1535* FDEP State Revolving FundROUTING MEMO
�
TO:� J � i Name
Department or
Organizational Code
Action
Initials
and Date
b w,5e) o V
N �f P U h
ACTION: 4. Please Call Me 8. Note and Return 12. Re Our Conversation
1. Your Information 5. Please Handle 9. Signature 13. Your Comments or
2. Approval 6. As Requested 10. Please Reply
Recommendations
3. Please See Me 07PIease File 11. See "Remarks" 14. Read and Pass On
REMARKS (Use Reverse Side for More Space) �" "
' �.� al J i4 � A v v t W+,o G� 1
11i
Tie- ov J`\ \A \ 5 Fz v \out PyLw
tuc
FROM DATE
Rick Scb'[t
Florida Department of Governor
Environmental Protection Jennifer Carroll
Lt. Governor
Bob Martinez Center
2600 Blair Stone Road Herschel T. Vinyard Jr.
Tallahassee, Florida 32399 -2400 ✓ Secretary
OCT 15 2012
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Ms. Migdalia Hernandez
Water Resources Engineer
City of Sanford
Post Office Box 1788
Sanford, Florida 32772
Re: DW590120 - Sanford
Distribution
Dear Ms. Hernandez:
We are pleased to provide additional financing under the State Revolving Fund
program for construction of your distribution project. Enclosed is one original of
Amendment 2 to your loan. The amendment is now in effect.
We congratulate you and your staff on your efforts and are pleased that we can
continue working with you on this project. If we may be of further assistance,
please contact Graham Culbertson at 850/245-8358.
Sincerely,
I
Christine M. Klena, Deputy Director
Division of Water Resource Management
CMK/ gc
Enclosure
cc: Norton Bonaparte - City of Sanford
Cynthia Lindsay - City of Sanford
It III uc'p. c.f.iJ
DRINKING WATER STATE REVOLVING FUND
AMENDMENT 2 TO LOAN AGREEMENT DW590120
CITY OF SANFORD
This amendment is executed by the STATE OF FLORIDA DEPARTMENT OF
ENVIRONMENTAL PROTECTION (Department) and the CITY OF SANFORD, FLORIDA,
(Project Sponsor) existing as a local government agency under the laws of the State of Florida.
WITNESSETH:
WHEREAS, the Department and the Project Sponsor entered into a Drinking Water State
Revolving Fund Loan Agreement, Number DW590120, as amended, authorizing a Funding
amount of $15,000,000, excluding Capitalized Interest, which consists of Principal Forgiveness
in the amount of $3,000,000; and
WHEREAS, the Project Sponsor is entitled to additional financing of $2,105,683, excluding
Capitalized Interest; and
WHEREAS, an interest rate must be established 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 definition of Project needs revision to include additional contracts; and
WHEREAS, the Project costs need adjustment to reflect revised estimates.
NOW, THEREFORE, the parties hereto agree as follows:
1. Subsection 1.01(14) of the Agreement is deleted and replaced as follows:
"Project" shall mean the works financed by this Loan and shall consist of furnishing all
labor, materials, and equipment to construct the distribution project in accordance with the
plans and specifications accepted by the Department for the following contracts:
(a) "AMR Water Meter Replacement." This contract is for the purchase and installation
of meters; and
(b) "City of Sanford Water Quality Improvement Project "; and
(c) "City of Sanford Hidden Lakes Floridan Aquifer Well 7 Replacement "; and
(d) "City of Sanford - Water Plant No. 2 Compliance Improvements."
The Project is in agreement with the Water Facilities Plan and Addendum No. 2
accepted by the Department effective February 22, 2012. A Florida Categorical Exclusion
Notification was published on April 24, 2009 and no adverse comments were received. The
Project is an Equivalency Project as defined in Chapter 62 -552, Florida Administrative Code.
2. Subsection 2.03(1) of the Agreement is deleted and replaced as follows:
The Project Sponsor agrees to the following audit and monitoring requirements.
(1) The financial assistance authorized pursuant to this Loan Agreement consists of the
following:
Federal Resources, Including State Match, Awarded to the Recipient Pursuant to this Agreement Consist
of the Following:
Federal
State
Program
Federal
CFDA
Funding
Appropriation
Number
Agency
Number
CFDA Title
Amount
Catego
FS984522 -100
EPA
66.468
Capitalization Grants
$17,105,683
140129
for Drinking Water
State Revolving Fund
3. Section 4.08, first paragraph, is deleted and replaced as follows:
Disbursements shall be made only by the State Chief Financial Officer and only when
the requests for such disbursements are accompanied by a Department certification that such
withdrawals are proper expenditures. Disbursements shall be made directly to the Project
Sponsor for engineering and administrative allowances, and reimbursement of the incurred
construction costs and related services. The Principal Forgiveness on each disbursement under
the Original Agreement shall be 40 percent of the requested amount after subtracting costs that
are ineligible for Principal Forgiveness. The Principal Forgiveness on each disbursement under
Amendment 1 shall be 10 percent, and under Amendment 2 shall be 47.49 percent after
subtracting ineligible costs. Disbursements for materials, labor, or services shall be made upon
receipt of the following:
4. Additional financing in the amount of $2,105,683, excluding Capitalized Interest, is
hereby awarded to the Project Sponsor. Of that amount, $1,000,000 is Principal Forgiveness.
