1650 Loan Agrmt SW590140 Y4,'n
,t��0,0IKIION RICK SCOTT
` FLORIDA DEPARTMENT OF GOVERNOR 4;P'
ENVIRONMENTAL PROTECTION
CARLOS LOPEZ-CANTERA ",.;r'
` BOB MARTINEZ CENTER LT.GOVERNOR
FLOR A ` 2600 BLAIRSTONE ROAD MS 3505 6.4
TALLAHASSEE,FLORIDA 32399-2400 HERSCHEL T. VINYARD JR. CO
SECRETARY Cu.
nee.
CERTIFIED MAIL - SIGNATURE REQUIRED
April 4, 2014
Ms. Cynthia Lindsay
Director of Finance
City of Sanford
Post Office Box 1788
Sanford, Florida 32772
Re: SW590140 - Sanford
Stormwater Management Facilities
Dear Ms. Lindsay:
We are pleased to provide State Revolving Fund financial assistance for construction of the
City's stormwater project. One original of the fully executed loan agreement is enclosed. To
draw money under the agreement, please call Carleen Pruyn at 850/245-8395 for assistance in
completing a disbursement request.
We congratulate you and your staff on your efforts and are pleased that we can work with you on
this project.
S'scerely,
Ø . i.,
• Vitile13+"
Ange� echt, Program Administrator
State Revolving Fund Management
AK/sw
Enclosure
cc: Robert Beall - City of Sanford
Don Berryhill - The Berryhill Group, LLC
Honorable Jeff Triplett - City of Sanford
STATE OF FLORIDA
DEPARTMENT OF ENVIRONMENTAL PROTECTION
AND
CITY OF SANFORD, FLORIDA
CLEAN WATER STATE REVOLVING FUND
LOAN AGREEMENT
SW590140
Florida Department of Environmental Protection
State Revolving Fund Program
Bob Martinez Center
2600 Blair Stone Road, MS 3505
Tallahassee, Florida 32399-2400
CLEAN WATER STATE REVOLVING FUND LOAN AGREEMENT
CONTENTS PAGE
ARTICLE I-DEFINITIONS 1
1.01. WORDS AND TERMS. 1
1.02. CORRELATIVE WORDS. 3
ARTICLE II-WARRANTIES, REPRESENTATIONS AND COVENANTS 3
2.01. WARRANTIES, REPRESENTATIONS AND COVENANTS. 3
2.02. LEGAL AUTHORIZATION. 5
2.03. AUDIT AND MONITORING REQUIREMENTS. 5
ARTICLE III- LOAN REPAYMENT ACCOUNT 8
3.01. LOAN DEBT SERVICE ACCOUNT. 8
3.02. INVESTMENT OF LOAN DEBT SERVICE ACCOUNT MONEYS. 8
3.03. LOAN DEBT SERVICE ACCOUNT WITHDRAWALS. 9
3.04. ASSETS HELD IN TRUST. 9
ARTICLE IV-PROGRAM INFORMATION 9
4.01. PROJECT CHANGES. 9
4.02. TITLE TO PROJECT SITE. 9
4.03. RESERVED. 9
4.04. RESERVED. 9
4.05. PROHIBITION AGAINST ENCUMBRANCES. 9
4.06. COMPLETION MONEYS. 10
4.07. CLOSE-OUT. 10
4.08. LOAN DISBURSEMENTS. 10
ARTICLE V-RATES AND USE OF THE STORMWATER SYSTEM 11
5.01. RATE COVERAGE. 11
5.02. MAINTENANCE OF THE STORMWATER SYSTEM. 11
5.03. ADDITIONS AND MODIFICATIONS. 11
5.04. COLLECTION OF REVENUES. 11
ARTICLE VI-DEFAULTS AND REMEDIES 11
6.01. EVENTS OF DEFAULT. 11
6.02. REMEDIES. 12
6.03. DELAY AND WAIVER. 13
ARTICLE VII -THE PLEDGED REVENUES 13
7.01. SUPERIORITY OF THE PLEDGE TO THE DEPARTMENT. 13
7.02. ADDITIONAL DEBT OBLIGATIONS. 13
ARTICLE VIII-GENERAL PROVISIONS 14
8.01. DISCHARGE OF OBLIGATIONS. 14
8.02. RECORDS AND STATEMENTS. 14
8.03. ACCESS TO WORK SITE. 14
CLEAN WATER STATE REVOLVING FUND LOAN AGREEMENT
CONTENTS PAGE
8.04. ASSIGNMENT OF RIGHTS UNDER AGREEMENT. 14
8.05. AMENDMENT OF AGREEMENT. 14
8.06. ANNULMENT OF AGREEMENT. 15
8.07. SEVERABILITY CLAUSE. 15
8.08.USE AS MATCHING FUNDS. 15
8.09. COMPLIANCE VERIFICATION. 15
ARTICLE IX-RESERVED 16
ARTICLE X-DETAILS OF FINANCING 16
10.01. PRINCIPAL AMOUNT OF LOAN. 16
10.02. LOAN SERVICE FEE. 16
10.03. FINANCING RATE. 16
10.04. LOAN TERM. 17
10.05. REPAYMENT SCHEDULE. 17
10.06.PROJECT RELATED COSTS. 17
10.07. SCHEDULE. 18
ARTICLE XI-EXECUTION OF AGREEMENT 20
CLEAN WATER STATE REVOLVING FUND LOAN AGREEMENT
SW590140
THIS AGREEMENT is executed by the STATE OF FLORIDA DEPARTMENT OF
ENVIRONMENTAL PROTECTION(Department) and the CITY OF SANFORD, FLORIDA,
(Local Government) existing as a local governmental agency 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 governmental agencies to finance the planning, design, and construction of
stormwater pollution control facilities; and
WHEREAS, funding is provided from the State Revolving Fund program repayments and
interest,which are Federally protected but which are subject to state audit requirements; and
WHEREAS, the Local Government has made application for the financing of Preconstruction
Activities, and the Department has determined that all requirements for a loan have been met.
