HomeMy WebLinkAbout506-SRF· Department of
Environmental Protection
DEPARTMENT OF ENVIRONMENTAL P~TECTION
La~on Chiles ~IN TOWERS OFFICE BUILDING Virginia B. Wetbefell
Governor 2600 B~IR ST~E RD ~ 5 ~ ~ D~~ Secre.~
TAL~HASSEE FL 32399-2~
December ]0, 1997
Mr. Willira A. Simmons, Ci~ M~ager
ci~ of s~fo~a
Post Office Box 1788
S~ford, Florida 32772-1788
Re: CS120586150- S~ford
Trea~nt Facilities
(Master Pump Station Replacement)
CS120586170 - S~ford
Tr~a~en~ R~us~ ~d Outfall Facilities
(STP ~d Reuse Exp~sion, Wet Wea~er Dis~h~g~)
CS120586190 - S~ford
Recla~ed Water Reus~ Facilities
(Sit~ 10, Contact IV)
CS120586210- S~ford
Infiu~nt Tr~smission Facilities
(Westerly Interceptor)
De~ Mr. Simmons:
We have reviewed ~ ~nual ce~ifications reg~ding pledged r~v~nue collections, escrow accost
bal~c~s, lo~ repa~nt rescue accounts, and ~sur~ ~overage for your Smt~ Revolving F~d lo~s.
~e ~enifications ~ a~cept~d.
Sinc~r , ~
ding
D~/ji
co: Donna M. Wa~ - S~ford
"Protect, Conserve and Manage Florida's Environment and Natural Resources"
Printed on recycled paper.
C-5o
STATE REVOLVING FUND
AMENDMENT 1 TO LOAN AGREEMENT FOR PROJECT CS120586190
CITY OF SANFORD
This amendment is executed by the STATE OF FLORIDA DEPARTMENT OF ENVIRONMENTAL
PROTECTION (Department) and the CITY OF SANFORD, FLORIDA, existing as a local
government agency (Local Government) under the laws of the State of Florida.
WITNESSETH:
WHEREAS, the Department and the Local Government entered into a State Revolving
Fund Loan Agreement, Number CS120586190, authorizing the amount of $500,565.89,
including Capitalized Interest; and
W"HEREAS, the final Loan disbursement has been made to the Local Government and
the disbursement schedule needs revision to reflect actual disbursements; and
WHEREAS, the Loan principal and the Project costs may be adjusted pursuant to
the Loan Agreement and Chapter 17-503, Florida Administrative Code; and
WHEREAS, the Semiannual Loan Payment amount needs revision to reflect the
adjustment in the Loan amount; and
WHEREAS, the Project schedule needs revision to incorporate certain dates
established during the final construction inspection; and
WHEREAS, the Department and the Local Government agree that the term
"Depository" shall be re-defined to include the State Board of Administration's
Local Government Surplus Funds Trust Fund and that the Loan Agreement shall be
amended to further assure that the assets of accounts established for repayment
of the Loan are held in trust for such purpose.
NOW, THEREFORE, the parties hereto agree as follows:
1. The total amount of Loan proceeds disbursed to the Local Government was
$500,000.00 and the total amount of Capitalized Interest accrued and included in
the Loan principal was $166.44.
2. The Semiannual Loan Payment amount is hereby revised and shall be in
the amount of Fifteen Thousand Eight Hundred Sixty Two and seventeen One
One-hundredths Dollars ($15,862.17). Semiannual Loan Payments shall be received
by the Department on or before August 1, 1994 and semiannually thereafter on
February i and August 1 Of each year until all amounts due hereunder have been
fully paid.
3. Attachment C, Estimated Loan Disbursement Schedule, is hereby deleted
in its entirety and replaced with Attachment C, Revised, Loan Disbursements,
attached hereto and made a part hereof.
4. section 10.02, Project Costs, is hereby deleted in its entirety and
replaced with Attachment D, Project Costs, attached hereto and made a part
hereof.
5. Section 10.03, Project Schedule, is hereby deleted in its entirety and
replaced with Attachment E, Project Schedule, attached hereto and made a part
hereof.
6. The definition of "Depository" provided in Section 1.01 of the
Agreement is hereby amended such that "Depository" shall mean a bank or trust
company, having a combined capital and unimpaired surplus of not less than $50
million, authorized to transact commercial banking or savings and loan business
in the State of Florida and insured by the Federal Deposit Insurance
Corporation. "Depository" shall also mean the State Board Of Administration's
Local Government Surplus Funds Trust Fund administered pursuant to Chapter 218,
Part IV, of the Florida statutes.
7. Article III, Monthly Escrow and Loan Repayment Accounts, of the
Agreement is hereby deleted in its entirety and replaced with Attachment F,
Article III, Monthly Escrow and Loan Repayment Accounts, attached hereto and
made a part hereof.
All other terms and provisions of the Loan Agreement shall remain in effect.
This Agreement 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. The Agreement becomes effective upon execution.
IN WITNESS WHEREOF, the Department has caused this Agreement to be executed
on its behalf by the Secretary of the Department and the Local Government has
caused this Agreement to be executed on its behalf by its Authorized
Representative and by its affixed seal. The effective date of this Agreement is
Attachments C, D, E, a .
~" Secretary y
STATE OF FLORIDA ~
DEPARTMENT OF ENVIRONMENTAL PROTECTION
'~ity Manager
CITY OF SANFORD
Attest
SEAL
APPROVED AS TO FORM:
City Attorney
ATTACHMENT C, REVISED: LOAN DISBURSEMENTS
The Loan disbursements for the Project were as follows:
Date Amount
January 27, 1994 $ 16,587'
January 27, 1994 483,413
The total Loan amount disbursed was $500,000.00. Capitalized Interest in the
amount of $166.44 accrued on the amount disbursed.
*This amount was disbursed directly to the Department's Operating Trust Fund
in payment of the Loan Service Fee pursuant to Chapter 17-503, Florida
Administrative code.
4
ATTACHMENT D: PROJECT COSTS
The Local Government and the Department acknowledge that changes in Project
costs may occur as a result of the Local Government's Project audit or a
Department audit pursuant to Chapter 17-503 of the Florida Administrative
code. Unless this Agreement is amended subsequent to an audit, the following
Project costs shall be final.
(1} Administrative Allowance $ 12,000.00
(2) Allowance for Preliminary Engineering $ 104,504.00
(3) Refinancing
construction and Demolition $ 357,430.00
Technical Services
During construction (contractual) $ -0-
(4) Equipment and Materials $ -0-
(5) Land $ -0-
(6) Contingencies $ -0-
(7) Loan Repayment Reserve $ 9,479.00
(8) Start-up Services $ -0-
(9) Loan Service Fee $ 16,587.00
(10) capitalized Interest $ 166.44
TOTAL COST $ 500,166.44
N~e~ACHMEN~ E: PROJECT SCHEDULE
The Local Government agrees by execution hereof:
(1) The date on which the Department conducted the final construction
inspection of the Project was February 2, 1994. Construction costs incurred
after this date shall not be eligible for Loan funding. Certain
construction-related costs may be eligible if incurred by the construction
cost cut-off date identified below.
