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Heath approves $796,500 design contract for three wells and signals intent to reimburse water costs with bonds
Summary
Heath City Council authorized a professional services agreement with Kimley‑Horn to design Wells 2–4 for the city’s Water Bridge Plan (NTE $796,500) and unanimously approved a resolution declaring intent to reimburse related expenditures with future bond proceeds (maximum reimbursement cited at $70,000,000).
The Heath City Council on Oct. 28 authorized a professional services agreement to design three new municipal wells and adopted a resolution saying the city intends to reimburse water‑system expenditures with future bond proceeds.
Council voted to allow the city manager to execute a design contract with Kimley‑Horn (referred to in materials as Kimberly Horne and Associates) for the design of Wells 2 through 4 at a cost not to exceed $796,500. Staff described the scope — topographic and field surveys, subsurface utility engineering, geotechnical work, 60% and final design deliverables, permitting and construction contract administration — with a design completion target of June 2026 and a notice‑to‑proceed expected in September 2026.
"The total is not to exceed $796,500," Brian Creed, public works director, said while outlining the eight tasks in the scope and the draft schedule for well completion. A council member recused from the item citing a potential conflict under the Texas Government Code; after discussion the motion passed.
In a related item the council adopted Resolution No. 251028A, presented by finance staff, declaring the city’s official intent under U.S. Treasury Regulation §1.150‑2 to reimburse prior and current expenditures associated with the Water Bridge Plan — which includes new wells, ground storage and an elevated storage tank — with future bond proceeds. Finance staff stated a maximum reimbursement amount of $70,000,000 and emphasized the resolution does not itself authorize issuance of debt or additional spending.
"This resolution preserves our ability to reimburse pre‑issuance capital costs once the debt is issued," Mr. Ayers, finance staff, said as he described the tax‑compliance review by bond counsel and the planned timing for debt issuance in early 2026. The council approved the resolution by voice vote.
What happens next: staff will finalize the PSA with Kimley‑Horn, start the engineering deliverables and continue financing discussions with the city’s financial advisor and bond counsel. The water‑system schedule presented by staff shows staged well completion and longer‑lead items (electrical and tank work) that will affect when individual wells become operational.
By the numbers: the Kimley‑Horn design agreement was presented as a not‑to‑exceed $796,500 contract, and the resolution cited a maximum potential reimbursement of $70,000,000; neither item by itself obligates issuance of bonds or commits construction funds.
