2014-28797 Reso RESOLUTION NO. 201428797
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH APPROVING AND AUTHORIZING THE CITY MANAGER OR
HIS DESIGNEE TO TAKE THE FOLLOWING ACTIONS: 1) SUBMIT TO THE
STATE OF FLORIDA, DEPARTMENT OF ENVIRONMENTAL PROTECTION,
A REQUEST FOR INCLUSION ON THE CLEAN WATER STATE REVOLVING
FUND (CWSRF) PRIORITY LIST; 2) SUBMIT TO THE STATE OF FLORIDA,
DEPARTMENT OF ENVIRONMENTAL PROTECTION, A LOAN APPLICATION
FOR PLANNING FUNDS FROM THE CLEAN WATER STATE REVOLVING
FUND PROGRAM; AND, 3) ESTABLISH PLEDGED REVENUES AND
EXECUTE A LOAN AGREEMENT FOR PLANNING FUNDS THROUGH THE
STATE REVOLVING FUND PROGRAM TO FINANCE PROPOSED
STORMWATER BOND PROJECTS; APPROVING AND AUTHORIZING THE
APPROPRIATION OF THE ABOVE FUNDS, INCLUDING ANY CITY
EXPENSES; AND FURTHER AUTHORIZING THE CITY MANAGER OR HIS
DESIGNEE TO TAKE ALL NECESSARY STEPS AND EXECUTE ALL
NECESSARY DOCUMENTS RELATED TO THE ABOVE ACTIONS AND TO
PROVIDE THE ASSURANCES AND COMMITMENTS REQUIRED BY THE
LOAN APPLICATION
WHEREAS, the Clean Water State Revolving Fund (CWSRF) Loan program is
managed by Florida Department of Environmental Protection and makes funds
available, primarily to local governments, for Clean Water and Drinking Water SRF
projects; and
WHEREAS, the Administration intends to apply for a State Revolving Fund Loan
to finance approximately $302,900,000 in proposed stormwater bond projects and if
approved, the estimated interest savings over the life of the bonds will be
approximately 2%; and
WHEREAS, the CWSRF provides financial savings through low-interest loans
for projects that benefit the environment, including protection of public health and
conservation of local watersheds; and
WHEREAS, CWSRF monies are then loaned to communities at lower than
market rate interest-rates, and loan repayments are recycled back into the program to
fund additional water quality protection projects and the revolving nature of these
programs provides for an ongoing funding source that will last far into the future; and
WHEREAS, Florida Administrative Code rules require authorization to apply for
loans, to establish pledged revenues, to designate an authorized representative; to
provide assurances of compliance with loan program requirements; and to enter into a
loan agreement; and
WHEREAS, the Clean Water SRF Program began in 1989 and over $2 billion in
loans have been made by the Florida Department of Environmental Protection and the
CWSRF financing rate is determined using the Bond Buyer 20-Bond GO Index average
market rate for the full weeks occurring during the three months in the preceding fiscal
quarter and applying that average rate to a formula which also uses the affordability
index and population served or to be served as variables in the calculation, there are
up to 1.2% in additional rate reductions that may be assessed based on Davis-Bacon
requirements, Buy American requirements, asset management plan, and "green"
projects; and
WHEREAS, funds are made available for planning, design and construction
loans and the loan terms include a 20-year amortization and low-interest rates and
financing rates vary based on the median household income, the poverty index, and
the unemployment index; and
WHEREAS, on June 10, 2014, the Water Resources Reform and Development
Act of 2014 was signed into law and among its provisions are amendments that require
the Department of Environmental Protection to include Davis-Bacon wage rates and
American Iron and Steel provisions in all loan agreements, therefore, to offset the
additional costs that result from these new requirements, the base financing rate is
reduced by 1.0 percent in all construction agreements and these amendments will
require the development and implementation of a fiscal sustainability plan for all
construction loans which must be accepted and implemented prior to the final
construction loan disbursement; and
WHEREAS, the Administration intends to apply for a CWSRF loan and enter
into a loan agreement with the Department of Environmental Protection for project
financing of the City's stormwater projects; and
WHEREAS, the process for SRF is to submit a Request for Inclusion (RFI) to
the State for inclusion on the CWSRF and the information contained in the RFI will be
used to determine a priority score for the city's project; the priority score will be used to
rank our project on the SRF priority list and only projects ranked on the fundable
portion of the priority list will receive consideration for a loan; projects on the fundable
portion of the priority list will then be asked to submit a loan application form and any
project costs incurred before a SRF loan agreement is executed or an authorization to
incur costs is provided are ineligible for reimbursement; and
WHEREAS, if the City's project is placed on the Priority List by the State, the
Administration will submit a loan application for planning funds in the upcoming SRF
cycle, in addition to the Planning application, the Administration will also submit a loan
application for design and construction funds; and
WHEREAS, prior to receiving the planning loan, the City will need to provide a
Planning Document to the State which outlines details of the project, financial
feasibility, environmental effects, cost comparisons and a results of the required public
participation meeting, therefore, the Administration will present a separate Resolution
to the Commission requesting approval to submit a loan application for construction
funding; and
WHEREAS, the City is required to provide the assurances and commitments
required by the loan application and to establish pledged revenues, as such, the
pledged revenues will be net stormwater revenues, the proposed Stormwater Bond
Projects to be funded are estimated at approximately $302,900,000; and
NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH that the Mayor and City Commission
Beach approve and authorize the City Manager or his designee to take the following
actions: 1) submit to the State of Florida, Department of Environmental Protection, a
Request for Inclusion on the Clean Water State Revolving Fund (CWSRF) Priority List;
2) Submit to the State of Florida, Department of Environmental Protection, a loan
application for planning funds from the Clean Water State Revolving Fund Program; and,
3) Establish pledged revenues and execute a loan agreement for planning funds
through the State Revolving Fund Program to finance proposed stormwater bond
projects; approving and authorizing the appropriation of the above funds, including any
city expenses; and further authorizing the City Manager or his designee to take all
necessary steps and execute all necessary documents related to the above actions and
to provide the assurances and commitments required by the loan application.
