Agenda 09/14/2010 Item #16C 2
Agenda Item No. 16C2
September 14, 2010
Page 1 of 12
EXECUTIVE SUMMARY
Recommendation to authorize submission of Amendment Two to the State
Revolving Fund Loan Agreement (DW 1111020) through the Florida Department of
Environmental Protection for the North County Regional Water Treatment Plant
Lower Hawthorn Wells numbers 18, 19, and 20, Project 71006, reducing the
authorized loan amount by $1,334,909.
OBJECTIVE: That the Board of County Commissioners (Board), as the Ex-Officio
Governing Board of the Collier County Water-Sewer District, authorize submission of
Amendment Two to the State Revolving Fund Loan Agreement (DW 1111020) with the
Florida Department of Environmental Protection (FDEP), reducing the authorized loan
amount by $1,334,909.
CONSIDERATIONS: On July 25, 2006, under Agenda Item 16C2, the Board approved
Resolution 2006-168, authorizing the submission of a State Revolving Fund (SRF) low
interest rate construction loan application and authorizing the Loan Agreement with the
FDEP for the North County Regional Water Treatment Plant (NCRWTP) Lower
Hawthorn Wells numbers 18, 19, and 20, Project 71006.
The loan agreement was fully executed on behalf of the State of Florida and the FDEP by
the FDEP Director on October 16, 2006. The agreement authorized a loan amount of
$6,895,722. The FDEP made available only $6,000,000 of the total amount at 2.75% per
year for reimbursement due to the annual segment cap.
On December 11,2007, under Agenda Item 16Cl, the Board authorized Amendment One
for the remaining $895,722. The Loan Agreement was fully executed on behalf of the
State of Florida and the FDEP by the FDEP's Chief Executive Officer on December 21,
2007.
Amendment Two establishes the fmal disbursable amount at $5,560,813. This reduces the
loan amount by $1,334,909, reducing the semi-annual loan payment amount by
$53,620.03, to $178,797.97.
This executive summary was reviewed and approved by the Finance Committee on
August 27,2010.
FISCAL IMPACT: SRF Loan Amendment Two adjusts the Loan Amount, excluding
capitalized interest, to $5,560,813. The semi-annual loan repayment amount was adjusted
to $178,797.97 over a 20-year loan cycle at a financing rate of 2.75%. The NCRWTP
Lower Hawthorn Wells numbers 18, 19, and 20, Project 71006, is in Water Capital
Project Fund 412.
LEGAL CONSIDERATIONS: The Office of the County Attorney has approved the
proposed Amendment Two for legal sufficiency. Once executed by the Chairman of the
Board, Amendment Two will be forwarded to FDEP for final approval. - JBW
GROWTH MANAGEMENT IMPACT: The approval of this amendment has no
impact on growth management.
Agenda Item No. 16C2
September 14, 2010
Page 2 of 12
RECOMMENDATIONS: That the Board of County Commissioners, as the Ex-Officio
Governing Board of the Collier County Water-Sewer District, authorize submission of
Amendment Two to the SRF Loan Agreement (DW 1111020) with the FDEP.
PREPARED BY: Bala M. Sridhar, Senior Management and Budget Analyst, Public
Utilities, Operations
Agenda Item No. 16C2
September 14, 2010
Page 3 of 12
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number:
Item Summary:
16C2
Recommendation to authorize submission of Amendment Two to the State Revolving Fund
Loan Agreement (DW 1111020) through the Florida Department of Environmental Protection
for the North County Regional Water Treatment Plant Lower Hawthorn Wells numbers 18,
19, and 20, Project 71006, reducing the authorized loan amount by $1,334,909.
