18-2147 Amendment to Ord 17-2135 and Authorizing Finance for S. Longwood Phase II, Lake Ruth and Springwood Septic Tank Abatement ProjectsORDINANCE NO. 18-2147
AN ORDINANCE OF THE CITY OF LONGWOOD, FLORIDA,
AMENDING ORDINANCE 17-2134 AND AUTHORIZING THE
ISSUANCE DEBT IN THE PRINCIPAL AMOUNT OF $4,571,304 TO
FINANCE THE SOUTH LONGWOOD SEPTIC TANK ABATEMENT —
PHASE II PROJECT, LAKE RUTH SEPTIC TANK ABATEMENT PROJECT,
SPRINGWOOD SEPTIC TANK ABATEMENT PROJECT, AND THE
RONALD REAGAN BOULEVARD (CR 427) SEWER EXTENSION
PROJECT ALL INVOLVING THE ABATEMENT OF SEPTIC TANKS ON
PROPERTIES AND CONNECTION OF SUCH PROPERTIES TO THE
CITY'S WASTEWATER SYSTEM; AUTHORIZING THE EXECUTION AND
DELIVERY OF A CLEAN WATER STATE REVOLVING FUND
AMENDMENT 1 TO LOAN AGREEMENT WITH THE STATE OF
FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION AND
RELATED FINANCING DOCUMENTS; AND PROVIDING FOR
SEVERABILITY AND AN EFFECTIVE DATE.
WHEREAS, the City of Longwood (the "City") is vested with home rule authority pursuant to
Article VII, Section 2 of the Constitution of the State of Florida and Chapter 166, Florida Statutes,
to enact ordinances,
WHEREAS, the City Charter provides that authorization for the borrowing of money shall be
by ordinance of the City; and
WHEREAS, the adoption of this Ordinance shall constitute the City Commission's approval
of the issuance of debt and the borrowing of money in accordance with Sections 3 10 and 6.10(b)
of the City Charter; and
WHEREAS, on February 5, 2018, the City Commission adopted Ordinance 17-2134
authorizing the issuance of debt in the principal amount of $2,622,050.00 and the executing of the
Loan Agreement to procure and implement the necessary labor, materials and equipment for the
design, permitting, construction, installation and completion of the South Longwood Septic Tank
Abatement — Phase II project, Lake Ruth Septic Tank Abatement project, and Springwood Septic
Tank abatement project (collectively the defined as the "Project" in Ordinance 17-2134) and to
finance the Project through a loan with State of Florida Department of Environmental Protection
(the "Department"), and
WHEREAS, the findings and provisions of Ordinance 17-2134 are incorporated herein as if
fully set forth herein, and capitalized words herein shall have the same meaning as defined in
Ordinance 17-2134 unless defined differently herein, and
Ordinance No. 18-2147
Page 1 of 4
WHEREAS, the City of Longwood has executed the Loan Agreement (WW590510) with the
Department concerning the Project as authorized by Ordinance 17-2134, and
WHEREAS, the City Commission finds it necessary and in the best interest of the public's
health, safety and welfare to amend the Loan Agreement to increase the principal amount of the
debt to $4,571,304 in order to procure and implement the necessary labor, materials and
equipment for the design, permitting, construction, installation and completion of the Project (as
amended herein) by approving and executing the Clean Water State Revolving Fund Construction
Loan Agreement First Amendment attached hereto as Exhibit "A" (the "First Amendment"),
WHEREAS, the City Commission desires to amend the definition of "Project" as authorized
by Ordinance 17-2134 also authorize the Ronald Reagan Boulevard (CR 427) Sewer Extension
project and the use of the proceeds of the Loan Agreement as amended by the First Amendment
for such purposes.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF
LONGWOOD, FLORIDA:
SECTION 1. AUTHORIZATION. This Ordinance is enacted pursuant to the provisions of
Chapter 166, Part II, Florida Statutes, the City of Longwood Charter, and other applicable
provisions of law (the "Act")
SECTION 2. FINDINGS. The findings set forth above and those set forth in Ordinance 17-
2134 are incorporated herein by this reference and shall also apply to the approval of the First
Amendment.
