From
Ron McCuller
Title
Resolution authorizing the filing of an application requesting financial assistance from the Texas Water Development Board in an amount not to exceed $2,285,000 to provide costs of replacement of deteriorated sanitary sewer pipe, and designating authorized representatives
Presenter
Ron McCuller, 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 $2 million in wastewater replacement projects rated highly enough on the TWDB point scale that they will likely be classified as green projects. Since this will result in approximately $300,000 in savings, 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 $2,285,000 (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 seeking financial assistance in an amount not to exceed $2,285,000 to provide for the costs of replacement of approximately 25,476 linear feet of deteriorated clay tile sanitary sewer pipe.
Section 2. That Anna Doll, Deputy City Manager, be and is hereby designated the authorized representative of the City of Grand Prairie, Texas 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 Texas Water Development Board.
SECTION 3. That the following individuals are herby authorized and directed to aid and assist in the preparation and submission of such application and appear on behalf of and represent the City of Grand Prairie before any hearing held by the Texas Water Development board on such application, to wit:
Financial Advisor: James S. Sabonis, Senior Vice President and/or Andre Alaya, Assistant Vice President;
First Southwest Company; 325 North St. Paul, Suite #800, Dallas, TX 75201
(214) 953-4195 sabonis@firstsw.com/alaya@firstsw.com
Engineer: Wayne Hunter; DFW Branch Manager; RPS Espey
2777N. Stemmons Freeway, Suite 1102; Dallas, Texas 75201
(214) 951-0807 HunterW@fpsgroup.com
Bond Counsel: Robert Dransfield, Partner, Fulbright & Jaworski
2200 Ross Ave., Suite 2800, Dallas, Texas 75201
(214) 855-8068 Rdransfield@fulbright.com
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, ON THIS THE 18th DAY OF SEPTEMBER, 2012.