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Tucumcari commission approves additional $2.6 million grant to complete wastewater reuse Phase 1
Summary
The Tucumcari City Commission voted to amend Ordinance 11‑76 to accept a $2,616,917 grant addition that closes a funding gap and allows awarding the Phase 1 construction contract for the city’s wastewater reuse project.
The Tucumcari City Commission on March 2025 approved an amendment to Ordinance 11‑76 authorizing the city to accept an additional $2,616,917 in grant funding to complete Phase 1 of the wastewater reuse project.
City staff said the additional grant money will be added to an existing grant subsidy and fill the remaining shortfall so the city can award the construction contract. "This grant is necessary to complete the whole project. We didn't have enough to award it as is," Ralph Lopez said after being sworn to testify.
The commission discussed how the project had previously used a mix of loans and grants. Staff described the newly approved amount as an addition to the grant portion; earlier loan amounts remain in place. According to staff, a prior loan portion on the project is repaid from wastewater revenues; loan payments start one year after project completion and are expected to amortize over the projected life of the project (project representatives cited a typical 25–30 year lifetime and discussed using a 30‑year repayment schedule). Staff also said the loan portion carries 0% interest.
Commissioners asked about the amounts and timing. Staff explained Phase 2 of the reuse work is substantially complete and that Phase 1 had been delayed by funding shortfalls; the newly approved grant fills a roughly $2.67 million gap so Phase 1 can proceed. Staff also said a portion of the approved funds serve as contingency for change orders; unused contingency reverts against the grant amount per the grant terms.
Separately the commission approved the bids and contracts to begin Phase 1 construction at the meeting after the ordinance amendment was adopted.
The actions clear the way for the city to move from design and procurement into construction of Phase 1 of the reuse system, and staff said they will proceed with awarding the contract under the terms discussed in the meeting.
