Item L2
BOARD OF COUNTY COMMISSIONERS
Agenda Item Summary
ADD ON
Meeting Date
December 15, 2004
Division County Attorney
AGENDA ITEM WORDING
Approval to reaffirm loan Agreement with Key Largo Wastewater Treatment District.
ITEM BACKGROUND
This agreement was approved by the BOCC on December 17, 2003, but was not executed
because of a missing exhibit. Some dates need to be updated.
PREVIOUS RELEVANT BOCC ACTION
See above.
CONTRACT f AGREEMENT CHANGES nfa
STAFF RECOMMENDAnONS -- Approval.
TOTAL COST BUDGETED Yes No
COST TO COUNTY SOURCE OF FUNDS
APPROVED BY: County Attorney _ OMB/Purchasing Risk Management
DIVISION DIRECTORAPPROVAL;1.~ Izfr1lIJY
"I J. R. COlUNS
DOCUMENTATION:
Included
AGENDA ITEM #
Lt
New language underlined; old language struck through
LOAN AGREEMENT
KEY LARGO WASTEWATER TREATMENT DISTRICT
THIS LOAN AGREEMENT is entered into by and between Monroe County, a
political subdivision of the State of Florida (the County) and the Key largo
Wastewater Treatment District, an independent special district (the District),
pursuant to Sec. 2.03(A)(2) of an interlocal agreement between the parties
effective February 26, 2003 (the interlocal agreement). A copy of the interlocal
agreement, together with all its exhibits, is attached as Exhibit A and made a part
hereof
1. On or before October 15, 2003 January 30~ 2005, the County shall
transfer to the District the sum of $731,428 and shall request the Florida Keys
Aqueduct Authority (FKAA) to transfer to the District the sum of $182,857 (which
sum the County had previously transferred to the FKAA for the purposes described
in paragraph 2 of this loan agreement).
2. a) The District agrees to establish a special fund to be called the
Key largo Trailer Village Project Fund (the Fund) and to deposit therein the money
described in Paragraph 1 of this loan agreement. Money in the Fund may only be
used to pay the costs of constructing the Key largo Trailer Village central
wastewater treatment and collection system (the Project) that are authorized as
appropriate matching expenditures in the DCNFEMA grant for the Project. A copy
of the DCNFEMA grant Is attached to this loan agreement as Exhibit B.
b) The District shall make disbursements or payments from the
Fund only for the costs authorized in subparagraph 2(a) of this loan agreement.
The District shall prepare and keep the records of such disbursements and
payments according to generally accepted governmental accounting principles
consistently applied and shall retain those records for a period of five years from
the date of the completion of the Project. The records must be made available
upon request to an auditor employed by The County Clerk or the State of Florida.
If the auditor determines any funds may have been spent for unauthorized
purposes, the auditor shall meet with District staff to confirm the purpose of the
expenditure. If after meeting with District staff, the auditor determines that any of
the funds transferred to the District under this loan agreement were expended for
purposes not authorized by this loan agreement or the DCNFEMA grant, then the
District shall, within 30 days of the auditor's determination, return the amount
determined by the auditor to have been improperly spent together with interest,
calculated at the rate set forth in Sec. 55.03(1), FS, commencing on the date the
auditor determined the funds were expended for a purpose not authorized by this
loan agreement or the DCNFEMA grant. This subparagraph controls over and
amends any inconsistent language in the interlocal agreement Sec. 2.03(A)(2).
c) Moneys transferred to the District under this loan agreement
for deposit in the Fund must be deposited and secured in the same manner as
public funds are authorized to be deposited and secured by the laws of the State of
Florida. Any interest paid on moneys deposited in the Fund will belong to the
District.
3. a) Beginning on July 1, 2008, and on each July 1st thereafter
through July 1, 2018, the District shall pay to the County $91,428.50 for repayment
of the funds transferred to the District pursuant to paragraph 1 of this loan
agreement If the District has not collected a sufficient amount of funds to cover
the loan repayment amounts each July 1st until the loan is repaid in full, the District
shall have the right to request the County to renegotiate the terms of this
Agreement relating to repayment of the funds. The parties agree that the
$91,428.50 is entirely a return of principal and that the County may not demand, or
seek to charge, the District any interest on the funds transferred to the District
pursuant to this loan agreement. The only exception to this no interest provision is
the interest payable on funds determined to have been spent for a purpose not
authorized by this loan agreement.
b) The County agrees to establish a special fund for the receipt
and deposit of the moneys paid by the District to the County pursuant to
subparagraph 3(a) of this loan agreement. The County agrees to return the
moneys depOSited in that fund for wastewater treatment and collection projects
located within, or serving the residents of, the Key Largo Wastewater Treatment
District. The moneys so deposited shall be spent for District wastewater projects
pursuant to interlocal agreement(s) entered into between the parties.
4. The requirement of each party that moneys be deposited and
accounted for in a special fund may be satisfied by deposit in a single non-exclusive
bank account or investment pool provided that adequate accounting records are
maintained to reflect and control the restricted allocation of the moneys on deposit.
5. This loan agreement is not Intended to, and does not give rise to, legal
or beneficial rights on behalf of any third parties. The contractors, subcontractors,
subsubcontractors, materialmen and tort claimants of the District, or any other
third party, claiming or demanding damages, liability, payment, or other demand
on account of an act, acts or omission or omissions of the District, its officers,
employees, or agents, must seek the relief demanded or claimed from the District
only.
6. The parties agree that prior to the time the first repayment amount is
due to the County, as stated in paragraph 3 herein, the parties shall revisit and
reconsider this Agreement to determine whether the terms and conditions of the
repayment schedule should be amended.
7. All writings required by this loan agreement (including the payment of
moneys) shall be sent to:
Monroe County
County Administrator
Gato Building
1100 Simonton Street
Key West, FL 33040
District
R-obert Sheets, General Manager
PO Box 491
Key largo, FL 33037
with ~ copy to:
Terry Lcwis, District Attorney
Lewis, Longman &. Walker, P.A.
1700 Palm Be~ch ~kes BI.,,'d. #1000
'}Jcst P\:llm Beach, FL 33401
by certified mail, return receipt requested, or by a national courier service such as
Federal Express. The above addresses may be changed by written notification.
8. This written loan agreement is the parties~ final mutual
understanding. It supersedes any prior negotiations or agreements, whether
written (in any format) or oral, and may only be amended by a writing signed by
both parties.
9. This loan agreement will take effect on the signature date of the last
party to execute the agreement.
IN WITNESS WHEREOF, the parties hereto have set their hands and seals the
dates written below.
(SEAL)
ATIEST: DANNY L. KOLHAGE, CLERK
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
By
By
Deputy Clerk
Mayor/Chairman
Date
(SEAL)
Attest:
KEY LARGO WASTEWATER TREATMENT
DISTRICT
By
By
Secreta ry
Chairman
Date
)conKlWWD4
MONROE COUNTY ATTORNEY
A&~TO FORM:
, JOHN R. COLLINS
'l\CQ~~"A TIORNEY
Dati \ \'7 ~