HomeMy Public PortalAboutTO 2023-09 - EPA WIFIA Loan Letter of SupportCity of Crestview Professional Services for WIFIA Loan
Letter of Interest
Jacobs
THIS TASK ORDER IS ISSUED PURSUANT TO THE PROFESSIONAL ENGINEERING CONTINUING SERVICES CONTRACT
DATED MAY 3, 2021 (AGREEMENT), FOR THE CITY OF CRESTVIEW, FLORIDA, WHICH IS INCORPORATED HEREIN BY
THIS REFERENCE, WITH RESPECT TO
City of Crestview Task Order 2023-09
Scope of Services and Fee for City of Crestview Support in Developing EPA WIFIA Loan
Letter of Interest
February 8, 2023
Introduction
Jacobs will assist the City of Crestview, Florida (the City), in the development of a letter of interest (LOI) to
the U.S. Environmental Protection Agency (EPA) Water Infrastructure Finance and Innovation Act (WIFIA)
loan program to help finance a number of proposed improvements to the City's water and wastewater
system. The LOI is the first submittal required in the process to be considered for a low -interest loan from
the WIFIA loan program administered by the EPA. The LOI phase of the WIFIA loan application process is
the competitive part of the process.
The City is planning to develop an LOI for Year 7 of the WIFIA program. The EPA has not, at the time of this
scope of work's development, issued its notice of funding availability (NOFA) for 2023. In Year 6, WIFIA
moved to a rolling application process, instead of having a hard deadline, as it has had in prior years. LOIs
for the current cycle, Year 6, were opened for submission on September 6, 2022. After an LOI is submitted,
and if EPA evaluates it and decides it is worthy of a full application, EPA will carry it over into the next fiscal
year funding when funds become available.
Scope of Work
In accordance with the structure of the WIFIA LOI, support has been organized to reflect the major tasks of
the LOI, summarized as Tasks 1 through 6. As EPA has not yet issued its NOFA for the current year, the
scope of work presented herein is based on the LOI requirements for 2022. In recent years, EPA has made
some slight adjustments to the requirements for the LOI each year, though the basic requirements have
remained largely the same. The proposed work and fee estimate build on the previous financial and
engineering work that Jacobs has performed for the City.
The following services proposed are described in detail in the following task descriptions:
• Task 1 - Project Management Services
• Task 2 - Key Loan Information (LOI Section A)
• Task 3 - Engineering and Credit (LOI Section B)
• Task 4 - Selection Criteria (LOI Section C)
• Task 5 - Contact Information, Certifications, and Notification of State Infrastructure Authority (LOI
Sections D, E, and F)
• Task 6 - Finalize WIFIA LOI
The estimated schedule for the LOI services and the estimated compensation for the services are detailed
in this document following the task descriptions. As the EPA's requirements may change in 2023, a small
contingency allowance is provided for possible changes to the LOI requirements for 2023.
Task 1 - Project Management Services
Jacobs will conduct project management, including coordination with the City, schedule, and budget
management, monthly progress reports and invoices, project administration, and quality control on
PPS0206231454PNS 1
City of Crestview Professional Services for WIFIA Loan Letter of Interest
deliverables. Upon receipt of the City's Notice to Proceed (NTP), Jacobs will coordinate with the City to
commence the work and will prepare and hold a project kickoff meeting with the City to discuss the project
execution plan. Up to two professionals from Jacobs will attend the kickoff meeting. Before the kickoff
meeting, Jacobs will provide the City with a list of requested information, which will be made available by
the City at the kickoff meeting.
Deliverables:
• List of requested information
• Kickoff and progress meeting summaries in Adobe PDF electronic format
• Monthly progress reports and invoices in Adobe PDF electronic format
Task 2 - Key Loan Information (LOI Section A)
Jacobs will summarize contact information, proposed projects and their descriptions, loan information,
and other supporting information that needs to be included in Section A of the LOI. This will include
working with the City to select projects to include in the WIFIA LOI, descriptions of those projects proposed
for funding from the WIFIA program, their estimated capital cost, purpose, and expected timing.
Deliverables:
• Support the City in the 1-hour virtual pre -application meeting with EPA that is permitted by WIFIA
that provides both an opportunity to ask questions and give the EPA WIFIA team an early
opportunity to hear about the projects and the City's context ahead of their LOI review.
