The Las Cruces City Council today took the first formal step in the process to acquire the water utility assets of a water utility serving areas inside and outside city limits. The Council’s action involves Jornada Water Company (Company), a privately-owned water utility that had earlier notified the City it was for sale and offered the City first option to purchase. A tentative purchase price of $16.4 million was negotiated for the water utility assets of the Company that serves approximately 3,500 residential and commercial customers on the East Mesa, Mesilla Park, south valley and Las Alturas areas.
The sale includes all water system infrastructure and 5,961 acre feet of perfected and unperfected groundwater rights. Parts of the Company system already meet Las Cruces Utilities’ standards and include 20 well sites, eight booster stations, eight storage tanks and approximately 90 miles of two-inch to 12-inch water lines.
Today’s Council action involved the condemnation of the Company’s water utility assets as part of the acquisition process. Under Sec. 1.03 of the Las Cruces City Charter, “The city may exercise its power of eminent domain to condemn private property, real and personal, which is employed for a public purpose where by resolution the city council determines that such condemnation will serve the public interest.”
“Acquiring the Company’s water utility assets will allow the City to provide water service to areas inside and outside the city limits where the utility already provides wastewater and natural gas service,” said Dr. Jorge Garcia, Las Cruces Utilities director.
In addition to acquiring the Company’s water utility assets, the City would employ the Company’s four personnel, initially on a contract basis then potentially as full-time staff.
The next step in the process is July 14 when the Las Cruces Utilities Board will consider recommending the issuance of utility revenue bonds to finance the purchase. Then on August 6, City Council will vote to issue the bonds to fund the purchase.
Information from city of Las Cruces