(2) The construction cost cut-off date established for the Project was
May 2, 1994. Eligible costs incurred after this date shall be limited to
costs associated with the Project performance period.
(3) The initiation ofoperation date for this project was February 2, 1994.
The date for certification Of Project performance is February 2, 1995.
(4) The date by which the first Semiannual Loan Payment becomes due is
August 1, 1994. Semiannual Loan Payments shall be received by the Department
semiannually thereafter on or before February 1 and August i of each year
until the entire amount due hereunder has been paid.
(5) The close-out audit required under Subsection 2.01(15) of this Agreement
shall be submitted within 12 months after the effective date of this
amendment.
ATTACHMENT F
ARTICLE III- MO~=nhY ESCROW ANDLOANI~EpAYMENTACCOUNTS
3.01. MONTHLY ESCROW ACCOUNT. The Local Government shall establish a
monthly escrow account with a Depository. Beginning on the date six months
before the date of the first Semiannual Loan Payment specified in this
Agreement, the Local Government shall make a monthly deposit from the Pledged
Revenues to the monthly escrow account.
In any month in which the amount on deposit in the monthly escrow account
does not equal or exceed five-sixths (5/6) of the Semiannual Loan Payment, the
Local Government's chief financial officer shall promptly notify the
Department in writing if the Local Government fails to make a Monthly Loan
Deposit which equals or exceeds one-sixth (1/6) of the Semiannual Loan
Payment. In the event there is an insufficient amount in the monthly escrow
account thirty (30) days prior to each Semiannual Loan Payment, the Local
Government agrees to budget, by amendment if necessary, payment to the
Department from other legally available funds all sums becoming due before the
same become delinquent. This requirement shall not be construed to give
superiority to the Department's claim on any Revenues over prior claims of
general creditors of the Local Government, nor shall it be construed to give
the Department the power to require the Local Government to levy and collect
any Revenues other than Pledged Revenues.
3.02. INVESTMENT OF ESCROW MONEYS. Upon the direction of the Local
Government, a Depository-shall invest escrowed moneys pursuant to the laws of
the State of Florida. The maturity or redemption date of investments shall be
not later than the date upon which such moneys may be needed to make
Semiannual Loan Payments.
3.03. ESCROW WITHDRAWALS. The withdrawal of moneys from the monthly
escrow account shall be for the purpose of making the Semiannual Loan Payment.
3.04. LOAN REPAYMENT RESERVE ACCOUNT. A Loan Repayment Reserve Account
shall be established with a Depository in the amount of fifteen (15) percent
of the debt service for one year. The reserve shall be fully funded six
months before the date of the first Semiannual Loan Payment specified in this
Agreement.
3.05. LOAN REPAYMENT RESERVE WITHDRAWALS. The Loan Repayment Reserve
Account shall be used by the Local Government to cure a temporary deficiency
in any Semiannual Loan Payment. The Local Government's chief financial
officer shall promptly notify the Department upon any withdrawai from the
Account. Any unused portion of the Loan Repayment Reserve Account shall be
used to reduce the final Semiannual Loan Payment.
3.06. RESTORATION OF LOAN REPAYMENT RESERVE ACCOUNT. A default causing
the Local Government to use the Loan Repayment Reserve Account or the use of
the Account to prevent default shall result in the Local Government being
responsible for making special payments to restore its Loan Repayment Reserve
Account. Special restoration payments shall be made from the first moneys
legally available to the Local Government for such purpose.
3.07. INVESTMENT OF LOAN REPAYMENT RESERVE MONEYS. Upon the direction of
the Local Government, a Depository shall invest reserved moneys pursuant to
the laws of the State of Florida. The maturity or redemption date of
investments shall be not later than the date set for Semiannual Loan Payments.
3.08. ASSETS HELD IN TRUST. The assets of each of the accounts created
under this Loan Agreement shall be held in trust for the purposes provided
herein and used only for the purposes and in the manner prescribed in this
Agreement; and, pending such use, said assets shall be subject to a lien and
charge in favor of the Department.
8
STENSTROM. NiCIi~TOSH./(IiJ3~N, COI~BERT, EG~ ~ S~ONS, P.A.
AFORN~YS AND COUNSELLORS AT LAW
W, LUAH ~ .~,SC~.~. u..
JUL 1 Z1994
July 8, 1994
City OF SAN
William A. SiEons, City Manager
CITY OF SANFORD, FLORIDA
300 North Park Avenue
Sanford, Florida 32771
Re: SRF Loan ~endments
Dear Mr. Si~ons:
Pursuant to your request, we have reviewed the proposed amendments
to the State Revolving Fund Loans. These documents are in an
acceptable legal form, and if executed by the parties, are
enforceable in accordance with their terms.
If you should have any further questions, please feel free to
contact me.
Sincerely,
.STENSTROM, MClNTOSH, JULIAN,
COLBERT, WHIGHAM & SIMMONS, P.A.
William L. Colbert
/lw
STATE OF FLORIDA
DEPARTMENT OF ENVIRONMENTAL PROTECTION
CITY OF SANFORD
WASTEWATER TREATMENT
REVOLVING LOAN F01qD AGREEMENT
LO~I'I~BER C8120586190
Florida Department of Environmental Protection
Bureau of Local Government Wastewater Financial Assistance
Twin Towers Office Building
2600 Blair Stone Road
Tallahassee, Florida 32399-2400
WASTEWATER TREATMENT
REVOLVING LOAN FUND AGREEMENT
THIS AGREEMENT is executed by the STATE OF FLORIDA DEPARTMENT OF
ENVIRONMENTAL PROTECTION (Department) and the CITY OF SANFORD, FLORIDA, existing
as a local government agency (Local Government) under the laws of the State of
Florida.
WITNESSETH:
WHEREAS, pursuant to Section 403.1835, Florida Statutes, the Department is
authorized to make loans to local government agencies to finance or refinance
the construction of wastewater pollution control facilities, the planning and
design of which have been reviewed by the Department; and
WHEREAS, the Local Government has made application for the financing of the
Project, and the Department has determined that such Project meets all
requirements for a loan;
NOW, THEREFORE, in consideration of the Department loaning money to the
Local Government, in the principal amount and the covenants hereinafter set
forth, it is agreed as follows:
ARTI~v.m I- DEFINXTIONS
1.01. WORDS AND TERMS. Words and terms used herein shall have the meanings
set forth below:
(1) "Additional completion Loan" shall mean a loan subsequent to the Loan
authorized by this Agreement, which may be made to the Local Government by the
Department for the purpose of furnishing additional funds to complete the
Project. The interest rate for any Additional completion Loan shall be
established pursuant to Chapter 17-503 of the Florida Administrative code.
(2) "Agreement" Or "Loan Agreement" shall mean this agreement.
