1. Call to Order and Roll Call. 2. Approval of Agenda. WATER TRUST BOARD, 9:00 a.m. New Mexico State Capitol, Room 309 490 Old Santa Fe Trail, Santa Fe, New Mexico Teleconference Information: Dial Toll-Free 1-866-906-9888 Conference Entry Code 1428471# AGENDA 3. Approval of Minutes from the April 11, 2018, Meeting. 4. Consideration and Recommendation of 2018 Water Project Fund Awards Marquita Russel, Chief of Programs, Michael Vonderheide, Director of Water Resources and Angela Quintana, Senior Program Administrator 5. Consideration and Approval of Resolution, Notification and Certification of Need for Issuance of Severance Tax Revenue Bonds for Qualified Projects - Bryan Otero, Assistant General 6. Proposed 2019 Application Cycle Timeline Angela Quintana, Senior Program Administrator 7. Public Comment. 8. Next meeting: 9. Adjourn. Direct any questions concerning the agenda or the meeting to: Angela Quintana, Senior Program Administrator New Mexico Finance Authority 207 Shelby Street, Santa Fe, NM 87501 Phone: (505) 992-9648; E-mail: WTBAdmin@nmfa.net
New Mexico Finance Authority 207 Shelby St. Santa Fe, NM 87501 (505) 984-1454 Members Present:.. Tom Blaine, Chairman James Comins III William Fulginiti, Vice Chair Nina Chester Zach Dillenback Joy Esparsen Debra Hughes, Treasurer Judi Kahl -. Julie Maitland Timothy McGinn, telephonically Debbie Romero Matthias Sayer Minutes of the Meeting State Capitol, Room 309, Santa Fe, NM New Mexico State Engineer New Mexico Department of Game and Fish Designee New Mexico Municipal League Executive Director Navajo Nation Designee New Mexico Finance Authority Designee New Mexico Association of Counties Designee Environmental Community Representative New Mexico Environment Department Designee New Mexico Department of Agriculture Designee Irrigation/Conservancy District-Ground Water Representative New Mexico Department of Finance & Administration Designee New Mexico Energy Minerals Natural Resources Department Designee Members Absent: Greg Alpers Richard Luarkie Robert Baracker Brent Van Dyke Irrigation/Conservancy District-Surface Water Representative New Mexico Indian Affairs Department Representative Acequia Water Users Representative Soil and Water Conservation Districts Representative New Mexico Finance Authority Staff: Michelle Harding, Administrative Assistant Frank Ibarra, IT Systems Analyst Charlotte Larragoite, Water Resources Admin. Bryan Otero, Assistant General Counsel Guests: Leonel Chacon, Ancones Mutual Domestic Water & Wastewater Consumers Assn. Marc DePauli, DePauli Engineering Claudia Diaz, Wilson & Company Rachel Garcia, Molzen-Corbin Ramon Lucero, Souder Miller & Associates Stacy Maestas, Ancones Mutual Domestic Water & Wastewater Consumers Assn. Larry Perkins, Canadian River Soil & Water Conservation District Hector Rangel, City of Sunland Park Angela Quintana, Senior Program Administrator Marquita Russel, Chief of Programs Michael Vonderheide, Director of Water Resources Dennis Romero, City of Gallup Jonah Ruybalid, Molzen-Corbin John Stomp, Albuquerque Bernalillo County Water Authority Dierdre Tarr, Claunch-Pinto Soil & Water Conservation District Marcos Valdez, East Rio Arriba Soil & Water Conservation District Norman Vigil, New Mexico Association of Conservation Districts
1. Call to Order and Roll Call. Acting Chairman William Fulginiti called the ("WTB") meeting to order at 9:06 a.m. Roll call was taken and a quorum was established. 