Agenda 07/22/2008 Item #16C 6Agenda Item No. 16C6
July 22, 2008
Page 1 of 5
Executive Summary
Approve a Resolution authorizing the submission of a State Revolving Fund low— interest
Construction Loan Application and authorizing the Loan Agreement to the Florida
Department of Environmental Protection for the Wells #34 and #37 and Pipeline
Replacement nroiect 701582.
OBJECTIVE: The public purpose is to increase the reliability of our water production facilities
to ensure adequate capacity to meet the water demands of our customers. The two new wells will
be constructed in the Golden Gate Wellfield. This action request is to allow the County to obtain
a State Revolving Fund (SRF) low- interest Construction Loan for this project.
CONSIDERATIONS: On October 9, 2007, Agenda Item IOD the Board of County
Commissioners (Board) awarded Contract #07 -4130 to Mitchell & Stark Construction Company,
for the construction of Wells #34 and #37 and Pipeline Replacement. The project is included and
is consistent with the 2008 Water Master Plan Update adopted by the Board on June 24, 2008,
Agenda Item 10(G), Project 701582, "Tamiami Well Replacement Program (Well Nos. 34 and
37) ", Section 8, Table 8 -2, page 2 of 5, line 69.
Collier County is seeking a SRF low - interest Construction Loan from the Florida Department of
Environmental Protection (FDEP) in the amount of $3,395,856 including capitalized interest to
finance this project. These funds will be used for the construction of Wells #34 and #37 and
Pipeline Replacement (701582). The FDEP has added this project to the Fiscal Year 2008
fundable portion of the SRF Priority list as a result of the April 4, 2008 Public Hearing held by
the Department. The County is now in the position to authorize the submission of the SRF Loan
Application and execute the Loan agreement for this project.
FISCAL IMPACT: Wells #34 and #37 and Pipeline Replacement project (701582) is
consistent with the FY 08 capital budget approved by the Board of County Commissioners on
September 20, 2007. This SRF loan is the permanent financing mechanism for this project. The
SRF Loan amount excluding capitalized interest is $3,360,944. The estimate of the capitalized
interest is $34,912 based on a financing rate of 2.77% and construction cost of $2,634,639. This
loan also includes contingency of $131,732 and technical services of $363,000 along with
administrative and engineering allowances of $231,573. The anticipated annual loan repayment
is $226,689 over a 20 -year loan cycle.
LEGAL CONSIDERATIONS: The proposed Loan Application for Wells #34 and #37 and
Pipeline Replacement has been approved for legal sufficiency by the Office of the County
Attorney.
GROWTH MANAGEMENT IMPACT: This project meets current Growth Management Plan
Standards to ensure the adequacy and availability of viable public facilities.
RECOMMENDATIONS: That by approval of this executive summary the Board of County
Commissioners, as Ex- officio the Governing Board of the Collier County Water -Sewer District:
• Adopts the attached Resolution to authorize submission of the SRF Loan Application.
Executive Summary
Wells #34 and #37 and Pipeline Replacement -SRF Funding
Agenda Item No. 16C6
July 22, 2008
Page 2 of 5
Page 2
Prepared by: Oscar Martinez, Senior Project Manager, Public Utilities Engineering
Page I of 1
Agenda Item No. 16C6
July 22, 2008
Page 3 of 5
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number: 16C6
Item Summary: Approve a Resolution authorizing the submission of a State Revolving Fund lowinterest
Construction Loan Application and authorizing the Loan Agreement to the Florida
Department of Environmental Protection for the Wells #34 and #37 and Pipeline
Replacement project 701582.
