Bay City council approves street equipment purchases, grant admin contracts and sets $5M bond intent

Bay City’s City Council on Tuesday approved several procurement, grant and infrastructure items and set a notice of intent to issue up to $5 million in certificates of obligation toward the proposed public safety facility.

The council approved the immediate purchase of a Timco Model 600 street sweeper (available demonstrator unit) and declared the existing 2019 sweeper surplus. Herb, presenting the street department request, said the city has spent more than $40,000 on repairs to the current machine and that “we continue to throw good money against bad, and it's time to put a band aid on it and and do something different.” Phil Wilson, regional representative for Industrial Disposal Supply (Timco dealer), described the sweeper’s stainless-steel hopper and warranty and said Timco offers operator training.

Council authorized the purchase to be paid from street reserves (cash) and approved disposal of the current unit; members also discussed financing and the option for a dealer-provided in-house financing plan. The vote to buy the sweeper carried with no recorded opposition.

Other procurement approvals included the purchase of a 2026 Freightliner 108 SD conventional-cab dump truck through HGAC contract pricing; council approved declaring two older dump trucks surplus and exploring trade-in or auction options to offset cost.

On grants and contracts, council approved a contract with GrantWorks Inc. to provide grant administration services for the city’s Community Development Block Grant-Mitigation (CDBG-MIT) award (GLO contract number 24-065-149-F008). The grant administration fee is $192,101.80 with a $20,000 environmental-services line (total $212,101.80); staff said the contract is federally funded and requires no city match. Council also approved a related resolution to adopt the CDBG-MIT project (total grant award described in staff comments as $3,189,500 for engineering and construction in two drainage areas).

Council unanimously approved a formal rejection of proposals submitted in response to RFP 20240823269DM for disaster debris monitoring and confirmed the city will participate with Matagorda County in a jointly procured debris monitoring contract.

On infrastructure access, the council approved a temporary construction easement with International Bank of Commerce to allow utility relocation and construction staging tied to TxDOT’s Avenue I and Sixth Street bridge replacement; staff said the easement is temporary for one year to allow relocation work and will be followed by a permanent easement after survey and alignment are finalized.

The council also adopted a resolution updating the city’s Economic Development Program and tax-abatement guidelines under Texas Local Government Code Chapter 380. Staff emphasized the policy is a generic framework; council may adopt more specific internal guidelines in the future.

On debt matters, the council debated a proposed notice of intent to issue certificates of obligation for the public safety building. After discussion about cost growth for the project and options such as New Markets Tax Credits, the council voted to set a notice of intent with a principal cap of $5,000,000 (this action preserves planning flexibility while staff continues to refine final issuance amounts). Staff said the $5 million cap would keep the city’s tax-rate impact flat given current debt roll-off; further decisions on final issuance will follow design and cost refinements.

In executive session, council authorized the city manager to proceed with a survey and plat to convey the EAC building and parking lot to the EAC with a condition that the city retain access rights. That motion passed on reconvening to open session.

Votes at a glance

- Item 7: Purchase Timco Model 600 street sweeper (Timco / Industrial Disposal Supply) — approved; funding: street reserves (cash); vote: unanimous recorded. - Item 8: Purchase 2026 Freightliner 108 SD dump truck (HGAC contract) — approved; funding: budgeted amount with trade-in/auction to offset the shortfall; vote: unanimous recorded. - Item 9: Reject all proposals for RFP 20240823269DM (disaster debris monitoring) — approved; city to join county contract; vote: unanimous recorded. - Item 10: Temporary construction easement agreement with International Bank of Commerce (for TxDOT Avenue I & Sixth St. bridge project) — approved; vote: unanimous recorded. - Item 11: Contract with GrantWorks Inc. for CDBG-MIT grant administration — approved; fee: $192,101.80 (admin) + $20,000 (environmental); vote: unanimous recorded. - Item 12: Resolution adopting CDBG-MIT project (GLO contract 24-065-149-F008) — approved; total grant: described by staff as $3,189,500; vote: unanimous recorded. - Item 13: Resolution amending Bay City Economic Development Program (Texas Local Government Code chapter 380) — approved; vote: unanimous recorded. - Item 14: Notice of intent to issue certificates of obligation for public safety facility — approved with principal cap of $5,000,000 (motion carried); vote: recorded majority. - Executive action (Item 15): Authorize city manager to survey/plat and proceed with conveyance conditions for EAC property — approved; vote: unanimous recorded.

Council members and staff said the approvals will allow immediate work on drainage design, equipment replacement and grant administration while city staff continues to refine financing plans for the public safety building and to provide follow-up materials requested by the council.