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HomeMy WebLinkAboutDocumentation_Regular_Tab 15_4/14/2022Agenda Item #15. Regular Council" STAFF MEMO `-' Meeting: Regular Council - Apr 14 2022 Staff Contact: Matthew Hammond, Utilities Department: Utilities Director RESOLUTION NO. 11-22, A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, FLORIDA, RELATING TO THE STATE REVOLVING FUND LOAN PROGRAM; MAKING FINDINGS; AUTHORIZING THE LOAN APPLICATION; AUTHORIZING THE LOAN AGREEMENT; ESTABLISHING PLEDGED REVENUES; DESIGNATING AUTHORIZED REPRESENTATIVES; PROVIDING ASSURANCES; PROVIDING FOR CONFLICTS, SEVERABILITY, AN EFFECTIVE DATE, AND FOR OTHER PURPOSES In December 2021, the Village Council approved Resolution No. 57-21 adopting the Facility Plan for the first phase of water main replacement projects (Water Main Replacement Projects 1 & 4) and authorizing the submittal of the Request for Inclusion to the Florida Department of Environmental Protection (FDEP) to be added to the State Revolving Fund (SRF) priority list. The Village's request was approved to receive funding through the SRF Drinking Water Facilities Loan Program at the February 2022 FDEP Priority List Public Meeting. Florida's SRF is made up of three programs - Clean Water State Revolving Fund (wastewater & stormwater projects), Drinking Water State Revolving Fund (DWSRF) and State Revolving Fund Management. Both the Clean Water and the Drinking Water SRF Programs are funded through money received from federal grants as well as state contributions. These funds then "revolve" through the repayment of previous loans and interest earned. The DWSRF Program provides low -interest loans to local governments and private utilities to plan, design, and build or upgrade drinking water systems. Interest rates on loans through the DWSRF are below market rates (discounted). The DWSRF financing rate is determined using the Bond Buyer 20-Bond GO Index average market rate for the full weeks occurring during the three months in the preceding fiscal quarter and applying that average rate to a formula from the rule. There are up to 1.3 percent in additional rate reductions that may be assessed based on Davis Bacon requirements, American Iron and Steel requirements, implement of an asset management plan, and constructing a water conservation project. Resolution 11-22 authorizes the Village to submit the SRF Loan Application, pledges revenues to repay the loan, and designates authorized representative. NOTE: Due to document size, the complete loan application and supporting exhibits can be obtained from the Utilities Department upon request. This document and any attachments may be reproduced upon request in an alternative format by completing our Accessibility Feedback Form, sending an e-mail to the Village Clerk or calling 561-768-0443. Page 381 of 501 Agenda Item #15. BUDGETED AMOUNT: N/A AVAILABLE AMOUNT: N/A EXPENDITURE AMOUNT: N/A Additional Budgetary Information: Funding Source(s): N/A N/A Approve Resolution No. 11-22 Resolution 11-22 -State Revolving Fund Loan Resolution Page 382 of 501 Agenda Item #15. RESOLUTION 11-22 A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, FLORIDA, RELATING TO THE STATE REVOLVING FUND LOAN PROGRAM; MAKING FINDINGS; AUTHORIZING THE LOAN APPLICATION; AUTHORIZING THE LOAN AGREEMENT; ESTABLISHING PLEDGED REVENUES; DESIGNATING AUTHORIZED REPRESENTATIVES; PROVIDING ASSURANCES; PROVIDING FOR CONFLICTS, SEVERABILITY, AN EFFECTIVE DATE, AND FOR OTHER PURPOSES. WHEREAS, Florida Statutes provide for loans to local government agencies to finance the construction of water facilities; and WHEREAS, Florida Administrative Code rules require authorization to apply for loans, to establish pledged revenues, to designate an authorized representative; to provide assurances of compliance with loan program requirements; and to enter into a loan agreement; and WHEREAS, the State Revolving Fund loan priority list currently designates Project No. DW50270 as eligible for available funding; and WHEREAS; the Village of Tequesta, Florida, intends to enter into a loan agreement with the Department of Environmental Protection under the State Revolving Fund for Project No. DW50270 financing. NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, FLORIDA, AS FOLLOWS: SECTION I. The foregoing findings are incorporated herein by reference and made a part hereof. SECTION II. The Village of Tequesta, Florida, is authorized to apply for a loan to finance Project No. DW50270. SECTION III. The revenues pledged for the repayment of the loan are net water system revenues after payment of debt service on the Village's Promissory Note, Bank of America, Series 2008. SECTION IV. The Village Manager is hereby designated as the authorized representative to provide the assurances and commitments required by the loan application. SECTION V. The Mayor of Tequesta is hereby designated as the authorized representative to execute the loan agreement which will become a binding obligation in accordance with its terms when signed by both parties. The Mayor is authorized to represent the Village in carrying out the Village's responsibilities under the loan Page 383 of 501 Agenda Item #15. agreement. The Mayor is authorized to delegate responsibility to appropriate Village staff to carry out technical, financial, and administrative activities associated with the loan agreement. SECTION VI. The legal authority for borrowing moneys to construct this Project is section 166.111 Florida Statutes. SECTION VII. All resolutions or part of Resolutions in conflict with any of the provisions of this Resolution are hereby repealed. SECTION VIII. If any section or portion of a section of this Resolution proves to be invalid, unlawful, or unconstitutional, it shall not be held to invalidate or impair the validity, force, or effect of any other section or part of this Resolution. SECTION IX. This Resolution shall become effective immediately upon its passage and adoption. PASSED and ADOPTED this Day of April, 2022. Page 384 of 501