SECTION 3. AMENDMENT OF PROJECT The definition of "Project" and the authorization
of the Project set forth in Ordinance 17-2134 is amended to add the Ronald Regan Boulevard (CR
427) Sewer Extension
SECTION 4. AUTHORIZATION OF FIRST AMENDMENT TO LOAN AGREEMENT. The City
Commission hereby authorizes the issuance of debt in the principal amount of up to $4,571,304.00
pursuant to the terms and conditions of the Loan Agreement as amended by the First Amendment
and does hereby authorize the execution and delivery on behalf of the City by the Mayor under
the seal of the City, attested by the City Clerk, of the First Amendment with the Department. The
First Amendment shall be in substantially the form thereof attached hereto and marked Exhibit "A"
and is hereby approved, with such changes therein as shall be approved by any of the authorized
officers executing the same, with such execution to constitute conclusive evidence of such officer's
approval and the City's approval of any changes therein from the form of the First Amendment
attached hereto.
SECTION S. GENERAL AUTHORITY. The members of the City Commission of the City and
the officers, attorneys and other agents or employees of the City are hereby authorized to do all
acts and things required of them by this Ordinance, or desirable or consistent with the
requirements hereof for the full punctual and complete performance of provisions herein and as
Ordinance No. 18-2147
Page 2 of 4
contemplated by the First Amendment. The Deputy Mayor and any other member of the City
Commission are authorized to do all things required or permitted by this Ordinance of the Mayor
in his absence or unavailability Neither the Mayor, any other members of the City Commission of
the City, any person executing the Loan Agreement or First Amendment or any related financing
documents, nor any other official, officer or employee of the City shall be liable personally hereon
or be subject to any personal liability or accountability by reason of the issuance of the debt
authorized herein or execution of the Loan Agreement, First Amendment or any other related
instruments or documents.
SECTION 6. SEVERABILITY OF INVALID PROVISIONS. If any one or more of the covenants,
amendments or provisions contained herein shall be held contraryto any express provisions of law
or contrary to the policy of express law, though not expressly prohibited, or against public policy,
or shall for any reason whatsoever be held invalid, then such covenants, amendments or
provisions shall be null and void and shall be deemed severable from the remaining covenants,
amendments or provisions hereof and shall in no way affect the validity of any of the other
provisions of this Ordinance.
SECTION 7. EFFECTIVE DATE. This Ordinance shall take effect immediately upon its
enactment by the City Commission of the City of Longwood, Florida by a vote of at least 4 of the 5
City Commissioners voting in favor of adoption.
FIRST READING 15th day of October, 2018.
SECOND READING AND ENACTMENT on this 5th day of November, 2018.
CITY OF LONGWOOD, FLORIDA
4'avor2
,
ATTEST
Miche'l KeK go, CIVIC, FCRM, City Clerk
Approved as to form and legality for use and reliance by the City of Longwood, Florida only -
Daniel W Langl6,City1tto(nef'
Ordinance No. 18-2147
Page 3 of 4
FLORIDA DEPARTMENT OF
Environmental Protection
Marjory Stoneman Douglas Building
3900 Commonwealth Boulevard
Tallahassee, Florida 32399-3000
FEDERAL EXPRESS DELIVERY -.SIGNATURE REQUIRED
November 16, 2018
Ms. Lisa L. Snead
Finance Director
City of Longwood
155 West Warren Avenue
Longwood, Florida 32750
Re: WW590510 —City of Longwood
Collection System Expansion
Dear Ms. Snead.
Rick Scott
Govemor
Carlos Lopez-Cantera
It Govemor
Noah Valenstein
Secretary
We are pleased to provide additional financing under the State Revolving Fund loan program
for construction of your project. Enclosed is one original of Amendment 1 to your loan. The
amendment is now in effect.
We congratulate you and your staff on your efforts and are pleased that we can continue
working with you on tlus project. If we may be of further assistance, please contact Sarah
LaRose at (850)245-296&
Si erely, W-04
Angel echt, Program Administrator
State Revolving Fund Management
AK/sl
Enclosure
cc. J.D Cox — City of Longwood
Richard Kornbluh — City of Longwood
Pat Smith — City of Longwood
Erin Giblm — Barnes, Ferland & Associate
Bryan Mantz — Public Resources Management Group, Inc
Don Berryhill — The Berryhill Group, LLC
STATE REVOLVING FUND
AMENDMENT 1 TO LOAN AGREEMENT WW590510
CITY OF LONGWOOD
This amendment is executed by the STATE OF FLORIDA DEPARTMENT OF
ENVIRONMENTAL PROTECTION (Department) and the CITY OF LONGWOOD,
FLORIDA, (the "Local Government") existing as a local governmental entity under the laws of
the State of Florida. Collectively, the Department and the Local Government shall be referred to
as "Parties" or individually as a "Party"
The Department and the Local Government entered into a Clean Water State Revolving Fund
Loan Agreement, Number WW590510, authorizing a Loan amount of $2,622,050, excluding
Capitalized Interest, and
The Local Government is entitled to additional financing of $1,949,254, excluding Capitalized
Interest; and
Loan repayment activities need rescheduling to give the Local Government additional time to
complete construction, and
Certain provisions of the Agreement need revision and several provisions need to be added to the
Agreement.
