Title
Consider and take action on a resolution authorizing the submission of a grant application to the Texas Water Development Board Water Supply and Infrastructure Grant Fund for construction funding related to the WT1910 League City Parkway West Water Plant Project in an amount up to $9,000,000 (Executive Director of Development Services)
Background:
Approval of this item will authorize the City Manager to submit a grant application to the Texas Water Development Board (TWDB) Water Supply and Infrastructure Grant (WSIG) Fund for construction funding related to the City’s WT1910 League City Parkway West Water Plant Project.
House Bill 500, passed during the 89th Texas Legislative Session, appropriated approximately $1.038 billion to TWDB for water supply and infrastructure projects. The WSIG program is intended to fund eligible water supply and water infrastructure projects, with special consideration given to projects that are ready to proceed. The program provides 100% grant funding with no local match required.
Staff recommend submitting WT1910 for grant consideration. This project is referred to as the “New Water Well, BPS, and GST - LC Parkway West” with a Program Priority #19 in the City’s current FY26-30 CIP. The project was first identified in the City’s 2018 Master Water Plan and includes construction of a new water production facility generally consisting of one 1,500 gallon-per-minute water well, one 1.0 million-gallon ground storage tank, a 3,200 square foot building, chemical feed and SCADA systems, yard piping, a generator, four 1,000 gallon-per-minute booster pumps, electrical improvements, and miscellaneous site improvements.
Based on the City’s population, the WSIG program limits the City to requesting construction funding only. The program also requires the project to be ready to proceed at the time of application, meaning environmental coordination, land and easement acquisition, permitting, design, plans and specifications, and required regulatory approvals must be completed prior to application submittal. Staff have been working to ensure the WT1910 project was ready to bid in FY2027 per our CIP schedule with the plans currently under review by TCEQ. This TCEQ acceptance is the last step needed to satisfy the grant requirement.
The WSIG application deadline is July 30, 2026. TWDB grant commitments are anticipated in Fall 2026, with grant closings expected between Winter 2026 and May 1, 2027. All construction work must be completed by January 31, 2031.
While this is a competitive grant program and an award is not guaranteed, WT1910 is a strong candidate because it is a needed water infrastructure project that is already well advanced in design and can be positioned for construction if awarded. If the City is awarded funding, the grant could offset the construction costs that would otherwise be funded through the City’s planned bond and/or capital recovery fee funding sources. If the grant is not awarded, the project is anticipated to proceed to bid in 2027 using the planned City funding sources. All project work must be completed by January 31, 2031. Construction closeout documents including final payment requests must be submitted by February 28, 2031.
Staff recommends approval of this resolution to authorize submission of the WT1910 grant application to TWDB.
Attachments:
1. Proposed Resolution
2. Grant Pre-Approval Form
3. WSIG Program Information/FAQs
4. WT 1910 CIP Sheet
FUNDING
{X} If awarded, a new special revenue fund will be created to account for all expenses and grant revenue for the construction of the project. If needed, advance cash funding will come from the Water CRF funds programmed in the FY2027-2031 CIP for this project to cash flow the project expenses until grant funds are received.
STRATEGIC PLANNING
{X} Addresses Strategic Planning Critical Success Factor # 1 - Develop & Maintain our Infrastructure and Factor# 2- Financially Sustainable