828-Drinking Water Revolving FuJeb Bush
Governor
Environmental Protection!:i, L,,,,:,
Twin Towers O~ce Building . ~~M~ ~ ~( ._ ~
2600 Blair Stone Road David B. Struhs
Tallahassee, Florida 32399-2400 Secrm~
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
-,,~AAR'i
Mr. Anthony VanDerworp, City Manager
City of Sanford
300 North Park Avenue
Sanford, Flodda 32772-1788
Re: DW5906 010 - Sanford
Treatment & Distribution
Dear Mr. VanDerworp:
We are pleased to provide State Revolving Fund financial assistance for improving your
existing drinking water treatment and distribution system. One copy of the fully executed
loan agreement is enclosed. To draw money under the agreement, please call Sheri
Garcia at 850/488-8163 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.
Sincerely,
· Green, Ill
Secretary 'D
KBG/ak/k
Enclosure
cc: Paul R. Moore- Sanford
David A. Gierach - CPH Engineers
Richard Lott; P.E. - DEP/Central Distdct
"Protect, Conserve and Manage Rorida's Environment and Natural Resources"
Printed on recycled paper,
STATE OF FLORIDA
DEPARTMENT OF ENVIRONMENTAL PROTECTION
AND
CITY OF SANFORD, FLORIDA
DRINKING WATER STATE REVOLVING FUND
CONSTRUCTION LOAN AGREEMENT
DW5906 010
Florida Department of Environmental Protection
Bureau of Water Facilities Funding
Twin Towers Office Building
2600 Blair Stone Road, MS 3505
Tailahassee, Florida 32399-2400
DRINKING WATER STATE REVOLVING FUND CONSTRUCTION LOAN AGREEMENT
'CONTENTS
PAGE
ARTICLE I - DEFINITIONS
1.01. WORDS AND TERMS.
1.02. CORRELATIVE WORDS.
ARTICLE II - WARRANTIES, REPRESENTATIONS AND COVENANTS
2.01. WARRANTIES, REPRESENTATIONS AND COVENANTS.
2.02. LEGAL AUTHORIZATION.
ARTICLE III- LOAN REPAYMENT ACCOUNTS
3.01. LOAN DEBT SERVICE ACCOUNT.
3.02.
3.03.
3.04.
3.05.
3.06.
3.07.
3.08.
INVESTMENT OF LOAN DEBT SERVICE ACCOUNT MONEYS.
LOAN DEBT SERVICE ACCOUNT WITHDRAWALS.
LOAN REPAYMENT RESERVE ACCOUNT.
LOAN REPAYMENT RESERVE WITHDRAWALS.
RESTORATION OF LOAN REPAYMENT RESERVE ACCOUNT.
INVESTMENT OF LOAN REPAYMENT RESERVE MONEYS.
ASSETS HELD IN TRUST.
ARTICLE IV - PROJECT INFORMATION
4.01. PROJECT CHANGES.
4.02.
4.03.
4.04.
4.05.
4.06.
4.07.
4.08.
TITLE TO PROJECT SITE.
PERMITS AND APPROVALS.
ENGINEER~'NG SERVICES.
PROHIBITION AGAINST ENCUMBRANCES.
COMPLETION MONEYS.
CLOSE-OUT.
LOAN DISBURSEMENTS.
ARTICLE V - RATES AND USE OF THE WATER AND SEWER SYSTEMS
5.01. RATE COVERAGE.
5.02. NO FREE SERVICE.
5.03. MANDATORY CONNECTIONS.
5.04. NO COMPETING SERVICE.
5.05. MAINTENANCE OF THE WATER AND SEWER SYSTEMS.
5.06. ADDITIONS AND MODIFICATIONS.
5.07. COLLECTION OF REVENUES.
ARTICLE VI - DEFAULTS AND REMEDIES
6.01. EVENTS OF DEFAULT.
6.02. REMEDIES.
6.03. DELAY AND WAIVER.
ARTICLE VII - THE PLEDGED REVENUES
7.01. SUPERIORITY OF THE PLEDGE TO THE DEPARTMENT.
7.02. ADDITIONAL DEBT OBLIGATIONS.
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DRINKING WATER STATE REVOLVING FUND CONSTRUCTION LOAN AGREEMENT
CONTENTS
ARTICLE VIII - GENERAL PROVISIONS 8.01. DISCHARGE OF OBLIGATIONS.
