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HomeMy Public PortalAbout18-9456 Amendment 1 the WW130301 Loan Agreement for Major Sewer Rehabilitation Sponsored by: City Manager RESOLUTION NO. 18-9456 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF OPA-LOCKA, FLORIDA, AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT 1 TO THE WW130301 LOAN AGREEMENT WITH THE FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION, RELATING TO THE STATE REVOLVING FUND (SRF) LOAN PROGRAM FOR MAJOR SEWER REHABILITATION AND STORMWATER MANAGEMENT; PROVIDING FOR INCORPORATION OF RECITALS; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Amendment 1 to the City of Opa-locka's ("City") State Revolving Fund Loan Agreement WW130301 reduces the loan amount by $10,364,702.00 for the project based on final bid amounts; and WHEREAS, the City Commission finds that it is in the best interest of the City to accept the new terms of the loan agreement. NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF OPA LOCKA, FLORIDA: Section 1. RECITALS ADOPTED. The recitals to the preamble herein are incorporated by reference. Section 2. AUTHORIZATION The City Commission hereby authorizes the City Manager to execute Amendment 1 to the WW130301 Loan Agreement with the Florida Department of Environmental Protection, relating to the State Revolving Fund (SRF) loan program for Major Sewer Rehabilitation and Stormwater Management attached hereto as Exhibit A. SECTION 3. SCRIVENER'S ERRORS. Sections of this Resolution may be renumbered or re-lettered and corrections of typographical errors which do not affect the intent may be authorized by the City Manager, or the City Manager's designee, without need of public hearing, by filing a corrected copy of same with the City Clerk. Section 4. EFFECTIVE DATE. This Resolution shall take effect immediately upon adoption and is subject to the approval of the Governor or his designee. Resolution No. 18-9456 PASSED AND ADOPTED this 24th day of January, 2018. A_ yra L. Taylor Mayor Attest to: Approved as to form and legal sufficiency: Jo, na Flores BROWN LAW GROUP, LLC CI Clerk City Attorney Moved by: COMMISSIONER RILEY Seconded by: VICE MAYOR KELLEY Commissioner Vote: 3-1 Commissioner Holmes: NOT PRESENT Commissioner Riley: YES Commissioner Pigatt: NO Vice Mayor Kelley: YES Mayor Taylor: YES City of Opa-Locka Agenda Cover Memo Department Department Director: Director Signature: Budget Ernesto Reyes Budget Administrator: Administrator/ACM . Signature: Finance Director: Bryan Hamilton FD Signature: Department Asst City Manager: William Green ACM Signature: City Manager: Ed Brown CM Signature: Commission 01.24.18 Item Type: , Meeting Date: g (EnterXin box) Fiscal Impact: Ordinance Reading: (EnterXin box) (EnterXin box) x Public Hearing: box) x x Funding Source: (Enter Fund& Advertising Requirement: Account#: Dept) (EnterXin box) Ex: State Revolving Loan Major Sewer Rehabilitation Contract/P.O. RFP/RFQ/Bid#: Required: XJ (EnterXin box) Strategic Plan Strategic Plan Priority Area: Strategic Plan Obj./Strategy: (list Related Enhance Organizational El the specific objective/strategy this item will (EnterXin box) X Bus.&Economic Dev - address) Public Safety 0' Quality of Education El Qual.of Life&City Image J Communication 0 Sponsor Name City Manager Department: City Manager A resolution authorizing the City Manager to propose an amendment to the WW130301 Loan Agreement with the Florida Department of Environmental Protection relating to the State Revolving Loan. It is in the best interest of the City to seek Commission authorization to amend the WW130301 Loan Agreement with the Florida Department of Environmental Protection, Relating to the State Revolving Fund. The amendment provides a reduction of$10,364,702 for this project based on final bid amounts. ProPosed Staff recommends the adoption of the Resolution to authorize the City Manager to execute an amendment to the WW130301 Loan Agreement. °ap'rti4 Florida Department of Governor • Environmental Protection Carlos Lopez-Cantera Marjory Stoneman Douglas Building Lt. Governor 4. 