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Home My WebLink AboutPR 25005: AUTHORIZE THE CITY MGR TO APPLY FOR TWDB FINANCIAL ASSISTANCE FOR SABINE PASS WATER SYSTEM REHABILITATION U / City of -: am tOY % ort rtltur www.PortArthurTx.gov INTEROFFICE MEMORANDUM Date: June 15, 2026 To: The Honorable Mayor and City Council Through: Ronald Burton CPM, City Manager From: Calvin Matthews, P.E., Water Utilities Director RE: PR No. 25005—Authorize City Manager to Apply for TWDB Financial Assistance for Sabine Pass Water System Rehabilitation Introduction: This Agenda Item intends to seek the Council's approval to apply to the Texas Water Development Board's (TWDB) funding opportunity requesting financial assistance for the Sabine Pass Water System Rehabilitation. Background: The City's water distribution system in Sabine Pass needs rehabilitation as there are recurring water loss due to leaks in the area. As part of House Bill 500 (89th Legislature), there is the opportunity for one-time 100% grant funding available for water infrastructure and supply projects. The City is applying for $13,000,000.00 in financial assistance from the TWDB to provide for the costs of the Sabine Pass Water System Rehabilitation. The City must submit the complete application to TWDB by July 30, 2026. Budget Impact: The project is seeking financial assistance in an amount not to exceed$13,000,000 from TWDB grant. There is no City funding appropriation required if selected. Recommendation: It is recommended that the City Council approve PR No. 25005, authorizing the City Manager to submit the application for the TWDB funding as discussed and/or outlined above. "Remember,we are here to serve the Citizens of Port Arthur" P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743 PR No.25005 7/30/2025 cm Page 1 of 3 RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO SUBMIT A GRANT APPLICATION TO THE TEXAS WATER DEVELOPMENT BOARD (TWDB) FUNDING OPPORTUNITY AS PART OF THE TEXAS HOUSE BILL 500 (89TH LEGISLATURE) FOR THE POSSIBLE GRANT FUNDING OF $13,000,000.00 FOR THE SABINE PASS WATER SYSTEM IMPROVEMENTS PROJECT WHEREAS, the City of Port Arthur continually seeks funding opportunities to improve the safety and integrity of its water and sanitary sewer lines,utilities and critical infrastructure for its citizens; and, WHEREAS, as part of the Texas House Bill 500 (89th Legislature), one-time 100% grant funding is available for water infrastructure and supply projects from Texas Water Development Board(TWDB); and, WHEREAS,the City's Utilities Department staff,in collaboration with Arceneaux Wilson & Cole, LLC, has formed a scope, referred to as the Sabine Pass Water System Improvements project for this TWDB grant opportunity and is seeking financial assistance in an amount not to exceed$13,000,000.00; and, WHEREAS,the scope of work includes the replacement of approximately 6,875 liner feet of existing 8-inch water line from the existing ground storage tank facility on South Gulfway Drive to the intersection of South Gulfway Drive and Buford Street in Sabine Pass, as well as, the construction of restrained joints on approximately 11,000 linear feet of existing 16-inch PVC water line from the intersection of South Gulfway Drive and Buford Street to Keith Lake; and WHEREAS,this project will address a large area of recurring water loss due to leaks and also harden the City's existing potable water distribution system for the Sabine Pass area; and WHEREAS, it is in the best interest of the City to apply for this one-time 100% grant funding in which the City does not need to secure local matching funds. NOW THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS: THAT,the facts and opinions in the preamble are true and correct; and, THAT, the City Manager is hereby authorized to submit the required application documents, in substantially the same form as attached in Exhibit "A", for Texas Water Development Board's (TWDB) funding opportunity, as per House Bill 500 (89th Legislature) for PR No.25005 7/30/2025 cm Page 2 of 3 the Sabine Pass Water System Improvements Project, with an application deadline of July 30, 2026; and THAT,the City does not need to secure local matching funds if the application is selected for award for the Sabine Pass Water System Improvements Project; and, THAT a copy of the caption of this resolution is spread upon the minutes of the City Council. READ,ADOPTED,AND APPROVED THIS day of ,2026 at a Regular Meeting of the City Council of the City of Port Arthur, Texas,by the following vote: AYES: Mayor Councilmembers: • NOES: Charlotte M. Moses Mayor ATTEST: Christe Whitley Ned City Secretary PR No. 25005 7/30/2025 cm Page 