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HomeMy WebLinkAboutSRF LoanSTATE OF FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION AND CITY OF CAPE CANAVERAL WASTEWATER TREATMENT REVOLVING LOAN FUND AGREEMENT LOAN NUMBER CS120825020 Florida Department of Environmental Protection Bureau of Local Government Wastewater Financial Assistance Twin Towers Office Building 2600 Blair Stone Road Tallahassee Florida 32399 -2400 WASTEWATER TREATMENT REVOLVING LOAN FUND AGREEMENT CONTENTS PAGE ARTICLE I DEFINITIONS 1 01 WORDS AND TERMS 1 1 02 CORRELATIVE WORDS 3 ARTICLE II WARRANTIES REPRESENTATIONS AND COVENANTS 2 01 WARRANTIES REPRESENTATIONS AND COVENANTS 3 2 02 CONDITIONS PRECEDENT 6 ARTICLE III MONTHLY ESCROW AND LOAN REPAYMENT ACCOUNTS 3 01 MONTHLY ESCROW ACCOUNT 6 3 02 INVESTMENT OF ESCROW MONEYS 7 3 03 ESCROW WITHDRAWALS 7 3 04 LOAN REPAYMENT RESERVE ACCOUNT 7 3 05 LOAN REPAYMENT RESERVE WITHDRAWALS 7 3 06 RESTORATION OF LOAN REPAYMENT RESERVE ACCOUNT 7 3 07 INVESTMENT OF LOAN REPAYMENT RESERVE MONEYS 7 3 08 ASSETS HELD IN TRUST 7 ARTICLE IV PROJECT INFORMATION 4 01 PROJECT CHANGES 8 4 02 TITLE TO PROJECT SITE 8 4 03 PERMITS AND APPROVALS 8 4 04 ENGINEERING SERVICES 8 4 05 PROHIBITION AGAINST ENCUMBRANCES 8 4 06 COMPLETION MONEYS 8 4 07 SURPLUS LOAN FUNDS 8 4 08 LOAN DISBURSEMENTS 8 ARTICLE V RATES AND USE OF THE SEWER SYSTEM 5 01 RATE COVERAGE 9 5 02 NO FREE SERVICE 9 5 03 MANDATORY CONNECTIONS 9 5 04 NO COMPETING SERVICE 10 5 05 MAINTENANCE OF THE SEWER SYSTEM 10 5 06 ADDITIONS AND MODIFICATIONS 10 5 07 COLLECTION OF REVENUES 10 ARTICLE VI DEFAULTS AND REMEDIES 6 01 EVENTS OF DEFAULT 10 6 02 REMEDIES 11 6 03 DELAY AND WAIVER 12 ARTICLE VII THE PLEDGED REVENUES 7 01 SUPERIORITY OF THE PLEDGE TO THE DEPARTMENT 12 7 02 ADDITIONAL DEBT OBLIGATIONS 12 U CONTENTS PAGE ARTICLE VIII GENERAL PROVISIONS PRINCIPAL AMOUNT OF LOAN 8 01 DISCHARGE OF OBLIGATIONS 12 8 02 PROJECT RECORDS AND STATEMENTS 13 8 03 ACCESS TO PROJECT SITE 13 8 04 ASSIGNMENT OF RIGHTS UNDER AGREEMENT 13 8 05 AMENDMENT OF AGREEMENT 13 8 06 SEVERABILITY CLAUSE 13 8 07 EXECUTION OF AGREEMENT 13 ARTICLE IX CONSTRUCTION CONTRACTS AND INSURANCE 9 01 AUTHORIZATION TO AWARD CONSTRUCTION CONTRACTS 13 9 02 SUBMITTAL OF CONSTRUCTION CONTRACT DOCUMENTS 14 9 03 INSURANCE REQUIRED 14 ARTICLE X DETAILS OF FINANCING 10 01 PRINCIPAL AMOUNT OF LOAN 15 10 02 PROJECT COSTS 15 10 03 PROJECT SCHEDULE 16 10 04 INTEREST RATE 16 10 05 LOAN TERM 16 10 06 REPAYMENT SCHEDULE 16 ATTACHMENT A PROJECT DESCRIPTION 18 ATTACHMENT B LOAN DISBURSEMENT SCHEDULE 19 11 WASTEWATER TREATMENT REVOLVING LOAN FUND AGREEMENT THIS AGREEMENT is executed by the STATE OF FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION (Department) and the CITY OF CAPE CANAVERAL FLORIDA existing as a local government agency (Local Government) under the laws of the State of Florida WITNESSETH WHEREAS pursuant to Section 403 1835 Florida Statutes the Department is authorized to make loans to local government agencies to finance or refinance the construction of wastewater pollution control facilities the planning and design of which have been reviewed by the Department and WHEREAS the Local Government has made application for the financing of the Project and the Department has determined that such Project meets all requirements for a loan NOW THEREFORE in consideration of the Department loaning money to the Local Government in the principal amount and the covenants hereinafter set forth it is agreed as follows ARTICLE I - 1 01 WORDS AND TERMS Words and terms used herein shall have the meanings set forth below (1) Additional Completion Loan shall mean a loan subsequent to the Loan authorized by this Agreement which may be made to the Local Government by the Department for the purpose of furnishing additional funds to complete the Project The interest rate for any Additional Completion Loan shall be established pursuant to Chapter 17 -503 of the Florida Administrative Code (2) Agreement or Loan Agreement shall mean this agreement including any amendments hereto (3) Authorized Representative shall mean the official of the Local Government authorized by ordinance or resolution to sign documents associated with the Loan (4) Capital Contribution shall mean moneys from such sources as impact fees assessments and contributions in- aid -to- construction (5) Capitalized Interest shall mean interest accruing on a loan before repayment begins Capitalized interest shall be included in the principal of the Loan Capitalized interest is not disbursed to the Local Government but it shall be amortized via periodic loan repayments to the Department as if it were actually disbursed Capitalized interest shall be computed at the interest rate 1 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 (6) Cost of Construction shall mean the costs for furnishing and installing equipping constructing altering remodeling or improving facilities It shall also mean the cost of interim financing refinancing or payment of other debt of the Local Government the proceeds of which were used for the foregoing purposes (7) Depository or Qualified Public Depository shall mean a bank or savings association organized and existing under the laws of the State of Florida and any bank or savings association organized under the laws of the United States that has it principal place of business in the State of Florida or has a branch office which is authorized under the laws of the State of Florida or of the United States to receive deposits in the State of Florida that meets all of the requirements of Chapter 280 Florida Statutes that has a combined capital and unimpaired surplus of not less than $50 million and that has been designated by the Treasurer of the State of Florida as a qualified public depository (8) Loan shall mean the amount of money including any Additional Completion Loan amounts to be loaned pursuant to this Agreement (9) "Loan Repayment Reserve Account shall mean the account into which will be deposited the amount set aside to pay unexpected deficiencies if any an the Semiannual Loan Payment (10) Loan Service Fee shall mean an origination fee to be paid to the Department by the Local Government It shall be based on the Loan amount excluding the Capitalized Interest Loan Repayment Reserve and Loan Service Fee amounts The fee may be paid with Loan proceeds and amortized The fee will be used by the Department to pay for program administration (11) Monthly Loan Deposit shall mean the monthly deposit to be made by the Local Government to an escrow account (12) operation and Maintenance Expense shall mean the expenses of operation maintenance, and ordinary repairs of the Sewer System and shall include without limiting the generality of the foregoing insurance premiums administrative expenses of the Local Government relating solely to the Sewer System and such other reasonable operating expenses relating to the Sewer System as shall be an accordance with generally accepted accounting principles Operating Expenses shall not include interest on any debt payable from Revenues depreciation or other items not requiring the expenditure of cash (13) Pledged Revenues shall mean the specific Revenues pledged as security for repayment of the Loan and shall be the Revenues derived yearly from the operation of the Sewer System after payment of the Operation and Maintenance Expense and the satisfaction of all yearly payment obligations on account of (i) the City of Cape Canaveral Florida Sewer Revenue Bonds Series A 1966 and (ii) the City of Cape Canaveral, Florida Sewer Revenue Bonds Series B 1966 2 (14) Project shall mean facilities consisting of the components needed to meet present and estimated future requirements as described in Attachment A to this Agreement (15) Revenues shall mean all income or earnings received by the Local Government from the ownership or operation of its Sewer System including investment income all as calculated in accordance with generally accepted accounting principles Revenues shall not include proceeds from the sale or other disposition of any part of the Sewer System condemnation awards or proceeds of insurance except use and occupancy or business interruption insurance received with respect to the Sewer System (16) Semiannual Loan Payment" shall mean the payment due from the Local Government to the Department at six -month intervals and it is comprised of principal and interest (17) Sewer System shall mean all facilities owned by the