Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Authorizing A Line Of Credit Agreement Between The City Of Hollywood, Florida And City National Bank, For A Term Of One (1) Year To Provide A Line Of Credit Facility To Assist The City In Meeting The Costs Of Recovery In The Event Of A Disaster.
Body
Staff Recommends: Approval of the attached Resolution.
Explanation:
In 2010, the City Commission determined that, as part of the City's emergency preparedness planning, it is appropriate and necessary to establish a line of credit to provide interim financing, if needed, to meet post-disaster recovery costs in the event of a declared state of emergency.
The Line of Credit Agreement sets forth the terms and conditions under which the City may make a borrowing in the form of a promissory note in a principal amount not to exceed $10,000,000.00.
On September 1, 2010, the City Commission approved Resolution R-2010-241 to enter into a Line of Credit Agreement with Wells Fargo Bank, N.A.
The Line of Credit Agreement provided for extensions of the Agreement for additional successive periods, each period not to exceed one year. The Agreement with Wells Fargo Bank, N.A. was extended for an additional year in 2011, 2012, 2013, 2014, 2015 and again in 2016. The last Agreement expired on May 31, 2017.
The City desires to continue to maintain a Line of Credit Agreement for the upcoming year to assist in meeting the costs in the event of a disaster and City Bank National has indicated a willingness to enter into an Agreement with the City for that purpose at a fee of $35,000.00.
The City Manager and the Assistant City Manager for Finance & Administration recommend maintaining a Line of Credit Agreement for the upcoming year.
Recommended for inclusion on the agenda by:
Dr. Wazir Ishmael, City Manager
George R. Keller, Jr., Assistant City Manager for Finance & Administration / Interim Director of Financial Services Department