A) Authorize Lee County Utilities to submit a State Revolving Fund (SRF) Loan Application under the Supplemental Appropriations for Hurricane Fiona and Ian (SAHFI) program to the Department of Environmental Protection (DEP) for the Fort Myers Beach (FMB) Water Reclamation Facility (WRF) Restoration and Capacity Enhancement Project CW-3602C for a total of $208,590,000.00.
B) Approve Lee County Resolution authorizing the application, and other actions associated with the SRF SAHFI process.
C) Authorize the Chair to sign as the authorized representative for the SRF Loan Application and related documents, on behalf of the Board.

Adopts a resolution authorizing Lee County Utilities to submit an application for the Clean Water State Revolving Fund Loan under the Supplemental Appropriations for Hurricane Fiona and Ian (SAHFI) program.  Funding from this loan will be used for the Fort Myers Beach Water Reclamation Facility Restoration and Capacity Enhancement project. 

SAFHI funding is a 100% principal loan forgiveness program, and the loan application is the second step to enable the County to obtain the loan. The estimated total cost and application amount of the project is $208,590,000. The SAHFI program awarded the County for Fiscal Year 2024/2025 a 100% principal forgiveness loan for $19,823,000. Project construction is anticipated to begin in Fiscal Year 2024/2025.

The Fort Myers Beach Water Reclamation Facility (FMB WRF) began operation in 1978 with a permitted capacity of 2.7 million gallons per day (MGD). In 1989 the plant was expanded to its current permitted capacity of 6 MGD.

On September 28, 2022, Hurricane Ian made landfall on Cayo Costa, causing widespread devastation. The FMB WRF experienced an estimated five (5) to six (6) feet of storm surge and extensive electrical damage, creating the need to expedite this project.

On June 6, 2023, the Board approved LCU to submit a Request for Inclusion (RFI) to the Department of Environmental Protection (DEP) to be considered for a low-interest emergency State Revolving Fund (SRF) due to Hurricane Ian.

On December 5, 2023, the Board approved LCU to apply for a low-interest SRF loan through the FDEP for the project for $208,590,00.00.

On December 5, 2023, the Board approved an RFI for a principal forgiveness SRF Supplemental Appropriations for Hurricane Fiona and Ian (SAFHI) Loan to include the FMB WRF Project for the total project cost of $208,590,000. An RFI is the initial step for the County to apply for SRF SAHFI funds.

On February 14, 2024, the DEP held a public meeting to present staff recommendations for the Fiscal Year 2024/2025 Project Priority List under the SAHFI program. The Project Priority List included the FMB WRF Project Number CW-3602C for a maximum annual approved amount of $19,823,000 for Fiscal Year 2024/2025. The SRF SAHFI Loan process, similar to regular SRF loans, requires applicants to submit subsequent requests for funding each fiscal year.

After Hurricane Ian, the Governor appropriated funds for emergency SRF Loans with 100% principal forgiveness to support utility infrastructure recovery. The Board approved a Request for Inclusion for the FMB WRF Project in the SRF SAHFI program for Fiscal Year 2024/2025 on December 5, 2023, which was approved to be included into DEP’s Project Priority List on February 14, 2024.

Lee County is now eligible to apply for construction funds from the SRF SAHFI program and estimates the current project cost and requested loan amount to be $208,590,000. The Project Priority List included the FMB WRF Project Number CW-3602C for a total approved amount of $19,823,000 for Fiscal Year 2024/2025. With a DEP SRF SAHFI loan annual maximum award of $19,823,000, LCU may be eligible for additional future principal loan forgiveness funds. The SRF SAHFI Loan process, similar to regular SRF loans, requires applicants to submit subsequent requests for funding each fiscal year.

The purpose of this project is to rehabilitate the FMB WRF due to loss of treatment capacity, aging infrastructure, and damages sustained during Hurricane Ian (Sept. 2022), and will include hazard mitigation and flood-proofing elements to provide a climate-stable facility for uninterrupted treatment of domestic wastewater to a coastal community.

This item seeks approval to submit the Loan Application and relevant documents, including a resolution that authorizes the completion of the Loan Application and execution of the Loan Agreement, establishes pledged revenues, designates authorized representatives, and provides assurances and certifications.