4B-R-02-18 - 2/14/2002 RESOLUTION NO. 02-18
WHEREAS, the Board of Directors of the Round Rock Transportation
System Development Corporation ( "RRTSDC" ) hereby finds and determines
that there is an urgent need for the RRTSDC to acquire right-of-way and
relocate utilities for the construction of improvements to the City of
Round Rock' s transportation system, and
WHEREAS, such right-of-way acquisition and utility relocation
cannot be reasonably financed unless financial assistance is obtained
from the State Infrastructure Bank, and
WHEREAS, the Board of Directors of the RRTSDC now desires to
recommend to the Round Rock City Council that a request for financial
assistance be made to the State Infrastructure Bank in an amount not to
exceed $15 , 000 , 000 , Now Therefore
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE ROUND ROCK
TRANSPORTATION SYSTEM DEVELOPMENT CORPORATION,
A recommendation is hereby made to the Round Rock City Council
that a request for financial assistance be made to the State
Infrastructure Bank in an amount not to exceed $15, 000 , 000 to provide
for the costs of right-of-way acquisition and utility relocation for
the construction of improvements to the City of Round Rock' s
transportation system.
The Board of Directors hereby finds and declares that written
notice of the date, hour, place and subject of the meeting at which
::ODMA\WORLDOX\O:\WDOX\RESOLUTI\RRTSDC\00019986.WPD/02-18/sc
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.
RESOLVED this 14th day of February, 2002 .
ROUND ROCK TRANSPORTATION SYSTEM
DEVELOPMENT CORPO TION
.0
By:
r, ( k 1�
ROBhkl A. STLUKA, JR. , President
ATTES : / '
. 4eCtL—
LA I704714Qe/V, Secretary
2
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-0� '' CITY OF ROUND ROCK
221 East Main Street
1� Round Rock,Texas 78664
'Ittt 512-218-5400
February 15, 2002
Mr. James M. Bass, Director
Finance Division
Texas Department of Transportation
125 E. 1111i Street
Austin, Texas 78701
Dear Mr. Bass:
Enclosed is the Round Rock Transportation System Development Corporation's
application for a State Infrastructure Bank (SIB) loan to assist in the purchase of right
of way and the adjustment of utilities for SH 45 within the City of Round Rock. The
Corporation and the City have committed to provide an additional $10,000,000 in
funding for the purchase of right of way, but in order to do so, must borrow the funds
as well as finance up to $5,000,000 additional cash outlays which are being made on
this project. Also included in this application is a request to modify the amortization
of the original SIB loan granted for this same project in August 2000. To finance this
commitment, the Corporation and the City have approved submittal of this loan
application.
The Texas Turnpike Authority has identified the construction of the portions of Loop
1 and SI-i 45 which create the "T" project in Travis and Williamson Counties as their
highest priority in the State. The segment of SH 45 in Round Rock for which this
loan will be used is part of the "T" project. Construction is underway for the north
frontage roads on this project and the Texas Turnpike Division anticipates selling
bonds in the summer of 2002 for the next phase. The project will proceed to
construction as soon as possible after the sale of the bonds.
This project represents a significant partnership between TxDOT, the Texas Turnpike
Authority (TTA), Williamson County and the City to expedite a critical project that
will significantly reduce congestion for the region. The use of the SIB loan as
described above satisfies the purposes of the State Infrastructure Bank in the
following ways:
1) the SIB loan permits an increased level of participation in the project by
Mayor the City of Round Rock beyond which cash on hand would allow;
Robert A.Stlukn,Jr 2) because of the increased level of participation in the project by the City,
Mayor Pro-tem State transportation funds are freed up that would otherwise he required to
Tom Nielson
be used on this project, thus expanding the available funding for other
Council Members
Alan McGraw transportation projects; and
Carrie Pitt 3) the successful implementation of the proposed project will result in
Earl Palmer�allnhan significant improvement to the efficiency and safety of the State
c re Transportation System.
City Manager
Robert L Bennett,Jr.
