FLORIDA DEPARTMENT OF “Tear Environmental Protection JeanoteNuter LL Govemor Mayjory Stoneman Douglas Building rate 3900 Commonwealth Boulevard aera Tallahassee, FL 32399 CERTIFIED MAIL - RETURN RECEIPT REQUESTED RECENED FEB 11 2020 ‘PUBLIC WORKS DEPARTMENT January 30, 2020 Mr. Paul Clinghan Deputy Public Works Director City of Cape Coral Post Office Box 150027 Cape Coral, Florida 33915-0027 Re: DW360130 ~ Cape Coral North 2 Transmission and 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 3 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 Sarah LaRose at (850)245-2968. Sincerely, Jewel Angeld Knecht, Program Administrator State Revolving Fund Management AKIsl Enclosure ce: John Szerlag ~ City of Cape Coral Elizabeth Ellis — City of Cape CoralSTATE REVOLVING FUND AMENDMENT 3 TO LOAN AGREEMENT DW360130 CITY OF CAPE CORAL 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 $86,500,000, excluding Capitalized Interest; and The Project Sponsor is entitled to additional financing in the amount of $20,000,000, excluding Capitalized Interest; and Loan repayment activities need rescheduling to give the Project Sponsor additional time to complete construction; and Certain provisions of the Agreement need revision and several provisions need to be added to the Agreement, ‘The Parties hereto agree as follows: 1. Subsections 1.01(15) and (18) of the Agreement are deleted and replaced as follows: (15) “Pledged Revenues” shall mean the specific revenues pledged as security for repayment of the Loan and shall be the Special Assessment Proceeds and the Gross Revenues derived yearly from the operation of the Water and Sewer Systems afier payment of the Operation and Maintenance Expense and the satisfaction of all yearly payment obligations on account of the Senior Revenue Obligations and any senior or parity obligations issued pursuant (o Section 7.02 of this Agreement (18) “Senior Revenue Obligations” shall mean the following debi obligations: (a) City of Cape Coral, Florida, Water and Sewer Refunding Revenue Bonds, Series 2011, issued in the amount of $175,000,000, pursuant to Resolution 98-86, as amended and supplemented by Ordinance No. 45.11 and Resolution 24-11; and (b) City of Cape Coral, Florida, Water and Sewer Refunding Revenue Bonds, Series 2011A, issued in the amount of $106,560,000, pursuant to Resolution 98-86, as amended and supplemented by Ordinance No. 66.11 and Resolution 167-91; and(©) City of Cape Coral, Florida, Water and Sewer Refunding Revent Bonds, Series 2013, issued in the amount of $10,440,000, pursuant to Resolution 98-86, as amended and supplemented by Ore ince No. 50.13 and Resolution 167-91; and (d) City of Cape Coral, Florida, Water and Sewer Refunding Bonds, Series 2015, issued in the amount of $72,415,000, pursuant to Resolution 98-86, as amended and supplemented by Ordinance No. 04-15 and Resolution 167-91; and (€) City of Cape Coral, Flori Water and Sewer Refunding Revenue Bonds, Series 2015A, issued in the amount of $94,740,000, pursuant to Resolution 98-86, as amended and supplemented by Ordinance No. 04-15 and Resolution 167-91; and (f) City of Cape Coral, Florida, Water and Sewer Refunding Revenue Bonds, Series 2017, issued in the amount not to exceed $275,000,000, pursuant to Resolution 98-86, as amended and supplemented by Resolution No. 240-15; and (g) Additional bonds issued on a parity with the bonds identified above pursuant to Section 6.02 of Resolution No, 98-86; and (h)_ Any refunding bonds issued to refund the obligations identified above provided such bonds shall not increase annual debt service durin ig the repayment period of this Loan, 2. Subsection 2.03(1) of the Agreement is deleted and replaced as follows followin (1). The financial assistance authorized pursuant to this Loan Agreement consists of the Federal Resources, Including State Match, Awarded to the Recipient Pursuant to this Agreement Consist of the Following: State Federal Program| Federal | CFDA Funding | Appropriation Number Agency _| Number CFDA Title Amount Category Capitalization ae Grants for Drinking, a $984522- EP, 66.465 : 9 F8984522-160 | EPA | 66.468 sae 106,500,000 | 140129 Revolving Fund 3. Additional financing in the amount of $20,000,000, excluding Capitalized Interest, is hereby awarded to the Project Sponsor. An interest rate of 0.87 percent per annum established for the ad onal financing amount awarded in this amendment; however, if this amendment is not executed by the Praject Sponsor and returned to the Department before January 1, 2020, the interest rate may be adjusted. $1,388,400 of Capitali ‘The estimated pri od Interest, ipal amount of the Loan is hereby revised to $107,888,400, h consists of $106,500,000 authorized for disbursement to the Project Sponsor and This total consists of the following:(a) Original Agreement in the amount