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2012-R-07 RESOLUTION NO. 2012-R-07 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EDGEWATER, VOLUSIA COUNTY, FLORIDA, AUTHORIZING THE CITY MANAGER TO SUBMIT AN APPLICATION TO THE FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION FOR FINANCIAL ASSISTANCE UNDER THE STATE REVOLVING FUND FOR POINT SOURCE WATER POLLUTION CONTROL THE WASTE WATER TREATMENT PLANT RENEWAL AND REPLACEMENT; IDENTIFYING REVENUES PLEDGED FOR REPAYMENT OF LOAN FUNDS; REPEALING RESOLUTIONS IN CONFLICT HEREWITH, PROVIDING FOR SEVERABILITY, AN EFFECTIVE DATE AND FOR ADOPTION. WHEREAS, the City Council of the City of Edgewater, has made the following determinations: WHEREAS, City staff has recommended that the City of Edgewater apply for financial assistance under the State Revolving Fund Point Source Water Pollution Control Program administered by the Florida Department of Environmental Protection for construction of Waste Water Treatment Plant Renewal and Replacement; and WHEREAS, City Council concurs with staff's recommendations and desires to authorize the submission of an application for financial assistance for the Waste Water Treatment Plant Renewal and Replacement; and WHEREAS, Florida Department of Environmental Protection requires a resolution authorizing the local government to apply for assistance as part of the loan application; and NOW, THEREFORE, BE IT RESOLVED by the People of the City of Edgewater, Florida as follows: PART A. STIPULATIONS. Section 1. The City Manager of the City of Edgewater, Florida, is hereby authorized to submit an application to the Florida Department of Environmental Protection for financial assistance under the State Revolving Fund Point Source Water Pollution Control Program for the Waste Water Treatment Plant Renewal and Replacement. #2012 -R -07 1 Section 2. The State Revolving Fund (SRF) loans are secured by a junior lien on and pledge of the net revenues of the water and sewer system. Section 3. The City Manager is authorized to provide assurances, execute the loan agreement, and represent the City of Edgewater in carrying out responsibilities under the loan agreement. PART B. SEVERABILITY AND APPLICABILITY. If any section, subsection, sentence, clause, phrase, or portion of this Resolution, or application hereof, is for any reason held invalid or unconstitutional by any Court, such portion or application shall be deemed a separate, distinct, and independent provision, and such holding shall not affect the validity of the remaining portions or applications hereof. PART C. CONFLICTING PROVISIONS. All resolutions, or parts thereof that are in conflict are hereby repealed. PART D. EFFECTIVE DATE. This resolution shall become effective immediately upon its adoption. PART E. ADOPTION. During the May 14, 2012 Council meeting, motion to approve was made b g Y g� pp y ecti nrlJrnan 1/-44inecLi with Second by O n o ; o Inloyt Ir vote on this resolution is as follows: AYE NAY Mayor Mike Thomas 4c i.,1 Scci Councilman Justin A. Kennedy X Councilwoman Gigi Bennington Councilman Mike Ignasiak X Councilman Gene Emter X #2012 -R -07 2 PASSED AND Duo ADOPTED this 14th day of May, 210 ATTEST: Bonnie Wenzel For the use and reliance only by the City of Edgewater, Florida. Approved as to form and legality by: Aaron R. Wolfe, Esquire City Attorney Doran, Sims, Wolfe, & Kundid CITY COUNCIL OF THE CITY OF EDGEWATER, FLORIDA By: c Afi lem9a at enn.r on Vitt -Mayor CJ Robin L. Matusick Paralegal Approved by the City Council of the City of Edgewater at a meeting held on this 14th day of May, 2012 under Agenda Item No. 8 k R2012-R-07 STATE OF FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION STATE REVOLVING LOAN PROGRAM for Point Source Water Pollution Control LOAN APPLICATION 0O1ECt1ON . Florida Department of Environmental Protection Bureau of Water Facilities Funding Twin Towers Office Building 2600 Blair Stone Road, MS 3505 Tallahassee, FL 32399 -2400 Form 62- 503.900(2) Effective Date 7 -29 -04 TABLE OF CONTENTS Page Number LOAN APPLICATION (1) SUBMITTAL 1 (2) COMPLETING THE APPLICATION 1 (3) ASSISTANCE 1 PART I - ADMINISTRATIVE INFORMATION (1) PROJECT SPONSOR 1 (2) AUTHORIZED REPRESENTATIVE 1 (3) PRIMARY CONTACT 1 (4) ADDITIONAL CONTACTS 1 (5) PROJECT NUMBER 1 (6) CAPITALIZATION GRANT PROJECT REQUIREMENTS 2 (7) FINANCIAL HARDSHIP 2 (8) DIRECT AND LEVERAGED LOANS 2 PART II - PROJECT INFORMATION A. PRECONSTRUCTION PROJECT (1) ACTIVITIES 2 (2) SCHEDULE 2 (3) COST 3 B. CONSTRUCTION PROJECT (1) ACTIVITIES 3 (2) SCHEDULE 3 (3) COST 3 PART III - FINANCIAL INFORMATION (1) PRINCIPAL 4 (2) TERMS AND REPAYMENT 4 (3) ANNUAL FUNDING LIMIT 4 (4) LOAN REPAYMENT RESERVE 4 (5) INFORMATION ON LIENS 4 (6) ACTUAL AND PROJECTED REVENUES 5 (7) AVAILABILITY OF PLEDGED REVENUES 5 (8) LOAN SERVICE FEE 5 PART IV - AUTHORIZATION AND ASSURANCES (1) AUTHORIZATION 5 (2) ASSURANCES 5 PART V - SUPPLEMENTARY INFORMATION SCHEDULE OF PRIOR AND PARITY LIENS 8 SCHEDULE OF ACTUAL REVENUES AND DEBT COVERAGE 9 SCHEDULE OF PROJECTED REVENUES AND DEBT COVERAGE 10 LIST OF ATTACHMENTS 11 ew69 loan app 2- 12.doc • LOAN APPLICATION (1) SUBMITTAL. Submit the application and attachments to the Department of Environmental Protection, MS 3505, Bureau of Water Facilities Funding, 2600 Blair Stone Road, Tallahassee, Florida 32399 -2400. (2) COMPLETING THE APPLICATION. (a) This application consists of five parts: (I) ADMINISTRATIVE INFORMATION; (II) PROJECT INFORMATION; (III) FINANCIAL INFORMATION; (IV) AUTHORIZATION AND ASSURANCES; and (V) SUPPLEMENTARY INFORMATION. (b) All information provided on this application must be printed. Monetary amounts may be rounded. (c) Forms and attachments to be submitted are denoted with italic print. (3) ASSISTANCE. Completing this application may require information that can be obtained from Bureau of Water Facilities Funding staff. Please call (850) 245 -8358 or SUNCOM 205 -8358 for assistance in completing this application. PART I - ADMINISTRATIVE INFORMATION (1) PROJECT SPONSOR City of Edgewater Federal Employer Identification Number 59 6000314 (2) AUTHORIZED REPRESENTATIVE (person authorized to sign or attest loan documents). Name Tracey Barlow Title City Manager Telephone (386) 424 -2400, FAX (386) 424 -2421 Email ttbarlow @CITYOFEDGEWATER.ORG ext. 1201 Mailing Address 104 North Riverside Drive, Edgewater, FL 32132 (3) PRIMARY CONTACT (person to answer questions regarding this application). Name Brad T. Blais, P.E. Title (386) 761 -6810 Telephone (386) 761 -6810 FAX (386) 761 -3977 Email bblais @qlha.com Employer Quentin L. Hampton Associates, Inc. Mailing Address Post Office Drawer 290247, Port Orange, FL 32129 (4) ADDITIONAL CONTACTS. If more than one additional person is to receive copies of Department correspondence, attach the information (Attachment # ). Name Brenda Dewees Title Environmental Services Director Telephone (386) 424 -2476 FAX (386) 424 -2480 Email bdewees@acityofedgewater.org Employer City of Edgewater Mailing Address 104 North Riverside Drive, Edgewater, FL 32132 (5) PROJECT NUMBER (listed on the Department's priority list). WW64052 Form 62- 503.900(2) Page 1 of 11 Effective Date 7 -29 -04 (6) CAPITALIZATION GRANT PROJECT REQUIREMENTS. An Applicant may have to comply with certain Federal requirements for loans from funds that, in aggregate, are equivalent to the amount of the federal grant awarded to the Department to partially capitalize the State Revolving Fund. Please check with the Department to determine if the project is subject to such requirements. Is this project subject to special federal requirements? ❑ Yes ® No If this project is subject to special federal requirements complete an EPA Preaward Compliance Review Report and attach in Part V, List of Attachments. (Attachment # ). (7) FINANCIAL HARDSHIP. To qualify for a financial hardship loan the affordability index of a small community to be served by the project shall be less than 100. A small community is a municipality or unincorporated community with a total service area population of 20,000 or less as of the most recent decennial census. Please check with the Department to determine if the project qualifies for a financial hardship loan. Does the loan qualify for financial hardship consideration? ❑ Yes ® No (8) DIRECT AND LEVERAGED LOANS. A local government project sponsor that receives a loan from proceeds of bonds issued by the Florida Water Pollution Control Financing Corporation will be subject to certain limitations resulting from the tax exempt status of such bonds. Please check with the Department to determine if the loan is subject to such limitations. Is this loan subject to the special leveraged loan limitations? n Yes ® No PART II — PROJECT INFORMATION If you are applying for a loan to plan and design a project that will involve construction, complete only Subpart A below. If you are applying for a loan to construct a project that is already planned and designed, complete only Subpart B below. A. PRECONSTRUCTION PROJECT Information should be provided for each separate facility to be planned and designed as appropriate. For design/build projects or those where multiple facilities, segments, or phases are involved, please attach