Fort Walton Beach Council agenda — 01-08-13--regular — reading text

Exhibit I' D" Existing Land Use Sound Side Apartment Homes City of Fort Walton Beach Community Development Services 0 200 400 Feet Scale N W4E 7 s Prepared City Fort Walton Beach Engineering neering Division Legend 111111 1 City Limits EXISTING LAND USE COMMERCIAL O EDUCATIONAL INDUSTRIAL LOW DENSITY RES. LOW MEDIUM DENSITY RES. MEDIUM DENSITY RES. MIXED USE OFFICE PUBLIC LAND A SLDGS. O PARKING O RECREATIONAL RELIGIOUS TRANSIENT LODGING UTILITIES O VACANT  14.2 City Council of Fort Walton Beach CITY COUNCIL MEMORANDUM To: Michael D. Beedie, City Manager From: Michael Beedie, City Manager Date: January 8, 2013 Subject: SRF Loan Agreement for Pump Station No. 1 Projects 1. 1. 1. On May 22, 2012, City Council authorized the submittal of the Clean Water State Revolving Fund ( SRF) Loan Application and accompanying planning documents to the Florida Department of Environmental Protection ( FDEP) for the Pump Station No. 1 projects via Resolution 2012 -7. 1. 2. As part of Resolution 2012 -7, City Council designated the City Manager as the authorized agent on behalf of the City to execute any and all other necessary instruments in connection with obtaining the SRF loan for this project. 2. DISCUSSION: 2. 1. On November 30, 2012, the City received the cover letter from FDEP stating that the SRF loan agreement was enclosed for execution within three ( 3) weeks. However, the actual SRF loan agreement was not received until December 5, 2012. 2. 2. Because there was not a second City Council meeting in December, Staff requested an extension of the deadline for return of the executed SRF loan agreement until January 11, 2013. This extension was granted by FDEP. 3. FINANCIAL INFORMATION: 3. 1. The SRF loan agreement approves funding in the amount of $19, 054,447 for both the Pump Station renovations and the force main project. The interest rate for the SRF loan is 1. 90% with semi- annual payments over 20 years. 3. 1. 1. This amount reflected the engineer' s estimate submitted with the SRF loan application in May 2012. Since the submittal of the SRF loan application, the City has received bids for both projects and executed an interlocal agreement with Okaloosa County to share costs in the northern portion of the force main. 3. 2. Based on a cash flow analysis prepared by Hatch Mott MacDonald, the latest project estimate, which includes the actual bid prices for both projects and the construction administration fees, is $ 16, 110, 000. 3. 2. 1. This estimate does not include contingencies, the estimated $ 1, 500,000 payment from Okaloosa County, or the use of the remaining 2005 Utility Bond proceeds estimated at $ 2, 300, 000) to lower the actual loan amount. 3. 3. Including the payment from Okaloosa County and the 2005 Utility Bond Proceeds, the Packet Pg. 87  14. 2 City Council of Fort Walton Beach CITY COUNCIL MEMORANDUM To: Michael D. Beedie, City Manager From: Michael Beedie, City Manager Date: January 8, 2013 Subject: SRF Loan Agreement for Pump Station No. 1 Projects estimated total amount of the loan ( minus the loan service fees) is $ 13, 115, 500. Please note that the actual loan amount will be finalized upon completion of the construction, and the City will only be required to pay back the actual amount borrowed. 3. 4. Under the City' s current Water & Wastewater Utility Rate Study, a rate increase of 3% per year is programmed into the Comprehensive Fee Schedule through FY 2013 -14. Based on the latest estimates for the Pump Station No. 1 projects and in order to meet the debt service requirements of the SRF loan agreement, the following rate increases are estimated: 3. 