As all protests to the City's 1983 G-80 Water Rights application have been dropped, the City's contract attorneys Stein and Brockmann requested the Office of the State Engineer (OSE) expedite approval of the City of Gallup Permit No. Application No. G-80/SJ-1491 (Attachment 1).
In response to this request, OSE detailed requirements for the City to update its 1983 hydrologic report compiled by John Shomaker and Associates (Attachment 2), so that the OSE Hydrology Bureau Staff would not conduct its own analysis.
As a result, Water and Santitation Department (WSD) Staff requested cost estimates for this work to be completed this summer (Attachments 3 and 4). The cost estimate for the technical report update is $39,804.41.
In addition to this report, OSE Staff and Management will require follow on meetings and legal briefs and documents to be submitted in support of the City's unprotested applicaton. In order to cover both legal and techical costs, WSD Staff proposes a budget adjustment from the Water Enterprise Fund of $80,000 to complete the application process. This budget adjustment would cover costs accured by Stein and Brockmann and DePauli Engineering/John Shomaker and Associates.
There is currently $105,547.90 encumbered from Fund 202 for the G-22 Water Rights Application. The G-22 application has been approved by OSE and the permit has been issued. There are follow on tasks detailed in the permit application that will not allow the full amount of the remaining balance to revert to Fund 202.
Rather than ask for additional funding for the G-80 application, Staff proposes the following:
- A G-80 project be created for tracking costs and expenditures in support of the G-80 water rights application.
- The current $105,547.90 balance encumbered from Fund 202 for the G-22 water rights appliction be split out as follows:
- Appropriation of $80,000 be transferred from the G-22 project to fund the G-80 water rights application.
- The remaining $25,547.90 balance encumbered for G-22 to remain in place to complete tasks required by the OSE G-22 permit.
There is the potential that additional funding will be required for G-22 permit compliance, but as revenue impacts from the COVID-19 pandemic to all City accounts are still being examined, this would allow work to move forward with respect to both G-80 and G-22. If additional funding is required, a request will be made after fund balances have greater clarity.
Staff recommends approval of budget adjustment and expenditure of up to $80,000 from existing authorized encumbrances from Fund 202 for the completion of the G-80 water rights application process, as detailed above.