5.3 Amendment No. 2 KDHE Loan South Well FieldCITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
09/26/2022 4:00 P.M.
AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL:
NO: 5
BY:
ITEM UTILITIES DEPARTMENT FINAL APPROVAL:
NO: 3 %%� T
Page 1 BY: Martha Tasker BY:
ITEM: I/%_�
Authorize Amendment No. 2 to the Loan Agreement (Loan) between the Kansas Department of
Health and Environment, acting on behalf of the State of Kansas, and the City of Salina, Kansas for
the purpose of financing the South Well Field & Water Treatment Plant Project.
BACKGROUND:
The Project includes the following major improvements:
Rehabilitation of four existing wells
• 3.5 Million Gallons Per Day (MGD) Lime Softening Water Treatment Plant
7,000 Linear Feet of 10 - 20 -inch raw water main
3,000 Linear Feet of 8 and 12 -inch public sanitary sewer
On December 10, 2018, the City Commission authorized the loan for an amount not to exceed
$32,000,000. The breakdown for the loan is as follows:
The loan amount remained at $32,000,000 and the cost overrun of $508,549 was covered from
unspent 2022 Sub-CIP funds.
FISCAL NOTE:
The semi-annual (February and August) payments will be reduced from $1,005,393.16 to
$993,523.78.
COMMISSION ACTION:
Staff has identified the following options for the City Commission's consideration:
1.) Authorize the Mayor to execute Addendum No. 2 to the Loan Agreement between the
Kansas Department of Health and Environment, acting on behalf of the State of Kansas, and
the City of Salina, Kansas for the purpose of financing the South Well Field & Water
Treatment Plant Project.
2.) Authorize execution of the Addendum No. 2 to the Loan Agreement with amendments as the
City Commission deems appropriate.
3.) Postpone execution of the Addendum No. 2 to the Loan Agreement to a specified date and
time and provide staff direction regarding additional information or amendments the City
Commission would like to request for their further consideration.
Original Loan
Agreement
First
Amendment
Second
Amendment
Phase I Engineering
$ 1,664,524
$ 1,664,524
$ 1,664,524
Owner's Rep
$ 1,444,330
$ 1,444,330
$ 1,444,330
Total Construction
$29,399,695
$29,399,695
$29,399,695
Loan Origination Fee
$ 80,000
$ 0
$ 0
Total
$32,588,549
1 $32,508,549
$32,508,549
The loan amount remained at $32,000,000 and the cost overrun of $508,549 was covered from
unspent 2022 Sub-CIP funds.
FISCAL NOTE:
The semi-annual (February and August) payments will be reduced from $1,005,393.16 to
$993,523.78.
COMMISSION ACTION:
Staff has identified the following options for the City Commission's consideration:
1.) Authorize the Mayor to execute Addendum No. 2 to the Loan Agreement between the
Kansas Department of Health and Environment, acting on behalf of the State of Kansas, and
the City of Salina, Kansas for the purpose of financing the South Well Field & Water
Treatment Plant Project.
2.) Authorize execution of the Addendum No. 2 to the Loan Agreement with amendments as the
City Commission deems appropriate.
3.) Postpone execution of the Addendum No. 2 to the Loan Agreement to a specified date and
time and provide staff direction regarding additional information or amendments the City
Commission would like to request for their further consideration.
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
09/26/2022 4:00 P.M.
AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL:
NO:
BY:
ITEM UTILITIES DEPARTMENT FINAL APPROVAL:
NO:
Page 2 BY: Martha Tasker BY:
4.) Vote to deny execution of the Addendum No. 2 to the Loan Agreement which would result in
no decrease in the semi-annual payments.
Staff recommends Option 1.