4. 1. FY 2013 - 14: 4% increase 3. 4. 2. FY 2014 -15: 4% increase 3. 4. 3. FY 2015- 16: 3% increase 3. 4.4. FY2016- 17: 3°/ increase 3. 5. In the FY 2012 -13 budget for the Utilities Fund, $ 50, 000 was allocated to complete a new Multi -Year Water & Wastewater Rate Study to account for the projected costs of the Pump Station No. 1 projects. 4. RECOMMENDATION: 4. 1. Staff respectfully recommends City Council authorization for the City Manager to execute the SRF Loan Agreement for the Pump Station No. I projects ( SRF Project No. WW284100) and to amend the SRF Loan Agreement as necessary as actual costs are determined throughout construction. ATTACHMENTS: SRF Loan Agreement Cover Letter ( PDF) SRF Loan Agreement- PSI ( PDF) Resolution 2012- 7( PDF) SIGNATURE BLOCK: Finance Completed 01/ 02/2013 3: 48 PM City Attorney Completed 01/ 03/ 2013 11: 14 AM Carole Jones Completed 01/ 03/ 201311: 53 AM City Manager Completed 01/ 03/ 2013 12: 31 PM City Council Pending Packet Pg. 88  14. 2.. 121r' x Si i)Il' FLORIDA DEPARTMENT OF covcu.nuR ENVIRONMENTAL PROTECTION 1LNNII 1 11 t ARR01. I LL ( iOVIiRNOR BOB MARTINEZ CENT Flt 2600 BLAIR STONE ROAD TALLAHASSEE, FLORIDA 32399 -2400 III. RS( [ III .I VINIARDJI2. SIaRIiLARY November 30, 2012 Ms. Brandy Ferris, Finance Director City of Fort Walton Beach 107 Miracle Strip Parkway Southwest Fort Walton Beach, Florida 32548 Re: W W284100 - Fort Walton Beach Transmission and Reuse Facilities Dear Ms. Ferris: Enclosed are three original copies of the proposed State Revolving Fund loan agreement for your transmission and reuse facilities project. Please have the officials designated on page 30 sign the enclosed three copies. The Clerk' s seal is required. Return all three copies to me within three weeks at 2600 Blair Stone Road, MS 3505, Tallahassee, Florida, 32399 -2400. We will arrange for the Deputy Division Director to sign the documents and mail a fully executed original to you. Please note that the Special Condition listed in Section 10. 08 of the Agreement must be provided before any funds can be released. We appreciate your participation in the State Revolving Fund loan program. If you have any questions about the loan agreement, please call Graham Culbertson at 850/ 245 -8377. Sincerely, 1 Angelht, Program Administrator Water Resource Management AK/ gc Enclosures cc: Daniel Keck - Hatch Mott MacDonald Michael Beedic - City of Fort Walton Beach nrn. Ary' -. n urJl. u. Packet Pg. 89  142 j FLORIDA WATER POLLUTION CONTROL FINANCING CORPORATION AND CITY OF FORT WALTON BEACH, FLORIDA CLEAN WATER STATE REVOLVING FUND LOAN AGREEMENT W W284100 MN Florida Water Pollution Control Financing Corporation 1801 Hermitage Boulevard Tallahassee, Florida 32308 Packet Pg. 90  14. 2. b CLEAN WATER STATE REVOLVING FUND LOAN AGREEMENT CONTENTS PAGE 2 ARTICLEI DEFMITIONS ......................................................................................... .............................. 1. 01. 2 WORDS AND TERMS ............................................................................... .............................. 1. 02. CORRELATIVE WORDS ........ .............. . ...... _...... .... .........._.,...... .. ..._........_... 5 ARTICLE II WARRANTIES, REPRESENTATIONS AND COVENANTS ...................... .............. 5 2. 01. GENERAL WARRANTIES, REPRESENTATIONS AND COVENANTS ................ 5 2. 02. 7 TAX WARRANTIES, REPRESENTATIONS AND COVENANTS......_ .............................. 2. 03. 13 LEGAL AUTHORIZATION ................................................................... ............................... 2. 04. 13 AUDIT AND MONITORING REQUIREMENTS ..