Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Authorizing The Appropriate City Officials To Execute The Modification And Extension Of The Line Of Credit Agreement With City National Bank For A Three Year Term To Maintain A Line Of Credit Facility To Assist The City In Meeting The Costs Of Recovery In The Event Of A Disaster; Authorizing The Mayor To Execute Promissory Notes And The City Manager To Approve Draws Pursuant To The Line Of Credit Agreement.
Strategic Plan Focus
Financial Management & Administration
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. This 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 2016.
On June 7, 2017, the City Commission approved Resolution R-2017-156 to enter into a Line of Credit Agreement with City National Bank. This Line of Credit Agreement provides for extensions of the Agreement for additional successive periods, each period not to exceed one year. The Agreement with City National Bank was extended for two consecutive one year periods in 2018 and 2019. In 2020 the Line of Credit Agreement expired on May 31, 2020, but was extended for a 90 da...
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