3 of 3 APPROVED AS TO FORM: Roxann Pais Cotroneo City Attorney APPROVED FOR ADMINISTRATION: ofi \Nsip- Ronald Burton, CP V City Manager Suhail Kanwar, P.E. Director of Public Services Ca yin Matthews, P.E. Water Utilities Director APPROVED AS TO THE AVAILABILITY OF FUNDS: y yn) Boswell, FO Finance Director efi (1 (A/tbitAA Clifton . Williams Jr. PPB Purchasing Manager EXHIBIT A 6/15/26,1:17 PM Mail-Christian Martinez-Outlook t Outlook [NON-CoPA] WSIG (HB 500) Project Summary From Keith Zotzky<Keith.Zotzky@awceng.com> Date Mon 6/15/2026 7:46 AM To JESS LIAO <jess.liao@portarthurtx.gov>;Christian Martinez<christian.martinez@portarthurtx.gov> Cc Calvin Matthews <calvin.matthews@portarthurtx.gov>; Hani Tohme<tohmehani@yahoo.com> Good Morning, Please find below the requested project summary. House Bill 500, passed during the 89th Legislative Session, appropriated$1.038 billion in funds for water supply and infrastructure projects to the Texas Water Development Board. This is a one-time opportunity for a limited number of Texas communities to receive grant funding to implement water supply/water infrastructure projects. Once this initial appropriation is provided to communities by August 31, 2027,the TWDB will no longer have these grant funds available to provide financial assistance. HB 500 from the 89th Texas Legislative Session appropriated$1,038,000,000 from the general revenue fund to the TWDB but did not specify that the money was appropriated to a specific fund,which resulted as a deposit of the appropriated money into TWDB's general revenue fund. Additionally,the appropriation language did not provide authority for the TWDB to transfer that money into another TWDB fund or account. Therefore,the money must be provided for the stated purposes directly from TWDB's general revenue fund and not through an existing financial assistance program. Further, the purpose for the appropriation was stated in the HB 500 legislation as"water infrastructure and supply projects and grants as determined by the board." As the language is specific to water infrastructure and supply, the plan excludes wastewater and flood projects. This one-time 100%grant funding opportunity is aimed to address real or apparent water loss,TCEQ violations,water reuse, or upgrading/replacing water systems. Complete applications for this program are due by Thursday,July 30th at 11:59pm CST. The City of Port Arthur has formed a scope, referred to as the"Sabine Pass Water System Improvements"project for this funding opportunity to include the following: replacement of approximately 6,875 linear foot of existing 8" water line from the existing ground storage tank facility on South Gulfway Drive to the intersection of South Gulfway Drive and Buford Street in Sabine Pass. The project will also include the construction of restrained joints on approximately 11,000 linear foot of existing 16"PVC water line from the intersection of South Gulfway Drive and Buford Street to Keith Lake. This project will address a large area of recurring water loss due to leaks and also harden the City's existing potable water distribution system for the Sabine Pass area. Let me know if you have any questions. Thank you, al awn Keith Zotzky,P.E.(TX,LA),CFM/Vice President Keith.Zotzky-@awceng.com/281.543.2663 Arceneaux Wilson&Cole LLC 3120 Central Mall Drive Port Arthur,TX 77642 409.724.7888 awceng.com https://outlook.cloud.microsoft/mail/inbox/id/AAQkADIzMzZkMTk3LTcOMDEtNDdIZS1 hMTc4LWE3ZWNjMmViZjdhMgAQAGDoWrmSJUkvgfsvkJ6xKQ... 1/1 TWDB-0201 Rev 2/23 Application Affidavit THE STATE OF TEXAS § COUNTY OF JEFFERSON § APPLICANT CITY OF PORT ARTHUR § BEFORE ME,the undersigned,a Notary Public in and for the State of Texas,on this day personally appeared RONALD BURTON as the Authorized Representative of the CITY OF PORT ARTHUR ,who being by me duly sworn,upon oath says that: 1. The decision by the CITY OF PORT ARTHUR (authorit y,city,county, corporation,district)to request financial assistance from the Texas Water Development Board("TWDB")was made in a public meeting held in accordance with the Open Meetings Act(Government Code,§551.001,et seq,) and after providing such notice as required by such Act as is applicable to the CITY OF PORT ARTHUR(authority city,county,corporation,district). 2. The information submitted in the application is true and correct according to my best knowledge and belief. 