8.02. PROJECT RECORDS AND STATEMENTS.
8.03. ACCESS TO PROJECT SITE.
8.04. ASSIGNMENT OF RIGHTS UNDER AGREEMENT.
8.05. AMENDMENT OF AGREEMENT.
8.06. ANNULMENT OF AGREEMENT.
8.07. SEVERABILITY CLAUSE.
ARTICLE IX - CONSTRUCTION CONTRACTS AND INSURANCE
9.01. AUTHORIZATION TO AWARD CONSTRUCTION CONTRACTS.
9.02. SUBMI'FFAL OF CONSTRUCTION CONTRACT DOCUMENTS.
9.03. INSURANCE REQUIRED.
ARTICLE X - DETAILS OF FINANCING
10.01. PRINCIPAL AMOUNT OF LOAN.
10.02. LOAN SERVICE FEE.
10.03. INTEREST RATE.
10.04. LOAN TERM.
10.05. REPAYMENT SCHEDULE.
10.06. PROJECT COSTS.
10.07. PROJECT SCHEDULE.
ARTICLE XI - EXECUTION OF AGREEMENT
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DRINKING WATER STATE REVOLVING FUND
CONSTRUCTION LOAN AGREEMENT
DW5906 010
THIS AGREEMENT is executed by the STATE OF FLORIDA DEPARTMENT OF
ENVIRONMENTAL PROTECTION (Department) and the CITY OF SANFORD, FLORIDA, (Project
Sponsor) existing as a local governmental agency under the laws of the State of Florida.
WITNESSETH:
WHEREAS, pursuant to Section 403.8532, Florida Statutes, the Department is authorized to make loans
to finance or refmance the construction of public water systems, the planning and design of which have
been reviewed by the Department; and
WHEREAS, the Project Sponsor has made application for the icing 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 Project Sponsor, 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 construction loan agreement.
(2) "Authorized Representative" shall mean the official of the Project Sponsor authorized by
ordinance or resolution to sign documents associated with the Loan.
(3) "Capitalized Interest" shall mean interest accruing on a loan before the 20-year repayment
period begins and it is financed as part of the Loan principal.
(4) "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.
(5) "Gross Revenues" shall mean all income or earnings received by the Project Sponsor from the
ownership or operation of its Water and Sewer Systems, 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 Water or Sewer System, condemnation awards or proceeds
of insurance, except use and occupancy or business interruption insurance, received with respect to the
Water or Sewer System.
(6) "Loan" shall mean the amount of money to be loan~cl pursuant to this Agreement and
subsequent amendments.
(7) "Loan Application" shall mean th8 completed form which provides all information r~cluired to
support obtaining construction loan financial assistance.
(8) "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 Project Sponsor for the purpose of
accumulating Monthly Loan Deposits and making Semiannual Loan Payments.
(9) "Loan Repayment Reserve Account" or "Loan Repayment Reserve" shah mean the account
into which will be deposited the amount set aside to pay temporary and unexpected deficiencies, if any, in
the Semiannual Loan Payment.
(10) "Loan Service Fee" shall mean an origination fee which shall be paid to the Department by
the Project Sponsor.
(11) "Monthly Loan Deposit" shall mean the monthly deposit to be made by the Project Sponsor to
the Loan Debt Service 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 Gross Revenues, depreciation, and any other items not requiting the
expenditure of cash.
(13 ) "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 Water and Sewer Systems
after payment of the Operation and Maintenance Expense and the satisfaction of all yearly payment
obligations on account of the Senior Revenue Obligations and any senior obligations issued pursuant to
Section 7.02 of this Agreement.
(14) "Project" shall mean the works financed by this Loan and shall consist of furnishing all labor,
materials, and equipment to construct the drinking water system improvements in accordance with the plans
and specifications accepted by the Department for the following contracts:
(a) East Lake Mary Boulevard/Silver Lake Drive Utility Construction (Segment II, Airport
Entrance Road to SR 46).
Co) Airport Boulevard Phase IIB Utility Relocations.
(c) Old Lake Mary Road Water Main Extension.
(d) Marquette Avenue Utility Construction.
(e) Lake'Mary Boulevard Phase III Utility Construction (US 17-92 to South Sanford Avenue).
(f) East Lake Mary Boulevard/Silver Lake Drive Utility Construction (Segment 1, Sanford
Avenue to Airport Entrance Road).
(g) Jewett Lane Water Main Extension.
(h) SR 46 Phase II Water Main Extension.
(i) Westerly Water Main Extension.
(j ) CR 46A Utility Rclocation (Oregon Avenue to Up sala Road).
(k) Utility Relocations CR 46A (25~ Street) (Upsala Road to East of Old Lake Map/Road).
(1) Sanford Main & Auxiliary Water Treatment Plants Chlorine Handling Facilities
Improvements.
The Project is in agreement with the City of Sanford Water Facilities Plan, dated September 1998.
Approval of this Project is provided by the Florida Categorical Exclusion Notification dated March 12,
1999. The Project is an Equivalency Project as defined in Chapter 62-552, Florida Administrative Cede.
. (15) "Semiannual Loan Payment" shall mean the payment due from the Project Sponsor to the
Department at six-month intervals, and it is comprised of principal and interest. In addition, the Loan
Service Fee and all associated interest are deducted from the first two payments.
