Agenda 09/09-10/2008 Item #16C 1
EXECUTIVE SUMMARY
,i\GENDA ITEM
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Recommendation to authorize submission of Amendment One (1) to the State Revolving Fund
Loan Agreement (DW1111 040) through the Florida Department of Environmental Protection
(FDEP) for the SCRWTP 20 MGD RO Wellfield Expansion, Project 708921
OBJECTIVE:That the Board of County Commissioners, as the Ex-Officio Governing Board of the
Collier County Water-Sewer District, authorize submission of Amendment One (1) to the State Revolving
Fund Loan Agreement (DW 1111 040) with the FDEP.
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CONSIDERA TIONS:
On March 132007, the Board of County Commissioners approved Resolution 2007-67 to authorize the
County to submit a State Revolving Fund (SRF) low interest rate construction ioan application and to
authorize the Loan Agreement with the FDEP, for the South County Regional Water Treatment Plant
(SCRWTP) 20-Million Gallons Per Day (MGD) Reverse Osmosis (RO) Wellfield Expansion, Project
708921. On August 9, 2007, the SRF Loan Agreement was signed by the Chairman of the Board of
County Commissioners, the Assistant County Attorney, and sealed by the Clerk of the Circuit Court on
behalf of the County and it was 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. Amendment One (1)
provides additional funding to the County. The total principal amount of the Loan has been increased by
$3,200,000, and the adjusted total disbursable amount of the Loan is $11 ,200,000, which includes the
$8,000,000 received in Fiscal Year 2007. The Semiannual Loan Repayment amount has been adjusted to
$377,817. The total Principal Amount, including Capitalized Interest, has been modified to $11,404,800. It
is noted in Amendment one (1) Item 8 Section 10.08 that FDEP disbursements are limited to $750,000
until the state’s allocation from EPA has been received. It is anticipated that the FDEP will receive
the allocation from the state before September 30, 2008 thus increasing the opportunity for the County to
receive the full $3,200,000. This SRF loan is one of the permanent financing mechanisms for this project.
To the extent the current expenditures exceed available SRF Funds other funding sources will be used.
Some of the other funding sources can include revenue bond proceeds, inter-fund transfers, commercial
paper, Florida Rural Water Association interim loan program, etc.
FISCAL IMPACT:SRF Loan Amendment One (1) adjusts the Loan Amount, excluding capitalized
interest, to $11,200,000. The semiannual loan repayment amount has been adjusted to $377,817 over a
20-year loan cycle at 2.79%.
GROWTH MANAGEMENT IMPACT:The adoption of Amendment One (1) has no impact on
growth management.
LEGAL CONSIDERATIONS:The proposed Amendment One (1) has been approved for legal
sufficiency by the Office of the County Attorney. Once executed by the Chairman of the Board,
Amendment One (1) will be forwarded to FDEP for final approval. - JAB
RECOMMENDATION:That the Board of County Commissioners, as the Ex-Officio Governing Board
of the Collier County Water-Sewer District, authorize submission of Amendment One (1) to the State
Revolving Fund Loan Agreement (DW 1111 040) with the FDEP.
Prepared By:
Department
Public Utilities
i:,GENDI' ITEM
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S~ n 8 2008
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Date
8/13/2008 3 :52:00 PM
Approved By:
Department
Public Utilities
Approval
Approved
Date
8/27/2008 11 :45 AM
Approved By:
Department
Approval
Date
County Attorney Approved
8/26/20082:31 PM
Approved By:
Department Approval Date
( - Public Utilities Approved 8/27/2008 11 :45 AM
Approved By:
Department Approval Date
Office of
Management Approved 8/27/20085:50 PM
and Budget
Approved By:
Department
Approval
Date
County
Manager's Office Approved
8/26/200810:12 AM
ATTACHMENTS:
Name:
Cl 708921 040 Amendment 1
Wellfield JAB sianed.odf
Description:
Type:
SRF Loan OW 1111040 Amendment, Project 708921
Backup Material
"GEND." iTEM
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I SFF 0;; 2008
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DIUNKING WATER STATE REVOLVIN(; FUND
AJVmNDMENT I TO LOAN AGREEIHENTDWIIII 040
COLLIER COUNTY
This amendment is exec,\lted by tbe STATE OF FLORIDA DEPARTMENT OF ENVIRONMENTAL
PROTECTION (DepaJ1mcnt) and COI.I.JER COUNTY, FLORJDA, (Project Sponsor) existing as" local
government agency under the laws of the State of Florida.
