SUBJECT
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Consideration to authorize the City Manager to negotiate and execute a professional services agreement RFP 2026-021 with GrantWorks, Inc., in annual amount of $500,000.00 and $1,500,000.00 for the remainder of the contract term for grant research, writing, administration, and related program management support services for Utilities Department water, wastewater, and related capital and planning projects, as per the set hourly and flat rate listed in their proposal. The initial term of the contract shall be for one (1) year from the date of execution, with the option to renew for up to three (3) additional one (1) year periods, subject to mutual agreement and the availability of appropriated funds. Funding is available in the Waterworks Fund.
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PREVIOUS COUNCIL ACTION
None
BACKGROUND
The Utilities Department issued Request for Proposals (RFP) No. [2026-021] for professional grant research, writing, administration, and related program management support services to assist in securing external funding for Utilities Department priorities, including water, wastewater, drainage, resiliency, and related infrastructure and planning projects.
The goals of this procurement are to:
•Increase the number and competitiveness of grant applications submitted on behalf of the Utilities Department.
•Align the Utilities Department capital improvement program with federal, state, and other external funding opportunities.
•Strengthen compliance, reporting, and audit readiness for awarded grants.
•Avoid duplication of services already provided through existing engineering contracts for design and construction phase services.
The RFP was publicly advertised and posted in accordance with the City’s procurement policies and procedures. Proposals were received from the following firms by the published deadline:
•GrantWorks, Inc.
•The Ferguson Group
•Kimley Horn and Associates
•Weaver and Tidwell, LLP
•SEH Inc.
•Blais and Associates
•Lone Star Strategy Group
•Anese and Associates
•Eide Bailly LLP
All proposals were evaluated in accordance with the published criteria:
1.Experience of Firm - 30%
2.Prior Work Performance - 30%
3.Capacity to Perform - 20%
4.Cost Proposal - 20%
Based on the evaluation, GrantWorks, Inc. ranked as the most qualified proposer and offered the best overall value to the Utilities Department when considering experience, prior performance, capacity, and cost together. Key factors supporting the committee’s recommendation include:
•Extensive experience providing grant services to Texas local governments and utilities, with a substantial portfolio of water, wastewater, drainage, and resiliency projects.
•Demonstrated success in securing and managing significant levels of federal and state grant funding across multiple programs applicable to Utilities infrastructure and planning.
•Sufficient staffing depth, standardized processes, and tools to support an ongoing portfolio of grant applications and active grant administration.
•A proposed fee structure that is competitive and consistent with similar professional services contracts.
Under the contemplated agreement, GrantWorks, Inc. will provide grant research, grant application development, grant administration, and related program management support services for Utilities Department projects. GrantWorks will coordinate closely with Utilities Department staff and existing engineering firms. GrantWorks will not perform project design or construction phase engineering services and will not serve as engineer of record. The scope of services will be managed specifically to avoid duplication of services already provided by engineering and construction management contracts.
VIVA LAREDO PLAN ALIGNMENT
Alignment Rating:
Moderate - Indirectly supports or contributes to the intent of a verbatim goal or policy from the Viva Laredo Plan.
Supporting goal(s)/policy(ies):
Relevant themes from the Viva Laredo Plan that connect to this agenda item include:
•The Plan’s overarching vision to “improve the health of its residents, improve affordability, and upgrade its quality of life” through strategic public investments and infrastructure improvements.
o Relevance: Increasing access to external funding for water, wastewater, and resiliency projects supports reliable utility service, public health, and long term affordability.
• Emphasis on “Infrastructure; Environmental and Natural Resources … Technology and Communications” as focus areas for community planning and investment.
oRelevance: This agenda item enables targeted investment in core water and wastewater infrastructure by leveraging grants and external funding sources.
•The comprehensive plan’s role in establishing priorities for public sector action related to physical and economic development.
oRelevance: Proactively securing external funding for utility infrastructure is a foundational public sector strategy that supports sustainable growth and economic resilience.
Summary of alignment:
The proposed professional services agreement will help position the Utilities Department to:
• Identify and secure additional grant and external funding for priority water, wastewater, drainage, and resiliency projects.
• Advance long term infrastructure improvements that protect public health and the environment.
• Optimize use of local funds by leveraging outside resources, supporting the Plan’s objectives around affordability and quality of life.
COMMITTEE RECOMMENDATION
None
STAFF RECOMMENDATION
recommendation
Staff recommends that City Council authorize the City Manager to negotiate and execute a professional services agreement with GrantWorks, Inc., for grant research, writing, administration, and related program management support services for Utilities Department projects, in an amount not to exceed $[amount] for the initial one (1) year term, with the option to renew for up to two (2) additional one (1) year periods, subject to mutual agreement and the availability of appropriated funds; and authorize the City Manager to execute all related documents, subject to legal review.
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Fiscal Impact
Fiscal Year: 2026
Budgeted Y/N?: Y
Source of Funds: Waterworks Operating Budget
Account #: 557-4110-543-5526
Change Order: Exceeds 25% Y/N: N
FINANCIAL IMPACT:
None - The anticipated cost of the professional grant services will be funded within existing approved budget appropriations for the Utilities Department. No additional budget appropriation is requested with this action.