Item B2M
C ounty of f Monroe
ELj » °o
�
BOARD OF COUNTY COMMISSIONERS
/� r i � ��
Mayor George Neugent, District 2
The Florida. Ke Se
y
I
Mayor Pro Tern David Rice, District 4
Danny L. Kolhage, District I
Heather Carruthers, District 3
Sylvia J. Murphy, District 5
County Commission Meeting
November 29, 2017
Agenda Item Number: B2
Agenda Item Summary #3631
BULK ITEM: Yes DEPARTMENT: County Administrator
TIME APPROXIMATE: STAFF CONTACT: Lindsey Ballard (305) 292 -4443
No
AGENDA ITEM WORDING: Approval to issue Request for Proposal for Line of Credit, to cover
short-term needs for money to cover hurricane costs prior to FEMA reimbursement, in an amount to
be determined but likely approximately $40 million; authorization for County Administrator to sign
all necessary documents for issuance of the RFP.
ITEM BACKGROUND: The County declared a local declaration of emergency on September 5,
2017, following a State declaration of emergency on September 4, 2017. Hurricane force winds
from Hurricane Irma began on September 9, 2017, with the hurricane making landfall on September
10, 2017, causing severe damage throughout the County.
As outlined in the attached memo, the Clerk estimates that the cost to the County of Hurricane Irma
will be approximately $40 million. Much of this will be reimbursed by FEMA, but payments in the
meantime will deplete liquidity in fund balances considerably, and the timing of the reimbursement
is uncertain particularly due to the fact that FEMA will be working to address reimbursements from
three back to back storms as well as wildfires in California.
The Clerk has therefore recommended that the County open a line of credit to ensure liquidity to pay
the upcoming invoices. Working together with the County's financial consultants (PFM Financial
and bond counsel Steve Miller, Esq., from Nabors, Giblin), the County can issue an RFP by mid -
December. The amount to be borrowed and the cost of the money can be determined during the
bidding process.
Any contracts resulting from the RFP will be brought back to the BOCC for approval.
PREVIOUS RELEVANT BOCC ACTION: None on this specific item. In 2014, the BOCC
approved a $16 million Line of Credit from PNC Bank, N.A. The LOC was paid off in 2016.
CONTRACT /AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATION: Approval.
DOCUMENTATION:
Hurricane LOC memo
FINANCIAL IMPACT:
Effective Date:
Expiration Date:
Total Dollar Value of Contract:
Total Cost to County:
Current Year Portion:
Budgeted:
Source of Funds:
CPI:
Indirect Costs:
Estimated Ongoing Costs Not Included in above dollar amounts:
Revenue Producing:
Grant:
County Match:
Insurance Required:
Additional Details:
If yes, amount:
Cost of RFP will be cost of advertising.
REVIEWED BY:
Lindsey Ballard
Completed
11/21/2017 8:24 AM
Cynthia Hall
Completed
11/21/2017 12:25 PM
Budget and Finance
Completed
11/21/2017 12:30 PM
Maria Slavik
Completed
11/21/2017 12:56 PM
Kathy Peters
Completed
11/21/2017 12:57 PM
Board of County Commissioners
Pending
11/29/2017 10:00 AM
z counr
Kevin Madok CPA
�w
Clerk of the Circuit Court & Comptroller — Monroe County, Florida
TO: Roman Gastesi, County Administrator
FROM: Kevin Madok, Clerk of Courts
DATE: November 20, 2017
RE: Hurricane Line of Credit
I commend you for managing the County's finances in a conservative and prudent manner. The
reserves are very healthy. Unfortunately, a direct hit by a category 4 hurricane will overwhelm
any amount of reserves.
My staff estimates the cost to the County of Hurricane Irma will be approximately $40 million.
Much of this will be reimbursed by FEMA but the timing of those cash flows is highly uncertain.
FEMA's capabilities are greatly taxed by three historic hurricanes in a short period of time as
well as devastating wildfires out west. Monroe County must plan for the possibility of delays in
FEMA reimbursements.
I recommend the County open a line of credit (LOC) to ensure liquidity to pay the upcoming
invoices. The amount of the credit facility can be determined during the bidding process. It will
take approximately 4 — 6 weeks to establish the LOC. I have had preliminary discussions with
our financial advisors and bond counsel to determine the appropriate borrowing vehicle.
For the following reasons, the process should begin immediately.
1) Debris removal will be paid from the Municipal Services District Waste Fund. Costs are
expected to run $ 5 million per month for up to four months. Unrestricted net assets in
the fund stand at $ 11 million. I would caution drawing reserves down by more than
50 %. That leaves $ 5.5 million available for immediate use. The debris invoices that are
expected to be paid within the next 30 days will exhaust the liquidity in that fund. The
upcoming invoices expected to be received in late December / early January will be a
challenge to pay without this LOC.
KEY WEST MARATHON
500 Whitehead Street 3117 Overseas Highway
Key West, Florida 33040 Marathon, Florida 33050
305 - 294 -4641 305 - 289 -6027
PLANTATION KEY
88820 Overseas Highway
Plantation Key, Florida 33070
305 - 852 -7145
PK/ROTH BUILDING
50 High Point Road
Plantation Key, Florida 33070
305-852-
1 Packet Pg. 34
Hurricane Line of Credit - continued
2) The cost of overtime and the cost of the base camp alone will exceed the County's $10
million hurricane reserve. Overtime has already been paid and the base camp bill could
be due soon. Additionally, there are other hurricane costs that will be due in the near
term. The General Fund has a healthy fund balance but drawing it down during this
uncertain environment may pose too much of a risk.
3) The airports' preliminary estimate of damages is $ 7 million. Neither the Key West
Airport Fund nor the Marathon Airport Fund has excess unrestricted net assets. Any
repair costs that should be done immediately will require outside funds.
This borrowing is intended to be short term in nature and paid off with FEMA reimbursements.
I anticipate the LOC will be closed within the current fiscal year. Therefore, it should not be
necessary to include the debt service in future budgets and this borrowing should not impact
the Five Year Capital Improvement Plan.
CC: BOCC Dist 1, BOCC Dist 2, BOCC Dist 3, BOCC Dist 4, BOCC Dist 5
Bob Shillinger, County Attorney
Kevin Wilson, Assistant County Administrator
Christine Hurley, Assistant County Administrator
Tina Boan, Budget Director
Judy Clarke, Director of Engineering Services