Alamogordo commission approves $12 million loan for Snake Tank water transmission line

The Alamogordo City Commission on Sept. 9 approved first publication of Ordinance 17-17, authorizing a $12,000,000 loan from the Drinking Water State Revolving Loan Fund to construct a dedicated water transmission line from the Snake Tank well field toward Tularosa.

The loan agreement, presented by staff for first publication, is intended to fund roughly 5 to 6.5 miles of new transmission main that will convey water from Snake Tank Well Field to the location where the commission later decides to site a reverse-osmosis (RO) treatment plant. “This is $12,000,000 to get us hopefully 6 and a half miles, probably closer to 5 miles, of additional dedicated, well pipeline,” a staff member told the commission during the item.

Why it matters: the transmission main is intended to give the utility greater flexibility in sending untreated water from the Snake Tank wells to the city’s water infrastructure and a future RO facility, an asset city staff say will affect system pumping costs and siting decisions. Dave Nelly, utilities director, explained the work will connect to an existing well transmission line from La Luz Gate Road to the current RO facility and that completing the next segment will leave about 13 miles remaining to reach the La Luz connection point where a major siting decision will be required.

Key details and discussion: - Funding: The loan is sourced from the Drinking Water State Revolving Loan Fund; staff said the debt service will come from Fund 81. Staff also said the loan contains a forgiveness component, but the precise forgiveness amount was not specified in the meeting record. Commissioners asked for clarification on forgiveness and project costs; staff pointed to the agenda report for details. - Scope: The ordinance describes construction of approximately 6.5 miles of dedicated transmission main; staff told commissioners supply-chain and price changes since the original estimate make 5 to 5.5 miles more likely with the $12 million loan. - Schedule: Staff estimated the construction as roughly a 14-month project after notice to proceed, but noted availability of a 24-inch pipeline and other materials could delay start and affect duration. - Route and function: The project would extend from about 1 mile south of Snake Tank Road toward the overpass at Rail Road Road in Tularosa; it is intended to convey water to whichever location the commission selects for the RO plant and to create dual conveyance capacity to improve resilience.

Commission action and vote: Commissioner Warren Robinson moved approval of the ordinance for first publication; Commissioner Crystal Guthrie seconded. The motion passed on a 7-0 vote.

Next steps: Staff said right-of-way issues that previously delayed the project have largely been resolved and the loan package is with the State Land Office for final review. Construction notice to proceed and pipe availability will determine the actual start date and how many miles the $12 million will cover.