information for activities, schedule, and cost for each. (Attachment # ) (1) ACTIVITIES. Attach a brief description of the scope of planning and design activities to be financed by this loan. Include a list of any specialized studies to be performed. (Attachment # ) Are these activities the same as those scheduled on Request for Inclusion Form? ❑ Yes ❑ No. If "No ", please explain. (Attachment # ) (2) SCHEDULE. (a) Provide proposed completion dates for the items. (Please call Department staff to discuss time frames needed to complete required tasks.) Planning documentation Engineering work Certification of site availability Permit (b) Do you anticipate that an interlocal agreement with another party will be necessary to n Yes ❑ No implement the project? If "Yes ", please explain. (Attachment # ) (c) Is this a design/build project? ❑ Yes ❑ No Form 62- 503.900(2) Page 2 of 11 Effective Date 7 -29 -04 (3) COST. Is the cost information submitted for the preconstruction loan priority list ❑ Yes ❑ No current? If "No ", please explain and submit revised cost information using the appropriate page of the Request for Inclusion Form. (Attachment # ) Note that the disbursable amount will be limited to the priority list amount. PRECONSTRUCTION LOAN APPLICANTS PROCEED TO PART III. B. CONSTRUCTION PROJECT (1) ACTIVITIES. (a) Attach a brief description of construction activities to be financed by this loan. Include a list of the construction contracts (by title) corresponding to the plans and specifications accepted by the Department (Attachment # 1 ). Are these contracts the same as those scheduled on the Request for Inclusion Form? ® Yes ❑ No If "No ", please explain. (Attachment # ) (b) Have any of the contracts been bid? ❑ Yes ® No If "Yes ", indicate which contracts have been bid. (Attachment # ) (c) Was the planning and design for this project financed with a preconstruction loan? ❑ Yes ® No If "Yes ", give the preconstruction loan number. (d) Does this project involve an interlocal agreement with other local governments or other ❑ Yes ® No entities? If "Yes ", attach a copy of the Department letter accepting the interlocal agreement. (Attachment # ) Is the interlocal agreement, as accepted by the Department, fully executed and ❑ Yes n No enforceable? If "No ", please explain (Attachment # ). (2) SCHEDULE. (month and year) (a) What is the estimated date for the start of construction? 5/12 (b) What is the estimated date for construction completion? 12/13 (c) What is the date for start up of the facilities? 12/13 (3) COST. Is the cost information submitted for the priority list current? ® Yes n No If "No", please explain and submit revised cost information using the appropriate page of the Request for Inclusion Form. (Attachment # ) Note that the disbursable amount will be limited to the priority list amount. Form 62- 503.900(2) Page 3 of 11 Effective Date 7 -29 -04 PART III - FINANCIAL INFORMATION Please check with the Department to establish estimates of the capitalized interest rate, project useful life for financial hardship loans, financing rate, pledged revenue coverage, limitations on annual loan amounts for large projects, applicability and amount of repayment reserves, amount of the loan service fee and any other information needed to complete this form. (1) PRINCIPAL. The requested amount of the loan, excluding capitalized interest is $5,641,097 The estimate of the capitalized interest is $105,000 based on a financing rate of 2.28% Note that the disbursable amount will be limited to the priority list amount and must be consistent with the project information provided under PART II of this application. Also note that the capitalized interest is an inexact estimate, and it is subject to adjustment by the Department to reflect actual disbursement timing. The principal amount of the loan does not include the loan service fee. (2) TERMS AND REPAYMENT. (a) Loans to local government project sponsors are amortized over the lesser of useful life of the project or 20 years unless the project is to serve a small community qualifying as having a financial hardship. Loans to financial hardship communities may be amortized over the lesser of useful life of the project or 30 years. Loans to non - governmental project sponsors are amortized over the lesser of the useful of the project or 10 years. Finance charges and principal are paid semiannually. What is the useful life of the project? 