(3) "Authorized Representative" shall mean the official of the Local
Government authorized by ordinance or resolution to sign documents associated
with the Loan.
(4) "Capital Contribution" shall mean moneys from such sources as impact
fees, assessments, and contributions in-aid-to-construction.
(5) "Capitalized Interest" shall mean interest accruing on a loan before
repayment begins. Capitalized interest shall be included in the principal of
the Loan. Capitalized interest is not disbursed to the Local Government, but it
shall be amortized via periodic loan repayments to the Department as if it were
actually disbursed. capitalized interest shall be computed at the interest rate
set for the Loan. It accrues and is compounded annually from the time when
disbursements are made until six months before the first Semiannual Loan Payment
is due.
(6) "Cost of Construction" shall mean the costs for furnishing and
installing, equipping, constructing, altering, remodeling, or improving
facilities. It shall also mean the cost of interim financing, refinancing, or
payment of other debt of the Local Government, the proceeds of which were used
for the foregoing purposes.
(7) "Depository" shall mean a bank or trust company, having a combined
capital and unimpaired surplus of not less than $50 million, authorized to
transact commercial banking or savings and loan business in the State of Florida
and insured by the Federal Deposit Insurance Corporation.
(8) "Loan" shall mean the amount Of money to be loaned pursuant to this
Agreement.
{9) "Loan Repayment Reserve Account" shall mean the account into which will
be deposited the amount set aside to pay unexpected deficiencies, if any, in the
Semiannual Loan Payment.
(10) "Loan Service Fee" shall mean an origination fee to be paid to the
Department by the Local Government. It shall be based on the Loan amount,
excluding the Capitalized Interest, Loan Repayment Reserve, and Loan Service Fee
amounts. The fee may be wrapped into the Loan and amortized. The fee will be
used by the Department to pay for program administration.
(11) "Monthly Loan Deposit" shall mean the monthly deposit to be made by
the Local Government to an escrow account.
(12) "Operation and Maintenance Expense" shall mean the costs of operating
and maintaining the Water and Sewer Systems determined pursuant to generally
accepted accounting principles, exclusive of interest on any debt payable from
Revenues$ depreciation and any other items not requiring the expenditure of
cash; any amounts expended for capital replacements, repairs and maintenance not
recurring annually or reserves therefor; and reserves for administration,
operation and maintenance occurring in the normal course of business.
(13) "Pledged Revenues" shall mean the specific Revenues pledged as
security for repayment of the Loan and shall be the Revenues derived yearly from
the Local Government's Subordinated Debt Service Fund funded by the operation of
the Water and Sewer Systems after payment of the Operation and Maintenance
Expense and the satisfaction of all yearly payment obligations on account of the
debt obligations identified on Attachment A to this Agreement. Although such
revenues or taxes are not pledged to repayment of the Loan, for the purposes of
Sections 5.01 and 7.02 only, the term Pledged Revenues shall include any
revenues or taxes of the Local Government pledged to the debt obligations or
proposed debt obligations referenced in Sections 5.01 and 7.02.
(14) "Project" shall mean facilities, consisting of the components needed
to meet present and estimated future requirements, as described in Attachment B
to this Agreement.
(15) "Revenues" shall mean all income or earnings received by the Local
Government from the ownership or operation of its Water and Sewer Systems,
including investment income, all as calculated in accordance with generally
2
accepted accounting principles. Revenues shall not include proceeds from the
sale or other disposition of any part of the Water or Sewer Systems,
condemnation awards or proceeds of insurance, except use and occupancy or
business interruption insurance, received with respect to the Water or Sewer
Systems.
(16) "Semiannual Loan Payment" shall mean the payment due from the Local
Government to the Department at six-month intervals, and it is comprised of
principal and interest.
(17) "Sewer System" shall mean all facilities owned by the Local Government
for collection, transmission, treatmeDt and reuse of wastewater and its
residuals.
(18) "Subordinated Debt Service Fund" shall mean the fund created pursuant
to Local Governmental Resolution NO. 1423, adopted October 7, 1985, as amended
and supplemented, in which Pledged Revenues shall be deposited. The Local
Goverement's Resolution No. 1671, adopted October 25, 1993, pledges that fund
for repayment of this Loan.
(19) "Water System" shall mean all facilities owned by the Local Government
for supplying and distributing water for residential, commercial, industrial,
and governmental use.
1.02. CORRELATIVE WORDS. Words of the masculine gender shall be understood
to include correlative words of the feminine and neuter genders. Unless the
context shall otherwise indicate, the singular shall include the plural and the
word "person" shall include corporations and associations, including public
bodies, as well as natural persons. Capitalized words not otherwise defined
herein shall be defined as set forth in the Florida Administrative Code, chapter
17-503.
ARTICLE II- WilES, REPRESENTATXONS AND COVENANTS
2.01. WARRANTIES, REPRESENTATIONS AND COVENANTS. The Local Government
warrants, represents and covenants that:
(1) The Local Government has full power and authority to enter into this
Agreement and to comply with the provisions hereof.
(2) The Local Government is not the subject of bankruptcy, insolvency, or
reorganization proceedings and is not in default of, or otherwise subject to,
any agreement or any law, administrative regulation, judgment, decree, note,
resolution, charter or ordinance which would currently restrain or enjoin it
from entering into, or complying with, this Agreement.
(3) There is no material action, suit, proceeding, inquiry or
investigation, at law or in equity, before any court or public body, pending or,
to the best of the Local Government's knowledge, threatened, which seeks to
restrain or enjoin the Local Government from entering into or complying with
this Agreement.
(4) The Local Government shall not issue bonds, notes or other evidences of
indebtedness in any manner secured by Pledged Revenues without prior written
authorization from the Department.
(5) The proceeds of any indebtedness, which will be refunded or refinanced
by this loan, were used for the construction of this Project.
(6) All permits, real property interests, and approvals required as of the
date of this Agreement have been obtained for construction and use of the
Project. The Local Government knows of no reason why any future required
permits or approvals are not obtainable.
(7) The Local Government shall undertake the Project on its own
responsibility, to the extent permitted by law.
(8) The Local Government shall release and hold harmless the State, its
officers, members, and employees from any claim arising in connection with the
Local Government's actions or omissions in its planning, design, construction or
operation of the Project.
(9) All Local Government representations to the Department, pursuant to the
Loan application and Agreement, are true and accurate. The Local Government
shall comply with all applicable State and Federal laws, rules, and regulations
which are identified in the Loan Application or Agreement. To the extent that
any assurance, representation, or covenant requires a future action, the Local
Government shall take such action as is necessary for compliance.
(10) The financial information delivered by the Local Government to the
Department is current and correct. The Local Government shall provide the
Department with additional financial information via audits required by Chapter
17-503 of the Florida Administrative code, notification of changing conditions
adversely affecting the Local Government's ability to repay this Loan, or upon
request of the Department.