NOW, THEREFORE, in consideration of the Department loaning money to the Local
Government, in the principal amount and pursuant to the covenants hereinafter set forth, it is
agreed as follows:
ARTICLE I-DEFINITIONS
1.01. WORDS AND TERMS.
Words and terms used herein shall have the meanings set forth below:
(1) "Agreement"or"Loan Agreement" shall mean this agreement.
(2) "Authorized Representative" shall mean the official of the Local Government
authorized by ordinance or resolution to sign documents associated with the Loan.
(3) "Capitalized Interest" shall mean a finance charge that accrues at the Financing Rate
on Loan proceeds from the time of disbursement until six months before the first Semiannual
Loan Payment is due. Capitalized Interest is financed as part of the Loan principal.
(4) "Construction Related Costs"shall mean costs for Project construction, equipment,
materials, demolition, contingency, legal and technical services incurred after construction bid
opening, and Capitalized Interest associated with the foregoing costs.
(5) "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.
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' II
(6) "Financing Rate" shall mean the charges, expressed as a percent per annum, imposed
on the unpaid principal of the Loan. The Financing Rate shall consist of an interest rate
component and a Grant Allocation Assessment rate component.
(7) "Grant Allocation Assessment" shall mean an assessment, expressed as a percent per
annum, accruing on the unpaid balance of the Loan. It is computed similarly to the way interest
charged on the Loan is computed and is included in the Semiannual Loan Payment. The
Department will use Grant Allocation Assessment moneys for making grants to financially
disadvantaged small communities pursuant to Section 403.1835 of the Florida Statutes.
(8) "Gross Revenues" shall mean stormwater utility fees and all income and earnings
received by the Local Government from the ownership or operation of its Stormwater System,
including investment income, all as calculated in accordance with generally accepted accounting
principles. Gross Revenues shall not include proceeds from the sale or other disposition of any
part of the Stormwater System, condemnation awards or proceeds of insurance, except use and
occupancy or business interruption insurance, received with respect to the Stormwater System.
(9) "Loan" shall mean the amount of money to be loaned pursuant to this Agreement
and subsequent amendments.
(10)"Loan Application" shall mean the completed form which provides all information
required to support obtaining loan financial assistance from the Department.
(11)"Loan Debt Service Account" shall mean an account, or a separately identified
component of a pooled cash or liquid account, with a Depository established by the Local
Government for the purpose of accumulating Monthly Loan Deposits and making Semiannual
Loan Payments.
(12)"Loan Service Fee"shall mean an origination fee which shall be paid to the
Department by the Local Government.
(13)"Monthly Loan Deposit" shall mean the monthly deposit to be made by the Local
Government to the Loan Debt Service Account.
(14)"Operation and Maintenance Expense" shall mean the costs of operating and
maintaining the Stormwater System determined pursuant to generally accepted accounting
principles, exclusive of interest on any debt payable from Gross Revenues, depreciation, and any
other items not requiring the expenditure of cash.
(15)"Pledged Revenues" shall mean the specific revenues pledged as security for
repayment of the Loan and shall be the Gross Revenues derived yearly, from the operation of the
Stormwater System after payment of the Operation and Maintenance Expense and the
satisfaction of all yearly payment obligations on account of any senior obligations issued
pursuant to Section 7.02 of this Agreement.
(16)"Preconstruction Activities" shall mean the planning, administrative, and
engineering work necessary for the Local Government to qualify for Clean Water State
Revolving Fund financing for construction of stormwater pollution control facilities.
