Clute council approves Ameresco audit of water meters after debate over $45,000 breakage fee

The Clute City Council on Aug. 28 unanimously approved Resolution 40‑2025 to contract with Ameresco for an investment‑grade audit (IGA) of the city’s automated water‑meter system, a first step that could lead to meter replacement under a performance‑based contract.

Council members and staff said the audit would evaluate meter accuracy, investigate antenna and battery issues and test meters in a laboratory to determine whether a larger renewal project is warranted. The contract as presented includes a $45,000 “breakage fee” tied to IGA development and a clause that gives Ameresco sole discretion to discontinue the audit if it determines expected benefits cannot be achieved.

City staff told the council the IGA itself would not obligate Clute to proceed with a full replacement project. Staff said the city included money in the enterprise fund budget to begin the process and that a major project would be split into two annual budget items if the council later approves it.

Several council members pressed staff on the contract language. One council member said the sole‑discretion clause and placement of the $45,000 fee “jump off the page,” and asked whether the city would pay the fee if Ameresco stopped the work. Staff responded that if Ameresco discontinues the audit because it cannot achieve the projected benefits, the owner would not be charged for IGA activities; the breakage fee would apply when the owner decides not to proceed after a completed audit or development phase.

Staff also described Ameresco as a performance‑service provider that had worked in the region and was previously affiliated with Siemens; the firm would lead field testing, remove and send meters for lab testing and provide a recommendation to Clute on next steps. Staff said other vendors had approached the city, including firms that proposed cellular communications as a way to avoid transmission issues the city is currently experiencing.

The council voted to adopt the resolution without amendments. The resolution authorizes the mayor or city manager to execute the contract and states that performing the IGA does not obligate the city to move forward with any resulting capital project.

Council members who voted in favor were Calvin Triplett, Jeff Chris, Eric Aguilar, Nicole Maddox, Joe Lopez and Francis Vaughn. The motion passed unanimously.

The council’s decision starts the IGA phase; if the audit recommends changes, future council action will be required before any meter replacement or performance contract work begins.