Agenda 07/12/2022 Item #11G (Resolution - Borrowing not to exceed $30,000,000 under the Florida Local Government Finance Commission;s Pooled Commercial Paper Loan Program)11.G
07/12/2022
EXECUTIVE SUMMARY
Recommendation to approve a resolution authorizing the County's borrowing an amount not
exceeding $30,000,000 under the Florida Local Government Finance Commission's Pooled
Commercial Paper Loan Program for the purpose of constructing the extension of Vanderbilt
Beach Road; this loan is secured by the County's covenant to budget and appropriate legally
available non ad -valorem revenue; authorize the execution of a loan note or loan notes to evidence
such borrowing; authorize the execution and delivery of other such documents as may be necessary
to effect such borrowing; and authorize all necessary budget amendments. (Companion item to 11F
and 11H)
OBJECTIVE: Approve the Resolution.
CONSIDERATIONS: Award of the construction contract for the extension of Vanderbilt Beach Road
requires financing to close the funding gap between available budget the construction bid amount. Staff is
proposing the attached Resolution to allow the County when to borrow moneys, on an interim basis,
through the Florida Local Government Finance Commission's Commercial Paper Loan Program (the
"Loan Program").
The Florida Local Government Finance Commission (FLGFC), which is marketed and administered by
the Florida Association of Counties, has for thirty (30) years provided local governments with a flexible,
low-cost financing alternative. Since 1991, the program has loaned over $2.6 billion to more than fifty
(50) counties, cities, school boards, port authorities and other special districts across the State of Florida.
Initial loan terms may be up to five years and repayment terms are flexible and tailored to participant
needs. The commercial paper notes which fund the loans are secured by a direct -pay letter of credit issued
by JP Morgan Chase (Bank) providing the letter of credit supporting the program. The Bank maintains a
high credit rating in the short-term marketplace and this excellent credit rating allows the commercial
paper notes to be issued at low interest rates which are passed on to program participants. Loan
repayments are secured by the County's covenant to budget and appropriate from legally available non -ad
valorem revenues.
The commercial paper program is tax-exempt and therefore any future draws must be reasonably
expected to be spent within three years. Interest rates are variable and subject to change on a monthly
basis. The proposed Resolution delegates authority to the County Manager to borrow funds pursuant to
the Loan Program in the amounts and at the times necessary to finance the capital costs of the projects
described above.
FINANCE COMMITTEE RECOMMENDATION: On July 5, 2022, the Finance Committee met and
unanimously approved the use of the Florida Local Government Finance Commission's Pooled
Commercial Paper Loan Program for the purpose of interim financing the construction of Vanderbilt
Beach Road.
FISCAL IMPACT: Approval of the Resolution provides the framework to draw loans, it does not
obligate any loan draw. The current estimate of the funding shortfall related to the extension of
Vanderbilt Beach Road Vanderbilt is $30 million. At the current rate interest rate in the program, 1.97%
including all fees, $30 million in principal would cost approximately $591,000 in annual interest. Any
loan under the Loan Program may be prepaid upon at least 45 days' notice without penalty and any
remaining principal would likely be refinanced as part of a long term, fixed interest rate bond.
GROWTH MANAGEMENT IMPACT: None.
LEGAL CONSIDERATIONS: This item has been reviewed by both the County Attorney and outside
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07/12/2022
bond counsel, is approved as to form and legality, and requires majority vote for approval. -JAK
RECOMMENDATION: To approve the resolution authorizing participation in the Loan Program,
execution of the loan agreement and the borrowing of up to $30 million for the purpose of constructing
the extension of Vanderbilt Beach Road and authorize all necessary budget amendments.
