TO: Mayor and Commission AGENDA DATE: 5/20/2024
FROM: Interim City Manager AGENDA ITEM: 9 - F
SUBJECT:
Title
Request approval for State Revolving Fund - Amendment 3 to Loan Agreement WW641860 with the Florida Department of Environmental Protection, specific to the Alexander Avenue Reclaimed Water Augmentation Project (aka Lake Monroe Project Phase 4B) in the amount of $2,638,605- Phyllis Wallace, Interim Public Works Director (386) 878-8965.
Strategic Goal: Infrastructure
Body
LOCATION:
Not Applicable
COST:
$2,638,605; Loan Service Fee $51,737 equals 2% of the Loan Amount of $2,586,868
SOURCE OF FUNDS:
Deltona Water
ORIGINATING DEPARTMENT:
Public Works/Deltona Water
STAFF RECOMMENDATION PRESENTED BY:
That the Commission approve and authorize the execution of the Revolving Fund - Amendment 3 to Loan Agreement WW641860 with the Florida Department of Environmental Protection, specific to the Alexander Avenue Reclaimed Water Augmentation Project (aka Lake Monroe Project Phase 4B) in the amount of $2,638,605 - Phyllis Wallace, Interim Public Works Director (386) 878-8965
POTENTIAL MOTION:
Recommendation
“I move to approve and authorize the execution of the Revolving Fund - Amendment 3 to Loan Agreement WW641860 with the Florida Department of Environmental Protection, specific to the Alexander Avenue Reclaimed Water Augmentation Project (aka Lake Monroe Project Phase 4B) in the amount of $2,638,605. The City Manager has the authority to make corrections of scrivener’s errors and the like.”
END
BACKGROUND:
Background
Resolution 2021-23 authorized the agreement between State and the City of Deltona for the Alexander Avenue Reclaimed Water Augmentation Project (aka Lake Monroe Project Phase 4B). The project as the Mayor & Commission is aware has been determined to be un-constructable. To-date, the City has drawn down on State Revolving Fund loan in the amount of $2,586.868, which will need to be repaid. This agreement documents the draw down amount as well as the Loan Service Fee $51,737 for a total repayment of $2,638,605. The City will begin Semiannual Loan Payments in the amount of $65,965.13 with the first payment due by February 15, 2025 and semiannual thereafter on August 15 and February 15 of each year until all amounts due have been fully paid.
The initial loan was approved in the amount of $7,144,000. Amendment 1 to the Loan reduced the amount by $1,421,506 for a revised loan amount of $5,722,494. Amendment 2 to the Loan provided a deferred repayment date due to the project having construction difficulties. Amendment 3 memorializes the amount drawn down on the loan and the amount due for repayment.
End