Okaloosa County BOCC — July 21, 2015 — Letter to County Administrator 12 June 2015

(D Uumvm s BLUEWATER BAY MUNICIPAL SERVICE BENEFITS UNIT 4400 EAST HIGHWAY 20, SUITE 312 NICEVILLE, FLORIDA 32578 PHONE 850-897-9400 FAX 850-897-9211 EMAIL admin@bwms.gccoxmail.com 12 June 2015 RE: Bluewater Bay MSBU Funding Request for: HMGP Application: 4177 -03 Okaloosa County Curacao Way/Southwind Drive Flood Mitigation Program in Okaloosa County Dear Mr. Hofstad, As you know, the Bluewater Bay Municipal Service Benefits Unit (MSBU) has made application for the above reference flood mitigation grant with the State of Florida Emergency Management Agency. The requested amount of the grant is for $400,000.. Commissioner Kelly Windes has indicated that you have identified a source of funding within the Board of County Commission (BCC) that can be used as part of the MSBU cash contribution for the FL. Emergency Management Grant. | understand from phone conversations with Mr. Windes, that the BCC cash contribution would be considered a transfer from the BCC to the MSBU that would need to be paid back to the County by the MSBU, in some future time period. Mr. Windes feels that BCC can provide a contribution of up to $20,000 to be used as part of the cash contribution for the Grant. He has asked that the MSBU send you, as County Administrator, a letter requesting this funding. To summarize the financial structure of the Grant, should the MSBU receive the entire $400,000 funding request from the FL. Dep’t of Emergency Management, the grant award will require a “local contribution” (by the MSBU) of 25%, or $100,000 of the $400,000 amount. A 12.5%, or up to $50,000, of the grant may be made in the form of “in kind” services, which the County Public Works Department has already agreed to provide. The balance of the 25% local contribution, also up to $50,000 will need to be in the form of cash. As of the date of this letter, the MSBU Lake Committee has received $15,000 in pledges (the Lake Owners around the Aruba/Dominica/Curacao/Woodlands lake have pledged $5,000, the Bluewater Bay Resort has pledged $5,000 and the MSBU board has voted to pledge up to $5,000) that can be applied to the maximum required $50,000 cash contribution needed to fund the work of the Grant. With the BCC transfer, the MSBU will have up to $35,000 ($15,000 + $20,000) of the $50,000 needed to enjoy the benefits of a fully funded Grant. 12 June 2015 RE: Bluewater Bay MSBU Funding Request for: HMGP Application: 4177 -03 Okaloosa County Curacao Way/Southwind Drive Flood Mitigation Program in Okaloosa County Page 2. Because the MSBU doesn’t have all the details of the BCC funding offer available to us at this time, for example, the repayment schedule from the MSBU to the BCC of this transfer (1 yr., 2 yrs., etc.), and that we are being asked to act in a timely fashion, | suggest the MSBU board approve a request for funding the $20,000 transfer subject to: 1. 4. The MSBU board review the required cash contribution required based on the actual amount of the Grant award from the State of FL. The MSBU board review of the total cash pledge contributions from all sources received at the time of the award date from the State of Florida. Verification from the BCC of the transfer terms of re-payment, and if the repayment terms are consistent with our FY 2016 (and beyond) budget plan. A review of the amount of pledges made by the homeowners of the neighborhoods affected by the flooding. At their regularly scheduled meeting, on Tuesday, June 9", 2015 the MSBU board approved that | make the funding request, subject to the provisions above to the Board of County Commissioners (BCC.) Sincerely yours, Felix A. Beukenkamp, as Finance Chair of the MSBU 101 Baywind Drive Niceville, FL 32578 USA 850 974-3650 m.