County petition drive

Max Baker spoke Thursday at a lunch meeting and explained that the petition that is being circulated about the Trinity Project will also impact several other projects that are important to people if a referendum is held. Although Trinity Site is being specifically targeted, did you know that the perimeter road improvement project would also be impacted? As well as potentially (1) a new skate park in Los Alamos, (2) downtown parking infrastructure, (3) bike and trail paths, (4) the Golf Clubhouse, (5) road and sidewalk repair and replacement, and (6) a Historical Archives Building? I asked Max for a written version of his comments and I include them below so that you can read them for yourself.

PLEASE, share this information with everyone you know so that folks better understand WHAT the petition that is being distributed will affect. Many who think they are signing only about Trinity may have second thoughts when they realize other projects will be impacted. The important thing is to inform folks with truthful (and complete!) information BEFORE their name gets on that petition, so that they can better determine whether they want to sign. I'm so sorry this is long; Max was thorough in his explanation. :) Thank you!! Laura.

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Subject: Bond Ordinance Information
Date: Fri, 22 Sep 2006 17:01:52 -0600
From: "Baker, Max"
To: "Boards & Commission Chair"
Cc: "~County Council" ,
"Department Heads"

At the Boards and Commissions Lunch-time meeting on Thursday September 21st, I was asked to provide information in written form of some verbal comments at that meeting. I apologize that this takes longer in writing.

On September 12, 2006 The County Council unanimously approved Ordinance 529 authorizing the sale of up to $75 million of bonds. The title of this 49 page Ordinance prescribes that the purpose of the bonds is for ”defraying the cost of public projects related to public facilities, roads and streets, public works, parks and recreation, and community services, including without limitation, the Trinity Site Revitalization Project and the Perimeter Road Improvement Project”. (see the text of the full actual title of the ordinance below)

These bonds are Gross Receipts Tax Revenue Bonds and as such have a pledge of the County’s Gross Receipts revenues. It is important to understand that no property tax increase will result from this ordinance. In fact Council recently made it very clear that we will avoid an increase in property taxes earmarked for roads and streets that would have increased those taxes significantly for property owners. These bonds were authorized because of forecasts of increasing interest rates and the need to bundle many projects together to minimize transaction costs associated with issuing bonds many different times for individual projects.

It is worthy to note that while only two specific projects are cited­The Trinity Site Revitalization Project and the Perimeter Road Improvement Project­many other projects from the County’s Capital Improvement Program (CIP) which are in the early stages of development.

The Trinity Site Revitalization Project as outlined in the currently approved CIP will require approximately $50 million of the amount. The amount along with other sources of funding from reserves and a payment from the Schools will pay for demolition of current facilities and the building of new warehouse and shop facilities for both the County and the Schools at the Airport Basin site­thus paving the way for redevelopment of the Trinity Site by the developer who will provide a mixed use­retail, office and housing development. This complex project has been considered by the community for 36 years, and has been determined by Council to be the #1 goal to provide a better future for Los Alamos citizens. Furthermore, no viable alternative project has been identified which meets the #1 desire of our citizens as stated in numerous statistically valid Citizen Perception surveys over the past decade to provide for more retail shopping opportunities.

The Perimeter Road Improvement Project will require up to $12 million of the amount. This project will construct a significant portion of the Bypass Road contemplated to allow citizens and visitors to avoid going through the new security gates constructed as part of the NNSA’s Security Perimeter Project. Our citizens, retailers and tourist interests have made it clear to the County, the Governor and to our Congressional delegation that an alternative route must be provided. This project meets that need, and the bonds will ensure that we can do it in the near future instead of many years from now. While the Governor has indicated that the State will provide a grant for $6 million of the required amount, because of the overwhelming outcry of citizens to get the Bypass constructed we feel it is prudent to allow for the full amount of the project in case that grant does not occur in the next legislative session.

Other Capital Projects that are being developed and may require some portion of the remaining $13 million include such things as: (1) a new skate park in Los Alamos, (2) downtown parking infrastructure, (3) bike and trail paths, (4) the Golf Clubhouse, (5) road and sidewalk repair and replacement, and (6) a Historical Archives Building. All of these projects are important elements in addressing our aging infrastructure problems and improving the quality of life for Los Alamos citizens.

We understand that the County Clerk has this week issued a petition at the request of citizens that calls for either the immediate rescission by Council of the Ordinance or the calling of a election for the citizens to vote on whether to uphold the Ordinance or rescind it. If the petition is presented back to the County before November 16th, with sufficient signatures then the Council will have a choice and will likely take the question to the voters in a special election costing about $25,000 in late December or early January. If citizens approve the Ordinance going forward, then the County will likely issue bonds soon thereafter and the projects will continue to move ahead. Alternatively, if the citizens rescind the Ordinance then projects will be stopped for a minimum of a year as required by the law. With construction costs rising at about 1.5% per month, the $75 million may need to be increased by an additional $10 million one year later just to account for these construction cost increases.

In the motion for approval of the Ordinance, the Council has made it very clear that prior to issuance of any bonds, there will be additional opportunities for the Council to approve moving forward on each project and for the public to express their opinions about each of those steps. If anyone requires additional information on the projects, there is considerable information on the County website at www.losalamosnm.us and at the KanDu Center along with the reference desks at both libraries.

Staff would be happy to respond to any questions.

Max Baker
County Administrator

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Here is the full text of the title of Ordinance No. 529.


INCORPORATED COUNTY OF LOS ALAMOS, NEW MEXICO
ORDINANCE NO. 529

AN ORDINANCE AUTHORIZING THE ISSUANCE OF THE INCORPORATED COUNTY OF LOS ALAMOS, NEW MEXICO GROSS RECEIPTS TAX IMPROVEMENT REVENUE BONDS, SERIES 2007, IN THE PRINCIPAL AMOUNT NOT TO EXCEED $75,000,000 FOR THE PURPOSE OF DEFRAYING THE COST OF PUBLIC PROJECTS RELATED TO PUBLIC FACILITIES, ROADS AND STREETS, PUBLIC WORKS, PARKS AND RECREATION, AND COMMUNITY SERVICES, INCLUDING, WITHOUT LIMITATION, THE TRINITY SITE REVITALIZATION PROJECT AND THE PERIMETER ROAD IMPROVEMENT PROJECT; PROVIDING THAT THE BONDS WILL BE PAYABLE AND COLLECTIBLE FROM CERTAIN GROSS RECEIPTS TAX REVENUES DISTRIBUTED TO THE COUNTY; PROVIDING FOR THE DISPOSITION OF THE RECEIPTS DERIVED FROM CERTAIN GROSS RECEIPTS TAX REVENUES; PROVIDING THAT CERTAIN TERMS AND DETAILS OF THE BONDS WILL BE PROVIDED AND APPROVED BY SUBSEQUENT ACTION OF THE COUNTY; PRESCRIBING OTHER DETAILS CONCERNING THE BONDS AND GROSS RECEIPTS TAX REVENUES, INCLUDING BUT NOT LIMITED TO COVENANTS AND AGREEMENTS IN CONNECTION WITH THE BONDS AND THE FORM AND MANNER OF EXECUTION OF THE BONDS; RATIFYING ACTION PREVIOUSLY TAKEN IN CONNECTION WITH THE BONDS; AND REPEALING ALL ORDINANCES IN CONFLICT HEREWITH.