of $42,254,700, including $41,500,000 authorized for disbursement to the Project Sponsor and $754,700 of Capitalized Interest, at an interest rate of 1.11 percent per annum; and (6) Amendment 1 in the amount of $20,295,100, including $20,000,000 authorized for disbursement to the Project Sponsor and $295,100 of Capitalized Interest, at an interest rate of 1.39 percent per annum; and (©) Amendment 2 in the amount of $25,247,800, including $25,000,000 authorized for disbursement to the Project Sponsor and $247,800 of Capitalized Interest, at an interest rate of 1.48 percent per annum; and (@)_ Amendment 3 in the amount of $20,090,800, including $20,000,000 authorized for disbursement to the Project Sponsor and $90,800 of Capitalized Interest, at an interest rate of 0.87 percent per annum, 6. _Anadditional Loan Service Fee, rounded to the nearest dollar, in the amount of $400,000, for a total of $2,130,000, is hereby estimated. The fee represents two percent of the Loan amount excluding Capitalized Interest; that is, two percent of $106,500,000, 7. The Semiannual Loan Payment amount is hereby revised and shall be in the amount ‘of $3,103,733. Such payments shall be received by the Department on June 15, 2021 and semiannually thereafter on December 15 and June 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 $110,018,400 which consists of the Loan principal plus the estimated Loan Service Fee. 8. The Project Sponsor and the Department acknowledge that the actual cost of the Project has not been determined. Project cost adjustments may be made as a result of mutually agreed upon Project changes. Capitalized Interest will be recalculated based on actual dates and amounts of Loan disbursements. If the Project Sponsor receives other governmental financial assistance for this Project, the costs funded by such other governmental assistance will not be financed by this Loan. The Department shall establish the final Project costs after its final inspection of the Project records. Changes in Project costs may also occur as a result of an audit. Funds disbursed in accordance with Section 4.08 of this Agreement shall be disbursed in the order in which they have been obligated without respect to budgetary line item estimates. All disbursements shall be made from the original Loan amount until that amount has been disbursed: the interest rate established for the original Loan amount shall apply to such disbursements for the purpose of determining the associated Capitalized Interest and repayment amount. The interest rate established for any additional increment of Loan financing shall be used to determine the Capitalized Interest and repayment amount associated with the funds disbursed from that increment.‘The estimated Project costs are revised as follows: AUTHORIZED LOAN AMOUNT ($) TO CATEGORY PROJECT COSTS (S$) DATE ‘Administrative Allowance 661,186 Engineering Allowance 6,285,552 Construction and Demolition 104,950,146 Line items may vary Contingencies based on Actual Technical Services After Bid Opening Disbursemet SUBTOTAL (Disbursable Amount) 124,440,391 106,500,000 Capitalized Interest 1,388,400 1,388,400 ‘TOTAL (Loan Principal Amount) 125,828,791 107,888,400 9. The items scheduled under Section 10.07 of the Agreement are deleted and replaced as follows: (2) Completion of Project construction is scheduled for December 15, 2020. (3) Establish the Loan Debt Service Account and begin Monthly Loan Deposits no later than December 15, 2020. (4) The initial annual certification required under Subsection 2.01(10) of this Agreement shall be due March 15, 2021. Thereafter the certification shall be submitted ro later than September 30 of each year until the final Semiannual Loan Payment is made. 3 shall be due (5). The first Semiannual Loan Payment in the amount of $3,103 June 15, 2021 10. Section 10.08 of the Agreement is deleted and replaced as follows: dated (1). The Project Sponsor will need advance payment approval or submit invoice on or after the effective date specified in 10.07(1) for payment of allowances. (2) Prior to any funds from this Amendment being released, the Project Sponsor shall submit a Legal Opinion addressing the availability of Pledged Revenues, the right to increase rates, and subordination of the pledge. effect. 11. All other terms and provisions of the Loan Agreement shalll rem:This Amendment 3 to Loan Agreement DW360130 may be executed in two or more counterparts, any of which shall be regarded as an original and all 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 ar 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. for 'Y OF APE CORAL Attest: Pproved as to forwhand legal sufficiency: Sparel A eat aoray Clerk Pepin Attomey 6 Sau: for STATE OF FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION \/a4]20a0 Secretary or Designee Date