Title of Item:
FLORIDAN AQUIFER TEST PRODUCTION WELL FA-1 PROJECT LOAN APPLICATION AUTHORIZATION (RC):
RESOLUTION No. 105-2019; A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF STUART, FLORIDA, RELATED TO THE STATE REVOLVING FUND LOAN PROGRAM; MAKING FINDINGS; AUTHORIZING THE FINANCIAL SERVICES DIRECTOR TO SUBMIT THE LOAN APPLICATION AGREEMENT FOR THE $2,340,000.00 FLORIDAN AQUIFER TEST PRODUCTION WELL FA-1 PROJECT; AUTHORIZING THE MAYOR TO EXECUTE THE LOAN AGREEMENT; DESIGNATING AUTHORIZED REPRESENTATIVES; ESTABLISHING PLEDGED REVENUES; PROVIDING ASSURANCES; PROVIDING FOR CONFLICTS; SEVERABILITY, AND EFFECTIVE DATE.
Summary Explanation/Background Information on Agenda Request:
City of Stuart Resolution 51-2018 authorized the City's Financial Services Director to execute the business plan and direct staff to submit the water facilities plan to the Florida Department of Environmental Protection (FDEP), which included the Floridan aquifer well. The City submitted the Request for Inclusion (RFI) application for the Floridan aquifer well to FDEP on June 26, 2019 and was subsequently notified that the project was placed on the FDEP Drinking Water State Revolving Fund Priority List for FY 2020 in August 2019.
The City's Utility Rate Consultant has prepared the financial data in the loan application and provided a letter stating the City is projected to have net revenues over the project period above the amount needed to fund the proposed SRF Loan, including required coverage.
The final work effort required to obtain the $2,340,000.00 Drinking Water SRF Loan is to submit the loan application and execute a loan agreement once the loan application has been approved by FDEP. Prior to being finalized with FDEP, the loan agreement will be subject to the review and approval by the City Commission, City Staff, and the City's Bond Counsel.
Funding Source:
Debt service payments were included in the 2017 Water and Wastewater Rate Study.
Recommended Action:
Approve Resolution No. 105-2019. |