The Amarillo City Council is taking more time before deciding whether to move $70,000 from reserve funds to support inspections of more than 8,000 water service lines under the federally mandated Lead and Copper Rule Improvements Service Line Inventory Project.
During Tuesday’s regular meeting, the council took no formal action on the funding request, instead asking city staff to explore whether the work could be done more cost-effectively in-house. The delay means the issue will likely return to the agenda in a future meeting.
EPA Mandate and Deadlines
The Lead and Copper Rule was first adopted by the U.S. Environmental Protection Agency (EPA) in 1991 to limit the amount of lead and copper in drinking water, materials that can leach into the water supply from older pipes and plumbing fixtures. In October 2024, following a final White House ruling, the EPA issued updated Lead and Copper Rule Improvements (LCRI) requiring water systems nationwide to locate and inventory all service lines, including identifying whether they contain lead or galvanized steel, by October 2027.
Under the revised rule:
Any water lines installed before the January 1, 1989 federal lead ban and not yet inspected will be classified as “unknown.”
All “unknown” lines must be investigated and documented by October 2027.
If any lead or galvanized lines are found—even just one—water utilities must submit a replacement plan by November 1, 2027.
All identified lead service lines must be replaced by 2037.
The updated requirements reflect the EPA’s stated goal of achieving 100% lead pipe replacement nationwide within ten years. However, some city officials noted that regulatory changes could be possible under the Trump Administration.
Amarillo’s Progress and Remaining Work
Amarillo has already made significant progress toward the inventory requirement. Assistant Director of Utilities Shannon Tollison told the council that the city has conducted 46,000 service line inspections so far, but about 33,000 remain.
Of those remaining inspections, approximately 8,189 are in neighborhoods with older infrastructure and non-standard meter boxes, where typical quick inspections are not possible. According to Tollison, these areas require specialized equipment and dedicated staff.
“They don’t have a standard meter box for us to look into and do a two-minute inspection,” Tollison explained. “They need dedicated staff and dedicated equipment to be able to do those service line inventories running in parallel with our staff who are going to do the remaining of the 33,000 minus the 8,189 that the consultant would perform.”
So far, 252 water lines in Amarillo’s system meet the criteria for qualifying galvanized or lead lines. While that number is a fraction of the total inventory, the presence of even a single such line triggers the requirement to create a replacement plan.
The utility department hopes to complete the inventory ahead of the 2027 deadline—ideally by the next budget cycle—so that funding for any replacement plan can be incorporated into upcoming budget requests.
The $70K Proposal and a Larger Contract Request
The $70,000 transfer discussed Tuesday was tied to a larger request for funds to contract with LJA Environmental Services, LLC for Phase 2 of the Lead and Copper Rule Improvements service line inventory.
That contract—valued at $818,900—would cover inspections in the two districts with older infrastructure, handling the 8,189 challenging service lines. City staff recommended hiring the consultant so that the inventory process could move forward quickly while in-house teams continue inspecting the rest of the city.
The $70,000 would come from reserve funds to help evaluate the logistics and complete the consultant-handled inspections.
Councilmembers Seek an In-House Option
Despite the urgency of the federal deadline, several councilmembers expressed interest in exploring whether the city could handle the inspections internally—especially if that would save money and build long-term capacity for other water and sewer projects.
Councilmember Cole Stanley said that adding employees and equipment could have lasting benefits beyond the immediate project. He noted that the city often relies on outside contractors to make repairs when a water main breaks. Additional in-house staff could help reduce that dependence in the future.
“In the usage of us utilizing outside contractors to do a lot of breaks and repairs, I think there is room to grow on that,” Stanley said after the meeting. “And so if we could see both the savings on the front end of not outsourcing the study and still stay in compliance, but then once the study is complete, transition them into repairmen, I believe that that’s a good expenditure of those FTEs.”
Councilmember Tommy Prescott also voiced support for evaluating an in-house approach, noting that equipment purchased for the inventory project could be used on other projects later. “I would personally like to see if we could do it internally, get the equipment that was needed, and see a price comparison of that, because we might be able to use that in other projects,” Prescott said.
Councilmember Place 4 Les Simpson emphasized the difference between temporary contracting costs and permanent staffing costs, saying, “If we’re outsourcing this, this is only a temporary expense. I mean, unless we’re planning on taking on FTEs, they do the work, and then letting them go, then we’ve got some type of permanent expense associated with this.”
Staff to Report Back in 60 Days
In response, Assistant City Manager Donny Hooper agreed to take 60 days to evaluate the costs and benefits of each approach. His analysis will consider the cost of hiring and training new staff, purchasing the required equipment, and whether those resources could continue to provide value for the city after the inspections are complete.
That evaluation will also weigh the risk of delaying inspections against the hard 2027 compliance deadline.
Other Water and Sewer Projects Discussed
The $70,000 item was one of several infrastructure funding requests presented to the council Tuesday.
North Heights 2-Inch Line Replacements
Hooper asked the council to approve additional funds for the North Heights 2-inch water line replacement project. The project has exceeded its original budget due to unforeseen issues and will require more funding to complete.
4th Avenue Sanitary Sewer Main Line Expansion
Another request involved expanding the scope of the sanitary sewer main line project on 4th Avenue between Taylor and Polk Streets. According to the meeting agenda, construction crews discovered unexpected conditions:
Electrical and communication utilities were located directly above the city’s existing sewer main.
There was a significant elevation difference between the existing main and a previously constructed main.
These conditions meant that the planned tie-in connection at the original location was not possible, requiring redesign and expansion of the project.
Balancing Cost, Compliance, and Capacity
The council’s decision to delay the $70,000 transfer reflects a broader tension faced by many municipalities under the new EPA requirements: how to meet strict federal deadlines without overspending or missing opportunities to build local capability.
On one hand, contracting with experienced firms can speed up compliance, ensure technical precision, and reduce the immediate staffing burden. On the other, developing in-house capacity—while slower to start—can lead to long-term cost savings and more resilient municipal services.
For Amarillo, the choice is complicated by the fact that the city’s utilities department already handles a high volume of water line breaks and repairs, often outsourcing that work. Bringing more of that work in-house could save money over time, but it requires up-front investment.
The 60-day evaluation ordered by the council will aim to quantify those trade-offs.
Regulatory Uncertainty
Another factor influencing the council’s decision is potential change in federal regulatory direction. While the current rule, finalized in October 2024, is clear in its requirements, some city officials noted that the scope or timeline could shift under a new presidential administration.
For now, however, the deadlines remain firm:
October 2027: All service lines inventoried, with unknowns identified and classified.
November 1, 2027: Replacement plan submitted if any lead or galvanized lines are found.
2037: All qualifying lead service lines replaced.
With 33,000 inspections still remaining—and more than 8,000 requiring specialized approaches—the clock is ticking for Amarillo.
Looking Ahead
When the council reconvenes on the issue in a future meeting, members will have Hooper’s cost comparison in hand, along with an updated assessment of staff capacity, equipment needs, and contractor availability.
If Amarillo opts to hire and equip new staff for the project, the city could potentially retain those workers to handle repairs, replacements, and other infrastructure work long after the lead and copper inventory is complete. If it chooses to contract the inspections, the work could be completed more quickly, but without building that long-term capacity.
Either way, the city’s utilities department faces a substantial workload in the coming years—not just to meet the federal mandate, but to keep Amarillo’s water and sewer systems functioning smoothly.
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