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 Water Treatment Plant Expansion 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 Water Treatment Plant Expansion project.
The scope of the Water Treatment Plant (WTP) Expansion project is to expand the capacity of the WTP from 20.5 MGD to 30 MGD, and also expand the Lake Pump Station. The project will treat additional raw water conveyed into Lake Pflugerville by the Secondary Colorado River Raw Water Line.
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 $27,184,280.
The project is also currently receiving $24M through existing TWDB DWSRF and $52M through the Environmental Protection Agency’s (EPA) Water Infrastructure Finance and Innovation Act (WIFIA) program. The project is also included in the City’s application to receive additional financing through the EPA’s WIFIA funding program, which is expected to increase the WIFIA funding amount to 49% of the project’s current budget, or approximately $41,821,133. The City has been in communication with the EPA’s WIFIA staff about this additional funding, and the requirements of both programs are being met by this ongoing construction project. The additional WIFIA funding is scheduled to close in September 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 Water Treatment Plant Expansion 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.