PASSED and ADOPTED this day of OCIO 6Pr , 2014.
i 'Levine, Mayor
ATTEST:
INCORP JOR;TES: `y r
Rafael E. Granado, City Clerk ; c�;A"
APPROVED AS TO
JLM/PDW/JW/JMH FORM & LANGUAGE
T:\AGENDA\2014\0ctober 2014\Grants Memo.doc & FOR EXECUTION
City Attomey Date
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Authorizing the City Manager or his designee to submit a Request for Inclusion on the
State of Florida, Department of Envirnomental Protection State Revolving Fund Loan (SRF) Priority List,
and if approved, authorizing the Adminsitration to submit an application to the SRF and execute a loan
agreement for Planning funds to finance proposed stormwater bond projects.
Key Intended Outcome Supported:
Ensure reliable storm water management and resiliency against flooding by implementing select short
and long-term solutions including addressing sea-level rise.
Supporting Data:
"Addressing flooding" was listed by 11% of residents as one of the ways to improve the qulity of life in
Miami Beach.
Item Summary/Recommendation:
Approve and authorize the City Manager or his designee to take the following actions: 1) submit to the
State of Florida, Department of Environmental Protection, a Request for Inclusion on the Clean Water
State Revolving Fund (CWSRF) Priority List; 2) Submit to the State of Florida, Department of
Environmental Protection, a loan application for planning funds from the Clean Water State Revolving
Fund Program; and, 3) Establish pledged revenues and execute a loan agreement for planning funds
through the State Revolving Fund Program to finance proposed stormwater bond projects.
Financial Information:
Source of Amount Account
Funds: 1
2
3
Total
Financial Impact Summary: Interest rate savings are estimated at 2% on proposed stormwater
projects on approximately$302,900,000 in proposed stormwater bond projects.
City Clerk's Office Legislative Tracking:
Judy Hoanshelt, Grants Manager, Office of Budget and Performance Improvement
Sign-Offs:
Department Director Assistant City Manager City Manager
JW PDW
AGENDA ITEM -IT
MIAMIBEACH 10-22-
�ATE
MIAMI BE H
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Philip Levine and Members of he City Co ission
FROM: Jimmy L. Morales, City Manager
DATE: October 22, 2014
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH APPROVING AND AUTHORIZING THE CITY MANAGER
OR HIS DESIGNEE TO TAKE THE FOLLOWING ACTIONS: 1) SUBMIT TO
THE STATE OF FLORIDA, DEPARTMENT OF ENVIRONMENTAL
PROTECTION, A REQUEST FOR INCLUSION ON THE CLEAN WATER
STATE REVOLVING FUND (CWSRF) PRIORITY LIST; 2) SUBMIT TO THE
STATE OF FLORIDA, DEPARTMENT OF ENVIRONMENTAL PROTECTION, A
LOAN APPLICATION FOR PLANNING FUNDS FROM THE CLEAN WATER
STATE REVOLVING FUND PROGRAM; AND, 3) ESTABLISH PLEDGED
REVENUES AND EXECUTE A LOAN AGREEMENT FOR PLANNING FUNDS
THROUGH THE STATE REVOLVING FUND PROGRAM TO FINANCE
PROPOSED STORMWATER BOND PROJECTS; APPROVING AND
AUTHORIZING THE APPROPRIATION OF THE ABOVE FUNDS, INCLUDING
ANY CITY EXPENSES; AND FURTHER AUTHORIZING THE CITY MANAGER
OR HIS DESIGNEE TO TAKE ALL NECESSARY STEPS AND EXECUTE ALL
NECESSARY DOCUMENTS RELATED TO THE ABOVE ACTIONS AND TO
PROVIDE THE ASSURANCES AND COMMITMENTS REQUIRED BY THE
LOAN APPLICATION
ANALYSIS
The Clean Water State Revolving Fund (CWSRF) Loan program is managed by Florida
Department of Environmental Protection and makes funds available, primarily to local
governments, for Clean Water and Drinking Water State Revolving Fund projects. The
estimated interest savings over the life of the bonds is 2% and the Administration
intends to finance approximately $302,900,000 in proposed stormwater bond projects.
