The URL can be used to link to this page

Home My WebLink AboutDocumentation_Regular_Tab 19_10/17/2024 Agenda Item #19. Regular Council STAFF MEMO m ® Meeting: Regular Council - Oct 10 2024 Staff Contact: Marjorie Craig, Utilities Director Department: Utilities IMEW RESOLUTION NO. 20-24, 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 The Village of Tequesta (Village) Utilities Department (UD) recommends approval of Resolution 20-24 which performs the following purposes: • Authorizes the Village to submit a Florida Department of Environmental Protection (FDEP) state revolving fund (SRF) loan application for the UD water treatment plant improvement project (WTP Project) • Pledges revenues to repay the loan • Designates an authorized representative • Other purposes as required by FDEP and stated in the body of the attached resolution. In December 2021,the Village Council approved Resolution No. 57-21, adopting the FDEP-required "Facility Plan"for the improvements at the water treatment plant and the first phase of water main replacement projects. The WTP Project was approved for a $5,745,500 Drinking Water Facilities SRF program loan during the FDEP's August 2024 quarterly priority list public meeting. The Village already has SRF loan DW50270 for Water Main Replacement Project #4 (Country Club Dr. South). The loan for the WTP Project will be the second tranche from the same primary loan,with a "1" added to the original loan number(loan DW502701). The total estimated cost of the WTP Project is $ 6.53 million and includes process and safety upgrades, hydraulic/ efficiency improvements, and supervisory control and data acquisition (SCADA) upgrades. There is a portion of the improvements that were not funded by the SRF loan because there was a concern that FDEP would run out of funding, which has been the case for WM#2 Beach Rd Ph 2. Because of this, we submitted the request for inclusion package for the WTP Project as per the original Facility Plan rather than update it with design modifications made after the Facility Plan was approved by FDEP. Since the original Facility Plan with the original project description was already approved by FDEP, we were told that the FDEP SRF program would fund the original project. The alternative would delay the project and risk losing loan funding. The UD recommends that the Village fund the $785,000 estimated differential from reserves so the project can move forward as designed. BACKGROUND ON SRF LOANS The FDEP SRF program helps local governments and private utilities plan, design, build, or upgrade drinking water systems. Page 503 of 512 Agenda Item #19. Florida's SRF is made up of three programs: • Clean Water State Revolving Fund (wastewater&stormwater projects) • Drinking Water State Revolving Fund (DWSRF) • State Revolving Fund Management Both the Clean Water and the Drinking Water SRF programs are funded through money received from federal grants as well 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' private utilities to plan, design, build, or upgrade drinking water systems. Interest rates on below market discounted). The DWSRF financing rate is determined using the Bond Buyer 20-GO Index 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 Steel requirements, implementing an asset management plan, and constructing a water conservation project. 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. BUDGET • - • BUDGET AMOUNT N/A AMOUNT AVAILABLE N/A EXPENDITURE AMOUNT: N/A FUNDING SOURCES: N/A IS THIS A PIGGYBACK: ❑ Yes 0 N/A DID YOU OBTAIN 3 QUOTES? ❑ Yes 0 N/A QUOTE 1 - BUSINESS NAME N/A QUOTE AMOUNT N/A QUOTE 2 - BUSINESS NAME N/A QUOTE AMOUNT N/A QUOTE 3 - BUSINESS NAME N/A QUOTE AMOUNT N/A COMMENTS/EXPLANATION ON SELECTION Not related to a procurement item ATTACHMENTS: I Resolution 20-24 -SRF Loan Authorization Page 504 of 512 Agenda Item #19. RESOLUTION 20-24 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. DW502701 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. DW502701. 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 505 of 512 Agenda Item #19. 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 October, 2024 Page 506 of 512