Gallup Council OKs $548K Funding For Rico Street Water Line
The Gallup City Council voted to award a water line replacement project at the intersection of Rico Street and NM 118 to H.O. Construction Inc., approving a budget adjustment of just over $548,000 funded through the New Mexico Finance Authority. The work will replace an aging main, add a fire hydrant and isolation valves, and is expected to improve water service and fire protection for nearby neighborhoods.
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The Gallup City Council on Tuesday approved funding and a contractor for a targeted water infrastructure project at the intersection of Rico Street and NM 118, authorizing a budget adjustment of just over $548,000 and awarding the contract to H.O. Construction Inc. Financing for the project will come through the New Mexico Finance Authority, with roughly 90 percent provided as a grant (about $493,000) and the remaining 10 percent as a loan (about $55,000).
Plans call for installation of an 8-inch C900 PVC water line that will include one new service and meter, isolation gate valves and a new fire hydrant. The existing water line will be abandoned in place, and crews will place the new pipe beneath NM 118 using a jack-and-bore method. The jack-and-bore technique is included in the plan to enable installation under the state highway without open-cut trenching through the roadway.
City leaders also discussed bid differences that stemmed from separate work tied to Americans with Disabilities Act-compliant sidewalk construction. That sidewalk work factored into contractors’ bids, producing variations the council examined before moving forward with the water-line award. A previous phase of work along Rico Street from NM 118 to Fire Station No. 4 has already been completed, providing continuity to the utility upgrade along the corridor.
For residents and businesses in the immediate area, the project has several practical implications. The new main and added fire hydrant will bolster firefighting infrastructure and may improve pressure and reliability for customers served by that segment of the system. Because the new pipe is being installed under a state highway, the project will require coordination with state road authorities and staged work plans; the selected installation method is intended to reduce traffic impacts on NM 118 compared with open-cut methods.
The council’s approval moves the project into the implementation phase, with H.O. Construction responsible for carrying out the work under the city’s specifications. The grant-and-loan structure through the New Mexico Finance Authority limits the city’s direct borrowing burden while advancing capital improvements. Council review of bid differences tied to ADA elements highlights how related public-works components can affect contractor pricing and project scope.
Residents should expect local notifications about construction timing, possible short-term service interruptions related to tying in the new line, and any traffic controls near NM 118 while work proceeds. The council action aligns with ongoing efforts to modernize Gallup’s water infrastructure and maintain public safety standards along an important corridor in McKinley County.
