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Home My WebLink AboutPR 17867: APPLICATION TO TWDB FOR CWSRF FUNDING PUBLIC WORKS DEPARTMENT COUNCIL ACTION MEMO TO Floyd T. Johnson, City Manager FROM Ross E. Blackketter, P.E., Director of Public Works SUBJECT P.R. #17867 — Application to TWDB for CWSRF Funding DATE 21 August 2013 RECOMMENDATION: I recommend that the City Council approve Proposed Resolution No. 17867, authorizing an application to the Texas Water Development Board (TWDB) for wastewater improvements funding under the State Fiscal Year 2014 Clean Water State Revolving Fund (CWSRF). BACKGROUND: In Resolution 13 -043, the City Council approved the submittal of various water and wastewater projects for the TWDB 2014 Intended Use Plan (IUP). The purpose of the IUP submittal was to allow the City to qualify for grants or low interest loans to improve the water and wastewater infrastructure. This submittal has resulted in the City of Port Arthur receiving an invitation to apply for funding under the State Fiscal Year 2014 Clean Water State Revolving Fund. Port Arthur's CWSRF application was ranked number 69 out of 141. Applications began to be accepted on 15 August 2013. Those applications received before noon on 30 August will be processed in rank order. After that date, the applications will be processed on a "first come, first served" basis. This invitation is for almost $6M to provide for the planning and design of a new wastewater treatment plant. The application needs to be submitted before the 30 August date in order to maximize the City's chances of receiving these necessary funds. BUDGETARY /FISCAL EFFECT: None. EMPLOYEE /STAFF EFFECT: None SUMMARY I recommend that the City Council approve Proposed Resolution No. 17867, authorizing an application to the Texas Water Development Board (TWDB) for wastewater improvements funding under the State Fiscal Year 2014 Clean Water State Revolving Fund (CWSRF). Ross E. Blackketter, P.E. Director of Public Works REB /reb S: \engineer \Documents \CAMS \2013 \TWDB — CWSRF App.docx PR 17867 08/21/13 reb RESOLUTION NO. A RESOLUTION BY THE CITY COUNCIL AUTHORIZING THE FILING OF AN APPLICATION TO THE TEXAS WATER DEVELOPMENT BOARD FOR WASTEWATER IMPROVEMENTS FUNDING UNDER THE STATE FISCAL YEAR 2014 CLEAN WATER STATE REVOLVING FUND. WHEREAS, in Resolution 13 -043, the City Council approved the submittal of various water and wastewater projects for the Texas Water Development Board (TWDB) 2014 Intended Use Plan (IUP); and, WHEREAS, the City of Port Arthur received an invitation based on the IUP submittal (see Exhibit "A ") to apply for funding for the Planning, Acquisition, and Design phase of a new wastewater treatment plant under the State Fiscal Year 2014 Clean Water State Revolving Fund (CWSRF); and, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: THAT, the facts and opinions in the preamble are true and correct; and, THAT, an application is hereby authorized to be filed with the Texas Water Development Board applying for funding for the Planning, Acquisition, and Design of a new wastewater treatment plant under the State Fiscal Year 2014 Clean Water State Revolving Fund (CWSRF) in the amount not to exceed $5,976,950; and, THAT, the City Manager is hereby designated the authorized representative of the City of Port Arthur for the purpose of furnishing such information and executing such documents as may be required in connection with the preparation and filing of such application; and, PR 17867 Page 2 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 Port Arthur before any hearing held by the Texas Water Development Board on such application, to wit: Financial Advisor: Joe Morrow of First Southwest 800- 922 -9850 joe. morrow(Tf rstsw.com Bond Counsel: Thomas A. Sage of Andrews Kurth LLP 713 - 220 -3833 tomsage@ andrewskurth.com THAT, a copy of the caption of this Resolution be spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED this the day of , A.D. 2013 at a meeting of the City of Port Arthur, Texas by the following vote: Ayes: Mayor: Councilmembers: Noes: Mayor PR 17867 Page 3 Attest: APPROVED AS TO FORM: libt . 111-1 Sherri Bellard Valecia Tizeno City Secretary City Attorney APPROVED FOR ADMINISTRATION: i Floyd T. Johnson Ross E. Blackketter, P.E. City Manager Director of Public Works S:\ engineer\ Documents \Resolutions \PR17867.doc EXHIBIT A TOMS trttell'r Development Board P.O. Box 13231, 1700 N. Congress Ave. Austin, TX 78711 -3231, www.twdb.texas.gov Phone (512) 463 -7847, Fax (512) 475 -2053 August 15, 2013 Mr. Ross Blackketter, P.E. City of Port Arthur P.O. Box 1089 Port Arthur, TX 77641 -1089 Re: State Fiscal Year 2014 Clean Water State Revolving Fund Invitation Dear Mr. Blackketter: This letter serves as official notice that the City of Port Arthur's (City) project is listed on the State Fiscal Year 2014 Clean Water State Revolving Fund Intended Use Plan's Invited Projects List to fund the Planning and Design phases of project #10002, totaling $5,976,950. The City is hereby invited to submit an application for funding to the Texas Water Development Board. The proposed project is listed in the Intended Use Plan as being eligible to receive Mainstream funding. Mainstream Equivalency funding will be allocated first and is defined as a loan with an interest rate of 1.55% below market rates, with no loan forgiveness offered. Once all Equivalency funding has been allotted, Mainstream Non - Equivalency funding will be available at an interest rate of 1.20% below market rates, with no loan forgiveness. Mainstream Equivalency and Mainstream