25 (years) Over how many years would you like to amortize the loan? 20 (years) (b) List all revenues that are to be pledged for repayment of this loan. Water, sewer, and impact fee revenues. (c) Pledged revenue receipts or collections by the project sponsor must exceed the amount of the repayments due to the Department unless there are other collateral provisions. The excess revenue, or coverage, generally is 15% of each repayment. What coverage is proposed for the loan? 15% (coverage percentage) (d) Is any other financial assistance being applied to this project? ❑ Yes ® No If "Yes ", please list. (Attachment # ) (3) ANNUAL FUNDING LIMIT. Large project funding (generally, loans in excess of $10 million) may be provided in increments pursuant to the initial loan agreement and subsequent amendments. Each increment shall have a separate financing rate as established in the agreement or amendment providing that increment. (4) LOAN REPAYMENT RESERVE. Subject to the Department's approval, a local government may establish a restricted or assigned reserve account, using its own funds, in an amount not less than the sum of two semiannual loan repayments in order to reduce the pledged revenue coverage requirement to as low as 1.0 times the annual debt service. Is a reserve expected to be established using local funds? ❑ Yes ® No If "Yes," describe the locally funded reserve. (Attachment # ) (5) INFORMATION ON LIENS. (a) Describe, if applicable, all debt obligations having a prior or parity lien on the revenues pledged to repay this loan. (Attachment # 2) For example: City Name, Florida, Water and Sewer System Revenue Bonds, Series 1996, issued in the amount of $10,000,000, pursuant to Ordinance No. 93 -104, as amended and supplemented by Ordinance No. 96 -156. Form 62- 503.900(2) Page 4 of 11 Effective Date 7 -29 -04 • (b) Using the Part V, Schedule of Prior and Parity Liens, provide debt service information, if applicable, on each prior and parity obligation. (c) For the listed obligations, provide a copy of the ordinance(s), resolution(s), official statement(s), or pages thereof, setting forth the definitions, use of proceeds, debt service schedule, pledged revenues, rate covenants, provisions for issuing additional debt, provisions for bond insurance, and debt rating. (Attachment # ). (d) Describe any other notes and loans payable from the revenues pledged to repay this loan. (Attachment # ). (6) ACTUAL AND PROJECTED REVENUES. (a) Complete the Part V, Schedule of Actual Revenues and Debt Coverage for the past two fiscal years. (b) Complete the Part V, Schedule of Projected Revenues and Debt Coverage, demonstrating the availability of pledged revenues for loan repayment. (7) AVAILABILITY OF PLEDGED REVENUES. All sources must be supported by a written legal opinion. (Attachment # 3) The opinion must address the following: (a) Availability of the revenues to repay the loan. (b) Right to increase rates at which revenues shall be collected to repay the loan. (c) Subordination of the pledge if pledged revenues are subject to a prior or parity lien. (8) LOAN SERVICE FEE. A loan service fee is assessed on each loan. The fee is not part of the loan. The fee along with interest thereon will be deducted from the first available repayments after the final amendment to the loan agreement. PART IV — AUTHORIZATION AND ASSURANCES (1) AUTHORIZATION. Provide an authorizing resolution of the Applicant's governing body or other evidence of authorization (Attachment # 4 ) for the following: (a) Pledging revenues to repay the loan. (b) Designation of the Authorized Representative(s) to file this application, provide assurances, execute the loan agreement, and represent the Applicant in carrying out responsibilities (including that of requesting loan disbursements) under the loan agreement. (2) ASSURANCES. The Applicant agrees to comply with the laws, rules, regulations, policies and conditions relating to the loan for this project. Applicants should seek further information from the Bureau of Water Facilities Funding staff as to the applicability of the requirements if the necessity for the assurances are of concern. Specifically, the Applicant certifies that it has complied, as appropriate, and will comply with the following requirements, as appropriate, in undertaking the Project: (a) Assurances for capitalization grant projects. 1. Complete all facilities for which funding has been provided. 2. The Archaeological and Historic Preservation Act of 1974, PL 93 -291, and the National Historic Preservation Act of 1966, PL 89 -665, as amended, regarding identification and protection of historic properties. 3. The Clean Air Act, 42 U.S.C. 7506(c), which requires conformance with State Air Quality Implementation Plans. 