Council hears staff recommendation to issue debt for wastewater upgrades; debate over including public works facility

City staff told El Campo City Council that improvements to the city’s wastewater treatment plant are necessary to remain in compliance with the Texas Commission on Environmental Quality (TCEQ) and recommended the council authorize debt issuance to fund construction.

Staff reported that bids returned higher than earlier estimates and that engineering for the project is already paid. The bid line item presented in the council packet was described by staff as $1.5 million (which includes engineering for that bid package); earlier estimates had been in the $1.329 million range. Staff said the overall wastewater project previously had been expected to be near $3 million; earlier designs would have run as high as $5 million before redesign. Because the city has exhausted certain Certificates of Obligation (COs) on other projects (Avenue F and Highway 71 work), staff recommended issuing debt on the utility side to complete the wastewater improvement project.

Separately, the city owns a house on East Jackson that staff has proposed repurposing as a public works facility and asked the council whether to include funding for that facility in the same debt issuance. Staff said including the public works facility in the package would create a ceiling of about $3.5 million (which staff included to cover architecture and contingencies), and that packaging the two issues together would avoid the added costs of a separate bond issuance (financial advisor and bond counsel fees). Staff estimated the inclusion would raise the tax roll by “around a penny, a little over a penny” in the year of issuance.

Councilmembers expressed sharp questions about cost estimation, past oversight and alternatives: several members urged caution given past projects that came in over budget, asked whether staff had examined internal funding or cuts, and asked whether the public works facility should be taken to a voter referendum. Other councilmembers argued that delaying will increase construction costs and that infrastructure in the ground (sewer and water lines) should take priority.

Council directed staff to proceed with planning and financing steps for the wastewater treatment plant (staff will return with financing details) and to bring back a more detailed presentation on the public works facility — including proposed layouts, hard cost estimates, square footage needs, projected inflation assumptions and options (retain and renovate the existing house vs. demolish and build new). Staff said they will provide images of the existing building, options for renovation or replacement, and more contractor-based estimates before a final debt issuance decision.

Council did not take a final financing vote on the public works facility at this meeting; the direction was to move forward with the wastewater financing planning and to return with the requested materials on the public works facility for future council action.