Water authority approves construction agreement

CLOVIS — The Eastern New Mexico Water Utility Authority is heading to Portales in a few weeks.

The authority, during its Thursday meeting, approved a construction agreement for the Finished Water 3A phase of the Eastern New Mexico Rural Water System.

Beginning July 6, contractor Smithco Construction will begin work on the 11.5-mile portion of pipeline from Cannon Air Force Base to the Portales water system.

The $19.284 million job requires Smithco reach substantial completion within 360 calendar days and final completion in 420 calendar days.

The project, according to an authority release, will include a 20-inch transmission pipeline.

“We are very proud to have reached this milestone of connecting to Portales,” said Portales Mayor and Authority Vice Chair Ron Jackson. “This project brings jobs not only to a New Mexico company, but also to local sub-contractors, construction workers and businesses. We continue to move forward in a positive manner with this pipeline project.”

The entire Finished Water 3 project covers 16.5 miles to reach the Portales system. The remaining 5 miles will be part of Finished Water 3B, with the funds already set aside by the authority.

The FW3A approval happened through five different meeting actions — an engineer recommendation of the award to Smithco, an authorization for Administrator Orlando Ortega to sign notice of award, an execution of agreement with Smithco, an authorization for Ortega to sign the notice to proceed and an authorization allowing Ortega to approve change orders of $50,000 or less.

In other business at the Thursday meeting:

• The authority approved a preliminary fiscal year 2022 budget. The budget includes $28.147 million in budgeted expenditures, much of it on the FW3 project, and leaves the authority with a $19.46 million estimated ending cash balance.

The authority anticipates $312,000 in professional services and $276,732 in administration expenses. Total member contributions are $1.71 million.

• Texico City Councilor Max Carter was sworn in for a one-year term. According to the governing documents for the authority, Texico and Elida are represented on the authority with a rotating board position that flips every year. He replaces Elida Mayor Durward Dixon.

• The authority approved an annual renewal of an accounting contract with Hinkle & Landers, and approved a contract with DeAun Willoughby CPA, PC for 2021 fiscal year audit.

• A three-year office lease agreement was reached to keep the authority offices in the Sitterly Professional Center. The $13,980 expense for the year, Ortega said, is a $15 per month increase over the prior agreement.