Non - Equivalency both offer terms of up to 10 years for planning and design phase funding, and up to 30 years for construction phase funding. The following table provides a comparison of the funding types. Type of Funding Interest Rate Term Possible Principal Must meet Federal Subsidy Forgiveness Requirements Mainstream 1.55% below Up to 10 years for PAD None' Yes Equivalency market rate and up to 30 years for construction Mainstream Non- 1.20% below Up to 10 years for PAD None' No Equivalency market rate and up to 30 years for construction 'Mainstream principal forgiveness may be offered as green subsidy for eligible projects, if funding is available. Our Mission Board Members To provide leadership, planning, financial Billy R. Bradford Jr., Chairman Lewis H. McMahan, Member Monte Cluck, Member assistance, information, and education for Joe M. Crutcher, Vice Chairman Edward G. Vaughan, Member F.A. "Rick" Rylander, Member the conservation and responsible development of water for Texas Melanie Callahan, Executive Administrator Mr. Ross Blackketter, P.E. August 15, 2013 Page 2 The Texas Water Development Board has implemented a first -come, first- served application process; more projects are invited than there are funds available. The sooner an entity submits an administratively complete application, the greater opportunity funding will be available. Eligible Phases and Readiness to Proceed Projects on the Invited Projects List are eligible to apply only for those project phases listed on the Invited Project List. For example, if an entity is listed for "PD" on the Invited Projects List, the application for funding must be limited to the Planning and Design phases of the project. These phases were determined based on a review of the Readiness to Proceed to Construction section of the Project Information Form. If an entity wishes to apply for construction funding, but the Invited Projects List does not list the construction phase as eligible to receive funding this fiscal year, an updated Readiness to Proceed form (TWDB -0343) must be submitted. This needs to be done before submitting a financial application. A readiness to proceed form is available online at www.twdb.texas.gov /financial/ instructions /doc /TWDB- 0343.docx. Please submit this form to rtp updates(a,twdb.texas.gov. The Texas Water Development Board will return a determination of phases eligible for funding. Projects which request construction funding must have completed all project milestones and be ready to proceed at the time of application. Failure to complete all necessary project milestones may result in delay of approving the application and removal of any assigned loan forgiveness subsidy. Please note, land acquisition (listed as "A" on the Invited Project List) is eligible for CWSRF funding only if it is integral to, or used in connection with, the treatment process or used for the ultimate disposal of residues resulting from such treatment. This includes land that is used specifically to treat water (e.g. effluent disposal fields, facultative lagoons, etc.) and excludes land for WWTP sites, easements, etc. Other Requirements Before the Texas Water Development Board considers a submitted financial application administratively complete, a project specific pre- application conference must be completed. If you have not completed a pre - application conference for the proposed project(s), please contact Mark Evans, Clean Water State Revolving Fund Project Coordinator, by phone at 512- 463 -8510, or by email at mark.evans(a,twdb.texas.gov. Even if you have completed a pre- application conference for a different project, another conference may be necessary. Entities applying for Disadvantaged Community or Mainstream Equivalency funding must comply with federal requirements, including the Texas Water Development Board's Disadvantaged Business Enterprise procurement requirements. Please contact Rene Gonzalez at 512- 463 -2634, or rene.gonzalez@a,twdb.texas.gov, if you have any questions regarding this requirement. Mr. Ross Blackketter, P.E. August 15, 2013 Page 3 Application Dates and Procedures The Texas Water Development Board will begin accepting financial applications on August 15, 2013, at 12:00 PM CT and will begin processing applications on Friday, August 30, 2013, at 12:00 PM CT. Complete applications received prior to August 30, 2013, will be processed in rank order. Those received after noon CT on August 30, 2013, will be processed in a first -come, first- served manner. Entities receiving an invitation, regardless of when the invitation is extended, will be allowed to submit an application until the total funds available have been committed, or until the next fiscal year's Intended Use Plan is approved. Notice will be posted on the agency website of either occurrence. Applications must be submitted as two double -sided hard copies, one of which is marked original; and one indexed electronic copy, either on CD/DVD or a flash or thumb drive, using MS Word, Excel, or Adobe Acrobat. For easy identification, the CD should have the project name printed on it. Emailed applications will not be accepted. Before being logged in as an official submission, all three copies must be received. If not present, the documents will be held until all three copies are submitted. Please contact Clay Schultz, Clean Water State Revolving Fund Program Specialist, by phone at 512- 463 -6277 or by email at clay.schultz @twdb.texas.gov with your concerns or questions. Sincerely, Of• N� Stacy L. Barna Director of Program Development Program and Policy Development SLB: rf