Local Government for collection transmission treatment and reuse of wastewater and its residuals (18) Water System" shall mean all facilities owned by the Local Government for supplying and distributing water for residential commercial industrial and governmental use 1 02 CORRELATIVE WORDS Words of the masculine gender shall be understood to include correlative words of the feminine and neuter genders Unless the context shall otherwise indicate the singular shall include the plural and the word person shall include corporations and associations including public bodies as well as natural persons Capitalized words not otherwise defined herein shall be defined as set forth in the Florida Administrative Code Chapter 17 -503 ARTICLE II - WARRANTIES REPRESENTATIONS AND COVENANTS 2 01 WARRANTIES REPRESENTATIONS AND COVENANTS The Local Government warrants represents and covenants that (1) The Local Government has full power and authority to enter into this Agreement and to comply with the provisions hereof (2) The Local Government is not the subject of bankruptcy insolvency or reorganization proceedings and is not in default of or otherwise subject to any agreement or any law administrative regulation judgment decree note resolution charter or ordinance which would currently restrain or enjoin it from entering into or complying with this Agreement (3) There is no material action suit proceeding inquiry or investigation at law or in equity before any court or public body pending or to the beat of the Local Government s knowledge threatened which seeks to restrain or enjoin the Local Government from entering into or complying with this Agreement 3 (4) The Local Government shall not issue bonds notes or other evidences of indebtedness in any manner secured by Pledged Revenues without the written consent of the Department (5) All permits real property interests and approvals required as of the date of this Agreement have been obtained for construction and use of the Project The Local Government knows of no reason why any future required permits or approvals are not obtainable (6) The Local Government shall undertake the Project on its own responsibility to the extent permitted by law (7) To the extent provided by Section 768 28 of the Florida Statutes the Local Government shall release and hold harmless the State its officers members and employees from any claim arising in connection with the Local Government a actions or omissions in its planning design construction or operation of the Project (8) All Local Government representations to the Department pursuant to the Loan application and Agreement are true and accurate The Local Government shall comply with all applicable State and Federal laws rules and regulations which are identified in the Loan Application or Agreement Laws rules and regulations which apply only to Equivalency Projects pursuant to Chapter 17 -503 of the Florida Administrative Code do not apply to this project To the extent that any assurance representation or covenant requires a future action the Local Government shall take such action as is necessary for compliance (9) The financial information delivered by the Local Government to the Department is current and correct The Local Government shall provide the Department with additional financial information via audits required by Chapter 17 -503 of the Florida Administrative Code notification of changing conditions adversely affecting the Local Government s ability to repay this Loan or upon request of the Department (10) The Local Government shall maintain records using Generally Accepted Governmental Accounting Standards established by the Government Accounting Standards Board As part of its bookkeeping system the Local Government shall keep accounts of the Sewer System separate from all other accounts and it shall keep accurate records of all Revenues Pledged Revenues Capital Contributions Loan disbursement receipts expenses and expenditures relating to the Sewer System (11) in the event the anticipated Pledged Revenues are shown by the Local Government a annual budget to be insufficient to make the Semiannual Loan Payments for such Fiscal Year when due the Local Government shall include in such budget other legally available funds other than ad valorem tax revenues which will be sufficient together with the Pledged Revenues to make the Semiannual Loan Payments Such other legally available funds shall be budgeted in the regular annual governmental budget and designated for the purpose provided by this Subsection and the Local Government shall collect such funds for application as provided herein The Local Government shall notify the Department immediately in writing of any such budgeting of other legally available funds Nothing in this covenant shall be construed as creating a pledge lien or charge upon any such other legally available funds requiring 4 the Local Government to levy or appropriate ad valorem tax revenues or preventing the Local Government from pledging to the payment of any bonds or other obligations all or any part of such other legally available funds (12) Beginning with the Fiscal Year during which the Loan is executed and for each year until the Loan is retired the Local Government shall submit annual audit reports to the Department Reports shall be submitted within one year after the end of each audited Fiscal Year Audits shall be conducted in accordance with Government Auditing Standards (1988) issued by the Comptroller General of the United States Beginning with the Fiscal Year during which the Loan is made and continuing through the Fiscal Year during which the final Loan disbursement to the Local Government is received audits shall be conducted under the Office of Management and Budget Circular A -128 "Audits of State and Local Governments (1985) which provides policies procedures and guidelines for the Single Audit Act of 1984 The Loan shall be treated as a major Federal assistance program regardless of the disbursed amount received during the Fiscal Year being audited Beginning with the first Fiscal Year after the final loan disbursement to the Local Government is received and ending with the Fiscal Year during which the Loan is retired financial audits shall be conducted as required under Section 11 45 of the Florida Statutes (13) Beginning with the first Fiscal Year during which Monthly Loan Deposits to a debt service account are required and continuing through the Fiscal Year during which the Loan is retired the Local Government shall cause its auditor to comment on its compliance with the Loan Agreement covenants and on its ability to repay the Loan The Department shall be notified immediately if anything comes to the auditor s attention during the annual examination of the Local Government a records that would constitute a default under the Loan Agreement or adversely affect the Local Government s ability to repay the Loan or the audit report shall include a statement to the effect that nothing came to the auditor s attention that would constitute a default under the Loan Agreement or adversely affect the Local Government a ability to repay the Loan (14) Within 12 months of Project Close -out the Local Government shall submit to the Department a separate audit by an independent certified public accountant of the Loan revenues and expenditures The audit shall be conducted in accordance with Government Auditing Standards (1988) issued by the Comptroller General of the United States The audit shall address whether the Local Government complied with requirements set forth in the Loan Agreement The audit findings shall set aside or question any costs that are unallowable under Rule 17 -503 Florida Administrative Code A final determination of the allowability of such costs shall be made by the Department (15) Beginning in 1996 and continuing until the final Loan repayment is made the Local Government s Authorized Representative or its chief financial officer shall certify to the Department no later than October 1 of each year that (a) Pledged Revenue collections satisfy on a pro rata basis the rate coverage requirement (b) the Monthly Escrow Account contains the funds required (c) the Loan Repayment Reserve Account contains the funds required and (d) insurance including that issued through the National Flood Insurance 61 Program authorized under 42 U S C secs 4001 -4128 when applicable in effect for the facilities generating the Pledged Revenues adequately