Texas Water Development Board Lends $65M to City of Houston
Texas Construction News from Virtual Builders Exchange
Posted: 4-6-2017, 4:05 p.m.
by Adolfo Pesquera
Austin (Travis County) - The Texas Water Development Board this morning approved almost $64.7 million in construction financing for Houston, in order to rehabilitate the citywide sanitary sewer collection system.
According to the TWDB, Houston was under an agreed order with the Texas Commission on Environmental Quality (TCEQ), and as part of that agreement the city had to renew 600,000 linear feet of the sanitary sewer collection system per year in order to reduce sanitary sewer overflows.
Although the Agreed Order has ended, there is a pending Consent Decree with the Environmental Protection Agency.
The City will continue to rehabilitate sewer lines at the same rate as under the Agreed Order until the Consent Decree is in place.
The City is pledging the revenues of the Combined Utility system for the proposed funding request. The debt will be subordinate to debt issued under the Previous Bond Ordinance and on parity with debt issued under the current Master Ordinance.
The Master Ordinance requires a reserve fund amount equal to 50 percent of the maximum annual debt
service. As such, the City is requesting $1,742,363 in bond proceeds to fund the reserve.
In other business, the TWDB approved a $5 million loan to the Canyon Regional Water Authority for the planning, design and construction of a water treatment plant improvement project. Based in central Texas, the Canyon Regional Water Authority services clients in Atascosa, Bexar, Caldwell, Comal, Guadalupe, Hays and Wilson counties.
The CRW Authority currently has eleven members which are cities, water supply corporations, and districts in their service area. The City of San Antonio is a non-member, wholesale customer of the Authority.
The proposed project is needed for the Authority to remain compliant with TTCEQ requirements for the level of trihalomethanes (THM) at the Authority’s water treatment plant.
The Authority proposes to install a full-scale pilot ozone production facility and construct a new ozone system, electrical building, second clearwell storage tank and raw water pump station. The existing clearwell storage tank will be rehabilitated or replaced.
Adolfo Pesquera is a veteran news journalist. He has previously worked for Hearst Corp., American Lawyer Media, News Corp and Freedom Communications. His work has been published in newspapers and magazines throughout the United States. He is a communications graduate of the University of Texas-PanAmerican.
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