The Parties hereto agree as follows
Subsection 1 01(18) of the Agreement is deleted and replaced as follows
"Project" shall mean the works financed by this Loan and shall consist of furnishing all
labor, materials, and equipment to construct the Collection System Expansion project in
accordance with the plans and specifications accepted by the Department for the following
contracts
(a) "South Longwood Phase 2 Septic Tank Abatement and Lake Ruth and Springwood
Septic Tank Abatement", and
(b) "Ronald Reagan Boulevard (CR 427) Sewer Extension"
The Project is in agreement with the planning documentation accepted by the Department
effective August 4, 2017 A Florida Categorical Exclusion Notification was published on
June 16, 2017 and no adverse comments were received.
2. Subsections 2.03(1) and (5) of the Agreement are deleted and replaced as follows
(1) The financial assistance authorized pursuant to this Loan Agreement consists of the
following:
State Resources Awarded to the Local Government Pursuant to this Agreement Consist of the
Following Resources Sub ect to Section 215.97, F S
State
CSFA Title or
State
Program
CSFA
Fund Source
Funding
Appropriation
Number
Funding Source
Number
Description
Amount
Category
Wastewater
Wastewater
Original
Treatment and
37 077
Treatment
$4,571,304
140131
Agreement
Stormwater
Facility
Management TF
Construction
(5) Monitoring.
In addition to reviews of audits conducted in accordance with Section 215.97, F S., as
revised monitoring procedures may include, but not be limited to, on -site visits by Department
staff and/or other procedures. By entering into this Agreement, the Local Government agrees to
comply and cooperate with any monitoring procedures/processes deemed appropriate by the
Department. In the event the Department determines that a limited scope audit of the Local
Government is appropriate, the Local Government agrees to comply with any additional
instructions provided by the Department to the Local Government regarding such audit. The
Local Government understands its duty, pursuant to Section 20 055(5), F S., to cooperate with
the Inspector General in any investigation, audit, inspection, review, or hearing. The Local
Government will comply with this duty and ensure that any subcontracts issued under this
Agreement will impose this requirement, in writing, on its subcontractors
Section 6.01 of the Agreement is deleted and replaced as follows
6 01 EVENTS OF DEFAULT
Upon the occurrence of any of the following events (the Events of Default) all obligations
on the part of Department to make any further disbursements hereunder shall, if Department
elects, terminate. The Department may, at its option, exercise any of its remedies set forth in this
Agreement, but Department may make any disbursements or parts of disbursements after the
happening of any Event of Default without thereby waiving the right to exercise such remedies
and without -becoming liable to make any further disbursement:
(1) Failure 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 15 days.
(2) Except as provided in Subsection 6 01(1), failure to comply with the provisions of
this Agreement, failure in the performance or observance of any of the covenants or actions
required by this Agreement or the Suspension of this Agreement by the Department pursuant to
Section 8 14 below, and such failure shall continue for a period of 30 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, or if Local Government shall fail to
keep, observe or perform any of the terms, covenants, representations or warranties contained in
this Agreement, the Note, or any other document given in connection with the Loan (provided,
that with respect to non -monetary defaults, Department shall give written notice to Local
Government, which shall have 30 days to cure any such default), or is unable or unwilling to
meet its obligations thereunder
(4) An order or decree entered, with the acquiescence of the Local Government,
appointing a receiver of any part of the Water or Sewer System or Gross Revenues 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 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 Gross Revenues of the Water
or 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 60 days after filing.
(7) Any charge is brought alleging violations of any criminal law in the implementation
of the Project or the administration of the proceeds from this Loan against one or more officials
of the Local Government by a State or Federal law enforcement authority, which charges are not
withdrawn or dismissed within 60 days following the filing thereof.
(8) Failure of the Local Government to give immediate written notice of its knowledge
of a potential default or an event of default to the Department and such failure shall continue for
a period of 30 days.
4 Section 8 13 of the Agreement is deleted and replaced as follows
8 13 SCRUTINIZED COMPANIES.
(1) The Local Government certifies that it and its subcontractors are not on the
Scrutinized Companies that Boycott Israel List. Pursuant to Section 287 135, F S., the
Department may immediately terminate this Agreement at its sole option if the Local
Government or its subcontractors are found to have submitted a false certification, or if the Local
Government, or its subcontractors are placed on the Scrutinized Companies that Boycott Israel
List or is engaged in the boycott of Israel during the tern of the Agreement.
