The Truth or Consequences City Commission has a packed agenda with several important items on August 12, starting at 9 a.m.
PUBLIC HEARING: CITY LAND SALE IN HOT SPRINGS DISTRICT
Nearly a year ago Truth or Consequences Zoning Official Traci Alvarez and City Manager Morris Madrid presented an ordinance to sell six lots in the Hot Springs District to Claudea and Kevin DePalma for $26,000.
State law requires city-owned public property be appraised by an independent appraiser. This was done, and the appraisal came out to $26,000.
State law also requires the land sale be done by ordinance, which in turn requires the land sale go to a public hearing.
The City never held a public hearing on the land sale a year ago because the Sierra County Sun produced a deed for the property that refuted Madrid’s, Alvarez’s and City Attorney Jay Rubin’s assertion that the City acquired the land through a condemnation process.
On the agenda for the August 12 meeting is the same ordinance as last year’s stating the land was acquired through a condemnation process.
The deed, attached to this article, shows J.A. Hodges gave the land to the City for “consideration paid,” with the stipulation it be used for recreational purposes and a plaque be erected recognizing J.A. Hodges.
Alvarez’s cover memo to the City Commission states they put off the hearing on the land sale “because we discovered an issue with respect to the title. We filed a petition in District Court and successfully resolved the issue.”
Alvarez does not include the City’s petition or the judge’s ruling in the City packet.
Therefore, the City Commission, with three new members seated in the intervening year, as well as the public, are not informed of the deed stipulating the land is to be used for recreation and how this requirement was done away with to allow sale of the land to a private owner.
It is also not known if hot springs water lies beneath. The appraisal done over a year ago does not include this line of inquiry. If the hot springs water is available, it would increase the value of the land.
The land sale has also not been opened up to other bidders. If the City does sell the land to the DePalmas, it will be based on their single offer.
PUBLIC HEARING: NEW MONEY AND REFINANCING OLD DEBT COMES TO $2.33 MILLION
The City Commission will consider whether to refund and refinance $1.2 million from a 2009 debt and whether to add about $1.12 million more in new debt to fund unnamed projects.
The loans come to more than $2.3-million principal debt.
The City Commission packet does not include the debt schedule for either the refunding/refinancing loan or the “new money” loan. Therefore it is unclear if the interest rate is the same for both loans. At least one of the loans has a nearly 0.7-percent interest rate.
The loan is with the New Mexico Finance Authority, which loaned the city $2 million in 2009 to put in sidewalks, curb and gutter, for which $1.2 million principal debt remains.
The loan period was from 2009 through 2030 and the new loans will also end in 2030.
The City pledged .25 percent of its 1-percent Municipal Gross Receipts Tax revenue to pay off the 2009 loan. That same money source is pledged to pay off the refinancing/refunding $1.2 million loan, but the $1.12-million new-money loan can use any money source to pay off the debt, according to the loan documents.
It is unclear how much revenue the Municipal Gross Receipts Tax will generate during the COVID-19 crisis.
$1 MILLION GRANT LOAN TO FIX ROADS AFTER WATER LINES REPLACED DOWNTOWN
The City Commission will consider whether to accept a $900,000 grant and $100,000 loan from the U.S. Department of Agriculture’s Colonias program.
The City Commission approved applying for a $1-million grant from USDA last January. The City received a $9.4-million loan/grant from the USDA to replace water lines downtown, add another water tank at the Cook Street Station, as well as other improvements to the chlorination system at that station.
The City Commission Packet does not include information about the road-replacement loan terms.
DEMOLISH THREE HOMES AND REMOVE DEBRIS FROM ANOTHER
Using dangerous and unsafe state and local statutes, Zoning Official Traci Alvarez is asking the City Commission to approve the tear-down of three homes and removal of debris from another home site, the City to recoup costs as it can, provided by statute.
The homes to be torn down are at 802 Bosque Dr., 901 Bosque Dr. and 703 Jicarilla Way.
Debris removal is proposed at 630 Charles St.
WILSON & COMPANY GIVES RUNDOWN OF PROJECTS
Wilson & Company is under contract with the City as its general contractor. It will give a brief overview of the projects it is working on. Included are the following projects:
–$90,000 U.S. Department of Agriculture Colonias grant to do a preliminary engineering study on the City’s water system. It was completed August 3.
–$473,000 grant/loan from the New Mexico Environment Department to fix the vacuum sewer system that parallels Veater Street. The City is negotiating with three top respondents to the Request for Proposals sent out at the end of April.
–$50,000 USDA Community Development Block Grant to update the City’s 2015 Comprehensive Plan. This will probably start in September.
–$75,000 New Mexico Finance Authority grant to develop an asset management plan for the City’s sewer system, to include estimates for the cost of operations and repairs. This will start late August.
–$60,000 New Mexico Finance Authority grant to do a “feasibility study” on a “River Walk” on the far side of the Rio Grande. This will start late August.
–$711,000 New Mexico Finance Authority grant/loan/cash match to repair the water system booster station on Austin Street. Requests for Technical Proposals will go out the end of October.
INFRASTRUCTURE CAPITAL IMPROVEMENTS PLAN FOR 2022-2026
The City Commission will discuss the ranking of projects that is due to the Department of Finance and Administration’s Local Government Division on Sept. 18.
City staff’s document in the City Commission packet suggests water system improvements are the number-one priority, followed by water drainage/flooding fixes and then road improvements.
The City Commission is asked to pass a resolution on the ranking of projects at this meeting, indicating it will not go to public hearing, as ICIPs have done in the past.