City Council approves $2.7M change order for automated meter infrastructure project

The Amarillo City Council convened on July 8, 2025, to discuss several key agenda items, primarily focusing on the ongoing automated meter infrastructure project and associated change orders.

The meeting commenced with a positive update on the construction progress, highlighting the effective management by Tim Reed and David Prescott. The council swiftly moved to approve item 9C, awarding a contract related to the project, with unanimous support from the members present.

Following this, item 9D was introduced, concerning change order number two for the automated meter infrastructure project. The project is currently 72% complete, with 57,000 of the planned 79,000 meters installed. The original funding for the project was set at $29.5 million, sourced from a combination of a $1 million grant and a $28.5 million loan from the Texas Water Development Board (TWDB), which features a 0% interest rate.

The proposed change order involves the addition of 3,300 three-quarter inch brass meters and 2,000 one-inch metal meters, among other components, with an anticipated cost increase of $2.7 million. This would raise the total contract amount to approximately $26.5 million. The council was informed that the remaining funding from the TWDB for the project stands at $2.1 million.

The discussion also addressed the reasons for the additional meters, which were not included in the original contract due to the need for prior approval from the TWDB. The council noted that the project has been well-received by the community, with minimal complaints reported during the rollout. The new system is expected to enhance customer service by allowing residents to monitor their water usage in real-time once the billing system is fully integrated by the end of December 2025.

The council members raised questions about the financial aspects of the project, including the potential for earning interest on the loaned funds and the implications of the grant funding. Staff confirmed that any interest accrued would need to be utilized for approved projects under TWDB guidelines.

In conclusion, the meeting underscored the council's commitment to advancing the automated meter infrastructure project while ensuring fiscal responsibility and community engagement. The next steps will involve finalizing the change order and preparing for future funding opportunities as the project progresses towards its completion target of December 31, 2025.