• Work with the City to select projects to be included in the WIFIA LOI and provide descriptions of
those projects, their purpose and public benefits, anticipated start and finish dates, and estimated
construction costs to include in the WIFIA loan program application.
• Completed Section A of WIFIA LOI including loan information.
Task 3 - Engineering and Credit (LOI Section B)
Subtask 3A - Project Information
Jacobs will compile the supporting documentation for the LOI as required to satisfy the requirements of
Section B of the WIFIA LOI. The supporting documentation for the proposed WIFIA-funded projects may
include the following:
• Preliminary Engineering Report
• Preliminary Design Report
• Planning Documents
• Executed Contract Documents
• Procurement Documents
• Detailed project schedule(s)
• Engineer's Cost Estimate associated with detailed project scope
• Existing Operation and Maintenance Plan
• Professional Service Contract or similar evidence of new Operation and Maintenance Plan to be
developed
• Risk Mitigation Plan/Matrix
• Project Management Plan
• Evidence of Experience with similar projects
• Draft of Final Bid Specifications with required language
• Sample of Final Bid Specifications with required language
2
City of Crestview Professional Services for WIFIA Loan Letter of Interest
In addition, Jacobs will support development of the schedule required to be completed as part of
Section B.
Subtask 3B - WIFIA Financing Plan
(Note: If the City has received a water revenue bond rating within the last year, the City may not be
required to submit a financing plan with its WIFIA LOI. However, the City may want to develop a financing
plan so that it fully understands the implications of its proposed construction program, the WIFIA loan
obligations and repayment schedule, and the requirements of the other sources of funding that the City
may be relying on to finance its Capital Improvement Plan (CIP.) A financing plan may also be required by
the other sources of financing that the City may be pursuing to finance the portions of the CIP not financed
by the WIFIA program. It was assumed in the development of this scope of work that the City has not
received a revenue bond rating within the last year, and thus would be required to include a financing plan
with its LOI, or that it would like to have a financing plan prepared for other reasons.)
The financing plan will include the following:
• Development of sources and uses of funds table, including the proposed WIFIA assistance and
identification of any ineligible project costs.
• Estimated total eligible project costs (in dollars):
• Requested amount of the WIFIA loan (in dollars):
• Draft narrative describing the project(s) plan of finance. It will identify the availability and credit
terms of other project funding sources and include any preliminary revenue projections, with
description of underlying assumptions.
• Description of the proposed credit terms of the WIFIA assistance including any security pledge, the
requested lien position (if subordinate position requested includes note that other project debt
cannot enjoy senior security without springing parity security rights), maturity date (term), and
amortization structure (such as straight-line or sculpted).
• Describe the City's financial condition.
• Gather and prepare for submittal the year-end audited financial statement for the past 3 years, as
available, as an attachment.
• Develop and prepare a pro forma financial model for attachment to the WIFIA LOI. The financial
pro forma would present key revenue, expense, and debt repayment assumptions for the revenue
pledged to repay the WIFIA loan through the final maturity of the proposed WIFIA debt, including
up to 3 years of historical data, as available. The pro forma will be developed in an editable
Microsoft Excel format, as required by the WIFIA submittal requirements. The pro forma will
include, at a minimum, the following:
o Sources of revenue
o Operations and maintenance expenses
o Dedicated source(s) of repayment
o Capital expenditures
o Debt service payments and reserve transfers, broken down by funding source and
including the WIFIA credit assistance
o Projected debt service coverage ratios for total existing debt and the WIFIA debt
o The project's or system's debt balances broken down by funding sources
3
City of Crestview Professional Services for WIFIA Loan Letter of Interest
o Equity distributions, if applicable
o Sensitivity projections, if available
• Indication of any related SRF funding applications and status, as required by the WIFIA submittal
requirements
Subtask 3C - Timing and Priority of CIP
In addition to developing a financial plan focused on the projects that would be partially financed from the
WIFIA loan program, the City has other improvements that it must plan for their construction and
financing. To assist the City, Jacobs will develop construction schedules and plans for financing of these
additional improvements from sources other than the WIFIA loan program. Jacobs will develop two
alternative scenarios for implementation of these additional improvements and plans for financing of
these improvements for the City's consideration.
Assumptions:
• City staff will be available to respond to questions and help provide supporting information it may
have related to the planned improvements, WIFIA financial plan and pro formas, and financial
plan scenarios for funding and financing of the other planned improvements.
