Ron DeSantis

FLORIDA DEPARTMENT OF Governor

Environmental Protection Jeanette Nunez

Lt, Governor

Marjory Stoneman Douglas Building Noah Valenstein

3900 Commonwealth Boulevard
Secretary
Tallahassee, FL 32399

CERTIFIED MAIL - RETURN RECEIPT REQUESTED

AUG 1 9 2019
Mr. Paul Clinghan, P.E.
Public Works Director
City of Cape Coral
Post Office Box 150027
Cape Coral, Florida 33915-0027

Re: DW360130- Cape Coral

North 2 Transmission & Distribution

Dear Mr. Clinghan:

We are pleased to provide additional financing under the State Revolving Fund loan program for
construction of your project. Enclosed is one original of Amendment 2 to your loan. The
amendment is now in effect.

We congratulate you and your staff on your efforts and are pleased that we can continue working
with you on this project. If we may be of further assistance, please contact Megan Strohl at
(850)245-2899.

Sincerely,

Angelahwrecht, Program Administrator

State Revolving Fund Management

AK/ms

Enclosure

cc: John Szerlag - City of Cape Coral

Elizabeth Ellis - City of Cape Coral
 STATE REVOLVING FUND
AMENDMENT 2 TO LOAN AGREEMENT DW360130
CITY OF CAPE CORAL

This amendment is executed by the STATE OF FLORIDA DEPARTMENT OF

ENVIRONMENTAL PROTECTION (Department) and the CITY OF CAPE CORAL,
FLORIDA,(Project Sponsor) existing as a local governmental entity under the laws of the State
of Florida. Collectively, the Department and the Project Sponsor shall be referred to as “Parties’
or individually as “Party”.

The Department and the Project Sponsor entered into a Drinking Water State Revolving Fund
Loan Agreement, Number DW360130, as amended, authorizing a Loan amount of $61,500,000,
excluding Capitalized Interest; and

The Project Sponsor is entitled to additional financing in the amount of $25,000,000, excluding
Capitalized Interest; and

Certain provisions of the Agreement need revision.

The Parties hereto agree as follows:

Subsection 2.03(1) of the Agreement is deleted and replaced as follows:

(1) The financial assistance authorized pursuant to this Loan Agreement consists of the
following:

Federal Resources, Including State Match, Awarded to the Recipient Pursuant to this Agreement
Consist of the Fo lowing:
State

Federal Program Federal CFDA Funding Appropriation

Number Agency Number CFDA Title Amount Category
Capitalization
66.468
Grants for Drinking 140129
FS984522-160 EPA
Water State
$86,500,000
Revolving Fund

2. Section 8.02 of the Agreement is deleted and replaced as follows:

Books, records, reports, engineering documents, contract documents, and papers shall be
available to the authorized representatives of the Department for inspection at any reasonable
time after the Project Sponsor has received a disbursement and until five years after the Final
Amendment date.

3. Additional financing in the amount of $25,000,000, excluding Capitalized Interest, is

hereby awarded to the Project Sponsor.
 4. An interest rate of 1.48 percent per annum is established for the additional financing
amount awarded in this amendment; however, if this amendment is not executed by the Project
Sponsor and returned to the Department before July 1, 2019, the interest rate may be adjusted.

5. The estimated principal amount of the Loan is hereby revised to $87,667,100, which
consists of $86,500,000 authorized for disbursement to the Project Sponsor and $1,167,100 of
Capitalized Interest. This total consists of the following:

(a) Original Agreement in the amount of $42,197,300, including $41,500,000 authorized

for disbursement to the Project Sponsor and $697,300 of Capitalized Interest, at an interest rate
of 1.11 percent per annum; and

(b) Amendment 1 in the amount of $20,260,500 including $20,000,000 authorized for

disbursement to the Project Sponsor and $260,500 of Capitalized Interest, at an interest rate of
1.39 percent per annum; and

(c) Amendment 2 in the amount of $25,209,300, including $25,000,000 authorized for

disbursement to the Project Sponsor and $209,300 of Capitalized Interest, at an interest rate of
1.48 percent per annum.

6. An additional Loan Service Fee in the amount of $500,000, for a total of $1,730,000,
is hereby estimated. The fee represents two percent of the Loan amount excluding Capitalized
Interest; that is, two percent of $86,500,000.

7. The Semiannual Loan Payment amount is hereby revised and shall be in the amount
of $2,540,780. Such payments shall be received by the Department on March 15, 2021 and
semiannually thereafter on September 15 and March 15 of each year until all amounts due
hereunder have been fully paid. Until this Agreement is further amended, each Semiannual Loan
Payment will be proportionally applied, after deduction of the Loan Service Fee is complete,
toward repayment of the amounts owed on each incremental Loan amount at the date such
payment is due.

The Semiannual Loan Payment amount is based on the total amount owed of
$89,397,100, which consists of the Loan principal plus the estimated Loan Service Fee.

8. The Project Sponsor and the Department aclmowledge that the actual cost of the
Project has not been determined. Project cost adjustments may be made as a result of mutually
agreed upon Project changes. Capitalized Interest will be recalculated based on actual dates and
amounts of Loan disbursements. If the Project Sponsor receives other governmental financial
assistance for this Project, the costs funded by such other governmental assistance will not be
financed by this Loan. The Department shall establish the final Project costs after its final
inspection of the Project records. Changes in Project costs may also occur as a result of an audit.
Funds disbursed in accordance with Section 4.08 of this Agreement shall be disbursed in
the order in which they have been obligated without respect to budgetary line item estimates. All
disbursements shall be made from the original Loan amount until that amount has been
disbursed; the interest rate established for the original Loan amount shall apply to such
disbursements for the purpose of determining the associated Capitalized Interest and repayment

2
amount. The interest rate established for any additional increment of Loan financing shall be
used to determine the Capitalized Interest and repayment amount associated with the funds
disbursed from that increment.

The estimated Project costs are revised as follows:

AUTHORIZED LOAN
AMOUNT ($) TO
CATEGORY PROJECT COSTS ($) DATE
Administrative Allowance 661,637
Engineering Allowance 6,285,552
Construction and Demolition 105,021,761 Line items may vary
Contingencies 5,251,088 based on Actual
Technical Services After Bid Opening 7,296,000 Disbursements
SUBTOTAL (Disbursable Amount) 124,516,038 86,500,000
Capitalized Interest 1,167,100 1,167,100
TOTAL (Loan Principal Amount) 125,683,138 87,667,100

9. Subsection 10.07(5) of the Agreement is revised as follows:

(5) The first Semiannual Loan Payment in the amount of $2,540,780 shall be due
March 15, 2021.

10. All other terms and provisions of the Loan Agreement shall remain in effect.

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

3
 This Amendment 2 to Loan Agreement DW360130 may be executed in two or more
counterparts, any of which shaii be regarded as an original and ail of which constitute but one
and the same instrument.

IN WITNESS WHEREOF,the Department has caused this amendment to the Loan

Agreement to be executed on its behalf by the Secretary or Designee and the Project Sponsor has
caused this amendment to be executed on its behalf by its Authorized Representative and by its
affixed seal. The effective date of this amendment shall be as set forth below by the Department.

Attest: Ap^oved as to formmnd leg^ sufficiency:

r-
<■

City Clerk
4
City Attorney

-V

for
STATE OF FLORIDA
DEPARTMENT OF ENVIRONMENTAL PROTECTION

Secretary or Designee late