Title
Incorporated County of Los Alamos Ordinance No. 698; 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 $800,000, 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 Replacement Effluent Booster Station at Overlook Park, and Solely in the Manner Described in the Loan/Grant Agreement; Providing for the Pledge and Payment of the Loan Amount and an Administrative Fee Solely From Net Revenues of the Water 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 introduce, without prejudice, Incorporated County of Los Alamos Ordinance No. 698; 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 $800,000, 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 Replacement Effluent Booster Station at Overlook Park, and Solely in the Manner Described in the Loan/Grant Agreement; Providing for the Pledge and Payment of the Loan Amount and an Administrative Fee Solely From Net Revenues of the Water 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 and ask staff to assure that it is published as provided in the County Charter.
Utilities Manager Recommendation
The Utilities Manager recommends that Council introduce the ordinance as presented.
Board, Commission or Committee Recommendation
The Board of Public Utilities recommends that Council introduce the ordinance as presented.
Body
This loan/grant will provide $800,000 for acquisition and installation of a new pump station at Overlook Park for use in pumping treated effluent from the White Rock Wastewater Treatment Facility for irrigation of the Overlook recreational facilities. The award is for a 40% loan and 60% grant with a required additional match by the County of 15% of the total award amount. This required match will come from approved Capital Improvement Project funding.
Ordinance No. 698 authorizes the execution and delivery of a Water Project Fund Loan/Grant Agreement and related documents by and between New Mexico Finance Authority and Incorporated County of Los Alamos for the purpose of design and construction of this project.
Note, draft documents were provided for LAC review and comments returned to NMFA Council for consideration on November 6, 2019. The most significant item was that the draft documents called for pledge of the revenues of “the Utilities System”, whereas only the revenues of the WATER Utility are being pledged. All other items were purely clerical. DPU Finance staff, the County CFO, and the County Attorney’s office reviewed the documents and concerns noted were addressed to the satisfaction of all. “Final” drafts of those documents have now been received back from NMFA. Due to deadlines for completing and uploading Board Agenda Docs, the draft documents were presented for Board consideration, and the motion allowed for any minor, non-substantive changes to be made before Council adoption of the ordinance. The attachments are now in final form for Council consideration.
.Alternatives
If Council chooses do to approve funding assistance from Water Trust Board for this non-potable water project the project will either have to be cancelled or postponed or direct funding from DPU resources would be required.
Fiscal and Staff Impact/Planned Item
Water Projects Fund $480,000 grant and $320,000 loan with zero percent interest and .25 percent administration fee for 20 years which will supplement additional funding amount of $120,000 from Department of Public Utilities Water Fund Capital project funding.
Attachments
A - Incorporated County of Los Alamos Ordinance No. 698
B - Loan Grant Agreement No. WPF-4826