(11) The Local Government shall maintain records using Generally Accepted
Governmental Accounting Standards established by the American Institute of
Certified Public Accountants. As part of its bookkeeping system, the Local
Government shall keep accounts of the Water and Sewer Systems separate from all
other accounts and it shall keep accurate records of all Revenues, Pledged
Revenues, Capital Contributions, Loan disbursement receipts, expenses, and
expenditures relating to the Water and Sewer Systems.
(12) In the event the anticipated Pledged Revenues are shown by the Local
Government's annual budget to be insufficient to make the Semiannual Loan
Payments for such Fiscal Year when due, the Local Government shall include in
such budget other legally available funds which will be sufficient, together
with the Pledged Revenues, to make the Semiannual Loan Payments. Such other
legally available funds shall be budgeted in the regular annual governmental
budget and designated for the purpose provided by this Subsection, and the Local
Government shall collect such funds for application as provided herein. The
Local Government shall notify the Department immediately in writing of any such
budgeting of other legally available funds. Nothing in this covenant shall be
construed as (a) creating a pledge, lien, or charge upon any such other legally
available funds, nor (b} reguiring the Local Government to levy or appropriate
4
ad valorem tax revenues, nor (c) preventing the Local Government from pledging
to the payment of any bonds or other obligations all or any part of such other
legally available funds, nor (d) expending such funds for other governmental
purposes, prior to such application.
(13) Beginning with the Fiscal Year during which the Loan is executed and
for each year until the Loan is retired, the Local Government shall submit
annual audit reports to the Department. Reports shall be submitted within one
year after the end of each audited Fiscal Year. Audits shall be conducted in
accordance with "Government Auditing Standards" (1988) issued by the Comptroller
General of the United States.
Beginning with the Fiscal Year during which the Loan is made and continuing
through the Fiscal Year during which the final Loan disbursement to the Local
Government is received, audits shall be conducted under the Office of Management
and Budget Circular A-128, "Audits Of State and Local Governments" (1985), which
provides policies, procedures, and guidelines for the Single Audit Act of 1984.
The Loan shall be treated as a major Federal assistance program regardless of
the disbursed amount received during the Fiscal Year being audited.
Beginning with the first Fiscal Year after the final loan disbursement to
the Local Government is received and ending with the Fiscal Year during which
the Loan is retired, financial audits shall be conducted as required under
Section 11.45 of the Florida Statutes.
(14) Beginning with the first Fiscal Year during which Monthly Loan
Deposits are required and continuing through the Fiscal Year during which the
Loan is retired, the Local Government shall cause its auditor to comment on its
compliance with the Loan Agreement covenants and on its ability to repay the
Loan. The Department shall be notified immediately if anything comes to the
auditor's attention during the annual examination of the Local Government's
records that would constitute a default under the Loan Agreement or adversely
affect the Local Government's ability to repay the Loan; or the audit report
shall include a statement to the effect that nothing came to the auditor's
attention that would constitute a default under the Loan Agreement or adversely
affect the Local Government's ability to repay the Loan.
(15) Within 12 months of Project close-out, the Local Government shall
submit to the Department a separate audit, by an independent certified public
accountant, of the Loan revenues and expenditures. The audit shall be conducted
in accordance with "Government Auditing Standards" (1988) issued by the
Comptroller General of the United States. The audit shall address whether the
Local Government complied with requirements set forth in the Loan Agreement.
The audit findings shall set aside or question any costs that are unallowable
under Rule 17-503, Florida Administrative code. A final determination of the
allowability of such costs shall be made by the Department.
(16) Until the final Loan repayment is made, the Local Government's
Authorized Representative or its chief financial officer shall submit a
certification no later than November i of each year that: (a) Pledged Revenue
collections satisfy, on a pro rata basis, the rate coverage requirement; (b) the
Monthly Escrow Account contains the funds required; (c) the Loan Repayment
Reserve Account contains the funds required; and (d) insurance, including that
issued through the National Flood Insuranse Program authorized under 42 U.S.C.
secs. 4001-4128 when applicable, in effect for the facilities generating the
Pledged Revenues, adequately covers the customary risks to the extent that such
insurance is available.
5
secs. 4001-4128 when applicable, in effect for the facilities generating the
Pledged Revenues, adequately covers the customary risks to the extent that such
insurance is available.
(17) Pursuant to Section 216.349 of the Florida Statutes, the Local
Government shall not use the Loan proceeds for the purpose of lobbying the
Florida Legislature, the Judicial Branch, or a State agency.
(18) The Local Government agrees to construct the Project in accordance
with the Project schedule. Delays incident to strikes, riots, acts of God, and
other events beyond the reasonable control of the Local Government are excepted.
If for any reason construction is not completed by the specified completion
date, there shall be no resulting diminutions or delay in the Semiannual Loan
Payment or the Monthly Loan Deposit or funding of the Loan Repayment Reserve
Account.
(19) The Local Government covenants that this Agreement is entered into for
the purpose of constructing, refunding, or refinancing the Project which will in
all events serve a public purpose. The Local Government covenants that it will,
under all conditions, complete and operate the Project to fulfill the public
need.
2.02. CONDITIONS PRECEDENT. As conditions precedent to this Agreement, the
Local Government shall deliver the following to the Department:
(1) A copy of all resolutions and ordinances authorizing this Agreement and
establishing the Local Government's legal right and authority to undertake the
Project.
(2} The opinion of counsel to the Local Government that (a) this Agreement
has been duly authorized and executed and shall constitute a valid and legal
obligation in accordance with its terms upon execution by both parties~ (b) the
Agreement specifies the Revenues pledged for repayment of the Loan~ and (c) the
pledge is valid, perfected and enforceable.
ARTICLE Ill- MONTHLY ESCROW ANDLO~NREPAYMENTACCOUNTS
3.01. MONTHLY ~SCROW ACCOUNT. The Local Government shall establish a
monthly escrow account with a Depository. Beginning on the date six months
before the date of the first Semiannual Loan Payment specified in this
Agreement, the Local Government shall make a monthly deposit from the Pledged
Revenues to the monthly escrow account.
In any month in which the amount on deposit in the monthly escrow account
does not equal or exceed five-sixths (5/6) of the Semiannual Loan Payment, the
Depository shall be required to promptly notify the Department in writing if the
Local Government fails to make a Monthly Loan Deposit which equals or exceeds
one-sixth (1/6) of the Semiannual Loan Payment. In the event there is an
insufficient amount in the monthly escrow account thirty (30) days prior to each
Semiannual Loan Payment, the Local Government agrees to budget, by amendment if
necessary, payment to the Department from other legally available funds all sums
becoming due before the same become delinquent. This requirement shall not be
construed to give superiority to the Department's claim on any Revenues over
prior claims Of general creditors of the Local Government, nor shall it be
construed to give the Department the power to require the Local Government to
levy and collect any Revenues other than Pledged Revenues.
3.02. INVESTMENT OF ESCROW MONEYS. Upon the direction of the Local
Government, a Depository shall invest escrowed moneys pursuant to the laws of
the State of Florida. The maturity or redemption date of investments shall be
not later than the date upon which such moneys may be needed to make Semiannual
Loan Payments.