Deliverables:
• Supporting materials for Section B of the LOI, and for review by City staff
• A financing plan for funding of improvements that will be partially financed or funded through the
WIFIA loan program, for review by the City, including the pro forma financial model that will need
to be uploaded to the SharePoint site that EPA will provide to the City
• Two financial plan scenarios for funding and financing additional improvements beyond those
being partially financed through the WIFIA loan program
Task 4 - Selection Criteria (LOI Section C)
Jacobs will lead the development of the Selection Criteria section of the LOI, as required to satisfy the
requirements of Section C, Selection Criteria, in the WIFIA LOI. This will include drafting material for this
section and identifying appropriate supplemental supporting material to include as attachments to the
LOI as follows:
• National or regional significance: Describe the extent to which the project is nationally or
regionally significant, with respect to the generation of economic and public benefits, such as
(1) the reduction of flood risk; (2) the improvement of water quality and quantity, including
aquifer recharge; (3) the protection of drinking water, including source water protection; and
(4) the support of international commerce.
• New or innovative approaches: Describe the extent to which the project uses new or
innovative approaches, particularly water reuse and water recycling.
• Protection against extreme weather events: Describe the extent to which the project
(1) protects against extreme weather events, such as floods or hurricanes, or (2) helps
maintain or protect the environment.
• Serves energy exploration or production areas: Describe the extent to which a project serves
regions with significant energy exploration, development, or production areas.
• Serves regions with water resource challenges: Identify the water resource challenge and the
extent to which a project serves regions with significant water resource challenges, including
the need to address (1) water quality concerns in areas of regional, national, or international
4
City of Crestview Professional Services for WIFIA Loan Letter of Interest
significance; (2) water quantity concerns related to groundwater, surface water, or other
resources; (3) significant flood risk; (4) water resource challenges identified in existing
regional, state, or multistate agreements; and (5) water resources with exceptional
recreational value or ecological importance.
• Addresses identified priorities: Describe the extent to which the project addresses identified
municipal, state, or regional priorities.
• Repair, rehabilitation, or replacement: Describe the extent to which the project addresses
needs for repair, rehabilitation or replacement of a treatment works, community water system,
or aging water distribution or wastewater collection system.
• Economically stressed communities: Describe the extent to which the project serves
economically stressed communities or pockets of economically stressed rate payers within
otherwise non -economically stressed communities.
• Reduces exposure to lead or emerging contaminants: Describe the extent to which the
project reduces exposure to lead or addresses emerging contaminants, including PFOA
(perfluorooctanoic acid) and PFAS (perfluoroalkyl and polyfluoroalkyl substances), in the
nation's drinking water systems.
• Readiness to proceed: Describe the readiness of the project to proceed toward development,
including a demonstration by the prospective borrower that there is a reasonable expectation
that the contracting process for construction of the project can commence by not later than
90 days after the date on which a federal credit instrument is obligated for the project.
• Enables project to proceed earlier: Describe the likelihood that assistance under WIFIA would
enable the project to proceed at an earlier date than the project would otherwise be able to
proceed.
• Financing plan: Describe the extent to which the project financing plan includes public or
private financing in addition to assistance under WIFIA.
• Reduction of federal assistance: Describe the extent to which assistance under WIFIA reduces
the contribution of federal assistance to the project.
Assumptions:
• The City will be available to respond to questions and help provide supporting information it may
have related to the topics within the Selection Criteria Responses.
Deliverables:
• Draft material for portions of the Section D Selection Criteria of the LOI, for review by the City.
Task 5 - Contact Information, Certifications, and Notification of State Infrastructure Authority (LOI
Sections D, E, and F)
Jacobs will work with City staff to identify contacts and compile the numerous certifications required by
the WIFIA loan program for inclusion in the LOI. Jacobs will not develop these certifications but will
coordinate their collection and compilation for use in the LOI Section E. The required certifications consist
of the following:
1. National Environmental Policy Act: The undersigned acknowledges that EPA will not approve a
loan until a final agency determination, such as a Categorical Exclusion, Finding of No Significant
Impact, or a Record of Decision, has been issued.
5
City of Crestview Professional Services for WIFIA Loan Letter of Interest
2. American Iron and Steel: The undersigned acknowledges that any project receiving credit
assistance under this program for the construction, alteration, maintenance, or repair of a project
may only use iron and steel products produced in the United States and must comply with all
applicable guidance.
