Board of Public Utilities backs $5.84 million change order to advance Jemez Mountain waterline work

LOS ALAMOS — The Los Alamos Board of Public Utilities on Sept. 17 recommended that County Council approve Change Order No. 4 to IFB 2025-08 with Double E Construction to add the Phase 2 trenching scope to the Jemez Mountain Fire Protection phase 1 contract.

Board Chair Gibson and members voted 4-0 to recommend the change order and a related budget revision. The motion, as read into the record, authorized a change order amount of $5,308,536.29 and a contingency of $530,853.63 for a total of $5,839,003.89 plus applicable gross-receipts tax and directed that the budget revision 20-26-13 be forwarded to council for approval.

The change order will extend trenching up the mountain by about 11,500 feet and add paving of the road patch. James Allardy, the project presenter, told the board the new scope covers the same trench alignment "from the bottom up" and would complete the trenching for the water line and two conduits (electric and fiber). "We are proposing tonight that we add all of phase 2 to it," Allardy said.

Allardy and staff described several cost advantages to adding Phase 2 now rather than rebidding. Allardy told the board, "This change order, we're gonna realize $1,200,000 savings." He detailed components of that figure on the record: avoided remobilization, lower traffic-control costs because the road will be closed, unit-price carryover for pipe, and elimination of a temporary winter patch that otherwise would have cost an estimated $160,000–$200,000. He also said the contractorprovided trencher capability that removed rock risk and "saved us $400,000 in phase 2 because we have no more rock and risk out there."

Project status and budget

Staff reported the overall project remains near the previously discussed $18 million budget. Allardy said about 72% of the project is under contract and that the tank is roughly 85% complete; he estimated approximately $972,000 of contingency would remain after the change order. With the change order included, staff said they expected to remain near the project's budgeted total, acknowledging the usual small uncertainties.

The board heard that the change order removes several schedule risks and keeps the program on track for the utilitytarget of delivering water toward the ski area by next fall (the date discussed in the presentation). Staff said most electrical work was intentionally omitted from this change order and will be carried into a later bid phase so that potential FEMA grant funding can be applied if awarded.

FEMA grant uncertainty and long-lead items

Board members pressed staff on the status of federal grant funding. Utility manager Shelton told the board the FEMA reimbursement request for the project is for about $4,900,000 and that the grant agreements for four state projects remain unsigned at the state level. "The secretary Noem is the person who has to sign the grant agreement," Shelton said, adding that the grants are stuck in the state pipeline and that the county has not received executed grant agreements to date.

Shelton told the board that long-lead electrical equipment (transformers, switches and wire) may need to be ordered soon to meet delivery timelines and that those items are estimated at roughly $2.3 million. He said the county and the Pajarito Recreation Group (which the county is partnering with for the ski-area connection) are discussing how to handle procurement of long-lead items if FEMA funding is not in hand in time.

Cost-sharing and next steps

Allardy said the county will bill the Pajarito Recreation Group under the existing cost-share agreement and expects to present the group with a roughly $1 million invoice under the payment schedule. The change order was described as allowing the county to complete phases 1, 2 and 4 with already-budgeted funds and partner commitments while deferring major electrical equipment installation to the later phase pending grant outcomes.

Board action and vote

A motion recommending approval of Change Order No. 4 to IFB 2025-08 (Double E Construction) and forwarding the budget revision to council passed on a 4-0 roll call. Roll-call votes recorded in the meeting were Member Hollingsworth: yes; Member Heffner: yes; Member Stromberg: yes; Chair Gibson: yes.

The board did not adopt the change order itself; the action taken was a recommendation to County Council for final approval. Staff said they would return to council with the requested contract change order and budget revision.

Why it matters

If council approves the recommended change order, the county would consolidate trenching work now to reduce remobilization and rock-related risk, accelerate delivery of permanent pavement on the affected road, and preserve schedule flexibility to try to meet the projecttimeline for water service to the upper mountain. The project also illustrates the countydependence on external grant approvals: staff identified several million dollars of equipment that may still rely on FEMA or partner contributions.

Next milestones noted by staff include county forwarding the recommended change order and budget revision to council for final action, procurement decisions on long-lead electrical equipment, and continued coordination with Pajarito Recreation Group and FEMA on funding and schedule.