City Attorney Fax:512-218-7097 1-800-735-2989 TDD 1-800-735-2988 Voice
Stephan L Sheets www.ci.round-rock.tx,us
• Mr. James M. Bass, Director
Finance Division
Texas Department of Transportation
Page 2 oC2
For all the above reasons, I urge favorable consideration of the Round Rock
Transportation System Development Corporation's SIB loan application.
ely,
Ro eft A. Stluka, Jr.,
President, Round Rock Transportation System Development Corporation
•
sib02c
Section IV—Statement of Acknowledgment and Certification
I certify that:
I have the authority to request and incur the debt described in this application, and upon
award, will enter into contract for the repayment of any financial assistance granted by the
Texas Department of Transportation's State Infrastructure Bank.
I have completed the preliminary requirements as specified by the State Infrastructure
Bank Application Handbook, and will comply with all applicable state and federal
regulations and requirements.
To the best of my knowledge all information contained in this application is valid and
accurate and the submission of this application has been authorized by the governing body
of the undersigned jurisdiction.
4Igh 141
Signature of Highest Official Date
President,Round Rock Transportation
Robert A. Stluka,Jr. System Development Corporation
Print or Type name Title, Jurisdiction
RECEIVED MAR 0 82002
Texas Department of Transportation
DEWITT C.GREER STATE HIGHWAY BLDG.•125 E. 11TH STREET•AUSTIN,TEXAS 78701-2483•(512)463-8585
March 7, 2002
David Kautz r
Finance Director I
Round Rock (RRTSDC) ✓
221 E. Main Street
Round Rock, TX 78664
Dear Mr. Kautz:
Please be advised that your State Infrastructure Bank (SIB) loan received preliminary approval
from the Texas Transportation Commission on Thursday February 28, 2002. We will be
contacting you soon to negotiate final loan terms before submitting to the Commission.
If you have any questions or need additional information regarding this matter, please feel free to
call the SIB Manager Dorn Smith at(512) 463-8721 or Javier Pena at
(512) 463-8046.
Sincerely,
, ife;WetrF
•
James M. Bass
Director, Finance Division
cc: Bob Bennett, City Manager
Phillip Russell, P.E., Texas Turnpike Authority
Bob Daigh, Texas Turnpike Authority
An Equal Opportunity Employer
•
:fir 1�‘1.. CI'TY OF ROUND ROCK
^ 221 East Main Street
- : P Round Rock,Texas 78664
512-218-5400
March 11, 2002
Mr.John.W. Johnson,Chairman
Mr. Ric Williamson, Commissioner
Mr. Robert L.Nichols, Commissioner
Texas Transportation Commission
125 E. 11th Street
Austin,TX 78701-2483
RE: Round Rock Transportation System Development Corporation ("the
Corporation')Loan Application to the State Infrastructure Bank("SIB')
Dear Commissioners:
I appreciate preliminary approval.of the Corporation's loan application by the
Commission and I would like to take'this opportunity to expand upon the importance of
the State Infrastructure Bank loan to the Corporation. Additionally, in reading the
transcript of the meeting, I understand that,the Commissioners have questions regarding
the Corporation's need for financial assistance from the SIB and it is my hope to
address those questions here.
The Corporation is-funded by a 4%local sales tax component imposed in 1998 solely
for the purpose of providing transportation improvements. This dedicated funding
source has allowed Round Rock to design and begin implementation of a master
transportation plan that provides significant regional road and transportation
improvements. In addition,the dedicated funding source has enabled Round Rock to
participate as a partner with the Texas Department of Transportation on several local
transportation improvements with regional impact including: S.H. 45,U.S. 79,the T.H.
35 Turnarounds, South Mays improvements and more.
Mayor
Robert A.Stluka,Jr The Corporation faces a two-year transportation capital-spending plan of$87.2 million.
Mayor.pro-tern The detailed plan has been provided as an exhibit in the Corporation's loan application.
