Alcoholic MIL

My MIL is a high functioning alcoholic. My husband and I both don't feel safe letting her watch our baby, but my brother in law lets her watch his children now 4 & 2.
We are living with them for 3 months while our house is getting built. So we have been able to witness first hand just how "bad" things get.
We tried to have a discussion with my brother in law and father in law about her alcoholism, but they are in denial. My Aunt in law and Grandfather in law had an intervention for her years ago, which resulted in her switching from scotch and water to Canadian club and Diet Coke. She went to therapy for a while but eventually stopped putting the blame on her sister and father.
My husband and I are not sure how to approach this topic with mixed support from the family. It seems like those closest to her are in denial while the extended family is aware of the issue, but not sure what to do.
So what is our best approach when we tell her she will not be able to watch our baby while she drinks/has this problem?