1. Rapid Assessment Process Project Strategic Plan Village of Columbus Water Supply and System Improvements Luna County, New Mexico Presented to: Stakeholders and Project Sponsor Santa Fe, NM February 4, 2003

2.  General Aspects  Environmental and Human Health Indicators  Technical Approach, Objectives and Funding Plan  Public Participation  Sustainable Development  Project Development Schedule  Stakeholder Comments/Discussion Agenda

3. General Aspects Project Location §The Village of Columbus is located in Luna County, New Mexico approximately 92 miles from the City of Las Cruces. The community is 3 miles from the U.S./Mexican Border.

4. State of Existing Water Supply and Distribution System  Water is supplied from one well. The “Southeast Well” or “New Well” was installed in 1996. The water treatment system includes an automatic chlorine valve that feeds the system directly as water is pumped from the “Southeast Well”.  A reverse osmosis (RO) water treatment system installed in 1973-1974 is capable of producing approximately 400 gallons per day. The system treats for fluoride in pumped water and it provides drinking water only at the location of the RO treatment system with a maximum allocation of 5 gallons per day per person. The water distribution system supplies pumped water, but not treated for fluoride. General Aspects

5. State of Existing Water Supply and Distribution System  Concerns: Compliance with EPA Regulatory requirements in regards to fluoride, sodium and arsenic for drinking water quality standards. General Aspects

6. State of Existing Water Storage and Distribution System  A 100,000-gallon reservoir, measuring 24-feet in height and 27- feet inside diameter.  An additional water storage reservoir has also 100,000-gallons located within the Industrial Park. It measures 87-feet in height and has a 14-feet inside diameter.  In 1994, another water reservoir with a capacity of 243,500- gallons was constructed.  The water distribution system transports pumped water through approximately 24,450 linear feet of cast iron pipes, 54,770 linear feet of PVC pipes and 33,350 linear feet of transite pipes. The system has approximately 63 shutoff valves and 33 fire hydrants. General Aspects

7. State of Existing Water Storage and Distribution System  Concerns: Additional water storage capacity to help address concern over water shortages during drought conditions. The community needs to replace undersized cast iron pipelines (5,000 to 6,000 linear feet) throughout the Village downtown area and replacement of inoperable fire hydrants in the system. General Aspects

8. Proposed Water Supply and System Improvements  Water supply improvements to meet EPA regulatory requirements in regards to fluoride, sodium and arsenic for drinking water quality standards.  Improvements to the water distribution system, additional water storage capacity and the development of a 40-year water supply plan. General Aspects

9. Total Estimated Cost: $2 Million (Based on Village of Columbus estimate)  Final Design Development: $255,600  Construction of Facilities: $1,744,400 Note: Further definition of the needs through alternatives analysis and feasibility studies are needed to determine budget for design and construction. Therefore, the applicant’s proposed budget should be considered as a tentative. General Aspects

10.  Population: 1,765  Annual growth rate: TBD  MHI*: $13,773.00  Unemployment rate: 14.2%  Legal utility provider  577 water accounts  459 sewer accounts  3 employees  Billing efficiency: TBD Project Sponsor Profile:

11. General Aspects  USDA-RUS: Funds in the amount of $475,000 for installation of a new groundwater well (South East Well) and improvements within colonias in 1994.  USDA-RUA: Funds received in 1994-1995 in the amount of $75,000 for the purchase of additional water rights and installation of new groundwater well.  CDBG: Funds in the total amount of $300,000.  Request for financial assistance from the NADB for the completion of the wastewater system.  No prior BECC assistance. Prior Agency Support:

12. General Aspects  In 1993 the Village completed a Infrastructure Master Plan.  A Comprehensive Plan was completed in 1996. Prior Studies:

13. Human Health Indicators  Improvements to the water system are necessary to meet fire protection demand, which poses a direct threat to the health and safety of the Village of Columbus residents.  The improvements to the water supply and related systems will address human health and environmental issues for the residents in the Village.  Specifically, improvements to the water supply quality will address concentration of fluoride, sodium and arsenic in pumped water. Environmental and Human Health Indicators

14. Environmental Indicators  Problems with EPA regulatory requirements for drinking water are directly related to compliance with naturally occurrence of fluoride concentration in pumped water.  Additionally, high concentrations of sodium and arsenic have also been found in the pumped water. posed wastewater accumulated at the cesspools areas and deficient septic tank systems may be potential contamination sources. Environmental and Human Health Indicators

15. Compliance with Environmental Norms & Regulations Including Violations  The Village of Columbus drinking water supply has let to an Administrative Order from the EPA since 1992, directly related to high concentrations of fluoride above the acceptable limits in drinking water.  Recent laboratory results received by the New Mexico Environment Department indicated concentration levels of fluoride at the Southeast Well of 7.94 ppm.  As per the New Mexico Drinking Water Regulations 20 NMAC 7.1, Section 202.A(9), the specific Maximum Contaminant Level (MCL) for fluoride is 4 ppm. Environmental and Human Health Indicators

