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F I S C A L I M P A C T R E P O R T

SPONSOR:	Luna		DATE TYPED:	02/09/02		HB	HJR 23
SHORT TITLE:		Valencia Wetlands Wastewater Treatment System				SB
					ANALYST:		Carrillo

REVENUE

Estimated Revenue		Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
FY02	FY03
		$0.1 Indeterminate	Recurring	Public Buildings Repair Fund
		$0.1 Indeterminate	Recurring	Village of Los Lunas

(Parenthesis ( ) Indicate Revenue Decreases)

Duplicates SJR 19

SOURCES OF INFORMATION

General Services Department (GSD)

Office of the Attorney General

SUMMARY

Synopsis of Bill

House Joint Resolution 23, Valencia Wetlands Wastewater Treatment System, authorizes the Property Control Division (General Services Department) to lease approximately 30 acres of state-owned land in Valencia County for the construction and operation of a wetlands wastewater treatment system. The lease is contingent upon the Property Control Division (PCD) approving a facility use plan submitted by Valencia County and the Village of Los Lunas. The initial lease would be for 15 years, with two optional 15-year renewals. The state would retain right-of-way easements and provide ingress and egress to the county and village. The state could apply for federal grant money and the joint use operators might be eligible for federal domestic assistance programs.

Significant Issues

HJR 23 would be implemented by a lease between PCD and the Village of Los Lunas with details outlined in the facility use plan. The operator be selected through a competitive request for proposal (RFP) process and would cover environmental requirements for the wastewater treatment system, and other issues such as revenues, liability, and possibilities for recreational use.

According to General Services Department (GSD) staff this is an innovative approach which is in pilot stage in Albuquerque and San Juan Pueblo. It has potential for improving waste disposal in other parts of New Mexico. GSD would consult with the New Mexico Environment Department, Game and Fish Department, State Parks Divisions and other appropriate state and federal agencies in determining the suitability of the local plan, including compliance with applicable state and federal laws.

FISCAL IMPLICATIONS

This is not intended to be a revenue generating opportunity for the state or local governments involved. However, if there is any net profit after operational expenses for the wastewater treatment system or any subsidiary recreational other use, the lease would specify that the state would share in that profit.

DUPLICATION

HJR 23 duplicates SJR 19, Valencia Wetlands Wastewater Treatment System

OTHER SUBSTANTIVE ISSUES

Currently, wastewater treatment is handled in the Village of Los Lunas by a municipal wastewater treatment plant. That plant is undersized and has been cited for environmental issues. The estimated 30 acres are currently leased to the Village of Los Lunas until May 30, 2020 for recreational purposes and the only improvement is that a city water line has been extended to the site.

Wetland wastewater treatment systems can have enhanced recreational and educational uses like picnic areas, hiking and bicycle trails, outdoor classrooms, etc.

WC/ar