Agenda 09/09-10/2008 Item #16C 4
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EXECUTIVE SUMMARY
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Recommendation to authorize submission of Amendment One (1) 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.
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 030) with the FDEP.
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CONSIDERATIONS:
On March 132007, 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) 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, and seaied 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
$372,685. The total Principal Amount, including Capitalized Interest, has been modified to $11,252,700. 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 state’s allocation 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 $372,685 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
RECOMMENDA TION: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 030) with the FDEP.
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Prepared By:
Department
Public Utilities
Date
8/13/2008 3:44:53 PM
Approved By:
Department
Public Utilities
Approval
Approved
Date
8/27/2008 11 :44 AM
Approved By:
Department
Approval
Date
County Attorney Approved
8/26/2008 10:40 AM
Approved By:
Department Approval Date
( Public Utilities Approved 8/27/2008 11 :44 AM
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Approved By:
Department Approval Date
Office of
Management Approved 8/27/20085:50 PM
and Budget
Approved By:
Department
Approval
Date
County Approved
Manager's Office
8/26/2008 10:08 AM
ATTACHMENTS:
Name:
Description:
Type:
El 700971 1 030 Amendrn.<lliLl
AO Plant sianed bv JAB.Ddf SRF Loan OW 1111030 Amendment, Project 700971
Backup Materia!
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DRINKING W A n:R STATIc REVOLVING FUND
AMENDMENT 1 TO LOAN AGREEMENT DWIll1 030
COLLIER COUNTY
This amendment is execUled by the STATE OF FLORIDA DEPARTMENT OF ENVIRONMENTAL
PROTECT10N (Department) and COLLIER COUNTY, FLORIDA, (Project Sponsor) existing as a local
government ngcncy under the laws urlhe Slate of Florida.
WITNESSETH:
WHEREAS, the Department and the Pr~iect Sponsor entercd into a Drinking Water Stale Revolving
Fund Loom Agrccment, Number DW 1111 030, authorizing a Loan amount of 58,000,000, excluding
Capitalized Interest; and
WHEREAS, the Project Sponsor is entitled to additionalIlnaneing of 53,200,000, excluding Capitaliz",-I
Interest: and
WHEREAS. an interest rate must be established for the additional finaneing amount awarded in this
amendment; and
WHEREAS, a Loan Scrvicc Fcc must be assessed for the additional financiug; and
\VHEREAS. the Semiannual Loan PaytnClll amount needs revision to reflect adjustment in. the Loan
amount; and
WHEREAS, the Project costs nced adjustment to reflect revised estimates; and
WHEREAS, revised provisions for audit and monitoring arc needed.
NOW. THEREFORE, the parties hereto agree as follows:
I. Subseetions 2,03(1), (2)(d), and (3)(a)(I) are deleted and replaced as follows:
(1) The Financial assistance authorized pursuant to this Loan Agreement consists or the
following:
Federal Resources, Including Stale Match, Awarded to the Recipient Pur~;umll to this Agreement Consist ofthe
Followinrl:
Federal State
Program Federal CFDA Funding Appropriation
Number A~ellcY Number CFDA Title Amount Calcuol'\'
FS984522-080 EPA 66.468 Capitalization Grants for Drinking $11.200,000 140129
Water St.ate Rcvol.."itlQ Fund
(2) Audits.
(d) The Project Sponsor m(lY llccess in formation regarding the Catalog of Federal Domestic
Assistance (CFDA) via the internet at hltp:llwww.crd(\~yJ.
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(3) Report Submission.
(a) Copies of reporting packages for alldits conducted in accordance with OMR Circular A-133)
as revised, and re'luired by Subsection 2.03(2) of this Agreement shall be submitted, when required by
Section .320 Cd). OMB Circular A-I 33, as rcvised, by or on behalf of!he Project Sponsor directly to each
of the following:
(i) The Department at each of the following addresses:
Roberl E. Holmden, P.E., Chief
Bureau of Willer Facilities Funding
Florida Department ofEnvironmentnl Prole-ction
2600 Blair Stone Road, MS 3505
Tallahassee, Florida 32399-2400
Joe Aila, Audit Director
Office of the Inspector General
Florida Dcpartmenl of Environmentall'rotcction
3900 Commonwealth Boulcvard, MS 41
Tallahassee, Florida 32399-3123
2. Additionallinancing in the amount of$3,200,OOO. excluding Capitalizcd lntercst, is hercby
awarded to the Project Spoasor.
3. An interest rate 01'2.79 percent per annum is eShlblished for the additionallinancing amount
awarded in Ihis amendment; however, if this amendment is not executed by the Projeet Sponsor and
returned to the Department before October 1.2008, the interest rate may be adjusted.
4. The eslimated principal amount of the Loan is hereby revised to $11,252,700, whieh consists
of $11 ,200,000 authorized lor disbllrsemenllO the Projcct Sponsor and $52.700 of Capitalized Intcrcst.
