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