Council votes to terminate Turkey Peak financing agreements, seeks one-year extension

At a Mineral Wells City Council meeting, members voted 7-0 to terminate two financing agreements and ask the Palo Pinto County Municipal Water District No. 1 to request a one-year extension from the Texas Water Development Board for financing tied to the Turkey Peak reservoir project. The action followed presentation of construction bids that came in far above the district's earlier estimate and extensive council questioning about costs, timing and rate impacts.

The decision matters because the lowest construction bids received by the district’s engineer, HDR, ranged from roughly $350 million to more than $450 million, with three bids clustered near $390 million–$400 million — well above an earlier planning estimate of about $200 million. Council members and the district said those higher numbers could quickly translate to much larger utility bills for city ratepayers unless outside funding or different contracting methods lower costs.

City and district officials described the current point as a pause for further analysis rather than a cancellation. Howard Huffman, general manager of Palo Pinto County Municipal Water District No. 1, told the council, “where we are today is is a decision making point. Do we continue moving forward with financing, or do we halt the financing project and put Turkey Peak on hold for a year, giving staff and and the professionals time to to dig back into this project.” District officials said they will investigate alternate bidding approaches, including a construction-manager-at-risk (CMAR) method that can solicit and obligate lower line-item bids from multiple contractors, and will continue discussions with the Texas Water Development Board (TWDB) about other partnerships or state funding programs.

Officials summarize…