3900 Commonwealth Boulevard 0 `o Tallahassee, Florida 32399-3000 Noah VSec etein •ntal Q Io ry December 19,2017 Ms. Yesly Guillen CIP City of Coordinator Opa-Locks 780 Fisherman Street,Fourth Floor Opa-Locka,Florida 33054 Re: WW130301 —Opa-Locka Major Sewer Rehabilitation Dear Ms. Guillen: Attached is a copy of proposed Amendment 1 to the City's State Revolving Fund loan agreement. The amendment provides a reduction of$10,364,702 for this project based on final bid amounts. Please have the appropriate officials sign and seal two copies, and return them to us within three weeks at 3900 Commonwealth Boulevard,MS 3505, Tallahassee,Florida, 32399-3000. We will sign the documents and mail a fully executed original to you. If you have any questions about this amendment,please call Sarah LaRose at(850)245-2968. Sincerely, • Angela Knecht, Program Administrator State Revolving Fund Management AK/sl Attachment cc: Aria Austin—City of Opa-Locka www.dep.state.t.us STATE REVOLVING FUND AMENDMENT 1 TO LOAN AGREEMENT WW130301 CITY OF OPA-LOCKA This amendment is executed by the STATE OF FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION(Department)and the CITY OF OPA-LOCKA, FLORIDA, existing as a local government agency(Local Government)under the laws of the State of Florida. Collectively,the Department and the Local Government shall be referred to as "Parties"or individually as a"Party". The Department and the Local Government entered into a State Revolving Fund Loan Agreement,Number WW130301, authorizing a Loan amount of$16,895,885, excluding Capitalized Interest; and All contracts have been awarded for this Project and the Semiannual Loan Payment,the Loan amount, and Project costs need revision based on final bid amounts as provided in Section 10.06. The Parties hereto agree as follows: 1. Subsection 1.01(15)of the agreement is deleted and replaced as follows: (15)"Project"shall mean the works financed by this Loan and shall consist of furnishing all labor,materials,and equipment to design and construct the sewer rehabilitation and stormwater management project in accordance with the planning documents accepted by the Department for the "Cairo Lane and NW 127th Stormwater,Wastewater and Drinking Water Project"contract. 2. The Loan amount authorized for disbursement is hereby reduced by $10,364,702. The revised Loan amount is $6,531,183. 3. The estimated Loan Service Fee is reduced$207,294,and the adjusted total service fee for this Loan is $130,624. 4. The estimated principal amount of the Loan is hereby revised to $6,531,183,which consists of$6,531,183 authorized for disbursement to the Local Government and$0 of Capitalized Interest at an interest rate of 0 percent per annum . 5. The Semiannual Loan Payment amount, is hereby revised and shall be in the amount of$166,545. Such payment shall be received by the Department on July 15, 2018 and semiannually thereafter on January 15 and July 15 until all amounts due hereunder have been fully paid. 6. The Semiannual Loan Payment amount is based on the total amount owed of $6,661,807,which consists of the Loan principal plus the estimated Loan Service Fee and its capitalized interest, if any. 7. Section 2.03 is hereby deleted and replaced as follows: 1 (1) The financial assistance authorized pursuant to this Loan Agreement consists of the following: Federal Resources, Including State Match,Awarded to the Recipient Pursuant to this Agreement Consist of the Following: Federal State Program Federal CFDA Funding Appropriation Number Agency Number CFDA Title Amount Category Capitalization Grants CS-12000114-0 EPA 66.458 for State Revolving $6,531,183 140131 Funds (2) Audits. (a) In the event that the Local Government expends $750,000 or more in Federal awards in its fiscal year,the Local Government must have a Federal single audit conducted in accordance with the provisions of 2 CFR Part 200, Subpart F. In determining the Federal awards expended in its fiscal year,the Local Government shall consider all sources of Federal awards, including Federal resources received from the Department. The determination of amounts of Federal awards expended should be in accordance with the guidelines established by 2 CFR Part 200, Subpart F. An audit of the Local Government conducted by the Auditor General in accordance with the provisions of 2 CFR Part 200, Subpart F,will meet the requirements of this part. (b) In connection with the audit requirements addressed in the preceding paragraph(a), the Local Government shall fulfill the requirements relative to auditee responsibilities as provided