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Boerne authorizes change order to boost natural‑gas capacity in northeast quadrant

2555943 · March 11, 2025
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Summary

Council approved a change order not to exceed $854,450 to add piping to the East Loop Natural Gas Main Phase 2 project after staff reported winter peak‑demand pressure drops that briefly affected a small number of customers.

The Boerne City Council on March 11 authorized a change order for the East Loop Natural Gas Main Phase 2 project to increase capacity to the city's northeast quadrant, approving a total contract not to exceed $854,450.

Director of Utilities Michael Mann told the council the project will add a six‑inch feed tied into a newly installed eight‑inch main and nearby looped three‑ and four‑inch mains. Staff said the work will leverage recently completed capacity and reduce reliance on a rented backup natural gas supply trailer the city used during several cold days earlier this winter.

—Most of that is from capital infrastructure contributions from developers,— Mann said when reviewing system financing earlier in the meeting; later in the gas discussion he explained operational causes of pressure events: —the average demand that's about 1 and a half times what it historically has [been].— He attributed the change largely to higher peak draw from modern high‑demand appliances such as tankless water heaters.

Staff said the system used the temporary supply trailer on eight days during the recent cold period and that on two of those mornings localized pressures dropped low enough to prevent some appliances from operating for an estimated two to three hours for a small number of customers in the Esperanza area. The proposed change order was presented to take advantage of available CIP funding and favorable construction pricing.

Council members asked technical and policy questions. Councilman Scott asked whether meter size affects billing; staff replied the utility currently charges actual meter installation cost for larger meters but does not differentiate monthly customer charges by meter size and that a rate‑structure change could be considered. Councilwoman Wright asked whether the work would eliminate the need for backup trailers; staff said it should relieve pressure issues for the near term but modeling will determine when further capacity is required.

Staff explained Local Government Code change‑order approval thresholds and said the recommendation is to authorize a maximum total expenditure set at just under 25% over the original contract amount so the city has funds to execute the change order and incidentals. The council approved the resolution authorizing the city manager to enter into and manage the change order by a 4'00 vote.

Next steps: staff listed planned follow‑up tasks including executing the change order, coordinating tie‑ins with the Hertford Ranch homeowners association where applicable and returning to council with system modeling and any recommended rate or developer‑cost proposals before the next winter season.