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4th Amendment 10/12/2015AMENDMENT 4 TO LOAN AGREEMENT WW440710 MONROE COUNTY This amendment is executed by the STATE OF FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION (Department) and MONROE COUNTY, FLORIDA, (the "Local Government") existing as a local governmental agency under the laws of the State of Florida. WITNESSETH: WHEREAS, the Department and the Local Government entered into a Clean Water State Revolving Fund Loan Agreement, Number W W440710, as amended, authorizing a Loan amount of $101,000,000, excluding Capitalized Interest; and WHEREAS, the Local Government is entitled to additional financing of $19,000,000, excluding Capitalized Interest; and WHEREAS, revised provisions for audit and monitoring are needed; and WHEREAS, a Financing Rate must be established for the additional financing amount awarded in this amendment; and WHEREAS, a Loan Service Fee must be estimated for the additional financing; and WHEREAS, the Semiannual Loan Payment amount needs revision to reflect an adjustment in the Loan amount. NOW, 1. Section 2.03 of the Agreement is deleted and replaced in its entirety and replaced as follows: The Local Government agrees to the following audit and monitoring requirements. Funds provided under this Agreement have been identified as second -tier monies under the Federal Clean Water Act which are identified as state funds whose use is federally protected. REMAINDER OF PAGE INTENTIONALLY LEFT BLANK (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 State Program CSFA CSFA Title or Fund Funding Appropriation Number Funding Source Number Source Description Amount Category Wastewater Original Treatment and Wastewater Agreement Stormwater 37.077 Treatment Facility $120,000,000 140131 Management TF Construction (2) Audits. (a) In the event that the Local Government expends a total amount of state financial assistance equal to or in excess of $500,000 in any fiscal year of such Local Government, the Local Government must have a State single or project -specific audit for such fiscal year in accordance with Section 215.97, Florida Statutes; applicable rules of the Department of Financial Services; and Chapters 10.550 (local governmental entities) or 10.650 (nonprofit and for -profit organizations), Rules of the Auditor General. In determining the state financial assistance expended in its fiscal year, the Local Government shall consider all sources of state financial assistance, including state financial assistance received from the Department of Environmental Protection, other state agencies, and other nonstate entities. State financial assistance does not include Federal direct or pass -through awards and resources received by a nonstate entity for Federal program matching requirements. (b) In connection with the audit requirements addressed in the preceding paragraph (a); the Local Government shall ensure that the audit complies with the requirements of Section 215.97(7), Florida Statutes. This includes submission of a financial reporting package as defined by Section 215.97(2), Florida Statutes, and Chapters 10.550 (local governmental entities) or 10.650 (nonprofit and for -profit organizations), Rules of the Auditor General. (c) If the Local Government expends less than $500,000 in state financial assistance in its fiscal year, an audit conducted in accordance with the provisions of Section 215.97, Florida Statutes, is not required. The Local Government shall inform the Department of findings and recommendations pertaining to the State Revolving Fund in audits conducted by the Local Government in which the $500,000 threshold has not been met. In the event that the Local Government expends less than $500,000 in state financial assistance in its fiscal year, and elects to have an audit conducted in accordance with the provisions of Section 215.97. Florida Statutes, the cost of the audit must be paid from the non -state entity's resources (i.e., the cost of such an audit must be paid from the Local Government's resources obtained from other than State entities). (d) The Local Government is hereby advised that the Florida Single Audit Act Requirements may further apply to lower tier transactions that may be a result of this Agreement. For information regarding the Florida Catalog of State Financial Assistance (CSFA), a Local Government should access the Florida Single Audit Act website located at httpsJ/al2ps.fldfs.com/fsaa for assistance. In addition to the above websites, the following websites may be accessed for information: Legislature's Website at http://www.leg.state.fl.us/Welcome/index.cfin, State of Florida's website at http://www.myflorida.com/, Department of Financial Services' Website at http//www.fldfs.com/ and the Auditor General's Website at http://www.state.fl.us/audgen. (e) The Local Government should confer with its chief financial officer, audit director or contact the Department for assistance with questions pertaining to the applicability of these requirements. (3) Report Submission. (a) Copies of financial reporting packages shall be submitted by or on behalf of the Local Government directly to each of the following: (i) The Department at the following address: Valerie Peacock, Audit Director Office of the Inspector General Florida Department of Environmental Protection 3900 Commonwealth Boulevard, MS 41 Tallahassee, Florida 32399-3123 (ii) The Auditor General's Office at the following address: State of Florida Auditor General Room 401, Claude Pepper Building I 1 l West Madison Street Tallahassee, Florida 32399-1450 (iii) Copies of reports or management letters shall be submitted by or on behalf of the Local Government directly to the Department of Environmental Protection at the following address: Valerie Peacock, Audit Director Office of the Inspector General Florida Department of Environmental Protection 3900 Commonwealth Boulevard, MS 41 Tallahassee, Florida 32399-3123 (b) Any reports, management letters, or other information required to be submitted to the Department pursuant to this Agreement shall be submitted timely in accordance with Florida Statutes, or Chapters 10.550 (local governmental entities) or 10.650 (nonprofit and for -profit organizations), Rules of the Auditor General, as applicable. (c) Local Governments, when submitting financial reporting packages to the Department for audits done in accordance with Chapters 10.550 (local governmental entities) or 10.650 (nonprofit and for -profit organizations), Rules of the Auditor General, should indicate the date that the