Title
Incorporated County of Los Alamos Ordinance No. 731, an Ordinance Authorizing the Incorporated County of Los Alamos (Borrower) to Enter Into a Loan Agreement With the New Mexico Environment Department (NMED) for the Purpose of Obtaining Project Loan Funds in the Principal Amount of $800,000 Plus (0.01%) Accrued Interest; and Loan Subsidy Grant Funds in the Amount of $200,000 for a Total Funded Amount of $1,000,000; Designating the Use of the Funds for the Bayo Non-potable Booster Station Refurbishment As Approved by NMED; Declaring the Necessity for the Loan; Providing That the Loan Will Be Payable and Collectible Solely From the Borrower’s Pledged Revenues Defined Below; Prescribing Other Details Concerning the Loan and the Security Therefore
Recommended Action
I move that Council adopt Incorporated County of Los Alamos Ordinance No. 731, an Ordinance Authorizing the Incorporated County of Los Alamos (Borrower) to Enter Into a Loan Agreement With the New Mexico Environment Department (NMED) for the Purpose of Obtaining Project Loan Funds in the Principal Amount of $800,000 Plus (0.01%) Accrued Interest; and Loan Subsidy Grant Funds in the Amount of $200,000 for a Total Funded Amount of $1,000,000; Designating the Use of the Funds for the Bayo Non-potable Booster Station Refurbishment As Approved by NMED; Declaring the Necessity for the Loan; Providing That the Loan Will Be Payable and Collectible Solely From the Borrower’s Pledged Revenues Defined Below; Prescribing Other Details Concerning the Loan and the Security Therefore;
I further move that, upon passage, the Ordinance be published in summary form.
Utilities Manager Recommendation
The Utilities Manager recommends that Council adopt this ordinance as presented.
Board, Commission or Committee Recommendation
The Board of Public Utilities approved Ordinance No. 731 at their regular session on March 20, 2023 and recommends that Council adopt as a presented.
Body
Ordinance 731 will authorize the Department of Public Utilities (DPU) to execute a Clean Water State Revolving Loan (CWSRL) in the amount of $800,000 with a $200,000 subsidy grant. The loan and grant will fund the refurbishment of the existing Bayo Booster Station located adjacent to the composting facility in Pueblo Canyon. The booster station pumps treated effluent from the Los Alamos Wastewater Treatment Plant to a tank at the Los Alamos Middle School for irrigating the golf course and North Mesa ball fields. The booster station has been in service for 32 years. The work will include various mechanical and electrical upgrades which include a new disinfection system, motor control center, electric gear, valves, air relief /vacuum valves, instrumentation & controls and miscellaneous antiquated features in need of replacement. Design of these improvements will take place this spring and construction will take place the winter and spring of 2025. The Bayo Non-Potable Booster Station is the single means to pump effluent into Los Alamos and this rehabilitation effort will prepare the facility for many years of reliable operation.
Alternatives
If the Ordinance is not approved the award of the loan and grant will be lost.
Fiscal and Staff Impact/Planned Item
The $1,000,000 award will fund the construction of this planned project which is budgeted in FY2025. Revenues from the joint utility systems will be pledged to secure the loan.
Attachments
A - LAC Ordinance No 731- NMED
B - Ordinance 731 Project Description
C - Publication Notice