Pearsall’s water project has TWDB funds

By Breyana Segura - Chief Staff Writer | July 24, 2024

Pearsall city councilors learned earlier this month that funding for a water infrastructure improvement project along the north side of town has been secured through the Texas Water Development Board.
Engineering company CDM Smith representative Stacy Barna said on Tuesday, July 9, that the design for both water and wastewater line extensions are complete.
“This has been going on for two years,” the engineer told councilors. “We have been working on the project. The utility coordination is still ongoing. Most buyers we work with are favorably on board.”
Brana said utility companies such as Spectrum, AT&T, West Texas Gas, and La Salle Pipeline have agreed to terms and CDM Smith continues working with electrical companies.
The water extension project, which comes with a $6.3 million price tag, will be funded through the Texas Water Development Board.
According to Barna, the 30-year, $6.3 million loan has an interest rate that will be determined at closing; the loan is slated to go before the water board in mid-August.
“[The interest rate] is about a half-percent lower than market rates,” the engineer said. “The city did qualify for one million dollars in principal forgiveness. Then there is a $105,000 asset management plan, which is a zero-percent interest rate for that portion.”
According to the engineer, the interest rate for the city would be around 2.5 to 3 percent.
Pearsall City Manager Federico Reyes said the project is shovel-ready and once the funding is secured, the city is ready to seek bids. He said there is some urgency in beginning construction due to a time-sensitive project scheduled by the Texas Department of Transportation (TxDOT).
“Part of the challenge is we are ready to go out of bids,” the city manager said. “The sidewalk is the problem. TxDOT is saying there needs to be an action plan. In essence, we are in their way.”
Reyes expects TxDOT to begin the sidewalk project in February.
Mayor Ben Briscoe told councilors that he and Reyes met with the TxDOT local engineer and reached an agreement that the sidewalk project be pushed back.
“They said they would do the San Antonio project first, then ours,” the mayor said.
Barna said her firm continues negotiations over placement of lift stations, which will be completed in phase two of the project.
“We have sent out the TxDOT coordination letters of no objection needed for driveway crossings,” the engineer said. “We have twenty signed; these include residences and businesses, and we have thirty-two outstanding.”
The city awaits funding options through the Water Development Board for the wastewater portion of the project.
According to Barna, the city is ranked 52nd on the list for the clean water state revolving fund, but the board only invited the first 22 cities. That project for Pearsall has a $20 million price tag.