Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Relating To The State Revolving Fund Loan Program; Making Findings; Authorizing Loan Applications For $12,050,000.00 (Including Capitalized Interest And Loan Service Fees) For Funding Of Projects Related To The Four-Log Treatment Of Groundwater Project; Authorizing The Loan Agreement; Establishing Pledged Revenues; Designating Authorized Representatives; Providing Assurances; Providing For Conflicts, Severability, And An Effective Date.
Strategic Plan Focus
Financial Management & Administration
Body
Staff Recommends: Approval of the attached Resolution
Explanation:
The City of Hollywood owns and operates a potable water system to supply safe and reliable drinking water to its residents and portions of several other municipalities referred to as “Large Users”. The City’s Water Treatment Plant (WTP) is the sole source of treated water to these customers. The City’s WTP has a service area covering 41.2 square miles and includes over 700 miles of pipeline. Raw water from the Biscayne Aquifer wells serves as the primary source water to the WTP and is treated using lime softening and membrane softening treatment processes.
The Florida Statutes provide for loans to local government agencies to finance the construction of water, wastewater, and stormwater facilities through the State Revolving Fund (SRF) Loan Program with the Florida Department of Environmental Protection (DEP)
The 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.
To facilitate the project, the Department of Public Utilities (Department) sought funding from FDEP) through the SRF program. The funding will allow the Department to complete the required modifications and upgrades for this project as soon as feasible.
The implementation of 4-Log virus treatment of the water using free chlorine would guarantee that the WTP meets or exceeds regulator breakpoints which would reduce the potential instances and impacts of boil water orders.
The city has entered into a loan agreement with FDEP through the SRF program as authorized by Resolution R-2024-056 for SRF Project No. LS-0604F for funding of projects related to emerging contaminants compliance.
The Department recommends that the City Commission authorize the appropriate City Officials to amend Resolution R-2024-056 to include project financing in the amount of $12,186,138 including Capitalized Interest and Loan Service fees, for Four-Log.
The Director of Public Utilities recommends that the City Commission authorize the appropriate City Officials to amend the loan agreement with FDEP under the SRF Loan Program to finance the Four-Log Virus Treatment of Groundwater project.
The Department of Public Utilities will hire a consultant to manage this Project. The determination of additional staff will be ascertained at a future date once the full project is completed.
Fiscal Impact
This item authorizes the appropriate City Officials to enter into a loan agreement through the Drinking Water State Revolving Fund Loan Program for 4-Log virus treatment project.
Debt service funding for this loan will be budgeted in subsequent fiscal years’ operating budget subject to approval and adoption by the City Commission.
Recommended for inclusion on the agenda by:
Phyllis Shaw, Deputy Director, Finance, Department of Public Utilities
Vincent Morello, P.E., Director, Department of Public Utilities
Chris O’Brien, Director of Public Safety