3.03. ESCROW WITHDRAWALS. The withdrawal of moneys from the monthly escrow
account shall be for the purpose of making the Semiannual Loan Payment.
3.04. LOAN REPAYMENT RESERVE ACCOUNT. A Loan Repayment Reserve Account
shall be established with a Depository in the amount of 0.02 times the Loan
amount excluding the Capitalized Interest, Loan Repayment Reserve, and Loan
Service Fee. The reserve shall be fully funded six months before the date of
the first Semiannual Loan Payment specified in this Agreement.
3.05. LOAN REPAYMENT RESERVE WITHDRAWALS. The Loan Repayment Reserve
Account shall be used by the Local Government to cure a temporary deficiency in
any Semiannual Loan Payment. The Depository shall be required to promptly
notify the Department upon any withdrawal from the Account. Any unused portion
of the Loan Repayment Reserve Account shall be used to reduce the final
Semiannual Loan Payment.
3.06. RESTORATION OF LOAN REPAYMENT RESERVE ACCOUNT. A default causing the
Local Government to use the Loan Repayment Reserve Account or the use of the
Account to prevent default shall result in the Local Government being
responsible for making special payments to restore its Loan Repayment Reserve
Account. Special restoration payments shall be made from the first moneys
legally available to the Local Government for such purpose.
3.07. INVESTRENT OF LOAN REPAYMENT RESERVE MONEYS. Upon the direction of
the Local Government, a Depository shall invest reserved moneys pursuant to the
laws of the State of Florida. The maturity or redemption date of investments
shall be not later than the date set for Semiannual Loan Payments.
ARTICLE IV- PROJECT INFORMATION
4.01. PROJECT CHANGES. Project changes prior to bid opening shall be made
by addendum to plans and specifications. Changes after bid opening shall be
made by change order. The Local Government shall submit all addenda and all
change orders to the Department. Any change order which affects the Project
performance standards or which increases the contract amount by more than one
hundred thousand dollars ($100,000) or which alters the Project purpose requires
written approval by the Department.
4.02. TITLE TO PROJECT SITE. The Local Government shall have an interest
in real property sufficient for the construction and location of the Project
free and clear of liens and encumbrances which would impair the usefulness of
such sites for the intended use.
4.03. PERMITS AND APPROVALS. The Local Government shall have obtained,
prior to the Department's authorization to award construction contracts, all
permits and approvals required for the construction of the Project or portion of
the Project funded under this Agreement. The Local Government shall obtain
operation permits, if applicable, when construction is complete.
4.04. ENGINEERING SERVICES. A professional engineer, registered in the
State Of Florida, shall be employed by, Or under contract with, the Local
Government to oversee construction.
4.05. PROHIBITION AGAINST ENCUMBRANCES. The Local Government is prohibited
from selling, leasing or disposing of any part of the Water or Sewer System
which would reduce operational integrity, or Revenues, so long as this Agreement
is in effect unless the written consent of the Department is first secured.
4.06. COMPLETION MONEYS. In addition to the proceeds of this Loan, the
Local Government covenants that it has obtained, or will obtain, sufficient
moneys from other sources to complete construction and place the Project in
operation on, or prior to, the date specified in Article X. Failure of the
Department to approve an Additional Completion Loan shall not constitute a
waiver of the Local Government's covenants to complete and place the Project in
operation.
4.07. SURPLUS LOAN FUNDS. After Project performance certification by the
Local Government, the Department will establish the final Project costs to be
financed by the Loan. The Loan service fee may be adjusted and the balance of
Loan funds remaining will be eliminated. The principal amount of the Loan will
be adjusted by the Department. This adjustment will reduce, on a pro rata
basis, the amount of the remaining Semiannual Loan Payments.
4.08. LOAN DISBURSEMENTS. Disbursements shall be made only upon the issue
of warrants signed by the State comptroller and only when the requests for such
warrants are accompanied by a Department certification that such withdrawals are
proper expenditures. The disbursement of moneys may be made by electronic means
or by means of a magnetic tape or other transfer medium. Disbursements shall be
made directly to the Local Government for design and administration allowances[
reimbursement of the incurred Cost of Construction and related services~
establishing a Loan Repayment Reserve~ and Project performance certification
services. The disbursement of the Loan service fee, when included in the Loan
principal, will be made directly to the Department's Operating Trust Fund in the
increments and at the times set forth in Rule 17-503.400. Disbursements to the
Local Government shall be made, generally no more frequently than monthly, upon
receipt of the following:
(1) A written request signed by the Authorized Representative. Such
requests must be accompanied by sufficiently itemized summaries of the
materials, labor, or services to identify the nature of the work performed; the
cost or charges for such works and the person providing the service or
performing the work.
(2} A certification signed by the Authorized Representative as to the
current estimated costs of the Projects that the materials, labor, or services
represented by the invoice have been satisfactorily purchased, performed, or
8
received and applied to the Project~ that all funds received to date have been
applied toward completing the Project~ and that under the terms and provisions
of the contracts, the Local Government is required to make such payments.
(3) A certification by the engineer responsible for overseeing construction
stating that equipment, materials, labor and services represented by the
construction invoices have been satisfactorily purchased, or received, and
applied to the Project in accordance with construction contract documents;
stating that payment is in accordance with construction contract provisione~
stating that construction, up to the point of the requisition, is in compliance
with the contract documents; and identifying all additions or deletions to the
Project which have altered the Project's performance standards, scope, or
purpose since the issue of the Department construction permit.
(4) Such other certificates or documents by engineers, attorneys,
accountants, contractors, or suppliers as may reasonably be required by the
Department.
ARTICLE V- RATES ANDUSE OF 'sna~WA'.L'ERAND SEWER SYSTEMS
5.01. RATE COVERAGE. The Local Government shall maintain rates and charges
for the services furnished by the Water and Sewer Systems which will be
sufficient to provide, in each Fiscal Year, Pledged Revenues equal to or
exceeding 1.15 times the sum of the Semiannual Loan Payments due in such fiscal
year and all debt service payments due on the debt obligations identified in
Attachment A attached hereto.
5.02. NO FREE SERVICE. The Local Government shall not permit connections
to, or furnish any services afforded by, the Water or Sewer System without
making a charge therefor based on the Local Government's uniform schedule of
rateel fees, and charges.
5.03. MANDATORY CONNECTIONS. The Local Government shall adopt, as
necessary, and enforce requirements, consistent with applicable laws, for the
owner, tenant or occupant of each building located on a lot or parcel of land
which is served, or may reasonably be served, by the Water and Sewer Systems to
connect such building to the Water and Sewer Systems.
B.04. NO COMPETING SERVICE. The Local Government shall not allow any
person to provide any services which would compete with the Water or Sewer
System, as such systems exist as of the effective date of this Agreement, so as
to adversely affect Revenues.
5.05. MAINTENANCE OF THE WATER AND SEWER SYSTEMS. The Local Government
shall operate and maintain the Water and Sewer Systems in a proper, sound and
economical manner and shall make all necessary repairs, renewals and
replacements.
