Weatherford Municipal Utility Board Meeting – September 25, 2025

The Municipal Utility Board of Weatherford, Texas, met in regular session at 12:00 PM on Thursday, September 25, 2025, at City Hall. The meeting included approval of the consent agenda with one item pulled for clarification, adoption of the Fiscal Year 2026 budget, and a discussion on funding alternatives for the EPA- and TCEQ-required Lead Service Line Replacement program. Staff provided updates on electric, water, and wastewater capital projects. The meeting adjourned at 12:48 PM.

Consent Calendar

• Items 5.A through 5.L were approved unanimously with no discussion. These included authorizations for professional services (SEnergy, TechServ), material and equipment purchases (Anixter, Texas Electric Cooperatives, Techline), contract renewals (B&L Pole Line, AMP Utility, Horton Tree Services, chemical vendors, pump suppliers, water/wastewater parts suppliers, laboratory equipment, aggregate materials) totaling over $10 million in aggregate amounts.
• Item 5.M (renewal of Bid #2023-005 for annual asphalt and concrete repairs to Riddle Excavating, LLC, not to exceed $219,750) was pulled for discussion. Director Rick Shaffer clarified that the renewal covers only asphalt repair items (items 1–4); the concrete portion (items 5–9) is being rebid and will return for board consideration. The item was subsequently approved by a motion from Zack Smith, seconded by Tom Novak.

Public Comments & Testimony

• No members of the public addressed the board on non-agenda items.

Discussion Items

Adoption of November and December 2025 Meeting Schedule (Item 6.A)

• Assistant City Manager Chad Marbut proposed meeting dates of November 20, 2025 (Thursday) and December 18, 2025 (Thursday) to accommodate holidays. The schedule was approved on a motion by Lindsey Hester, seconded by Tom Novak.

Adoption of FY26 Municipal Utility Fund Budget (Item 6.B)

• Budget Manager Ashley Esquivel presented the proposed budget, unchanged from earlier presentations. Key figures:
  • Total revenues: $80.6 million
  • Total expenses: $76.3 million
  • Net operating result: $4.3 million
  • Contributions to capital funds and reserves: $5.5 million (water capital, wastewater capital, electric vehicle reserve, substation reserve)
  • Projected working capital at end of FY26: $19.3 million (150 working days), leaving an available balance of $7.7 million
  • Expense breakdown: $8.8 million direct operational costs, $252,000 one-time requests, $14.1 million cost allocations, $10 million debt service, $29 million purchase power cost (40% of fund-wide expenses, passed through to customers as power cost adjustment).
• Board member Ken Davis inquired about the wastewater fund deficit and whether the capital expenditure of $560,000 would lead to increased debt service. Staff agreed to provide a written response to the full board. The resolution (R2025-18) was approved on a motion by Ken Davis, seconded by Heidi Wilder.

Lead Service Line Replacement Funding Alternatives (Item 6.C)

• Director Rick Shaffer presented options for complying with the EPA’s Lead and Copper Rule Improvements (LCRI), which require replacement of all lead and galvanized service lines in the system by December 2037. Weatherford aims to complete replacements by November 2027.
  • Inventory identified 419 addresses needing replacement: 2 lead service lines and 417 galvanized lines.
  • Estimated cost: ~$2.1 million (based on $3,000–$5,000 per line).
  • The Texas Water Development Board (TWDB) funding application (up to $15 million) includes 51% grant ($1.07 million) and 49% low-interest loan ($1.03 million).
  • Options for the loan repayment portion: (1) fund from utility rate revenues (staff recommendation), (2) require customer reimbursement at time of replacement, or (3) require customer reimbursement over time.
• Board discussion raised several concerns and suggestions:
  • Mayor Paschall noted that the galvanized lines were installed under old building codes, supporting staff’s recommendation to use rate revenues rather than charging customers.
  • Questions about homeowner refusal: City must make four attempts; if refused, annual notification and new owner education continue.
  • Liability and inspection: Contracts will require contractor warranties and city inspection; property owners sign an agreement after replacement.
  • Use of non-selected plumbers: Homeowners may use their own plumber only if they forgo city funding; otherwise, they must use one of the contractors selected through competitive bidding.
  • Board member Ken Davis suggested a not-to-exceed amount for the aggregate replacement cost; staff confirmed that a not-to-exceed amount will be brought back when bids are presented for approval.
  • City Attorney Rob Allibon noted that a notice could be recorded on property titles to inform potential buyers of remaining service line material, and that the offering of funded replacement could have a time limit.
• The board expressed consensus to proceed with staff’s recommendation (funding the private-side replacement from utility rate revenues). No formal vote was taken; the item was for direction only.

Staff Reports

Electric Department Update (Joe Farley)

• Completed projects: West Russell Street and Charles Street distribution upgrade (allows load transfer from Live Oak substation); Highway 51 feeder upgrade from Samuel Drive to East Loop (final tie-in completed).
• Under construction: Weatherford Point commercial development (underground feeder near Costco).
• In design: South 51 feeder extension from BB Solder to Airport Road (to serve future development).
• In planning (joint with Encore): Fort Worth Highway feeder tie (Railroad substation to Lake Weatherford substation) and Bankhead Drive feeder (north side of I-20). Both require joint construction coordination with Encore.
• Residential developments in various stages: 10 developments (e.g., Rangewood, Waterford Park, Chisholm Trail) totaling nearly 1,100 new meters (from ~17,000 existing).

Water/Wastewater Capital Projects (Matt Wilpa, filling in for Bill Smith)

• Columbia Street water/wastewater project (6,000+ linear feet): ahead of schedule and within budget.
• Town Creek Interceptor Wastewater Improvement Project (4,000 linear feet of 36-inch line, $2.7 million): on schedule and within budget.
• Board member Howard McClurkin raised a safety concern about construction activity near a parking lot used by children entering a dentist office; staff agreed to consider installing a temporary fence for separation.

Water Plant Expansion (Rick Shaffer)

• Phase 2 (filter process building): Subgrade piping completed; duct bank and foundation work ongoing; slab foundation expected November; filter equipment delivery by year-end. Completion estimated July 2026, with startup and performance testing in August–September 2026. On schedule and within budget.
• Phases 3 and 4 design (30% review): New intake structure will be larger, with pumps capable of drawing from two depths, giving access to over 80% of lake volume. Phase 4 includes two additional GAC contactors (contactors 7 and 8) as directed by the board last month. Overall schedule and costs remain on track.

Key Outcomes

• Approved: Minutes of August 28, 2025 meeting.
• Approved: Consent agenda items 5.A through 5.L (collectively) and item 5.M (asphalt renewal).
• Approved: November and December 2025 meeting schedule (Nov 20, Dec 18).
• Approved: Resolution R2025-18 adopting the FY26 Municipal Utility Fund Budget ($80.6 M revenues, $76.3 M expenses).
• Consensus direction (no formal vote): Staff to proceed with funding the private-side lead service line replacements using utility rate revenues (49% loan portion covered by rates), with a not-to-exceed amount to be brought to the board when bids are presented. Staff will also explore time limits for the offer and potential title recording.
• No action taken: Future agenda items (none); citizen comments (none).