covers the customary risks to the extent that such insurance is available (16) Pursuant to Section 216 349 of the Florida Statutes the Local Government shall not use the Loan proceeds for the purpose of lobbying the Florida Legislature the Judicial Branch or a State agency (17) The Local Government agrees to construct the Project in accordance with the Project schedule Delays incident to strikes riots acts of God and other events beyond the reasonable control of the Local Government are excepted If for any reason construction is not completed by the specified completion date there shall be no resulting diminutions or delay in the Semiannual Loan Payment or the Monthly Loan Deposit or funding of the Loan Repayment Reserve Account (18) The Local Government covenants that this Agreement is entered into for the purpose of constructing refunding or refinancing the Project which will in all events serve a public purpose The Local Government covenants that it will under all conditions complete and operate the Project to fulfill the public need 2 02 CONDITIONS PRECEDENT As conditions precedent to this Agreement the Local Government shall deliver the following to the Department (1) A copy of all resolutions and ordinances authorizing this Agreement and establishing the Local Government s legal right and authority to undertake the Project (2) The opinion of counsel to the Local Government that (a) this Agreement has been duly authorized and executed and shall constitute a valid and legal obligation in accordance with its terms upon execution by both parties (b) the Agreement specifies the Revenues pledged for repayment of the Loan and (c) the pledge is valid binding and enforceable ARTICLE III - MONTHLY ESCROW AND LOAN REPAYMENT ACCOUNTS 3 01 MONTHLY ESCROW ACCOUNT The Local Government shall establish a monthly escrow account with a Depository Beginning on the date six months before the date of the first Semiannual Loan Payment specified in this Agreement the Local Government shall make a Monthly Loan Deposit from the Pledged Revenues to the monthly escrow account In any month in which the amount on deposit in the monthly escrow account does not equal or exceed five - sixths (5/6) of the Semiannual Loan Payment the Depository shall be required to promptly notify the Department in writing if the Local Government fails to make a Monthly Loan Deposit which equals or exceeds one -sixth (1/6) of the Semiannual Loan Payment In the event there is an insufficient amount in the monthly escrow account thirty (30) days prior to each Semiannual Loan Payment the Local Government agrees to budget by amendment if necessary payment to the Department from other legally available funds other than ad valorem tax revenues all sums becoming due before the same become delinquent This requirement shall not be construed to give superiority to the Department s elaim on any Revenues over prior claims of general creditors of 6 the Local Government nor shall it be construed to give the Department the power to require the Local Government to levy and collect any Revenues other than Pledged Revenues 3 02 INVESTMENT OF ESCROW MONEYS Upon the direction of the Local Government a Depository shall invest escrowed moneys pursuant to the laws of the State of Florida The maturity or redemption date of investments shall be not later than the date upon which such moneys may be needed to make Semiannual Loan Payments 3 03 ESCROW WITHDRAWALS The withdrawal of moneys from the monthly escrow account shall be for the purpose of making the Semiannual Loan Payment 3 04 LOAN REPAYMENT RESERVE ACCOUNT A Loan Repayment Reserve Account shall be established with a Depository in the amount of 0 02 times the Loan amount excluding the portion of the Loan representing the Loan Repayment Reserve Loan Service Fee and Capitalized Interest The Local Government shall deposit the full amount into the Loan Repayment Reserve Account six months before the date of the first Semiannual Loan Payment specified in this Agreement 3 05 LOAN REPAYMENT RESERVE WITHDRAWALS The Loan Repayment Reserve Account shall be used by the Local Government to cure a temporary deficiency in any Semiannual Loan Payment The Depository shall be required to promptly notify the Department upon any withdrawal from the Account Any unused portion of the Loan Repayment Reserve Account shall be applied to the final Semiannual Loan Payment and any portion of the Loan Repayment Reserve Account in excess of the final Semiannual Loan Payment amount shall be applied to the preceding Semiannual Loan Payment 3 06 RESTORATION OF LOAN REPAYMENT RESERVE ACCOUNT A default causing the Local Government to use the Loan Repayment Reserve Account or the use of the Account to prevent default shall result in the Local Government being responsible for making special deposits to restore its Loan Repayment Reserve Account Special restoration deposits shall be made from the first moneys legally available to the Local Government for such purpose 3 07 INVESTMENT OF LOAN REPAYMENT RESERVE MONEYS Upon the direction of the Local Government a Depository shall invest reserved moneys pursuant to the laws of the State of Florida The maturity or redemption date of investments shall not be greater than five years from the date of investment provided however that moneys shall be withdrawn if necessary pursuant to Section 3 05 of this Agreement All investment income and earnings shall be credited to the Loan Repayment Reserve Account 3 08 ASSETS HELD IN TRUST The assets in each of the accounts created under this loan agreement shall be held in trust for the purposes provided herein and used only for the purposes and in the manner prescribed in this Agreement, and pending such use said assets shall be subject to a lien and charge in favor of the Department 7 ARTICLE IV - PROJECT 4 01 PROJECT CHANGES Project changes prior to bid opening shall be made by addendum to plans and specifications Changes after bid opening shall be made by change order The Local Government shall submit all addenda and all change orders to the Department Any change order which affects the Project performance standards or which increases the contract amount by more than one hundred thousand dollars ($100,000) or which alters the Project purpose requires written approval by the Department 4 02 TITLE TO PROJECT SITE The Local Government shall have an interest in real property sufficient for the construction and location of the Project free and clear of liens and encumbrances which would impair the usefulness of such sites for the intended use 4 03 PERMITS AND APPROVALS The Local Government shall have obtained prior to the Department a authorization to award construction contracts all permits and approvals required for the construction of the Project or portion of the Project funded under this Agreement The Local Government shall obtain operation permits if applicable when construction is complete 4 04 ENGINEERING SERVICES A professional engineer registered in the State of Florida shall be employed by or under contract with the Local Government to oversee construction 4 05 PROHIBITION AGAINST ENCUMBRANCES The Local Government is prohibited from selling leasing or disposing of any part of the Sewer System which would reduce operational integrity or Revenues so long as this Agreement is in effect unless the written consent of the Department is first secured 4 06 COMPLETION MONEYS In addition to the proceeds of this Loan the Local Government covenants that it has obtained or will obtain sufficient moneys from other sources to complete construction and place the Project in operation on or prior to the date specified in Article X Failure of the Department to approve an Additional Completion Loan shall not constitute a waiver of the Local Government s covenants to complete and place the Project in operation 4 07 SURPLUS LOAN FUNDS Upon execution of all construction equipment and materials contracts the Project contingency shall be reduced to not more than five (5) percent of the sum of the as -bid prices for all such contracts After Project performance certification by the Local Government the Department will establish the final Project costs to be financed by the Loan The Loan Service Fee may be adjusted and the balance of Loan funds remaining will be eliminated The principal amount of the Loan will be adjusted by the Department This adjustment will reduce on a pro rata basis the amount of the remaining