(16) "Senior Revenue Obligations" shah mean the following debt obligations:
(a) City of Sanford, Florida, Water and Sewer System Refunding Revenue Bonds, Series 1992,
issued in the mount of $17,000,000, pursuant to Resolution No. 1623; and
(b) City of Sanford, Florida, Water and Sewer System Refunding Revenue Bonds, Series 1993,
issued in the mount of $25,605,000, pursuant to Resolution No. 1668, as mended and supplemented; and
(c) Additional bonds issued on a parity with the obligations identified above pursuant to
Section 18 of Resolution No. 1423; and
(d) Any refunding bonds issued to retired the obligations identified above provided such bonds
shall not increase annual debt service during the repayment period of this Loan.
(17) "Sewer System" shall mean all facilities owned by the Project Sponsor for collection,
transmission, treatment and reuse of wastewater and its residuals.
(18) 'W~rater System" shall mean all facilities owned by the Project Sponsor for supplying and
distributing water for residential, commercial, industrial, and governmental use.
1 .O2. 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 Project Sponsor warrants, represents and covenants that:
( 1 ) The Project Sponsor has full power and authority to enter into this Agreement and to comply
with the provisions hereof.
(2) The Project Sponsor 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 Project Sponsor's knowledge, threatened,
which seeks to restrain or enjoin the Project Sponsor from entering into or complying with this Agreement.
(4) 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 Project Sponsor knows of no reason why
any future required permits or approvals are not obtainable.
(5) The Project Sponsor shall undertake the Project on its own responsibility, to the extent
permitted by law.
(6) To the extent permitted by law, the Project Sponsor shall release and hold harmless the State,
its officers, members, and employees from any claim arising in connection with the Project Sponsor's
actions or omissions in its planning, engineering, administrative, and construction activities financed by this
Loan or its operation of the Project.
(7) All Project Sponsor 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 Project Sponsor to the Department was current and correct as of the date such
information was delivered. The Project Sponsor shall comply with Chapter 62-552, Florida Administrative
Code, and all applicable State and Federal laws, rules, and regulations which are identified in the Loan
Application or Agreement. Minority and Women' s Business Enterprise goals as stated in the plans and
specifications apply to this Project. To the extent that any assurance, representation, or covenant requires a
future action, the Project Sponsor shall take such action as is necessary for compliance.
(8) The Project Sponsor shall maintain records using Generally Accepted Governmental
Accounting Principles established by the Governmental Accounting Standards Board. As part of its
bookkeeping system, the Project Sponsor shall keep accounts of the Water and Sewer Systems separate
from all other accounts and it shall keep accurate records of all revenues, expenses, and expenditures
relating to the Water and Sewer Systems, and of the Pledged Revenues, Loan disbursement receipts, Loan
Debt Sendee Account, and Loan Repayment Reserve Account.
(9) In the event the anticipated Pledged Revenues are shown by the Project Sponsor's annual
budget to be insufficient to make the Semiannual Loan Payments for such Fiscal Year when due, the
Project Sponsor 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 Project. Sponsor shall collect such funds for application as provided herein. The
Project Sponsor shall notify the Department immediately in writing of any such budgeting of other legally
available funds. Nothing in this covenant shall be construed as creating a pledge, lien, or charge upon any
such other legally available funds; requiting the Project Sponsor to levy or appropriate ad valorem tax
revenues; or preventing the Project Sponsor from pledging to the payment of any bonds or other obligations
all or any part of such other legally available funds.
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(10) Beginning with the Fiscal Year in which the Loan Agreement is executed and continuing for
each year thereafter until the Loan is retired, the Project Sponsor shall submit annual audit reports to the
Department. The audits shall be conducted under the Office of Management and Budget Circular A-133 if
applicable based on the expenditure mount of Loan proceeds. If an audit under Circular A- 133 is not
applicable, the audit shall be conducted under Section 11.45, Florida Statutes. Regardless of which type of
audit is conducted, such audits shall address at a minimum the Project Sponsor' s financial condition,
accounts of the Water and Sewer Systems or other sources generaling the Pledged Revenues, Loan
disbursements received and Project expenditures (ff any), and compliance with the Loan Agreement
covenants. Beginning with the Fiscal Year of the first Semiannual Loan Payment, the scope of audits shall
encompass the Loan Debt Service Account and Loan Repayment Reserve Account. The Project Sponsor
shall cause its auditor to notify the Department immediately if anything comes to the anditor's attention
during the annual examination of the Project Sponsor's records that would constitute a default under the
Loan Agreement.
(11) Within 12 months of the amendment establishing final Project costs, the Project Sponsor shall
submit to the Department a separate audit, by an independent certified public accountant, of the Project
revenues, including receipt of disbursements under financial assistance agreements, and expenditures. The
audit shall be conducted in accordance with "Government Auditing Standards" issued by the Comptroller
General of the United States. The audit shall address whether the Project Sponsor complied with
requirements set forth in the Loan Agreement, including applicable State and Federal laws and regulations
referenced in Subsection (7) above. The audit findings shall set aside or question any costs that are
unallowable under Chapter 62-552, Florida Administrative Cede. A final determination of the allowability
of such costs shall be made by the Department.
