Title
Incorporated County of Los Alamos Resolution No. 24-26: A Resolution Authorizing the Utilities Manager and the Deputy Utilities Manager - Finance & Administration, to Execute Documents with the New Mexico Environment Department on Behalf of the Incorporated County of Los Alamos Relating to the Jemez Mountain Fire Protection Project Pipeline Construction, Special Appropriation Project SAP 24-I2399-GF
Recommended Action
I move that Board of Public Utilities recommend Incorporated County of Los Alamos Resolution No. 24-26: A Resolution Authorizing the Utilities Manager and the Deputy Utilities Manager - Finance & Administration, to Execute Documents with the New Mexico Environment Department on Behalf of the Incorporated County of Los Alamos Relating to the Jemez Mountain Fire Protection Project Pipeline Construction, Special Appropriation Project SAP 24-I2399-GF, and forward to Council for Adoption.
Utilities Manager's Recommendation
The Utilities Manager recommends that the Board recommend Incorporated County of Los Alamos Resolution No.24-26 and forward to Council for Adoption.
Body
The 2024 New Mexico Legislature awarded $900,000 to Los Alamos County for construction of the Jemez Mountain Regional Fire Protection Project. This Resolution will assign signature authority to DPU staff to execute and administer the grant. The final grant documents have been received and will be signed and returned to NMED for execution immediately after Council approval.
The project will construct a new 500,000-gallon water tank, four water booster stations and 23,000 feet of 10" waterline that will be constructed along Camp May Road. The project will convey water from the existing potable water system in Los Alamos to Pajarito Mountain to provide domestic water to the Pajarito Mountain ski facilities, Pajarito 10-million-gallon Reservoir, Camp May campground and provide a reliable water supply for regional fire protection and snow making. When complete the existing 240,000 gallon water tank in the ski area will remain full to serve domestic water service and fire protection to the ski area facilities and the existing 10-million-gallon reservoir will remain full year-round as a water resource for firefighting in the Jemez Mountain region.
Bids will be received for Phase I of the project on August 20, 2024. The remaining three bid packages are being finalized and will be bid this fall.
Alternatives
If the resolution is not approved the grant funding cannot be awarded.
Fiscal and Staff Impact
The total project cost is estimated to be $18 million. Per the attached Project Development Agreement, the project will be funded as follows:
1st $3.5 million from state grant
2nd $1 million from Pajarito Recreation LP
3rd $3.5 million from state grant
4th $1 million from Pajarito Recreation LP
5th $2 million from County
6th $900,000 from state grant
The County has applied for a FEMA mitigation grant in the amount of $7 million to fund the electric under-grounding portion of the project. If no additional funds are awarded, up to $7 million remaining to be split equally between the County and Pajarito Recreation LP.
Attachments
A - LAC Resolution No. 24-26
B - Grant Agreement SAP 24-I2399-GF
C - Project Development Agreement