Council adopts $2.727M NMFA loan and subsidy for Denver Steels waterline replacement (phases 2–3)

The Los Alamos County Council unanimously adopted an ordinance authorizing execution of a loan and subsidy agreement with the New Mexico Finance Authority (NMFA) for $2,727,000 to fund phases 2 and 3 of the Denver Steels waterline replacement project.

Financing details: The ordinance authorizes a $2,727,000 package composed of a loan amount of $2,102,000 and a subsidy/grant of $625,000 for a 20‑year term. Staff reported a 0.26% interest rate for the loan component during the presentation.

Project scope and public‑health rationale: County staff explained the work will replace aging distribution mains — including lines with lead joints — by installing new PVC mains, leaving the old, lead‑joint pipes abandoned in place after services are switched over. Staff said the replacement is intended to improve water quality and extend service life.

Coordination and scheduling: Staff told council that phase 2 is planned for fiscal years 2026–27 with construction beginning in spring 2026. The county indicated the sanitary sewer within the roadway would also be replaced where necessary and that public works will coordinate placement of conduit in the ditch so fiber could be co‑installed when practical.

Public outreach and alternatives: Presenters said staff have met with residents, held public meetings and open houses to gather input and answer utility questions. Councilors asked about alternatives to full replacement; staff said the age and lead joints make full replacement the preferred option.

Council action: A councilor moved adoption of ordinance 7‑41 authorizing the NMFA loan and subsidy; the motion was seconded and passed on a roll call vote, 7–0.

Ending: Staff will continue coordination with residents and utility teams and proceed with project design and procurement consistent with the adopted financing plan.