By Mary Alice Murphy

[Editor's Note: The above workshop, in which the author spelled disaster rather than the way it was on the agenda in the first sentence below. This author remained for the morning sessions, but did not return for the afternoon sessions, due to other commitments. There will be a series of article on it]

The New Mexico Acequia Deisaster (sic) Recovery Workshop, which began at 9 a.m., February 22, 2023 at the Grant County Veterans Memorial Business and Conference Center, brought several state agencies together, in person and mostly virtually, to address funding for farmers to repair the damage to their ditches (acequias) back in August 2022. It was slated to last the entire day.

The first agency on the agenda was the New Mexico Department of Transportation, representatives of which actually drove down in person from Santa Fe. However, they did not arrive until two other agencies had spoken via Zoom.

Matthew Smith of High Water Mark LLC consulting firm served as moderator. "I was subcontracted as a consultant by NMAA (New Mexico Acequia Association). We have been asked to provide this training as we move toward reimbursement for repairs. We are here to assist you with the documentation gathering. Send me emails, contact me with any information you have."

Jonathan Martinez, the first agency speaker, represented the ISC (Interstate Stream Commission). "We have funding opportunities to help you. I am the acequia manager with the ISC. We have a cost share program to help acequias and ditches repair their infrastructure caused by the flooding damage."

He said the ISC is also working with DHSEM (New Mexico Department of Homeland Security and Emergency Management), the New Mexico Environment Department (NMED) and the New Mexico Department of Transportation (NM DOT). "We have match funding for you to use with the other agencies' funding. I know the DOT is anxious to get started clearing the debris and sediment out of your ditches."

[Editor's Note: The flooding as a result of the 2022 Black Fire burn scar happened in August 2022. The NM DOT had agreed to remove debris back in the fall of 2022, but somewhere in the bureaucracy, the funding was held up. The funding finally was secured through the efforts of Lt. Gov. Howie Morales and Sen. Siah Hemphill THIS week—$375,000. A contractor has already been chosen, J P Romero of Cordova Contracting and Development LLC. With funding secure, the debris removal is set to begin Feb. 27, 2023, more than six months after the flooding. By the way, irrigation of fields in the Gila and Mimbres valleys generally begins in March every year, but the DOT in a later article said it would take six to eight weeks to complete the work.]

Martinez said the ISC has been working with the Grant County Soil and Water Conservation District to get funds to them for the repairs, "but that may not be part of the original scope of work, which is to repair only."

He said the local soil and water conservation district has also, through Dusty Hunt of the GCSWD and Debbie Hughes, director of the NMACD (New Mexico Association of Conservation Districts), said they were open to reaching out to other neighboring districts.

"We do have funding for improvements," Martinez said. He said he understood what will happen over the next several years. The August flood will not be the only flood. Flooding will continue for quite a few years. It is not a good idea to put in new infrastructure when flooding may come in the future. Once things settle down and the soil is more stable, reach out to us to improve your infrastructure."

To qualify for the funding for repairs, the main thing is the organization must be a community ditch or acequia, a subdivision per state statute. "We cannot fund a private ditch. You must also have a community ditch bank account, a federal EIN (employer identification number) and bylaws. Other agencies will be your fiscal agent."

Southwest New Mexico Council of Governments Executive Director Priscilla Lucero asked Martinez to talk about the requirements for compliance with the Governor's executive order, which opened up the funding.

Martinez said the ditches that have $50,000 or more in their budget must comply with requirements. "Former Gov. Susanna Martinez required all budgeting to be in compliance with the Department of Finance and Administration, as well as in auditing compliance with the State Auditor."

He noted that those ditches with $50,000 or less do not have to report to the DFA, because their revenues are typically dues from the lateral ditch owners. 'But, even if it is less than $10,000, they still must send the report to the State Auditor, and it will require compliance all the way back to 2010. Tier 1 compliance is for those up to $10,000. Tier 2 compliance is for those with $10,000 to $50,000. Once you receive funds from the state, you move to Tier 3 or higher compliance."