9/14/20109:00:00 AM
Meeting Date:
Approved By
Margie Hapke
Operations Analyst
Date
Public Utilities Division
Public Utilities Division
8/18/20102:50 PM
Approved By
Thomas Wides
Director - Operations Support - PUD
Date
Public Utilities Division
Utilities Finance Operations
8/20/2010 11 :21 AM
Approved By
Jennifer White
Assistant County Attorney
Date
County Attorney
County Attorney
8/24/20108:18 AM
Approved By
Jeff Klatzkow
County Attorney
Date
8/24/2010 10:47 AM
Approved By
James W. Delony
Public Utilities Division Administrator
Date
Public Utilities Division
Public Utilities Division
8/26/20109:36 AM
Approved By
OMB Coordinator
Date
County Manager's Office
Office of Management & Budget
8/26/20109:40 AM
Approved By
Susan Usher
Management/Budget Analyst, Senior
Date
Office of Management &
Budget
Office of Management & Budget
9/7/201012:10 PM
Approved By
Mark Isackson
Management/Budget Analyst, Senior
Date
Office of Management &
Budget
Office of Management & Budget
9/7/20104:31 PM
Agenda Item No. 16C2
September 14, 2010
Page 4 of 12
.f
DRINKING WATER ST ATE REVOLVING FUND
AMENDMENT 2 TO LOAN AGREEMENT DW1111 020
COLLIER COUNTY
This amendment is executed by the STATE OF FLORIDA DEPARTMENT OF
ENVIRONMENTAL PROTECTION (Department) and COLLIER COUNTY, FLORIDA, (Project
Sponsor) existing as a local government agency under the laws of the State of Florida.
WITNESSETH:
WHEREAS, the Department and the Project Sponsor entered into a Drinking Water State
Revolving Fund Loan Agreement, Number DWllll 020, as amended, authorizing a Loan
amount of $6,895,722, excluding Capitalized Interest; and
WHEREAS, the Loan amount and Project costs need adjustment to reflect actual costs; and
WHEREAS, the Semiann~al Loan Payment amount needs revision to reflect adjustment of the
Loan amount and account for payments made to date.
WHEREAS, revised provisions for audit and monitoring along with related changes to the
Project schedule are needed.
NOW, THEREFORE, the parties hereto agree as follows:
1. The Loan amount is hereby reduced by $1,334,909, and the adjusted total disbursed
Loan amount is $5,560,813.
2. The Loan Service Fee is $137,914.00, and capitalized Loan Service Fee interest is
$3,290.96.
3. The unpaid principal balance of the Loan is $4,940,806.60 at an interest rate of 2.75
percent per annum, which ainount accounts for the Department's receipt of five Semiannual
Loan Payments.
4. The Semiannual Loan Payment amount, adjusted to account for repayments received
to date, is hereby revised and shall be in the amount of $178,797.97. Such payments shall be
received by the Department on October 15, 2010 and semiannually thereafter on April 15 and
October 15 of each year until all amounts due hereunder have been fully paid.
5. Section 2.03 of the Agreement, as amended, is deleted and replaced as follows:
(1) The financial assistance authorized pursuant to this Loan Agreement consists of the
following:
Federal Resources, Including State Match, Awarded to the Recipient Pursuant to this Agreement Consist
of the Followin :
Agenda Item No. 16C2
September 14, 2010
Page 5 of 12
Federal State
'Program Federal CFDA Funding Appropriation
Number Agencv Number CFDA Title Amount Category
FS984522-060 EPA 66.468 Capitalization Grants $5,560,813 140129
for Drinking Water
State Revolving Fund
(2) Audits.
(a) In the event that the Local Government expends $500,000 or more in Federal awards
in its fiscal year, the Local Government must have a single or program-specific audit conducted
in accordance with the provisions of OMB Circular A-133, as revised. Subsection 2.03(1) of this
Agreement indicates that Federal funds are awarded through the Department by this
Agreement. In determining the Federal awards expended in its fiscal year, the Local
Government shall consider all sources of Federal awards, including Federal resources received
from the Department of Environmental Protection. The determination of amounts of Federal
awards expended should be in accordance with the guidelines established by OMB Circular A-
133, as revised. An audit of the Local Government conducted by the Auditor General in
accordance with the provisions of OMB Circular A-133, as revised, will meet the requirements
of this part.
(b) In connection with the audit requirements addressed in the preceding paragraph (a),
the Local Government shall fulfill the requirements relative to auditee responsibilities as
provided in Subpart C of OMB Circular A-133, as revised.