5.06. ADDITIONS AND MODIFICATIONS. The Local Government may make any
additions, modifications or improvements to the Water and Sewer Systems which it
deems desirable and which do not reduce the operational integrity of any part of
the Water or Sewer System. All such renewals, replacements, additions,
modifications and improvements shall become part of the Water and Sewer Systems.
9
5.07. COLLECTION OF REVENUES. The Local Government shall use its best
efforts to collect all rates, fees and other charges due to it. The Local
Government shall establish liens on premises served by the Water or Sewer System
for the amount of all delinquent rates, fees and other charges where such action
is permitted by law. The Local Government shall, to the full extent permitted
by law, cause to discontinue the services of the Water and Sewer Systems and use
its best efforts to shut off water service furnished to persons who are
delinquent beyond customary grace periods in the payment of Water and Sewer
Systems rates, fees and other charges.
ARTICLE VI- DEFAULTS AND I%EMEDIES
6.01. EVENTS OF DEFAULT. Each of the following events is hereby declared
an event of default:
(1) Failure to fund the Loan Repayment Reserve or to make any Monthly Loan
Deposit or to make any installment of the Semiannual Loan Payment when it is due
and such failure shall continue for a period of thirty (30} days.
(2) Failure to comply with the provisions of this Agreement or failure in
the performance or observance of any of the covenants or actions required by
this Agreement, other than as provided in subsection 6.01{1), above, or
subsection 6.01(7), below, and such failure shall continue for a period of sixty
(60) days after written notice thereof to the Local Government by the
Department.
(3) Any warranty, representation or other statement by, or on behalf of,
the Local Government contained in this Agreement or in any information furnished
in compliance with, or in reference to, this Agreement, which is false or
misleading.
(4) An order or decree entered, with the acquiescence of the Local
Government, appointing a receiver of any part of the Water or Sewer System or
Revenues thereof~ or if such order or decree, having been entered without the
consent or acquiescence of the Local Government, shall not be vacated or
discharged or stayed on appeal within sixty (60) days after the entry thereof.
(5) Any proceeding instituted, with the acquiescence of the Local
Government, for the purpose of effecting a composition between the Local
Government and its creditors or for the purpose of adjusting the claims of such
creditors, pursuant to any federal or state statute now or hereafter enacted, if
the claims of such creditors are payable from Revenues of the Water or Sewer
System.
(6) Any bankruptcy, insolvency or other similar proceeding instituted by,
or against, the Local Government under federal or state bankruptcy or insolvency
law now Or hereafter in effect and, if instituted against the Local Government,
is not dismissed within sixty (60) days after filing.
(7) Failure of the Local Government to give i~ediate written notice of
default to the Department and such failure shall continue for a period of thirty
(30) days.
10
6.02. ~MEDIES. Upon any event of default and subject to the rights of
others having prior liens on the Pledged Revenues, the Department may enforce
its rights by any of the following remedies:
(1) By mandamus Or Other proceeding at law or in equity, cause to establish
rates and collect fees and charges for use of the Water and Sewer Systems, and
to require the Local Government to fulfill this Agreement.
(2) By action or suit in equity, require the Local Government to account
for all moneys received from the Department or from the ownership of the Water
and Sewer Systems and to account for the receipt, use, application, or
disposition of the Pledged Revenues.
(3) By action Or suit in equity, enjoin any acts or things which may be
unlawful or in violation of the rights of the Department.
(4) By applying to a court of competent jurisdiction, cause to appoint a
receiver to manage the Water and Sewer Systems, establish and collect fees and
charges, and apply the revenues to the reduction of the obligations under this
Agreement.
(5) By certifying to the Comptroller delinquency on loan repayments, the
Department may intercept the delinquent amount plus six (6) percent, expressed
as an annual interest rate, penalty of the amount due to the Department from any
unobligated funds due to the Local Government under any revenue or tax sharing
fund established by the state, except as otherwise provided by the State
Constitution. Penalty interest shall accrue on any amount due and payable
beginning on the thirtieth (30th) day following the date upon which payment is
due.
(6) By notifying financial market credit rating agencies.
(7) By suing for payment of amounts due, or becoming due, with interest on
overdue payments together with all costs of collection, including attorneys'
fees.
(8) By accelerating the repayment schedule or increasing the interest rate
by as much as three (3) percent per annum on the unpaid principal of the Loan
for a default under Subsection 6.01(1).
6.03. DELAY AND WAIVER. No delay or omission by the Department to exercise
any right or power accruing upon event of default shall impair any such right or
power or shall be construed to be a waiver of any such default or acquiescence
therein, and every such right and power may be exercised as Often as may be
deemed expedient. No waiver or any default under this Agreement shall extend to
or affect any subsequent event of default, whether of the same or different
provision of this Agreement, or shall impair consequent rights or remedies.
11
ARTICLE VII- THE PLEDG. ED REVENUES
7.01. SUPERIORITY OF THE PLEDGE TO THE DEPARTMENT. From and after the
effective date of this Agreement, the Department shall have a lien on the
Pledged Revenues prior and superior to any other lien, pledge or assignment not
specifically set forth in this Agreement. If the Loan is made in accordance
with an existing bond resolution authorizing additional Local Government
indebtedness with superior or parity liens on Pledged Revenues, all obligations
of the Local Government under this Agreement shall be subordinate in right of
payment to all bonds heretofore or hereafter issued under said bond resolution.
Any of the Pledged Revenues may be released from the lien on such Pledged
Revenues in favor of the Department if the Department makes a determination,
based upon facts deemed sufficient by the Department, that the remaining Pledged
Revenues will, in each Fiscal Year, equal or exceed 1.15 times the debt service
coming due in each Fiscal Year under the terms of this Agreement.
7.02. ADDITIONAL DEBT OBLIGATIONS. The Local Government may issue
additional debt obligations on a parity with, Or senior to, the lien of the
Department on the Pledged Revenues with the written consent of the Department if
the Local Government demonstrates, at the time of issuance of such additional
debt Obligations, that the Pledged Revenues plus revenues to be pledged to the
additional proposed debt obligations will equal or exceed 1.15 times the annual
combined debt service requirements of this Agreement plus debt service on other
obligations proposed to be issued by the Local Government. No written consent
shall be required for the $3,645,000 of remaining unissued debt authorized in
Resolution No. 1423 and Resolution NO. 1597, as amended and supplemented, and
set forth in Attachment A, paragraph {4}, of this Agreement.
ARTICLE VIII- GENERAL PROVISIONS
8.01. DISCHARGE OF OBLIGATIONS. All payments required to be made under
this Agreement shall be cumulative and any deficiencies in any Fiscal Year shall
be added to the payments due in the succeeding year and all years thereafter
until fully paid. Payments shall continue to be secured by this Agreement until
all of the payments required shall be fully paid to the Department. If, at any
time, the Local Government shall have paid, or shall have made provision for the
timely payment of, the principal amount of the Loan and interest required, the
pledge of, and lien on, the Revenues to the Department shall be no longer in
effect. Deposit of sufficient Cash, securities, or investments, authorized by
law from time to time, may be made to effect defeasance of this Loan. However,
the deposit shall be made in irrevocable trust with a banking institution or
trust company for the sole benefit of the Department. There shall be no penalty
imposed by the Department for early retirement of this Loan.