\VITNESSETII,
\VI lEREAS. the Depal1mcnt and the ProjC(:t Sp(JliSOr entered into a Drinking V./ aleI' State Revolving
Fund Loan Agreement, Number D\VII J 1040, Hll'fhorizing a LOLm mnollTitofS8,OOO,OOO, .excluding
Capitalized [merest; and
\VllERE/\S, thcProjccl Sponsor is clllilled \0 Hdr.liti.on~d Ilnancing 01'$3,200,000, excluding C'apitalized
Imcrcsl: and
WHEREAS, an interest rate Inust be established for the additional financing amotlnt awardcd in this
llrnCi1drnCnl~ and
\VI-lEREAS, a Loan Service Fee mus! be assessed Cor the flddirional financlllg~ and
\VHEREASl the Semiannu1l.I.L.oan PaYlnent ~lmOUl1t neeus revision 10 rdlcct adjustment in the Loan
amount and
\VHERE.-AS, the Project costs need adjustment to reflect rev.iscd estimates~ and
\VflEREAS, revised provisi.ons for audit and monitoring along with rcJnlcd changes to the Project
5chedule are needed.
NOW, T!lEREFORE, the partie, heret" agree a, rollnw",
I. Subsections 2,03( i ),(2)(d). alld (3 )(a)(i) of the Agreemenl are deleted and replaced as
IbIlows:
(J) The financial assistance authorized pursuant Lo this Loan Agreement consists oflhe
ro'flowing:
federal Resources, Induding Stone Match, AWilrded 10 lhe Rc-cipit.'nt PUl'su,mlw I-his Agreement Consi;i1 orlhe
Fol1owin~:
Federal Slale
Program Ft:tleral CFDA Funding Appropriation
Number Al!.cncv Numbr;.-r CFD,\ Title Amount Calc~orv
FS984522,070 GP,\ 66468 Cnpitaliz.lllion Gnlllts for Drinking $11,200,000 140129
Water Slate Revolving Fund
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(2) Audits
(d) The Project Sponsor may access information fe-ganting the Catalog of Fcder.al Domestic
Assistance (CFDA) via the internet at httiJ:I/VlWW.crda.1!ovf.
(3) Rep0l1 Submission,
(a) Copies of reporting packages Cor ~1LIdits conducted in accordance with Oi\'IB Cin.:'uJar A-133.
as rcvlscd~ and fl.:'quired by Sllbscctio1l1.03(2) of this Agrccl11t:nt shall be submitted, when re-quin.::d by
Section .3::0 (d), O~vlB Circular /\.]33, (IS n:viscd, by Dr 011 bL::half of lhe Project Sponsor directly to each
of the fDllowing:
(i) The Depar/menl at each of the following addresses:
Roben E.l-loJl11dcn., P.E.. Chief
Bureau of \Vnler Fncililic5 FlHlding
Florid~l DCpill1!l1l:Hl of En\ imnmclll,lj PrOleL~tion
2600 Blail' S{cme Rond, 1\t5 3505
Ti1l1aha$~i.:c, Floriua 32399-2400
Joe Aita, Audit Director
ornc~ of lhelnspector General
Floridn Department of Envii'Otlmcntal Protcclion
3900 Coml11onwcalth Boulevard. NIS Lj 1
Talltihasscc. Florida 32399-3123
2. Additional financing .in the amo-unf 01'$3.200,000, r,:'\cluding Capitalized Interest, is hereby
awarded to the Pmjcl.:l Sponsor.
3, An interest rate of 2.79 percent per annum is establis.hed for the additiolltll financing amount
J\varded in Ihis amendment; ho<,vcvcr, if this amendmcnt is not executed by the Project Sponsor ~Hld
returned to the Dcpnrtmcnl before October I, 2008, the interest rale Inn)' be adjusted,
4. The <:stimated princip~11i11l0ullt oCthe Loon is IH.:reby revised to 51 1,404,800, which cons.ists
of $il ,200.000 t\uthori7.cd for disbur.;;cment to the Project' Sponsor and $204,800 of Capitalized Interest.
This total consists of tIle following;
(a) Original Agreement of $8, J 75,6UU, including SS.OUO.OOIl authorized for dishu!'se"'cntlo the
Project Sponsor and $175,600 of Capitalized InteresL at an ink:rcst rate of 2.64 percent per annum: ,md
(b) Amendme-nl I of $3229,100, inclllding S3,200,ODO uulhorized for disburscmcllllo the
Project Sponsor and $29;200 of Capitalized Interest. at an interest rate 01'2.79 percent per annum,
5, An additional Loan Scrviceh.:c in the amounl orS6,1,000, fora total 01$224,000, is hereby
aS5\:sscd. The fee rcprCStmts two pcrcl.:nt of the Loan amounl excluding Capitahzcd Interest; that is, t\'...o
percent of $11 ,200,000. Estimated Loan Service Fce capitalized intere~1 lor the fee amount assessed to
d.te is $8,270.
6, The Semiannual Loan Payment amount \5 herehy revised and stwll be in the amount of
$377.817, Such payments .shall be received by lhe I)cpartmcllI on October 15,2009 and semiannually
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thereafter on April J 5 and October 15 of each year until all amOlln1s due IH':I"~under have been fuBy paid.
