Title
Incorporated County of Los Alamos Ordinance No. 711: Loan/Grant Agreement with the New Mexico Finance Authority for Wastewater Plant Filtration System (Water Trust Board Loan/Grant)
Full Title:
Incorporated County of Los Alamos Ordinance No. 711, an Ordinance authorizing the execution and delivery of a water project fund loan/grant agreement by and between the New Mexico Finance Authority (“Finance Authority”) and the Incorporated County of Los Alamos, New Mexico (the “borrower/grantee”), in the total amount of $2,500,000, evidencing an obligation of the borrower/grantee to utilize the loan/grant amount solely for the purpose of financing the costs of construction of a filtration treatment process at the wastewater treatment plant and paying an administrative fee, and solely in the manner described in the loan/grant agreement; providing for the pledge and payment of the loan amount solely from net revenues of the water and wastewater utility fund; 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 Council adopt Incorporated County of Los Alamos Ordinance No. 711, an Ordinance authorizing the execution and delivery of a Water Project Fund Loan/Grant Agreement between the New Mexico Finance Authority and the County in the total amount of $2,500,000 for the purpose of constructing a filtration treatment process at the Los Alamos Wastewater Treatment Plant.
Utilities Manager Recommendation
The County Manager recommends that Council approve the motion as presented.
Board, Commission, or Committee Recommendation
This Ordinance was introduced at the November 9th regular County Council Meeting. Department of Public Utilities (DPU) Staff presented this Ordinance to the Board of Public Utilities (BPU) at their November 17th regular meeting. After careful consideration of the information presented and discussion, the Board unanimously recommends that Council approve the motion as presented.
Body
Los Alamos County was awarded $2,500,000 in the 2021 legislative session from the Water Trust Board to construct a filtration treatment process at the Los Alamos Wastewater Treatment Plant. The new filtration process will improve the water quality of the effluent to achieve Class A effluent which will allow Los Alamos County to expand the use of effluent water and conserve potable water. The higher quality water can be used in closer proximity to populated areas and with less restrictions on the times when irrigation can occur. The filtration improvements have been planned for a number of years in the capital improvement plan prepared as part of the Non-Potable Water Master Plan in 2013. Upon notification of the successful award in June 2021 the Department of Public Utilities (DPU) engaged Bohannan-Huston Inc. to design the new filtration process to have a shovel ready project to bid when the loan/grant agreement is executed in January 2022. The design is complete and has been approved by the New Mexico Environment Department Construction Programs Bureau. The project will be under construction through the summer of 2022 and be complete in the fall of 2022.
The award includes a combination loan and grant totaling $2,500,000. The grant component is $1,200,000 and the loan is $1,300,000 at 0% interest with a 0.25% annual fee on the balance. In addition, the DPU must contribute $210,000 in matching funds. The ordinance is scheduled to be introduced in the November 9, 2021 Council meeting and a public hearing held in the December 7, 2021 Council meeting. The closing of the loan/grant agreement is scheduled for January 14, 2022.
Alternatives
If Ordinance 711 is not approved the project will not be awarded and staff will continue to pursue grant opportunities to fund the project.
Fiscal and Staff Impact
$900,000 has been budgeted in this fiscal year to fund the County's required match of $210,000. The first of 20 annual payments will be made when the construction is completed.
Attachments
A - Ordinance No. 711
B - Loan & Grant Agreement
C - Publication Notice for Ordinance No. 711