$8 million NAD Bank grant to bring first-time sewer to five colonias; city authorized to begin procurement

City staff told commissioners June 30 that the North American Development Bank (NAD Bank) is expected to certify a collection-system project that would award Rio Grande City about $8 million to bring first‑time sanitary sewer service to five colonia communities on the western side of the city's sewer service area.

Michael John of Hun Engineers said the bank is expected to certify the project on Sept. 1, 2026; if certified, the city would receive approximately $8 million in grant funds to construct the collection lines. "We're looking at connecting about 532 residents in that area," John said. He added the scope includes about 38,891 feet (approximately 7.4 miles) of pipeline and estimated construction would take roughly 600 calendar days, with final construction targeted for August 2028.

Why it matters: Extending first‑time sewer service to colonias reduces public-health hazards, supports future economic development, and brings households into municipal service networks. John said the project timeline aligns with the wastewater treatment plant expansion, which staff expects to finish commissioning in December 2027 and provide needed capacity for the new connections.

Procurement schedule: Staff presented a tentative procurement timeline — first advertisement Sept. 16, second on Sept. 23, a pre‑bid conference Oct. 7, and bid opening Oct. 28 — and requested authorization to start the procurement process. Commissioners discussed schedules and reimbursement; staff confirmed grant funding will cover design and construction and that the city will seek reimbursements from grant programs as work progresses.

Next steps: Council authorized staff to begin procurement planning and to return with award recommendations after the formal bid process.