4. The Coastal Zone Management Act of 1972, PL 92 -583, as amended, which requires assurance of project consistency with the approved State management program developed under this Act. 5. The Endangered Species Act, 16 U.S.C. 1531, et seq., which requires that projects avoid disrupting threatened or endangered species and their habitats. Form 62- 503.900(2) Page 5 of 11 Effective Date 7 -29 -04 6. Executive Order 11593, Protection and Enhancement of the Cultural Environment, regarding preservation, restoration and maintenance of the historic and cultural environment. 7. Executive Order 11988, Floodplain Management, related to avoiding, to the extent possible, adverse impacts associated with floodplain occupancy, modification and development whenever there is a practicable alternative. 8. Executive Order 11990, Protection of Wetlands, related to avoiding, to the extent possible, adverse impacts associated with the destruction or modification of wetlands and avoiding support of construction in wetlands. 9. The Fish and Wildlife Coordination Act, PL 85 -624, as amended, which requires that actions to control natural streams or other water bodies be undertaken to protect fish and wildlife resources and their habitats. 10. The Safe Drinking Water Act, Section 1424(e), PL 93 -523, as amended, regarding protection of underground sources of drinking water. 11. The Wild and Scenic Rivers Act, PL 90 -542, as amended, related to protecting components or potential components of the national wild and scenic rivers system. 12. The federal statutes relating to nondiscrimination, including: The Civil rights Act of 1964, PL 88 -352, which prohibits discrimination on the basis of race, color or national origin; the Age Discrimination Act, PL 94 -135, which prohibits discrimination on the basis of age; Section 13 of the Federal Water Pollution Control Act, PL 92 -500, which prohibits sex discrimination; the Rehabilitation Act of 1973, PL 93 -112, as amended, which prohibits discrimination on the basis of handicaps. 13. Executive Order 11246, Equal Employment Opportunity, which provides for equal opportunity for all qualified persons. 14. Executive Orders 11625 and 12138, Women's and Minority Business Enterprise, which require that small, minority, and women's business and labor surplus areas are used when possible as sources of supplies, equipment, construction and services. 15. The Coastal Barrier Resources Act, 16 U.S.C. 3501 et seq., regarding protection and conservation of the coastal barrier resources. 16. The Farmland Protection Policy Act, 7 U.S.C. 4201 et seq., regarding protection of agricultural lands from irreversible loss. 17. The Uniform Relocation and Real Property Acquisition Policies Act of 1970, PL 91 -646, which provides for fair and equitable treatment of persons displaced or whose property is acquired as a result of federal or federally assisted programs. 18. The Demonstration Cities and Metropolitan Development Act of 1966, PL 89 -754, as amended, which requires that projects be carried out in accordance with area wide planning activities. 19. Section 306 of the Clean Air Act, Section 508 of the Clean Water Act and Executive Order 11738, which prohibit manufacturers, firms, or other enterprises on the EPA's list of Violating Facilities from participating in the Project. 20. Executive Order 12549, Debarment and Suspension, which prohibits any award to a party which is debarred or suspended or is otherwise excluded from, or ineligible for, participation in federal assistance programs. 21. Minority and Women's Business Enterprise participation in project work using numerical goals, established by the U.S. Environmental Protection Agency, and to be set forth in the specifications for construction and materials contracts. (b) Assurances for other projects. 1. Chapter 161, Part I, F.S., "Beach and Shore Preservation Act" and Part III, "Coastal Zone Protection Act of 1985" which regulate coastal zone construction and all activities likely to affect the condition of the beaches or shore. Form 62- 503.900(2) Page 6 of 11 Effective Date 7 -29 -04 2. Chapter 163, Part II, F.S., the "Local Government Comprehensive Planning and Land Development Regulation Act" which requires units of local government to establish and implement comprehensive planning programs to control future development. 3. Chapter 186, F.S., State and Regional Planning, which requires conformance of projects with Regional Plans and the State Comprehensive Plan. 4. Chapter 253, F.S., "Emergency Archaeological Property Acquisition Act of 1988" which requires protection of archaeological properties of major statewide significance discovered during construction activities. 