(2) If this Agreement is for more than one million dollars, the Local Government
certifies that it and its subcontractors are also not on the Scrutinized Companies with Activities
in Sudan, Scrutinized Companies with Activities in the Iran Petroleum Energy Sector List, or
engaged with business operations in Cuba or Syria as identified in Section 287 135, F S
Pursuant to Section 287 135, F S., the Department may immediately terminate this Agreement at
its sole option if the Local Government, its affiliates, or its subcontractors are found to have
submitted a false certification, or if the Local Government, its affiliates, or its subcontractors are
placed on the Scrutinized Companies that Boycott the Scrutinized Companies with Activities in
Sudan List, or Scrutinized Companies with Activities in the Iran Petroleum Energy Sector List,
or engaged with business operations in Cuba or Syria during the term of the Agreement.
(3) The Local Government agrees to observe the above requirements for applicable
subcontracts entered into for the performance of work under this Agreement.
(4) As provided in Subsection 287 135(8), F S., if federal law ceases to authorize these
contracting prohibitions then they shall become inoperative.
5 Additional financing in the amount of $1,949,254, excluding Capitalized Interest, is
hereby awarded to the Local Government.
6 A Financing Rate of 1 17 percent per annum is established for the additional
financing amount awarded in this amendment. Individually, the interest rate is 0.585 percent per
annum and the Grant Allocation Assessment rate is 0.585 percent per annum. However, if this
amendment is not executed by the Local Government and returned to the Department before
October 1, 2018, the Financing Rate may be adjusted.
7 The estimated principal amount of the Loan is hereby revised to $4,601,604, which
consists of $4,571,304 authorized for disbursement to the Local Government and $30,300 of
Capitalized Interest. This total consists of the following -
(a) Original Agreement of $2,640,150, including $2,622,050 authorized for
disbursement to the Local Government and $18,100 of Capitalized Interest, at a Financing Rate
of 0 83 percent per annum (the interest rate is 0 415 percent per annum and the Grant Allocation
Assessment rate is 0 415 percent per annum), and
(b) Amendment 1 of $1,961,454, including $1,949,254 authorized for disbursement to
the Local Government and $12,200 of Capitalized Interest, at a Financing Rate of 1 17 percent
per annum (the interest rate is 0.585 percent per annum and the Grant Allocation Assessment rate
is 0.585 percent per annum)
8 An additional Loan Service Fee in the amount of $38,985, for a total of $91,426, is
hereby estimated. The fee represents two percent of the Loan amount excluding Capitalized
Interest, that is, two percent of $4,571,304
9 The Semiannual Loan Payment amount is hereby revised and shall be in the amount
of $129,432. Such payments shall be paid to, and must be received by, the Department
beginning on April 15, 2020 and semiannually thereafter on October 15 and April 15 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 on each incremental Loan amount at the date such payment is due.
The Semiannual Loan Payment amount is based on the total amount owed of $4,693,030,
which consists of the Loan principal plus the estimated Loan Service Fee.
10 The Local Government and the Department acknowledge that the actual Project
costs have not been determined as of the effective date of this agreement. Project cost
adjustments may be made as a result of construction bidding or Project changes agreed upon by
the Department. Capitalized Interest will be recalculated based on actual dates and amounts of
Loan disbursements. If the Local Government receives other governmental financial assistance
for this Project, the costs funded by such other governmental assistance will not be financed by
this Loan. The Department shall establish the final Project costs after its final inspection of the
Project records. Changes in Project costs may also occur as a result of an audit.
Funds disbursed in accordance with Section 4 08 of this Agreement shall be disbursed in
the order in which they have been obligated without respect to budgetary line item estimates. All
disbursements shall be made from the original Loan amount until that amount has been
disbursed, the Financing Rate established for the original Loan amount shall apply to such
disbursements for the purpose of determining the associated Capitalized Interest and repayment
amount. The Financing Rate established for any additional increment of Loan financing shall be
used to determine the Capitalized Interest and repayment amount associated with the funds
disbursed from that increment.
The estimated Project costs are revised as follows
CATEGORY PROJECT COSTS ($) -
Construction and Demolition 4,322,160
Contingencies 95,434
Technical Services After Bid Opening 153,710
SUBTOTAL (Disbursable Amount) 4,571,304
Capitalized Interest 30,300
TOTAL (Loan Principal Amount) 4,601,604
11 Subsections 10 07(2), (3) and (4) of the Agreement are revised as follows
(2) Completion of Project construction is scheduled for October 15, 2019
(3) Establish the Loan Debt Service Account and begin Monthly Loan Deposits no later
than October 15, 2019
(4) The first Semiannual Loan Payment in the amount of $129,432 shall be due
April 15, 2020
12. Section 10 08 is added to the Agreement as follows
10 08 SPECIAL CONDITION
Prior to any funds being released, the Local Government shall submit a certified copy of
the Resolution which authorizes the application, establishes the Pledged Revenues, and
designates an Authorized Representative for signing the application and executing the Loan
Agreement.
