Agenda 01/12/2010 Item #16C 4
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Agenda Item No. 16C4
January 12, 2010
Page 1 of 11
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Recommendation to authorize submission of Amendment Two (2) to the State
Revolving Fund Loan Agreeme~~t' (L~\~::UI 030) th; Dug:l the Florida Department of
Environmental Protection (FDEP) fur the SCRWTP 12 MGD RO Plant Expansion,
Project 700971 and authorize neee~s!\ry budget amel'Jments.
OBJECTIVE: That the Board of County Commissioners, as the Ex-Officio Governing
Board of the Co::ier County Water-Sewer District, authorize submission of Amendment
Two (2) to the State Revolving Fund Loan Agreement (OW 1111 030) with the FDEP
and authorize necessary budget amendments.
CONSIDERATIONS: On March 13 2007, the Board of County Commissioners
approved Resolution 2007-66 to authorize the County to submit a State Revolving Fund
(SRF) low interest rate construction loan application and to authorize the Loan
Agreement with the FDEP, for the South County Regional Water Treatment Plant
(SCRWTP) I2-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, and sealed by the Clerk of the
Circuit Court on behalf of the County and it was suhmitted to the FDEP. The Loan
Agreement was fully executed on hehalf 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, Item # 16C2, Amendment 1 to the original loan agreement was
approved. This Amendment increased the disbursable amount of the loan to $11,200,000.
Amendment Two (2) provides additional funding to the County. The total principal
amount of the Loan has hecn increased by $5,839,056 and the adjusted total disbursable
amount of the Loan is $17,039,056, which includes the $8,000,000 received in Fiscal
Year 2007 and $3,200,000 reccived in Fiscal Year 2009. The Semiannual Loan
Repayment amount has been adjusted to $571,145. The total Principal Amount,
including Capitalized Interest, has heen modified to $17,232,029.
.
This financing plan and executive summary was reviewed and approved by the County
Finance Committee on December 17, 2009.
FISCAL IMPACT: SRF Loan Amendment Two (2) adjusts the Loan Amount,
excluding capitalized interest, to $17,039,056. The semiannual loan repayment amount
has been adjusted to $571,145 over a 20-year loan cycle at a blended intcrest rate of
2.69%. The SCRWTP 12 MGD RO Plant Expansion Project 700971 is in Water Impact
Fee Fund 411.
Budget amendments are needed in the Watcr Sewer Debt Service Fund 410 and in the
Water Impact Fee Fund 4] 1. Loan proceeds to be received in the FY 2010 for this SRF
Loan is $5,839,056 and this needs to he transferred to the Water Impact Fee Fund, into
Reserves. The annual debt service (principal and interest) payments have increased hy
$396,824 and this will be paid via a transfer by the Water Impact Fee Fund 411.
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Agenda Item No. 16C4
January 12, 2010
Page 2 of 11
Finally! th~ loan debt servic:.:: a;:~~,_~::;'Gt l\~S{X',":: r...:-:.::. l\.J be increased by $198,500 in the
Debt Service Fund 410 as required by the LO'''l Agreement.
LEt;AL CONSIJ)ERAnl)l'"'~:; TbiS Item 11:10 b':'en reviewed and approved by the
County Attorncy's Officc and is legally 5umcicnt. Note: Attachment A is not to be
executed by the Board Chair at this time. Attachment A is a form that will he completed
and submitted to the Board for fulure consideration in FY 2011.- JBW
GROWTH MANAGEMENT IMP ACT: The approval of this amendment has no
impact on growth management.
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 State Revolving Fund Loan Agreement (OW 11] I 030) with
the FDEP and authorize necessary hudget amcndments.