(12) 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 Project Sponsor's Authorized
Representative or its chief financial officer shall submit, pursuant to the schedule established in
Section 10.07, a certification that: (a) Pledged Revenue collections satisfy the rate coverage requirement;
(b) the Loan Debt Service Account contains the funds required; (c) the Loan Repayment Reserve Account
contains the funds required; and (d) insurance in effect for the facilities generating the Pledged Revenues
adequately covers the customary risks to the extent that such insurance is available.
(13) Pursuant to Section 216.349 of the Florida Statutes, the Project Sponsor shall not use the
Loan proceeds for the purpose of lobbying the Florida Legislature, the Judicial Branch, or a State agency.
(14) The Project Sponsor agrees to construct the Project in accordance with the Project schedule.
Delays incident to strikes, rrots, acts of God, and other events beyond the reasonable control of the Project
Sponsor are excepted. If for any reason construction is not completed as scheduled, there shall be no
resulting diminution or delay in the Semiannual Loan Payment or the Monthly Loan Deposit or ~mding of
the Loan Repayment Reserve Account.
(15) The Project Sponsor 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
Project Sponsor covenants that it will, under all conditions, complete and operate the Project to fulfill the
public need.
2.02. LEGAL AUTHORIZATION.
Upon signing this Agreement, the Project Sponsor' s legal counsel covenants that:
( 1 ) This Agreement has been duly authorized by the Project Sponsor and shah constitute a valid
and legal obligation of the Project Sponsor in accordance with its tees 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.
ARTICLE III - LOAN REPAYMENT ACCOUNTS
3.01. LOAN DEBT SERVICE ACCOUNT.
The Project Sponsor shall establish a Loan Debt Service Account with a Depository and begin
making Monthly Loan Deposits no later than the date set forth for such action in Section 10.07 of this
Agreement.
Beginning six months prior to each Semiannual Loan Payment, the Project Sponsor 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 mount required to make the
total on deposit in the Loan Debt Service Account equal to the Semiannual Loan Payment mount, taking
into consideration investment earnings credited to the account pursuant to Section 3.02.
Any month in which the Project Sponsor fails to make a required Monthly Loan Deposit, the
Project Sponsor' s chief financial officer shall notify the Department of such failure. In addition, the
Project Sponsor 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 shah
not be construed to give superiority to the Department's claim on any revenues over prior claims of general
creditors of the Project Sponsor, nor shall it be construed to give the Department the power to require the
Project Sponsor 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 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 Project Sponsor' s obligations pursuant to
Section 8.01.
3.04. LOAN REPAYMENT RESERVE ACCOUNT.
A Loan Repayment Reserve Account shall be established with a Depository. The Project Sponsor
shall deposit into the account the reserve amount identified in Section 10.07 of this Agreement by the date
set forth therein.
3.05. LOAN REPAYMENT RESERVE WITHDRAWALS.
The Loan Repayment Reserve Account shall be used by the Project Sponsor to cure a temporary
and unexpected deficiency in any Semiannual Loan Payment. The Project Sponsor' s chief fmancial officer
shall promptly notify the Department upon any withdrawal from the account. Any unused portion of the
Loan Repayment Reserve Account shall be applied to the final Semiannual Loan Payment(s) or for
discharging the Project Sponsor's obligations pursuant to Section 8.0 1.
3.06. RESTORATION OF LOAN REPAYMENT RESERVE ACCOUNT.
A default causing the Project Sponsor to use the Loan Repayment Reserve Account or the use of
the account to prevent default shall result in the Project Sponsor being responsible for making special
deposits to restore the account. Special restoration deposits shall be made from the first moneys legally
available to the Project Sponsor for such purpose.
3.07. INVESTMENT OF LOAN REPAYMENT RESERVE MONEYS.
Moneys on deposit in the Loan Repayment Reserve Account shall be invested pursuant to the laws
of the State of Florida. Such moneys may be pooled for investment purposes. The maturity or redemption
date of investments shall be not later than the date set for the final Semiannual Loan Payment provided,
however, that moneys must be available for withdrawal, if necessary, pursuant to Section 3.05 of this
Agreement. All investment income and earnings shall be credited to the Loan Repayment Reserve Account.
3.08. ASSETS HELD IN TRUST.
The assets in 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.
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 Project Sponsor shall submit all adclenda
and all change orders to the Department. Any change order which increases the contract amount by more
than one hundred thousand dollars ($100,000) or which alters the approved Project scope or which
involves a procurement method that is not consistent with the approved method or which involves deletion
or substantive modification of any requirement of Chapter 62-552, Florida Administrative Code, requires
an eligibility determination by the Department.
4.02. TITLE TO PROJECT SITE.
The Project Sponsor 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 use~~ness of such
sites for the intended use.