2. Approval of Agenda. Ms. Joy Esparsen made a motion, seconded by Ms. Alexandra Sandoval, to approve the Agenda. The motion passed unanimously on voice vote. 3. Approval of April 11, 2018, Board Minutes. Ms. Debbie Hughes made a motion, seconded by Ms. Debbie Romero, to approve the minutes of the April 11, 2018, meeting. The motion passed unanimously on voice vote. 4. Consideration and Recommendation of 2018 Water Project Fund Awards. Marquita Russel, Chief of Programs, Michael Vonderheide, Director of Water Resources, and Angela Quintana, Senior Program Administrator, gave an overview of the 2018 application cycle timeline and activities, and presented the funding recommendations as reviewed and recommended by the WTB' s Project Management Team ("PMT"). The Water Project Finance Act provides that the New Mexico Finance Authority ("NMFA") make loans and grants to projects recommended by the WTB and authorized by the New Mexico Legislature. Similar to the 2016 and 2017 application cycles, the 2018 process consisted of two phases, an initial Project Application in the fall, and a Readiness Application in the Spring. The NMF A received 68 Notices of Intent from potential applicants. On October 3, 2017, 73 applications were filed with requests totaling more than $72.4 million. Four of the applications were deemed ineligible and two were deemed incomplete due to incomplete or lack of required planning documents. The remaining applicants were given an opportunity to present their projects to the WTB on October 24, 2017. The WTB also considered requests for waivers at the October meeting. Seven applicants submitted waiver requests for Board consideration, including 6 requests for waiver of the Preliminary Expenditure Target, and another request for waiver of the planning document. The Board denied all of the waiver requests. However, upon formal request for reconsideration by Eastern New Mexico Water Utility Authority ("ENMWUA") and the City of Gallup, the Board reconsidered and approved both requests at its November 29, 2017, meeting. Twenty-nine applications were recommended for legislative authorization and invited to submit Readiness Applications in the second phase of the application cycle. Twenty-two of those applicants submitted Readiness Applications by the deadline of January 25, 2018. Applicants with regulatory or policy compliance issues were notified on February 27, 2018 of the need to either meet compliance or submit a request for waiver in order for their applications to continue in the review process. Four applicants submitted waiver requests, which were approved at the WTB meeting on April 11, 2018. One applicant, Valley Estates Mutual Water and Sewer Association, did not submit a waiver request and did not meet regulatory compliance, which caused its application to be removed from consideration for funding. During the 2018 Legislative Session, the Legislature passed and Governor Susanna Martinez signed House Bill 306 directly appropriating $5.825 million from the Water Project Fund to other projects. Page 2
This action left an estimated $17.7 million distribution from Severance Tax Bonds for 2018 water project funding. The net total of $17.305 million available for WTB funding is comprised of $17.7 million from Severance Tax Bonds, plus $8 million from the 2017 and 2018 Water Trust Fund distributions, less 10% to the Office of the State Engineer for adjudication, and less the direct appropriation of $5.825 million (HB306). The maximum amount a single project can receive is 15% of the available funding total, or approximately $2,595,750. The PMT met on April 23, 2018, to evaluate the applications and recommended 14 projects for funding. On April 24, 2018, the City of Carlsbad formally removed its water conservation application from funding consideration. NMF A staff recommends the City of Clovis' water conservation project as a replacement, which does not affect the policy targets. The Project Review Committee reviewed the PMT proposed funding list without recommendation as there was not a quorum at the May 3, 2018 PRC meeting. The PMT recommends that the projects on the spreadsheet be presented to the for funding from the Water Project Fund. Applicants, whose funding requests were over the maximum amount allowed, were asked to provide phased projects. If funded, updates on the project scope, budget and cost estimates will be required. Staff provided the following PMT recommendations