County of Los Alamos - File #: OR0948-22a

• File #: OR0948-22a
• Version: 1
• Type: Ordinance
• Status: Public Hearing
• File created: 6/27/2022
• In control: Board of Public Utilities
• On agenda: 7/6/2022
• Final action: 7/6/2022
• Title: Approval of Recommendation to Council to incur the debt obligation as outlined in the attached draft Ordinance No. 720 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 up to $25,000,000 plus accrued interest; designating the use of the funds for the purpose defined in the most current project description form 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 for that purpose.
• Presenters: James Alarid; Heather Garcia
• Indexes (Council Goals): * 2022 Council Goal - Investing in Infrastructure, DPU FY26 - 1.0 Provide Safe and Reliable Utility Services, DPU FY26 - 2.0 Achieve and Maintain Excellence in Financial Performance
• Related files: OR0948-22

Title

Approval of Recommendation to Council to incur the debt obligation as outlined in the attached draft Ordinance No. 720 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 up to $25,000,000 plus accrued interest; designating the use of the funds for the purpose defined in the most current project description form 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 for that purpose.

Recommended Action

I move that the Board of Public Utilities recommend Council incur the debt obligation as outlined in the attached draft Ordinance No. 720, in a form acceptable to the County Attorney’s Office.

Utilities Manager Recommendation

The Utilities Manager recommends that the board approve the motion as presented.

Body

The Clean Water State Revolving Loan CWSRF #110 will be replacing Loan CWSRF #083. NMED has agreed to reduce the original 2.38% interest rate down to 0.01%, resulting in significant savings.

The Clean Water State Revolving Loan CWSRF #083 was executed on April 12, 2019, through Ordinance No. 687, approved on October 30, 2018, amended by Ordinance No. 689, approved on February 19, 2019, and amended by Ordinance No. 712, approved on November 9, 2021. Loan CWSRF #083 funds the design and construction of a replacement wastewater treatment plant in White Rock, New Mexico. The existing plant is an antiquated trickling filter plant that was constructed in 1966 and is at the end of its useful life. The loan amount is a maximum of $30 million, plus accrued interest.

Loan CWSRF #083 will be closed out with a projected balance of $6.5 million. Approval of Ordinance No. 720 is the first step to f...