5. Chapter 258, Part III, F.S., which requires protection of components or potential components of the national wild and scenic rivers system. 6. Chapter 267, F.S., the "Florida Historical Resources Act" which requires identification, protection, and preservation of historic properties, archaeological and anthropological sites. 7. Chapter 287, Part I, F.S., which prohibits parties convicted of public entity crimes or discrimination from participating in State - assisted projects and which requires consideration of the utilization of Minority Business Enterprises in State - assisted projects. 8. Chapter 372, F.S., the Florida Endangered and Threatened Species Act which prohibits the killing or wounding of an endangered, threatened, or special concern species or intentionally destroying their eggs or nest. 9. Chapter 373, Part N, F.S., Florida Water Resources Act of 1972, which requires that activities on surface waters or wetlands avoid adversely affecting: public health, safety, welfare, or property; conservation of fish and wildlife, including endangered or threatened species or their habitats; navigation or the flow of water; the fishing or recreational values or marine productivity; and significant historical and archaeological resources. 10. Chapter 380, Part I, F.S., Florida Environmental Land and Water Management Act of 1972 as it pertains to regulation of developments and implementation of land and water management policies. 11. Chapter 381, F.S., Public Health, as it pertains to regulation of onsite wastewater systems. 12. Chapter 403, Part I, F.S., Florida Air and Water Pollution Control which requires protection of all waters of the state. 13. Chapter 582, F.S., Soil and Water Conservation Act which requires conformance with Water Management District's regulations governing the use of land and water resources. 14. Governor's Executive Order 95 -359, which requires State Clearinghouse review of project planning documentation and intergovernmental coordination. I, the undersigned Authorized Representative of the Applicant, hereby certify that all information contained herein and in the attached is true, correct, and complete to the best of my knowledge and belief. I further certify that I have been duly authorized to file the application and to provide these assurances. Signed this Day of , 20 Authorized Representative Tracey T. Barlow (signature) (name typed or printed) Attachments Form 62- 503.900(2) Page 7 of 11 Effective Date 7 -29 -04 PART V — SUPPLEMENTARY INFORMATION SCHEDULE OF PRIOR AND PARITY LIENS (EXCLUDING SRF LOANS) List annual debt service beginning two years before the anticipated loan agreement date and continuing at least three additional fiscal years. Use additional pages as necessary. #1 #2 #3 Identify Each Obligation Water and Wastewater Water and Sewer SRF# CS 120794020 Refunding Note, Series Revenue Note, Series 2009 2002 Coverage 115 % 100 % 115 % Insured? Yes X No Yes X No Yes X No Total Debt Fiscal Annual Debt Service (Principal Plus Interest) Total Service Incl. Year #1 #2 #3 Debt Service Coverage 2010 $1,044,325 $ 556,756 $ 86,683 $ $ 2011 $ 735,361 $ 530,426 $ 86,683 $ $ 2012 $ 822,960 $ 524,951 $ 86,683 $ $ 2013 $ 818,580 $ 519,475 $ 516,458 $ $ 2014 $ 823,690 $ 0 $ 516,458 $ $ 2015 $ 827,950 $ 0 $ 516,458 $ $ 2016 $ 826,360 $ 0 $ 516,458 $ $ 2017 $4,534,090* $ 0 $ 516,458 $ $ 2018 $ 0 $ 0 $ 0 $ $ 2019 $ 0 $ 0 $ 0 $ $ 2020 $ 0 $ 0 $ 0 $ $ 2021 $ 0 $ 0 $ 0 $ $ 2022 $ 0 $ 0 $ 0 $ $ 2023 $ 0 $ 0 $ 0 $ $ 2024 $ 0 $ 0 $ 0 $ $ 2025 $ 0 $ 0 $ 0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Form 62- 503.900(2) Page 8 of 11 Effective Date 7 -29 -04 PART V - SUPPLEMENTARY INFORMATION SCHEDULE OF PRIOR AND PARITY LIENS (EXCLUDING SRF LOANS) List annual debt service beginning two years before the anticipated loan agreement date and continuing at least three additional fiscal years. Use additional pages as necessary. #4 #5 #6 Identify Each Obligation SRF# CS120794030 SRF# DW64050 SRF# DW64051 Coverage 115 % 115 % 115 % Insured? Yes X No Yes X No Yes X No Total Debt Fiscal Annual Debt Service (Principal Plus Interest) Total Service Incl. Year #4 #5 #6 Debt Service Coverage 2010 $ 212,521 $ 0 $ 0 $1,900,285 $2,101,815 2011 $ 212,521 $ 0 $ 0 $1,564,991 $1,720,176 2012 $ 212,521 $ 10,316 $ 18,038 $1,675,469 $1,848,047 2013 $ 212,521 $ 10,316 $ 18,038 $2,095,388 $2,331,775 2014 $1,294,980 $ 10,316 $ 18,038 $2,663,482 $3,063,004 2015 $1,294,980 $ 10,316 $ 18,038 $2,667,742 $3,067,903 2016 $1,294,980 $ 10,316 $ 18,038 $2,666,152 $3,066,075 