Title
Approval of Resolution 22-16 Authorization to Apply To Water Trust Board 2023 Cycle
Recommended Action
I move that the Board of Public Utilities Approve Resolution 22-16 Authorizing Submission of an Application to the Water Trust Board for the 2023 Funding Cycle, and forward to Council for approval.
Utilities Manager's Recommendation
The Utilities Manager recommends that the Board approve as presented.
Body
The Department of Public Utilities (DPU) has chosen to apply to the New Mexico Finance Authority, Water Trust Board (WTB) in the 2023 cycle to fund the State Road 4 Water Transmission Line Replacement project. The project is estimated to cost $6 million. We plan to apply for $5 million from the WTB. We do not know the amount that will be awarded, but if successful we anticipate the award will have a 60% grant component, 40% loan component (20-year term @ 0.25% interest rate), and a required match of 20% of the awarded amount which would come from DPU water production capital funds.
The project is driven by the NMDOT's plans to reconstruct NM-4 between White Rock and the NM-502/NM-4 intersection in 2024. The existing 16" water transmission line is located along NM-4 roadway and has been experiencing leaks more frequently in recent years. The pipeline is concrete cylinder material which is difficult to repair and failures are extremely destructive. The new road will be widened placing a large amount of the pipeline beneath the new asphalt. The pipeline must remain in its current alignment as it must stay within an existing 25' easement. DPU had planned this waterline replacement project in near the future but will move it up to coordinate with the road construction to avoid the risk of damages if the line fails beneath the new road and the complexities of replacing the line after the road is widened. The DPU will partner with the NMDOT and construct the waterline as part of the road reconstruction project.
Alternatives
The resolu...
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