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File #: 21237-26a    Version: 1
Type: Briefing/Report (Dept,BCC) - Action Requested Status: Business
File created: 1/22/2026 In control: Board of Public Utilities
On agenda: 2/18/2026 Final action:
Title: Approval of Budget Revision No. 2026-41 for Task Order No. 4 with Souder Miller & Associates under AGR22-67b for Potable Water Storage Tank Inspection and Maintenance Services
Presenters: James Alarid
Indexes (Council Goals): Quality Excellence - Effective, Efficient, and Reliable Services, Quality Governance - Fiscal Stewardship, DPU FY26 - 1.0 Provide Safe and Reliable Utility Services, DPU FY26 - 2.0 Achieve and Maintain Excellence in Financial Performance
Attachments: 1. A - Budget Revision 2026-41, 2. B - Task Order #4 ARG22-67b SMA
Related files: 21237-26

Title

Approval of Budget Revision No. 2026-41 for Task Order No. 4 with Souder Miller & Associates under AGR22-67b for Potable Water Storage Tank Inspection and Maintenance Services

Recommended Action

I move that the Board of Public Utilities approve Task Order No. 4 with Souder Miller & Associates under AGR22-67b for Potable Water Storage Tank Inspection and Maintenance Services in the amount of $149,212 plus applicable GRT and including a 15% project contingency, and recommend Budget Revision 2026-41 in the amount of $185,441.00, and forward to Council for approval.

Utilities Manager's Recommendation

Utilities Manager recommends that the Board approve the motion as presented.

Body

On October 7th & 8th, 2025, the New Mexico Environment Department (NMED) conducted a sanitary survey of the water production system. On December 8, 2025, the DPU received the inspection report that identified 36 corrective actions.  The DPU submitted a corrective action plan on January 7, 2026 to NMED with 18 of the 36 items already addressed. All deficiencies must be addressed by April 7, 2026.

 

The remaining deficiencies will require contractor support to seal access hatches, repair tank level indicators, grout annular space below tank bottoms and remove sediment and debris from tank floors. The tank level indicator repair and sediment and debris removal will require a diver to enter the tanks.  In late January 2026, the Souder Miller & Associates team performed exploratory dive inspections to quantify the amount of sediment needing removal and to sample the debris to ensure the materials do not need any special handling or disposal.  The work performed in Task Order No. 4 will include the tank cleaning, tank level equipment repairs, seal access hatches and tank floor grouting.  Given the magnitude of the specialized work that must be completed in the short time allotted, we have received approval from procurement to proceed with the work as an emergency procurement.      

Alternatives

If the budget revision is not approved, DPU may not meet the compliance deadline of April 7, 2026.   

Fiscal and Staff Impact

This work is unplanned and Budget Revision 2026-41 is needed to allocate the funds to perform the work.  A 15% contingency is included if unforeseen conditions are encountered.

Attachments

A - Budget Revision 2026-41

B - Task Order No. 4, AGR22-67b