AGENDA CAPTION:
Title
Consider approval of Resolution 2025-160R, approving and authorizing the filing of an application with the Texas Water Development Board (TWDB) seeking financial assistance in an amount not to exceed $22,000,000.00 to provide for the costs of construction and financial services related to the Highway 80 Utility Project; designating an authorized representative of the city for purposes of furnishing information and executing required documents in connection with the preparation and filing of the application; designating firms and individuals authorized and directed to aid and assist the city in the preparation and submission of the application and appear on behalf of and represent the city before any hearing held by TWDB on the application; and declaring an effective date.
Body
Meeting date: September 2, 2025
Department: Engineering and Capital Improvements, Shaun Condor
Amount & Source of Funding
Funds Required: $22,000,000.00
Account Number: C555
Funds Available: Yes
Account Name: Highway 80 Lift Station and 10-inch FM
Fiscal Note:
Prior Council Action: 2021-99R, Award of Agreement for Design
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Background Information:
This resolution authorizes staff to submit an application for a Clean Water State Revolving Fund (CWSRF) loan in the amount of $22,000,000, which includes up to approximately $5,300,000 in loan forgiveness to Texas Water Development Board (TWDB) for the Highway 80 Utility Project.
In June 2021, Council approved an engineering agreement to design the Highway 80 Utility Project consisting of a new wastewater lift station and over 10,000 linear feet of wastewater force main and reclaimed water line from the existing wastewater treatment plant to the proposed lift station site near intersection of Old Martindale Road and Highway 80. The improvements will provide additional wastewater collection system capacity for the rapid growth in the northeast of San Marcos and avoid exceeding capacity of infrastructure along River Road.
Staff submitted an application for $25M to the TWDB in March of 2023. The TWDB recently notified staff that our application for funding on the Highway 80 Utilities project was approved for the next round of review. The project was not ranked high enough to be selected in 2023, but over the last 2 years, the project moved up the rankings as other projects ahead of it did not move forward. Staff will proceed with the next step in the application process and confirmation of award should occur in the next 6 months. Staff is in the process of updating construction cost estimate to finalize the exact amount we will include in the application. It is anticipated to ask for a loan in the amount of $17M - $20M. The resolution will be written for approval up to $22M to allow for flexibility through the next 6 months as we navigate the application process. If the application is approved, a formal resolution closing the loan will be routed through Council for approval in approximately 6-12 months.
Construction is expected to start in 6-9 months and last approximately 1.5-2 years. Since construction is expected to start prior to the loan closing, the project will be reimbursed funds by the TWDB after the project is completed.
A resolution from the governing body is required as part of the application.
Council Committee, Board/Commission Action:
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Recommendation:
Staff recommends approval of resolution to submit application to TWDB.