Fort Walton Beach Council agenda — 04-28-09 regular — reading text

required system pressure for the reuse water system. Discussion: In 2009, President of the United States signed the American Recovery and February the Reinvestment Act ( ARRA) of 2009, which included funding for the Environmental Protection Agency' s ( EPA)Clean Water and Drinking Water State Revolving Fund ( SRF) Programs. The EPA's Clean Water SRF program is receiving almost $ 4 billion in funding from ARRA. The Drinking Water SRF program is set to receive $ 2 billion in funding. Of these funding amounts, the State of Florida was set to receive $ 134.4 million for the Clean Water SRF program and $ 88. 8 million for the Drinking Water SRF program. Staff has been coordinating with the Florida Department of Environmental Protection ( FDEP) to place the remaining phases of the Hurlburt / FWB reuse water main project on the SRF fundable list, which would qualify the project for funding through the Clean Water SRF program. The SRF program provides low interest loans to communities for water, wastewater, and reuse water projects. These loans have a 20 -year pay back period with an interest rate near 4.5 percent. Through the ARRA, the SRF programs are capable of funding additional projects with the possibility of grant funding for 50 percent of the overall project costs, which are estimated at approximately $ 2,250,000. For inclusion in the SRF program, the City is required to submit the following items: Request for Inclusion, including a project map and cost estimate Capital Financing Plan, including the City's outstanding debt service and projected debt service from this project Site Certification Finding of No Significant Impact (FONSI) documentation Biddable construction plans and specifications Planning Documentation prepared by City staff Public Participation Documentation A resolution adopting the Planning Documentation and approving the project for submittal to the SRF program Staff has completed all of the required submittal items, including the Planning Documentation and Resolution 2009 -14 ( See attached). Public participation shall be achieved at the April 28' City Council meeting. If this project is approved by FDEP, the City would be required to appropriate funding to cover the annual debt service for this project, which is estimated at approximately $ 150,000. Construction time is estimated at nine months, or 270 days. Once the project is complete, the City would proceed with developing a reclaimed water system rate study to eventually implement a new reclaimed water enterprise fund. Recommendation: Staff requests City Council approval and acceptance of Resolution 2009 -14 to authorize the City Manager to proceed with the submittal of an application to include the remaining phases of the Hurlburt Field /City of Fort Walton Beach Reuse Water Main Project in the FDEP's Clean Water State Revolving Fund Program for potential funding as part of the American Recovery and Reinvestment Act of 2009. The adoption of Resolution 2009 -14 also accepts* the Planning Documentation for the project as prepared by City staff, certifies the Public Participation Documentation, and certifies that the City is financially capable of repaying the 20 -year low- interest SRF loan. 2  Submitted Bv: Michael Beedie, City Engine Reviewed and Concur: join Hofstad, tility Services Director Reviewed for Agenda: es bert T. Meares cting City Manager Attachments: 1. City Attorney Concurrence E -Mail, dated April 20, 2009 2. Resolution 2009 -14 3. Project Map 4. Planning Documentation, dated April 20, 2009 5. Request for Inclusion ( FDEP Form 62- 503_ 900( 1)) 6. Capital Financing Plan ( FDEP Form WW -02b) 7. Site Certification ( FDEP Form WW -05e) 8. Finding of No Significant Impact (FONSI) from Department of the Air Force, dated August 552004  Page 1 of 4 Carole Jones From: Michael Beedie Sent: Tuesday, April 21, 2009 5: 01 PM To: Carole Jones Subject: FW: Control No. 09 -0054: Resolution 2009 -14 Hurlburt Joint Reuse Water Main SRF Funding Attachments: Resolution 2009 -14 Hurlburt Reuse Water Main SRF Funding 04- 21- 09.doc; cc.090428_ Hurlburt Reuse SRF Fund ing_ Blue. doc; cc.090428_ Hurlburt Reuse SRF Funding. doc Carole, Here is the revised Resolution 2009 -14 with the City Attorney' s revisions included. Please use this resolution as an attachment to the staff report, which is also attached. I will bring you the signed staff report and attachments tomorrow or Thursday morning. Thanks, Michael D. Beedie, P. E. City Engineer Utility Services Department City of Fort Walton Beach P. O. Box 4009 143 Hollywood Boulevard NW Fort Walton Beach, FL 32549 Phone: ( 850) 833 -9612 Fax: ( 850) 833 -9643 Cell: ( 850) 585 -9158 Nextel: 186 *13224 *8 E -Mail: mbeedie@fwb. org Website: www.fwb. org Please Note: Florida has a very broad public records law. Most written communications to or from City of Fort Walton Beach officials are public records available to the public and media upon request. Your e- mail address and communications may therefore