Commissioners Court retain Bond Counsel for $3.1M USDA Grant/Loan to Expand Water Treatment Plant
By: Jose G. Landa, Copyright 2014, Eagle Pass Business Journal, Inc.
The Maverick County Commissioners Court held a special meeting on Monday, April 7, 2014, at the Commissioners Courtroom in the Maverick County Courthouse in Eagle Pass, Texas, retaining legal Bond Counsel to assist Maverick County to apply and request a $3.1 Million U.S. Department of Agriculture (USDA) combined Grant/Loan application for the much needed expansion of the County Water Treatment Plant at the Radar Base in northern Maverick County.
One of the more important items on the Agenda was the discussion and possible action to retain a legal Bond Counsel to represent and assist Maverick County with an application for a $3.1 Million application with USDA for a combined grant/loan to finance the desperately needed expansion of the County’s Radar Base Water Treatment Plant.
Former Eagle Passan and now San Antonio lawyer Juan Aguilera made a detailed presentation before Commissioners Court on the USDA’s combined grant and loan program and application process and terms.
During discussion, Maverick County Judge David R. Saucedo stated that that the County’s Radar Base Water Treatment Plant had been rebuilt in 2003 but at present time it has outgrown its usage capacity. “The consumption has outgrown the size of treatment plant, so we must begin to explore avenues to alleviate and find a solution,’ added Judge Saucedo.
“I work with the County on different financial undertakings that require legal work so I work with the county as bond counsel,” said Bond Counsel Juan Aguilera.
Aguilera stated that the United States Department of Agriculture (USDA) requires that when you are going to enter into a loan and grant agreement that the entity must present a contract. The engineers and attorneys must also be chosen and set a contract to be entered into, stated Aguilera.
Aguilera stated that this particular project had been pending for a while and that USDA had finally committed to Maverick County to provide a development grant in an amount not to exceed $1 107,000 and a loan not to exceed $2,028,000, totaling $3,107,000 overall.
“The County first got monies in 1995 receiving $800,000 in grant funds. Back in 2003 you also received grant funding in the amount of $1,600,000 in grant funds as well for the water plant. The capacity of that water plant is to its limit and now we have to increase the capacity of that water plant. The USDA is now coming in and wants to offer the County and work with you and provide a $1,107,00 grant. Since 1995 the county has received $3.5 million dollars that it has not had to pay back,” said Aguilera.
“It is rare that I see any type of grant from the USDA so this is good news for the residents of Maverick County,” Added Aguilera.
Aguilera also noted that the USDA loan part of the agreement was for up to 40 years at only 2 ½ % interest rate, a very low rate. “ You will not have to or be obligated to maintain the loan for the 40 years. The agreement documents will reflect that the loan can be paid off at any time,” Added Aguilera.
Aguilera then recommended to Commissioners Court that this USDA combined grant and loan program is something to seriously consider.
“If it’s the wishes of the Court, you may retain our law firm as your bond counsel and to move forward with the financing aspect of the grant agreement,” stated Aguilera.
Aguilera added that by Commissioners Court retaining his law firm as legal counsel that it in no way would obligate Commissioners Court to enter into any type of agreement with USDA.
“That would then be something that I will have to negotiate with USDA on behalf of the County. Then, if you so desire to move forward then you would have to come back and publicize a resolution and letter of intent,” added Aguilera.
After that, the County may then proceed if it so wishes with the grant and loan from USDA.
The retainer amount has a fixed amount due to USDA specifications and it will be in the amount of $30,670 dollars, added Aguilera, which will be paid through the USDA loan/grant once acquired.
Aguilera further stated that if he was retained by the County on this matter, he would then be back in the near future to present to Commissioners Court their options. Then the County would decide if it wants to enter into the $3.1 Million grant/loan agreement with USDA.
After concurring that this USDA grant/loan program would be beneficial for the citizens of Maverick County, Maverick County Commissioners Court unanimously approved to retain Juan Aguilera as legal Bond Counsel for Maverick County to assist the County in applying for the $3.1 Million joint grant and loan USDA program for the expansion of the County’s Radar Base Water Treatment Plant.
Another important Agenda item at the April 7th meeting was the discussion and possible approval of an intergovernmental agreement for services between the City of Eagle Pass and Maverick County and to authorize Maverick County Judge David Saucedo to negotiate fee schedules for building inspections.
Discussion included the details of the building inspections agreement, issues, and information pertaining to code building inspections and options that could be explored by the County.
Maverick County Commissioner of Precinct 1 Gerardo “Jerry” Morales stated that one of the issues on the matter was that financial institutions before approving a loan on homes and buildings required that an inspection be done on the building, and that if an inspection was not done, then the loan could not be approved for financing.
County Judge David R. Saucedo stated that he felt that it could be beneficial for the County to be able to also contract such services through other sources as well.
Judge Saucedo then asked Maverick County General Counsel Poncho Nevarez for an opinion of fact on the specifics of the proposed agreement between the City and County. “Mr. Nevarez, aren’t we allowed as members of the Court to contract with somebody from the outside to do these services?” asked Judge Saucedo.
General Counsel Poncho Nevarez replied that it could be an option, that it was not limited to the agreement with the City for such services. “ It’s usually an intergovernmental agreement,” said Nevarez.
“Can’t we have somebody from the outside come in and do these inspections?” asked Judge Saucedo.
Nevarez further explained the situation with what the agenda item entailed and what were the options for the County in establishing a decision on the agreement between Maverick County and the City of Eagle Pass for services rendered and fees.
Judge Saucedo then asked that if the County was to outsource the contract would it be possible for some of the funding to stay within the county in savings depending on the negotiations of the contracts. Nevarez replied that he would have to check up on that issue and those possibilities.
Judge Saucedo then stated “Here is the dilemma that I have as a member of the Court. Since 1997, we have had some Colonias that were ready to be annexed. At that juncture, the City Administration refused. What is it that we are doing here, we are allowing the City to give services outside of the city limits, which is fine, but it doesn’t entice them to annex anything.”
Judge Saucedo then stated that “Maverick County is unique because it has more unincorporated population outside of the City of Eagle Pass city limits than inside of the city. It is the only county along the border that is like that.” “It is like that because of a lack of annexation on areas ready to be annexed which is spreading the county thin,” added Judge Saucedo.
Judge Saucedo then asked General Counsel Nevarez if it could be stated in the agreement that they (County) could either work with the City of Eagle Pass or an outsource entity that also performs these type of services. Nevarez replied that it was possible, on the wishes of the Court and that would then give the Court some flexibility in finding the services needed at the discretion of the Court.
The agenda item was then amended into motion to read to either/or outsource, or reach an intergovernmental agreement with the City of Eagle Pass.
Judge Saucedo further stated that working with the City of Eagle Pass was not out of the realm of possibility, but rather it is looking at both avenues to see what is more feasible for the County.
The amended agenda item was then called for a vote and was passed unanimously by Commissioners Court.
Judge Saucedo touched on a key issue between the many colonias or subdivisions outside the City of Eagle Pass city limits which the State of Texas and the Texas Water Development Board have spent millions of dollars to provide them with sewer and potable water from the City of Eagle Pass so that the City can annex and incorporate them into the City limits, which it has failed to do so. The City of Eagle Pass over the past 20 years has taken a slow approach towards annexing any subdivisions or colonias outside the current city limits. The result is that there are more persons living outside the city limits of Eagle Pass than in the City of Eagle Pass itself, causing financial hardship and service problems to Maverick County. This is an important issue that the City of Eagle Pass and Maverick County need to address immediately for the benefit of the growth of the community.