•.. •..
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(17)"Project" shall mean the construction of facilities planned and designed through the
Preconstruction Activities.
The Project also includes the purchase of land.
(18)"Semiannual Loan Payment" shall mean the payment due from the Local
Government to the Department at six-month intervals.
(19)"Stormwater System" shall mean all devices and facilities owned by the Local
Government for collection, transmission, detention, retention, treatment, and management of
stormwater.
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.
ARTICLE II-WARRANTIES, REPRESENTATIONS 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 currently 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 knows of no reason why any future required permits or
approvals associated with the Project are not obtainable.
(5) The Local Government shall undertake Preconstruction Activities and the Project on
its own responsibility, to the extent permitted by law.
(6) To the extent permitted by law, 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, engineering, administrative,
and construction activities financed by this Loan or in its operation of Project facilities.
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(7) All Local Government representations to the Department,pursuant to the Loan
Application and Agreement, were true and accurate as of the date such representations were
made. The financial information delivered by the Local Government to the Department was
current and correct as of the date such information was delivered. The Local Government shall
comply with Chapter 62-503, Florida Administrative Code, and 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.
(8) The Local Government shall maintain records using generally accepted accounting
principles established by the Governmental Accounting Standards Board. As part of its
bookkeeping system,the Local Government shall keep accounts of the Stormwater System
separate from all other accounts and it shall keep accurate records of all revenues, expenses, and
expenditures relating to the Stormwater System, and of the Pledged Revenues, Loan
disbursement receipts, and Loan Debt Service Account.
(9) 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 non-ad
valorem funds which will be sufficient,together with the Pledged Revenues, to make the
Semiannual Loan Payments. Such other legally available non-ad valorem 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 non-ad valorem funds. Nothing in this covenant shall be
construed as creating a pledge, lien, or charge upon any such other legally available non-ad
valorem funds; requiring the Local Government to levy or appropriate ad valorem tax revenues;
or preventing the Local Government from pledging to the payment of any bonds or other
obligations all or any part of such other legally available non-ad valorem funds.
(10)Each year,beginning three months before the first Semiannual Loan Payment and
ending with the year during which the final Loan repayment is made,the Local Government's
Authorized Representative or its chief financial officer shall submit, no later than the date
established in Section 10.07, a certification that: (a) Pledged Revenue collections satisfy, on a
pro rata basis, the rate coverage requirement; (b)the Loan Debt Service Account contains the
funds required; and(c) insurance, including that issued through the National Flood Insurance
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.
(11)Pursuant to Section 216.347 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.
(12)The Local Government agrees to complete the Preconstruction Activities and, if
included by an amendment to this Agreement, the Project, in accordance with the
Preconstruction Activities schedule set forth in Section 10.07 and a Project schedule added by
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amendment to this Agreement. Delays incident to strikes, riots, acts of God, and other events
beyond the reasonable control of the Local Government are excepted. However,there shall be
no resulting diminution or delay in the Semiannual Loan Payment or the Monthly Loan Deposit.
(13)The Local Government covenants that this Agreement is entered into for the purpose
of completing planning, engineering, and administrative activities in order to construct facilities
which will, in all events, serve a public purpose.
2.02. LEGAL AUTHORIZATION.
Upon signing this Agreement,the Local Government's legal counsel hereby expresses
the opinion, subject to laws affecting the rights of creditors generally, that:
(1) This Agreement has been duly authorized by the Local Government and shall
constitute a valid and legal obligation of the Local Government enforceable in accordance with
its terms upon execution by both parties; and
(2) This Agreement specifies the revenues pledged for repayment of the Loan, and the
pledge is valid and enforceable.
2.03. AUDIT AND MONITORING REQUIREMENTS.
The Local Government agrees to the following audit and monitoring requirements.
Funds provided under this Agreement have been identified as second-tier monies under
the Federal Clean Water Act which are identified as state funds whose use is federally protected.
(1) The financial assistance authorized pursuant to this Loan Agreement consists of the
following:
State Resources Awarded to the Local Government Pursuant to this Agreement Consist of the
Following Resources Subject to Section 215.97, F.S.:
State State
Program CSFA CSFA Title or Funding Appropriation
Number Funding Source Number Fund Source Amount Category
Description
Wastewater
Treatment and Statewide Surface
Original 37.077 Water Restoration $2,538,190 140131
Agreement Stormwater
g Management TF and Wastewater
Projects
(2) Audits.
