BCRUA_R-21-04-07-5B RESOLUTION NO. R-21-04-07-513
WHEREAS, the Brushy Creek Regional Utility Authority, Inc. ("BCRUA"), was created by
Cedar Park, Leander, and Round Rock to develop a regional water system for the three cities; and
WHEREAS, on behalf of the cities, the BCRUA is requesting financial assistance from the
Texas Water Development Board for Phase i D and Phase 1I of the regional water system,and
WHEREAS,the Board of Directors wishes to complete and submit said application for financial
assistance, Now Therefore
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE BRUSHY CREEK
REGIONAL UTILITY AUTHORITY,THAT:
Sec. 1. The application is hereby approved and the General Manager of the BCRUA is hereby
authorized to file said application with the Texas Water Development Board seeking financial assistance
in amount not to exceed$194,400,000 to provide for the cost of planning,design,and land rights funding
for Phase l D,and Phase 1I, including certain electrical upgrades to service Phase II Project.
Sec. 2. Karen Bondy, General Manager of the BCRUA, be and is hereby designated the
authorized representative of the BCRUA 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 Texas Water Development Board.
Sec. 3. 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
Round Rock, the City of Cedar Park, and the BCRUA before any hearing held by the Texas Water
Development Board on such application,to wit:
Financial Advisor: Garry Kimball
Specialized Public Finance, Inc.
7000 N. Mopac Expy #410
Austin,TX 78731
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Engineer: Aaron Archer
Walker Partners
804 Las Cimas Pkwy#150
Austin,TX 78746
Bond Counsel: Richard Donoghue
McCall, Parkhurst,& Horton L.L.P.
600 Congress Avenue, Suite 1800
Austin,TX 78701
Sec. 4.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
Leander before any hearing held by the Texas Water Development Board on suchapplication,to wit:
Financial Advisor: Chris Allen
RBC Capital Markets, LLC
609 Main Street, Suite 3600
Houston,TX 77002
Engineer: Aaron Archer
Walker Partners
804 Las Cimas Pkwy#150
Austin,TX 78746
Bond Counsel: David Mendez
Bickerstaff Heath Delgado Acosta LLP
3711 S MoPac Expy, Suite 300
Austin,TX 78746
The Board of Directors hereby finds and declares that written notice of the date, hour, place and
subject of the meeting at which this Resolution was adopted was posted and that such meeting was open
to the public as required by law at all times during which this Resolution and the subject matter hereof
were discussed, considered and formally acted upon,all as required by the Open Meetings Act,Chapter
551,Texas Government Code, as amended.
2
RESOLVED this 7th day of April,2021.
R
ENE fi ORES,Presider�i
Brushy Creek Regional Utility Authority
TTS .
ANNE DUFFY, Sec t
DATE: April 2, 2021
SUBJECT: BCRUA Board Meeting—April 7, 2021
ITEM: 5B. Consider a resolution authorizing the General Manager to complete and submit
the final Texas Water Development Board SWIFT Loan Application for
Construction of the Phase 1D water treatment plant expansion,the Phase II raw
water delivery system and electrical utility improvements, and bid and
construction phase services.
PRESENTER: Karen Bondy, General Manager
BACKGROUND:
Staff submitted an Abridged SWIFT Loan Application to the Texas Water Development Board(TWDB) on
February 2.The TWDB Board plans to invite BCRUA(and its member cities)to submit a full and formal
application for a SWIFT Loan in its 2021 Cycle.Staff has been coordinating with TWDB,the cities of
Cedar Park, Leander and Round Rock, and various engineering,financial and bond counsel
representatives to complete and submit the loan application package before the deadline on May 10.
The attached Board resolution authorizes filing of the SWIFT Loan Application, sets the not to exceed
amount of$194,400,000, appoints me as the authorized representative of BCRUA for the purposes of
the application, and further authorizes the engineer, Financial Advisors,and Bond Counsels each city
selects to assist in preparation of the application,as well as communicate with TWDB on behalf of
BCRUA,or any of the partner cities.
This project will complete construction of the Phase 2 deep-water intake with a capacity of 145 MGD,
the Phase 1D treatment capacity expansion to 42 MGD, electrical utility improvements for the Phase 2
raw water pump station; and bid and construction phase services.
This loan application will involve only Cedar Park and Leander. Round Rock intends to use cash and prior
bond proceeds to cover its cost share. Cedar Park intends to use cash or prior bond proceeds for its
share of Phase 1D. There will ultimately be two separate bond issues for Low Interest Loans,covering
each city's portion of the total loan.That breakout is as follows:
BCRUA—Cedar Park: $ 75,310,000
BCRUA—Leander: $ 119,090,000
TOTAL $ 194,400,000
A strict time-line will need to be followed, if we are to work within the Board's and the two city councils'
regular meeting schedules.That schedule is as follows:
BCRUA: Wednesday,April 7
Leander: Thursday,April 15
Cedar Park: Thursday,April 22
Following Cedar Park and Leander's actions(assuming affirmative votes),staff will incorporate both
cities' completed documentation into the final application package and submit it to TWDB before close
of business on May 10.
TWDB staff will then evaluate the loan package, clarify any questions or concerns with BCRUA/city staff,
and/or consultants, and make a final recommendation to the TWDB Board.This process will occur over
summer, and we can expect a formal TWDB Board decision not later than September.The next stage
will be the development of the two bond packages by each city's Financial Advisor and Bond Counsel
(with assistance by BCRUA and city staff, and the project engineering consultant), followed by formal
action by BCRUA's Board,and each city council.Assuming all goes well, we can expect the two bond
offers to fund in late October, or early November of this year.
Interest on the loans should be competitive, based on the State of Texas'continued strong credit ratings
(AAA), and the SWIFT program's ongoing interest subsidy.
Staff and the Operations Committee (OC) recommend approval of this resolution and will be available to
answer any questions.
FUNDING:
The funding will ultimately need to be provided by the three cities as follows. Cash funding is
subject to later final approval by subject City Council.
SWIFT Loans: $194,400,000
Cash or prior bond proceeds: $ 81,763,985
TOTAL $276,163,985
Each city's breakout is as follows:
Cedar Park:
SWIFT Loan: $75,310,000
Cash or prior bond proceeds: $ 4,359,733
TOTAL $79,699,733
Leander:
SWIFT Loan: $119,090,000
Round Rock:
Cash or prior bond proceeds: $77,404,252
Grand Total: $276,163,985