PREPARED BY: Bala M. Sridhar, Senior Management and Budget Analyst, Public
Utilities, Operations
Agenda Item No. 16C4
January 12, 2010
Page 3 of 11
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BOARD OF COUNTY COMMISSIONERS
Item Number:
Item Summary:
16C4
Recommendation to authorize submission of Amendment Two (2) to the State Revolving
Fund Loan Agreement (DW1111 030) through the Florida Department of Environmental
Protection (FDEP) for the SCRWTP 12 MGD RO Plant Expansion. Project 700971 and
authorize necessary budget amendments. (Fiscal Impact $5,839,056)
1/12/20109:00:00 AM
Meeting Date:
Prepared By
Bala Sridhar Management/Budget Analyst, Senior Date
Public Utilities Division Utilities Finance Operations 12/11/20099:24:53 AM
Approved By
Jennifer White Assistant County Attorney Date
County Attorney County Attorney 12/17/20098:49 AM
Approved By
Jeff Klatzkow County Attorney Date
12/28/20093:13 PM
Approved By
Thomas Wi des Director ~ Operations Support ~ pun Date
Public Utilities Division Utilities Finance Operations 12/29/20099:21 AM
Approved By
James W. Delany Date
County Attorney County Attorney 12/29/20099:23 AM
Approved By
OMS Coordinator Date
County Manager's Office Office of Management & Budget 12/30/200911:18 AM
Approved By
Susan Usher Management/Budget Analyst, Senior Date
Office of Management & Office of Management & Budget
Budget 1/5/20103:56 PM
Approved By
Mark Isackson Management/Budget Analyst, Senior Date
Office of Management &
Budget Office of Management & Budget 1/5/20105:00 PM
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Agenda Item No. 16C4
January 12, 2010
Page 4 of 11
DRINKING WATER STATE REVOLVING FUND
AMENDMENT 2 TO LOAN AGREEMENT DWl111 030
COLLIER COUNTY
This amendment is executed by the STATE OF FLORIDA DEPARTMENT OF
E:>NlRONMENTAL PROTECTION (Department) and COLLIER COt:NTY, FLORIDA, (Project
Sponsor) existing as a local government agency under the laws of the State of Florida.
vVITNESSETH:
WHEREAS, the Department and the Project Sponsor entered into a Drinking Water State
Revolving Fund Loan Agreement, Number DWllll 030, as amended, authorizing a Loan
amount of 511,200,000, excluding Capitalized Intcrest; and
WHEREAS, the Froject Sponsor is entitled to additional financing of 55,839,056, excluding
Capitalizcd Intcrcst; and
WHEREAS, an interest ratc must bc cstablished for the additional financing amount awarded
in this amendment; and
WHEREAS, a Loan Service Fee must be assessed for the additional financing; and
WHEREAS, the Semiannual Loan Payment amount needs revision to reflect adjustment in the
Loan amount; and
WHEREAS, the Project costs necd adjustment to reflect revised estimates; and
WHEREAS, revised provisions for audit and monitoring are needed.
NOW, THEREFORE, the parties hereto agree as follows:
1. Section 2.03 of tlle Agreement, as amended, is deleted and replaced as follows;
(I) The financial assistance authorized pursuant to this Loan Agreement consists of the
followin!;:
Federal Resources, Including State Match, Awarded tu the Recipient Pursuant to this Agreement Consist of J
the Fullowin .
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Federal I State
I
Program Federal CFDA ' Funding Appropriation I
Number !
Number Agencv CFDA Title Amount Category
I
j , Capitalization Grants for
I FS984522-0YO El'l\ 66468 517,039.056 140129
I Drinking \'Vater State Revolving
,
, I Fund
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Agenda Item No. 16C4
January 12, 2010
Page 5 of 11
(2) Audits.
(a) In the event that the Project Sponsor expends $500,000 or more in Federal awards in
its fiscal year, the Project Sponsor must have a single or program-specific audit conducted in
accordance with the provisions of OMB Circular A-133, as rcviscd. Subsection 2.03(1) of this
Agreement indicates that Federal funds are awarded through the Deparhnent by this
Agrecment. In determining the Federal awards cxpendcd in its fiscal year, the Project Sponsor
shall consider all sources of Federal awards, including Federal resources received from the
Deparhnent 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 Project Sponsor 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 Project Sponsor shall fulfill the requirements relative to auditee responsibilities as provided
in Subpart C of OMB Circular A-133, as revised.
(c) lf the Project Sponsor 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 Project Sponsor shall inform the Department of findings and recorrunendations
pertaining to the State Revolving Fund in audits conducted by the Project Sponsor in which the
$500,000 threshold has not been met. In the event that the Projecl Sponsor 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-Fcderal resources (Le., the cost of such an audit must be paid from Project Sponsor
resources obtained from other than Federal entities).