Prepared by: Ed Finn, Director OMB
ATTACHMENT(S)
1. Collier Resolution Auth Draw A-3-1 (PDF)
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11.G
07/12/2022
COLLIER COUNTY
Board of County Commissioners
Item Number: 11.G
Doc ID: 22721
Item Summary: Recommendation to approve a resolution authorizing the County's borrowing an
amount not exceeding $30,000,000 under the Florida Local Government Finance Commission's Pooled
Commercial Paper Loan Program for the purpose of constructing the extension of Vanderbilt Beach
Road; this loan is secured by the County's covenant to budget and appropriate legally available non ad -
valorem revenue; authorize the execution of a loan note or loan notes to evidence such borrowing;
authorize the execution and delivery of other such documents as may be necessary to effect such
borrowing; and authorize all necessary budget amendments. (Companion item to 11F and 11H) (Ed Finn,
Director, Corporate Financial and Management Services)
Meeting Date: 07/12/2022
Prepared by:
Title: Sr. Operations Analyst — County Manager's Office
Name: Geoffrey Willig
07/06/2022 3:22 PM
Submitted by:
Title: Director - Facilities Maangement — Facilities Management
Name: Ed Finn
07/06/2022 3:22 PM
Approved By:
Review:
Facilities Management
Ed Finn
Additional Reviewer
Completed 07/06/2022 4:27 PM
Office of Management and Budget
Geoffrey Willig
Level 3 OMB Gatekeeper Review
Skipped 07/06/2022 1:43 PM
County Attorney's Office
Jeffrey A. Klatzkow Level 3 County Attorney's Office Review
Completed 07/06/2022 4:30 PM
County Manager's Office
Amy Patterson
Level 4 County Manager Review
Completed 07/06/2022 4:38 PM
Board of County Commissioners
Geoffrey Willig
Meeting Pending
07/12/2022 9:00 AM
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11.G.1
RESOLUTION NO.2022-
A RESOLUTION OF THE BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY, FLORIDA,
AUTHORIZING THE BORROWING OF NOT
EXCEEDING $30,000,000 FROM THE POOLED
COMMERCIAL PAPER LOAN PROGRAM OF THE
FLORIDA LOCAL GOVERNMENT FINANCE
COMMISSION PURSUANT TO THE TERMS OF THE
LOAN AGREEMENT AMONG THE COUNTY,
JPMORGAN CHASE BANK, N.A., AND THE
COMMISSION IN ORDER TO FINANCE THE COSTS OF
THE VANDERBILT BEACH ROAD EXTENSION,
INCLUDING THE REIMBURSEMENT OF ANY
EXPENSES INCURRED BY THE COUNTY IN
CONNECTION THEREWITH; AUTHORIZING THE
EXECUTION OF A LOAN NOTE OR LOAN NOTES TO
EVIDENCE SUCH BORROWING AND AGREEING TO
SECURE SUCH BORROWING WITH A COVENANT TO
BUDGET AND APPROPRIATE LEGALLY AVAILABLE
NON -AD VALOREM REVENUES OF THE COUNTY, ALL
AS PROVIDED IN THE LOAN AGREEMENT;
AUTHORIZING THE EXECUTION AND DELIVERY OF
SUCH OTHER DOCUMENTS AS MAY BE NECESSARY
TO EFFECT SUCH BORROWING; AND PROVIDING AN
EFFECTIVE DATE.
BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA:
SECTION 1. DEFINITIONS. Unless the context of use indicates another
meaning or intent, the following words and terms as used in this Resolution shall have the
following meanings. Capitalized terms not otherwise defined herein shall have the
meanings ascribed thereto in the hereinafter defined Loan Agreement.
"Act" means, collectively, Part I, Chapter 125, Florida Statutes, Part I, Chapter 163,
Florida Statutes, and all other applicable provisions of law.
"Additional Payments" means the payments required to be made by the Public
Agency pursuant to Sections 5.02(b), 5.02(c), 5.02(d), 5.05, 6.06(e) and 8.04 of the Loan
Agreement.
"Bank" means JPMorgan Chase Bank, N.A., and any successors thereto.
"Board" means the Board of County Commissioners of the Public Agency.
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"Chairman" means the Chairman or Vice Chairman of the Board, and such other
person as may be duly authorized to act on his or her behalf.
"Clerk" means the Clerk of the Public Agency, and such other person as may be
duly authorized to act on his or her behalf.
"Commission" means the Florida Local Government Finance Commission, and
any assigns or successors thereto.
"County Manager" means the County Manager of the Public Agency and any
designee of the County Manager.
a
"Designated Revenues" means (1) the Public Agency Moneys, and (2) the a.
proceeds of the Loan pending the application thereof. L
"Loan" means the loan to be made by the Commission to the Public Agency from E
proceeds of the Series A Notes in accordance with the terms of this Resolution and of the 0
Loan Agreement. W
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"Loan Agreement" means the Loan Agreement, dated as of April 30, 2018, among r
the Public Agency, the Commission and the Bank, as the same may be amended and N
supplemented. `=
"Loan Rate" has the meaning set forth in the Loan Agreement.
