Brownwood City Council recently passed a resolution authorizing the publication of a notice of intention to issue Certificates of Obligation in an amount up to $4,815,000 to pay costs of improving the City’s water and wastewater systems.
On November 13, 2012, the council authorized issuance of a Certificate of Obligation through the Texas Water Development Board (TWDB) for $3,440,000 to pay for improvements to the wastewater improvement plant (WWTP). After paying for engineering and issuance cost of this CO, there is $2,654,000 remaining for construction, explained Brownwood Director of Finance Walter Middleton.
The council authorized additional improvements totaling $2,317,000 to the WWTP ($1,505,000) and the Roanoke water storage tank (up to $680,000) and lift station repairs ($132,000) on May 20, 2015.
On July 21, 2015, city officials opened bids for the project which were unexpectedly high. July 28, 2015 the council approved the low bid from Gracon Construction for $6,498,000.
“This meant that we needed to cover an additional $2,339,000 in WWTP costs over what was previously authorized,” said Middleton. He explained that a total of $3,844,000 in additional funds was needed in excess of the TWDB money that was available.
The borrowed funds will be used to make improvements to the wastewater treatment plant in the amount of $3,844,000, make the improvements to the Roanoke water storage tank up to $680,000, and lift station repairs of $132,000, along with issuance costs not to exceed $84,000 and a contingency amount of $75,000 in case of any unexpected issues arise at either project, according to Middleton.The council’s action approves a printed notice of intent in the local newspaper. This is the first step in issuing the COs, said Middleton. He explained that any unused money from the project would got into the contingency fund or could be used on other projects or applied to the back end of the bonds.
Middleton stated that the timeline includes the publication of the notice of intent to issue COs in news print on August 27 and September 3, soliciting bids from private purchasing banks on September 21 on a private placement basis, receiving bids for the project by October 2, considering authorizing the issuance of COs and their sale on October 13, and receive funding for the construction on November 2, 2015.
In other matters on Tuesday’s agenda:
*Council vote to award a bid to Roberts & Petty to replace two HVAC units at the municipal court in the Joint Law Enforcement Center for $19,430 and authorized funding from cash reserves.
*Council approved an ordinance on second and third readings amending Ordinance No. 96-22 lengthening the no parking zone in front of the Brownwood Manor located on the southwest side of E. Lee Street beginning 100 feet southwest of Center Avenue to Brown Street.
*Council declared a 1997 Harmony baler surplus property and authorized the donation of the equipment to the City of Munday. The baler was originally purchased with grant funds from the West Central Texas Council of Governments. The equipment was able to be donated because of its nominal value, according to City Attorney Pat Chesser.