(d) The Project Sponsor may access information regarding the Catalog of Federal
Domestic Assistance (CFDA) via the internet at www.cfda.gov/index?cck=l&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
Projeci Sponsor directly to each of the following:
(i) The Deparhnent at the following address:
Joe Aita, Audit Director
Office of the Inspector General
Florida Department of Environmental Protection
3900 Commonwealth Boulevard, MS 41
Tallahassee, Florida 32399-3123
(il) The Federal Audit Clearinghouse designated in OMB Circular A-133, as revised
(the number of copies required by Sections .320 (d)(l) and (2), OMB CiTcular A-133,
as revised, should be submitted to the Federal Audit Clearinghouse), at the
following address:
,
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Agenda Item No. 16C4
January 12, 2010
Page 6 of 11
Federal Audit Clearinghouse
Burcau of the Census
1201 East J Oth Street
Jeffcrsonville, IN 47132
Submissions of the Single Audit reporting package for fiscal periods ending on or
after January 1, 2008, must be submitted using the Federal Clearinghouse's Internet
Data Entry System which can be found at h!:!p:/ /harvester.census.gov / fac/
(iii) Other Federal agcncies 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 Project Sponsor 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) 0/ this Agreement.
(c) Any reports, management letters, or other information required to be submitted to
the Department pursuant to this Agreement shall be submitted timely in accordance with OMB
Circular A-133, Florida Statutes, or Chapters 10.550 (local governmental entitles) or 10.650
(nonprofit and for-profit organizations), Rules of the Auditor General, as applicable.
(d) Project Sponsors, when submitting financial reporting packages to the Department
for audits done in accordance with OMB Circular A-133, or Chapters 10.550 (local
governmental entitics) 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 Project
Sponsor in correspondence accompanying the reporting package.
(4) Project-Specific Audit.
Within 12 months alter the amendment establishing final Project costs, the Project
Sponsor 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. Thc Project Sponsor shall
cause the auditor to notify the Department irrunediate]y if anything comes to the auditor's
attcntion during the cxamination of records that would constitute a default under the Loan
Agreement. "The auditlindings shall set aside or question any costs that are unallowable under
Chapter 62-503, F]orida Administrative Code. A final determination of wh~ther such costs are
allowed shall be made by the Department.
(5) Record Retention.
The Ihojcct Sponsor 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 Project Sponsor shall ensure that au dit 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.
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Agenda Item No. 16C4
January 12, 2010
Page 7 of 11
The Project Sponsor 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 Project Sponsor 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 Project Sponsor 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 Project Sponsor 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 Project Sponsor's fiscal year.
Attachment A should be submitted to the Department's Grants Development and J<.eview
Manager at 3900 Commonwealth Boulevard, Mail Station 93, Tallahassee, Florida 32399-3000.
The Grants Development and Review Manager is availahle 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 limitcd
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 Project Sponsor 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
Project Sponsor is appropriate, the Project Sponsor agrees to comply with any additional
instructions provided by the Department to the Project Sponsor n'garding such audit. The
Project Sponsor further agrees to comply and coopeTate with any inspcctions, reviews,
investigations, or audits decmed necessary by the Chief Financial Officer or Auditor General.
2. Section 8.02 of the Agreement is deleted and replaced as follows:
Books, records, reports, engineering documents, contract documents, and papers shall
be available to the authorized representatives of the Department and the U.s. Environmental
Protection Agency's Inspector General for inspection at any reasonable timc after the Project
Sponsor has received a disbursement and until five years after the date that U,e Project-specific
audit report, rcquired under Subsection 2.03(4), is issued.
3. Additional financing in the amount of 55,839,056, excluding Capitalized Interest, is
hereby awarded to the Project Sponsor.
4. An interest rate of 2.71. percent per annum is established for the additional financing
amount awarded in this amendment; however, if this amendment is not executed by the Project
Sponsor and returned to the Department before January 1, 2010, the interest rate may be
adjusted.
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Agenda Item No. 16C4
January 12, 2010
Page 8 of 11
5. The estimated principal amount of the Loan is hereby revised to $17,232,029, which
consists of $17,039,056 authorized for disbursement to the Project Sponsor and $192,973 of
Capitalized Interest. This total consists of the following:
(a) Original Agreement of 58,192,973, including $8,000,000 authorized for disbursement
to the Project Sponsor and $192,973 of Capita]ized Interest, at an interest rate of 2.64 percent per
annum; and
(b) Amendment] of 53,200,000 authorized for disbursement to the Project Sponsor at an
interest rate of 2.79 percent per annum; and
(c) Amendment 2 of $5,839,056 authorized for disbursement to the Project Sponsor at
an interest rate of 2.71 percent per annum
The estimated principal does not reflect payments received to date.
