Title
Approval of Change Order No. 4 to IFB 2025-08 with DUB-L-EE Construction for the Purpose of the Jemez Mountain Fire Protection Phase I Project in the Amount of $9,818,896.79 & Approval of Budget Revision 2026-13
Recommended Action
I move that the Board recommend approval of Change Order No. 4 to IFB 2025-08 with DUB-L-EE Construction for the Purpose of theJemez Mountain Fire Protection Phase I Project in the Amount of $5,308,536.29 and a contingency in the amount of $530,853.63 for a total of $5,839,389.92, plus Applicable Gross Receipts Tax. The total IFB 2025-08 Contract amount including Change Order No. 4 is $9,818,896.79, plus Applicable Gross Receipts Tax. I further move that the Board recommend approval of Budget Revision 2026-13 and forward to Council for approval.
Utilities Manager's Recommendation
The Utilities Manager recommends that the Board approve as presented.
Body
The Incorporated County of Los Alamos has partnered with Pajarito Recreation LLP to construct the Jemez Mountain Regional Fire Protection Project to provide water to Pajarito Mountain. When complete the project will serve domestic water to the ski lodge, provide reliable fire protection to the existing system around the ski facilities, be available for Camp May campground, provide regional fire protection from the mountain top pond, and allow snow making for the Pajarito Mountain ski operation.
Two contracts have been awarded to date which will install the waterline, fiber optic conduit and electric conduit half-way up Camp May Road and construct a new 500,000-gallon water tank to feed the system. Both projects are scheduled to reach substantial completion by the end of October 2025.
Change Order No. 4 to Phase I of the project will incorporate most of the scope from Phase II of the project into Phase I of the project. The work included in this change order is the installation of the remaining trenching and installation of waterline, 6” electric conduit, 4” fiber optic conduit and 21 fiber optic vaults to the top of the mountain. Also included is the paving of the trench in Camp May Road for all of Phase II. We have excluded as much of the electric work as possible from this change order since we are still hopeful that FEMA funds can be secured for the electrical cost.
The benefits of adding this work to the ongoing Phase I project will be cost savings in mobilization that would be associated with bidding the work separately. We will also realize savings of lower unit cost for paving due to larger quantity which will now cover both Phase I & II paving. In addition, we will not have to place a temporary paving section this fall, only to dig it up again next year. Another savings will be from the water pipe and electric/fiber conduits which unit prices are held to the July 24, 2024 bid prices. Compared to the second bid received for Phase I, and recent projects since, the unit cost of comparable water pipe is 130% - 300% higher.
The goal of the project has been to have the system functional by October 2026 to allow Pajarito Ski hill to make snow, ensuring a full season of skiing and have fire protection water in the reservoir. We have been holding off on bidding the last two phases of the project the past 8 months waiting for notification from FEMA if we will be receiving funds for the electrical portion of the project. For that reason, we have missed the opportunity to deliver water by the desired October 2026 if we bid Phase II separately. If this change order is approved, work will continue through the fall with a goal of installing the Phase II utilities and paving Camp May Road by December 1, 2025 in time for the ski hill to open.
Also, if this change order is approved, the remaining work will be bid in the last phase which will include the four booster stations, water tie-ins, electric conductors/transformers, fiber optics line and work at existing tank. This bid package will remain on hold until we receive notice from FEMA on the status of the grant application. We estimate there is over $2.3 million in electric work remaining that could be funded by FEMA.
A summary of the three change orders that have already been executed is provided below.
- Change Order No. 1 - add $182,557.97 to excavate with rock trencher 11,300 feet for all phase II waterline alignment and add 45 days to contract.
- Change Order No. 2 - add $11,418.50 for water pipe material change and add 2 days to contract.
- Change Order No. 3 - add 45 days to contract due to delays in receiving LANL badges.
Alternatives
If the change order is not approved the work will be bid for construction at a later date and temporary paving patch will have to be placed this fall and need to be removed next year when pipe is installed.
Fiscal and Staff Impact/Planned Item
The IFB 2025-08 contract for the Purpose of Jemez Mountain Fire Protection Phase I Project was awarded on September 24, 2024. The contract cost to date, including change orders and NMGRT is $4,828,904.71. The total contract including Change Order No. 4 is $10,549,847.91 including NMGRT. Budget Revision 2026-13 (Attachment C) in the amount of $6,251,796.83 raises the available budget to include Change Order No.4 and associated contingency and NMGRT.
Two special appropriation grants have been received for the project, SAP 23-H2437-GF in the amount of $7,000,000 and SAP 24-I23999 in the amount of $900,000. $3,331,896.97 has not been encumbered and will be expended on work performed in Change Order No. 4.
A summary of the total project costs to date and projected cost to completion in Attachment B.
Per the Project Development Agreement between the Incorporated County of Los Alamos County and Pajarito Recreation LP, the project paid per the following schedule.
- 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 $900,000 from state grant
- 6th $2 million from County
Attachments
A - Change Order No. 4 to IFB 2025-08 Contract
B - Project Cost Summary
C - Budget Revision 2026-13