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County seeks NMFA loan for Denver Steels waterline replacements; board endorses ordinance authorizing $2.7 million package
Summary
The Board of Public Utilities voted 5–0 to recommend Ordinance 7-41 authorizing a loan and subsidy agreement with the New Mexico Finance Authority to fund phases 2 and 3 of the Denver Steels waterline replacement project: a $2.727 million award with $625,000 as a grant and $2.102 million financed at 0.26% over 20 years.
The Board of Public Utilities unanimously recommended on April 16 that County Council adopt Ordinance 7-41 to authorize a loan and subsidy agreement with the New Mexico Finance Authority (NMFA) to finance phases 2 and 3 of waterline replacements in the Denver Steels neighborhood.
Philo Shelton, utilities manager, told the board the county is coordinating replacement of deteriorating cast-iron distribution lines and steel services in neighborhoods where public-works paving is also scheduled. “These lines are 1950s vintage cast iron and they have some steel service lines,” Shelton said. He explained that compacting roadwork can aggravate old lines and that pairing full waterline replacement with public-works street work reduces repeated disruptions.
The project award totals $2,727,000; $625,000 is a grant and $2,102,000 would be financed over 20 years at a 0.26% interest rate. Shelton said the NMFA loan terms remain favorable and that the county's public-works schedule aligns the bids and closings to allow construction to begin in summer with most work completed before winter weather.
Board members asked about schedule risk; Shelton said the timing is aggressive but achievable and that final loan closing and bid awards are being aligned with the county's fiscal year schedule. The board then voted to recommend the ordinance to council for introduction and adoption.
