Council approves 4% water/wastewater rate increase, awards FM 664 transmission contract and extends temporary chlorine-dioxide service

The Waxahachie City Council on Monday approved a package of actions affecting the city
s water system: a 4% increase in water and wastewater rates, a construction contract for a 24-inch transmission main and associated sewer work tied to TxDOT
s FM 664 project, and a one-year rental and service contract for chlorine dioxide generation equipment.

Chad Tusteson, finance director, said the 4% increase is included for water and wastewater to help keep pace with growth, address inflationary cost increases, and also prepare for future capital needs.
He told council the city remains competitive with peer cities and that the city is in the lower quartile of combined water and wastewater fees among comparable municipalities.

Kumar, the presenting engineer, described the FM 664 water transmission and sanitary sewer project as necessary because TxDOT is widening FM 664 and the city must relocate utilities; the project also includes construction of a 24-inch transmission main to supply more water from the SoCal water treatment plant. The council approved a construction contract with EGW Services in the amount of $3,264,868, with a contingency of $163,245 and a supplemental appropriation of $502,710 from the wastewater fund unrestricted reserve to support the sanitary sewer portion. Staff said seven sealed bids were received and EGW was the lowest responsive bidder; engineers and staff contacted references before recommending award. The project is funded from the 2023 water fund bond sale and a portion will be reimbursed under a TxDOT agreement; staff estimated 60%–70% reimbursement depending on right-of-way items.

Separately, the council approved a one-year equipment rental, maintenance and chemical-purchase contract with Evoqua Water Technologies for chlorine dioxide generation equipment at the Howard Road and Robert W. Sookle water treatment plants. Staff recommended the short-term award because an alternate vendor required site visits and the lead time for replacement equipment is roughly six weeks; staff will pursue a competitive procurement in the meantime.

Why it matters: The rate increase provides revenue to operate and maintain growing water and wastewater systems; the transmission main is a capital step to increase supply and accommodate TxDOT right-of-way changes; the temporary chlorine dioxide arrangement preserves treatment operations while staff completes procurement.

Discussion and concerns: Council asked how Waxahachie compares to peer cities and whether EGW Services has local experience; staff said due diligence contacted references in other municipalities and that rejecting the lowest qualified bidder would require substantial cause and restarting the bidding process. Council members pressed on contingency and supplemental funding and asked staff to monitor costs and reimbursement timing from TxDOT.

Formal actions: Ordinance adopting the water and wastewater rates effective Oct. 1, 2025 — approved. Motion to award construction contract to EGW Services for $3,264,868 with $163,245 contingency and supplemental appropriation $502,710 from wastewater reserves — approved. Contract award to Evoqua Water Technologies for chlorine dioxide generator rental/maintenance/chemical purchase for a one-year period — approved.

Implementation notes: The city will track TxDOT reimbursement claims, hold contract administration for the EGW project, and proceed with a competitive procurement for long-term chlorine-dioxide service while the one-year contract is in place.