(c) If the Local Government expends less than $500,000 in Federal awards in its fiscal
year, an audit conducted in accordance with the provisions of OMB Circular A-133, as revised,
is not required. The Local Government shall inform the Department of findings and
recommendations pertaining to theState Revolving Fund in audits conducted by the Local
Government in which the $500,000 threshold has not been met. In the event that the Local
Government expends less than $500,000 in Federal awards in its fiscal year and elects to have an
audit conducted in accordance with the provisions of OMB Circular A-133, as revised, the cost
of the audit must be paid from non-Federal resources (i.e., the cost of such an audit must be
paid from Local Government resources obtained from other than Federal entities).
(d) The Local Government may access information regarding the Catalog of Federal
Domestic Assistance (CFDA) via the internet at www.cfda.gov/index?cck=1&au=&ck=.
(3) Report Submission.
(a) Copies of reporting packages for audits conducted in accordance with OMB Circular
A-133, as revised, and required by Subsection 2.03(2) of this Agreement shall be submitted,
when required by Section .320 (d), OMB Circular A-133, as revised, by or on behalf of the Local
Government directly to each of the following:
(i) The Department at the following address:
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Agenda Item No. 16C2
September 14, 2010
Page 6 of 12
Joe Aita, Audit Director
Office of the Inspector General
Florida Deparbnent of Environmental Protection
3900 Commonwealth Boulevard, MS 41
Tallahassee, Florida 32399-3123
(ii) The Federal Audit Oearinghouse designated in OMB Circular A-133, as revised
(the number of copies required by Sections .320 (d)(1) and (2), OMB Circular A-133,
as revised, should be submitted to the Federal Audit Oearinghouse), at the
following address:
Federal Audit Clearinghouse
Bureau of the Census
1201 East 10th Street
Jeffersonville, IN 47132
Sl,lbmissions of the Single Audit reporting package for fiscal periods ending on or
after January 1, 2008, must be submitted using the Federal Oearinghouse's Internet
Data Entry System which can be found at http://harvester.census.gov / fac/
(ill) Other Federal agencies and pass-through entities in accordance with Sections
.320(e) and (f), OMB Circular A-133, as revised.
(b) Pursuant to Section .320(f), OMB Circular A-133, as revised, the Local Government
shall submit a copy of the reporting package described in Section .320(c), OMB Circular A-133,
as revised, and any management letters issued by the auditor, to the Department at the address
listed under Subsection 2.03(3)(a) of this Agreement.
(c) Any reports, management letters, or other information required to be submitted to
the Deparbnent pursuant to this Agreement shall be submitted timely in accordance with OMB
Circular A-133, Florida Statutes, or Chapters 10.550 (local governmental entities) or 10.650
(nonprofit and for-profit organizations), Rules of the Auditor General, as applicable.
(d) Local Governments, when submitting financial reporting packages to the
Department for audits done in accordance with OMB Circular A-133, or Chapters 10.550 (local
governmental entities) or 10.650 (nonprofit and for-profit organizations), Rules of the Auditor
General, should indicate the date that the reporting package was delivered to the Local
Government in correspondence accompanying the reporting package.
(4) Project-Specific Audit.
Within 12 months after the amendment establishing final Project costs, the Local
Government shall submit to the Department a Project-specific audit report for the Loan related
revenues and expenditures. The audit shall address Loan disbursements received, Project
expenditures, and compliance with Loan Agreement covenants. The Local Government shall
cause the auditor to notify the Department immediately if anything comes to the auditor's
attention during the examination of records that would constitute a default under the Loan
Agreement. The audit findings shall set aside or question any costs that are unallowable under
3
Agenda Item No. 16C2
September 14, 2010
Page 7 of 12
Chapter 62-503/ Florida Administrative Code. A final determination of whether such costs are
a116wed shall be made by the Department.
(5) Record Retention.
The Local Government shall retain sufficient records demonstrating its compliance with
the terms of this Agreement for a period of five years from the date the audit report is issued,
and shall allow the Department, or its designee, Chief Financial Officer, or Auditor General
access to such records upon request. The Local Government shall ensure that audit working
papers are made available to the Department, or its designee, Chief Financial Officer, or Auditor
General upon request for a period of five years from the date the audit report is issued, unless
extended in writing by the Department.