Semiannual Loan Payments 4 08 LOAN DISBURSEMENTS Disbursements shall be made only upon the issue of warrants signed by the State Comptroller and only when the requests for such warrants are accompanied by a Department certification that such withdrawals are proper expenditures The disbursement of moneys may be made by electronic means or by means of a magnetic tape or other transfer medium Disbursements shall be made directly to the Local Government for design and administration allowances 8 reimbursement of the incurred Cost of Construction and related services establishing a Loan Repayment Reserve and Project performance certification services The disbursement of the Loan Service Fee when included in the Loan principal will be made directly to the Department s Operating Trust Fund in the increments and at the times set forth in Rule 17 -503 400 Disbursements to the Local Government shall be made generally no more frequently than monthly upon receipt of the following (1) A written request signed by the Authorized Representative Such requests must be accompanied by sufficiently itemized summaries of the materials labor or services to identify the nature of the work performed the cost or charges for such work and the person providing the service or performing the work (2) A certification signed by the Authorized Representative as to the current estimated costa of the Project that the materials labor or services represented by the invoice have been satisfactorily purchased performed or received and applied to the Project that all funds received to date have been applied toward completing the Project and that under the terms and provisions of the contracts the Local Government is required to make such payments (3) A certification by the engineer responsible for overseeing construction stating that equipment materials labor and services represented by the construction invoices have been satisfactorily purchased or received and applied to the Project in accordance with construction contract documents stating that payment is in accordance with construction contract provisions stating that construction up to the point of the requisition is in compliance with the contract documents and identifying all additions or deletions to the Project which have altered the Project s performance standards scope or purpose since the issue of the Department construction permit (4) Such other certificates or documents by engineers attorneys accountants contractors or suppliers as may reasonably be required by the Department ARTICLE V - RATES AND USE OF THE SEWER SYSTEM 5 01 RATE COVERAGE The Local Government shall maintain rates and charges for the services furnished by the Sewer System which will be sufficient to provide in each Fiscal Year Pledged Revenues equal to or exceeding 1 15 times the sum of the Semiannual Loan Payments due in such Fiscal Year 5 02 NO FREE SERVICE The Local Government shall not permit connections to or furnish any services afforded by the Sewer System without making a charge therefor based on the Local Government s uniform schedule of rates fees and charges 5 03 MANDATORY CONNECTIONS The Local Government shall adopt as necessary and enforce requirements consistent with applicable laws for the owner tenant or occupant of each building located on a lot or parcel of land 9 which is served or may reasonably be served by the Sewer System to connect such building to the Sewer System 5 04 NO COMPETING SERVICE The Local Government shall not allow any person to provide any services which would compete with the Sewer System so as to adversely affect Revenues 5 05 MAINTENANCE OF THE SEWER SYSTEM The Local Government shall operate and maintain the Sewer System in a proper sound and economical manner and shall make all necessary repairs renewals and replacements 5 06 ADDITIONS AND MODIFICATIONS The Local Government may make any additions modifications or improvements to the Sewer System which it deems desirable and which do not reduce the operational integrity of any part of the Sewer System All such renewals, replacements additions modifications and improvements shall become part of the Sewer System 5 07 COLLECTION OF REVENUES The Local Government shall use its best efforts to collect all rates fees and other charges due to it The Local Government shall establish liens on premises served by the Sewer System for the amount of all delinquent rates fees and other charges where such action is permitted by law The Local Government shall to the full extent permitted by law cause to discontinue the services of the Water and Sewer Systems and use its best efforts to shut off water service furnished to persons who are delinquent beyond customary grace periods in the payment of Sewer System rates fees and other charges ARTICLE VI - DEFAULTS AND REMEDIES 6 01 EVENTS OF DEFAULT Each of the following events is hereby declared an event of default (1) Failure to fund the Loan Repayment Reserve or to make any Monthly Loan Deposit or to make any installment of the Semiannual Loan Payment when it is due and such failure shall continue for a period of thirty (30) days (2) Failure to comply with the provisions of this Agreement or failure in the performance or observance of any of the covenants or actions required by this Agreement other than as provided in Subsection 6 01(1) above or Subsection 6 01(7) below and such failure shall continue for a period of sixty (60) days after written notice thereof to the Local Government by the Department (3) Any warranty representation or other statement by or on behalf of the Local Government contained in this Agreement or in any information furnished in compliance with or in reference to this Agreement which is false or misleading (4) An order or decree entered with the acquiescence of the Local Government appointing a receiver of any part of the Sewer System or Revenues 10 thereof or if such order or decree having been entered without the consent or acquiescence of the Local Government shall not be vacated or discharged or stayed on appeal within sixty (60) days after the entry thereof (5) Any proceeding instituted with the acquiescence of the Local Government for the purpose of effecting a composition between the Local Government and its creditors or for the purpose of adjusting the claims of such creditors pursuant to any federal or state statute now or hereafter enacted if the claims of such creditors are payable from Revenues of the Sewer System (6) Any bankruptcy insolvency or other similar proceeding instituted by or against the Local Government under federal or state bankruptcy or insolvency law now or hereafter in effect and if instituted against the Local Government is not dismissed within sixty (60) days after filing (7) Failure of the Local Government to give immediate written notice of default to the Department and such failure shall continue for a period of thirty (30) days 6 02 REMEDIES Upon any event of default and subject to the rights of others having prior liens on the Pledged Revenues the Department may enforce its rights by any of the following remedies (1) By mandamus or other proceeding at law or in equity cause to establish rates and collect fees and charges for use of the Sewer System and to require the Local Government to fulfill this Agreement (2) By action or suit in equity require the Local Government to account for all moneys received from the Department or from the ownership of the Sewer System and to account for the receipt use application or disposition of the Pledged Revenues (3) By action or suit in equity, enjoin any acts or things which may be unlawful or in violation of the rights of the Department (4) By applying to a court of competent jurisdiction cause to appoint a receiver to manage the Sewer System establish and collect fees and charges and apply the revenues to the reduction of the obligations under this Agreement (5) By certifying to the Comptroller delinquency on loan repayments the Department may intercept the delinquent amount plus six (6) percent expressed as an annual interest rate penalty of the amount due to the Department from any unobligated funds due to the Local Government under any revenue or tax sharing fund established by the State except as otherwise provided by the State Constitution Penalty interest shall accrue on any amount due and payable beginning on the thirtieth (30th) day following the date upon which payment le due (6) By notifying financial market credit rating