HOUSE JOINT MEMORIAL 9

52nd legislature - STATE OF NEW MEXICO - second session, 2016

INTRODUCED BY

G. Andres Romero

A JOINT MEMORIAL

REQUESTING THE PUBLIC REGULATION COMMISSION AND THE LEGISLATIVE FINANCE COMMITTEE TO STUDY THE EFFECTIVENESS OF THE ALBUQUERQUE-BERNALILLO COUNTY WATER UTILITY AUTHORITY TO ACCOMPLISH ITS REQUIRED DUTIES AND RESPONSIBILITIES TO ITS CONSUMERS AND COMMUNITY AND THE RESPONSIBILITY OF GOVERNANCE BY THE BOARD OF THE AUTHORITY.

     WHEREAS, the Albuquerque-Bernalillo county water utility authority was created in 2003 pursuant to Section 72-1-10 NMSA 1978; and

     WHEREAS, the membership of the board of directors of the authority is composed of the mayor of Albuquerque, three city councilors appointed by the Albuquerque city council and three county commissioners appointed by the board of county commissioners of Bernalillo county; and

     WHEREAS, the membership of the board of directors may change on an annual basis at the pleasure of the Albuquerque city council and the Bernalillo county commission, allowing for a lack of consistency of board members and a variability of representation to some service areas of the authority; and

     WHEREAS, the authority makes policy decisions about water and sewer usage, sets water and sewer rates and establishes drought restrictions and other water regulations and ordinances affecting all users and the local economy; and

     WHEREAS, the authority may acquire, maintain, contract for, condemn or protect water and wastewater facilities and is empowered to approve major water utility projects and to issue bonds to finance those projects; and

     WHEREAS, "the Water Authority has close to $1 billion in rehabilitation needs, and it cannot defer or delay these critical projects as they are required to meet compliance and customer service levels", according to Mark Sanchez, executive director; and

     WHEREAS, there have been a number of major water line breaks necessitating emergency repairs, which cost two to three times what scheduled maintenance would, and a six-million-gallon sewage spill into the Rio Grande in 2015; and

     WHEREAS, the Albuquerque-Bernalillo county water utility authority acquired debt between fiscal years 2004 and 2009 of roughly five hundred million dollars ($500,000,000) to pay for a drinking water project and, as of June 30, 2015, had outstanding debt of seven hundred fifty million dollars ($750,000,000), making debt payments more than thirty-six percent of its expenditures; and

     WHEREAS, beginning in 2011, user rates have been raised with five percent rate increases implemented in each of fiscal years 2012, 2014, 2015 and 2016 and more planned for fiscal years 2018, 2020, 2022 and 2024, yet expenditures have exceeded revenue for the past seven years; and

     WHEREAS, concerns have been raised as to the testing and treating of drinking water, including the effects of the jet fuel spill originating at Kirtland air force base; and

     WHEREAS, the regional water plan for the middle Rio Grande, developed by members of the mid-region council of governments and the middle Rio Grande water assembly, identified an existing gap between regional water supply and demand that is expected to grow without focused action; and

     WHEREAS, the duties of the authority are complex, technical and time-consuming, making transparency and oversight by public officials particularly critical; and

     WHEREAS, meeting the water needs of the city of Albuquerque and Bernalillo county is vitally important to the future well-being of all residents and businesses of the city and the county and, thus, to a critical part of the state's economy;

     NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the public regulation commission and the legislative finance committee be requested to study the ability of the Albuquerque-Bernalillo county water utility authority to accomplish its required duties and responsibilities to its consumers, its community and the region and to identify alternative approaches to the composition of the board of directors of the authority; and

     BE IT FURTHER RESOLVED that the public regulation commission and the legislative finance committee enlist assistance from interested stakeholders to collect data, foster dialogue and identify and recommend strategies to the committee that will strengthen the ability of the Albuquerque-Bernalillo county water utility authority to meet the current and future water utility needs of the city of Albuquerque, Bernalillo county and associated local governments; and

     BE IT FURTHER RESOLVED that the public regulation commission and the legislative finance committee hear stakeholder input on the structure of the authority's board of directors and recommend any necessary changes to the appointment or election process for members of the board in order to more fully represent all service areas of the authority; and

     BE IT FURTHER RESOLVED that to reflect broad stakeholder participation and input, the task force shall be composed of the following: a Bernalillo county Republican party member of the house of representatives, a Bernalillo county Democratic party member of the house of representatives, a Bernalillo county Republican party member of the senate, a Bernalillo county Democratic party member of the senate, a Bernalillo county commission member of the authority's board of directors, an Albuquerque city council member of the authority's board of directors, the chair or vice chair of the water resources board of the mid-region council of governments and representatives of the league of women voters, an environmental organization such as the sierra club, the New Mexico foundation for open government, a farmer/farm organization from southern Bernalillo county, the Albuquerque chamber of commerce, the Albuquerque Hispano chamber of commerce and the board of directors of the middle Rio Grande water assembly; and with the executive director of the Albuquerque-Bernalillo county water utility authority sitting on the task force as an ex-officio member; and

     BE IT FURTHER RESOLVED that the public regulation commission and the legislative finance committee report their findings and recommendations to the legislature by December 1, 2016; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the chair of the public regulation commission, the director of the legislative finance committee, the Albuquerque city council, the mayor of Albuquerque, the board of county commissioners of Bernalillo county and the Albuquerque-Bernalillo county water utility authority.

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