Until thi$ Agreement is further amcndcd~ each Semiannual Loan Pa)111cnt \vill be proportionally applied,
after deduction of the Loan Service Fee is- complete; toward repayment or-the amounts owed on each
incremental Loan amount at the c1ate such payment is due.
'Jl1e Semiannual Loan Payment amount is based on the total amount owed of $11.637,070, which
consists of the LO.lO principal pills the Loan Service Fcc with its capit~llizcd interest (if any).
7. The Project Sponsor and the Department ul.:knl1wlcdge tlWl the actual cost oCtile Project hilS
not been determined. Projecl cost adjus1mcnls l11<lY be made as tl result ofmuHlally agreed upon Project
changes. Capitalized 1l1H:rest will be recnlculntc-d based on <.lc:tual dates and amounts of Loan
disburscnwnts.. lftbe Project Sponsor receives other governmental flnanci,d assistance for this Pn~iL~ct,
the costs {'unded by such oth.;;r governmental assistam::c will not be trnanccd [)y this Loan. The
Department shall est<lbl.ish the nmd Project costs aftcr iiS final inspection orthl'.,;' Project fe-cords.
CluUlges in Project cosls llUlY also occur ElS a l'c:i'~llt of the Project SPOllSor'::; Pr(Jj~'ct .iludit or a Dcp.aruncnl
audit.
Funds disbl1rsed in uCl.:ordance with Section 4.08 of this Agreemc-nt sh.uJl be disbur~cd inl'hc
order in which they have been obligated without respect to lllldgcn.ll). line item estimates. All
disbul'sements shall be made from rhe original Loan amount ullTiI tl1m amount has been disbursed; the
interest rate establisbed for the original Loan amount shall apply to such disburs.cments for the purpose of
ddcnnining the associated Cnpilalizcd lnttJrcst and repaymcni amount. The interest rate csti.lbli~hed for
ao)-' additional increment ofLorln nltaHl:ing sh,IIl be lIsed 10 determine the C:npit;llized Inlen.:st (Jnel
repayment amount assDciated with the funds disbul's.ed from that increment.
The estimated Project COStS are revised as follows:
CATI;(;ORY
COST($)
AUTIIORIZED LOAN
AMOlJN'I($) TO
DA 1"1'
Administrative Allowance
Engineering Allowance
Construction find Demolition
COJ\liilgcncics
Technical Services AntI" Bid Opening
Other
SUBTOTAL (Total Dish"rsablc)
Capilnlized Interest
TOTAL (Loun Principal Amount)
316,52.J
3,006,978
47,953,000
4,795.300
4.796,01l0
o
60,373,302
204,800
61.078,102
l.int! item.\.
may vary
based on
actual
disbursemeJJ1s
i] ,201l,OOO
204,800
11,404.800
S. Section 10,08 SPECIAL CONDITION is delckd und replaced '15 ['ollows:
As of the date of this ugrccmcntJamcndmcllt.1 the Department has not received its fiscal year
2007-0.8 federal capitalization grant from ,r-;PA. This financial assist~lI1ce tlward has. been prepared in the
amount authorized at" the April 24,1008 priority lisl management hcarirlg. Disbursements are limited to
$750,000 until the slate's alJocation from EP A has been received. The Department wilJ notify you wbe.n
the balance of the award is available.
9. 1\11 mher lenns and provisions of the Loan Agreement shall remain in effect.
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This Amcndmel1l 1 to Luan Ag:r~l,;"mcnl D\V Illl 040 shall be c:\lx:utcd in three or more "~ouni(.:'1)arts. any
ofwlltch shall be regarded as all ~)rigiI1l11 and "II ofwhit:h constitule hut one nnd the Si:\I1lC in:itrunlcnt.
IN \VITNESS \VHEREOF~ the Department IU1S caused this iHnenn.mcnt to the L03Q Agreement to be
executed on its behalf by the Deputy Director and the Project Sponsor h[1:; ct\used this: umt:ndmelll tu be
executed on its bchalfhy its Autlwrizcd Representative and by its aflixed seaL 'nlceffccti\'c dale of this
amendment shall be as set 1\..')1111 belll\.\' by the Dt:Pllly Dirr.:t.:"tnr.
for
COLLIER COU1-iTY
Chairman. Bo:uJ of County Comlnissioncr$
Attesl
I allest that this C1mcndnlcnr complies with
SCC1.inl1 2 (12 fir the Agreement:md ;\::; to fc,nn
and corrCCl11l,'Ss.
COllnty Clerk
~rA-RQ~~Q
C . Count v Alia llev , _
-::n, tV N 11; t. i2- ^. r-..a:. Ue> L. ])I.. u
SEAL
for
STA TE OF FLOmnA
Df,PARTMEl\T OF ENVIRONMENTAL PROTECTION
Deputy Director
Division of "Vater R.'~sourcc r-...fanagcmcnl
Date
4