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R7I-Submit Requests For Inclusion-Loan Application States Revolving Fund Loan PCOMMISSION ITEM SUMMARY Condensed Title: A Resolution Authorizing the City Manager or his deslgnee to submit a Request for lnclusion 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 ent for Plannino funds to finance stormwater bond Key lntended Outcome Supported: Ensure reliable storm water management and resiliency against flooding by implementing select short and longterm solutions including addressing sea-level rise. Supporting Data: "Addressing flooding" was listed by 11o/o of residents as one of the ways to improve the qulity of life in MiamiBeach. 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 lnclusion 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 the State ino Fund to finance stormwater bond proiects. Fi nancial lnformation : City Clerk's Office Legislative Tracking: Source of Funds: Amount Account 1 2 3 Total Financial lmpact Summary: lnterest rate savings are estimated al 2% on proposed stormwater projects on approximately $302,900,000 in proposed stormwater bond projects. Judy Hoanshelt, Grants Manager, Office of Budget and Performance lmprovement Sign-Offs: Department Director Assistant City Manager .City Manager )n ,/ AGENDA ITEi' DATE R1T t0 - Lz^ luMIAMIBEACH498 MIAMIBEACH City of Miomi Beoch,1700 Convention Center Drive, Miomi Beoch, Florido 33,l39, www.miomibeochfl.gov COMMISSION MEMORANDUM FROM: DATE: Mayor Philip Levine and Members ofthe CitV Co#ission Jimmy L. Morares, city Manaser tt.-1 A_= October 22,2014 \ SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH APPROVING AND AUTHORIZING THE C!ry MANAGER OR HIS DESIGNEE TO TAKE THE FOLLOWING AGTIONS: 1) SUBMIT TO THE STATE OF FLORIDA, DEPARTMENT OF ENVIRONMENTAL PROTECTION, A REQUEST FOR INCLUSION ON THE CLEAN WATER STATE REVOLVING FUND (CWSRF) PRlORlw 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 NEGESSARY 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 2o/o 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. 499 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. lnterest Rates The CWSRF financing rate is determined using the Bond Buyer 20-Bond GO lndex 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 1.2o/o 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 Revolvino Fund Loan Prooram (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 l, ll, V and Vl of the Federal Water Pollution Control Act (FWPCA). These amendments require the Department of Environmental Protection to include Davis-Bacon wage rates and American lron 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 lnclusion 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. lf 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. ln addition to the Planning application, the Administration also intends to submit an application for design and construction funds in 2015. Priorto 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 500 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 lnclusion 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 T:\AGE N DA\20 1 4\October 20 1 4\Grants Memo.doc 501 RESOLUTION NO 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) PRlORlry 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 ASSURANGES 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 approximalely 2o/o; 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 502 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 2O-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 .2o/o 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 2}-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 2Q14was signed into law and among its provisions are amendments that require the Department of Environmental Protection to include Davis-Bacon wage rates and American lron 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 prolect financing of the City's stormwater projects; and WHEREAS, the process for SRF is to submit a Request for lnclusion (RFl) 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 503 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 lnclusion 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 2014. Philip Levine, Mayor ATTEST: Rafael E. Granado, City Clerk JLM/PDW/JWJMH T:\AGENDA9O1 4\October 201 4\Grants Memo.doc APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION City AttomeY \0-\t-rk Date 504 THIS PAGE INTENTIONALLY LEFT BLANK 505