Amarillo advances $22M pre-design phase for $1B wastewater expansion program

Amarillo advances $22M pre-design phase for $1B wastewater expansion programThe city is evaluating MBR, oxidation ditch, and conventional treatment technologies for its Hollywood and River Road facilities, utilizing a Construction Manager at Risk (CMAR) delivery model to control escalating costs.

City Council reviewed two Phase 2 engineering agreements with Kimley-Horn totaling $22.19 million for the Hollywood and River Road plants.

The expansion aims to address capacity concerns and aging infrastructure, with a total project cost target of $1 billion or less.

Engineers will evaluate three treatment technologies—conventional activated sludge, membrane bioreactor (MBR), and oxidation ditch.

The city will use a Construction Manager at Risk (CMAR) to lock in guaranteed maximum pricing and pre-purchase equipment.

Funding includes a $20 million state grant and two pending $60 million low-interest loans from the Texas Water Development Board (TWDB).

Amarillo is progressing with a major expansion of its Hollywood and River Road wastewater treatment plants, moving into a $22.19 million pre-design and conceptual engineering phase with Kimley-Horn. During a July 14, 2026 meeting, the city council reviewed the engineering contracts ahead of an expected formal award later in the month. The massive infrastructure program, driven by capacity constraints, regulatory permitting requirements, and a projected population growth to 250,000, has a total target cost of $1 billion or less. The Phase 2 engineering agreements include $9.397 million for the Hollywood facility and $12.8 million for the River Road facility. Staff noted the River Road plant requires more complex work due to higher industrial loading from the Northeast Interceptor. Kimley-Horn project manager Kyle Cobista outlined that the pre-design phase will evaluate three treatment solutions: conventional activated sludge, membrane bioreactor (MBR), and oxidation ditch. MBR is being heavily considered for its smaller footprint and higher quality effluent, which could facilitate future water reuse revenues, while oxidation ditches are being evaluated for their operational simplicity. To manage the massive capital outlay and mitigate inflation, Amarillo is utilizing a Construction Manager at Risk (CMAR) delivery method. Bringing a CMAR on board during the conceptual design phase will allow the city to lock in guaranteed maximum prices for early work packages and pre-purchase long-lead equipment before design is fully complete. The Phase 2 engineering work is primarily funded by a $20 million special appropriation grant. To fund construction, the city is in the final stages of securing a $60 million low-interest loan from the Texas Water Development Board (TWDB) for the Hollywood plant, with a second $60 million application submitted for River Road. The design phase is expected to run through mid-2028, with construction stretching into 2031 or 2032. Both new facilities will be built on city-owned property adjacent to the existing plants, allowing current operations to continue uninterrupted.