(a) In the event that the Local Government expends a total amount of state financial
assistance equal to or in excess of$500,000 in any fiscal year of such Local Government, the
Local Government must have a State single or project-specific audit for such fiscal year in
accordance with Section 215.97,Florida Statutes; applicable rules of the Department of Financial
Services; and Chapters 10.550 (local governmental entities) or 10.650 (nonprofit and for-profit
5
organizations),Rules of the Auditor General. In determining the state fmancial assistance
expended in its fiscal year, the Local Government shall consider all sources of state financial
assistance, including state financial assistance received from the Department of Environmental
Protection, other state agencies, and other nonstate entities. State financial assistance does not
include Federal direct or pass-through awards and resources received by a nonstate entity for
Federal program matching requirements.
(b) In connection with the audit requirements addressed in the preceding paragraph(a);
the Local Government shall ensure that the audit complies with the requirements of Section
215.97(7), Florida Statutes. This includes submission of a financial reporting package as defined
by Section 215.97(2), Florida Statutes, and Chapters 10.550 (local governmental entities) or
10.650 (nonprofit and for-profit organizations),Rules of the Auditor General.
(c) If the Local Government expends less than$500,000 in state financial assistance in its
fiscal year, an audit conducted in accordance with the provisions of Section 215.97, Florida
Statutes, is not required. The Local Government shall inform the Department of findings and
recommendations pertaining to the State Revolving Fund in audits conducted by the Local
Government in which the $500,000 threshold has not been met. In the event that the Local
Government expends less than$500,000 in state financial assistance in its fiscal year, and elects
to have an audit conducted in accordance with the provisions of Section 215.97, Florida Statutes,
the cost of the audit must be paid from the non-state entity's resources(i.e., the cost of such an
audit must be paid from the Local Government's resources obtained from other than State
entities).
(d) For information regarding the Florida Catalog of State Financial Assistance(CSFA),
a Local Government should access the Florida Single Audit Act website located at
https://apps.fldfs.com/fsaa for assistance. In addition to the above websites, the following
websites may be accessed for information: Legislature's Website at
http://www.leg.state.fl.us/Welcome/index.efim, State of Florida's website at
http://www.myflorida.com/, Department of Financial Services' Website at http://www.fldfs.com/
and the Auditor General's Website at http://www.state.fl.us/audgen.
(3)Report Submission.
(a) Copies of financial reporting packages shall be submitted by or on behalf of the
Local Government directly to each of the following:
(i) The Department at the following address:
Valerie Peacock, Audit Director
Office of the Inspector General
Florida Department of Environmental Protection
3900 Commonwealth Boulevard, MS 41
Tallahassee, Florida 32399-3123
(ii) The Auditor General's Office at the following address:
State of Florida Auditor General
6
Room 401, Claude Pepper Building
111 West Madison Street
Tallahassee, Florida 32399-1450
(iii)Copies of reports or management letters shall be submitted by or on behalf of the
Local Government directly to the Department of Environmental Protection at the
following address:
Valerie Peacock,Audit Director
Office of the Inspector General
Florida Department of Environmental Protection
3900 Commonwealth Boulevard, MS 41
Tallahassee, Florida 32399-3123
(b) 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 Florida
Statutes,or Chapters 10.550 (local governmental entities) or 10.650 (nonprofit and for-profit
organizations), Rules of the Auditor General, as applicable.
(c) Local Governments,when submitting financial reporting packages to the Department
for audits done in accordance with Chapters 10.550 (local governmental entities) 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 Local Government in correspondence
accompanying the reporting package.
(4) Project-Specific Audit.
Within 12 months after the amendment establishing final Project costs,the Local
Government 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. The Local Government shall
cause the auditor to notify the Department immediately if anything comes to the auditor's
attention during the examination of records that would constitute a default under the Loan
Agreement. The audit findings shall set aside or question any costs that are unallowable under
Chapter 62-503, Florida Administrative Code. A final determination of whether such costs are
allowed shall be made by the Department.
(5) Record Retention.
The Local Government 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 Local Government shall ensure that audit 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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7
The Local Government is hereby advised that the Florida Single Audit Act Requirements
may further apply to lower tier transactions that may be a result of this Agreement.
The Local Government should confer with its chief financial officer, audit director or
contact the Department for assistance with questions pertaining to the applicability of these
requirements.
(6) Monitoring.
In addition to reviews of audits conducted in accordance with Section 215.97, F.S., as
revised monitoring procedures may include,but not be limited to, on-site visits by Department
staff and/or other procedures. By entering into this Agreement,the Local Government agrees to
comply and cooperate with any monitoring procedures/processes deemed appropriate by the
Department of Environmental Protection. In the event the Department of Environmental
Protection determines that a limited scope audit of the Local Government is appropriate, the
Local Government agrees to comply with any additional instructions provided by the Department
to the Local Government regarding such audit. The Local Government further agrees to comply
and cooperate with any inspections,reviews, investigations, or audits deemed necessary by the
Chief Financial Officer or Auditor General.