be subject to public disclosure. Original Message---- - From: Toni Craig [ mailto:tonicraig @cox. net] Sent: Tuesday, April 21, 2009 4: 31 PM To: Michael Beedie Subject: RE: Control No. 09 -0054: Resolution 2009 -14 Huriburt Joint Reuse Water Main SRF Funding My revised resolution is attached. The notice should be run in the legal advertisements and similar to: CITY OF FORT WALTON BEACH NOTICE OF CONSIDERATION TO SUBMIT GRANT APPLICATION FOR CLEAN WATER STATE REVOLVING FUND PROGRAM The City Council of Fort Walton Beach will consider the following resolution at a public hearing on April 28, 2009, at 6: 00 p. m. or as soon thereafter as the issue may be heard, at City Council Chambers, 107 Miracle Strip Parkway, S. W., Fort Walton Beach, Florida: RESOLUTION 2009 -14 4/ 22/ 2009  Page 2 of 4 A RESOLUTION OF THE CITY OF FORT WALTON BEACH, FLORIDA, APPROVING THE SUBMITTAL OF THE REMAINING PHASES OF THE HURLBURT FIELD / CITY OF FORT WALTON BEACH JOINT REUSE WATER MAIN PROJECT TO THE FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION FOR INCLUSION IN THE CLEAN WATER STATE REVOLVING FUND PROGRAM AS PART OF THE AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009; AUTHORIZING THE CITY MANAGER TO SUBMIT THE STATE REVOLVING FUND LOAN APPLICATION; AND SETTING AN EFFECTIVE DATE. All interested parties are invited to appear at this meeting and be heard regarding the above resolution. Copies of the proposed resolution and related documentation may be viewed during normal business hours at the Office of the City Clerk, 107 Miracle Strip Parkway SW, Fort Walton Beach. For additional information contact Michael Beedie, City Engineer, ( 850) 833- 9612/ FAX 833 -9643 ( mbeedie @fwb. org). Any person who decides to appeal any decision of the City Council, with respect to any matter considered at this meeting will need a record of the proceedings, and for such purpose, may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be made. ( Section 286.0105, F.S.) The City of Fort Walton Beach adheres to the Americans with Disabilities Act and will make reasonable modifications for access to this meeting upon request. Please call the Helen Spencer, City Clerk at ( 850) 833 -9509 to make a request. For Hearing Impaired dial the City Hall TDD # 850- 833 -9925 or 1- 800 -955 -8771 ( TDD) or 1- 800 -955 -8770 ( VOICE). Requests must be received at least 48 hours in advance of the meeting in order to allow the City time to provide the requested service. Toni L. Craig Attorney at Law Fla Bar No 115444 850) 243 -6969 www.tonicraig. info From: Michael Beedie [ mailto: mbeedie@fwb. org] Sent: Tuesday, April 21, 2009 1: 52 PM To: Toni Craig Subject: RE: Control No. 09 -0054: Resolution 2009 -14 Hurlburt Joint Reuse Water Main SRF Funding Toni, I finally spoke with our contact at FDEP concerning the advertising requirements. They will accept an advertising period based on any requirements the City has, so if we can get the resolution finalized, I can get the request into the City Clerk's office to get the legal advertisement in the Daily News on Thursday or Friday. I will also get Cam to post a press release online discussing the resolution, which is also acceptable to FDEP. Please send me any revisions to the staff report and resolution as soon as you can to submit for the advertisement. Thanks, Michael D. Beedie, P. E. City Engineer Utility Services Department City of Fort Walton Beach P. O. Box 4009 143 Hollywood Boulevard NW Fort Walton Beach, FL 32549 Phone: ( 850) 833 -9612 4/ 22/ 2009 CAPITAL FINANCING PLAN WW -02b City of Fort Walton Beach Project Sponsor) Robert Mearns, Acting City Manager Authorized Representative and Title) Fort Walton Beach, Florida 32549 City, State, and Zip Code) Brandy Wunker, Finance Director ( 850) 833 -9512 Capital Financing Plan Contact, Title and Telephone Number) P. O. Box 4009 Mailing Address) Fort Walton Beach, Florida 32549 City, State, and Zip Code) The Department needs to know about the financial capabilities of potential State Revolving Fund (SRF) loan applicants. Therefore, a financial capability demonstration (and certification) is required well before the evaluation of the actual loan application. Water & Sewer Operating Revenues The sources of revenues being dedicated to repayment of the SRF loan are Note: Projects pledging utility operating revenues should attach a copy of the existing /proposed rate ordinance) Estimate of Proposed SRF Loan Debt Service 2, 183, 598 Capital Cost* Loan Service Fee ( 2% of capital cost) 43, 672 Subtotal 2, 227, 270 Capitalized Interest ** 21, 915 Total Cost to be Amortized 2, 249, 185 Interest Rate*** 2. 96% Annual Debt Service 146,468 168, 438 Annual Debt Service Including Coverage Factor * * ** Capital Cost = Allowance + Construction Cost (including a 10% contingency) + Technical Services after Bid Opening. Estimated Capitalized Interest = Subtotal times Interest Rate times construction time in years divided by two. 20 GO Bond Rate times Affordability Index divided by 200. Coverage Factor is generally 15 %. However, it may be