agencies (7) By suing for payment of amounts due or becoming due with interest on overdue payments together with all costs of collection including attorneys fees 11 (8) By accelerating the repayment schedule or increasing the interest rate by as much as three (3) percent per annum on the unpaid principal of the Loan for a default under Subsection 6 01(1) 6 03 DELAY AND WAIVER No delay or omission by the Department to exercise any right or power accruing upon event of default shall impair any such right or power or shall be construed to be a waiver of any such default or acquiescence therein and every such right and power may be exercised as often as may be deemed expedient No waiver or any default under this Agreement shall extend to or affect any subsequent event of default whether of the same or different provision of this Agreement or shall impair consequent rights or remedies ARTICLE VII - THE PLEDGED REVENUES 7 01 SUPERIORITY OF THE PLEDGE TO THE DEPARTMENT From and after the effective date of this Agreement the Department shall have a lien on the Pledged Revenues prior and superior to any other lien pledge or assignment not specifically set forth in this Agreement Any of the Pledged Revenues may be released from the lien on such Pledged Revenues in favor of the Department if the Department makes a determination based upon facts deemed sufficient by the Department that the remaining Pledged Revenues will in each Fiscal Year equal or exceed 1 15 times the debt service coming due in each Fiscal Year under the terms of this Agreement 7 02 ADDITIONAL DEBT OBLIGATIONS The Local Government may issue additional debt obligations on a parity with or senior to the lien of the Department on the Pledged Revenues with the written consent of the Department if the Local Government demonstrates at the time of issuance of such additional debt obligations that the Pledged Revenues plus Revenues to be pledged to the additional proposed debt obligations will equal or exceed 1 15 tunes the annual combined debt service requirements of this Agreement plus debt service on other obligations proposed to be issued by the Local Government ARTICLE VIII - GENERAL PROVISIONS 8 01 DISCHARGE OF OBLIGATIONS All payments required to be made under this Agreement shall be cumulative and any deficiencies in any Fiscal Year shall be added to the payments due in the succeeding year and all years thereafter until fully paid Payments shall continue to be secured by this Agreement until all of the payments required shall be fully paid to the Department If at any time the Local Government shall have paid or shall have made provision for the timely payment of the principal amount of the Loan and interest required the pledge of and lien on the Revenues to the Department shall be no longer in effect Deposit of sufficient cash securities or investments authorized by law from time to time may be made to effect defeasance of this Loan However the deposit shall be made in irrevocable trust with a banking institution or trust company for the sole benefit of the Department There shall be no penalty unposed by the Department for early retirement of this Loan 12 8 02 PROJECT RECORDS AND STATEMENTS Books records reports design documents contract documents and papers shall be available to the authorized representatives of the Department and the U S Environmental Protection Agency s Inspector General for inspection at any reasonable time after the Local Government has received a disbursement and before three (3) years have elapsed after the Department a final Project disbursement to the Local Government 8 03 ACCESS TO PROJECT SITE The Local Government shall provide access to Project sites and administrative offices to authorized representatives of the Department at any reasonable time The Local Government shall cause its engineers and contractors to cooperate during Project inspections including making available working copies of plans and specifications and supplementary materials 8 04 ASSIGNMENT OF RIGHTS UNDER AGREEMENT The Department may assign any part of its rights under this Agreement after notification to the Local Government The Local Government shall not assign rights created by this Agreement without the written consent of the Department 8 05 AMENDMENT OF AGREEMENT This Agreement may be amended in writing except that no amendment shall be permitted which is inconsistent with statutes rules regulations executive orders or written agreements between the Department and the U S Environmental Protection Agency This Agreement may be amended after all construction contracts are executed to reestablish the Project cost Loan amount Project schedule and Semiannual Loan Payment amount The final amendment shall be executed after the final Project coat has been determined by the Department The final figures shall be determined after the Project Close -out which is to be held no sooner than one year after the completion of construction 8 06 SEVERABILITY CLAUSE If any provision of this Agreement shall be held invalid or unenforceable the remaining provisions shall be construed and enforced as if such invalid or unenforceable provision had not been contained herein 8 07 EXECUTION OF AGREEMENT This Agreement shall be executed in three or more counterparts any of which shall be regarded as an original and all of which constitute but one and the same instrument The Agreement becomes effective upon execution ARTICLE IX - CONSTRUCTION CONTRACTS AND 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 (2) Detailed bid tabulation and the award recommendation certified by the engineer responsible for overseeing construction (3) Certified copy of the Local Government a tentative award resolution 13 (4) Certification of compliance with the conditions of the Department a approval of competitively or noncompetitively negotiated procurement (5) Certification that affirmative steps were taken to encourage participation of women s and minority business enterprises in Project construction and documentation of the intended use of such enterprises therein 9 02 SUBMITTAL OF CONSTRUCTION CONTRACT DOCUMENTS After the Department e authorization to award construction contracts has been received the Local Government shall submit bonding and insurance certifications construction and payment schedules notices to proceed with construction itemized construction cost breakdowns and executed contract documents 9 03 INSURANCE REQUIRED The Local Government shall require contractors to file performance and payment bonds for the full amount of the contracts The Local Government shall cause insurance including that issued through the National Flood Insurance Program authorized under 42 U S C secs 4001 -4128 when applicable to be obtained and maintained against such risks as is customary during construction The Local Government shall require contractors to furnish workers compensation comprehensive general liability vehicle liability and property damage insurance including builder s standard all -risk insurance to the extent that coverage is available from time to time against any one or more of such risks Contractors indemnification obligations shall be described in the construction contract documents The Local Government shall cause the Project as each part thereof is certified by the engineer responsible for overseeing construction as completed and the Sewer System (hereafter referred to as Revenue Producing Facilities ) to be insured by an insurance company or companies licensed to do business in the State of Florida against such damage and destruction risks as are customary for the operation of Revenue Producing Facilities of like size type and location in the amounts recommended by an independent consultant to the extent such insurance is obtainable from time to time against any one or more of such risks As documentation of insurance coverage the Local Government shall file the following with the Department (1) A certification describing the performance and payment bonds of contractors that have been retained for construction of the Project (2) A certification for each construction contract assuring that the required insurance is being carried during construction (3) A certification of insurance specifically describing the Project and the other Revenue Producing Facilities stating that these facilities are covered stating the specific risks covered the amount of coverage provided against those risks and whether the risks