Meeting Date: 7/22/2008 9.00:00 AM
Approved By
Thomas Wides
Operations Director
Date
Public Utilities
Public Utilities Operations
7/2/2008 10:40 PM
Approved By
Jennifer A. Belpedio
Assistant County Attorney
Date
County Attorney
County Attorney Office
713/2008 9:05 AM
Approved By
James W. DeLony
Public Utilities Administrator
Date
Public Utilities
Public Utilities Administration
7/3/2008 11:19 AM
"`- Approved By
OMB Coordinator
OMB Coordinator
Date
County Manager's Office
Office of Management & Budget
71312008 3:32 PM
Approved By
Susan Usher
Senior Management/Budget Analyst
Date
County Manager's Office
Office of Management & Budget
7/7/2008 9:52 PM
Approved By
James V. Mudd
County Manager
Date
Board of County
County Manager's Office
7/812008 10:14 AM
Commissioners
file: / /C: \AgendaTest \Export\1 11- July% 2022,% 202008 \16. %2000NSENT %20AGENDA \l ... 7/15/2008
Agenda Item No. 16C6
July 22, 2008
Page 4 of 5
RESOLUTION NO. 2008-
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER
COUNTY, FLORIDA, AS EX- OFFICIO THE GOVERNING BOARD OF THE COLLIER
COUNTY WATER -SEWER DISTRICT, RELATING TO THE STATE REVOLVING
FUND LOAN PROGRAM; MAKING FINDINGS; AUTHORIZING THE LOAN
APPLICATION; AUTHORIZING THE LOAN AGREEMENT; ESTABLISHING
PLEDGED REVENUES; DESIGNATING AUTHORIZED REPRESENTATIVES;
PROVIDING ASSURANCE AND EFFECTIVE DATE
WHEREAS, Section 403.8532, Florida Statutes provide for loans to local government
agencies to finance the planning, design, administration and construction of drinking water
facilities. The Florida Administrative Code, Chapter 62 -552 requires authorization to apply for
loans and to enter into these loan agreements; and
WHEREAS, the State Revolving Fund loan priority list designates Project No.
DWI II1010 as eligible for available funding and Collier County intends to enter into a loan
agreement with the Florida Department of Environmental Protection under the State Revolving
Fund for project financing.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY, FLORIDA, AS EX- OFFICIO THE
GOVERNING BOARD OF THE COLLIER COUNTY WATER -SEWER DISTRICT that:
SECTION 1. The foregoing findings are incorporated herein by reference and made a part
hereof.
SECTION 2. The Board of County Commissioners of Collier County, Florida, as Ex- Officio the
Governing Board of the Collier County Water -Sewer District ( "District ") is authorized to apply
for a construction loan to finance the Wells #34 and #37 and Pipeline Replacement project
701582.
SECTION 3. The revenues pledged for the repayment of this loan are the Gross Revenues
derived yearly from the operation of the Water and Sewer Systems and Development Fees, after
payment of the Operation and Maintenance Expense and the satisfaction of all yearly payment
obligations on account of the Senior Revenue Obligations and any senior obligations issued.
SECTION 4. The Chairman of the Collier County Board of County Commissioners is hereby:
(a) Designated to be the District's authorized representative to provide assurances
and commitments required by the loan applications; and
(b) Authorized to execute the loan agreements /amendments (which will become a
binding obligation in accordance with its terms when signed by both parties); and
(c) Authorized to represent the District in carrying out its responsibilities under the
loan agreement; and is
(d) Authorized to delegate responsibility to appropriate staff to carry out technical,
financial, and administrative activities associated with the loan agreement.
SECTION 5. The legal authority for the District borrowing moneys to construct this Project is
Florida Statutes.
Agenda Item No. 16C6
July 22, 2008
Page 5 of 5
SECTION 6. This Resolution shall become effective immediately upon its adoption.
PASSED AND DULY ADOPTED by the Board of County Commissioners of Collier
County, Florida, this day of 2008
ATTEST: BOARD OF COUNTY COMMISSIONERS
COLLIER COUNTY, FLORIDA, AS
EX- OFFICIO THE GOVERNING BOARD
DWIGHT E. BROCK, Clerk OF THE COLLIER COUNTY WATER -
SEWER DISTRICT
Deputy Clerk
BY
TOM HENNING, Chairman
Approved as to form and legal sufficiency:
Jennifer A. B Assistant County Attorney