reporting package was delivered to the Local Government in correspondence accompanying the reporting package. (4) Record Retention. The Local Government shall retain sufficient records demonstrating its compliance with the terms of this Agreement for a period of five years from the date of the final amendment, and shall allow the Department, or its designee, Chief Financial Officer, or Auditor General access to such records upon request. The Local Government shall ensure that audit working papers are made available to the Department, or its designee, Chief Financial Officer, or Auditor General upon request for a period of five years from the date of the final amendment, unless extended in writing by the Department. (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 of Environmental Protection. In the event the Department of Environmental Protection 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 further agrees to comply and cooperate with any inspections, reviews, investigations, or audits deemed necessary by the Chief Financial Officer or Auditor General. 2. Section 8.02 of the Agreement is deleted and replaced as follows: Books, records, reports, engineering documents, contract documents, and papers shall be available to the authorized representatives of the Department for inspection at any reasonable time after the Local Government has received a disbursement and until five years after the final amendment date. 3. Additional financing in the amount of $19,000,000, excluding Capitalized Interest, is hereby awarded to the Local Government. 4. A Financing Rate of 2.35 percent per annum is established for the additional financing amount awarded in this amendment. Individually, the interest rate is 1.175 percent per annum and the Grant Allocation Assessment rate is 1.175 percent per annum. However, if this amendment is not executed by the Local Government and returned to the Department before October 1, 2015, the Financing Rate may be adjusted. 5. The estimated principal amount of the Loan is hereby revised to $122,506,200, which consists of $120,000,000 authorized for disbursement to the Local Government and $2,506,200 of Capitalized Interest. This total consists of the following: (a) Original Agreement of $41,300,400, including $40,000,000 authorized for disbursement to the Local Government and $1,300,400 of Capitalized Interest, at a Financing Rate of 2.39 percent per annum (the interest rate is 1.195 percent per annum and the Grant Allocation Assessment rate is 1.195 percent per annum); and (b) Amendment 1 of $25,831,600, including $25.000,000 authorized for disbursement to the Local Government and $831,600 of Capitalized Interest, at a Financing Rate of 3.07 percent per annum (the interest rate is 1.535 percent per annum and the Grant Allocation Assessment rate is 1.535 percent per annum); and (c) Amendment 2 of $6,165,700, including $6,000,000 authorized for disbursement to the Local Government and $165,700 of Capitalized Interest, at a Financing Rate of 3.00 percent per annum (the interest rate is 1.50 percent per annum and the Grant Allocation Assessment rate is 1.50 percent per annum); and (d) Amendment 3 of $30,124,100, including $30,000,000 authorized for disbursement to the Local Government and $124,100 of Capitalized Interest, at a Financing Rate of 2.72 percent per annum (the interest rate is 1.36 percent per annum and the Grant Allocation Assessment rate is 1.36 percent per annum); and (e) Amendment 4 of $19,084,400, including $19,000,000 authorized for disbursement to the Local Government and $84,400 of Capitalized Interest, at a Financing Rate of 2.35 percent per annum (the interest rate is 1.175 percent per annum and the Grant Allocation Assessment rate is 1.175 percent per annum). 6. An additional Loan Service Fee in the amount of $380.000, for a total of $2,400,000, is hereby estimated. The fee represents two percent of the Loan amount excluding Capitalized Interest, that is, two percent of $120,000,000. 7. The Semiannual Loan Payment amount is hereby revised and shall be in the amount of 54,039,771. Such payments shall be paid to, and must be received by the Department beginning on August 15, 2016 and semiannually thereafter on February 15 and August 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 $124,906,200, which consists of the Loan principal plus the estimated Loan Service Fee. 8. The Local Government and the Department acknowledge that the actual Project costs have not been determined as of the effective date of this agreement. Project cost adjustments may be made as a result of Project changes agreed upon by the Department. Capitalized Interest will be recalculated based on actual dates and amounts of Loan disbursements. If the Local Government receives other governmental financial assistance for this Project, the costs funded by such other governmental assistance will not be financed by this Loan. The Department shall establish the final Project costs after its final inspection of the Project records. Changes in Project costs may also occur as a result of an audit. Funds disbursed in accordance with Section 4.08 of this Agreement shall be disbursed in the order in which they have been obligated without respect to budgetary line item estimates. All disbursements shall be made from the original Loan amount until that amount has been disbursed; the Financing Rate established for the original Loan amount shall apply to such disbursements for the purpose of determining the associated Capitalized Interest and repayment amount. The Financing Rate established for any additional increment of Loan financing shall be used to determine the Capitalized Interest and repayment amount associated with the funds disbursed from that increment. The estimated Project costs are revised as follows: CATEGORY COST($) Allowance costs 5,434,652 Construction and Demolition 162,943,725 Contingencies 6,297,889 Technical Services After Bid Opening 8,817,045 SUBTOTAL 183.493,311 Less Legislative Appropriation (30,000,000) Less Local Funds (33,493,311) SUBTOTAL (Disbursable Amount) 120,000,000 Capitalized Interest 2,506,200 TOTAL (Loan Principal Amount) 122,506,200 9. All other terms and provisions of the Loan Agreement shall remain in effect. REMAINDER OF PAGE INTENTIONALLY LEFT BLANK This Amendment 4 to Loan Agreement W W440710 shal I 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 ROE COUNTY County Admi ktratnr Approved as to form and gal sufficiency: County A Mey for STATE OF FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION I Secretary or Designee Date