Tom Nielson This spending commitment far outpaces the Corporation's ability to pay cash for the
Council Members improvements,thereby necessitating the borrowing of funds. The Corporation has
Alan McGraw
Carrie Pitt
Earl Palmer
^allahan
( re
C..; ...onager
Robert L Bennett,Jr.
City Attorney Fax:512-218-7097 1-800-735-2989 TDD 1-800-735-2988 Voice
Stephan L Sheets www.ci.round-rock.tx.us
Texas Transportation Commission.
March 11,2002
_
Page 2
utilized open market borrowing,most recently issuing$26 million in sales tax revenue bonds for
improvements to major arterials. However,the SIB also has a critically important role in helping •
the Corporation
meet its transportation improvement commitments. Open market financing imposes a minimum
debt service coverage of 1.25 to 1.5 times: The favorable borrowing terms offered by the SIB
help the Corporation manage its cashflow so that a maximum number of transportation
improvement projects can be under construction at the earliest possible time. The rapid
growth of the region has accelerated the importance of constructing'projects in the shortest
_possible time frame.':Leveraging cash flow through borrowing with favorable terms is absolutely
critical to this timing effort Additionally,because our sales tax revenue stream is.dedicatedto
transportation improvements,any savings resulting from favorable SIB terms.is immediately
invested in other transportation improvements,which aid.the region's mobility.: •
The Commissioners expressed concern that too many SIB assets were potentially being tied up in
this proj ect. .In response, I urge the Commission to consider the large proportion of assets that
Round Rock is being asked to invest in this State highway..`The$30 million cost to Round Rock
for this single, State project is a significant burden to this small community. Without assistance
from the SIB loan terms,Round Rock's continued participation in this project and the Round
Rock transportation plan are placed in jeopardy.
Right of way for the S.H. 45 project is provided by 100% local participation. The right of way
requirements for this and other large transportation projects seriously strain the funding ability of
a small community such as Round Rock. In 2000,the'Corporation borrowed and spent $16
million for right of way toward this project. Higher right of way costs and utility relocation
costs,which we have incurred on this.project, are increasing our spending by as s'much as $5
million. Most recently,we have been asked to be responsible for another$10 million in
• • additional S.H.45 right of way located in Travis County. As a result of these cost increments,
total S.H.45 commitments within the two year tune;frame`for Round Rock approach;$30
million,double the amount originally requested by TxDOT from Round Rock. Additionally, in
order to acquire all of the right of way in advance of a Texas Turnpike Authority bond issue that
is proposed in June of this year,timing is again critical.- The proposed loan will enable the
Corporation to meet the relatively short timing requirement and avoid a second open market
financing less than 10 months following the Corporation's last deal (at which time a
representation was made that the next scheduled open market financing would not occur before
2003).
•
Texas Transportation Commission
March 11, 2002 . •
Page 3
To briefly address technical terms,using'the Delphis-Hanover scale for 3/6/2002, a new 20-year
loan and the remaining 2000 SIB 13-year lOan balance would draw a market rate of 441% based
upon a calculated'9.743-year combined weighted average life. We believe the strong partnership
.commitment in this`project demonstrated by Round Rock,the high priority status of the project
and the financial necessity of stretching the available funds of the Corporation justify •
consideration of a further concession to the market of between(1/4%)to(112%).
Hopefully,with the illustrated magnitude of these funding commitments,it is clear to see why
Round Rock needs SIB financing availability with favorable terms. As stated above, we are not
looking solely to theSIB for all of our financing solutions. Our approach is strategic,with open
market borrowing being used where necessary in addition to SIB funding;for projects on the
State transportation plan.
Thank you for your consideration,an4 if I may clarify or offer additional information,please call
upon me and my staff to do so. I also urge your favorable consideration of this loan application
at your meeting in March.
icerey
4ficiApr 1
4 7, ir
St a, r., 'r ent
Round Rock Transportation System Development Corporation
cc: Michael W. Behrens,P.E., Executive Director
James Bass, Director,Finance Division
Phil Russell,Director,Turnpike Authority Division