ARTICLE III - LOAN REPAYMENT ACCOUNT
3.01. LOAN DEBT SERVICE ACCOUNT.
The Local Government shall establish a Loan Debt Service Account with a Depository
and begin making Monthly Loan Deposits no later than the date set forth in Section 10.07 unless
the date is revised by amendment of this Agreement.
Beginning six months prior to each Semiannual Loan Payment, the Local Government
shall make six Monthly Loan Deposits. The first five deposits each shall be at least equal to one-
sixth of the Semiannual Loan Payment. The sixth Monthly Loan Deposit shall be at least equal
to the amount required to make the total on deposit in the Loan Debt Service Account equal to
the Semiannual Loan Payment amount,taking into consideration investment earnings credited to
the account pursuant to Section 3.02.
Any month in which the Local Government fails to make a required Monthly Loan
Deposit,the Local Government's chief financial officer shall notify the Department of such
failure. In addition,the Local Government agrees to budget,by amendment if necessary,
payment to the Department from other legally available non-ad valorem 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 LOAN DEBT SERVICE ACCOUNT MONEYS.
Moneys on deposit in the Loan Debt Service Account shall be invested pursuant to the
laws of the State of Florida. Such moneys may be pooled for investment purposes. The maturity
8
or redemption date of investments shall be not later than the date upon which such moneys may
be needed to make Semiannual Loan Payments. The investment earnings shall be credited to the
Loan Debt Service Account and applied toward the Monthly Loan Deposit requirements.
3.03. LOAN DEBT SERVICE ACCOUNT WITHDRAWALS.
The withdrawal of moneys from the Loan Debt Service Account shall be for the sole
purpose of making the Semiannual Loan Payment or for discharging the Local Government's
obligations pursuant to Section 8.01.
3.04. ASSETS HELD IN TRUST.
The assets in all 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.
ARTICLE IV-PROGRAM INFORMATION
4.01. PROJECT CHANGES.
After the Department's environmental review has been completed, the Local Government
shall promptly notify the Department, in writing, of any Project change that would require a
modification to the environmental information document.
4.02. TITLE TO PROJECT SITE.
No later than the date established by Section 10.07, the Local Government shall have an
interest in real property sufficient for the construction and location of any facility planned and
designed through Preconstruction Activities free and clear of liens and encumbrances which
would impair the usefulness of such sites for the intended use. If a limited site title certification
is accepted at that date, the Department shall establish a date for submittal of a clear site title
certification in an amendment or new agreement which provides financing for construction of
affected facilities.
4.03. RESERVED.
4.04. RESERVED.
4.05. PROHIBITION AGAINST ENCUMBRANCES.
The Local Government is prohibited from selling, leasing, or disposing of any part of the
Stormwater System which would materially reduce operational integrity or Gross Revenues so
long as this Agreement, including any amendment thereto, is in effect unless the written consent
of the Department is first secured.
9 •0.
4.06. COMPLETION MONEYS.
In addition to the proceeds of this or subsequent loans, the Local Government covenants
that it has obtained, or will obtain, sufficient moneys from other sources to complete the
Preconstruction Activities. The Local Government also covenants that if additional Loan
financing is provided for Construction Related Costs by amendment of this Agreement, it will
obtain sufficient moneys from other sources as necessary to complete the Project.
4.07. CLOSE-OUT.
The Department may conduct a fmal inspection of the Preconstruction Activities records,
or if this Agreement is amended to fund Construction Related Costs, the Department shall
conduct a final inspection of the Project records. Following the inspection, deadlines for
submitting additional disbursement requests, if any, shall be established, along with deadlines for
uncompleted Loan requirements, if any. After the Department establishes the fmal allowance to
be financed by the Loan, the amount may be adjusted by amendment. The Loan principal shall
be reduced by any excess over the amount required to pay the approved allowance costs. As a
result of such adjustment, the Semiannual Loan Payment shall be reduced accordingly, as
addressed in Section 10.05.
4.08. LOAN DISBURSEMENTS.
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 Local
Government for an allowance based on planning, engineering, and administration costs.
Requests by the Local Government for disbursements of the preconstruction funds shall
be made using the Department's disbursement request form but shall not require documentation
of actual costs incurred. Up to twenty percent of the allowance shall be disbursed after a Loan
Agreement is signed. Up to fifty percent of the allowance shall be disbursed after the planning
documentation has been completed and accepted. The remainder of the allowance shall be
disbursed after all procurement contracts are executed and shall be adjusted to reflect as-bid
costs. The Department may disburse the entire estimated allowance amount after acceptance of
the plans and specifications or completion of the request for proposals, if the Local Government
agrees to an allowance adjustment once all contracts have been bid.
