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Rio Grande City accepts water-loss study, authorizes up to $2.5 million for meter program pending TWDB reimbursement
Summary
The Rio Grande City Commission accepted a consultant's water-loss study that found low confidence in prior reporting and rising losses, and authorized disbursement authority up to the budgeted $2.5 million so AquaWorks can be paid while the city awaits reimbursement from the Texas Water Development Board.
The Rio Grande City Commission on Nov. 19 accepted a water-loss study that shows the city's water accounting has low confidence and a rising trend in reported losses, and authorized staff to release up to $2.5 million to cover meter program invoices once the city receives reimbursement from the Texas Water Development Board.
Consultant Christina Liao of CAP Associates presented the study under the TWDB economically distressed-area program and told commissioners that the city's historical reporting had limited reliability. "On average, over the five years, you had about 63% confidence in the numbers," Liao said, noting aging equipment and inconsistent recording practices as contributors to uncertainty. Liao said the trending increase in water losses is real even if point estimates carry low confidence, and recommended operational fixes and capital work including continued meter replacement and more isolation valves.
City staff told the commission that AquaWorks has invoiced for new meters and installations. Staff reported invoices totaling $2,170,382.05, that 5,646 meters have been purchased (including 96 one-inch and 123 two-inch meters) and that 2,225 residential meters had been installed as of the invoices presented. The project is being pursued under the Texas Water Development Board drinking-water fund; staff said they have submitted reimbursement requests to TWDB and are awaiting approval.
To avoid interrupting vendor work, the commission approved a motion to authorize fund disbursement up to the budgeted $2,500,000 for the meter project but directed that those funds be released only after the city receives reimbursement from the TWDB. Staff noted the vendor has agreed to the payment arrangement and that Lonestar Bank's escrow and established project processes would be used to manage receipts and payments.
Why it matters: Accurate meter readings and reduced distribution losses can improve revenue capture and reduce waste, and the commission's vote enables continued meter replacements without requiring vendors to wait indefinitely for reimbursement. Commissioners asked for continued reporting on the TWDB reimbursement timeline and to present detailed invoice documentation at the December meeting.
Next steps: City staff will continue to submit and follow up on TWDB reimbursement requests, provide monthly updates on meters installed and invoices submitted, and return to the commission with documentation if additional disbursement authority is needed.
