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Title
Resolution authorizing the filing of an application requesting financial assistance from the Texas Water Development Board in an amount not to exceed $3,750,000 to provide costs of replacement of deteriorated sanitary sewer pipe, and designating authorized representatives for the CWSRF 2019 project
Presenter
Gabriel Johnson, Public Works Director
Recommended Action
Approve
Analysis
The Texas Water Development Board (TWDB) administers loan programs to assistant water and wastewater utilities build and maintain facilities for these necessary services. These loans are interest subsidized, often making the cost to the utilities less than they might be able to receive without such assistance. Further, the Board also offers a very limited amount of funds for projects that they deem qualified as "green" (environmental friendly), that offer a 15% principal forgiveness in addition to the interest subsidy.
This year, we were able to get about $3,750,000 in wastewater replacement projects rated highly enough on the TWDB point scale that they will likely be classified as green projects. $550,800 in savings is due to loan forgiveness (grant). We feel that it is worthwhile to pursue this loan. Should we not be offered the green subsidy we can still decline the loan.
The purpose of this resolution is to fulfill the state requirement to have the City Council authorize applying for the loan and designate parties to represent the City.
Financial Consideration
If this loan is approved, the City will need to issue revenue bonds for the payment currently estimated at $3,750,000 (includes 10% in addition to the projected project cost) and be reimbursed by the TWDB for the approved subsidies. The loan is expected to close by next April.
Body
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, REQUESTING FINANCIAL ASSISTANCE FROM THE TEXAS WATER DEVELOPMENT BOARD; AUTHORIZING THE FILING OF AN APPLICATION FOR ASSISTANCE; AND MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH
BE IT RESOLVED, by the City Council of the City of GRAND PRAIRIE, Texas:
SECTION 1: THAT an application is hereby approved and authorized to be filed with the Texas Water Development Board (the “Board”) seeking financial assistance in an amount not to exceed $3,750,000 to finance the costs of constructing improvements and extensions to the City’s wastewater system.
SECTION 2: THAT the City Manager, any Deputy City Manager, the Chief Financial Officer and the Director of Public Works of the City, either one or any of them, shall be and are hereby designated to be the authorized representatives of the City for purposes of furnishing such information and executing such documents as may be required in connection with the preparation and filing of such application for financial assistance and the rules of the Board.
SECTION 3: THAT the following firms and individuals are hereby authorized and directed to aid and assist the City in the preparation and submission of such application and to appear on behalf of and represent the City before any hearing held by the Board on such application, to wit:
Financial Advisor: James S. Sabonis and Andre Ayala, Hilltop Securities Inc.
1201 Elm Street, Suite 3500, Dallas, Texas 75270
Engineer: Ramon Salazar, P.E., Dallas Practice Leader, RPS Group, Inc.
2777 N. Stemmons Freeway, Suite 1102, Dallas, Texas 75207
Bond Counsel: Robert D. Dransfield, Norton Rose Fulbright US LLP
2200 Ross Avenue, Suite 3600, Dallas, Texas 75201
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, ON THIS THE 16th DAY OF OCTOBER, 2018.