"Loan Repayments" or "Repayments" means the payments of principal and
interest on the Loan Amounts payable by the Public Agency pursuant to the provisions of
the Loan Agreement and all other payments, including Additional Payments, payable by
the Public Agency pursuant to the provisions of the Loan Agreement.
"Non -Ad Valorem Revenues" means all legally available revenues of the Public
Agency derived from any source whatsoever other than ad valorem taxation on real and
personal property, which are legally available to make the Loan Repayments required in
the Loan Agreement.
"Program" means the Pooled Commercial Paper Loan Program established by the
Commission for which the Bank currently provides the Credit Facility.
"Project A-3" means the Vanderbilt Beach Road extension, as more particularly
described in the plans and specifications on file with the Public Agency, and as the same
may be amended or modified from time to time.
"Public Agency" means Collier County, Florida, a political subdivision of the State
of Florida.
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"Public Agency Moneys" shall mean the moneys budgeted and appropriated by
the Public Agency from Non -Ad Valorem Revenues for payment of the Loan Repayments
pursuant to the Public Agency's covenant to budget and appropriate such Non -Ad Valorem
Revenues contained in Section 6.04 of the Loan Agreement.
"Resolution" means this Resolution, as the same may from time to time be
amended, modified or supplemented.
"Series A Notes" means the Commission's Pooled Commercial Paper Notes, Series
A (Governmental Issue), to be issued from time to time by the Commission.
The terms "herein," "hereunder," "hereby," "hereto," "hereof," and any similar
terms, shall refer to this Resolution; the term "heretofore" shall mean before the date of
adoption of this Resolution; and the term "hereafter" shall mean after the date of adoption
of this Resolution.
Words importing the masculine gender include every other gender.
Words importing the singular number include the plural number, and vice versa.
SECTION 2. AUTHORITY FOR RESOLUTION. This Resolution is
adopted pursuant to the provisions of the Act.
SECTION 3. FINDINGS. It is hereby ascertained, determined and declared
that:
(A) The Commission has been established for the principal purpose of issuing
commercial paper notes in order to provide funds to loan to public agencies, such as the
Public Agency, desiring to finance the cost of acquiring, constructing and equipping capital
improvements and to finance other governmental needs.
(B) In furtherance of the foregoing, the Commission shall issue, from time to
time, commercial paper notes to be known as "Florida Local Government Finance
Commission Pooled Commercial Paper Notes, Series A (Governmental Issue)" pursuant
to the Program and shall loan the proceeds of such Series A Notes to public agencies,
including the Public Agency.
(C) Pursuant to the authority of the Act, the Commission has agreed to loan, from
time to time, to the Public Agency such amounts as shall be authorized herein and in the
Loan Agreement in order to enable the Public Agency to finance, refinance and/or
reimburse the costs of the acquisition, construction and equipping of various capital
improvements and other Public Agency Expenses, including the Project A-3, and the
Public Agency desires to borrow such amounts from the Commission subject to the terms
and conditions of the Loan Agreement.
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(D) There is presently a need by the Public Agency to finance the acquisition,
construction and equipping of the Project A-3 and the most cost-effective means by which
to finance the Project A-3 is by use of moneys obtained pursuant to the Program by means
of the Loan.
(E) The Public Agency hereby determines that the provision of funds by the
Commission to the Public Agency in the form of the Loan pursuant to the terms of the Loan
Agreement and the financing of the Project A-3 will assist in the development and
maintenance of the public welfare of the residents of the Public Agency, and shall serve a
public purpose by improving the health and living conditions, and providing governmental
services, facilities and programs and will promote the most efficient and economical
development of such services, facilities and programs.
(F) The Loan shall be repaid solely from the Designated Revenues as provided
in the Loan Agreement. The ad valorem taxing power of the Public Agency will never be
necessary or authorized to make the Loan Repayments.
(G) Due to the potential volatility of the market for tax-exempt obligations such
as the Note or Notes to be issued evidencing the Loan, the complexity of the transactions
relating to such Note or Notes and the uniqueness of the Program, it is in the best interest
of the Public Agency to deliver the Note or Notes to the Commission pursuant to the
Program by a negotiated sale pursuant to Section 218.385(1), Florida Statutes, allowing
the Public Agency to utilize the Program in which it participates from time to time and to
enter the market at the most advantageous time, rather than at a specified advertised date,
thereby permitting the Public Agency to obtain the best possible price, issuance costs and
interest rate for such Note or Notes.
