Title
Approval of Incorporated County of Los Alamos Ordinance No. 732; An Ordinance Authorizing the Execution and Delivery of a Loan Agreement (“Loan Agreement”) By and Between the Incorporated County of Los Alamos, New Mexico (the “Governmental Unit”) and the New Mexico Finance Authority, Evidencing a Special Limited Obligation of the Governmental Unit to Pay a Principal Amount of No More Than $2,020,000, Together with Interest, Expenses, and Administrative Fees Thereon, for the Purpose of Financing the Costs of Construction of Electrical and Mechanical Upgrades, Specifically the Water Production Replacement of the Supervisory Controls and Data Acquisition System and Related Appurtenances of the Project; Providing for the Pledge and Payment of the Principal, Administrative Fees and Interest Due Under the Loan Agreement Solely From the Net Revenues of the Joint Utility System of the Governmental Unit; Setting an Interest Rate for the Loan; Approving the Form of and Other Details Concerning the Loan 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 Agreement.
Recommended Action
I move that the Board of Public Utilities approve Incorporated County of Los Alamos Ordinance No. 732; An Ordinance Authorizing the Execution and Delivery of a Loan Agreement (“Loan Agreement”) By and Between the Incorporated County of Los Alamos, New Mexico (the “Governmental Unit”) and the New Mexico Finance Authority, Evidencing a Special Limited Obligation of the Governmental Unit to Pay a Principal Amount of No More Than $2,020,000, Together with Interest, Expenses, and Administrative Fees Thereon, for the Purpose of Financing the Costs of Construction of Electrical and Mechanical Upgrades, Specifically the Water Production Replacement of the Supervisory Controls and Data Acquisition System and Related Appurtenances of the Project; Providing for the Pledge and Payment of the Principal, Administrative Fees and Interest Due Under the Loan Agreement Solely From the Net Revenues of the Joint Utility System of the Governmental Unit; Setting an Interest Rate for the Loan; Approving the Form of and Other Details Concerning the Loan 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 Agreement and forward to Council for Introduction and Adoption.
Utilities Manager Recommendation
The Utilities Manager recommends that the BPU approve this ordinance and forward to Council for introduction and adoption.
Body
The DPU has secured multiple Drinking Water State Revolving Loans (DWSRL) in recent years to complete important upgrades to the water production system. The loans are offered with an interest rate of 0.01% for twenty-year terms. These loan funds will be used to replace the existing water production Supervisory Controls and Data Acquisition System (SCADA) system. The SCADA system allows the water operators to monitor and control 45 remote sites which consist of tanks, booster stations and wells. The existing SCADA system was placed into service in the early 1990's. The existing system is a proprietary system with many features that are no longer supported by the vendor.
The project will include replacement of the existing microwave communications system with fiber optic lines that will be attached to existing overhead electric lines. The radio terminal units at 45 facilities will be replaced with new open-architecture process logical controllers (PLCs) that Los Alamos County staff will have the ability to program, troubleshoot, upgrade and manage the new SCADA system. A new master station, located at Pajarito Cliffs water operations control room, will be installed on a new operating system. The loan is scheduled to close in early July and staff will immediately begin to procure equipment for self-performed work and issue a request for proposals for support services that will be needed to complete the project.
Alternatives
If the ordinance is not approved, the loan funding will be lost. Staff will continue to pursue the project in the next budget year due to the risk of failure of the existing system.
Fiscal and Staff Impact/Planned Item
The project is included in the fiscal year 2025 water production capital budget in the amount of $2,020,000, paid for by a Drinking Water State Revolving Loan.
Attachments
A - Ordinance 732
B - DWSRL 6368 Loan Agreement
C - Pledged Revenue Certificate
D - General and No Litigation Certificate
E - Delivery Certificate and Cross-Receipt