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City awards design–build contract to remodel PNC building into police department; funding includes state grant

Truth or Consequences City Commission · July 23, 2026
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Summary

Commission authorized a design–build contract to remodel the PNC building into a new police facility with a low bid reported at about $504,006.66; staff said the project is funded with a $375,000 state legislative grant, a general-fund allocation and police gross-receipt-tax funds, and that a notice of obligation is required before executing the purchase order.

City staff recommended awarding the design–build contract to the selected bidder for conversion of the PNC building into a police department facility. Staff said four firms submitted proposals, two finalists were interviewed, and Jay Carazal (recorded in the packet with variant spellings) was selected on qualifications and price. The packet and staff comments presented a base-bid figure (packet language included both $504,666 and $504,006.66 in different places); staff later confirmed the bid documentation and said funds are available: a $375,000 state legislative grant, $200,000 from the general fund and gross-receipt-tax funds from the police department. The commission authorized the contract award and directed that the purchase order not be executed until the city receives the notice of obligation required by the grant.

Commissioners discussed schedule and liquidated damages; staff said the contractor would have roughly 280 days to complete construction. "We have the project budget and are confident they can complete it in about five months," staff said, and the commission approved the motion to award the contract pending final notice of obligation. The city manager will execute applicable documents once the notice is received.