The Local Government is hereby advised that the Federal and/ or Florida Single Audit
Act Requirements may further apply to lower tier transactions that may be a result of this
Agreement. For federal financial assistance, the Local Government shall utilize the guidance
provided under OMB Circular A-133, Subpart B, Section _.210 for determining whether the
relationship represents that of a subrecipient or vendor.
The Local Government should confer with its chief financial officer, audit director or
contact the Department for assistance with questions pertaining to the applicability of these
requirements.
In addition, the Local Government agrees to complete and submit the Certification of
Applicability to Single Audit Act Reporting, Attachment A, attached hereto and made a part
hereof, within four (4) months following the end of the Local Government's fiscal year.
Attachment A should be submitted to the Department's Grants Development and Review
Manager at 3900 Commonwealth Boulevard, Mail Station 93, Tallahassee, Florida 32399-3000.
The Grants Development and Review Manager is available to answer any questions at
(850) 245-2361.
(6) Monitoring.
In addition to reviews of audits conducted in accordance with OMB Circular A-133, as revised
(see audit requirements above), monitoring procedures may include, but not be limited to, on-
site visits by Department staff, limited scope audits as defined by OMB Circular A-133, as
revised, and/ or other procedures. By entering into this Agreement, the Local Government
agrees to comply and cooperate with any monitoring procedures/processes deemed
appropriate by the Department. In the event the Department determines that a limited scope
audit of the Local Government is appropriate, the Local Government agrees to comply with any
additional instructions provided by the Department to the Local Government regarding such
audit. The Local Government further agrees to comply and cooperate with any inspections,
reviews, investigations, or audits deemed necessary by the Chief Financial Officer or Auditor
General.
6. The closeout audit required under Subsection 2.03(4) of the Agreement shall be
submitted within twelve months after the effective date of this amendment.
4
Agenda Item No. 16C2
September 14, 2010
Page 8 of 12
7. The Project Sponsor and the Department acknowledge that changes in Project costs .
may occur as a result of the Project Sponsor's Project audit or a Department audit pursuant to
Chapter 62-552 of the Florida Administrative Code. Unless this Agreement is amended
subsequent to an audit, the following Project disbursements shall be final.
CATEGORY
. Administrative Allowance
Engineering Allowance
Construction and Demolition
Technical Services During Construction
SUBTOTAL
Capitalized Interest
TOTAL (Loan Principal Amount)
DISBURSED($)
38,668.00
412,454.00
4,811,150.00
298,541.00
5,560,813.00
64,732.83
5,625,545.83
8. All other terms and provisions of the Loan Agreement shall remain in effect.
REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
5
Agenda Item No. 16C2
September 14, 2010
Page 9 of 12
This Amendment 2 to Loan Agreement DWll11 020 shall be executed in three or
more counterparts, any of which shall be regarded as an original and all of which constitute but
one and the same instrument.
IN WITNESS WHEREOF, the Department has caused this amendment to the Loan
Agreement to be executed on its behalf by the Deputy Director, and the Project Sponsor has
caused this amendment to be executed on its behalf by its Authorized Representative and by its
affixed seal. The effective date of this amendment shall be as set forth below by the Deputy
Director.
for
COLLIER COUNTY
Chairman
Attest
Approved as to Form and Correctness.
SEAL
~~\-. )0 L
Assis t County Attorney
::5i-f'..JN \ Fl:. V2... ~. W ~ '" -.;;:: ~
County Clerk
for
STATE OF FLORIDA
DEPARTMENT OF ENVIRONMENTAL PROTECTION
Deputy Director
Date
Attachment included as part of this Agreement:
Attachment A - Certification of Applicability to Single Audit Act Reporting
6
.'
Agenda Item No. 16C2
September 14, 2010
Page 10 of 12
ATT ACHMENT A
CERTIFICATION OF APPLICABILITY TO SINGLE AUDIT ACT REPORTING
Local Government's Name:
Local Government's Fiscal Year Period: FROM:
TO:
Total State Financial Assistance Expended during Local Government's most recently completed
Fiscal Year: $
Total Federal Financial Assistance Expended during Local Government's most recently
completed Fiscal Year: $
Please identify grants to be included in the Single Audit that are provided by the Department of
Environmental Protection
CSF A#CFDA# DEP LOAN AGREEMENT NUMBER
CERTIFICATION STATEMENT:
I hereby certify that the above information is correct:
Name
Date
Title
DEP Project Agreement No. xxxx, Attachment A, Page 1 of 1
" Agenda Item No. 16C2
September 14, 2010
Page 11 of 12
CERTIFICATION OF APPLICABILITY TO SINGLE AUDIT ACT REPORTING
. ' FREQUENTLY ASKED QUESTIONS
1. Question: Can I fax the form to you?
Answer: Yes, you can fax the Certification form, the fax number is 850/245-2411.