SECOND AMENDMENT TO THE
LOAN AGREEMENT
BETWEEN
THE KANSAS DEPARTMENT OF HEALTH AND ENVIRONMENT
ACTING ON BEHALF OF
THE STATE OF KANSAS
/.Wool
SALINA, KANSAS
KPWSLF PROJECT NO. 2917
ORIGINAL LOAN AGREEMENT
EFFECTIVE AS OF AUGUST 15 2018
AMENDMENT NO.2
EFFECTIVE AS OF JUNE 27, 2022
Second Amendment to
the Loan Agreement between the
Kansas Department of I lealth and Environment
Acting on behalf of the State of Kansas
and Salina, Kansas
Effective as of June 27, 2022
WHEREAS, the City of Salina, Kansas (the Municipality) has entered into a Loan
Agreement with the Kansas Department of Health and Environment, acting on behalf of the State
of Kansas, effective as of August 15, 2018, (the "Loan Agreement"); and
WHEREAS, said Loan Agreement was entered into for the benefit of the City of Salina,
KPWSLF Project No. 2917; and
WHEREAS, the Municipality hereby determines that it is necessary to amend certain
exhibits to the Loan Agreement, and
WHEREAS, this Second Amendment to the Loan Agreement is entered into and effective
as of June 27, 2022;
SECTION 1. Exhibit B2 of the LOAN AGREEMENT BETWEEN THE KANSAS
DEPARTMENT OF HEALTH AND ENVIRONMENT AND SALINA, KANSAS are hereby
amended to read as set forth on the pages attached hereto.
SECTION 2. Except as herein specifically set out, the Loan Agreement is confirmed and ratified.
Second Amendment
Effective as of June 27, 2022 2
IN WITNESS WHEREOF, KDHE and the City of Salina have caused this Second
Amendment to the Loan Agreement for the Municipality to be executed, sealed and delivered,
effective as of June 27, 2022.
I
and Environment
Date: 7—[z^? 2-')7
The KANSAS DEPARTMENT OF IIEALTH AND
ENVIRONMENT, acting on behalf of THE STATE OF KANSAS
By: 97�I
Janet tanek
Secretary
Kansas Department of Health & Environment
Printed Name
Mayor
City of Salina
(Seal)
ATTEST:
By:
Title:
Date:
Second Amendment
Effective as of June 27, 2022 3
KANSAS PLMUC WATERSUPPLYLOAN FUND
Actual Draws -Actual Interest Rate
Arnortiaation of Loan Costs as of 6/27(2022-FINAL
Prepared for.
City of Salina, Project No. 2917
Goss Interest Rate Allocation thre 2/1/2024
Service Fee Rate: 1.98010
Net Loan Interest Rate: 0.35%
atter 7/1/2024
0.359A
1.98-A
Project Principal-
Interest During Const.:
Service Fee During Const.:
Cross Loan Costs:
Cross Interest Rate:
First Payment Date:
NumberofPeyments:
32,00Qo00.00
0.00
0.00
32,000,000.00
2.33%
8/1/2020
40
Payment
Payment
Beginning
Interest
Principal
Service
Total
Ending
Number
Date
Balance
Payment
Payment
Fee
Payment
Balance
1
8r1/2020
32,000.000.00
74,403.74
842,933.96
138,055.46
1,005,393.16
31,157,066.04
2
2/1/2021
31,257,066.04
39,310.24
743,699.72
222,383.70
1,005,393.16
30,413,366.82
3
8(3/2021
30,413,366.82
49,370.81
676,724.67
279,297.68
1,005,393.16
29,736,642.15
4
2/1/2022
29,736,642.15
52,039.12
658,96128
294,39276
1,005,393.16
29,077,680.87
5
8(1/2022
29,077,680.87
50.885.94
654,76880
287,869.04
993,523.78
28,422,912.07
6
711/2073