The CWSRF provides financial savings through low-interest loans for projects that
benefit the environment, including protection of public health and conservation of local
watersheds. Federal and state contributions fund the loans for a wide variety of
projects including stormwater, watershed protection or restoration, water reuse and
conservation projects. CWSRF monies are then loaned to communities at lower than
market rate interest-rates, and loan repayments are recycled back into the program to
fund additional water quality protection projects. The revolving nature of these
programs provides for an ongoing funding source that will last far into the future.
Florida Administrative Code rules require authorization to apply for loans, to establish
pledged revenues, to designate an authorized representative; to provide assurances of
compliance with loan program requirements; and to enter into a loan agreement.
Commission Memorandum
Page 2
SRF in Florida
The Clean Water SRF Program began in 1989 and over $2 billion in loans have been
made by the Florida Department of Environmental Protection.
Interest Rates
The CWSRF financing rate is determined using the Bond Buyer 20-Bond GO Index
average market rate for the full weeks occurring during the three months in the
preceding fiscal quarter and applying that average rate to a formula which also uses
the affordability index and population served or to be served as variables in the
calculation. There are up to 1.2% in additional rate reductions that may be assessed
based on Davis Bacon requirements, Buy American requirements, asset management
plan, and "green" projects.
Clean Water State Revolving Fund Loan Program (CWSRF)
Funds are made available for Planning, Design and Construction Loans. The Loan
Terms include a 20-year amortization and low-interest rates. Preconstruction loans are
available to all communities and provide up-front disbursements for administrative
services, project planning and project design. Financing rates vary based on the
median household income, the poverty index, and the unemployment index.
On June 10, 2014, the Water Resources Reform and Development Act of 2014 was
signed into law. Among its provisions are amendments to Titles I, Il, V and VI of the
Federal Water Pollution Control Act (FWPCA). These amendments require the
Department of Environmental Protection to include Davis-Bacon wage rates and
American Iron and Steel provisions in all loan agreements. To offset the additional
costs that result from these new requirements, the base financing rate will be reduced
by 1.0 percent in all construction agreements. Additionally, these amendments will
require the development and implementation of a fiscal sustainability plan for all
construction loans. This plan must be accepted and implemented prior to the final
construction loan disbursement.
The Administration intends to apply for CWSRF and enter into a loan agreement with
the Department of Environmental Protection under the State Revolving Fund for project
financing for the City's stormwater projects. The process for SRF is: 1) Submit a
Request for Inclusion to the State for inclusion on the CWSRF. The information
contained in the RFI will be used to determine a priority score for our project; the
priority score will be used to rank our project on the SRF priority list. Only projects
ranked on the fundable portion of the priority list will receive consideration for a loan.
Projects on the fundable portion of the priority list will then be asked to submit a loan
application form. Project costs incurred before a SRF loan agreement is executed or
an authorization to incur costs is provided are ineligible for reimbursement.
If the City's project is placed on the Priority List by the State, the Administration will
submit a loan application for Planning funds in the upcoming SRF cycle. In addition to
the Planning application, the Administration also intends to submit an application for
design and construction funds in 2015. Prior to receiving the Planning Loan, the City
will need to provide a Planning Document to the State which outlines details of the
project, financial feasibility, environmental effects, cost comparisons and results of the
required public participation meeting. The Administration will present a separate
Resolution to the Commission requesting approval to submit a loan application for
i
Commission Memorandum
Page 3
construction funding. The City is required to provide the assurances and commitments
required by the loan application and to establish pledged revenues. The pledged
revenues will be net stormwater revenues. The proposed Stormwater Bond Projects to
be funded through this program are estimated at approximately $302,900,000.
CONCLUSION
A Resolution of the Mayor and City Commission of the City of Miami Beach approving
and authorizing the City Manager or his designee to take the following actions: 1) submit
to the State of Florida, Department of Environmental Protection, a Request for Inclusion
on the Clean Water State Revolving Fund (CWSRF) Priority List; 2) Submit to the State
of Florida, Department of Environmental Protection, a loan application for planning funds
from the Clean Water State Revolving Fund Program; and, 3) Establish pledged
revenues and execute a loan agreement for planning funds through the State Revolving
Fund Program to finance proposed stormwater bond projects; approving and authorizing
the appropriation of the above funds, including any city expenses; and further
authorizing the City Manager or his designee to take all necessary steps and execute all
necessary documents related to the above actions and to provide the assurances and
commitments required by the loan application.
JLM/PDW/JW/JMH
TAAGENDA\2014\October 2014\Grants Memo.doc