2. Question: How can I submit the form if our audit is not completed by the due date of
this letter?
Answer: You should be able to complete the form from the information in your
accounting system. This is just to let our Office of the Inspector General know which
entities they should be getting an audit from. If you are under the threshold you do not
have to submit a copy of your audit, only the Certification form.
3. Question: Do you only want what we received from DEP?
Answer: No, the Single Audit is the TOTAL AMOUNT of funds that you expended
towards all state or federal loans or grants that you receive. You should list those that are
specific to DEP on the form.
4. Question: How do I know what the CSF A/CFDA Number is?
Answer: These numbers should be identified in the loan or grant agreement. If you
cannot locate them you should call your DEP Project manager and ask them for the
needed information. If it is a grant funded by DEP, you may contact Debbie Skelton,
DEP Grants Development and Review Manager at (850) 245-2371.
5. Question: Do I have to submit the completed form and a copy of my audit?
Answer: No, you do not have to submit your audit unless you are over the threshold of
$500,000. If you would prefer to submit your audit (CAFR) instead of the form, that is
fine.
6. Question: Our CAFR will not be ready before your due date and we don't have the
information necessary to complete the certification. Can we get an extension?
Answer: Yes, just send us an Email letting us know when you will have your CAFR
completed and we will place the Email with your letter in our file so that you don't get a
2nd .
notIce.
.'
INSTRUCTIONS FOR COMPLETING THE ATTACHMENT
Local Government Fiscal Year Period: FROM: Month/Year. TO: Month/Year
Agenda Item No. 16C2
September 14, 2010
Page 12 of 12
. '
NOTE: THIS SHOULD BE THE LOCAL GOVERNMENT'S FISCAL YEAR FROM
(MONTH/YEAR) TO (MONTH/YEAR).
Total State Financial Assistance Expended during Local Government's most recently completed Fiscal
Year:
NOTE: THIS AMOUNT SHOULD BE THE TOTAL STATE FINANCIAL ASSISTANCE
EXPENDED FROM ALL STATE AGENCIES, NOT JUST DEP.
$
Total Federal Financial Assistance Expended during Local Government's most recently completed
Fiscal Year:
NOTE: THIS AMOUNT SHOULD BE THE TOTAL FEDERAL FINANCIAL ASSISTANCE
E;KPENDED FROM ALL FEDERAL AGENCIES, NOT JUST THROUGH DEP.
$
Please identify loans and/or grants to be included in the Single Audit that are provided by
the Department of Environmental Protection.
CSFAlCFDA Number
DEP Grant Al!reement Number
THIS INFORMATION SHOULD ONLY BE THOSE LOANS OR GRANTS RECEIVED
FROMffHROUGH THE DEP. THE INFORMATION REQUESTED (CSFAlCFDA#
SHOULD BE FOUND IN THE SINGLE AUDIT A TT ACHMENT TO THE
AGREEMENT AND THE DEP AGREEMENT NUMBER SHOULD BE FOUND ON
THE AGREEMENT.)
The Certification should be signed by your Chief Financial Officer. Please print the name and
include the title and date of the signature. The form is to be returned to me, not the DEP Project
Manager. If! don't get the form four (4) months after the end of the Local Government's fiscal
year, I will send them a letter, along with the form and instructions, six (6) months after the end
of their fiscal year to complete and return to me.
Don't hesitate to give me a call if you have any questions.
Debbie Skelton, OMC Manager
Grants Development and Review Section
Carr Building, Room 2350
3900 Commonwealth Boulevard, MS# 93
Tallahassee, Florida 32399-3000
Phone: (850) 245-2371
Fax: (850) 245-2411
Email: debbie.skelton@deD.state.f1.us