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Utility board signals support for staff plan to pursue TWDB funding and cover city share for lead service-line replacements
Summary
Staff reported 419 addresses with lead or galvanized private-side lines and recommended using Texas Water Development Board funding (51% grant, 49% low-interest loan) and city utility revenues to cover the loan portion. The board gave direction to proceed and asked staff to return with contract and bidding details.
City staff asked the board for direction on complying with new EPA and TCEQ lead service-line rules that require water providers to remove lead and certain galvanized service lines. Rick Schaeffer told the board the inventory now shows two lead service lines and roughly 417 addresses with galvanized lines — 419 total addresses that will need work.
"So in total, there's 419 addresses that we need to go touch," Schaeffer said while outlining options for funding and implementation. He told the board the city applied to the Texas Water Development Board for up to $15 million; the application assumed a larger initial inventory, but with the current numbers staff estimates replacement costs in the range of $3,000 to $5,000 per service line. "If we just use on the high side, say, 420 services at $5,000 each, we're talking about $2,100,000," Schaeffer said.
Staff recommended accepting the TWDB funding package, which includes about 51% grant funding and a 49% low-interest loan. Schaeffer said the loan portion (roughly a little over $1,000,000) could be paid from utility rate revenues so customers would not face immediate reimbursement costs, or the city could require customers to reimburse the city up-front or over time. Schaeffer said the 2024 rate study supports the rate structure necessary for full private-side replacements.
Board members asked practical and liability questions about homeowner refusal, contractor responsibility and disclosure at change of ownership. Mayor/Chair raised concerns about market price inflation if the city procures large volume of plumbing work and suggested a possible"not-to-exceed" aggregate cap as a budget protection. Lindsey Hester said she was inclined to follow staff's recommendation: "my inclination is to follow your your recommendation." City attorney Rob Albon said staff could examine recording a notice that would run with the land so new owners are informed about private-side service-line material.
No formal appropriation was made at the meeting; the board provided direction to proceed with the competitive bid process and bring back construction-contract not-to-exceed amounts for formal approval.
