Title
Introduction of Incorporated County of Los Alamos Ordinance No. 759; An Ordinance Authorizing the Execution and Delivery of a Water Project Fund Loan/Grant Agreement Between the New Mexico Finance Authority (“NMFA”) and the Incorporated County of Los Alamos, New Mexico in the $3,252,000 for the Purpose of Financing the Costs of Phases II and III of the Denver Steels Waterline Replacements
Recommended Action
I introduce without prejudice, Incorporated County of Los Alamos Ordinance No. 759; An Ordinance Authorizing the Execution and Delivery of a Water Project Fund Loan/Grant Agreement Between the New Mexico Finance Authority (“NMFA”) and the Incorporated County of Los Alamos, New Mexico in the amount of $3,252,000 for the Purpose of Financing the Costs of Phases II and III of the Denver Steels Waterline Replacements, and ask the staff to assure that it is published as provided in the County Charter.
Utilities Manager's Recommendation
The Utilities Manager recommends that Ordinance No. 759 be introduced as presented.
Board, Commission or Committee Recommendation
The Board of Public Utilities reviewed this request at their regular meeting on August 19, 2026 and recommends that Ordinance No. 759 be introduced as presented.
Body
The Denver Steels Project Phase II is funded under DWSRF Loan No. 6651. During construction, several existing galvanized water service lines were identified as severely corroded and actively leaking. Replacement of these lines is critical to maintain system integrity and protect public health; the work to replace the service lines was not part of the original scope of work and was not eligible for reimbursement under the DWSRL Loan No. 6651 agreement.
Los Alamos County reached out to NMFA about other funding opportunities and found that under the Infrastructure Investment and Jobs Act (IIJA), specifically the allocation designated for Lead Service Line Replacement (LSLR) through the Drinking Water State Revolving Fund (DWSRF). NMFA assisted Los Alamos County in securing LSLR funding that would allow our on-site contractor to proceed with immediate replacement. The proposed scope of work includes the installation of new PEX service lines from the original meter locations near the residences; Extension of these lines to connect to new water meters located within the public right-of-way (ROW); and Transfer of long-term ownership and maintenance responsibility for the service line segment between the new meter and the residence to the homeowner upon project completion. The amount of the budget increase required to complete this work is $525,000.
Alternatives
If the BPU and Council do not approve the ordinance, the project will need to be fully funded by DPU in order to complete the work needed to repair the leaking service lines.
Fiscal and Staff Impact/Planned Item
Approving Ordinance No. 759 increases the maximum authorized principal funding amount from $2,727,000 to $3,252,000, an overall project funding increase of $525,000.
The maximum repayable principal amount owed by the County increases from $2,102,000 to $2,627,000. This remaining balance is subject to standard NMFA interest, expenses, and administrative fees.
The principal forgiveness (grant subsidy) remains unchanged at $625,000. This project constitutes a special limited obligation of the County. There is zero impact on the General Fund. All debt service, fees, and interest will be paid solely out of the net revenues generated by the Joint Utility System.
Attachments
A - LAC Ordinance No. 759
B - Amended and Restated Loan / Grant Agreement
C - Budget Adjustment Request (BAR)
D - Credit Analysis Updated
E - Debit Service Schedule
F - NMFA Board Summary Report
G - Presentation Slides.