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

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. 25 Packet Pg. 117  14. 2. b 2) Award recommendation, bid proposal, and bid tabulation ( certified by the responsible engineer). 3) Certification of compliance with the conditions of the Department' s approval of competitively or non -competitively negotiated procurement, if applicable. 4) Certification Regarding Disbarment, Suspension, Ineligibility and Voluntary Exclusion. 5) Assurance that the Local Borrower and contractors are in compliance with Section 1606 with labor standards, including prevailing wage rates established for its locality by the U. S. Department of Labor under the Davis -Bacon Act for Project construction. 9. 02. SUBMITTAL OF CONSTRUCTION CONTRACT DOCUMENTS. After the Department' s authorization to award construction contracts has been received, the Local Borrower shall submit: 1) Contractor insurance certifications. 2) Executed Contract(s). 3) Notices to proceed with construction. 9. 03. INSURANCE REQUIRED. The Local Borrower 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 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 desmuction 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 Borrower 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 $ 19, 310, 347, which consists of 19, 054, 447 to be disbursed to the Local Borrower and $255, 900 of Capitalized Interest. 26 Packet Pg. 118  14. 2. b Capitalized Interest is not disbursed to the Local Borrower, but is amortized via periodic Loan repayments as if it were actually disbursed. Capitalized Interest is computed at the Financing Rate, or rates, set for the Loan. It accrues and is compounded annually from the time when disbursements are made until six months before the first Semiannual Loan Payment is due. Capitalized Interest is estimated prior to establishing the schedule of actual disbursements. If the total amount disbursed within eighteen months after the effective date of this Agreement is less than half of the Loan proceeds amount authorized for disbursement, the Department may unilaterally reduce the amount authorized for disbursement. Such a reduction would not affect the total authorized Loan amount. 10. 02. LOAN SERVICE FEE. The Loan Service Fee is estimated as $ 381, 089 for the Loan amount authorized to date. The fee represents two percent of the Loan amount excluding Capitalized Interest; that is, two percent of $19, 054, 447. The Loan Service Fee amount shall be revised with any increase or decrease amendment. The Loan Service Fee is based on actual Project Costs and assessed in the final amendment. The Local Borrower shall pay the Loan Service Fee from the first available repayments following the final amendment. Capitalized Interest is computed on the assessed Loan Service Fee at the Financing Rate, or rates and included in the final amendment. It accrues and is compounded annually from the final amendment date until six months before the first Semiannual Loan Payment is due. A service fee assessed in a final amendment occurring later than six months before the first Semiannual Loan Payment date would not accrue Capitalized Interest charges. 10. 03. FINANCING RATE. N The Financing Rate on the unpaid principal of the Loan amount specified in Section 10. 01 is 1. 90 percent per annum. The Financing Rate equals the sum of the interest rate a and the Grant Allocation Assessment Rate. The interest rate is 0. 95 percent per annum and the Grant Allocation Assessment rate is 0. 95 percent per annum. However, if this Agreement is not executed by the Local Borrower and returned to the Department before January 1, 2013, the E 2 Financing Rate may be adjusted. A new Financing Rate shall be established for any funds a provided by amendment to this Agreement. 10. 04. LOAN' FERM. The Loan shall be repaid in 40 Semiannual Loan Payments. 10. 05, REPAYMENT SCHEDULE. The Semiannual Loan Payment shall be computed based upon the principal amount of the Loan plus the estimated Loan Service Fee and the principle of level debt service. The amount of Loan proceeds authorized for disbursement and associated Capitalized Interest will be treated as the Loan principal for computing the Semiannual Loan Payment. The Semiannual Loan Payment amount may be adjusted, by amendment of this Agreement, based upon revised information. After the final disbursement of Loan proceeds, the Semiannual Loan Payment shall 27 Packet Pg. 11g'  F14 2.. b be based upon the actual Project costs and the Loan Service Fee, 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. The Corporation will deduct the Loan Service Fee and all associated interest from the first available repayments following the final amendment. Each Semiannual Loan Payment shall be in the amount of $594, 037 until the payment amount is adjusted by amendment. The interest and Grant Allocation Assessment portions of each Semiannual Loan Payment shall be computed, using their respective rates, on the unpaid balance of the principal amount of the Loan, which principal includes Capitalized Interest. Interest ( at the Financing Rate) also shall be computed on the estimated Loan Service Fee. The interest and Grant Allocation Assessment on the unpaid balance shall be computed as of the due date of each Semiannual Loan Payment. Semiannual Loan Payments shall be paid to, and must be received by, the Trustee beginning on November 15, 2014 and semiannually thereafter on May 15 and November 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 19, 691, 436, which consists of the Loan principal and the estimated Loan Service Fee. 10. 06. PROJECT COSTS. The Local Borrower, the Corporation 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 Project changes agreed upon by the Department. Capitalized Interest will be recalculated based on actual dates and amounts of Loan disbursements. If the Local Borrower 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 Local Borrower' s Project audit or a Department audit. The Local Borrower agrees to the following estimates of Project costs: PROJECT COSTS CATEGORY COST Allowance costs 1, 324, 383 Construction and Demolition 15, 710, 000 Contingencies 1, 571, 000 Technical Services After Bid Opening 449, 064 Subtotal ( Disbursable Amount) 19, 054,447 Capitalized Interest 255, 900 TOTAL (Loan Principal Amount) 19, 310, 347 28 Packet Pg. 120  14. 2. 6 10. 07. PROJECT SCHEDULE. The Local Borrower agrees by execution hereof: 1) Completion of Project construction is scheduled for May 15, 2014. 2) The Loan Debt Service Account shall be established and Monthly Loan Deposits shall begin no later than May 15, 2014. 3) A clear site title certification shall be submitted no later than May 15, 2014. 4) The initial annual certification required under Subsection 2. 01( 10) of this Agreement shall be due August 15, 2014. Thereafter the certification shall be submitted no later than September 30 of each year until the final Semiannual Loan Payment is made. 5) The first Semiannual Loan Payment in the amount of $ 594, 037 shall be due November 15, 2014. 10. 08. SPECIAL CONDITION. Prior to any funds being released, the Local Borrower shall submit a Legal Opinion addressing the availability of Pledged Revenues, the right to increase rates, and subordination of the pledge. REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 29 Packet Pg. 121  14. 2. b ARTICLE XI - EXECUTION OF AGREEMENT This Loan Agreement W W284100 shall be executed in three or more counterparts, any of which shall be regarded as an original and all of which constitute