28,422,912.07
49,740.10
662,396.85
281,386.83
993,523.78
27,760,515.22
7
8(1(2023
27,760,515.22
48,580.90
670,113.78
274,829.10
993,523.78
27,090,401.44
8
2/1/2024
27,090,401.44
47,408.20
67/,920.61
268,194.97
993,523.78
26,412,480.83
9
8/1/2074
26,412,480.83
261,483.56
685,81838
46,221.84
993,523.78
25,726,66245
10
211/2025
25,726,66245
254,693.96
693,808.16
45,021.66
993,523.78
25,032,854.29
11
811/2025
25,032,854.29
247,82526
701,891.02
43,807.50
993,523.78
24,330,963.27
12
2/1/2026
24330,96327
240,876.54
710,068.05
42,579.19
993,523.78
23,620,895.22
13
811/2026
23,620,895.22
233,846.86
718,340.35
4036.57
993,523.78
22,902,554.87
14
7/1/2027
22,902,554.87
226,73529
726,709.02
40,079.47
993,523.78
22,175,845.85
15
811/2027
22,175,845.85
219,540.87
735,175.18
38,1107.73
993,529.78
21,440,670.67
16
2/1/2028
21,440,670.67
212,26264
743,739.97
37,521.17
993,523.79
20,696,930.70
17
8/1/2028
20,696,930.70
204,899.61
752,404.54
36,219.63
993,523.78
19,944,526.16
18
2/1/2029
19,944,526.16
197,450.81
761,170.05
34,902.92
993,523.78
19,183,356.11
19
811/2029
19,193,356.11
189,915.23
770,037.69
33,570.87
993,523.78
18,413,318.43
20
2/1/2030
18,413,31843
192,291.85
779,00862
32,22431
993,573.78
17,634309.81
21
8/1/2030
17,634309.81
174,579.67
788,094.07
30.860.04
993,523.78
16,846,225.74
22
7/1/2031
16,846,225.74
166,777.63
797,265.25
29,480.90
993,573.78
16,049,960.49
23
8(1/2031
14048,%0.49
158,894.71
806,553.39
2$085.68
993,523.78
15,242,407.10
24
7/1/2032
15,242,407.10
IAM,83
815,949.74
26,67421
993,523.78
14,426,457.36
25
911/2032
14,426,457.36
142,821.93
825,455.55
25,746.30
993,523.78
13,601,001.81
26
2/1/2033
13,601,001.81
134,649.92
835,07212
23,801.75
993,523.78
12,765,929.70
27
811/2033
12,765,929.70
126,38270
844,800.70
22,340.38
993,523.78
11,921,129.00
28
7/1/2034
11,921,129.00
118019.18
854,642.62
20,961.98
993,523.78
11,066,486.38
29
8/112034
11,066,486.38
109,558.22
864,59921
19,366.35
993,523.78
10,201,887.17
30
71112035
10,201,897.17
100,99868
874,671.80
17,85330
993,523.78
9,327,215.37
31
8/1/2035
9,327,21537
92,339.43
884,861.72
16,322.63
993,523.78
8442,353.65
32
7/1/2036
8442353.65
83,57930
895,17036
14,774.12
993,523.78
7,547,18329
33
8/1/2036
7,547,18329
74,717.11
905,599.10
13,207.57
993,523.78
6,641,584.19
34
2/1/2037
6,641,584.19
65,751.68
916,149.33
11,622.77
993,523.78
5,725,434.86
35
8/1/2037
5,725,434.86
56,681.81
926,82246
10,019.51
993,523.78
4,798,612.40
36
2/1/2038
4,798612.40
47,506.26
937,619.95
8397.57
993,523.78
3,860.992.45
37
811/2038
3,860,992.45
38,223.83
94854321
6,756.74
993,523.78
2,912,449.24
38
2/1/2039
2,912,449.24
2883325
959,593.74
5,096.79
993523.78
1,952,955.50
39
8/1/2039
1,952,855.50
19,33327
970.773.01
3,41750
993,523.78
982,082.49
40
7/1/2040
982,082.49
9,72262
982,082.49
1,718.67
993523.78
000
Totals
4,933,82256
32,000,000.00
2,854,606.16
39,788,42872
Prepared by
the Department of
Admintamicc
Second Amendment
Effective as of June 27, 2022
4