3. The CITY OF PORT ARTHUR (authori ty,ty,city,county,corporation,district)has no litigation or other proceedings pending or threatened against it that would materially adversely affect its financial condition or ability to issue debt. 4. The CITY OF PORT ARTHUR (authori ty,ty,city,county,corporation,district) has no pending,threatened,or outstanding judgments,orders,fines,penalties,taxes,assessment or other enforcement or compliance issue of any kind or nature by the Environmental Protection Agency,Texas Commission on Environmental Quality,Texas Comptroller,Texas Secretary of State,or any other federal,state or local government, except for the following(if no such outstanding compliance issues,write in"none"): 5. The CITY OF PORT ARTHUR (authori ty,ty,city,county,corporation,district) warrants compliance with the representations made in the application in the event that the TWDB provides the financial assistance. 6. The CITY OF PORT ARTHUR (authori ty,ty,city,county,corporation,district) is or will become in compliance with all of its material contracts. 7. The CITY OF PORT ARTHUR (authori ty,ty,city,county,corporation,district)will comply with all applicable federal laws,rules,and regulations as well as the laws of this state and the rules and regulations of the TWDB. Official Representative Title: SWORN TO AND SUBSCRIBED BEFORE ME,by on this day of ,20 (NOTARY'S SEAL) Notary Public,State of Texas TWDB-0201A Rev 11/16 Application Filing and Authorized Representative Resolution A RESOLUTION by the CITY COUNCIL of the CITY OF PORT ARTHUR requesting fmancial assistance from the Texas Water Development Board; authorizing the filing of an application for assistance; and making certain findings in connection therewith. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR SECTION 1: That an application is hereby approved and authorized to be filed with the Texas Water Development Board seeking financial assistance in an amount not to exceed $13,000,000.00 to provide for the costs of SABINE PASS WATER SYSTEM REHABILITATION SECTION 2: That RONALD BURTON be and is hereby designated the authorized representative of the CITY OF PORT ARTHUR for purposes of furnishing such information and executing such documents as may be required in connection with the preparation and filing of such application for financial assistance and the rules of the Texas Water Development Board. SECTION 3: That the following firms and individuals are hereby authorized and directed to aid and assist in the preparation and submission of such application and appear on behalf of and represent the CITY OF PORT ARTHUR before any hearing held by the Texas Water Development Board on such application,to wit: Financial Advisor: HILLTOP SECURITIES.INC. 70 NE LOOP 410,SUITE 750 SAN ANTONIO,TX 78216 Engineer: ARCENEAUX WILSON&COLE LLC 3120 CENTRAL MALL DRIVE PORT ARTHUR,TEXAS 77642 Bond Counsel: HOLLAND&KNIGHT LLP 811 MAIN STREET,SUITE 2500 HOUSTON,TX 77002 PASSED AND APPROVED,this the day of ,20 . ATTEST: By: (Seal) TWDB-0201B Rev 11/16 Application Resolution - Certificate of Secretary THE STATE OF TEXAS § COUNTY OF JEFFERSON § APPLICANT CITY OF PORT ARTHUR § I,the undersigned,Secretary of the Texas, DO HEREBY CERTIFY as follows: 1. That on the 30TH day of J U N E ,20 26 ,a regular/special meeting of the CITY COUNCIL was held;the duly constituted members of the CITY COUNCIL being as follows: all of whom were present at the meeting,except the following: Among other business considered at the meeting,the attached resolution entitled: "A RESOLUTION by the CITY COUNCIL of the CITY OF PORT ARTHUR requesting financial participation from the Texas Water Development Board;authorizing the filing of an application for financial participation;and making certain findings in connection therewith." was introduced and submitted to the CITY COUNCIL for passage and adoption. After presentation and consideration of the resolution,and upon a motion made by and seconded by ,the resolution was passed and adopted by the CITY COUNCIL by the following vote: voted"For" voted"Against" abstained all as shown in the official minutes of the CITY COUNCIL for this meeting. 2. That the attached resolution is a true and correct copy of the original on file in the official records of the CITY OF PORT ARTHUR ;the qualified and acting members of the CITY COUNCIL on the date of this meeting are those persons shown above and,according to the records of my office,advance notice of the time,place,and purpose of meeting was given to each member of the CITY COUNCIL ;and that the meeting,and the deliberations of the public business described above,was open to the public and written notice of the meeting,including the subject of the resolution described above,was posted and given in advance of the meeting in compliance with the provisions of Chapter 551 of the Texas Government Code. IN WITNESS WHEREOF,I have signed my name and affixed the seal of the ,this the day of ,20 Secretary (SEAL)