3. Prevailing Wages: The undersigned acknowledges that all laborers and mechanics employed by
contractors or subcontractors on projects receiving credit assistance under this program will be
paid wages at rates not less than those prevailing for the same type of work on similar
construction in the immediate locality, as determined by the Secretary of Labor, in accordance
with sections 3141-3144, 3146, and 3147 of Title 40 (Davis -Bacon wage rules).
4. Lobbying: United States Code (U.S.C.) Title 31, Section 1352 provides that none of the funds
appropriated by any Act of Congress may be expended by a recipient of a contract, grant, loan, or
cooperative agreement to pay any person for influencing or attempting to influence an officer or
employee of any federal agency, a Member of Congress, or an employee of a Member of Congress
in connection with the award or making of a federal contract, grant, loan, or cooperative
agreement or the modification thereof. EPA interprets this provision to include the use of
appropriated funds to influence or attempt to influence the selection for assistance under the
WIFIA and state infrastructure financing authority WIFIA (SWIFIA) program.
Prospective borrowers must file a declaration: (a) with the submission of an application for SWIFIA
credit assistance; (b) upon receipt of SWIFIA credit assistance (unless the information contained in
the declaration accompanying the SWIFIA application has not materially changed); and (c) at the
end of each calendar quarter in which there occurs any event that materially affects the accuracy
of the information contained in any declaration previously filed in connection with the SWIFIA
credit assistance.
The undersigned certifies, to the best of their knowledge and belief, that:
1. No federal appropriated funds have been paid or will be paid, by or on behalf of the
undersigned, to any person for influencing or attempting to influence an officer or
employee of an agency, a Member of Congress, an officer or employee of Congress, or an
employee of a Member of Congress in connection with the awarding of any federal
contract, the making of any federal grant, the making of any federal loan, the entering
into of any cooperative agreement, and the extension, continuation, renewal, amendment,
or modification of any federal contract, grant, loan, or cooperative agreement.
2. If any funds other than federal appropriated funds have been paid or will be paid to any
person for influencing or attempting to influence an officer or employee of any agency, a
Member of Congress, an officer or employee of Congress, or an employee of a Member of
Congress in connection with this federal contract, grant, loan, or cooperative agreement,
the undersigned will complete and submit Standard Form-LLL, "Disclosure Form to
Report Lobbying," in accordance with its instructions.
3. The undersigned will require that the language of this certification be included in the
award documents for all subawards at all tiers (including subcontracts, subgrants, and
contracts under grants, loans, and cooperative agreements) and that all subrecipients will
certify and disclose accordingly.
This certification is a material representation of fact upon which reliance was placed when
this transaction was made or entered into. Submission of this certification is a prerequisite
for making or entering into this transaction imposed by 31 U.S.C. Section 1352. Any
person who fails to file the required certification will be subject to a civil penalty of not
less than $10,000 and not more than $100,000 for each such failure.
6
City of Crestview Professional Services for WIFIA Loan Letter of Interest
5. Debarment: The undersigned further certifies that it is not currently: (1) debarred or suspended
ineligible from participating in any federal program; (2) formally proposed for debarment, with a
final determination still pending; or (3) indicted, convicted, or had a civil judgment rendered
against it for any of the offenses listed in the Regulations Governing Debarment and Suspension
(Governmentwide Non -procurement Debarment and Suspension Regulations: 2 Code of Federal
Regulations Part 180 and Part 1532).
6. Default/Delinquency: The undersigned further certifies that neither it nor any of its subsidiaries or
affiliates are currently in default or delinquent on any debt or loans provided or guaranteed by the
federal government.
7. Other Federal Requirements: The undersigned acknowledges that it must comply with all other
federal statutes and regulations, as applicable. A non -exhaustive list of federal cross -cutting
statutes and regulations can be found at the following link: httos://www.ena.aov/wifia/wifia-,
resources#comolianceanchoi
8. SWIFIA Requirements: The undersigned acknowledges that it must comply with EPA requirements
regarding the loans included in the SWIFIA Project, acceptance of standard terms or indenture
requirements, and other SWIFIA program requirements outlined in regulation and guidance
materials.
9. Signature: By submitting this LOI, the undersigned certifies that the facts stated, and the
certifications and representations made in this LOI are true, to the best of the prospective
borrower's knowledge and belief after due inquiry, and that the prospective borrower has not
omitted any material facts. The undersigned is an authorized representative of the SIFA.