13 All other terms and provisions of the Loan Agreement shall remain in effect.
This Amendment 1 to Loan Agreement WW590510 may be executed in two or more
counterparts, any of which shall be regarded as an original and all of which constitute but one
and the same instrument.
IN WITNESS WHEREOF, the Department has caused this Agreement to be executed on
its behalf by the Secretary or Designee and the Local Government has caused this Agreement to
be executed on its behalf by its Authorized Representative and by its affixed seal. The effective
date of this Agreement shall be as set forth below by the Department.
for
CITY ONGWOOD
Mayor
Attest:
Cd
r
SEA[.,
Approved as to form and legal sufficiency -
for
STATE OF FLORIDA
DEPARTMENT OF ENVIRONMENTAL PROTECTION
Z�_ ► I hq I ,c
Secretary or Designee Date
Michelle Longo
From: Michelle Longo
Sent: Friday, November 30, 2018 9:29 AM
To: 'sarah.larose@dep.state.fl.us'
Subject: State Revolving F ndu Amen ment_1 to..Loan Qr_eem nt WW5905 0
Attachments: State Revolving Fund Amendment 1 to Loan Agreement-WW590510_11-07-2018
_mailed.pdf
FileMailEnforce: 0
Hi Sarah
I wanted to follow up on the Amendment and confirm it has been received and when I should expect our signed copy be
returned? I attached the information mailed for your reference
Thanks!
Sincerely,
Michelle Longo, CIVIC, FCRM
City Clerk
City of Longwood
175 West Warren Avenue
Longwood, FL 32750
Direct: 407/ 260-3441
Fax: 407/ 260-3419
Disclaimer- Please Note Florida has a very broad public records law Most written communications to or from City
Officials regarding City business are public records available to the public and media upon request. Your e-mail
communications may be subject to public disclosure
The information contained in this email is confidential It is intended only for the use of the individual or entity to whom
it is addressed If you are not the recipient or employee responsible to the intended recipient, you are hereby notified
that any use, dissemination, distribution or copying of this communication is strictly prohibited If you have received this
email in error, please notify me by telephone or email immediately
Michelle Longo
From: Jammie Tackett
Sent: Tuesday, November 06, 2018 4.20 PM
To: Michelle Longo
Cc: 'Don'
Subject: Amendment Signed / Approved Ordinance
Attachments: 11A Agenda Memo - Ordinance 18-2147.doc; Amendment 1 (002).pdf
Hi Michelle,
I spoke with Don and he confirmed that wecan send a copy of the ordinance and (2) originals of the
amendment to Sarah LaRose address provided below Also I will need to send Bryan Goff a copy of the
ordinance. When you have a chance can you send me a copy of the final please.
Sarali�K°�I✓aRosey�, s,
v �� _ . , • _ yap r i -t_..
eenmenf.Operatio nsConsaltant I
StateC`Revolving•:F.,und;,Program,-,--
�•�s�f.;;¢1': i-:�. ,t�;- :�. _.-' Cam. -.
Divisiorr`iif`V1/ater Restoratio'n'tAssistance
Florid a..D.ept::of`E,nvironmental Protection
3900 Comrrionwealt-.Boulevar:d :M S�3505
TaIlahassee,;.FL 32399_;33000tryj-
sarah.larose@deP.state.fl.us
Thanks!
From: Jammie Tackett
Sent: Tuesday, October 30, 2018 8.45 AM
To: Sandra Johnson <sjohnson@longwoodfl.org>
Cc: Michelle Longo <mlongo@longwoodfl.org>
Subject: RE. Agenda Memo
Thank you very much for this0
From: Sandra Johnson
Sent: Monday, October 29, 2018 4.04 PM
To: Jammie Tackett <itackett@longwoodfl.org>
Cc: Michelle Longo <mlongo@longwoodfl.org>
Subject: Agenda Memo
Jammie,
,�l I -,1� I -a 6 � &-
UJ ��
UJIA rO
Since, I have not received an Agenda Memo for Ordinance No 18-2147 (Public Hearing) for the November 5, 2018
meeting, I have moved the Ordinance and Amendment 1 from October 15, 2018 meeting and have revised the Agenda
Memo
Thank you
Sandy Johnson
City of Longwood