SECTION 4. TERMS OF LOAN. The Public Agency hereby approves of
the Loan in an aggregate principal amount of not exceeding $30,000,000 for the purposes
of providing the Public Agency with sufficient funds to finance the Project A-3. The
Chairman and the Clerk are hereby authorized to execute, seal and deliver on behalf of the
Public Agency a Loan Note or Notes and other documents, instruments, agreements and
certificates necessary or desirable to effectuate the Loan as provided in the Loan
Agreement. The Loan Notes shall reflect the terms of the Loan or draws made on account
of the Loan and shall be substantially in the form attached to the Loan Agreement as Exhibit
D. The County Manager shall determine the amount of funding of the Loan in accordance
with the terms of the Loan Agreement as shall be determined necessary to finance the
Project A-3. The repayment of the Loan or the draws made on account of the Loan shall
be made at such time or times as shall be determined by the County Manager and shall be
permitted by the Loan Agreement and set forth in the Loan Notes; provided, however, the
final maturity may not be later than five (5) years from the date of issuance. The Loan is
subject to mandatory prepayment in accordance with Section 5.06 of the Loan Agreement.
Draws made in regard to the Loan shall bear interest at the Loan Rate in accordance with
the terms of the Loan Agreement. The Public Agency further agrees to make all Loan
Repayments required of it pursuant to the terms of the Loan Agreement. The letter of credit
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fee with respect to the Loan shall equal such amount as may be agreed upon between the
County Manager and the Bank so long as such fee does not exceed 110 basis points.
SECTION 5. AUTHORIZATION OF PROJECT A-3. The Public
Agency does hereby authorize Project A-3 as described herein and the reimbursement of
any costs incurred by the Public Agency with respect to Project A-3 within the prior 60
days that are approved by bond counsel to the Program.
SECTION 6. SECURITY FOR THE LOAN. The Public Agency's
obligation to repay the Loan will be secured by a pledge of and lien upon the Designated
Revenues in accordance with the terms of the Loan Agreement. The obligation of the
Public Agency to repay the Loan shall not be deemed a pledge of the faith and credit or
taxing power of the Public Agency and such obligation shall not create a lien on any
property whatsoever of or in the Public Agency other than the Designated Revenues.
SECTION 7. RESOLUTION TO CONSTITUTE CONTRACT. In
consideration of the making of the Loan by the Commission, this Resolution shall be
deemed to be and shall constitute a contract between (i) the Public Agency and (ii) the
Commission and the Bank.
SECTION 8. GENERAL AUTHORITY. The members of the Board and
the officers, attorneys and other agents or employees of the Public Agency are hereby
authorized to do all acts and things required of them by this Resolution and the Loan
Agreement, or desirable or consistent with the requirements of this Resolution and the Loan
Agreement, for the full punctual and complete performance of all the terms, covenants and
agreements contained in this Resolution and the Loan Agreement, and each member,
employee, attorney and officer of the Public Agency or its Board is hereby authorized and
directed to execute and deliver any and all papers and instruments and to do and cause to
be done any and all acts and things necessary or proper for carrying out the transactions
contemplated by this Resolution and the Loan Agreement.
SECTION 9. SEVERABILITY. If any one or more of the covenants,
agreements or provisions herein contained shall be held contrary to any express provision
of law or contrary to the policy of express law, though not expressly prohibited, or against
public policy, or shall for any reason whatsoever be held invalid, then such covenants,
agreements or provisions shall be null and void and shall be deemed separable from the
remaining covenants, agreements or provisions and shall in no way affect the validity of
any of the other provisions hereof.
SECTION 10. REPEAL OF INCONSISTENT RESOLUTIONS. All
resolutions or parts thereof in conflict herewith which seek short-term financing of the
Project A-3 of the Program are hereby superseded and repealed to the extent of such
conflict.
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SECTION 11. EFFECTIVE DATE. This Resolution shall take effect
immediately upon its adoption.
DULY ADOPTED, in Regular Session this 12th day of July 2022.
(SEAL)
ATTEST:
Crystal K. Kinzel, Clerk
By: Deputy Clerk
Approved as to Form and Legal
Sufficiency:
County Attorney
COLLIER COUNTY, FLORIDA
Chairman, Board of County Commissioners
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