Title
Recommendation Regarding Incorporated County of Los Alamos Ordinance No. 745; An Ordinance Authorizing the Incorporated County of Los Alamos to Enter into a Loan Agreement with the New Mexico Environment Department for the Purpose of Obtaining Project Loan Funds in the Principal Amount of $1,750,000 Plus 1% Accrued Interest and Loan Subsidy Grant Funds in the Amount of $250,000 for Upgrades to the Los Alamos Wastewater Treatment Plant
Recommended Action
I move that the Board of Public Utilities Recommend to the Council, the Approval of Incorporated County of Los Alamos Ordinance No. 745; An Ordinance Authorizing the Incorporated County of Los Alamos to Enter Into a Loan Agreement with the New Mexico Environment Department for the Purpose of Obtaining Project Loan Funds in the Principal Amount of $1,750,000 Plus 1% Accrued Interest and Loan Subsidy Grant Funds in the Amount of $250,000 for Upgrades to the Los Alamos Wastewater Treatment Plant and Forward to Council for Introduction and Adoption.
Utilities Manager Recommendation
The Utilities Manager recommends that the Board approve the motion as presented.
Body
The Department of Public Utilities (DPU) applied for a $2 million loan from the Rural Infrastructure Program (RIP)administered by the New Mexico Environment Department to fund multiple upgrades and equipment replacement projects at the Los Alamos Wastewater Treatment Plant. The award received includes a $250,000 subsidy (grant), reducing the amount of funding to be borrowed to $1,750,000 at an annual interest rate of 1%. The award will fund the following improvements:
- Repair cracks in the concrete aeration basins
- Replace the fine screen
- Replace the ultra-violet disinfection equipment
- Upgrade the blower building HVAC system to resolve a blower overheating issue
- Replace unreliable motor control centers on various process equipment
Ordinance 745 is scheduled to be introduced in the August 26, 2025 Council meeting and a public hearing in the September 9, 2025 Council meeting.
Alternatives
If the Board does not affirm this Ordinance, the loan and subsidy will not be secured, and the wastewater treatment plant improvements will be deferred until funding can be secured.
Fiscal and Staff Impact/Planned Item
$2 million dollars has been budgeted in fiscal year 2026 for the Los Alamos Wastewater Treatment Plant upgrades described in the body above.
Attachments
A - Ordinance 745