16. Technical Approach  Technical Assistance needed to develop documents which may include:  Facility Plan & Environmental Information Document  Engineering Design  Financial Analysis  Public Participation Program  Rate Study Technical Approach, Objectives and Funding Plan

17. Technical Assistance Tasks TaskSource PER and EIDBECC Water Conservation Plan/40-Year Water PlanBECC/Other Financial AnalysisBECC Public Participation ProgramBECC Project Certification DocumentBECC Final DesignBECC/Other Technical Approach, Objectives and Funding Plan

18. Identified Potential Funding Sources  USDA/Rural Utility Services (RUS)  Funds tailored for incorporated rural areas with populations of less than 10,000  New Mexico Legislative Appropriations  Multiple use – dependent on language presented in bill.  New Mexico Environment Department (NMED)  Rural Infrastructure Program loans, typically administer NM SAP  New Mexico Finance Authority (NMFA)  Water and WW Grants Program, DWSRF, Project and Equipment loans Technical Approach, Objectives and Funding Plan

19. Identified Potential Funding Sources  NM Water Trust Board  Annual authorized funding to address critical water projects  North American Development Bank (NADB)  BEIF and IDP  Border Environment Cooperation Commission (BECC)  PDAP program Technical Approach, Objectives and Funding Plan

20. Project Sponsor Financial Potential Revenues and Expenditures Summary (thousands) 2000 Revenues $183 Expenses $162 Net Available from Operations $21.5 Existing Debt:NoneAnnual Debt Service: $2.8* *Only for current outstanding sewer debt Water Avg. Monthly Residential Bill:$10.50 Technical Approach, Objectives and Funding Plan

21. Agency Perspectives - NADB  An initial analysis of the proposed project in regards to BEIF eligibility criteria provides a sense that the project will be eligible for this program.  An affordability analysis will be completed to determine any participation with BEIF grants including construction, hook-up and transition support.  Loan assistance can be available for construction and potential support may be provided by the IDP for completion of a rate study and other institutional capacity building needs. Technical Approach, Objectives and Funding Plan

22. Institutional Capacity Building  The project sponsor identified such needs as a capital improvement plan, rate study and the development of public participation programs as institutional needs.  Additional needs may include assistance in both the institutional and human capacity to administer the project.  Following the proposed 40-Year Water Supply Plan completion, basic training to the Village staff in understanding and maintaining the Plan may also be necessary.  The Frank M. Tejeda Center has conducted an Institutional Capacity Needs Assessment with the Village of Columbus. Technical Approach, Objectives and Funding Plan

23. Potential Obstacles  The project sponsor and the BECC are not aware of any legal issues that may jeopardize the proposed project, or any litigation problems with the current local government.  The Village has ample water rights.  A notable potential obstacle is the high cost of providing water treatment to address the quality issues present in the water basin near the Village.  Rate modifications may also provide a potential obstacle for receiving community support. Technical Approach, Objectives and Funding Plan

24. Identification of Main Stakeholders  Village of Columbus  The State of New Mexico Environment Department  New Mexico Finance Authority  North American Development Bank  Frank M. Tejeda Center  Border Environment Cooperation Commission  United States Department of Agriculture  Environmental Protection Agency Public Participation

25. Local Politics  The Village of Columbus local government is comprised of a Mayor, four councilors and a clerk/treasurer. The Village Commission has passed a resolution on March 13, 2002 authorizing the Mayor to seek Technical Assistance from BECC, and authorizing her staff to seek funding from the State of New Mexico and the North American Development Bank. Public Participation

26. Minimum Criteria Requirements  The Village of Columbus made a commitment to comply to all applicable minimum requirements for the project in compliance with the BECC’s sustainable development criteria. Based on the status of existing planning and capacity assessment conducted by the Tejeda Center, a strategy to meet the applicable requirements has been included in Attachment H of the Strategic Plan.  11 of 14 minimum requirements will apply to the project of which the Village currently complies with 2. The remaining 9 minimums will be addressed as part of the project development. Sustainable Development

27. Project Development Schedule Task NameDurationStartFinish Application Process6 days06/14/0206/21/02 Rapid Assessment Process123 days08/30/0202/18/03 Technical Assistance Process64 days02/05/0305/05/03 Project Development Process (TA, Public Participation, NEPA) 556 days02/19/0304/06/05 Final Design Process*298 days12/16/0404/06/05 BECC Certification Process39 days02/28/0506/05 *Task duration is included in Project Development Process duration.

28. Stakeholder Comments/Discussion Thank you for your participation and valuable input.