and information for the Board's consideration: F d. S un mg ummary: Project Category Type Policy Targets Funding Requested # of App Total Adjusted Flood Prevention Up to 10% 3 $2,481,500 Water Conservation or Treatment, Recycling or 15% - 30% 5 $5,392,805 Reuse Water Storage, Conveyance and Delivery Watershed Restoration and Management 50%- 75% 10 $16,259,931 10% to 20% 3 $2,066,800 TOTAL 21 $26,201,036 Recommended Funding # of App Total Amount % 1 $1,681,500 10% 4 $3,392,805 20% 6 $10,163,895 58% 3 $2,066,800 12% 14 $17,305,000 100% F un d. mg R ecommen d a f ions: App ID Applicant County Project Name Scope Amount Requested Amount Recommended Flood Prevention Projects WPF-4340 WPF-4368 WPF-4356 Columbus, Village of Sunland Park, City of Upper Rio Grande Watershed District Luna Dona Ana Rio Arriba Altura Avenue Ph II Anapra Phase 11 Correcting Flood Control Structures Plan, Design Engineering $ 1,681,500 $ 1,681,500 $ 500,000 $ 300,000 Page 3
Water Conservation or Treatment, Recycling or Reuse Projects WPF-4369 Chama, Village of Rio Arriba WPF-4360 Clovis, City of Curry WPF-4381 Jal, City Lea WPF-4320 Trampas MDWCA Taos Treatment Plant Effluent Reuse Project Jal Lake Wells Project Water Treatment Project Water Storage, Conveyance and Delivery Projects WPF-4326 Eastern New Mexico WUA Curry ENMRWS 2018 WPF-4318 Portales, City of Roosevelt Water Storage $ 663,000 $ 663,000 $ 1,900,000 $ 1,900,000 Design, Engineering, $ 580,000 $ 580,000 Design Design $ 249,805 $ 249,805 $ 2,900,000 $ 2,493,379 $ 2,231,785 $ 2,231,785 WPF-4325 Canoncito at Apache Canyon MDWCA Santa Fe WPF-4338 Gallup, City of McKinley WPF-4351 Elida, Town of Roosevelt WPF-4329 Ancones MDWWCA Rio Arriba Ph 2 Navajo Gallup Waterline, Proj 9, Reach 27.9 Water Transmission Line $ 1,632,000 $ 1,632,000 $ 2,900,000 $ 2,493,379 $ 678,625 $ 678,625 $ 634,727 $ 634,727 Los Padillas Water Albuquerque WPF-4323 Bernalillo System $ 1,400,000 Bernalillo Co WUA WPF-4358 Garfield MDWC & Dona Ana $ 2,900,000 MSWA WPF-4336 Alcalde MDWCA Rio Arriba $ 305,000 Plan, WPF-4371 Carrizozo, Town of Lincoln Design, $ 677,794 Watershed Restorati on and Management Projects WPF-4383 Sierra SWCD Sierra Plan, Tiffany Fire Design, Rehabilitation Surveying $ 466,800 $ 466,800 Estancia Basin WPF-4361 Claunch-Pinto SWCD Torrance Watershed Health, Design Restoration and $ 600,000 $ 600,000 Monitoring Project Building Resiliency WPF-4327 East Rio Arriba in the Rio Chama I Rio Arriba SWCD San Juan Watershed $ 1,000,000 $ 1,000,000 Exceeds the Policy 15% CAP = $2,595,750 $ 24,201,036 $ 17,305,000 Ms. Kahl made a motion, seconded by Ms. Hughes to approve the list of recommended projects as presented. The motion passed unanimously on voice vote. Page 4
5. Consideration and Approval of Resolution, Notification, and Certification of Need for Issuance of Severance Tax Revenue Bonds for Qualified Projects. Bryan Otero, Assistant General Counsel, presented a Resolution, Notification and Certification of need for issuance of severance tax revenue bonds for qualified projects for the Board's consideration and approval. Ms. Romero made a motion, seconded by Ms. Hughes, to adopt the Resolution, Notification, and Certification of need for issuance of severance tax revenue bonds for qualified projects. The motion passed unanimously on voice vote. 6. Proposed 2019 Application Cycle Timeline. Angela Quintana, Senior Program Administrator, presented a 2019 proposed Application Cycle Timeline. [Chairman Tom Blaine arrived 9:27 a.m.] 2019 Water Project Fund Application Cycle Timeline July/ August August TBD August September August 6-27 September 5 - October 4 September 18 September 26 October 4 October 9 - November 2 October 18 October 23-24 November 2 November 8 Policy Committee Meeting Meeting 2019 WTB Application Training Notice of Intent Period 2019 Application OPENS WTB PRC Meeting Meeting 2019 Application CLOSES; Preliminary Spend Down Application Evaluations WTB PRC Meeting