6. An additional Loan Scrvicc Fce in the amount of $] 16,781, for a total of $340,781, is
hereby assessed. The fee represents 1;\'0 percent of the Loan amount excluding Capitalized
Interest; that is, two percent of $17,039,056. Estimatcd Loan Service Fee capitalized interest for
the fee amount assessed to date is $4,212.
7. The Semiannual Loan Payment amount, adjusted to account for repayments
received to date, is hereby revised and shall be in thc amount of $571,145. Such payments shall
be received by the Department on February 15, 2010 and semiannually thereafter on August 15
and Fcbruary 15 of each year until all amounts due hereunder have been fully paid. Until this
Agreement is further amended, each Semiannual Loan Payment will be proportionally applied,
after ded uclion of the Loan Service Fee is complete, toward repayment of the amounts owed on
each incremental Loan amount at the date such payment is due.
8. The Project Sponsor and the Department acknowledge that the actual cost of the
Project has not been determined. Project cost adjustments may be made as a result of mutually
agreed upon Project changes. Capitalized Interest will be recalculated based on actual dates
and amounts of Loan disbursements. If the Project Sponsor receives other govemmental
financial assistance for this Project, the costs funded by such uther governmental assistance will
not be financcd by this Luan. The Department shall establish thc final Project costs after its
. final inspection of the Project records. Changes in Project costs may also occur as a result of the
Project Sponsor's Project audit or a Department audit.
Funds disbursed in accordance with Section 4.08 of this Agreement shall be disbursed in
. the order in which they haw been obligated without respect to budgetary line item estimates.
All disbursements shall be madc from the original Loan amount until that amount has been
disbursed; the interest rate established for the original Loan amount shall apply to such
disbursements for the purpose of determirung the associated Capitalized Interest and
repayment amount. The interest rale established for any additional increment of Loan
financing shall be used to determine the Capitalized Interest and repayment amount associated
with the funds disbursed from that increment.
REMAINDER OF PACE INTENTIO]\;ALL Y LEFT BLANK
,
The estimated Project costs are revised as follows:
CATEGORY
COST($)
Administratiw Allowance
Engineering Allowance
Construction and Demolition
Contingencies
Technical Services After Bid Opening
SUBTOTAL
Capitalized Interest
TOT A L (Loan Principal Amount)
163,834
1,638,342
26,005,428
1,300,271
3,656,000
32,763,875
192,973
32,956,848
Agenda Item No. 16C4
January 12, 2010
Page 9 of 11
AUTHORIZED
LOAN
AMOUNT($) TO
DATE
Line items
may vary
based on
actual
disbu rsemen ts
17,039,056
192,973
17,232,029
All other terms and provisions of the Loan Agreement shall remain in effect
REMAINDER OF PAGE INTENTlONALL Y LEFT BLANK
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Agenda Item No. 16C4
January 12, 2010
Page 10 of 11
This AmendmentZ to Loan Agreement DWll11 030 shall he 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
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Chairman, Board of County Corrunissioncrs
I attest that this amendment complies with
Section 2.02 of the Agreement.
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STATE OF FLORIDA
COUNTY OF COLLIER
Sworn to and subscribed before mc this day of __.",_..,..._...,.__..".2009, by
_. ,,..,,____ __.j who D is personally known to me / D provided the
following identification:
for
STATE OF FLORIDA
DEPARTMENT OF ENVIRONMENTAL PROTECfION
.
Depu ty Director
Division of Water Resource Management
Date
Attachment included as part of this Agreement:
Attachment A - ~ertification of AIPlicabilitv to Single Audit Act Reporting
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Agenda Item No. 16C4
January 12, 2010
Page 11 of 11
ATTACHMENT A
CERTIFICATION OF APPLICABII.ITY 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: S,
Please identiiy grants to be included in the Single Audit that are provided by the Department of
Environmental Protcction
CSFA#CFDA# DEF LOAN AGREEMENT NUMBER
CERTIFICA nON STATEMENT:
I hereby certify that the above information is correct:
Name
Date
Title
DEP Project Agreement No, DW] III 030, Attachment A, Page 1 of 1
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