Title
Approving a resolution by the City of Pflugerville, Texas requesting financial participation from the Texas Water Development Board (TWDB); authorizing the filing of an application for financial participation; and making certain findings in connection therewith for the Secondary Colorado River Raw Water Line project, and authorizing a designated City representative 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 TWDB.
Summary
This agenda item recommends action to secure funding from the Texas Water Development Board (TWDB) Drinking Water State Revolving Fund (DWSRF) for the Secondary Colorado River Raw Water Line project.
The scope of the Secondary Colorado River Raw Water Line project includes approximately 15 miles of 42-inch raw water pipeline and a pump station expansion. The project will convey additional raw water from the Colorado River to Lake Pflugerville to provide additional raw water to the City.
A Project Information Form (PIF) was previously prepared and City staff submitted to the TWDB in March 2022. Based on the submitted project information, the TWDB formally invited the City of Pflugerville to submit an application to fund the project through the Drinking Water State Revolving Fund (DWSRF) in an amount not to exceed $74,779,940.
The project is also currently included in the City’s application to the Environmental Protection Agency’s (EPA) Water Infrastructure Finance and Innovation Act (WIFIA) funding program, which is expected to fund 49% of the project’s budget, or approximately $81,911,633. The City has been in communication with the EPA’s WIFIA staff about this additional funding, and the two programs can pair and have similar requirements. This funding is scheduled to close September 2, 2024.
The resolution for this item will be included with the request for funding application to the TWDB, as required by the DWSRF program. City staff has worked together with the City's Financial Advisor in preparation for the TWDB DWSRF application. The DWSRF program provides a subsidy of 30% - 35% below market rates. City Staff and the City’s Financial Advisor concur that this loan opportunity is advantageous as it provides the City with favorable financing opportunities for the City in addition to the EPA’s WIFIA program.
Deadline for City Council Action
Action is requested on August 13, 2024 to meet the application deadline of September 2, 2024.
Funding Expected: Revenue __ Expenditure __ N/A _x_
Budgeted Item: Yes _x_ No __ N/A __
1295 Form Required? Yes __ No _x_
Legal Review Required: N/A _x_ Required __ Date Completed:
Supporting documents attached:
TWDB-0201 - Application Affidavit
TWDB-0201A - Resolution
TWDB-0201B - Certificate for Resolution
Recommended Action
Approving a resolution requesting financial participation from the Texas Water Development Board (TWDB); authorizing the filing of an application for financial participation; and making certain findings in connection therewith for the Secondary Colorado River Raw Water Line project, and authorizing a designated City representative 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 TWDB.