Meeting ( all day meeting) Application Evaluations PMT - Recommendations Policy changes for 2019 WTB application cycle Policy Recommendations NMF A staff training sessions for 2019 WTB application cycle Applicant Notice oflntent to Apply due to WTBAdmin NMF A.net Online Application Opens September 5, 2018 Recommendation on RTP Extensions; Recommendation on Time Extensions Consideration ofrtp Extensions; Consideration of Time Extensions Online Application Closes October 4, 2018; Deadline for preliminary spend down, and/or submittal of waiver request (planning docs; preliminary spend down) Technical Evaluation of Applications Waiver recommendations Project Presentations Consideration of Waiver Requests Technical reviewer scores due Legislative authorization recommendations Page 5
Date* Activity Task November 14 WTB PRC Meeting Legislative authorization recommendations Approval of projects recommended for November 28 Meeting Legislative Authorization; Notice to applicants of Readiness Application December 3 December 12 2019 January 24 January 30 - February 22 February 27 NMF A Oversight Committee Meeting Readiness Application OPENS Legislative Authorization project list presentations Online Readiness Application OPENS December 12, 2018 2019 Legislative Session (January 15 - March 16, 2019) Online Readiness Application CLOSES Readiness Application CLOSES; January 24, 2019 Project Spend Down Deadline Deadline for project drawdown and/or submission of project continuation waiver Technical Compliance Review Non-Compliance Notifications PMT compliance review Applicants notified of non-compliance items (pass/fail) Deadline to meet regulatory compliance March 14 Regulatory Compliance Deadline requirements, or to submit requests for waiver of regulatory compliance Preliminary Funding Recommendations March 26 Project Management Team Meeting Regulatory/Policy compliance recommendations April 3 WTB PRC Meeting Recommendations for Waiver Requests April 10 April 23 Meeting Project Management Team Meeting Board Business Waiver Requests Consideration Final scope and funding recommendations May2 WTB PRC Meeting Funding recommendations May8 Meeting Final funding recommendations to NMF A Board of Directors May23 NMF A Board Meeting Final Approval of WTB A wards May28 A ward/readiness to Proceed *Please Note: Dates are subject to change. Send award letters outlining Readiness to Proceed items required to secure funding. Ms. Quintana noted that two days have been reserved for applicant presentations, depending upon the number of applications received. Staff will provide training for the 2019 Application Cycle Information/Training sometime in the Fall. Page 6
[Mr. Bill Fulginiti left the meeting 9: 3 6 a. m.] The Board was asked to let staff know if there are any conflicts with these tentative dates. Ms. Esparsen said that October 24, 2018, is the first day of the Infrastructure Finance Conference which would affect engineers, architects, and certain Board members. Chairman Blaine thanked staff for their hard work and managing the timelines. He asked if April 23 to May 2 would provide enough time to prepare the project recommendation package for the Water Trust Board. Staff assured the Chairman that there will be sufficient time as a smaller list of applications is expected. 7. Public Comment. Mr. Larry Perkins from the Canadian River Soil and Water Conservation District, requested help or guidance from the Board to close the District's project, specifically regarding payment of the fiscal agent fees. The Board discussed the policies surrounding fiscal agent fees, and Mr. Perkins was directed to speak with Ms. Angela Quintana ofnmf A. Ms. Hughes also offered to assist the District. 8. Next meeting. TBD 9. Adjourn. Ms. Sandoval made a motion to adjourn, seconded by Ms. Hughes. The meeting adjourned at 10:03 a.m. State Engineer Tom Blaine, Chairman L ~- '7 / _,--'t,t:?/,ij Date: :;;,,e:-.. "'" --~----- - -------- Page 7