Agenda Item 6AAGENDA ITEM # 6A
APRIL 25, 2011
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: RESOLUTION NO. 11 -20
A RESOLUTION OF THE CITY OF ATLANTIC BEACH, FLORIDA,
RELATING TO THE STATE REVOLVING FUND LOAN PROGRAM;
MAKING FINDINGS; AUTHORIZING THE LOAN APPLICATION;
AUTHORIZING THE LOAN AGREEMENT; ESTABLISHING PLEDGED
REVENUES; DESIGNATING AUTHORIZED REPRESENTATIVES;
PROVIDING ASSURANCE; PROVIDING FOR CONFLICTS,
SEVERABILITY, AND EFFECTIVE DATE.
SUBMITTED BY Nelson Van Liere, Finance Director
DATE: April 13, 2011
BACKGROUND: On December 14, 2010, the City borrowed $9,137,440 from Sun Trust
Bank as a short term bridge loan for sewer plant upgrades so the City could proceed with
awarding a construction bid prior to funds being available from the Florida Department of
Environmental Protection, or F.D.E.P.
On March 9 2011 the F.D.E.P. approved our sewer plant upgrade project in the amount of
$7,927,761 after a public hearing held by the Department. This approval enables the City of
Atlantic Beach to be eligible to apply for a State Revolving Loan. In order to obtain the funds,
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; the City must complete a loan
application similar to the one approved by the Commission for the new water well project.
The application process includes the passage of an enabling resolution authorizing the loan and
execution of a loan agreement. This loan is to be used to pay for construction costs of the project
and to pay off any funds spent that were borrowed from the Sun Trust bridge loan. The Sun
Trust loan was short term financing necessary to make funds available for the City to proceed
with awarding a construction bid prior to funds being available from the F.D.E.P.
The City has completed the application and received the required legal opinion from our bond
counsel, Dan Livermore, Jr. and a letter from Lisa Hayes, Senior Vice President of SunTrust
Bank, consenting to additional debt.
BUDGET: The current year's budget includes funds sufficient for the principal and interest
payments that would be due. Subsequent payments will be budgeted from pledged revenues in
future years. The estimated annual payments for this loan are about $540,000.
RECOMMENDATION: Approve RESOLUTION NO. 11 -20
ATTACHMENTS: RESOLUTION NO. 11 -20
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REVIEWED BY CI �_
AGENDA ITEM # 6A
APRIL 25, 2011
RESOLUTION NO. 11 -20
A RESOLUTION OF THE CITY OF ATLANTIC BEACH, FLORIDA,
RELATING TO THE STATE REVOLVING FUND LOAN PROGRAM;
MAKING FINDINGS; AUTHORIZING THE LOAN APPLICATION;
AUTHORIZING THE LOAN AGREEMENT; ESTABLISHING PLEDGED
REVENUES; DESIGNATING AUTHORIZED REPRESENTATIVES;
PROVIDING ASSURANCE; PROVIDING FOR CONFLICTS,
SEVERABILITY, AND EFFECTIVE DATE.
WHEREAS, Florida Statutes provide for loans to local government agencies to finance the
construction of water pollution control facilities; 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 State Revolving Fund loan priority list designates Project No. WWI 6070 as
eligible for available funding; and
WHEREAS, the City of Atlantic Beach, Florida, intends to enter into a loan agreement with the
Department of Environmental Protection under the State Revolving Fund for project financing.
NOW, THEREFORE BE IT RESOLVED by the City Commission of the City of
Atlantic Beach, Florida that
SECTION L The forgoing findings are incorporated herein by reference and made a part
hereof.
SECTION II. The City of Atlantic Beach, Florida is authorized to apply for a loan to finance
the Project.
SECTION III. The revenues pledged for the repayment of the loan are net water and sewer
utility system revenues after payment of debt service on the City's Utility System Revenue
Bonds, Series 2004, the Utility System Revenue Refunding Bonds, Series 2010B, the Utilities
System Revenue Bonds, Series 2010A -1, and the Utilities System Revenue Bonds, Series
2010A -2, and also after payment of the City's outstanding SRF loan, pursuant to Drinking Water
State Revolving Fund Constiuction Loan Agreement DWI 60710 from the State of Florida
Department of Environmental Protection.
SECTION IV. The City Manager is hereby designated as the authorized representative to
provide the assurances and commitments required by the loan application.
SECTION V. The City Manager is hereby designated as the authorized representative to
execute the loan agreement which will become a binding obligation in accordance with its terms
when signed by both parties. The City Manager is authorized to represent the City in carrying out
the City's responsibilities under the loan agreement. The City Manager is authorized to delegate
responsibility to appropriate City staff to carry out technical, financial and administrative
activities associated with the loan agreement.
AGENDA ITEM # 6A
APRIL 25, 2011
SECTION VI. The legal authority for borrowing moneys to construct this project is Part I,
Charter, Article XV. Municipal Borrowing, Section 60. Authority to Borrow, of the Atlantic
Beach, Florida Code of Ordinances.
SECTION VII. Conflicts. All Resolutions or parts of Resolutions in conflict with any of the
provisions of this Resolution are hereby repealed.
SECTION VIII. Severability. If any Section or portion of a Section of this Resolution proves to
be invalid, unlawful, or unconstitutional, it shall not be held to invalidate or impair the validity,
force or effect of any other Section or part of this Resolution.
SECTION IX. Effective Date. This Resolution shall become effective immediately upon its
passage and adoption.
ADOPTED at a public meeting by the City Commission of the City of Atlantic Beach, Florida
on the Day of April, 2011.
Mike Borno
Mayor/Presiding Officer
Approved as to form and correctness:
Alan C. Jensen, Esquire
City Attorney
ATTEST:
Donna L. Bartle
City Clerk