and no performance deliverables? I am not comfortable with 'understandings' on the sideline. I am OK with the $80,000 up front, but I'm not OK with the 40 percent above that at least in the second, third and fourth years. It's not a fair deal for the county. Our haste to get it in place endangers the county."

County Manager Charlene Webb said the chamber coordinates with the user to work with law enforcement officers and Western New Mexico University Police Academy students to assist the user to provide security.

Commissioner Alicia Edwards asked who determines if the event requires security, but was not directly answered.

Billings said his concern is to minimize losses and maximize revenue. "I'm glad we have a 180-day clause that allows either party to revisit the agreement. We will have access to records."

Edwards said those were some of her concerns also. "My conversation with Charlene alleviated some, but not all. I rely on the fact that the county can get out of the agreement. I have no problem with the chamber receiving the contract. I am hopeful it will be a great partnership and a win-win. I would like to see the amazing potential of the conference center realized, and I will support the agreement."

Ramos said the Commission inherited the building. "We rely on our attorney to address all the legal issues. I'm proud we hired Charlene and am proud you do what you do," he said to Webb.

Kasten noted the options were to fix the building or let it remain somewhat unusable.

"It was a savvy business decision to get Ace Hardware into part of the building," Billings said.

"I think Mr. P+¬rez's concerns have been addressed," Edwards said. "I appreciate the amount of work Charlene has done on this project."

[Editor's Note: see http://www.grantcountybeat.com/news/news-articles/36260-grant-county-commission-hears-public-input-and-presentations-at-regular-meeting-042017 for the public input comments.]

Scott Terry, chamber president and manager, said, to chuckles from all: "We also very much appreciate the 180-day clause."

"When we were doing the numbers, we tried to project them," he continued. "None of this goes to my salary. If the county had hired employees and with their health benefits and retirement costs, it would have been well over $100,000.

"I see the first year expenses at between $65,000 and $70,000," Terry continued. "That is not a lot of margin. It absolutely has to do with hiring more help. I work already at least 60 hours a week. Having someone at the conference center Monday through Friday from 9 a.m. to 5 p.m. is very important. That person can answer the phone, show people the facility, book the facility and answer questions."

He said if he has to travel to Farmington, for example, to do marketing, "I would ask the county to reimburse my expenses only for those activities that are for marketing the conference center. The chamber is strictly managing a great facility for Grant County. We have to market it. Admit it, Silver City is a hard place to get to. We have to show it's the best place to hold a conference."

"You think you have questions," Terry said. "You should have heard the questions I got from the chamber board."

As for expenses, he said the liability insurance would run about $8,000 annually. The software would incur a monthly fee. A full-time employee will be paid $25,000, without benefits, although after 90 days, the person is eligible for vacation time. A part-time custodian will work about 20 hours a week at $9 an hour.

"I truly hope we can pay our expenses with the budget you gave us," Terry said. "I am getting calls already. We've been stalling until the contract was done. I will start calling folks back if you approve the contract. My software won't be ready for 45 days, so I will keep records the old-fashioned way. I am looking forward to doing the job."

Ramos noted the County Fair Building does not make the county money. Hurley and Bayard have community centers that don't make the municipalities money.

"I hope we can make money on the people who come here and spend money," Ramos said.

"If we get really busy, I will have to hire more people," Terry said. "This is a business. It will be hard to rent at first. Before, you gave it away at low rents. I anticipate the first couple of years will be tough. If you approve, we will move into the facility on Saturday.

"We look forward to doing a good job, not only for the chamber, not only for the county, but for the community," he concluded.

The County Clerk Marisa Castrillo called for a roll call vote. Edwards, Kasten, Ramos and Billings voted yes. Browne voted no.