Title
Introduction of Ordinance No. 722 Authorizing the Execution and Delivery of a Water Fund Project Loan/Grant Agreement for Construction of Phase II of the Bayo New Non-Potable Water Tank and Existing Tank Upgrades.
Recommended Action
I introduce without prejudice Ordinance No. 722 Authorizing the Execution and Delivery of a Water Fund Project Loan/Grant Agreement for Construction of Phase II of the Bayo New Non-Potable Water Tank and Existing Tank Upgrades
Utilities Manager's Recommendation
The Utilities Manager recommends that Council introduce Ordinance No. 722.
Board, Commission or Committee Recommendation
The Board of Public Utilities approved Ordinance No. 722 at their regular meeting of November 16, 2022 and recommends that Council introduce Ordinance No. 722.
Body
Ordinance 722 will authorize the Department of Public Utilities (DPU) to execute the attached loan/grant agreement to construct phase II of the new Bayo non-potable water tank and construct improvements to the existing storage tank. The New Mexico Finance Authority (NMFA), through the Water Trust Board (WTB) has awarded the DPU a grant in the amount of $2,190,000 and loan in the amount of $1,460,000 (0% interest, 0.25% annual fee, 20-year term) in the 2022 funding cycle. As a condition of the award the DPU must match $400,000 to the cost of the project.
DPU received a loan/grant from the NMFA/WTB in 2020 in the amount of $900,000 for the project. Inflation from the time of submitting the application to the time of award caused the price of the project to more than double, so the project was split into two phases. The 2020 award was used to fund Phase I of the project which consists of the site piping, metering and miscellaneous site improvements to accommodate the new tank. The 2022 award will fund Phase II of the project which will complete the new tank and make improvements to the existing open top tank. The storage will be increased from 190,000 gallons to 1,000,000 gallo...
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