in 2 CFR Part 200, Subpart F. (c) If the Local Government expends less than$750,000 in Federal awards in its fiscal year, an audit conducted in accordance with the provisions of 2 CFR Part 200, Subpart F,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 the event that the Local Government expends less than$750,000 in Federal awards in its fiscal year and elects to have an audit conducted in accordance with the provisions of 2 CFR Part 200, Subpart F,the cost of the audit must be paid from non-Federal resources(i.e.,the cost of such an audit must be paid from Local Government resources obtained from other than Federal entities). (d) The Local Government may access information regarding the Catalog of Federal Domestic Assistance(CFDA)via the internet at www.cfda.gov/index?cck=1&au=&ck=. (3) Report Submission. (a) Copies of reporting packages for audits conducted in accordance with 2 CFR Part 200, Subpart F, and required by Subsection 2.03(2)of this Agreement shall be submitted,when required by 2 CFR Part 200, Subpart F,by or on behalf of the Local Government directly to each of the following: (i) The Department at one of the following address: 2 By Mail: Audit Director Florida Department of Environmental Protection Office of the Inspector General,MS40 3900 Commonwealth Boulevard Tallahassee,Florida 32399-30000 or Electronically: FDEPSingleAudit@dep.state.fl.us (ii) The Federal Audit Clearinghouse designated in 2 CFR&200.501(a) at the following address: https://harvester.census.gov/facweb/ (iii) Other Federal agencies and pass-through entities in accordance with 2 CFR &200.512. (b) Pursuant to 2 CFR Part 200, Subpart F,the Local Government shall submit a copy of the reporting package described in 2 CFR Part 200, Subpart F, and any management letters issued by the auditor,to the Department at the address listed under Subsection 2.03(3)(a)(i)of this Agreement. (c) 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 2 CFR Part 200, Subpart F,Florida Statutes, or Chapters 10.550 (local governmental entities)or 10.650 (nonprofit and for-profit organizations),Rules of the Auditor General, as applicable. (d) Local Governments,when submitting financial reporting packages to the Department for audits done in accordance with 2 CFR Part 200, Subpart F, or 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 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. 3 (5) Monitoring. In addition to reviews of audits conducted in accordance with 2 CFR Part 200, Subpart F, as revised(see audit requirements above),monitoring procedures may include,but not be limited to, on-site visits by Department staff, limited scope audits as defined by 2 CFR Part 200, Subpart F., 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. In the event the Department 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. 8. Section 8.09 of the Agreement is deleted and replaced as follows: 8.09.AMERICAN IRON AND STEEL REQUIREMENT. The Local Government's subcontracts must contain requirements that all of the iron and steel products used in the Project are in compliance with the American Iron and Steel Requirement as described in Section 608 of the Federal Water Pollution Control Act unless the Local Government has obtained a waiver pertaining to the Project or the Department has advised the Local Government that the requirement is not applicable to the Project. 9. The following four sections are added to the Agreement as follows: 8.11. SIGNAGE. The Local Government agrees to comply with signage guidance in order to enhance public awareness of EPA assistance agreements nationwide. A copy of this guidance is listed on the Department's webpage at http://www.dep.state.fl.us/water/wff/index.htm as "Signage Guidance for Capitalization Grant Projects". 