Council approves expanded engineering contract for Northeast waterline and 2‑million‑gallon tank; staff seeks funding options
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Summary
The Odessa City Council unanimously approved April 22 an amended engineering contract with Kimley‑Horn to design 7.7 miles of 24‑inch waterline and a 2,000,000‑gallon elevated storage tank, increasing the professional‑services total to $3,268,400.
The Odessa City Council on April 22 approved an amendment to the professional services agreement with Kimley‑Horn to add engineering and 30% roadway schematic design for the Northeast waterline and a proposed 2,000,000‑gallon elevated storage tank.
City utilities staff and consultants said the project will include about 7.7 miles of new 24‑inch waterline, an elevated storage tank to add roughly 2 million gallons of storage capacity, and preliminary roadway and drainage design to coordinate future right‑of‑way acquisitions. Kimley‑Horn’s amendment will add $1,305,100 to the existing contract, bringing the total contract cost to $3,268,400. Staff requested $1,000,000 from water impact fee revenues and $305,100 from pioneer wastewater cell revenues to fund the amendment.
Consultants said the larger construction estimate remains in the tens of millions: an initial construction cost estimate for the waterline and tank was discussed at about $41 million. Kimley‑Horn described a timeline that would complete design in spring 2026, advertise and bid in late 2026, and build through approximately fall 2028, assuming funding and easement acquisitions.
Council discussion focused on alternatives to an elevated tank, project funding, and coordination with planned roadway improvements. Engineers and staff said elevated storage has operational and regulatory advantages — including meeting state public‑water system storage guidance and lowering long‑term pump‑station and pipe‑upgrade costs — versus relying solely on pumped ground storage, and that elevated storage provides resilience in power outages. Staff also said impact fee funds can be used for capital improvement projects listed in the water master plan and that the city currently holds water impact fee revenue available to apply to the contract amendment.
Council approved the amended professional services agreement unanimously; staff and consultants said they will proceed with survey, easement negotiations and design work and return with updated cost and funding plans during the capital project process.
Ending: The council authorized the additional design work and directed staff to pursue funding sources (including Certificates of Obligation and Texas Water Development Board loan programs) and to begin easement work; construction would follow design and permitting pending successful funding procurement.
