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Agenda 04/11/2023 Item #16F 1 (Resolution withdrawing Collier County from the Florida Local Government Finance Commision)04/11/2023 EXECUTIVE SUMMARY Recommendation to adopt a Resolution withdrawing Collier County from the Florida Local Government Finance Commission. OBJECTIVE: To reduce potential legal exposure from other local governments' bad loans. CONSIDERATIONS: Collier County is currently a member of the Florida Local Government Finance Commission (the "Commission") which was created by an Interlocal Agreement, dated as of February 19, 1991, among Collier County, Brevard County, Florida, and Sarasota County, Florida, as amended by the First Supplemental Interlocal. Agreement, dated as of December 1, 1994, among Brevard County, Florida, Collier County, Florida, Sarasota County, Florida, Osceola County, Florida and Lee County, Florida, and as further supplemented by that certain Joinder Agreement dated as of October 1, 2006 between the Commission and Charlotte County, Florida (collectively, the "Interlocal Agreement"). The Commission currently issues commercial paper from time to time to provide short-term loans to various Florida local governments pursuant to its pooled commercial paper loan program (the "Program"). Bond Counsel to the Commission has approached Collier County to amend the Interlocal Agreement to allow it to issue long term commercial paper to smaller Florida local governments and conduit tax-exempt long-term bonding for eligible entities. Expansion of the program to smaller local governments does not benefit the County in any way and increases the County's exposure to claims should there be a default on these loans, which is far more likely with smaller local govermnents, especially in a rising interest envirom-nent. Bond Counsel has advised us that our choice is to either enter into the amendment or withdraw from the Commission. Withdrawal from the Commission does not harm the County in any way. Accordingly, since both the County Attorney and the Finance Department are not comfortable with the proposed expansion of the loan program, it is recommended that Collier County withdraw from the Commission. FISCAL IMPACT: None. GROWTH MANAGEMENT IMPACT: None. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to form and legality and requires majority vote for approval. -JAK RECOMMENDATION: That the Board adopt a Resolution withdrawing Collier County from the Florida Local Goverm-nent Finance Commission Prepared by: Ed Finn, Deputy County Manager ATTACHMENT(S) 1. Resolution - withdrawal from FLGFC - JAK signed (PDF) I Packet Pg. 1097 04/11/2023 COLLIER COUNTY Board of County Commissioners Item Number: 16.17.1 Doe ID: 25108 Item Summary: Recommendation to adopt a Resolution withdrawing Collier County from the Florida Local Government Finance Commission. Meeting Date: 04/11/2023 Prepared by: Title: Management Analyst 11 — County Manager's Office Name: Geoffrey Willig 03/31/2023 10:29 AM Submitted by: Title: Director - Facilities Maangement — County Manager's Office Name: Ed Finn 03/31/2023 10:29 AM Approved By: Review: Clerk of the Circuit Court Geoffrey Willig Office of Management and Budget Geoffrey Willig Office of Management and Budget Geoffrey Willig Corporate Compliance and Continuous Improvement County Attorney's Office County Manager's Office Board of County Commissioners Additional Reviewer Additional Reviewer Level 3 OMB Gatekeeper Review Geoffrey Willig Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Ed Finn Level 4 County Manager Review Geoffrey Willig Meeting Pending Skipped 03/31/2023 10:30 AM Skipped 03/31/2023 10:30 AM Skipped 03/31/2023 10:30 AM Additional Reviewer Skipped 03/31/2023 10:30 AM Completed 04/03/2023 9:25 AM Completed 04/04/2023 1:53 PM 04/11/2023 9:00 AM I Packet Pg. 1098 1 RESOLUTION NO. 2023 - A RESOLUTION AUTHORIZING THE WITHDRAWAL OF COLLIER COUNTY AS A COMMISSION MEMBER OF THE FLORIDA LOCAL GOVERNMENT FINANCE COMMISSION. WHEREAS, Collier County is currently a member of the Florida Local Government Finance Commission (the "FLGFC") which was created by that certain Interlocal Agreement, dated as of February 19, 1991, among Collier County, Brevard County, Florida, and Sarasota County, Florida, as amended by the First Supplemental Interlocal Agreement, dated as of December 1, 1994, among Brevard County, Florida, Collier County, Florida, Sarasota County, Florida, Osceola County, Florida and Lee County, Florida, and as further supplemented by that certain Joinder Agreement dated as of October 1, 2006 between FLGFC and Charlotte County, Florida (collectively, the "Interlocal Agreement"); and WHEREAS, the FLGFC currently issues commercial paper from time to time to provide short-term loans to various Florida local governments pursuant to FLGFC's pooled commercial paper loan program (the "Program"); and WHEREAS, certain members of the FLGFC have approved amendments to the Interlocal Agreement to provide FLGFC with additional powers, including financing longer -term loans, issuing conduit debt obligations and assisting with regional resiliency projects; and WHEREAS, Collier County has determined that it is in its best interests to withdraw as a member of the FLGFC. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA: SECTION 1. WITHDRAWAL FROM FLGFC. Collier County hereby withdraws as a member from the FLGFC. In connection therewith, the Chairman is authorized and directed to execute, and the Clerk to attest, any instruments necessary or desirable to accomplish such withdrawal. SECTION 2. SEVERABILITY. If any provision of this Resolution shall be held or deemed to be or shall, in fact, be illegal, inoperative or unenforceable in any context, the same shall not affect any other provision herein or render any other provision (or such provision in any other context) invalid, inoperative or unenforceable to any extent whatever. SECTION 3. EFFECTIVE DATE. This resolution shall become effective immediately upon its adoption. I Packet Pg. 1099 THIS RESOLUTION ADOPTED upon majoritv vote this day o C 2023. ATTEST: BOARD OF COUNTY COMMISSIONERS Crystal K. Kinzel, Clerk of Courts COLLIER COUNTY, FLORIDA 0 Appro vI d 11 a t Jeffrey A, i By: , Deputy Clerk Rick LoCastro, Chairman legality: , County Attorney a U- E 0 00 I Packet Pg. 1100