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4.03. PERMITS AND APPROVALS.
The Project Sponsor shall have obtained, prior to the Department's authorization to award
construction contracts, all permits and approvals required for construction of the Project or portion of the
Project funded under this Agreement.
4.04. ENGINEERING SERVICES.
A professional engineer, registered in the State of Florida, shall be employed by, or under contract
with, the Project Sponsor to oversee construction.
4.05. PROHIBITION AGAINST ENCUMBRANCES.
The Project Sponsor is prohibited from selling, leasing, or disposing of any part of the Water or
Sewer System which would materially reduce operational integrity or Gross Revenues so long as this
Agreement, including any amendments thereto, 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 Project Sponsor covenants that it has obtained, or will
obtain, sufficient moneys from other sources to complete cometion and place the Project in operation on,
or prior to, the date specified in Article X. Failure of the Department to approve additional icing shall
not constitute a waiver of the Project Sponsor's covenants to complete and place the Project in operation.
4.07. CLOSE-OUT.
The Department shall conduct a final inspection of the Project and 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. Deadlines shall be incorporated into the Loan
Agreement by amendment. The Loan principal shall be reduced by any excess over the amount required to
pay all approved 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 Comptroller 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, reimbursement of the incurred construction costs and related services, and
establishing a Loan Repayment Reserve Account. Disbursement of the allowances shall be made upon the
Department' s receipt of a disbursement request form. Disbursements for materials, labor, or services shall
be made upon receipt of the following:
( 1 ) A completed disbursement request form 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 work; 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
Project; that the materials, labor, or services represented by the invoice have been satisfactorily purchased,
performed, or 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 Project Sponsor is
required to make such payments.
(3) A certification by the engineer responsible for overseeing cometion 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 provisions; 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, attomeys, accountants, contractors, or
suppliers as may reasonably be required by the Department.
ARTICLE V - RATES AND USE OF THE WATER AND SEWER SYSTEMS
5.01. RATE COVERAGE.
The Project Sponsor 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. In addition, the
Project Sponsor shall satisfy the coverage requirements of all senior and parity debt obligations.
5.02. NO FREE SERVICE.
The Project Sponsor shall not permit connections to, or furnish any services afforded by, the Water
or Sewer System without making a charge therefor based on the Project Sponsor's uniform schedule of
rates, fees, and charges.
5.03. MANDATORY CONNECTIONS.
The Project Sponsor 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 Sewer System to connect such building to the Sewer System.
5.04. NO COMPETING SERVICE.
The Project Sponsor shall not allow any person to provide any services which would compete with
the Water or Sewer System so as to adversely affect Gross Revenues.
5.05. MAINTENANCE OF THE WATER AND SEWER SYSTEMS.
The Project Sponsor 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 Project Sponsor may make any additions, modifications or improvements to the Water and
Sewer Systems which it deems desirable and which do not materially 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.
5.07. COLLECTION OF REVENUES.
The Project Sponsor shall use its best efforts to collect all rates, fees and other charges due to it.
The Project Sponsor 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 Project Sponsor
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 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 fund the Loan Repayment Reserve Account 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 30 days.
(2) Except as provided in Subsections 6.01(1) and 6.01(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 shah continue for a period of 60 days after written notice thereof to the
Project Sponsor by the Department.
(3) Any warraB. ty, representation or other statement by, or on behalf of, the Project Sponsor
contained in this Agreement or in any information fumished 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 Project Sponsor, appointing a
receiver of any part of the Water or Sewer System or Gross Revenues thereof; or if such order or decree,
having been entered without the consent or acquiescence of the Project Sponsor, 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 Project Sponsor, for the purpose of
effecting a composition between the Project Sponsor 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 Water or Sewer System.
(6) Any bankruptcy, insolvency or other similar proceeding instituted by, or against, the Project
Sponsor under federal or state bankruptcy or insolvency law now or hereafter in effect and, if instituted
against the Project Sponsor, is not dismissed within 60 days after filing.
10
(7) Failure of the Project Sponsor 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 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 Project Sponsor to fulfill this
Agreement.
(2) By action or suit in equity, require the Project Sponsor to account for all moneys received
from the Depaxtment or from the ownership of the Water and Sewer 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
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 Auditor General and the Comptroller delinquency on loan repayments, the
Department may intercept the delinquent mount plus six percent, expressed as an annual interest rate,
penalty of the amount due to the Depar~ent from any unobligated funds due to the Project Sponsor 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 30th day
following the date upon which payment is due.
(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 interest rate on the unpaid principal
of the Loan to as much as 1.667 times the Loan interest 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 event of
default shall impair any such fight 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 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 prior and superior to any other lien, pledge or assignment with the following exception.
All obligations of the Project Sponsor under this Agreement shall be junior, inferior, and subordinate in all
respects in fight of payment and security to the Senior Revenue Obligations defined in Section 1.01 of this
Agreement and 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 senrice coming due in each Fiscal Year under the terms of this Agreement.