2017 $1,294,980 $ 10,316 $ 18,038 $6,373,882 $7,329,964 2018 $1,294,980 $ 10,316 $ 18,038 $1,323,334 $1,521,834 2019 $ 0 $ 10,316 $ 18,038 $ 28,354 $ 32,607 2020 $ 0 $ 10,316 $ 18,038 $ 28,354 $ 32,607 2021 $ 0 $ 10,316 $ 18,038 $ 28,354 $ 32,607 2022 $ 0 $ 10,316 $ 18,038 $ 28,354 $ 32,607 2023 $ 0 $ 10,316 $ 18,038 $ 28,354 $ 32,607 2024 $ 0 $ 10,316 $ 18,038 $ 28,354 $ 32,607 2025 $ 0 $ 10,316 $ 18,038 $ 28,354 $ 32,607 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Form 62- 503.900(2) Page 8A of 11 Effective Date 7 -29 -04 PART V — SUPPLEMENTARY INFORMATION SCHEDULE OF ACTUAL REVENUES AND DEBT COVERAGE (Provide information for the two fiscal years preceding the anticipated date of the SRF loan agreement.) FY 2009 FY 2010 (a) Operating Revenues (Source) Water and Sewer Sales 6,907,413 7,085,984 (b) Interest Income (3,401) 161,505 (c) Other Income or Revenue (Identify) Miscellaneous 89,322 76,719 (d) Total Revenues 6,993,334 7,324,208 (e) Operating Expenses (excluding interest on debt, depreciation, and other non -cash items) 5,314,998 4,916,254 (t) Net Revenues [(f) = (d) — (e)] 1,678,336 2,407,954 (g) Debt Service (including any required coverage) 3,422,810 2,101,815 (h) Attach audited annual financial report(s), or pages thereof, or other documentation necessary to support the above information. Include any notes or comments from the audit reports regarding compliance with covenants of debt obligations having a prior or parity lien on the revenues pledged for repayment of the SRF Loan. (Attachment # 5) (i) Attach worksheets reconciling this page with the appropriate financial statements (for example, backing out depreciation and interest payments from operating expenses). (Attachment # ) (j) If the net revenues were not sufficient to satisfy the debt service and coverage requirement, please explain what corrective action was taken. (Attachment # ) Form 62- 503.900(2) Page 9 of 11 Effective Date 7 -29 -04 PART V — SUPPLEMENTARY INFORMATION SCHEDULE OF PROJECTED REVENUES AND DEBT COVERAGE Begin with the fiscal year preceding first anticipated semiannual loan payment and continuing for at least three additional years. Attach a separate page for previous State Revolving Fund loans. (Attachment # 6 ) FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 (a) Operating Revenue 7,669,501 8,248,796 8,890,681 9,606,958 9,921,458 (b) Interest Income 42,856 65,501 78,378 88,828 80,573 (c) Other Income or Revenue (identify) Fees and Misc. charges ** 837,734 854,120 871,326 889,392 898,877 Impact Fees 115,444 192,406 288,609 384,812 577,218 (d) Total Revenues 8,665,535 9,360,823 10,128,994 10,969,990 11,478,126 (e) Operating Expenses (excluding interest on debt, depreciation, and other non -cash items) 5,713,570 5,953,907 6,206,430 6,471,899 6,748,520 (1) Net Revenues (g = e - f) 2,951,965 3,406,916 3,922,564 4,498,091 4,729,606 (g) Revenue (including coverage) pledged to debt service, excluding SRF loans 1,460,842 947,244 952,143 950,314 5,214,204* (h) Revenue (including coverage) pledged to outstanding SRF loans 870,933 2,115,761 2,115,761 2,115,761 2,115,761 (i) Revenue Available for this SRF Loan [(i) = (f) — (g) — (h)] 620,190 343,911 854,660 1,432,016 (2,600,359)* (j) Identify the source of the above information and explain methods used to develop the projections (Attachment # 7 ). Include an explanation of any revenue and expense growth or other adjustments; for example, any rate increases, service growth, inflation adjustments, expense adjustments reflecting the cost of operating additional facilities, or other considerations. (k) For construction loans, are the above projections consistent with the accepted financial ® Yes ❑ No feasibility information? If "No ", please explain. (Attachment # ) Escalation in user charge water and sewer revenue and operating expenses for FY 13 — FY 17 are based upon rate study projections calculated by Burton and Associates (pages 46 and 47 on attached Schedule 8). * The City plans on refinancing the bank note an additional five years in FY 17 or before. * *The detail of what is included in Other Income or Revenues category is described on page 36 of Schedule 4 of rate study (copy attached). Form 62- 503.900(2) Page 10 of 11 Effective Date 7 -29 -04 PART V — SUPPLEMENTARY INFORMATION LIST OF ATTACHMENTS LIST OF ATTACHMENTS. This application requires the submittal of Attachments to provide supplemental information. The application is not complete without the completed List of Attachments. Please list all attachments that you are including with this application form. Attachment Number Project Description — Construction 1 Prior Debt Obligations 2 Attorney Opinion Letter 3 Authorizing Resolution 4 Audit Reports 5 Previous SRF Loans 6 Supporting Documentation for Revenue and Expense Projections 7 Form 62- 503.900(2) Page 11 of 11 Effective Date 7 -29 -04 ATTACHMENT #1: PROJECT DESCRIPTION The proposed Wastewater Treatment Facility Renewal and Replacement project involves upgrading existing facilities and replacing/upgrading all deteriorated mechanical and electrical equipment. The existing process systems and equipment were constructed in 1990. It is all 20+ years old and reached the end of its `useful life'. Significant advancements in equipment technology and control devices will allow the City to improve the plant's reliability and treatment capabilities. New variable frequency drive (VFD) technology and PLC devices will also increase electrical efficiency. The combination of improved treatment capability and reduced energy consumption will serve to reduce effluent nutrient concentrations, energy consumption and carbon emissions. The project includes renewal and replacement of most major pumps and mechanical equipment within the wastewater treatment plant. A new clarifier, generator, centrifuge, laboratory, and electrical building will be constructed. Start Construction: May 2012 Completion Date: December 2013 Construction Contract: WWTP Renewal and Replacement ew69 loan app attachments.doc ATTACHMENT #2: PRIOR DEBT OBLIGATIONS Debt obligations having a prior or parity lien include the following: City of Edgewater, Florida Water and Wastewater System Refunding Revenue Bond, Series 2009 $7,945,000 City of Edgewater, Florida Water and Sewer Revenue Note, Series 2002 $5,140,000 State of Florida Revolving Fund Loan Project: 1) CS120794020 2) CS120794030 3) DW64050 4) DW64051 ew69 loan app attachments.doc ATTACHMENT #3: ATTORNEY OPINION LETTER ew69 loan app attachments.doc DRAFT LETTER FOR CITY ATTORNEY March 9, 2012 Mr. Robert Holmden, P.E., Chief Bureau of Water Facilities Funding Florida Department of Environmental Protection Twin Towers Office Building 2600 Blair Stone Road Tallahassee, FL 32399 -2400 City of Edgewater S.R.F. Project# DW64052 WWTP Renewal and Replacement Dear Mr. Holmden: I am the duly appointed City Attorney for the City of Edgewater, Florida and am advised that the City proposes to borrow approximately $5,641,097 plus capitalized interest, pursuant to the State Revolving Fund Water Facilities Funding loan application for construction of the City's WWTP Renewal and Replacement project (the "Loan"). The Loan is proposed to be secured by a pledge of the net revenues of the City's water and sewer system and impact fees ( "Net Revenues "). This is to advise you that the Net Revenues are currently pledged to certain outstanding obligations indentified below. Additionally, under the terms of these obligations, the City is required to set rates at a level sufficient to pay, among other things, all obligations payable from the Net Water, Sewer, and Impact Fee Revenues. The Pledged Revenues shall be expressly subject and subordinate to the following prior liens: City of Edgewater Water and Wastewater System Refunding Revenue Bond, Series 2009 City of Edgewater Water and Sewer Revenue Note, Series 2002 Florida Department of Environmental Protection, SRF Loan# CS 120794020 Florida Department of Environmental Protection SRF Loan# CS120794030 Florida Department of Environmental Protection SRF Loan# DW64050 Florida Department of Environmental Protection SRF Loan#DW64051 Under Florida law and the provisions of the outstanding obligations, the City is authorized to pledge the Net Revenues and has legal authority to increase rates to provide for the payment of the Loan. ew69 loan app attachments.doc If we can be of further assistance to you in connection with the Loan, please contact us at your convenience. Sincerely, Carolyn S. Ansay, Esquire City Attorney CSA/km cc: John McKinney, City of Edgewater Brenda Dewees, City of Edgewater ew69 loan app attachments.doc ATTACHMENT #4: AUTHORIZING RESOLUTION ew69 loan app attachments.doc ATTACHMENT #5: AUDIT REPORTS Available at www.cityofedgewater.org ew69 loan app attachments ATTACHMENT #6: PREVIOUS SRF LOANS State of Florida Revolving Fund Loan Project: 1) C S 120794020 2) CS 120794030 3) DW64050 4) DW64051 ew69 loan app attachments ATTACHMENT #7: SUPPORTING DOCUMENTATION FOR REVENUE AND EXPENSE PROJECTIONS Escalation in user charge water and sewer revenue and operating expenses for FY13 — FY17 are based upon rate study projections calculated by Burton and Associates. ew69 loan app attachments