Bellaire officials present three options for aging wastewater plant; costs, timelines vary sharply

Bellaire officials on May 18 presented three options for the city's 80-year-old wastewater treatment plant and outlined the likely costs, timelines and trade-offs for each option. Mayor Pappas and Assistant City Manager and City Engineer Beth Jones told a community meeting that no final decision had been made but council will consider a related land-swap and contract with the City of Houston at an upcoming meeting.

The options presented were: rehabilitate or largely replace the existing plant on its current site (Option 1); build a completely new plant on the adjacent Public Works laydown yard (Option 2); or decommission the plant, build a force main and connect Bellaire's sewage to the City of Houston's Southwest Wastewater Treatment Plant (Option 3). "No decision has ultimately been made at this point in time," Mayor Pappas said as she introduced the meeting and the materials staff had commissioned.

Why it matters: the plant is at the end of its useful life, staff and HDR Engineering's assessment show. The city has spent "millions" on repairs over time and faces either substantial capital investment or operational changes that would affect bills, city debt and local land use. The November bond referendum that voters approved for water and wastewater projects provided $30 million in authority, but that sum would not fully cover the higher-cost rehab or replacement options.

Key figures and comparisons provided to residents: the city's current cost to treat wastewater is $2.54 per 1,000 gallons, while Houston's current wholesale charge is approximately $1.90 (referred to by staff as the City of Houston master fee/cost-of-service rate). Staff estimated that if Bellaire issued about $105 million in debt to fund a major on-site rehab or replacement, the cost to treat plus debt service would rise to roughly $14.52 per 1,000 gallons; a $131.7 million new-plant scenario would push that figure to about $16.78 per 1,000 gallons. By contrast, connecting to Houston would require an estimated $11.48 million of Bellaire capital (force main, lift station upgrades and related work after a negotiated credit) and would place treatment costs into Houston's enterprise rate structure.

Timeline and sunk costs: Jones said Option 1 or Option 2 (rehab or new build) are roughly three-and-a-half years from completion and would require about $1.6 million in additional capital expenditures to keep the existing plant operating during that period. Option 3 (decommission and tie to Houston) was presented as a roughly two-and-a-half-year project with about $655,000 in required capital to maintain compliance while the work proceeds. Jones emphasized that "no matter what" the city chooses it must continue to invest in the existing facility to meet Texas Commission on Environmental Quality (TCEQ) permit requirements while construction or connection occurs.

Regulatory, operational and neighborhood constraints: HDR's assessment and city staff noted that new builds or major rehabs must satisfy TCEQ permit conditions including buffer and flood-resilience standards. Bellaire's site lacks the standard 50-foot buffer from residences TCEQ typically expects, meaning the city would have to request a variance and add odor-abatement measures, which raise costs. Staff also said the plant sits within a flood-prone area and that subsidence in the region means new treatment infrastructure likely must be built higher and larger than older systems.

Interlocal option with Houston and land swap: staff described ongoing negotiations with Houston, which operates the nearby Southwest Wastewater Treatment Plant (capacity ~60 million gallons per day, current operations about 40 MGD, and a planned $250'$350 million rehab already reflected in Houston's rates). City staff said Houston representatives confirmed wholesale capacity and that any contract would be governed by cost-of-service rate-setting and long-term terms; staff indicated BelAire has discussed an 80-year contractual horizon with 20-year renewals. As part of the package, the parties have discussed a land exchange in which Houston would receive the decommissioned Ruffino landfill tract while Bellaire would obtain two Houston-owned tracts near the bayou; staff said appraisals show Ruffino is worth more and that Houston would provide an approximately $5 million credit to Bellaire's impact fees as compensation. Jones said the $11.48 million estimate for Option 3 already accounts for that credit.

Staffing and operations: Jones and other staff said staffing at Bellaire's plant is a persistent challenge. The plant has four full-time operator positions covering the wastewater plant and three water plants; Jones said those positions have often been unfilled, producing maintenance delays and outsourcings that carry added cost. Option 3 would eliminate Bellaire's need to staff a treatment plant, while Options 1 and 2 would continue to require certified operators.

Financing and city debt: the November bond referendum for water and wastewater projects passed by about 67% and provided $30 million in bonding authority; staff made clear that larger rehab or replacement costs would require the city to return to voters for additional bonds. One resident asked about Bellaire's current indebtedness; Mayor Pappas said the city currently carries roughly $92 million in outstanding debt. Staff modeled annual debt-service impacts (for example, annual debt service on a $105 million issuance was presented as roughly $6.82 million per year) and explained that the city could cover new debt through rates, property tax or a mix, but Bellaire's limited commercial tax base concentrates this burden on residents.

Next steps and council timing: staff said council will consider the land-swap and the contract with Houston at a council meeting on May 19. Mayor Pappas and Jones reiterated that the meeting was intended to inform the public and gather questions and that council had not yet chosen the final path. "If council decided that Option 1 or Option 2 were the best path forward, we would need to get more permission on bonds," Jones said. "We only have a $30,000,000 permission." Residents at the meeting overwhelmingly expressed support for Option 3 (decommission and connect to Houston) during the public comment portion, but no formal vote on the options occurred at the community meeting.

Ending: The council and staff made technical materials and maps available and said they will be on hand after the meeting to speak with residents individually. Council is scheduled to take up related contract and land-swap items at its May 19 meeting; any final choice about decommissioning, replacement or new construction would require council action and, if larger bonds are needed, possibly another voter referendum.