Council awards groundwater–surface water loop contract to JM Pipeline to increase system resiliency

The Seguin City Council voted Thursday to award the groundwater–surface water loop construction contract to JM Pipeline LLC, accepting the low bid and authorizing a construction contingency to ensure project completion.

City staff explained the project will physically connect Seguin’s groundwater and surface-water distribution systems — which now operate largely independently — to provide redundancy and better utilize the city’s full water portfolio. The connection is intended to improve reliability for major industrial customers along Eighth Street and elsewhere and to give operations staff flexibility to serve demand during repairs or outages.

Tim (city utilities staff) told council the city received seven bids for the project, with JM Pipeline submitting the low bid of about $3.087 million. Staff recommended a not-to-exceed amount of $3.4 million to include contingencies. Engineers from the city’s consultant conducted reference checks and confirmed JM Pipeline has completed similar projects to the satisfaction of owners and engineers.

Council members asked whether the loop would fully serve heavy industrial demand during an outage; staff said the loop will provide redundancy and buy time for repairs but will not fully replace the larger interconnect project planned for future design and construction. That future interconnect, when completed, is intended to fully meet industrial demand if a major source is taken offline.

The council approved the contract by voice vote and authorized the contingency and certificate-of-obligation funding. Construction was described as a multi-month build with a planned completion according to the contract schedule.

Why it matters: By linking the city’s two supply sources, the project increases system resilience for large industrial water users and expands the city’s ability to manage its total water rights and supplies.