7.02. ADDITIONAL DEBT OBLIGATIONS.
The Project Sponsor 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 shall be granted if the Project Sponsor demonstrates at the time of such issuance that the Pledged
Revenues, which may take into account reasonable projections of growth of the Water and Sewer Systems
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, of any other State Revolving Fund
loans secured by the Pledged Revenues, and of the obligations proposed to be issued by the Project
Sponsor. However, no such consent is required with respect to issuance of Senior Revenue Obligations as
defined in Section 1.01.
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 succeetling 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 Project Sponsor shall have paid, or shall have made
provision for the timely payment of, the entire principal amount of the Loan and interest, 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. PROJECT 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 Project Sponsor has received a
disbursement and before three years have elapsed after the Department's final Project disbursement to the
Project Sponsor.
12
8.03. ACCESS TO PROJECT SITE.
The Project Sponsor shall provide access to Project sites and administrative offices to authorized
representatives of the Department at any reasonable time. The Project Sponsor 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
Project Sponsor. The Project Sponsor 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 after all
cen~'truction contracts are executed to re-establish the Project cost, Loan amount, Project schedule, and
Semiannual Loan Payment amount. A final amendment establishing the final Project costs shall be
completed after the Department's final inspection of the Project records.
8.06. ANNULMENT OF AGREEMENT.
The Department may unilatcrally annul this Agreement if the Project Sponsor has not dram 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 Project Sponsor.
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.
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:
Proof of advertising.
Award recommendation, bid proposal, and bid tabulation (certified by the responsible
(1)
(2)
engineer).
(3)
(4)
Certified copy of the Project Sponsor's tentative award resolution.
Certification of compliance with the conditions of the Department's approval of competitively
or non-eompetitively negotiated procurement, if applicable.
13
(5) Certification by the Authorized Representative that affirmative steps were taken to encourage
Minority and Women' s Business Enterprises participation in Project construction.
(6) Current certifications for Minority and Women's Business Enterprises participating in the
contract. If the goals as stated in the plans and specifications arc not met, documentation of actions taken
shall be submitted.
9.02. SUBMITTAL OF CONSTRUCTION CONTRACT DOCUMENTS.
After the Depaxtment's authorization to award construction contracts has been received, the Project
Sponsor shall submit contractor insurance certifications and notices to proceed with construction.
9.03. INSURANCE REQUIRED.
The Project Sponsor 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 (hereat~er 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 damage and destruction risks as are customary for the
operation of Revenue Producing Facilities of like size, type and location to the extent such insurance is
obtainable from time to time against any one or more of such risks.
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 Project Sponsor shall provide additional funds to restore or
replace the damaged portions of the facilities. Repair, construction or replacement shall be promptly
completed.
ARTICLE X - DETAILS OF FINANCING
10.01. PRINCIPAL AMOUNT OF LOAN.
The estimated principal amount of the Loan is $7,347,200, which consists of $7,000,000 to be
disbursed to the Project Sponsor and $347,200 of Capitalized Interest.
Capitalized interest is not disbursed to the Project Sponsor, but is amortized via periodic loan
repayments to the Department as if it were actually disbursed. Capitalized interest is computed at the
interest rote, 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 establishing the schedule of actual disbursements.
This project is a Segmented Project. Additional State Revolving Fund financing for the Project is
dependent upon the availability of additional funds. The current funding limitations and future funding
priority entitlement for Segmented Projects are set forth in the Chapter 62-552 of the Florida
Administrative Code.
10.02. LOAN SERVICE FEE.
The Loan Service Fee is $135,922 forthe Loan amount authorized to date. The fee represents two
percent of the Loan amount excluding the Loan Repayment Reserve and Capitalized Interest amounts; that
14
is, two percent of $6,796,117. An additional Loan Service Fee amount will be assessed for any additional
funding provided by amendment to this Agreement. The fee shall be adjusted downward if adjustment of
Project costs results in a Loan decrease, provided that the decrease amendment is executed before the first
Semiannual Loan Payment due date.
Interest shall accrue on the Loan Service Fee at the rate, or rates, set for the Loan until the fee is
paid. Loan Service Fee interest shall be compounded annually from the effective date of the Loan until six
months before the first Semiannual Loan Payment is due at which time it is capitalized. The estimated
capitalized Loan Service Fee interest is $13,930.
10.03. INTEREST RATE.
The rate of interest on the unpaid principal of the Loan amount specified in Section 10.01 is
3.55 percent per annum; however, if this Agreement is not executed by the Project Sponsor and returned to
the Department before April 1, 2000, the interest rate may be adjusted. A separate interest rate shall be
established for any additional funds provided by amendment to this Agreement.
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 Loan Service Fee and capitalized Loan Service Fee interest and the principle of level debt Service.