He said a mini-audit would be done to make sure that the funding is property utilized per the procurement law. "It has to go through a certified CPA for $1,500-$2000. If a ditch receives capital outlay or ISC funding, they must report it. I'm not sure if the DHSEM has different rules."

Lucero said she worked with the acequias and has submitted capital outlay requests for them. "If you are not compliant," she said to the ditch owners, "you will need a fiscal agent, which can either be the county or myself, the COG. We are both certified to be fiscal agents. I serve as fiscal agent for many organizations. Don't panic, the money goes to the acequias, but I have to sign off that the proper procedures are done. Let's get on a schedule to make sure that you are ready on an annual basis, so you're always ready to receive money. We can help you with the paperwork."

She also asked about the governor's allocated $375,000. "It must go to Homeland Security first and can only be used for debris removal. Is there any other funding that can be used for repairing headgates?"

Martinez said the ISC funding can be used on any kind of infrastructure on the ditches. Capital outlay requires the ditch to be in compliance. The ditch won't get any more funding. unless it is in compliance. "We will send out emails to fill out the bond questionnaire. Most fundings are funded through severance bonds. Get compliant as soon as possible. Reach out to the State Auditor's office. In order to make the June bond sale you have to be compliant."

Lucero warned the ditch owners. "If you have never filled out a bond questionnaire, do not fill it out on your own. Reach out to me or Kristy Ortiz. I emphasize, you must reach out to one of us. Do not fill it out on your own. We don't want to jeopardize your receiving the funding."

Martinez said: "We review all the questionnaires. We, too, can help. The NMAA also helps with Office of the State Auditor compliance."

Lucero said: "We want to be as helpful as we can. We are at the local level for you."

Autumn Bruton, ditch user, said she lives in Gila. "In preparation for potential capital outlay, I understand that it is a 10 percent match for the 90 percent award. What is the timeline to be in compliance, which I'm sure we have not done."

Martinez recommended they work on compliance now, so it is done by the end of March. "So, it's done by then, and the ditch gets the money, everything will be in place for the June bond sale. Once in compliance, you need to renew the compliance very year. You have five months after the end of your fiscal year, which should be the calendar year in your case, to re-qualify."

Bruton asked about infrastructure improvements. "Does the funding include design and expert design help?"

Martinez replied that the ACDIF program funding includes infrastructure planning and design. He said the information is on the OSE (office of the state engineer)/ISC website. "We also provide engineering assistance and offer construction funding at a 100 percent match. I think it's up to $50,000 for engineering assistance and up to $250,000 for infrastructure construction. We have a team of three people to help you."

Anthony Gutierrez, water issue consultant, said the following day, the ISC would consider its budget, including matching funds. "Is there an application for the ISC to distribute funding?"

Martinez said they did not have an application process. "We are just reaching out. The money for the DOT was approved by our commission in January. We asked for $500,000 for disaster issues. It was pointed out to us that it wasn't enough, so we are requesting an additional $1.5 million. We're trying to figure out the best way to get the emergency funding on the ground. I suggest you contact Dusty or Debbie. The DOT said it was still lacking about $300,000."

Frances Penvenne of the Heredia Ditch in the Mimbres asked if the ISC would match NRCS (Natural Resource Conservation Service) funding. "It requires a 25 percent match."

Martinez said he thought they might be able to match. "Is it for recovery or improvements?"

Penvenne said it is for a private ditch. "We might need to add on to it. We lost a lot of bank."

Martinez said he would be happy to talk to her about it.

Penvenne asked if capital outlay requires a completed engineering plan.

Martinez said to qualify for funding, it needs to be project ready.

Lucero said when she applies for capital outlay funding, the request includes generic language for planning, design, construct and furnish. "So, you are covered."

The next article will get into the advice from the NMAA.