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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 CER...
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