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Agenda 04/12/2011 Item #16C1 4/12/2011 Item 16.C.1. EXECUTIVE SUMMARY Recommendation to authorize the County Manager or designee to notify the Florida Department of Environmental Protection of the intent to decline a proposed funding to the State Revolving Fund Loan Agreement (DWIIII 030) for the South County Regional Water Treatment Plant 12-Million Gallons per Day Reverse Osmosis Plant Expansion, Project 700971. OBJECTIVE: That the Board of County Commissioners. as the Ex-Officio Goveming Board of the Collier County Water-Sewer District, authorize the County Manager or a designee to notify the Florida Department of Environmental Protection (FDEP) of the intent to decline a proposed funding to the State Revolving Fund Loan Agreement (DW 1111 030). CONSIDERATIONS: On March 13, 2007, the Board of County Commissioners approved Resolution 2007-66 authorizing the county to submit a State Revolving Fund (SRF) low interest rate construction loan application, and authorizing the Loan Agreement with the FDEP, for the South County Regional Water Treatment Plant (SCRWTP) 12-Million Gallons per Day (MGD) Reverse Osmosis (RO) Plant Expansion, Project 700971. ~ On August 9, 2007, the SRF Loan Agreement was signed by the Chairman of the Board of County Commissioners. the Assistant County Attorney. sealed by the Clerk of the Circuit Court on behalf of the county, and submitted to the FDEP. The Loan Agreement was fully executed on behalf of the state of Florida and the FDEP by the Chief Executive Officer on August 17. 2007. The Agreement executed on August 17, 2007. authorized a disbursable amount of $8.000.000. On September 9, 2008. under Agenda Item 16C2. the Board of County Commissioners (Board) approved Amendment One to the original loan agreement. This Amendment increased the disbursable amount of the loan to $11.200,000. On January 12,2010, under Agenda Item 16C4. the Board approved Amendment Two to the original loan agreement. This /ullendmem increased the disbursable amount of the loan to $17.039.0S6. The FDEP has included to their fundable list another $S,OOO.OOO for this project, whieh if approved will add to the existing debt. increasing it to $22.039.0S6. To strictly adhere to the pay-as-you-go approach to funding capital projects, statT recommends that this additional funding offer. albeit a low interest loan of approximately 2.9% per year, be declined. Foregoing this SS.OOO.OOO to the pre-approved line of credit will save approximately $332.000 in annual debt service payments. This action will not jeopardize the District's ability to borrow from the FDEP in the future. - This financing plan and executive summary was reviewed and approved unanimously by the county's Finance Committee on March 2S. 2011. FISCAL IMPACT: Foregoing this $5,000,000 to the pre-approved line of credit will save approximately $332,000 in annual debt service payments in the water impact fee fund 411. Packet Page -1867- 4/12/2011 Item 16.C.1. LEGAL CONSIDERA nONS: This item has been reviewed and approved by the County Attorney's Office and is legally sufficient. This action requires a simple majority vote by the Board. - JEW GROWTH MANAGEMENT IMPACT: The approval of this request has no impact on the county's Gro\\th Management Plan. RECOMMEND A nONS: That the Board of County Commissioners, as the Ex-Officio Governing Board of the Collier County Water-Sewer District, authorize the County Manager or designee to notify the Florida Department of Enviromnental Protection of the intent to decline a proposed funding to the State Revolving Fund Loan Agreement (OW 1111 030). PREPARED BY: Bala M. Sridhar, Senior Management and Budget Analyst, Public Utilities, Operations Packet Page -1868- 4/12/2011 Item 16.C.1. COLLIER COUNTY Board of County Commissioners Item Number: 16.C.1. Item Summary: Recommendation to authorize the County Manager or designee to notify the Florida Department of Environmental Protection of the intent to decline a proposed funding to the State Revolving Fund Loan Agreement (DW1111 030) for the South County Regional Water Treatment Plant 12-Million Gallons per Day Reverse Osmosis Plant Expansion, Project 700971. Meeting Date: 4/12/2011 Prepa,"ed By Name: SridharBala Title: Management/Budget Analyst, Senior, Utilities Finane 3/8/2011 10:03:23 AM Suhmitted by Title: Director - Operations Support - PUD.Utilities Fina Name: WidesTom 3/8/2011 10:03 :24 AM Appl"Oved By Name: HapkeMargie Title: VALUE MISSING Date: 3/25/2011 10:30:45 AM Name: WidesTom Title: Director - Operations Support - PUD.Utilitics Filla Date: 3/25/2011 11 :55:51 AM Name: DeLonyJim Title: Administrator - Public [Itilities, Date: 3/25/20 II I :39:35 PM Name: WhiteJennifer Title: Assistant County Attorney,County Attorney Packet Page -1869- 4/12/2011 Item 16.C.1. Date: 3/25/2011 4:42:27 PM Name: KlatzkowJeff Title: County Attorney, Date: 3/28/2011 12:09:03 PM Name: GreenwaldRandy Title: Management/Budget Analyst,Office of Management & B Date: 3/29/20114:]4:52 PM Name: IsacksonMark Title: Director-Corp Financial and Mgmt Svs,CMO Date: 4/4/20] 1 12:44:19 PM Name: IsacksonMark Title: Director-Corp Financial and Mgmt Svs.CMO Date: 4/4/2011 2:32:56 PM Packet Page -1870-