5. An interest rate of 1.98 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 October 1, 2012, the interest rate may be
adjusted.
6. The total amount awarded is $17,105,683. Of that, the estimated amount of Principal
Forgiveness is $4,000,000. The estimated principal amount of the Loan to be repaid is
$13,322,183, which consists of $13,105,683 to be disbursed to the Project Sponsor and $216,500 of
Capitalized Interest. This total consists of the following:
2
(a) Original Agreement of $3,081,200, including $3,000,000 authorized for disbursement
to the Project Sponsor and $81,200 of Capitalized Interest, at a interest rate of 2.66 percent per
annum; and
(b) Amendment 1 of $9,131,600, including $9,000,000 authorized for disbursement to the
Project Sponsor and $131,600 of Capitalized Interest, at a interest rate of 2.50 percent per
annum; and
(c) Amendment 2 of $1,109,383, including $1,105,683 authorized for disbursement to the
Project Sponsor and $3,700 of Capitalized Interest, at a interest rate of 1.98 percent per annum.
7. An additional Loan Service Fee in the amount of $22,114, for a total of $262,114, is
hereby assessed. The fee represents two percent of the Loan amount excluding Capitalized
Interest; that is, two percent of $13,105,683. Estimated Loan Service Fee capitalized interest for
the fee amount assessed to date is $8,720.
8. The Semiannual Loan Payment amount is hereby revised and shall be in the amount
of $433,686. Such payments shall be received by the Department on August 15, 2013 and
semiannually thereafter on February 15 and August 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 deduction 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.
The Semiannual Loan Payment amount is based on the total amount owed of
$13,593,017, which consists of the Loan principal plus the Loan Service Fee with its capitalized
interest (if any).
9. The Project Sponsor and the Department acknowledge that the actual cost of the
Project has not been determined. Project cost adjustments may be made as a result of
construction bidding or mutually agreed upon Project changes. Capitalized Interest will be
recalculated based on actual dates and amounts of Loan disbursements. If the Project Sponsor
receives other governmental financial assistance for this Project, the costs funded by such other
governmental assistance will not be financed by this Loan. The Department shall establish the
final Project costs after its final inspection of the Project records. Changes in Project costs may
also occur as a result of the Project Sponsor's Project audit or a Department audit.
Funds disbursed in accordance with Section 4.08 of this Agreement shall be disbursed in
the order in which they have been obligated without respect to budgetary line item estimates.
All disbursements shall be made from the original Loan amount until that amount has been
disbursed; the interest rate established for the original Loan amount shall apply to such
disbursements for the purpose of determining the associated Capitalized Interest and
repayment amount. The interest rate established for any additional increment of Loan
financing shall be used to determine the Capitalized Interest and repayment amount associated
with the funds disbursed from that increment.
The estimated Project costs are revised as follows:
CATEGORY
AUTHORIZED
LOAN
COST($) AMOUNT($) TO
DATE
Administrative Allowance
Engineering Allowance
Construction and Demolition
Contingencies
159,611
1,596,113
21,418,755
Line items
Technical Services After Bid Opening
SUBTOTAL(Disbursable Amount)
Less Principal Forgiveness
SUBTOTAL (Loan Amount)
Capitalized Interest
TOTAL (Loan Principal Amount)
may vary
based on
2,418,353 actual
1,764,775 disbursements
27,357,607 17,105,683
(4,000,000) (4,000,000)
23,357,607 13,105,683
216,500 216,500
23,574,107 13,322,183
10. Subsection 10.07(4) of the Agreement is deleted and replaced as follows:
(4) The first Semiannual Loan Payment in the amount of $433,686 shall be due
August 15, 2013.
11. Section 10.08 of the Agreement is deleted and replaced as follows:
(1) Project costs, as provided for in this Loan, shall be reviewed, and may be adjusted,
once the final Project costs have been established.
(2) Prior to any funds being released, the Project Sponsor shall submit a certified copy
of the Resolution which authorizes the increased Loan amount.
12. All other terms and provisions of the Loan Agreement shall remain in effect.
REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
This Amendment 2 to Loan Agreement DW590120 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.
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.
Attest
SEAL
expressed in Section 2.02
of the Agreement, entitled Legal
Authorization.
City At&neyV
for
STATE OF FLORIDA
DEPARTMENT OF ENVIRONMENTAL PROTECTION
OCT 0 3 2012
Deputy birector Date
Division of Water Resource Management