The Department will deduct the Loan Service Fee and all associated interest from the first two payments.
The Semiannual Loan Payment amount may be adjusted, by amendment of this Agreement, based upon
revised information. ARer the final disbursement of Loan proceeds, the Semiannual Loan Payment shall be
based upon the actual Project costs and actual dates and amounts of disbursements, taking into
consideration any previous payments. Actual Project costs shall be established after the Department's
inspection of the completed Project and associated records.
Each Semiannual Loan Payment shall be in the amount of $263,362 until the payment amount is
adjusted by amendment. The interest portion of each Semiannual Loan Payment shall be computed on the
unpaid balance of the principal amount of the Loan, including Capitalized hterest. Interest also shall be
computed on the unpaid balance of the Loan Service Fee and capitalized Loan Service Fee interest.
Interest shall be computed as of the due date of each Semiannual Loan Payment.
Semiannual Loan Payments shall be received by the Department beginning on June 15, 2003 and
semiannually thereafter on December 15 and June 15 of each year until all amounts due hereunder 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 $7,497,052, which
consists of the Loan principal plus the Loan Service Fee with its capitalized interest.
10.06. PROJECT COSTS.
The Project Sponsor and the Department acknowledge that the actual Project costs have not been
determined as of the effective date of this Agreement. Project cost adjustments may be made as a result of
construction bidding or mutually agreed upon Project changes. An additional Loan Repayment Reserve
15
Account deposit will be required for any additional funding provided by amendment to this Agreement.
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
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. The Project Sponsor agrees to the following
esfnnates of Project costs:
PROJECT COSTS
CATEGORY
( 1 ) Administrative Allowance
(2) Engineering Allowance
(3) Construction and Demolition
(4) Contingencies
(5) Technical Services During Construction
(6) Start-up
SUBTOTAL
(7) Loan Repayment Reserve *
SUBTOTAL (Disbursable Amount)
(8) Capitalized Interest
TOTAL (Loan Principal Amount)
AUTHORIZED LOAN
COST(S) AMOUNT(S) TO DATE
43,929
468,575 Line items
6,236,328 may vary
623,606 based on
436,543 actual
25,000 disbursements
7,833,981 6,796,117
235,019 203,883
8,069,000 7,000,000
347,200 347,200
8,416,200 7,347,200
* The Loan Repayment Reserve represents three percent of the Loan amount excluding the Capitalized
Interest and Loan Repayment Reserve amounts; three percent of $6,796,117 equals $203,883 for the
Loan amount authorized to date.
10.07. PROJECT SCHEDULE.
The Project Sponsor agrees by execution hereof:
(1) Initiation of Project construction is scheduled for March 15, 2000.
(2) Completion of Project construction is scheduled for December 15, 2002.
(3) The Loan Repayment Reserve AcCount shall be established and $203,883 shall be deposited
no later than December 15, 2002.
(4) The Loan Debt Service Account shall be established and Monthly Loan Deposits shall begin
no later than December 15, 2002.
(5) The initial annual certification required under Subsection 2.01 (12) of this Agreement shall be
due March 15, 2003. Thereafter, until the final Semiannual Loan Repayment is made, the certification
shall be submitted each year at the time the annual audit report is submitted under Subsection 2.01(10).
(6) The first Semiannual Loan Payment in the amount of $263,362 shall be due June 15, 2003.
16
ARTICLE XI - EXECUTION OF AGREEMENT
This Loan Agreement DW5906 010 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.
1N WITNESS WHEREOF, the Department has caused this Agreement to be executed on its behalf
by the Secretary of the Department and the Project Sponsor 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 Secretary of the Department.
fOr
CITY OF SA RD
Ci anager
Attest:
I attest to the covenants of Section 2.02, entitled
Legal Authorization, and as to form and legal
sufficiency.
City Attorney
SEAL
fOr
STATE OF FLORIDA
DEPARTMENT OF ENVIRONMENTAL PROTECTION
Date
17
Jeb Bush
Governor
Department of
Environmental Protection
Twin Towers Office Building
2600 Blair Stone Road
Tallahassee, Florida 32399-2400
David B. Struhs
Secretary
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
JUN"2
Mr. Anthony VanDerworp, City Manager
City of Sanford
Post Office Box 1788
Sanford, Florida 32772 - 1788
Re: DW5906 010 - Sanford
Treatment & Distribution
Dear Mr. VanDerworp:
We are pleased to provide additional financing under the State Revolving Fund loan
program for improving your existing drinking water treatment and distribution system.
Enclosed is one copy of Amendment 1 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 Leesia Koutz at 850/488-8163, or
write to Ms. Koutz, Mail Station 3505, at the letterhead address.
Sincerely,
Kir Green, III
ecretary
KBG/Ik/k
Enclosure
cc: David A. Gierach - Conklin, Porter, and Holmes Engineers, Inc.
Richard Lott, P.E.- DEP/Central District
"More Protection, Less Process"
Printed on recyded paper.
