The Amarillo City Council had a full agenda Tuesday, tackling everything from the possibility of a forensic audit to the next phase of the city's massive wastewater treatment project. Council members also approved a change that could make it easier for businesses to operate along historic Sixth Street.

One of the biggest discussions centered on the city's audit committee and whether it should take on a larger role.

Mayor Cole Stanley said the committee, which currently meets primarily to review the City's annual audit, could be doing much more.

"The audit committee could do so much in helping us understand where we're at, where we're trying to go," Stanley said.

Stanley suggested the committee could help vet firms if the City decides to move forward with a forensic audit, an idea that has been discussed over the past several council meetings.

Not everyone was convinced the City is there yet.

Councilmember Les Simpson questioned whether there's enough evidence to justify the cost, asking Internal Audit Director Uneill Gerber and Chief Financial Officer Lola Ogunremi if they had found anything that would warrant a forensic review.

Both said they had not.

Gerber, who said he has more than 25 years of accounting experience and has participated in hundreds of audits, explained that forensic audits are typically used when there's evidence or allegations of fraud.

Simpson said that's why he believes the council should answer some basic questions before moving forward.

"I would just say this: before we consider authorizing a forensic audit, I think we owe it to the taxpayer to answer a few basic questions. Has anyone presented credible evidence that city funds have been stolen, intentionally misused, or fraudulently diverted? That seems to me the indication of the need for a forensic audit," Simpson said.

Councilmember Tim Reid saw it differently.

The former FBI agent said a clean audit doesn't always tell the whole story, pointing to the case involving three former City employees who pleaded guilty to embezzling more than $600,000 in federal housing funds.

Reid said a forensic audit could help reassure both city leaders and the public.

"I know if I were coming in as the chief financial officer, I would want to have that type of audit done, so I know that I have completely clean books and that everything that the city is doing is on the up-and-up," Reid said.

Stanley said possible areas for a forensic audit could include community investment program projects, sewer and water projects, and American Rescue Plan Act funding.

"I'm not saying that this is the limit or that this is the only thing we should look at," Stanley said. "What I'm saying is these are glaring examples of things that we've struggled with firsthand, and these were just given as examples."

City Manager Grayson Path recommended bringing a proposal back in August that outlines how the audit committee could work with the City's internal audit department before taking any further steps.

He also cautioned against having the committee determine the scope of a forensic audit because it includes current and former City staff.

Wastewater project moves into next phase

The council also received an update on Amarillo's long-term wastewater treatment project, one of the largest infrastructure efforts the city has ever undertaken.

Assistant City Manager Donny Hooper said the City will ask the council later this month to approve about $22.2 million in engineering contracts with Kimley-Horn for the next phase of the project.

The work will continue planning for upgrades to the aging Hollywood Road and River Road wastewater treatment plants. The Hollywood Road facility is more than 60 years old, while the River Road plant is more than a century old.

A $20 million grant secured through the Texas Legislature is expected to cover most of the engineering costs, and the City is also pursuing another $120 million in grant funding.

"So in this phase, Kimley-Horn is going to take the projects beyond the planning and into the work needed to define the projects at a much higher level," Hooper said.

The overall project is expected to cost somewhere between $860 million and $1.3 billion.

"It comes out to around $860 million at the lowest price, to about $1.2, $1.3 billion at the highest price... So I'll tell you this: Our target is we're trying to get this project to a billion dollars or less," Hooper said.

If everything stays on schedule, construction could wrap up in 2031 or 2032.

Sixth Street businesses get parking relief

The council also unanimously approved an ordinance removing the off-street parking requirement for businesses along historic Sixth Street.

City staff said most customers already park on the street, making the current requirement unnecessary. The change is expected to make it easier for existing businesses to operate and for new ones to move into the district.

Council members also approved a temporary landscape maintenance contract worth up to about $400,000 after the City ended its previous agreement because the contractor failed to meet performance standards.

Councilmember David Prescott cast the lone vote against the contract, saying he couldn't find much information about the company online.

The Amarillo City Council's next regular meeting is scheduled for July 28, with budget workshops beginning July 16.