OBSERVER CORPS REPORT – COUNTY COUNCIL – AUGUST 25, 2026
The video of the full meeting may be seen at: https://losalamos.granicus.com/player/clip/4884?view_id=2&redirect=true
Community Health Action Center, LEDA Grant for “The Rock” in White Rock, Gas Service Rates, Electric Coordination Agreement
The session was attended by Chair Randall Ryti, Vice Chair Ryn Herrmann, and Councilors Theresa Cull, Melanee Hand, Suzie Havemann, Beverly Neal-Clinton, and David Reagor.
Community Health Action Center
Miguel Jimenez, Senior Project Manager, provided the Council with an overview of the Community Health Action Center (CHAC) Project. Jimenez emphasized that planning was at an early stage. No site has been selected, nor has a design been finalized.
Jimenez said that CHAC aims to provide the community with a multi-service health center for co-located County and non-profit organizations to provide health, wellness, and social services for people in need. The scope of work for planning and preliminary conceptual design is based on CHAC Working Group Recommendations. Jimenez added that, in addition to Social Services Division staff, the center would include facilities for a Family Resource Center, Self Help, services related to Santa Fe housing, and a Crisis Response Team. Space is also envisioned for health clinics, possibly in a separate, but nearby, facility.
Also included in the preliminary concept is parking for temporary mobile units such as blood drives, veterans’ affairs, mammograms, mobile health unit, and a falls prevention trailer.
Jimenez said that three potential County-owned locations have been identified: 1000 Sombrillo Ct. (vacant lot), 1990 Diamond Dr. (unoccupied building in the Pueblo Complex), and 3540 Orange Ave. (existing building currently occupied by Family Strengths Network).
Funds for CHAC design are included in the Capital Improvements Projects (CIP) Fund for a total of $950K in FY 2026.
LEDA Grant for “The Rock” in White Rock
By unanimous vote (7–0), the County Council approved adopting a Local Economic Development Act (LEDA) project for public support of VE Holdings NM LLC, which is owned by local residents Janet Lovato and Timoteo Martinez.
The redevelopment project, called The Rock, is located at 116 and 118 State Road 4 in White Rock. Economic Development Administrator Maksim Khudiakov explained how the project would transform the vacant Time Out Pizza building at the site into a multi-service space offering a sports bar, a frozen yogurt shop, a laundromat, electric vehicle (EV) charging stations, and food truck pads.
The estimated construction cost is approximately $1.2M, with the total project cost exceeding $2.1M. VE Holdings is requesting $868K from the County’s Economic Development Fund in the form of a ten-year, zero-interest loan.
VE Holdings has applied separately for about $500K in Metropolitan Redevelopment Area (MRA) funding for exterior building improvements, site improvements, and related amenities. Its MRA application will be discussed in a future County Council meeting.
Gas Service Rates
Voting 6–1, the County Council approved the increased gas rates as recommended by the Board of Public Utilities. This single rate adjustment will go into effect September 1, 2026. Councilor Reagor opposed the rate increase.
Joann Gentry, Deputy Utility Manager for Finance and Administration, presented the case for the proposed gas rate increase. She explained that the increase would raise the average monthly bill for a residential customer by approximately 16 percent. According to Gentry, the proposed adjustment is intended to align gas rates with current operating costs while maintaining an appropriate level of net income.
Gentry stated that adopting the proposed rates would support stable utility operations and allow the Department of Public Utilities (DPU) to continue necessary infrastructure maintenance and replacement activities. Without the rate increase, she said, DPU would be required to reduce or defer some maintenance and replacement work, which could ultimately affect the reliability of the gas system.
The County staff report also noted a proposed amendment to the Utilities section of the County Charter that would remove the provision addressing the transfer of utility profits. The proposed amendment will be presented to voters on the November ballot. Depending on the outcome of the election, the charter amendment could affect how DPU develops and recommends future gas and electric rates.
Electric Coordination Agreement (ECA)
By a unanimous vote of 7–0, the County Council approved a new Electric Coordination Agreement (ECA) between Los Alamos County and the U. S. Department of Energy (DOE)/National Nuclear Security Administration (NNSA). The current agreement expires on August 31, 2026.
The new 10-year agreement is intended to accommodate ongoing changes in electricity markets, federal procurement requirements, and the County’s long-term resource commitments, including the 170-megawatt Foxtail Flats Solar + Battery Energy Storage System Project in San Juan County, New Mexico.
Ben Olbrich, Deputy Utility Manager for Power Supply, highlighted changes made to the draft ECA following his presentation at the Council’s August 18 meeting. He emphasized new language outlining processes for addressing potential issues if DOE chooses not to extend the agreement or exercises its right to terminate the contract “for convenience.”Olbrich explained that either scenario could leave the County solely responsible for meeting its obligations under its 20-year contract with Foxtail Flats. The County would also need to address the complex interdependencies between the County and DOE systems, particularly those involving financial and legal obligations associated with long-term resource commitments.