Disbursements for Construction Related Costs shall occur only as a result of an
amendment to this Agreement. The following allowance amount will be disbursed after the
specified milestone events unless the allowance is reduced pursuant to Section 10.06:
Milestone Event Amount
Loan Agreement executed $ 177,638
Department acceptance of planning documents 444,095
Department acceptance of executed procurement contracts 266,457
Total $ 888,190
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ARTICLE V-RATES AND USE OF THE STORMWATER SYSTEM
5.01. RATE COVERAGE.
The Local Government shall maintain fees,rates, and charges for the services furnished
by the Stormwater System 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. In addition, the Local Government shall satisfy the coverage requirements of
all senior and parity debt obligations.
5.02. MAINTENANCE OF THE STORMWATER SYSTEM.
The Local Government shall operate and maintain the Stormwater System in a proper,
sound and economical manner and shall make all necessary repairs, renewals and replacements.
5.03. ADDITIONS AND MODIFICATIONS.
The Local Government may make any additions,modifications or improvements to the
Stormwater System which it deems desirable and which does not materially reduce the
operational integrity of any part of the Stormwater System. All such renewals, replacements,
additions,modifications and improvements shall become part of the Stormwater System.
5.04. 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 Stormwater
System for the amount of all delinquent rates, fees and other charges where such action is
permitted by law. The Local Government shall use its best efforts to shut off water service
furnished to persons who are delinquent beyond customary grace periods in the payment of
Stormwater System rates, fees and other charges.
ARTICLE VI-DEFAULTS AND REMEDIES
6.01. EVENTS OF DEFAULT.
Each of the following events is hereby declared an event of default:
(1) Failure 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 30 days.
(2) Except as provided in Subsections 6.01(1) and(7), 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 and such failure shall continue for a period of 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.
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(4) An order or decree entered,with the acquiescence of the Local Government,
appointing a receiver of any part of the Stormwater System or Gross 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 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 Gross Revenues of the
Stormwater 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 60 days after filing.
(7) Failure of the Local Government to give immediate written notice of default to the
Department and such failure shall continue for a period of 30 days.
6.02. REMEDIES.
Upon an 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 Stormwater System, 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 Stormwater System 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 Stormwater System, establish and collect fees and charges, and apply the revenues to
the reduction of the obligations under this Agreement.
(5) By certifying to the Auditor General and the Chief Financial Officer delinquency on
Loan repayments, the Department may intercept the delinquent amount plus a penalty 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. The Department
may impose a penalty in an amount not to exceed an interest rate of 18 percent per annum on the
amount due in addition to charging the cost to handle and process the debt. Penalty interest shall
accrue on any amount due and payable beginning on the 30th day following the date upon which
payment is due.
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(6) By notifying financial market credit rating agencies and potential creditors.
(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 Financing Rate on the
unpaid principal of the Loan to as much as 1.667 times the Financing Rate 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 an
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.
ARTICLE VII-THE PLEDGED 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, which along with any other Department State Revolving Fund liens on
the Pledged Revenues, on equal priority,will be prior and superior to any other lien,pledge or
assignment with the following exception. All obligations of the Local Government under this
Agreement shall be junior, inferior, and subordinate in all respects in right of payment and
security to any additional senior obligations issued with the Department's consent pursuant to
Section 7.02. 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 provided the Department's written
consent is obtained. Such consent may be granted if the Local Government demonstrates at the
time of such issuance that the Pledged Revenues, which may take into account reasonable
projections of growth of the Stormwater System and revenue increases,plus revenues to be
pledged to the additional proposed debt obligations will, during the period of time Semiannual
Loan Payments are to be made under this Agreement, equal or exceed 1.15 times the annual
combined debt service requirements of this Agreement and the obligations proposed to be issued
by the Local Government and will satisfy the coverage requirements of all other debt obligations
secured by the Pledged Revenues.
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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 entire
principal amount of the Loan, and as applicable, Loan Service Fee, interest, and Grant Allocation
Assessment charges,the pledge of, and lien on, the Pledged 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. RECORDS AND STATEMENTS.
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 time after the Local
Government has received a disbursement and until five years after the date that the Project-
specific audit report, required under Subsection 2.03(4), is issued.
8.03. ACCESS TO WORK SITE.
The Local Government shall provide access to offices and other sites where
Preconstruction Activities or Project work(if financed by this Loan) is ongoing, or has been
performed,to authorized representatives of the Department at any reasonable time. The Local
Government shall cause its engineers and contractors to provide copies of relevant records and
statements for inspection.
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, 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. A final amendment establishing the
final allowance costs financed by this Loan and the actual Loan Service Fee shall be completed
after the Department's final inspection of relevant documents and records.
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8.06. ANNULMENT OF AGREEMENT.
The Department may unilaterally annul this Agreement if the Local Government has not
drawn any of the Loan proceeds within eighteen months after the effective date of this
Agreement. If the Department unilaterally annuls this Agreement, the Department will provide
written notification to the Local Government.
