Title
Incorporated County of Los Alamos Ordinance No. 751, An Ordinance Authorizing the Execution and Delivery of a Water Project Fund Loan/Grant Agreement By and Between the New Mexico Finance Authority (“NMFA”) and the Incorporated County of Los Alamos, New Mexico (The “Borrower/Grantee”), in the Total Amount of $2,500,000, Including a Loan in the Amount of $250,000, Evidencing an Obligation of the Borrower/Grantee to Utilize the Loan/Grant Amount Solely for the Purpose of financing cost of constructing a replacement 14-Inch Water Transmission Line , and Solely in the Manner Described in the Loan/Grant Agreement; Providing for the Pledge and Payment of the Loan Amount and an Administrative Fee Solely From Net System Revenues of the Joint Utility System of the Borrower/Grantee; Certifying That the Loan/Grant Amount, Together With Other Funds Available to the Borrower/Grantee, is Sufficient to Complete the Project; Approving the Form of and Other Details Concerning the Loan/Grant Agreement; Ratifying Actions Heretofore Taken; Repealing All Action Inconsistent With This Ordinance; and Authorizing the Taking of Other Actions in Connection With the Execution and Delivery of the Loan/Grant Agreement.
Recommended Action
I move that the Board of Public Utilities recommend to Council approval of Incorporated County of Los Alamos Ordinance No. 751; An Ordinance Authorizing the Execution and Delivery of a Water Project Fund Loan/Grant Agreement By and Between the New Mexico Finance Authority (“NMFA”) and the Incorporated County of Los Alamos, New Mexico, and forward to Council for introduction and adoption.
Utilities Manager's Recommendation
The Utilities Manager recommends that the motion be approved as presented.
Body
This project will replace approximately 6,700 linear feet of 14" steel waterline installed in 1949 with a new 14" ductile iron pipe along NM-502. The existing 14" steel pipe is aged and deteriorated and experiences regular leaks. This line is a critical transmission line that conveys water from Otowi Well #4 to the Townsite area of Los Alamos.
Proposed Schedule:
Council Introduction - December 2, 2025
Public Hearing - December 16, 2025
Alternatives
If the Council does not approve the ordinance, the project will be deferred until funding can be secured.
Fiscal and Staff Impact/Planned Item
$2,883,500 has been budgeted in CIP fiscal year 2026 for the project. This WPF-6584 Loan/Grant of $2,500,000 from the Water Trust Board Award will fund the project. Additional funding of $500,000 will come from the Water Production fund for the local match required by the award. Once bids are received, a budget revision will be executed with the award of the project if additional funding is needed to meet the match requirement. Interest on the loan amount will be 0.25% of the unpaid principal balance on an annual basis.
Attachments
A - LAC Ordinance No. 751
B - Loan / Grant Agreement
C - Delivery, Deposit & Cross-Receipt Certificate
D - Borrower’s Council Opinion
E - General & No Litigation Certificate