Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Relating To The State Revolving Fund Clean Water Program; Making Findings; Authorizing The Loan Application For $36,882,000.00 Including Capitalized Interest And Loan Service Fee For The Construction Funding For The Ocean Outfall Regulatory Compliance Phase II - Deep Injection Well No. 3 And No. 4 Pump Station Project; Authorizing The Appropriate City Officials To Execute A Loan Agreement For The Funding; Establishing Pledged Revenues; Designating Authorized Representatives; Providing Assurances; Amending The Fiscal Year 2021 Operating Budget For The Water And Sewer Enterprise Fund And Amending The Fiscal Year 2021 Capital Improvement Plan.
Strategic Plan Focus
Infrastructure & Facilities
Body
Staff Recommends: Approval of the attached Resolution.
Explanation:
On July 1, 2008, the Florida Legislature approved and the Governor signed into law House Bill No. 7139 and Senate Bill No. 1302, now referred to as the 2008 Ocean Outfall Legislation (“OOL”), which was later amended in 2013. The OOL requires elimination of disposal of effluent through the ocean outfall that serves the Southern Regional Wastewater Treatment plan (“SRWWTP”) by the year 2025. To meet the mandate of this legislation, the City chose the option of disposing the effluent generated from the SRWWTP to a new deep injection well (“IW”) system that requires constructing two injection wells (No. 3 and 4) and a pump station (“the Project”).
To meet the schedule and funding constraints, the City chose to meet the mandate of OOL by constructing the project in two phases. Phase I consists of drilling and constructing the two IWs and Phase II is the installation of a pump station for pumping effluent into the two IWs. The Department of Public Utilities (“Department”) sought funding from the Florida Department of Environmental Protection (“FDEP”) through the State Revolving Fund Loan (“SRF”) program.
On April 17, 2019 and August 28, 2019, the City Commission approved Resolution Nos. R-2019-094 and R-2019-244 for the funding of the Ocean Outfall Regulatory Compliance Phase I - Deep Injection Wells No. 3 and No. 4 Project (“Phase I”) through the SRF program using both Clean Water and Drinking Water Funding.
On August 28, 2019, the City Commission authorized the appropriate City Officials to execute a contract with Youngquist Brothers, Inc. for construction services related to Phase I in an amount of $39,939,939.00.
Florida Statutes provide for loans to local government agencies to finance the construction of water, wastewater, and stormwater facilities through the SRF Loan Program with FDEP.
Florida Administrative Code (“FAC”) 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.
Total funding required for the Ocean Outfall Regulatory Compliance Phase II - Deep Injection Wells No. 3 and No. 4 Pump Station Project (“Phase II”) is estimated in the amount of $96,825,579.00 including Capitalized Interest and Loan Service Fees of $2,486,329.00.
In March 2021, the Department submitted a Request For Inclusion (“RFI”) to be included on the SRF fundable portion of the Priority List for Phase II. The Department submitted the required documents, including the biddable Plans, Specification, and Permit to meet FDEP requirements in conformity with Chapter 52-503 of the FAC. On April 23, 2021, the biddable Plans, Specification and Permit were accepted in conformity with the requirements.
On May 12, 2021, FDEP, through the Clean Water SRF Program, placed the City’s Phase II Project on the Priority List designated as DEP Project CW0604C for construction funds.
The Department wishes to enter into two loan agreements with FDEP for the Phase II Project. One loan agreement is under the Clean Water SRF Loan for construction financing in the amount of $36,882,000.00 including Capitalized Interest and Loan Service Fees of $882,000.00 and the other loan agreement (authorization requested under a separate resolution) is under the Drinking Water SRF Loan for construction financing in the amount of $59,943,579.00 including Capitalized Interest and Loan Service Fees of $1,604,329.00.
The Director of Public Utilities recommends that the City Commission authorize the appropriate City Officials to enter into the loan agreements with FDEP under the SRF Loan Program to finance the Phase II Project.
Fiscal Impact
The Department of Public Utilities desires to enter into two loan agreements with FDEP for the Phase II Project in a total estimated amount of $96,825,579.00.
This item authorizes the appropriate City officials to enter into a loan agreement for a portion of the Phase II Project costs in the amount of $36,882,000.00 through the SRF Clean Water Program. The loan authorization for the remainder of the funding for this Phase II Project will be approved via a companion item.
Funding for this portion of the Phase II Project requires amending the approved FY 2021 Operating Budget and Capital Improvement Program as detailed in Exhibit 1, subject to approval of this resolution.
The Department of Public Utilities has hired a Consultant to manage this Phase II Project. The determination of the need for any additional staff will be ascertained at a future date once the full project is completed.
Recommended for inclusion on the agenda by:
Keith Moran, Deputy Director, Finance, Department of Public Utilities
Vivek Galav, Director, Department of Public Utilities
Gus Zambrano, Assistant City Manager/Sustainable Development
Attachments
• Resolution
• Exhibit 1
• City Manager Memo No. CM-20-016