8.07. 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.
8.08.USE AS MATCHING FUNDS.
The U.S. Environmental Protection Agency has provided a class deviation from the
provisions of 40 CFR 35.3125(b)(1) to allow these second tier funds to be used as local matching
requirements for most EPA grant funded treatment works projects, including special
Appropriations Act projects.
8.09. COMPLIANCE VERIFICATION.
(1) The Local Government shall periodically interview 10% of the work force entitled to
Davis-Bacon prevailing wages(covered employees)to verify that contractors or subcontractors
are paying the appropriate wage rates. Local Governments shall immediately conduct interviews
in response to an alleged violation of the prevailing wage requirements. As provided in 29 CFR
5.6(a)(5) all interviews must be conducted in confidence. The Local Government must use
Standard Form 1445 or equivalent documentation to memorialize the interviews. Copies of the
SF 1445 are available from EPA on request.
(2) The Local Government shall periodically conduct spot checks of a representative
sample of weekly payroll data to verify that contractors or subcontractors are paying the
appropriate wage rates. The Local Government shall establish and follow a spot check schedule
based on its assessment of the risks of noncompliance with Davis-Bacon posed by contractors or
subcontractors and the duration of the contract or subcontract. At a minimum, if practicable, the
subrecipient should spot check payroll data within two weeks of each contractor or
subcontractor's submission of its initial payroll data and two weeks prior to the completion date
the contract or subcontract. Local Governments must conduct more frequent spot checks if the
initial spot check or other information indicates that there is a risk that the contractor or
subcontractor is not complying with Davis-Bacon. In addition, during the examinations the Local
Government shall verify evidence of fringe benefit plans and payments thereunder by contractors
and subcontractors who claim credit for fringe benefit contributions.
(3) The Local Government shall periodically review contractors and subcontractors use
of apprentices and trainees to verify registration and certification with respect to apprenticeship
and training programs approved by either the U.S Department of Labor(DOL) or a state, as
appropriate, and that contractors and subcontractors are not using disproportionate numbers of
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laborers, trainees, and apprentices. These reviews shall be conducted in accordance with the
schedules for spot checks and interviews described in items (1) and(2)above.
(4) Local Governments must immediately report potential violations of the Davis-Bacon
prevailing wage requirements to the EPA Davis-Bacon contact Sheryl Parsons at
Parsons.Sheryl @epamail.epa.gov and to the appropriate DOL Wage and Hour District Office
listed at http://www.dol.gov/whd/america2.htm.
ARTICLE IX- RESERVED
ARTICLE X-DETAILS OF FINANCING
10.01. PRINCIPAL AMOUNT OF LOAN.
The principal amount of the Loan is$2,617,490,which includes $2,538,190 to be
disbursed to the Local Government and$79,300 of Capitalized Interest.
Capitalized Interest is not disbursed to the Local Government,but is amortized via
periodic Loan repayments to the Department as if it were actually disbursed. Capitalized Interest
is computed at the Financing Rate, or rates, 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. Capitalized Interest is estimated prior to establishment of the
schedule of actual disbursements.
10.02. LOAN SERVICE FEE.
The Loan Service Fee is estimated as$50,764 for the Loan amount authorized to date.
The fee represents two percent of the Loan amount excluding Capitalized Interest; that is,two
percent of$2,538,190. The fee shall be revised with any increase or decrease amendment. The
Loan Service Fee shall be based on actual Project costs and will be assessed in the fmal Loan
Loan Service Fee from h first available
amendment. The Local Government shall pay the oan Sery ce ee the
repayments following the fmal amendment.
Capitalized Interest is computed on the assessed Loan Service Fee at the Financing Rate,
or rates and included in the final amendment. It accrues and is compounded annually from the
final amendment date until six months before the first Semiannual Loan Payment is due. A
service fee assessed in a final amendment occurring later than six months before the first
Semiannual Loan Payment date would not accrue Capitalized Interest charges.
10.03. FINANCING RATE.
The Financing Rate on the unpaid principal of the Loan amount specified in
Section 10.01 is 2.63 percent per annum. The Financing Rate equals the sum of the interest rate
and the Grant Allocation Assessment Rate. The interest rate is 1.315 percent per annum and the
Grant Allocation Assessment rate is 1.315 percent per annum. However, if this Agreement is not
executed by the Local Government and returned to the Department before April 1, 2014, the
Financing Rate may be adjusted. A new Financing Rate shall be established for any funds
provided by amendment to this Agreement.
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10.04. LOAN TERM.
The Loan shall be repaid in 40 Semiannual Loan Payments.