DRINKING WATER S~I; .~, TE REVOLVING FUND
AMENDMENT I TO LOAN AbT.-REEMENT DW5906 010
crrY OF SANF~9.RD
This amendment is executed by the STATE OF FLORIDA DEPART1V/ENT OF ENVIRONMENTAL
PROTECTION (Department) and the CITY O~: SANFORD, Fq~ORIDA, (Fi'~,.;ect 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 DW5906 010, authorizing a Loan amount of $7,000,000, excluding
Capitalized Interest; and
WHEREAS, the Project Sponsor is entitled to additional financing of $1,069,030, 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 Loan Repayment Reserve Account deposit and the Semiannual Loan Payment amount
need revision to reflect adjustment in the Loan amount; and
NOW, THEREFORE, the parties hemto agree as follows:
1. Additional financing in the amount of $1,069,030, excluding Capitalized Interest, is hereby
awarded to the Project Sponsor.
2. An interest rate of 3.57 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 July 1, 2000, the interest rate may be adjusted.
3. The estimated principal amount of the Loan is hereby revised to $8.463,930. which consists
of $8,069,030 authorized for disbursement to the Project Sponsor and $394,900 of Capitalized Interest.
This total consists of the following:
(a) $7,347.200, including $7,000.000 authorized for disbursement to the Project Sponsor and
$347,200 of Capitalized Interest, at an interest rate of 3.55 percent per annum; and
(b) $1,116,730, including $1,069,030 authorized for disbursement to the Project Sponsor and
$47,700 of Capitalized Interest, at an interest rate of 3.57 percent per annum; and
4. An additional Loan Service Fee in the amount of $20,758, for a total of $156.680, is hereby
assessed. The estimated capitalized Loan Service Fee interest is revised to $15,840.
5. The Semiannual Loan Payment amount is hereby revised and shall be in the amount of
$303,459. Such payments shall be received by the Department on June 15, 2003 and semiannually
thereafter on December 15 and June 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 amosant owed of $8,636,450, which
consists of the Loan principal plus the Loan Service Fee with its capitalized interest (if any).
6. The Project Sponsor and the Department acknowledge that the actual cost of the Project has
not been determined. Project cost adjustments may be made as a result o5 construction bidding or
mutually agreed upon Project changes. An additional Loan Repayment Reserve deposit amount will be
required for any additional financing. Capitalized Interest will be recalcr-lated based on actual dates and
amounts of Loan disbursements. If.the Project Sponsor receives other governmental financial assistance
for this Project, the costs funded by such other governmental assistance will not be financed by this
Loan. The Department shall establish the final Project costs after its final inspection of the Project
records. Changes in Project costs .may also occur as a result of the Project Sponsor's Project audit or a
Department audit.
Funds disbursed in accordance with Section 4.08 of this Agreement shall be disbursed in the
order in which they have been obligated without respect to budgetary line item estimates. All
disbursements shall be made from the original Loan amount until that arr_ount has been disbursed; the
interest rate established for the original Loan amount shall apply to such disbursements for the purpose of
determining the associated Capitalized Interest and repayment amount. The interest rate established for
any additional increment of Loan financing shall be used to determine the Capitalized Interest and
repayment amount associated with the funds disbursed from that increment.
The estimated Project costs are revised as follows:
CATEGORY
( 1 ) Administrative Allowance
(2) Engineering Allowance
(3) Construction and Demolition
(4) Contingencies
(5) Technical Services During Construction
(6) Start-up
SUBTOTAL
(7) Loan Repayment Reserve (Loan Proceeds) *
SUBTOTAL (Disbursable Amount)
(8) Capitalized Interest
TOTAL (Loan Principal Amount)
AUTHORIZED
LOAN ($)
43,929
468,576
6,236,328
623,634
436,543
25,000
7,834,010
235,020
8,069,030
394,900
8,463,930
* Loan proceeds for deposit in the Loan Repayment Reserve Account represent three percent of the
Loan amount excluding the Loan Repayment Reserve (Loan proceeds) and Capitalized Interest
amounts; three percent of $7,834,010 is $235,020 for the Loan amount authorized to date.
7. The amount to be deposited in the Loan Repayment Reserve Account as scheduled in Section
10.07 of the Loan Agreement is hereby revised; an additional $31,137 shall be deposited for a total
deposit requirement of $235,020. The Project Sponsor shall deposit the total amount into the Loan
Repayment Reserve Account no later than December 15, 2002. Loan proceeds are authorized for this
purpose.
This Amendment 1 to Loan Agreement DW5906 010 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 Secretary of the Department 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 Secretary of the Department.
for
Attest
I attest that this amendment complies with
Section 2.02 of the original Loan Agreement
, , /
City Attorney
for
STATE OF FLORIDA
DEPARTMENT OF ENVIRONMENTAL PROTECTION
Secretary
JUN -.:8 ?0o0
Date