covered are those customarily insured against for Revenue Producing Facilities of like size type and location to the extent that such insurance is obtainable at the time of the certification and that the insurance coverage is adequate This certification shall be submitted annually and may be included as part of the certification required by Subsection 2 01(15) herein 14 (4) Such other certificates or documents by consultants insurance carriers or Local Government officials concerning insurance coverage as may reasonably be required by the Department Notwithstanding the foregoing provisions the Local Government may institute and maintain actuarially sound and prudent self - insurance programs with regard to such risks as shall be consistent with the recommendations of a qualified insurance consultant Such recommendations and supporting documentation shall be submitted to the Department The proceeds of insurance policies received as a result of damage to or destruction 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 Government shall provide additional funds to restore or replace the damaged portions of the facilities Repair construction or replacement shall be promptly completed The insurance provisions of this Section may be modified or waived to the extent permitted by law with the prior written consent of the Department ARTICLE % - DETAILS OF FINANCING 10 01 PRINCIPAL AMOUNT OF LOAN The amount of the Loan authorized is $4 537 836 Capitalized Interest in the estimated amount of $86 836 is included in the principal amount of the Loan but is not disbursed to the Local Government 10 02 PROJECT COSTS The Local Government and the Department acknowledge that the actual cost of the Project has not been determined as of the effective date of this Agreement Project cost adjustments may be made as a result of construction bidding or mutually agreed upon Project changes The final cost shall be established after all Project costs are reviewed subsequent to Project performance certification Changes in Project costs may also occur as a result of the Local Government a Project audit or a Department audit pursuant to Chapter 17 -503 of the Florida Administrative Code The Local Government agrees to the following estimates for the Project cost COST CATEGORY AMOUNT (1) Administrative Allowance (2) Allowance for Engineering (3) Construction and Demolition (4) Equipment and Materials (5) Land (6) Contingencies (7) Technical Services During Construction Contractual Force Account (8) Financing Short Term Refinancing $ 24,000 $ 297,000 $ 3,312,553 $ -0- $ -0- $ 331,255 $ 300,000 $ -0- $ -0- $ -0- 15 (9) Start -up Services $ 15,000 (10) Loan Repayment Reserve $ 85,596 (11) Loan Service Fee* $ 85,596 (12) Capitalized Interest $ 86,836 TOTAL COST $ 4,537,836 *The Loan Service Fee represents two percent of the Loan amount excluding the Capitalized Interest Loan Repayment Reserve and Loan Service Fee amounts that is 2 0 percent of $4 279 808 10 03 PROJECT SCHEDULE The Local Government agrees by execution hereof (1) The date by which formal advertising is to be published is September 25 1994 (2) The date by which bids are to be publicly opened is October 21 1994 (3) The disbursement of administrative and engineering allowances will be made upon request of the Local Government (4) The estimated schedule for Loan disbursements is set forth in Attachment B until such time as this Agreement is amended (5) The date scheduled for completion of Project construction is January 1 1996 (6) The Department shall conduct an inspection of the Project after construction completion at which time certain specific deadlines limiting Project cost eligibility shall be established A deadline for certification of the operational performance of the Project shall also be established These deadlines shall be incorporated into the Loan Agreement by amendment (7) The date by which the Loan Repayment Reserve Account is to be established by the Local Government and the date by which Monthly Loan Deposits are to begin is January 1 1996 (8) The date by which the first Semiannual Loan Payment becomes due is July 1 1996 (9) The date by which the first annual certification becomes due under Subsection 2 01(15) of this Agreement is October 1 1996 10 04 INTEREST RATE The rate of interest on the unpaid principal of the Loan is 3 17 percent per annum however if this Agreement is not executed by the Local Government and the Department before October 1 1994 the interest rate shall be adjusted pursuant to Section 17 -503 430 of the Florida Administrative Code 10 05 LOAN TERM The Loan shall be repaid in forty (40) Semiannual Loan Payments 10 06 REPAYMENT SCHEDULE The first Semiannual Loan Payment shall be computed based upon the principal amount of the Loan as estimated under Section 10 01 the estimated disbursement schedule identified in Attachment B and level 16 debt service Subsequent Semiannual Loan Payments may be adjusted based upon revised Project cost and disbursement information Any remaining installments shall be equal and shall be based upon the actual Project costa and actual dates and amounts of disbursements to the Local Government after adjustment for any overpayment or underpayment associated with the amount of previous Semiannual Loan Payments Actual Project coats shall be established after the Local Government a certification of Project performance the Department s inspection of the Project and associated records and amendment of the Loan Agreement Each Semiannual Loan Payment shall be in the amount of $154 050 55 The interest portion of each Semiannual Loan Payment shall be computed on the unpaid balance of the principal amount of the Loan including Capitalised Interest Interest shall be computed as of the due date of the Semiannual Loan Payment Semiannual Loan Payments shall be received by the Department beginning on or before July 1 1996 and semiannually thereafter on January 1 and July 1 of each year until all amounts due hereunder have been fully paid Funds transfer shall be made by electronic means or by means of magnetic tape when such transfer mechanisms are available IN WITNESS WHEREOF the Department has caused this Agreement to be executed on its behalf by the Secretary of the Department and the Local Government has caused this Agreement to be executed on its behalf by its Authorised Representative and by its affixed seal The effective date of this Agreement is the 22 day of Sa�ffet"Aa.r 1994 This Agreement incorporates Attachments A and B hereto Secretary Mayor STATE OF FLORIDA CITY OF CAPE CANAVERAL DEPARTMENT OF ENVIRONMENTAL PROTECTION ATTEST 6 �jL Ci*y Clerk SEAL 17 ATTA T A PROJECT The Project financed by this Loan is denoted by the Department a identifying Number CS120825020 It consists of furnishing all labor materials and equipment for upgrading the Local Government a wastewater treatment plant to achieve advanced wastewater treatment The proposed improvements include pretreatment facilities biological nutrient removal facilities clarification filtration and disinfection facilities and sludge dewatering facilities The Project shall be constructed in accordance with the plans and specifications entitled "City of Cape Canaveral Wastewater Treatment Plant Improvements and accepted by the Department The Project is in agreement with the Wastewater Facilities Plan City of Cape Canaveral Florida dated August 1993 Approval of this Project is provided by the Florida Finding of No Significant Impact dated April 29 1994 The Project is not an Equivalency Project as defined in Chapter 17 -503 of the Florida Administrative Code 18 ATTACEMENT 8 ESTIMATED LOAN The schedule for disbursement of the Loan is as follows Date Amount December 1994 $429 000 January 1995 429 000 February 1995 429 000 March 1995 386 000 April 1995 343 000 May 1995 300 000 June 1995 300 000 July 1995 300 000 August 1995 257 000 September 1995 257 000 October 1995 300 000 November 1995 300 000 December 1995 250 000 January 1996 134 000 January 1997 37 000 SCEEDULE The total amount to be disbursed is $4 451 000 This amount is equal to the Loan amount less Capitalized Interest and it includes the Loan Service Fee which is disbursed directly to the Department 19 STATE REVOLVING LOAN FUND AMENDMENT 1 TO LOAN AGREEMENT FOR PROJECT CS120825020 CAPE CANAVERAL This amendment is executed by the STATE OF FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION (Department) and the CITY OF CAPE CANAVERAL FLORIDA existing