20-1536 Agreement Reducing Financing of South Longwood Septic Tank AbatementRESOLUTION NO.20-1536
A RESOLUTION OF THE CITY OF LONGWOOD, FLORIDA, AUTHORIZING
THE EXECUTION AND DELIVERY OF A CLEAN WATER STATE REVOLVING
FUND AMENDMENT 2 TO LOAN AGREEMENT WITH THE STATE OF
FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION TO REDUCE
THE PRINCIPAL AMOUNT OF THE LOAN AUTHORIZED BY ORDINANCE 17-
2134 AND ORDINANCE 18-2147 CONCERNING THE FINANCING OF THE
SOUTH LONGWOOD SEPTIC TANK ABATEMENT— PHASE 11 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; 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, 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 City of Longwood has executed the Loan Agreement (WW590510) ("Loan
Agreement") with the Department concerning the Project as authorized by Ordinance 17-2-134; and
WHEREAS, on November 5, 2018, the City Commission adopted Ordinance 18-2147 to authorize
the First Amendment to the Loan Agreement to authorize the borrowing of funds and to increase the
principal amount of the debt under the Loan Agreement to $4,571,304 ("First Amendment"); and
WHEREAS, it has been determined that the Project can be completed for less than originally
anticipated, thus the City of Longwood desires to authorize the execution and delivery of a Second
Amendment to the Loan Agreement to reduce the loan principal amount by $1,568,707 and to reduce
the loan service fee.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LONGWOOD,
FLORIDA, AS FOLLOWS:
Resolution No. 20-1536
Page 1 of 3
SECTION 1. RECITALS. The foregoing findings are incorporated herein by reference and made a
part hereof.
SECTION 2. AUTHORIZATION OF SECOND AMENDMENT TO LOAN AGREEMENT. The City
Commission hereby approves the Second Amendment of the Loan Agreement to reduce the loan
amount and other matters as set forth therein 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 Second
Amendment with the Department. The Second 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 Second Amendment attached hereto.
SECTION 3. SEVERABILITY OF INVALID PROVISIONS. If any one or more of the covenants,
amendments or provisions contained herein shall be held contrary to 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 Resolution.
SECTION 4. EFFECTIVE DATE. This Resolution shall take effect immediately upon its adoption.
CITY COMMISSION
CITY OF LONGWOOD, FLORIDA
[SEAL] By� /
Matt Morgan, yo
ATTEST: r
s
Mich on erk
Approved as to form and legality for use and reliance by the City of Longwood, Florida only:
4��2- 9Z -
Daniel W(!anOye/elwAtorney
Resolution No. 20-1536
Page 2 of 3
EXHIBIT "A"
FORM OF LOAN AMENDMENT
Resolution No. 20-1536
Page 3 of 3
STATE REVOLVING FUND
AMENDMENT 2 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, (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 "Party".
The Department and the Local Government entered into a State Revolving Fund Loan
Agreement, Number WW590510, as amended, authorizing a Loan amount of $4,571,304,
excluding Capitalized Interest; and
The Loan Amount, Semiannual Loan Payment amount, Loan Service Fee, and Project costs need
adjustment to reflect actual costs; and
Certain provisions of the Agreement need to be revised.
The Parties hereto agree as follows:
1. The total amount awarded is reduced by $1,568,707. The revised total amount
awarded is $3,002,597.
2. The Loan Service Fee is reduced by $31,374, and the adjusted total service fee,
rounded to the nearest dollar, for this Loan is $60,052. The fee represents two percent of the Loan
amount excluding Capitalized Interest; that is, two percent of $3,002,597.
3. The total amount of the Loan is $3,079,523.48, which consists of $3,002,597.00
disbursed to the Local Government, $16,874.48 of accrued Capitalized Interest and $60,052.00
of service fee charges.
4. The total amount remaining to repay on the Loan is $2,961,267.02, which amount
accounts for the Department's receipt of 1 Semiannual Loan Payment and consists of the
following:
(a) The unpaid principal of the original loan of $2,535,425.61 and the unpaid service fee
charge of $52,441.00 both 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 unpaid principal of $365,789.41 and the unpaid service fee charge of
$7,61 1.00 both 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).
5. The Semiannual Loan Payment amount, adjusted to account for repayments received
to date, is hereby revised and shall be in the amount of $82,741.39. Such payments shall be
received by the Department on October 15, 2020 and semiannually thereafter on April 15 and
October 15 of each year until all amounts due hereunder have been fully paid.
6. Section 2.03 of the Agreement is 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 Subject 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
$3,002,597
140131
Agreement
Stormwater
Facility
Management TF
Construction
7. Project Costs are revised as follows:
The Local Government and the Department acknowledge that changes in Project costs
may occur as a result of an audit. Unless this Agreement is amended subsequent to an audit, the
following Project disbursements shall be final.
CATEGORY PROJECT COSTS M
Construction and Demolition 3,002,597.00
Capitalized Interest 16,874.48
TOTAL (Loan Principal Amount) 3,019,471.48
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 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 amendment to the Loan
Agreement to be executed on its behalf by the Secretary or Designee 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
Department.
for
C OF LONGWOOD
Ma
Attest* Approved as to form and legal sufficiency:
a�
i sty ey
SEAL
for
STATE OF FLORIDA
DEPARTMENT OF ENVIRONMENTAL PROTECTION
Secretary or Designee
Date
This Amendment 2 to Loan Agreement W W590510 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 amendment to the Loan
Agreement to be executed on its behalf by the Secretary or Designee 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
Department.
Attest
r'
i
SEAL,
for
CITY OF LONGWOOD
Ma
Approved as to form and legal sufficiency:
ty ey
for
STATE OF FLORIDA
DEPARTMENT OF ENVIRONMENTAL PROTECTION
Digitally signed by Trina Vielhauer
Trina VieIhaUer Date: 2020.06.19 12:14:07 -04'00'
Secretary or Designee Date