8.12. PUBLIC RECORDS ACCESS. (1) The Local Government shall comply with Florida Public Records law under Chapter 119,F.S. Records made or received in conjunction with this Agreement are public records under Florida law, as defined in Section 119.011(12),F.S. The Local Government shall keep and maintain public records required by the Department to perform the services under this Agreement. (2) This Agreement may be unilaterally canceled by the Department for refusal by the Local Government to either provide to the Department upon request, or to allow inspection and copying of all public records made or received by the Local Government in conjunction with this Agreement and subject to disclosure under Chapter 119, F.S., and Section 24(a),Article I, Florida Constitution. (3) IF THE LOCAL GOVERNMENT HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119, FLORIDA STATUTES, TO THE LOCAL GOVERNMENT'S DUTY TO PROVIDE 4 PUBLIC RECORDS RELATING TO THIS AGREEMENT, CONTACT THE DEPARTMENT'S CUSTODIAN OF PUBLIC RECORDS AT (850) 245-2118, by email at public.servicesAdep.state.fl.us, or at the mailing address below: Department of Environmental Protection ATTN: Office of Ombudsman and Public Services Public Records Request 3900 Commonwealth Blvd, MS 49 Tallahassee, FL 32399 8.13. SCRUTINIZED COMPANIES. The Local Government certifies that it and any of its affiliates are not scrutinized companies as identified in Section 287.135,F.S. In addition,the Local Government agrees to observe the requirements of Section 287.135,F.S., for applicable sub-agreements entered into for the performance of work under this Agreement. Pursuant to Section 287.135,F.S.,the Department may immediately terminate this Agreement for cause if the Local Government, its affiliates, or its subcontractors are found to have submitted a false certification; or if the Local Government, its affiliates,or its subcontractors are placed on any applicable scrutinized companies list or engaged in prohibited contracting activity during the term of the agreement. As provided in Subsection 287.135(8),F.S., if federal law ceases to authorize these contracting prohibitions then they shall become inoperative. 8.14. SUSPENSION. The Department may suspend any or all of its obligations to Loan or provide financial accommodation to the Local Government under this Agreement in the following events,as determined by the Department: (1) The Local Government abandons or discontinues the Project before its completion, (2) The commencement,prosecution, or timely completion of the Project by the Local Government is rendered improbable or the Department has reasonable grounds to be insecure in Local Government's ability to perform,or (3) The implementation of the Project is determined to be illegal,or one or more officials of the Local Government in responsible charge of, or influence over,the Project is charged with violating any criminal law in the implementation of the Project or the administration of the proceeds from this Loan. The Department shall notify the Local Government of any suspension by the Department of its obligations under this Agreement,which suspension shall continue until such time as the event or condition causing such suspension has ceased or been corrected, or the Department has re-instated the Agreement. 5 Local Government shall have no more than 30 days following notice of suspension hereunder to remove or correct the condition causing suspension. Failure to do so shall constitute a default under this Agreement. Following suspension of disbursements under this Agreement, the Department may require reasonable assurance of future performance from Local Government prior to re-instating the Loan. Such reasonable assurance may include,but not be limited to, a payment mechanism using two party checks, escrow or obtaining a Performance Bond for the work remaining. Following suspension,upon failure to cure, correct or provide reasonable assurance of future performance by Local Government,the Department may exercise any remedy available to it by this Agreement or otherwise and shall have no obligation to fund any remaining Loan balance under this Agreement. 10. Section 10.06 PROJECT RELATED COSTS is revised as follows: 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 the Local Government's Project audit or a Department 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($) Design Activities costs 1,369,000 Construction and Demolition 4,850,206 Contingencies 311,977 TOTAL(Loan Principal Amount) 6,531,183 11. All other terms and provisions of the Loan Agreement shall remain in effect. 6 This Amendment 1 to Loan Agreement WW 130301 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 CITY OF OPA-LOCKA City Manager Attest: Approved as to form and legal sufficiency: City Clerk City Attorney SEAL for STATE OF FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION Secretary or Designee Date 7