2016-29486 Reso RESOLUTION NO. 2016-29486
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE CITY
MANAGER, OR HIS DESIGNEE, TO TAKE THE FOLLOWING ACTIONS:
SUBMIT TO THE STATE OF FLORIDA, DEPARTMENT OF
ENVIRONMENTAL PROTECTION, REQUESTS FOR INCLUSION IN THE
CLEAN WATER STATE REVOLVING FUND (CWSRF) AND DRINKING
WATER STATE REVOLVING FUND (DWSRF) PROGRAMS' PRIORITY
LISTS; SUBMIT TO THE STATE OF FLORIDA, DEPARTMENT OF
ENVIRONMENTAL PROTECTION, LOAN APPLICATIONS FOR
CONSTRUCTION FUNDS FROM THE CWSRF AND DWSRF PROGRAMS;
AND, ESTABLISH PLEDGED REVENUES AND EXECUTE LOAN
AGREEMENTS FOR CONSTRUCTION FUNDS THROUGH THE CWSRF AND
DWSRF PROGRAMS TO FINANCE PROPOSED WATER AND
WASTEWATER 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 TO EXECUTE ALL
NECESSARY DOCUMENTS RELATED TO THE ABOVE ACTIONS AND TO
PROVIDE THE ASSURANCES AND COMMITMENTS REQUIRED BY THE
LOAN APPLICATIONS.
WHEREAS, the Clean Water State Revolving Fund (CWSRF) and the Drinking Water
State Revolving Fund (DWSRF) Loan programs (collectively, the State Revolving Funds
(SRF)) are managed by the Florida Department of Environmental Protection (DEP). DEP
makes these funds available, primarily to local governments. The City's Administration (the
Administration) intends to finance approximately $50 million in proposed water and sewer
projects with revenue bonds. The estimated interest rate for the State Revolving Loans is
between 0.5% and 1%; and
WHEREAS, the CWSRF and DWSRF programs 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 clean water, drinking water, stormwater, watershed protection or
restoration, and 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; 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. Both SRFs are reimbursement type loans requiring the city to advance funds for
the projects, however, SRF also allows cities to request payment prior to disbursement of
funds by the City based on the receipt of invoices from the contractor. The City will need to
obtain approval from the State in order to issue future revenue bonds; 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
WHEREAS, 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. The estimated rate for this loan will be between 0.5% and 1%; and
WHEREAS, 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; and
WHEREAS, 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, II, 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 is 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; and
WHEREAS, the Administration intends to apply for the SRF and enter into a loan
agreement with the Department of Environmental Protection under the SRF for project
financing for the construction of the City's water and wastewater projects. The process for the
SRF Program is: submit Requests for Inclusion (RFI) to the State for inclusion on the CWSRF
and DWSRF. 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 before
an authorization to incur costs is provided by DEP are ineligible for reimbursement; and
WHEREAS, if the City's projects are placed on the Priority List by the State, the
Administration will submit loan applications for construction funds in the upcoming SRF cycle.
Prior to receiving the construction loan, the City will need to provide planning documents to the
State which outline details of the project, financial feasibility, environmental effects, cost
comparisons, and results of the required public participation meetings. The City is required to
provide the assurances and commitments required by the loan applications and to establish
pledged revenues, including debt service payments and all bonded debt covenants.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH that the Mayor and City Commission hereby
approve and authorize the City Manager, or his designee, to take the following actions: submit
to the State of Florida, Department of Environmental Protection, Requests for Inclusion on the
Clean Water State Revolving Fund (CWSRF) and Drinking Water State Revolving Fund
(DWSRF) programs Priority Lists; submit to the State of Florida, Department of Environmental
Protection, loan applications for construction funds from the CWSRF and DWSRF Programs;
and, establish pledged revenues and execute loan agreements for construction funds through
the State Revolving Fund Programs to finance proposed water and wastewater projects; the
Mayor and City Commission further hereby approve and authorize the appropriation of the
above funds, including any City expenses; and further authorize 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 applications.
PASSED and ADOPTED this /3 day of Jil,r. , 2016.
Alle/.' :
Philip Levin- !ayor
ATTEST:
Ra ael E. Granad , City Cle�l . ;1` • •.%E... C 4 APPROVED AS TO
.,..: � ,.„, .•.. �'\ FORM & LANGUAGE
;` - ri;% / & FO EXECU O■
i : Ir ,-., • 1-- r�
ORATED: I - / l'
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City Attorney Dote
JLM/CGR/EC/AW/JH . CH 2 ., 7
T:\AGENDA\2016UuLY\OBPI\SRFReso.docx
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Authorizing the City Manager or his designee to submit Requests for Inclusion for the State
of Florida, Department of Environmental Protection Clean Water and Drinking Water State Revolving
Fund loan (SRF) priority lists, and if approved, authorizing the Administration to submit loan applications
to the State Revolving Fund Programs, establish pledged revenues and execute loan agreements for
funding to finance proposed water and wastewater 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: 2014 Community Satisfaction Survey/Other data:
"Addressing flooding" was listed by 11% of residents as one of the ways to improve the quality of life in
Miami Beach.