This tOlal eonsists ofthc following;:
(a) Original Agreement of $8,052,700, including $8,000,000 authorized for disbursement to the
Pmject Spl>l1S0r and $52,700 of Capitalized Interest, at an interest rJle of2.64 pcrcent per annum; and
(b) Amendment I of S3,200,OOO alllhorizcd for disbursement to Ihe Project Sponsor at all
interest rate of 2.79 percent per annum.
The estimmed principal docs not reflect payments reecived to dale.
5. An Ildditionul Loan Service Fce in the umounl 01'$64,000, for a totul of$224,000. is hereby
assessed, The fee represents two percent ofthe Loan omoul11 excluding Capitalized Illterest; that is, two
percent of $11 ,200,000, Estimated LOllll Service Fee capitalized interest lor the fee amount assessed to
date is $2.110,
6. The Semiannual Loan Payment amount is hereby revised and shall be in the amOllnt of
$372,685, Such payments slmll be received by the Deportment on Fetmmry 15,2009 and semiannually
therellfter on Augnst 15 and FebrulllY 15 of ellch year until all amounts due hereunder have been fully
paid. Until this Agreement is further amended, each Semiannual Loan Payment will be proportionally
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applied. aft-er deduction of the Loan Scrvic~ Fee is complete, toward rcpaymem of the ammHltS owed on
each incremental Loon amount lit the date such payment is due.
7. The Project Sponsor and the Deportment :lCknowlcdgc that the aetllal eost of the Projeel has
lIot been determined. Project cost adjustments may be made as a result of mutually ngrccd upon Project
ch,lIIgcs.. Capitalized lnteresl wfll be recalculated based on actual dates and amoun1s of Loan
disbursements. If the Project Sponsor receives other governmental rinnru::ial assistance for this Project,
the cOSls funded by such other governmental u.ssistancc wiH not be- financed by this. Loan. 'nl~
Department shall establish the Hnal Project costs: after its final inspection of the Project records.
Ch<lngcs in Project costs rnn)' also occur us a result of the Project Spoltsor's Project audit or it Department
audit.
Funds disburscd in accordancc with Scclion4.08 oflhi5 Agreement shall be dishuT>ed in thc
order in \\'hich they have been ohligutf..o.d without respect to budgetary line item estimates. An
disbursements shall be ma(h~ from ihc original Loan amount until that amount has been disburscd~ the
iuterest rate established for the original Loan amotlnt shull apply to stlch disbursements for the purpose of
dctennining the associated Capitalized Interest and repayment amount. The intcrestralc cstabli~hed for
any additional increment of t..o:m financing shall be usc-d to detennine the Capjta.li7~d Interest and
repayment amount associated with the fnnds disbursed from thnt increment.
The estinmted I'rojcet C(lsls arc revised as follows:
CATEGORY
COST($)
AUTHORIZED LOAN
AMOUNT($) TO
I)ATE
Administrative Allowance
Engineering Allc.)wtmcc
Construction and Demolition
Contingencies
Technical Services Aner Bid Opening
SUBTOTAL
Capitalized Jntcrcst
TOTAL (Loan I'rineipal Amount)
152,447
1,524,474
24,198,000
1,209,900
3,656,000
30.740.821
52.700
3t),793,521
Line items
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!laM:-d on
aClrwl
disbursements
11,200,000
52,700
II ,252.700
8. Section 10,08 SPECIAL CONDITION is de\cled and replaced as follows:
As of the dUll: ofthi!ol ngreemcnt/amcndmc-nt, the Department hilS not received jg fiscal vear
2007~()8 tederal capitali7,ation grant from E?A. This flm.ll1cial as.sistance award has been prc.pa~ed in the
~\lnounl (Illthorizcd .It the April 24, 2008 priority list numagcmclll hearing. Disbursements arc-limited to
$750,000 until the state's; allocation from EPA has been received, The Department \vill notify you \vhen
the bal:mce of the award is avail<~I)lc.
9. All other terms and provisions of the L.oan Agreement shaH remain in ciTL'Ct.
REMAINDER OF PAGE rNTENT10NALLY LEFT BLANK
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This Amendment 1 to Loan Agreement DW 1111 030 shall be executed in three or more counterparts, any
of which shtlil be regarded as an original and all of'\"hich constilutc but one and the same instrument.
IN WITNESS WHEREOF, the Department has caused this amendment 10 the LOlln Agreemenl to be
executed on its behalf by Ihe Deputy Director and the Project Sponsor has caused this mnendment to be
executed on its behalfby its AUlhorized Representlltive and by ils affixed seal. Thc effective date oflhis
amendment shall be liS set forth below by the Deputy Dirc'Clor.
for
COLLlER COUNTY
Chairman, Board of County Coni.missioners
Attes!
Illites! that this amcndmcnl complies with
Section 2.02 of the Agreement and as La form
and correctness.
County Clerk
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Q.4..d:: ,County A no. ey
SEAL
for
STATE OF FLORIDA
DEI' ARTMENT OF ENVIRONMENTAL PROTECfION
Deputy Director
Division of \Vatcr Resource !vlanagcmcnt
OllIe
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