8.02. PROJECT RECORDS AND STATEMENTS. Books, records, reports, design
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 time after the Local
Government has received a disbursement and before three (3) years have elapsed
after the Department's final Project disbursement to the Local Government.
12
8.03. ACCESS TO PROJECT SITE. The Local Government shall provide access to
Project sites and administrative offices to authorized representatives of the
Department at any reasonable time. The Local Government shall cause its
engineers and contractors to cooperate during Project inspections, including
making available working copies of plans and specifications and supplementary
materials.
8.04. ASSIGNMENT OF RIGHTS UNDER AGREEMENT. The Department may assign any
part of its rights under this Agreement after notification to the Local
Government. The Local Government shall not assign rights created by this
Agreement without the written consent of the Department.
8.05. AMENDMENT OF AGREEMENT. This Agreement may be amended in writing,
except that no amendment shall be permitted which is inconsistent with statutes,
rules, regulations, executive orders, or written agreements between the
Department and the U.S. Environmental Protection Agency. This Agreement may be
amended to re-establish the Project cost, Loan amount, Project schedule, and
Semiannual Loan Payment amount. The final amendment shall be executed after the
final Project cost has been determined by the Department. The final figures
shall be determined after the Project close-out, which is to be held no sooner
than one year after the completion of construction.
8.06. SEVERABILITY CLAUSE. If any provision of this Agreement shall be
held invalid or unenforceable, the remaining provisions shall be construed and
enforced as if such invalid Or unenforceable provision had not been contained
herein.
8.07. EXECUTION OF AGREEMENT. This Agreement 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. The Agreement becomes
effective upon execution.
ARTICLE IX- CONSTRUCTION CONTRACTS AND INSURANCE
9.01. AUTHORIZATION TO AWARD CONSTRUCTION CONTRACTS. The following
documentation is required to receive the Department's authorization to award
construction contracts:
(1) Proof Of advertising.
(2) Detailed bid tabulation and the award recommendation, certified by the
engineer responsible for overseeing construction.
(3) Certified copy of the Local Government's tentative award resolution.
(4) Certification of compliance with the conditions of the Department's
approval of competitively or noncompetitively negotiated procurament.
(5) certification that affirmative steps were taken to encourage
participation of women's and minority business enterprises in Project
construction and documentation of the intended use of such enterprises therein.
13
9.02. SUBMITTAL OF CONSTRUCTION CONTRACT DOCUMENTS. After the Department's
authorization to award construction contracts has been received, the Local
Government shall submit bonding and insurance certifications, construction and
payment schedules, notices to proceed with construction, itemized construction
cost breakdowns, and executed contract documents.
9.03. INSURANCE REQUIRED. The Local Government shall require contractors
to file performance and payment bonds for the full amount of the contracts. The
Local Government shall cause insurance, including that issued through the
National Flood Insurance Program authorized under 42 U.S.C. secs. 4001-4128 when
applicable, to be obtained and maintained against such risks as is customary
during construction. The Local Government shall require contractors to furnish
workers' compensation, comprehensive general liability, vehicle liability, and
property damage insurance, including builder's standard "all-risk" insurance to
the extent that coverage is available from time to time against any one or more
of such risks. contractors' indemnification obligations shall be described in
the construction contract documents.
The Local Government shall cause the Project, as each part thereof is
certified by the engineer responsible for overseeing construction as completed,
and the Water and Sewer Systems (hereafter referred to as "Revenue Producing
Facilities") to be insured by an insurance company or companies licensed to do
business in the State of Florida against such risks as are customary in
connection with the Operation of Revenue Producing Facilities of like size, type
and location in the amounts recor~nended by an independent consultant to the
extent such insurance is obtainable from time to time against any one or more of
such risks.
As documentation of insurance coverage, the Local Government shall file the
following with the Departments
(1) A certification describing the performance and payment bonds of
contractors that have been retained for construction of the Project.
(2) A certification for each construction contract assuring that the
required insurance is being carried during construction.
(3) A certification of insurance specifically describing the Project and
the other Revenue Producing Facilities~ stating that these facilities are
covered~ stating the specific risks covered, the amount of coverage provided
against those risks, and whether the risks covered are those customarily insured
against in connection with the operation of Revenue Producing Facilities of like
size, type and location to the extent that such insurance is obtainable at the
time of the certification~ and that the insurance coverage is adequate. This
certification shall be submitted annually and may be included as part of the
certification required by Subsection 2.01(16) herein.
(4) Such other certificates or documents by consultants, insurance
carriers, or Local Government officials concerning insurance coverage as may
reasonably be required by the Department.
14
Notwithstanding the foregoing provisions, the Local Government may
institute and maintain actuarially sound and prudent self-insurance programs
with regard to such risks as shall be consistent with the recommendations of a
qualified insurance consultant. Such recommendations, and supporting
documentation, shall be submitted to the Department.
The proceeds of insurance policies received as a result of damage to, or
destruction of, the Project or the other Revenue Producing Facilities, shall be
used to restore or replace damaged portions of the facilities. If such proceeds
are insufficient, the Local Government shall provide additional funds to restore
or replace the damaged portions of the facilities. Repair, construction or
replacement shall be promptly completed.
The insurance provisions of this Section may be modified or waived, to the
extent permitted by law~ with the written consent of the Department.
ARTICLE X- DETAILS OF FINANCING
10.01. PRINCIPAL AMOUNT OF LOAN. The amount of the Loan authorized is Five
Hundred Thousand Five Hundred Sixty Five and Eighty Nine One-hundredths Dollars
($500,565.89). Capitalized Interest in the amount of Five Hundred Sixty Five
and Eighty Nine One-hundredths Dollars ($565.89) is included in the principal
amount of the Loan but is not disbursed to the Local Government.
10.02. PROJECT COSTS. The Local Government and the Department acknowledge
that the actual cost of the Project has not been determined as of the effective
date of this Agreement. The final cost shall be established after all Project
costs are reviewed subsequent to Project performance certification. changes in
Project costs may also occur as a result of the Local Government's Project audit
or a Department audit pursuant to Chapter 17-503 of the Florida Administrative
code. The Local Government agrees to the following estimates for the Project
costs to be financed by this Loan.
COST CATEGORY AMOUNT
(1) Administrative Allowance S 12,000
(2) Allowance for Preliminary Engineering S 104,504
(3) Refinancing
Construction and Demolition $ 357,430
Technical Services
During Construction (contractual) S -0-
(4) Equipment and Materials S -0-
(5) Land S -0-
(6) Contingencies S -0-
(7) Loan Repayment Reserve S 9,479
(8) Start-up Services S -0-
(9) Loan Service Fee
[3.5% of Amounts (1) through (6)] $ 16,587
(10) Capitalized Interest S 566
TOTAL COST S 500,566
15
10.03. PROJECT SCHEDULE. The Local Government agrees by execution hereof=
(1) The disbursement of design and administrative allowances will be made
upon request of the Local Government.
