By Mary Alice Murphy
Alex Brown, Town of Silver City manager and chairman of the Grant County Water Commission, at the group's meeting last Thursday afternoon, called on Gary Berg of Engineers Inc. for an update on the regional water project.
The project will connect wells near the Grant County Airport, utilizing water rights owned by Silver City, to provide water to Hurley, which at present has no water of its own, and by extension through Bayard, Santa Clara and all the way back to Silver City to provide supplemental water as needed to the municipalities and water associations along the way.
"We've been doing some work near the airport," Berg said. "We have an access ramp pushed to drill the west test well. This week we should get the specifics, then get quotes from drillers. I expect drilling by the end of the month."
"What about the environmental statement?" Brown asked. "We will need it to go to application for USDA funding." Berg replied it would be completed as soon as possible.
Priscilla Lucero, Southwest New Mexico Council of Governments executive director reported that on a recent trip to Santa Fe, "I got a strange call from a man in Colorado. He had been referred to me by a former state engineer and another engineer in Albuquerque. He told me he was currently working with the Ute Project in the Clovis area. He wanted to learn more about this project and possibly develop a public/private partnership, which he was doing in other states for infrastructure projects."
She said she, the man and Brown had a conference call to give him additional background.
"He visited Silver City to learn about who we were and how viable the project was," Lucero continued. "I think he was impressed with our years of collaboration. He wanted to get affirmation about whether we were interested in the partnership. I think we are always interested in looking at opportunities for funding all our projects. He was not willing to tell us the names of his investors. I think we need to look at the opportunity. A public/private partnership may be a new way to fund infrastructure. It may be new to us, but it may be something to look at. He spent about an hour with us. He talked about the list of 60 projects and that the group was starting to whittle down the list. It felt good that we were still on the list."
She said he was going back to talk to his investors and back to his pipeline company. "I will provide the preliminary engineering report to him. He wants to come up with a pilot project."
Commission member Bayard Mayor Charles Kelly asked if the group had worked with local governments.
"We don't know. Investors are willing to loan money," Brown said. "We're going to look at all avenues, but going after 'free' money first. We're talking to everyone. We won't move forward without all of you at the table."
Lucero noted that the man said: "we were so much better prepared and knowledgeable than other groups."
"He was excited we could answer all his questions," Brown agreed.
Lucero said something the man said made them think his investors might be international and could benefit with visas by their monetary participation.
Commission member Santa Clara Mayor Richard Bauch asked if the process had been done before and whether it would be legitimate in New Mexico.
Brown said the man was working in different states with different rules and was working his way through them.
"The district engineer called me, asking me about Silver City not wanting to work with Hurley, as he had heard," Brown said. "I told him our water rights at the airport are for the regional project. I was not sure how giving up the recharge credits would affect the water rights. He said he thought it could be done through a contractual obligation. I hope that by November we can provide that information if we are going after USDA or Colonias funding. We are working to get answers and remembering funding deadlines."
Lucero said the next Colonias deadline was likely to be mid-December. "We need to be talking about whether this group or you individual entities will apply."
Member and Hurley Mayor Edward Encinas said the loan component is hard on his town. "We have to look at what we can afford."
Lucero said at the latest Colonias Board Advisory Committee meeting the group was hit with the non-expenditure of funds. "You really can't complain about a 10 percent loan, but you can request a waiver, although the chairman was not willing to do any award without a loan component. You have to have a 10 percent match, unless you can tell the board how much you have as a match. You will have to have a strong financial disadvantage. Budget analysts will know if you have the capacity for the match or to repay a loan."
Brown suggested Lucero talk to the Interstate Stream Commission to see if it would be willing to allow the area to use its $2.1 million allocation for the regional water project to pay off loans or to match other grants.
Lucero noted that some of those at the table have loans for each funding cycle. "I suggested combining the loans, but was told that Colonias could not combine different funding cycle loans. It is impossible to pay them off early, so it puts a financial burden on smaller entities." She also said those who have USDA grants with a loan component must get permission from the USDA before accepting a loan through the New Mexico Finance Authority. "It's in the agreement."
Discussion continued on moving the project forward. The chairman of the Colonias Infrastructure Fund had indicated that USDA and Border Environmental Cooperation Commission members would also be at the table to hear Colonias project proposals.
Donna Maestas of the NMFA told the commission members Colonias was likely the best avenue for funding the regional water project.
Brown gave a brief description of the project, for which the preliminary engineering report for the completed project is finished. He estimated $19 million additional funding needs to be secured to complete the project.
Maestas also talked about recent changes in rules. Those entities that already participate in Local Economic Development Act processes are eligible to receive 100 percent grants for economic development planning from the Metro Redevelopment Act and urgent needs processes. They are part of the Local Government Planning Fund.
The next meeting is set for 3 p.m. Thursday, Sept. 17, at Santa Clara Town Hall.