10. Notification of State Infrastructure Authority: Jacobs will help coordinate the City's response
under Section F of the LOI.
Assumptions:
• City staff will assist in coordinating obtaining certifications from City and contractors.
Deliverables:
• Compiled City contact information and certifications for use in the LOI
Task 6 - Finalize WIFIA LOI
Jacobs will support the City in finalizing and submitting the LOI to EPA. This could include support in areas
such as the following:
• Compiling the material required for the various sections of the LOI from assigned primary authors
into a single file.
• Providing editorial support in finalizing the material in the LOI.
• Assisting the City in uploading the LOI and attachments to EPA's WIFIA site.
• Supplemental consulting support for political advocacy, as requested by City. (This scope of work
includes approximately 16 hours of support.)
Deliverables:
• Revised final version of material to submit as the City's WIFIA LOI.
City of Crestview Professional Services for WIFIA Loan Letter of Interest
Schedule
The intended submittal time of each deliverable is included in the following table. The anticipated total
duration of this amendment is 30 weeks.
Task
Task 1 - Project Management Services including kickoff
meeting and data requests
Task 2 - Key Loan Information (LOI Section A)
Task 3 - Engineering and Credit (LOI Section B)
Task 4 - Selection Criteria (LOI Section C)
Task 5 - Contact Information and Certifications (LOI
Sections D, E, and F)
Task 6 - Finalize WIFIA LOI
Time from NTP
3 weeks
8 weeks
14 weeks
20 weeks
26 weeks
30 weeks
Compensation
A summary of costs for tasks associated with the WIFIA Loan LOI Assistance described in the Scope of
Work are provided in Table 1. Compensation for services and expenses under this Task Order shall be on a
lump sum basis with an amount of $67,700. Jacobs will provide the City a monthly invoice for the
services provided, along with a summary of activities performed under this contract. An estimated earned
value (percent complete) for each project subtask will be the basis for progress payments.
Additional Assumptions
• Selection of a WIFIA LOI is not guaranteed.
• The City will provide historical data to Jacobs as required, withinl 4 calendar days, to assist with the
development of any component of a WIFIA LOI. Historical data could include technical, as well as
financial data, and future CIP and pro forma data. Jacobs will reasonably rely on the accuracy,
timeliness, and completeness of the information provided by the City.
• The City will make timely decisions, within14 calendar days, regarding WIFIA LOI, on questions or
issued posed by Jacobs as material is developed for inclusion in the WIFIA LOI.
• All documents, reports, memoranda, agendas, minutes, invoices, and other submittals will be
transmitted to the City electronically unless otherwise specified.
• In providing opinions of cost, economic feasibility projections, and schedules for projects, Jacobs has
no control over cost or price of labor and materials; unknown or latent conditions of existing
equipment or structures that may affect operation or maintenance costs; competitive bidding
procedures and market conditions; time or quality of performance by operating personnel or third
parties; and other economic and operational factors that may materially affect the ultimate project
cost or schedule. Therefore, Jacobs makes no warranty that the City's actual project costs, economic
feasibility, or schedules will not vary from Jacobs' opinions, analyses, projections, or estimates.
• Jacobs will obtain written approval before proceeding with additional tasks under this agreement.
• This scope of work is limited to consulting services; no direct supervision of City employees or
contractors will occur.
8
City of Crestview Professional Services for WIFIA Loan Letter of Interest
• Jacobs may reasonably rely on the accuracy of information provided by City employees and
contractors.
• Jacobs will not be responsible for the quality and completeness of information provided by City
employees and contractors, nor for acts by City employees and contractors.
Authorized Representatives
The Authorized Representatives designated below are authorized to act with respect to Task Order 2023-09.
Communications between the parties and between Jacobs's subcontractors shall be through the Authorized
Representatives:
For the City of Crestview, Florida For Jacobs Engineering Group, Inc
Name: Mike Criddle Name: Scott Jernigan
Address: P.O. Drawer 1209 Address: 25 W. Cedar Street, Suite 350
Crestview, Florida 32536 Pensacola, Florida 32502
Telephone: (850) 682-6134 Telephone: (850) 266-3975
Authorization:
Task Order 2023-09 is effective as of
I Accepted for City by:
Name: J.B. Whitten
2023
Accepted for Jacobs Engineering Group, Inc. by:
Name: Scott LJernigan, PE
Title: Mayor Title: Pensacola Area Market Lead
9