Title
Introduction of Incorporated County of Los Alamos Ordinance No. 741; an Ordinance Authorizing the Execution and Delivery of a Loan and Subsidy Agreement by and Between the Incorporated County of Los Alamos and the New Mexico Finance Authority (NMFA,) in the Total Amount of $2,727,000 for the Purpose of Financing the Costs of Phases II & III of the Denver Steels Waterline Replacements Project
Recommended Action
I introduce, without prejudice, Incorporated County of Los Alamos Ordinance No. 741; an Ordinance Authorizing the Execution and Delivery of a Loan and Subsidy Agreement by and Between the Incorporated County of Los Alamos and the New Mexico Finance Authority (NMFA,) in the Total Amount of $2,727,000 for the Purpose of Financing the Costs of Phases II & III of the Denver Steels Waterline Replacements Project, and ask staff to assure that it is published as provided in the County Charter.
Utilities Manager's Recommendation
The Utilities Manager recommends that Council Introduce Ordinance No. 741 as presented.
Board, Commission or Committee Recommendation
The Board of Public Utilities affirmed Ordinance No. 741 at their regular meeting on April 16, 2025 and recommends that Council introduce Ordinance No. 741 as presented.
Body
The Department of Public Utilities coordinates capital improvement projects with the Public Works Department each year as part of the budget preparation. The Denver Steels neighborhood has been a planned project due to the deteriorating condition of the roads. The existing waterlines are approximately 75 years old and are cast iron with lead joints. The water mains and services lines experience regular leaks and are in need of replacement. Existing sewer mains beneath the new roadway will also be replaced to eliminate the risk of having to excavate the new road to repair the sewer. Phase I of the project was completed in 2018, and replaced the road and waterlines closest to Diamond Drive. Phase II and Phase III are planned for fiscal years 2026 and 2027. These projects have been planned in the CIP budget to be funded by a low interest Drinking Water State Revolving Loan (DWSRL), administered through the New Mexico Finance Authority (NMFA). Phase II is scheduled to begin construction in the spring of 2025 and Phase III in the spring of 2026.
Proposed Public Hearing Schedule: May 20, 2025 - County Council
Alternatives
If the ordinance is not approved the waterline replacement will be deferred until funding can be secured.
Fiscal and Staff Impact/Planned Item
The loan component of this agreement is in the amount of $2,102,000 for a term of 20 years at 0.26% interest rate. The subsidy (grant) component of this agreement is in the amount of $625,000. No additional staff impact.
Attachments
A - Ordinance No. 741
B - Loan and Subsidy Agreement
C - Pledged Revenue Certificate
D - Cross-Receipt Certificate
E - No Litigation Certificate
F - Borrower's Opinion
G - Sutin Opinion