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.
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(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.
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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