Title
Approval of the Reinstatement of Contract for IFB 25-31 for the Bayo NP Booster Station Rehabilitation Project including the two prior change orders in the Amount of $1,427,586.41 plus NMGRT and Approval of Change Order No. 3 with TLC Company, Inc. in the amount of $34,983.25 plus NMGRT with a New Final Completion Date of June 30, 2026
Recommended Action
I move that the Board of Public Utilities recommend the reinstatement of contract for IFB 25-31 for the Bayo NP Booster Station Rehabilitation Project including the two prior change orders in the amount of $1,427,586.41 plus NMGRT and approval of Change Order No. 3 with TLC Company, Inc. in the amount of $34,983.25 plus NM Gross Receipts Tax with a new final completion date of June 30, 2026 and forward to Council for approval.
Utilities Manager's Recommendation
The Utilities Manager recommends that Board approve the motion presented.
Body
Construction of the Bayo NP Booster Station was approved by Council on May 21, 2025, and has since begun. The water provided by this station is in high demand for the customers we serve, including the Golf Course and Parks.
We are now requesting final approval of the attached change order, which previously received emergency approval. This change order is needed to extend the contract time and include a cost increase so the project can be properly completed.
During construction, we experienced delays in receiving critical equipment, which pushed back our ability to complete the project and provide service as originally planned. Once the materials arrived, the team focused on getting the booster station up and running quickly to restore water service. During startup, a gasket on a newly installed valve failed unexpectedly, causing water exposure to recently installed equipment. This required repairs and additional testing to make sure everything is working correctly and to ensure all vendor warranties remain valid.
Alternatives
If the change order is not approved, the project cannot be completed under the current contract, which will result in the loss of the current funds obtained through NMED. This would postpone reliable water service to the Golf Course and Parks, where demand remains high.
Fiscal and Staff Impact/Planned Item
The project has been budgeted through Water Production in FY 2025 in the amount of $1,000,000.00. The project is funded by a Clean Water State Revolving Loan/Subsidy CWSRL 135 in which $200,000 is a grant and $800,000 is a low interest loan. Budget Revision 2025-53 was previously approved on June 10, 2025, which increased loan CWSRL135 by $700,000 for a total loan/subsidy amount of $1,700,000. The base contract with the three proposed change orders are all within this revised contract amount of $1,462,569.66 plus NMGRT. There are no additional staff impacts
Attachments
A - IFB25-31 Change Order No.3
B - IFB25-31 Change Order No.2
C - IFB25-31 Change Order No.1
D - Written Determination_Emergency Procurement