Granbury City Council voted unanimously Dec. 2 to approve several steps advancing a major water and wastewater capital program, including a change order for the East Wastewater Treatment Plant and three professional services agreements needed before the city accepts a large state grant.

The council approved Change Order No. 2 to Grakon Construction, Inc., for $335,460.75 to provide 7-inch concrete paving for drivable areas at the East Wastewater Treatment Plant. City staff and the engineer said the heavier 7-inch section is needed to accommodate freight and truck traffic associated with plant operations and that bond funds previously allocated to the project will cover the cost. The motion passed 6-0.

Council also approved professional services agreements to support the project’s next steps: an engineering contract with EHT/Hibbs & Todd/INPROTECH for design work, Norton Rose Fulbright US LLP as bond counsel, and Hilltop Securities as financial adviser. City staff said these agreements are administrative prerequisites to accepting a Texas Water Development Board (TWDB) emerging-contaminants principal forgiveness grant and to advancing permitting, design and future contracting. Each agreement passed on unanimous council votes.

City staff told the council the project is approximately a $100 million program. Staff reported the city has a $57,800,000 grant award from the TWDB and has been invited to apply for up to $50,000,000 from the Drinking Water State Revolving Fund (SRF) to cover an additional portion of the project. A staff representative said the SRF loan terms would reduce financing costs and estimated saving the city roughly $7.5 million in financing costs on a $50 million SRF portion compared with market rates. Staff said a principal-forgiveness agreement from the TWDB will be presented for council resolution at the next meeting and that the expected closing on grant paperwork is scheduled for Jan. 21.

Councilmembers and staff stressed that the professional services will be paid from grant funds where applicable and that the agreements are necessary to satisfy federal and state grant requirements before the city can accept funding and proceed to advertise for bids.

What’s next: staff will finalize the principal forgiveness paperwork and return to council to accept the grant and authorize subsequent contracting steps, including advertising for construction bids and potential future change orders.