Item Summary/Recommendation:
A Resolution approving and authorizing the City Manager or his Designee to take the following actions:
submit to the State of Florida, Department of Environmental Protection, Requests for Inclusion for the
Clean Water State Revolving Fund (CWSRF) and Drinking Water State Revolving Fund (DWSRF)
programs priority lists; submit to the State of Florida, Department of Environmental Protection, loan
applications for construction funds from the Clean Water and Drinking Water State Revolving Fund
Programs; establish pledged revenues and execute loan agreements for construction funds through the
State Revolving Fund Programs to finance proposed water and wastewater 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
applications.
Financial Information:
Source # Project Approx. Approximate Match
of funds Award Amount/Source
Financial Impact Summary: Interest rate is estimated at between 0.5%to 1%.
City Clerk's Office Legislative Tracking:
Judy Hoanshelt, Grants Officer, Office of Budget and Performance Improvement
Sign-Offs:
Department Director Assistant City Manager CitA Manager
• C(\\ •
AGENDA ITEM R/ C"
MIAMI BEACH DATE '7- 13"lCe7
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeochfl.gov
COMMIS ION MEMORANDUM
TO: Mayor Philip Levine and Members o the City C.• mission
FROM: Jimmy L. Morales, City Manager "
DATE: July 13, 2016
SUBJECT: A RESOLUTION OF THE MAYO AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH APPROVING AND AUTHORIZING THE CITY MANAGER
OR HIS DESIGNEE TO TAKE THE FOLLOWING ACTIONS: SUBMIT TO
THE STATE OF FLORIDA, DEPARTMENT OF ENVIRONMENTAL
PROTECTION, REQUESTS FOR INCLUSION ON THE CLEAN WATER
STATE REVOLVING FUND (CWSRF) AND DRINKING WATER STATE
REVOLVING FUND (DWSRF) PROGRAMS PRIORITY LISTS; SUBMIT TO
THE STATE OF FLORIDA, DEPARTMENT OF ENVIRONMENTAL
PROTECTION, LOAN APPLICATIONS FOR CONSTRUCTION FUNDS
FROM THE CLEAN WATER AND DRINKING WATER STATE REVOLVING
FUND PROGRAMS; AND, ESTABLISH PLEDGED REVENUES AND
EXECUTE LOAN AGREEMENTS FOR CONSTRUCTION FUNDS THROUGH
THE STATE REVOLVING FUND PROGRAMS TO FINANCE PROPOSED
WATER AND WASTEWATER 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 APPLICATIONS
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The Clean Water and Drinking Water State Revolving Fund Loan programs (CWSRF
and DWSRF) are managed by Florida Department of Environmental Protection (DEP).
DEP makes these funds available, primarily to local governments. The City's
Administration intends to finance approximately $50 million in proposed water and
sewer projects with revenue bonds. The estimated interest rate for the State Revolving
Loan is between 0.5% and 1%.
The CWSRF and DWSRF programs provide 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 clean water, drinking water, stormwater. watershed
Commission Memorandum
Page 2
protection or restoration, water reuse and conservation projects. CWSRF and DWSRF
funds 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. Both
SRFs are reimbursement type loans requiring the city to advance funds for the
projects, however, the SRF has a procedure to request payment prior to disbursement
of funds by the City based on receipt of invoice from the contractor. The City will need
to obtain approval from the State in order to issue future revenue bonds.
SRF in Florida
The SRF Program began in 1989 and over $2 billion in loans have been made by the
Florida Department of Environmental Protection.
Interest Rates
The 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. The estimated rate for this loan will be between 0.5% and 1%.
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, II, 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 is 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 State Revolving Fund loans and enter into loan
agreements with the Department of Environmental Protection for project financing for
the construction of the City's water and wastewater projects. The process for the State
Revolving Fund Program (SRF) is: Submit Requests for Inclusion to the State. The
Commission Memorandum
Page 3
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
loans. 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 before an authorization to incur costs is provided by DEP are ineligible for
reimbursement.
If the City's projects are on the Priority Lists by the State, the Administration will submit
loan applications for construction funds in the upcoming SRF cycle. Prior to receiving
the construction loan, the City will need to provide planning documents to the State
which outline details of the project, financial feasibility, environmental effects, cost
comparisons and results of the required public participation meetings. The City is
required to provide the assurances and commitments required by the loan applications
and to establish pledged revenues, including debt service payments and all bonded
debt covenants.
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: submit to
the State of Florida, Department of Environmental Protection, Requests for Inclusion on
the Clean Water State Revolving Fund (CWSRF) and Drinking Water State Revolving
Fund (DWSRF) programs Priority Lists; submit to the State of Florida, Department of
Environmental Protection, loan applications for construction funds from the Clean Water
and Drinking Water State Revolving Fund Programs; and, establish pledged revenues
and execute loan agreements for construction funds through the State Revolving Fund
Programs to finance proposed water and wastewater 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 applications.
J LM/CG R/%/AW/J�
T:\AGENDA\2016UuLY\OBPRSRFMemo.docx