(2) The schedule for Loan disbursements is set forth in Attachment C.
(3) The date by which construction is scheduled for completion is
December 31, 1993.
(4) The Department shall conduct an inspection of the Project at which time
certain specific deadlines limiting Project cost eligibility shall be
established. A deadline for certification of the operational performance of the
Project shall also be established. These deadlines shall be incorporated into
the Loan Agreement by amendment.
(5) The date by which the Loan Repayment Reserve Account is to be
established by the Local Government and the date by which Monthly Loan Deposits
are to begin is February 1, 1994.
(6) The date by which the first Semiannual Loan Payment becomes due is
August 1, 1994.
10.04. INTEREST RATE. The rate of interest on the unpaid principal of the
Loan is Two and Forty Three One-hundredths (2.43) percent per annum; however, if
this Agreement is not executed by the Local Government and the Department before
January 1, 1994, the interest rate shall be adjusted pursuant to Section
17-503.430 of the Florida Administrative code.
10.05. LOAN TERM. The Loan shall be repaid in Forty (40) Semiannual Loan
Payments.
10.06. HEPAYHENT SCHEDULE. The first Semiannual Loan Payment shall be
computed based upon the principal amount of the Loan, as estimated under Section
10.01, the estimated disbursement schedule identified in Attachment C, and level
debt service. Subsequent semiannual Loan Payments may be adjusted based upon
revised Project cost and disbursement information. Any remaining installments
shall be equal and shall be based upon the actual Project costs and actual dates
and amounts of disbursements to the Local Government after adjustment for any
overpayment, or underpayment, associated with the Mount of previous Semiannual
Loan Payments. Actual Project costs shall be established after the Local
Government's certification of Project performance, the Department's inspection
of the Project and associated records, and amendment of the Loan Agreement.
Each Semiannual Loan Payment shall be in the amount of Fifteen Thousand Eight
Hundred Seventy Four and Eighty Four One-hundredths Dollars ($15,874.84). The
interest portion of each Semiannual Loan Payment shall be computed on the unpaid
balance of the principal amount of the Loan, including Capitalized Interest.
Interest shall be computed as of the due date of the Semiannual Loan Payment.
Semiannual Loan Payments shall be received by the Department beginning on or
before August 1, 1994 and semiannually thereafter on February 1 and August 1 of
16
each year until all amounts due hereunder have been fully paid. Funds transfer
shall be made by electronic means or by means of magnetic tape when such
transfer mechanisms are available.
IN WITNESS WHEREOF, the Department has caused this Agreement to be executed
on its behalf by the Secretary of the Department and the Local Government has
caused this Agreement to be executed on its behalf by its Authorized
Representative and by its affixed seal. The effective date of this Agreement is
the ~/s_~f day of 7~ec~e~ , 1993. This Agreement incorporates
Attachments A, B, and C hereto.
~S~-~ Secretary ay
STATE OF FLORIDA
DEPARTMENT OF ENVIRO~rZAL PROTECTION
City'Manager
CITY OF SANFORD
ATTEST
City Clerk
SEAL -=
City Attorney
17
A~TACHMENT At DESCRIPTION OF PLEDGED ItEVEIqUES
Pledged Revenues shall mean the Revenues derived yearly from the Subordinated
Debt Service Fund, as identified in Resolution No. 1671, adopted by the city
commission of the city of Sanford on October 25, 1993, and in Resolution No.
1423, adopted by the City Commission Of The city Of Sanford on October 7, 1985,
as amended and supplemented, after payment of the Operation and Maintenance
Expense and the satisfaction of all yearly payment obligations on account of the
debt obligations identified as follows=
(1) $11,150,000 City of Sanford Water and Sewer Refunding Revenue Bonds,
Series 1992, dated June 1, 1992, and issued June 17, 1992, pursuant to
Resolution No. 1623, Resolution No. 1630, Resolution No. 1631 and
Resolution No. 1634. These bonds were issued to advance refund
$10,195,000 of outstanding 1986 Series bonds. U.S. Government securities
were purchased with the bond proceeds and deposited in an irrevocable
trust with an escrow agent to provide for all future debt service
payments on the refunded bonds. The refunded bonds are considered to be
defeased.
(2) $28,605,000 City of Sanford Water and Sewer Refunding Revenue Bonds,
Series 1993, dated November 1, 1993, and issued November 10, 1993,
pursuant to Resolution No. 1668, Resolution No. 1678, and Resolution
No. 1676. These bonds were issued to advance refund all of the remaining
outstanding 1986 Series bonds, 1989 Series bonds and 1991 Series bonds.
U.S. Government securities were purchased with the bond proceeds and
deposited in an irrevocable trust with an escrow agent to provide for all
future debt service payments on the refunded bonds. The refunded bonds
are considered to be defeased.
(3} Any of the $3,645,000 remaining authorized but unissued debt
obligations authorized pursuant to Resolution No. 1423 and Resolution
No. 1597, as amended and supplemented.
Said Revenues are available from operation of the Water and Sewer Systems.
18
ATTACHMENT B: PROJECT DESCRIPTION
The Project financed by this Loan is denoted by the Department's identifying
Number CS120586190. It consists of furnishing all labor, materials, and
equipment for one contract to construct reclaimed water reuse facilities at
Site 10. The contract is entitled "Hayfield Development and Irrigation System,
contract IV".
Contract IV includes the construction of a pumping station for the hayfield area
at Site 10~ 6- to 16-inch-diameter reclaimed water mains from the hayfield
pumping station to irrigation distribution boxes within the hayfield area~
irrigation distribution boxes and ditches within the hayfield area~ and
irrigation lateral swales and drainage lateral swales within the hayfield area~
plus the re-liming, re-fertilizing, and re-grassing of the disturbed areas
within the hayfield area. The hayfield pumping station includes a wet well with
two vertical turbine pumps having a capacity of 1900 gpm each.
The authorized Loan amount will provide financing for only a portion of the
contract IV costs.
The project is in agreement with the sanford 201 Facilities Plan Amendment
Number 2 dated February 1988 and the Westerly Interceptor Addendum dated May
1989. Approval of this project is provided by the Finding of No Significant
Impact-Amendment dated April 12, 1991. The project is an Equivalency Project as
defined in Chapter 17-503 of the Florida Administrative code.
19
ATTACHMENT Cz ESTIMATED LOAN DISBURSEMENT SCHEDULE
The schedule for disbursement of the Loan, including the Cost of construction,
is as follows=
Date Amount
January 1994 $483,413
January 1994 16,587 Service Fee
The total amount to be disbursed is $500,000. This amount is equal to the Loan
amount less Capitalized Interest.
20