as a local government agency (Local Government) under the laws of the State of Florida WITNESSETH WHEREAS the Department and the Local Government entered into a State Revolving Fund Loan Agreement, Number CS120825020 authorizing the amount of $4 451,000 excluding Capitalized Interest and WHEREAS the Local Government is entitled to an Additional Completion Loan of $1 718 000 excluding Capitalized Interest pursuant to Chapter 62 -503 (formerly 17 -503) Florida Administrative Code and WHEREAS a separate interest rate is to be established for the Additional Completion Loan amount awarded in this amendment pursuant to Chapter 62 -503 Florida Administrative Code and WHEREAS a Loan Service Fee shall be paid by the Local Government for the Additional Completion Loan and may be included as part of the Loan amount pursuant to Chapter 62 -503 Florida Administrative Code WHEREAS the Semiannual Loan Payment amount the disbursement schedule and the Project coats need revision to reflect the adjustment in the Loan amount and WHEREAS the Project schedule needs revision to establish certain dates NOW THEREFORE the parties hereto agree as follows 1 An Additional Completion Loan in the amount of $1 718 000 excluding Capitalized Interest is hereby awarded to the Local Government 2 An interest rate of 2 92 percent per annum is established for the Additional Completion Loan amount awarded in this amendment however if this amendment is not executed by the Local Government and Department before October 1 1995 this interest rate may be adjusted pursuant to Chapter 62 -503 Florida Administrative Code 3 An additional Loan Service Fee in the amount of $33 039 for a total of $118 635, is hereby assessed and included in the principal amount of the Loan It shall be disbursed directly to the Department s Operating Trust Fund in the increments and at the times set forth in Chapter 62 -503, Florida Administrative Code 4 The principal amount of the Loan is hereby revised to include the authorized Loan amount to be disbursed of $6 169 000 and estimated Capitalized Interest of $27 405 for a total of $6 196 405 This total consists of the following 1 (a) $4 478 405 including $27 405 of Capitalized Interest at an interest rate of 3 17 percent per annum and (b) $1 718 000 at an interest rate of 2 92 percent per annum 5 The Semiannual Loan Payment amount is hereby revised and shall be in the amount of $209 042 Semiannual Loan Payments shall be received by the Department beginning on or before July 1 1996 and semiannually thereafter on January 1 and July 1 of each year until all amounts due hereunder have been fully paid Until this Agreement is further amended each Semiannual Loan Payment will be proportionally applied toward repayment of the amounts owed (based on disbursements Capitalized Interest and accrued interest) on each incremental Loan amount at the date such payment is due 6 Attachment B Estimated Loan Disbursement Schedule is deleted in its entirety and replaced with Attachment B Revision 1 7 Section 10 02 Project Costa is deleted in its entirety and replaced with Attachment C 8 Section 10 03 Project Schedule is deleted in its entirety and replaced with Attachment D All other terms and provisions of the Loan Agreement shall remain in effect This amendment to the Loan Agreement shall be executed in three or more counterparts any of which shall be regarded as an original and all of which constitute but one and the same instrument This amendment incorporates Attachments B C and D IN WITNESS WHEREOF the Department has caused this amendment to the Loan Agreement to be executed on its behalf by the Secretary of the Department and the Local Government has caused this amendment to be executed on its behalf by its Authorized Representative and by its affixed seal The effective date of this amendment shall be as set forth below by the Secretary of the Department for for STATE OF FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION PTY OF CAPE C PAVERAL Secretary Mayor JOHN K PORTER Date Attest l City Clerk SEAL 2 ATTACBNENT B REVISION 1 ESTIMATED LOAN The schedule for disbursement of the Loan proceeds follows Date Amount October 26 1994 $64 197 November 28, 1994 321,000 August 1995 250 000 September 1995 300 000 October 1995 350 000 November 1995 500 000 December 1995 700 000 January 1996 1 000 000 February 1996 1 500 000 March 1996 1 183 803 SCHEDULE The total amount to be disbursed is $6 169 000 This amount is equal to the Principal Loan amount less Capitalized Interest, and it includes the Loan Service Fee to be disbursed directly to the Department *This amount was disbursed directly to the Department a Operating Trust Fund in partial payment of the Loan Service Fee 3 ATTACHMENT C PROJECT COSTS The Local Government and the Department acknowledge that the actual cost of the Project has not been determined Project coat adjustments may be made as a result of mutually agreed upon Protect changes Additional Loan Repayment Reserve Account and Loan Service Fee amounts will be established for any Additional Completion Loan capitalized Interest will be recalculated based on actual dates and amounts of Loan disbursements The final cost shall be established after all Project costs are reviewed by the Department changes in Project costa may also occur as a result of the Local Government e Project audit or a Department audit pursuant to the Rule Funds disbursed in accordance with Section 4 08 of this Agreement shall be disbursed in the order in which they have been obligated without respect to budgetary line item estimates All disbursements shall be made from the original Loan amount until that amount has been disbursed the interest rate established for the original Loan amount shall apply to such disbursements for the purpose of determining the associated capitalized interest and repayment amounts The interest rate established for any additional increment of Loan funds obligated shall be used to determine the capitalized interest and repayment amounts associated with the funds disbursed from that increment The estimated Project costs are as follows COST CATEGORY (1) ( (3) (4) (5) (6) ( (8) (9) (10) (11) ( Administrative Allowance Allowance for Engineering Construction and Demolition Equipment and Materials Land Contingencies Technical Services Contractual Force Account Financing Short Term Refinancing Start -up Services SUBTOTAL During Construction Loan Repayment Reserve Loan Service Fee SUBTOTAL Capitalized Interest TOTAL *The Loan Repayment Reserve the Loan amount excluding Loan Service Fee amounts Loan Repayment Reserve an Completion Loan authorize and Loan Service Fee each represent two percent of the Capitalized Interest Loan Repayment Reserve and that is 2 0 percent of $5 931 730 The incremental d Loan Service Fee amounts for the Additional d by this amendment are each $33 039 AUTHORIZED LOAN COST AMOUNT TO DATE $ 42.840 $ 456.960 Line items $ 6.500.000 $ may vary $ 325.000 based on $ 300.000 actual disbursements $ 15.000 $ 7.639,800 $ 5.931.730 $ 152.796 $ 118.635 * $ 152.796 $ 118.635 * $ 7,945.392 $ 6.169.000 $ 27.405 $ 27.405 $ 7 972 797 $ 6 196 405 and Loan Service Fee each represent two percent of the Capitalized Interest Loan Repayment Reserve and that is 2 0 percent of $5 931 730 The incremental d Loan Service Fee amounts for the Additional d by this amendment are each $33 039 ATTACHMENT D PROJECT SCHEDULE The Local Government agrees by execution hereof (1) The disbursement of administrative and engineering allowances will be made upon request of the Local Government (2) The schedule for Loan disbursements is set forth in Attachment B Revision 1 (3) The date by which the Loan Repayment Reserve Account shall be established by the Local Government and the date by which Monthly Loan Deposits are to begin is January 1 1996 (4) The Department shall conduct an inspection of the Project after construction completion at which time certain specific deadlines limiting Project cost eligibility shall be established These deadlines shall be incorporated into the Loan Agreement by amendment (5) The date by which the first semiannual Loan Payment becomes due is July 1 1996 (6) The date by which the first annual certification comes due under Subsection 2 01(15) of the Agreement is October 1 1996 5 pRO1 Lawton Chiles Governor November 8 1995 Twin Towers Office Budding 2600 Blair Stone Road Tallahassee Florida 32399 2400 Honorable John K Porter Mayor City of Cape Canaveral 105 Polk