(7)(f)
CITY COMMISSION REGULAR MTG
- Meeting Date:
- 02/04/2026
- Title:
- Resolution No. 2026-015, awarding ITP No. 2026-012 to Valero Refining-Texas, L.P.,and authorizing the Mayor to enter into a long-term lease for certain real property adjacent to the Texas City Walter Knox Wastewater Treatment Plant and referred to as "City Connection Point."
- Submitted For:
- Kim Golden
- Submitted By:
- Curt Kelly, Transportation and Planning
- Department:
- Transportation and Planning
Information
ACTION REQUEST
Consider and take action on Resolution No. 2026-015, awarding ITP No. 2026-012 to Valero Refining-Texas, L.P., and authorizing the Mayor to enter into a long-term lease for certain real property located adjacent to the Walter Knox Wastewater Treatment Plant and referred to as "City Connection Point."
BACKGROUND (Brief Summary)
An Invitation for Bid #2026-012 was posted on December 29, 2025. Bids were received on January 14, 2026, opened and read aloud. The only proposal received was from Valero Refining - Texas, L.P. The proposal as received met all the requirements of the Invitation to Bid for the long-term lease of an approximately 0.23-acre parcel of land adjacent to the Walter Knox Wastewater Treatment Plant and referred to as the "City Connection Point" AND an existing 16-inch pipeline located in Bay Street and running approximately 9,000 feet from 25th Ave N to Martin Luther King Ave (1st Avenue South).
The leased property will serve as the location for the installation of essential equipment at the City Connection Point to facilitate the future storage and transportation of treated wastewater to the Valero Refinery pursuant to that certain Agreement for the Delivery of Treated Wastewater between Valero Refining - Texas, L.P. and the City of Texas City, TX.
The leased property will serve as the location for the installation of essential equipment at the City Connection Point to facilitate the future storage and transportation of treated wastewater to the Valero Refinery pursuant to that certain Agreement for the Delivery of Treated Wastewater between Valero Refining - Texas, L.P. and the City of Texas City, TX.
The initial lease term will be no less than fifteen (15) years, with three additional options available to the lessee to extend the lease for extra periods of five (5) years each, for a possible maximum total lease duration of thirty (30) years. The annual rental fee proposed by Valero in response to the ITB for this property is One Hundred and Fifty Five Thousand Dollars ($155,000.00) with payments to commence upon execution of the lease agreement.
RECOMMENDATION
Based on the evaluation of the bid submission, the City Engineer recommends accepting the responsive bid of Valero Refining-Texas, L.P., in the amount of $155,000 per year for the lease of an approximately 0.23-acre parcel of land adjacent to the Walter Knox Wastewater Treatment Plant and referred to as the "City Connection Point" AND an existing 16-inch pipeline located in Bay Street and running approximately 9,000 feet from 25th Ave N to Martin Luther King Ave (1st Avenue South).
Fiscal Impact
- Funds Available Y/N:
- N/A
- Amount Requested:
- N/A
- Source of Funds:
- N/A
- Account #:
- N/A
Fiscal Impact:
N/A