Item Coversheet

12.

CITY OF STUART, FLORIDA
AGENDA ITEM REQUEST
CITY COMMISSION

Meeting Date:  1/14/2019 

Prepared by:  Tim Voelker, P.E. - Assistant Public Works Director/City Engineer

Title of Item:

AUTHORIZE LOAN AGREEMENT FOR PFC WATER TREATMENT (RC):

 

RESOLUTION No. 06-2019;  A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF STUART, FLORIDA, RELATED TO THE STATE REVOLVING FUND LOAN PROGRAM; MAKING FINDINGS; AUTHORIZING THE MAYOR TO EXECUTE THE DRINKING WATER FACILITIES STATE REVOLVING FUND LOAN AGREEMENT FOR THE CONSTRUCTION OF THE PER-FLUORINATED CHEMICAL TREATMENT SYSTEM PROJECT; DESIGNATING AUTHORIZED REPRESENTATIVES; ESTABLISHING PLEDGED REVENUES; PROVIDING ASSURANCES; PROVIDING FOR CONFLICTS; SEVERABILITY; AND EFFECTIVE DATE.


Summary Explanation/Background Information on Agenda Request:

On October 8, 2018, the City Commission authorized the City's Financial Services Director to submit a Drinking Water Facilities State Revolving Fund (SRF) loan application to obtain funding for the construction of the Per-Fluorinated Chemical Treatment System at the City's Water Treatment Facility. The SRF loan application was submitted to the Florida Department of Environmental Protection (FDEP) on October 17, 2018.

 

FDEP subsequently sent the City a proposed loan agreement on December 7, 2018. The principal amount of the loan is $2,035,244.00, which includes $372,841.00 of principal forgiveness and $4,700.00 of capitalized interest. In addition, a loan service fee is estimated at $40,611.00 for the loan amount authorized to date. This fee represents two percent of the loan amount excluding principal forgiveness and capitalized interest.

 

Please note on June 26, 2017 the City retained the law firms of Weitz & Luxenberg and Morgan & Morgan to recover compensatory damages arising from per-fluorinated compound contamination of groundwater and drinking water supply wells. The Complaint was filed with the United States District Court for the Southern District of Florida on October 18, 2018.



Funding Source:

Debt service payments were included in the 2017 Water and Wastewater Rate Study.

Recommended Action:

Approve Resolution No. 06-2019

 

ATTACHMENTS:
DescriptionUpload DateType
R06-2019 Authorize Loan Agreement - PFC Treatment System1/2/2019Resolution add to Y drive
Exhibit A - State Revolving Fund Loan Agreement DW4304201/2/2019Exhibit