Avenue Cape Canaveral Florida 32920 Re CS120825020 Loan Amendment 2 for Wastewater Treatment Facilities Dear Mayor Porter Virginia B Wetherell Secretary Enclosed are three original copies of proposed Amendment 2 to your State Revolving Fund loan agreement The amendment provides an additional $1628 000 for this project The amendment has been discussed with Mr Boucher Please sign the enclosed three copies and return them to us within 3 weeks We will arrange for Secretary Wetherell to sign the document and mail a fully executed copy to you If the amendment is not fully executed before January 1 1996 the loan may be subject to a higher interest rate If you have any questions please call Bob Holmden at (904) 488 8163 Smcer ly on W Berrylull P E Cluef Bureau of Water Facilities Funding DWB /mpt Enclosures cc Bennett Boucher Cape Canaveral Department of Environmental Protection Protect Conserve and Manage Flor do s Environment and Natural Resources P t d y I d pope COP'S STATE REVOLVING FUND AMENDMENT 2 TO LOAN AGREEMENT CS120825020 CITY OF CAPE CANAVERAL This amendment is executed by the STATE OF FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION (Department) and the CITY OF CAPE CANAVERAL FLORIDA, existing as a local government agency (Local Government) under the laws of the State of Florida WITNESSETH WHEREAS the Department and the Local Government entered into a State Revolving Fund Loan Agreement Number CS 120825020 as amended, authorizing a Loan amount of $6 169 000 excluding Capitalized Interest and WHEREAS the Local Government is entitled to an Additional Completion Loan of $1628 000 excluding Capitalized Interest, pursuant to Chapter 62 503 (formerly 17 503) Florida Administrative Code and WHEREAS a separate interest rate is to be established for the Additional Completion Loan amount awarded in this amendment pursuant to Chapter 62 503 and WHEREAS a Loan Service Fee shall be paid by the Local Government for the Additional Completion Loan and may be included as part of the Loan amount pursuant to Chapter 62 503 and WHEREAS the Semiannual Loan Payment amount the disbursement schedule and the Project costs need revision to reflect adjustment in the Loan amount NOW THEREFORE the parties hereto agree as follows I An Additional Completion Loan in the amount of $1628 000 excluding Capitalized Interest is hereby awarded to the Local Government t 2 An interest rate of 2 97 percent per annum is established for the Additional Completion Loan amount awarded in this amendment however if this amendment is not executed by the Local Government and Department before January 1 1996 this interest rate shall be adjusted pursuant to Chapter 62 503 Florida Administrative Code 3 An additional Loan Service Fee in the amount of $31308 for a total of $149 942 is hereby assessed and included in the principal amount of the Loan It shall be disbursed directly to the Department s Operating Trust Fund in the increments and at the times set forth in Chapter 62 503 Florida Administrative Code 4 The principal amount of the Loan is hereby revised to include the authorized Loan amount to be disbursed of $7 797 000 and estimated Capitalized Interest of $23 692 for a total of $7 820 692 This total consists of the followmg (a) $4 474 692 including $23 692 of Capitalized Interest at an interest rate of 3 17 percent per annum and (b) $1718 000 at an interest rate of 2 92 percent per annum (c) $1628 000 at an interest rate of 2 97 percent per annum 5 The Semiannual Loan Payment amount is hereby revised and shall be in the amount of $263 187 Such payments shall be received by the Department on or before July 1 1996 and semiannually thereafter on January 1 and July 1 of each year until all amounts due hereunder have been fully paid Until this Agreement is fiuther amended, each Semiannual Loan Payment will be proportionally applied toward repayment of the amounts owed (based on disbursements Capitalized Interest and accrued interest) on each incremental Loan amount at the date such payment is due 6 Attachment B Revision I Loan Disbursement Schedule is hereby deleted in its entirety and replaced with Attachment B Revision 2 attached hereto and made a part hereof 7 Attachment C Project Costs is hereby deleted in its entirety and replaced with Attachment C Revision 1 attached hereto and made a part hereof All other terms and provisions of the Loan Agreement shall remain in effect REMAINDER OF PAGE INTENTIONALLY LEFT BLANK This Amendment 2 to Loan Agreement CS 120825020 shall be executed m three or more counterparts any of which shall be regarded as an original and all of which constitute but one and the same instrument This amendment incorporates Attachments B and C hereto IN WITNESS WHEREOF the Department has caused this amendment to the Loan Agreement to be executed on its behalf by the Secretary of the Department and the Local Government has caused this amendment to be executed on its behalf by its Authorized Representative and by its affixed seal The effective date of this amendment shall be as set forth below by the Secretary of the Department for CIT}' F CAPE CANAVE�&MY Mayor JOHN K PORTER Attest City Clerk for STATE OF FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION Secretary Date ATTACHMENT B, REVISION 2 ESTIMATED LOAN DISBURSEMENT SCHEDULE The estimated schedule for disbursement of Loan proceeds follows Date Amount October 26 1994 $ 64 197 November 28 1994 321 000 August 29 1995 343 935 September 22 1995 24 779 October 1995 500 000 November 1995 500 000 December 1995 500 000 January 1996 500 000 February 1996 500 000 March 1996 500 000 April 1996 350 000 May 1996 347 089 June 1996 600 000 July 1996 600 000 August 1996 518 000 September 1996 628 000 October 1996 500 000 November 1996 500 000 The total Loan amount to be disbursed is $7 797 000 This amount is equal to the authorized Loan amount less Capitalized Interest and it includes the Loan Service Fee amount to be disbursed directly to the Department *These amounts were disbursed directly to the Department s Operating Trust Fund in partial payment of the Loan Service Fee pursuant to Chapter 62 503 Florida Administrative Code 4 ATTACB30NT C REVISION 1 PROJECT COSTS The Local Government and the Department acknowledge that the actual cost of the Project has not been determined Project cost adjustments may be made as a result of mutually agreed upon Project changes Additional Loan Repayment Reserve Account and Loan Service Fee amounts will be established for any Additional Completion Loan Capitalized Interest will be recalculated based on actual dates and amounts of Loan disbursements The final cost shall be established after all Project costs are reviewed by the Department Changes in Project costs may also occur as a result of the Local Government s Project audit or a Department audit pursuant to Chapter 62 503 Funds disbursed in accordance with Section 4 08 of this Agreement shall be disbursed in the order in which they have been obligated without respect to budgetary line item estimates All disbursements shall be made from the original Loan amount until that amount has been disbursed the interest rate established for the original Loan amount shall apply to such disbursements for the purpose of d etermining the associated Capitalized Interest and repayment amounts The interest rate established for any additional increment of Loan funds obligated shall be used to determine the Capitalized Interest and repayment amounts associated with the funds disbursed from that increment The estimated Project costs are as follows (1) Administrative Allowance 42 840 (2) Engineering Allowance 456 960 (3) Construction and Demolition 6 500 000 (4) Equipment and Materials 0 (5) Land 0 (6) Contingencies 325 000 (7) Technical Services During Construction 692 Contractual 300 000 Force Account 0 (8) Financing 692 Short Term 0 Refinancing (9) Project Performance Certification SUBTOTAL (10) Loan Repayment Reserve' (11) Loan Service Fee; SUBTOTAL (12) Capitalized Interest TOTAL 15 000 7 639 800 AUTHORIZED LOAN LMOUNT TO DATE ($) Line items may vary based on actual disbursements 7 497 116 152 796 149 942 152 796 149 942 7 945 392 7 797 000 23 692 23 692 7 969 084 7 820 692 *The Loan Service Fee and Loan Repayment Reserve each represent two percent of the Loan amount excluding the Capitalized Interest Loan Repayment Reserve and Loan Service Fee amounts The incremental amount for this amendment is 2 0 percent of $1565 385 that s $31308