07 - Wastewater Treatment Plant - Application for Funding ImprovementsItem No. 7
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TO: Mayor & City Council
Grayson Path, City Manager
FROM: Doug Harris, Director of Utilities
SUBJECT: TEXAS WATER DEVELOPMENT BOARD FUNDING APPLICATION
RESOLUTION FOR THE WASTEWATER TREATMENT PLANT
REHABILITATION PROJECT
DATE: November 9, 2020
At the July 27, 2020 meeting, City Council unanimously approved moving forward with an
agreement for professional engineering services with Garver USA for Phase 2 of comprehensive
rehabilitation of the City of Paris Wastewater Treatment Facility, contingent upon securing long
term financing of the project.
STATUS OF ISSUE:
Garver USA is preparing the project funding application with the Texas Water Development
Board. A requirement of the funding application is a City Council resolution requesting financial
assistance from the Texas Water Development Board and authorizing the filing of an application
for assistance. The TWDB Application Filing and Authorized Representative Resolution is
attached.
The Texas Water Development Board held a pre -application meeting via teleconference on
Wednesday, October 28, 2020. Joe Koen, TWDB Northeast Texas Team Leader, conducted the
meeting, with participation of City and Garver USA staff. Mr. Koen advised including
engineering, construction, loan origination, financial advisor and bond counsel fees in the financial
application resolution. The not to exceed amount of $75,000,000.00 is not a firm loan
commitment, TWDB recommends applying for a higher amount of funding initially, adjusting the
amount down through the application process, with the final loan amount being only what is
necessary to complete the project.
TWDB informed us COVID-19 has delayed the application process, potentially moving the
invitation to apply for funding until after the first of the year, with their Board meeting scheduled
for either March or April of 2021, during which they will review submitted applications and decide
which projects to fund. According to Mr. Koen, it typically takes 2 — 3 months following the
Board meeting for approved applicants to begin closing on loans.
BUDGET:
No budget impact, this resolution is a requirement to continue the application process with the
Texas Water Development Board.
OPTIONS:
1. Approve the resolution to seek funding from the Texas Water Development Board for the
Wastewater Treatment Facility rehabilitation project.
2. Deny the resolution to seek funding from the Texas Water Development Board for the
Wastewater Treatment Facility rehabilitation project.
RECOMMENDATION:
1. Approve the resolution to seek funding from the Texas Water Development Board for the
Wastewater Treatment Facility rehabilitation project.
TAMB-0201A
Rev 11/16
Application Filing and Authorized Representative Resolution
.A RESOLUTION by the City Council of the
�. City of Paris, 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 Paris, 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 $ 75,000,000.00 to provide
for the costs of comprehensive rehabilitation of the City wastewater treatment facility
SECTION 2: That Grayson Path, City Manager be and is hereby
designated the authorized representative of the City of Paris, 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 firms and individuals are hereby 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 Paris, Texas before any hearing held by the Texas Water
Development Board on such application, to wit:
Financial Advisor: Mark McLiney, SAMCO Capital Markets, Inc.
1020 NE Loop 410 STE 640 San Antonio, TX 78209
Engineer- Lance P. Klement, P.E., Garver LLC
3010 Gaylord Pkwy #190, Frisco, TX 75034
Bond Counsel: Dan Culver, McCall, Parkhurst & Horton, LLP
717 N Harwood St, Floor 9, Dallas, TX 75201
PASSED AND APPROVED, this the 9th day of November , zp 20
ATTEST:
Janice Ellis
City Clerk
(Seal)
By:
Steven J. Clifford, M.D.
Mayor