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Santa Fe council approves multimillion-dollar extensions for city water repair contracts
Summary
The City Council approved amendments to multiple water-utility price agreements to increase contract totals, extend terms to 2031 and authorize related budget transfers to support priority main replacements and on-call repairs.
The Santa Fe City Council on a unanimous vote approved amendments that increase several price agreements used for city water-main replacement and on-call water-utility repairs and extended multiple contract terms to June 30, 2031.
City water staff told the council the contract extensions are intended to reduce procurement work and allow continuous priority line replacements and emergency repairs. A water-division staff member said, "This contract basically is used by the water division to replace outdated and frequently breaking water mains across the city."
Councilors approved amendment No. 3 to price agreement 21-0484 with Subsurface Contracting Inc., raising compensation by $13,303,193.75 to a new total of $20,000,000, and extending the contract term to 06/30/2031. The council also approved a related budget amendment to move $3,000,000 from water capital projects into WIP construction to fund work under that contract.
Separately, the council approved increases and term extensions for on-call and priority replacement agreements with AAC Construction LLC and other contractors: an amendment to AAC Construction’s on-call agreement increasing compensation by $4,373,437.50 (new total $6,000,000) and another priority replacement amendment increasing compensation by $14,958,124.70 (new total $20,000,000). A separate amendment to a subsurface contracting on-call agreement increased that contract to $6,000,000. All motions passed on roll-call votes.
Council discussion focused on operational efficiency and avoiding repeated rebidding; staff said the original bid documents inadvertently limited terms to four years and extending to 10 years will save time and effort. The contracts are intended to allow the water division to respond to main breaks, perform priority main replacements and handle work transmission/distribution crews cannot complete with current staffing.
The approvals activate multiple line-replacement projects and related budget transfers authorized by the council; staff will carry out the work under the established price-agreement terms.