10.05. REPAYMENT SCHEDULE.
The Semiannual Loan Payment shall be computed based upon the principal amount of the
Loan plus the estimated Loan Service Fee and the principle of level debt service. The
Department will deduct the Loan Service Fee and any associated interest from the first available
repayments following the final amendment. The Loan principal and Semiannual Loan Payment
amounts may be revised by amendment of the Agreement. After the final disbursement of Loan
proceeds, the Loan principal will be adjusted to reflect the actual dates and amounts of
disbursements. Accordingly,the Semiannual Loan Payment amount shall be adjusted, taking
into consideration any previous payments.
Until the principal amount of the Loan is amended,the Semiannual Loan Payment shall
be in the amount of$86,209. The interest and Grant Allocation Assessment portions of each
Semiannual Loan Payment shall be computed, using their respective rates, on the unpaid balance
of the principal amount of the Loan, which principal includes Capitalized Interest. Interest(at
the Financing Rate) shall also be computed on the unpaid balance of the estimated Loan Service
Fee. The interest and Grant Allocation Assessment on the unpaid balance shall be computed as
of the due date of each Semiannual Loan Payment.
Unless repayment is deferred by an amendment to this Agreement, Semiannual Loan
Payments shall be received by the Department beginning on February 15, 2017 and semiannually
thereafter on August 15 and February 15 of each year until all amounts due have been fully paid.
Funds transfer shall be made by electronic means.
The Semiannual Loan Payment amount is based on the total amount owed of$2,668,254,
which consists of the Loan principal plus the estimated Loan Service Fee.
10.06. PROJECT RELATED COSTS.
The Local Government and the Department acknowledge that actual Project costs and
Preconstruction Activities allowance costs have not been determined as of the effective date of
this Agreement. An adjustment to the Preconstruction Activities allowance may be made due to
a reduction in the scope of work proposed for construction or based on construction contract bid
prices. Failure to achieve Department acceptance of plans and specifications prior to the date
specified in Section 10.07 may cause adjustment of the Preconstruction allowance. Capitalized
Interest will be recalculated based on actual dates and amounts of Loan disbursements. The final
allowance amount, and Project costs if financed by this Loan, shall be established in the final
amendment. Changes in the Preconstruction Activities allowance or Project costs may also
occur as a result of the Local Government's audit or the Department's audit.
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The Local Government agrees to the following estimates of the Preconstruction Activities
g g
allowance and related costs:
Allowance 888,190
Specialized Studies 150,000
Land 1,500,000
SUBTOTAL(Disbursable Amount) 2,538,190
Capitalized Interest _ 79,300
TOTAL(Loan Principal Amount) 2,617,490
The listed allowance is based on estimated construction costs of$10,000,000, which
excludes Capitalized Interest.
10.07. SCHEDULE.
All Preconstruction Activities shall be completed no later than the completion of all
Preconstruction Activities date set forth below. Planning activities shall be completed in time to
enable the Department to accept the planning documents as scheduled in Subsection(1)below.
(1) Acceptance of the planning documents by the Department(Design Authorization)no
later than February 15,2015.
(2) Design of all Project facilities proposed for loan funding no later than
August 15, 2015.
(3) Certification of availability of all sites for facilities proposed for loan funding no
later than August 15,2015.
(4) Evidence that permitting requirements have been satisfied for all Project facilities
proposed for construction loan funding no later than February 15, 2016.
(5) Completion of all Preconstruction Activities for all Project facilities proposed for
loan funding no later than February 15, 2016.
(6) Unless deferred by amendment, establish the Loan Debt Service Account and begin
Monthly Loan Deposits no later than August 15, 2016.
(7) Unless deferred by amendment,provide certifications under Subsection 2.01(10)
beginning November 15, 2016, and annually thereafter no later than September 30 of each year
until the final Semiannual Loan Payment is made.
(8) Unless this Agreement is amended to provide construction fmancing, the first
Semiannual Loan Payment in the amount of$86,209 shall be due February 15, 2017.
•.. •.
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10.08. SPECIAL CONDITIONS.
Prior to any funds being released for the land purchase, the Department will need the
following:
(1) Acceptance of the City's planning document; and
(2) A detailed drawing showing how much of the site(s) is needed for the proposed
pond(s); and
(3) A copy of the land purchase contract agreement.
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ARTICLE XI- EXECUTION OF AGREEMENT
This Loan Agreement SW590140 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 Agreement to be executed on
its behalf by the Program Administrator 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 shall be as set forth below by the Program Administrator.
For
CITY OF S. NF I RD
diji/OIM
1�1�
Approved as to form and legal sufficiency:
Attest:
City Clerk City Attorney
SEAL
for
STATE OF FLORIDA
DEPARTMENT OF ENVIRONMENTAL PROTECTION
le AP \oucttid APR 3 2014
rogram Administrator Date
State Revolving Fund
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