Two bills for water system failures are working their way through hearings—Senate Bill 95 and House Bill 148—the former for $20 million and the latter for $16 million.
The city commission has not said much about the bills during city meetings, although the legislative session was an agenda item on Jan. 24. Mayor Rolf Hechler did most of the talking, but his words didn’t add up to much, stating he “went to Santa Fe,” and “spoke to legislators,” failing to explain the bills and what he told legislators.
I watched two legislative committee hearings, read the bills and read the Financial Impact Reports (FIR) written by Legislative Finance Committee staff in an effort to understand the $36 million in requests and what the money would specifically fix.
I also submitted an IPRA for engineering reports corresponding to the $20-million and $16-million requests, but the city has asked for extended time to fulfill those requests.
I asked City Manager Angela Gonzales to supply the engineering reports, but received no response.
In my email to Gonzales I also noted that the FIR for SB95 stated that the city will not qualify for funds for either legislative request until it turned in its annual audit report. I asked why the city hadn’t turned it in by the Dec. 15, 2023 deadline and if had since done so. No answer.
The state auditor’s office confirmed that the city has still not turned in its annual audit by Feb. 5.
The lateness probably stems from not having a director of finance. Gonzales fired Director of Finance Kristie Wilson, on Nov. 20, one of my prior IPRA’s revealed. The only rationale given in Gonzales’ termination letter is that Wilson was being let go during her probationary period. Presumably it’s easier to fire someone on probation without giving reasons and gives the employee fewer options to contest a firing.
Each of the bills seeks grants from different pots of money. SB95 asks for a one-time $20-million appropriation from the state’s general fund. HB148 seeks a one-time $16-million appropriation from the Water Project Fund, administered by the New Mexico Finance Authority.
During the Jan. 29 Senate Health and Public Affairs Committee hearing on SB95, Senator Crystal Diamond Brantley, one of the three sponsors, was the primary presenter of the bill. T or C Mayor Rolf Hechler was introduced by Brantley as the “expert witness.” The other sponsors of the bill are Representatives Tara Jaramillo and Gail Armstrong, whose districts include T or C.
Brantley said 43 percent of the city’s water or 20 million gallons are leaking per year due to old pipes. This has been happening for “the last four years,” she said.
The water loss is an “environmental issue,” Brantley said. There are health and safety issues as well. The middle and high school have had to close at times due to no water, she said. Sierra Vista Hospital has had no water “mid-operation,” she said, and is looking into acquiring its own water tank to ensure running water. The New Mexico State Veterans Home has also been without water, she said.
The pipes are so old, Brantley said, some of them are “wooden.”
The FIR, Brantley said, was incorrect in stating that the $20-million senate bill was duplicating the needs of the $16-million house bill. It was also incorrect in claiming the Water Trust Board is planning on awarding the city the $16 million, Brantley said, “Unless he knows something we don’t and let it slip.”
Since the estimated total cost of fixing T or C’s old pipes is $120 million, Brantley said, both the legislative requests are needed. Both bills, she said, have “emergency clauses,” because the money is needed right away to fix “the worst of the problems.”
Hechler said the city has just approved another expensive water project which is $4.8 million loan and $2.7 million grant. T or C is poor and its citizens mostly seniors. The city is “looking at” raising the water and wastewater fees, Hechler said, if it can’t stir up legislative grants. Hechler failed to state that the city has raised water rates about 80 percent and wastewater rates about 30 percent over the last five years.
The city’s patching of leaks is not working, Hechler said. When the leaky-pipe area is replaced with 20 feet of new pipe it increases the pressure and new breaks appear 30 feet away in a short period of time.
SHPA Committee Member Senator Steve McCutcheon said he used to work on pipes and was very familiar with the problem of patches increasing pressure and the futility of patching that is nonetheless necessitated because of the need to keep water flowing to the people. Complete replacement is the only solution, McCutcheon said. He asked if the city had considered “slip lining” the pipes, that is, injecting a slurry that hardens and adheres to the inner side of the old pipe.
Hechler said the pipes are too old and slip lining “won’t work.” Laying new pipe parallel to the old is what is contemplated, he said.
Vice-Chair Committee Member Senator Bill Tallman asked Hechler if the city takes any responsibility “for not replacing the pipes sooner.”
Hechler said, “Yes,”, and would “explain” how it came about. “I was a city commissioner from 2016 to 2020,” Hechler said, and “the problem didn’t manifest” then. Pipes were leaking 20 percent, he said. It’s only been in the last “five or six years” that the pipe leaking has become “exponentially worse.”
“I wish we had had better foresight,” Hechler said. “We are looking to address that with the other utilities.”
Tallman asked President of the Committee Senator Gerald Ortiz y Pino, “Are we setting a precedent” for giving grants to city’s that do not maintain their utilities.
“I think they [such bills and grant awards] do and will [set a new precedent]. We’ve got deeper pockets than those who don’t have access to gas and oil money,” Ortiz y Pino said.
Committee Member Senator Greg Nibert agreed. “This [T or C $20-million request] is one of 100 we will realize shortly. The state really needs to look at the aging water infrastructure problem.”
Ortiz y Pino pointed out that not much federal money has trickled down to New Mexico from Biden’s infrastructure bill, “which is two years old now.” New Mexico received only $350 million for water, he said.
The SHPS Committee gave a “do pass” recommendation to SB95. It goes to the Senate Finance Committee next.
The House Appropriations and Finance Committee gave a “do pass” recommendation to HB148, but unlike SB95, T or C’s $16 million request is only one among 65 projects to be considered for Water Trust Board money. No other house committee is scheduled to hear it. Presumably it will go to the house floor next.