DATE: August 7, 2018
TO: Board of Supervisors
SUBMITTED BY: Paul Nerland, Director of Human Resources
SUBJECT: Third Amendment to Agreement for Cash Advances and Repayment between County of Fresno and San Joaquin Valley Insurance Authority
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute Third Amendment to Agreement No. 16-049 with San Joaquin Valley Insurance Authority for Cash Advances and Repayment.
REPORT
Approval of the recommended action will authorize the Chairman to execute a third amendment to the Cash Advances and Repayment Agreement (County of Fresno Agreement No. 16-049) ("Agreement") to provide dollar-for-dollar repayment of County of Fresno (Fresno) and County of Tulare (Tulare), no later than December 30, 2021.
ALTERNATIVE ACTION(S):
Your Board may choose not to amend the Agreement and maintain the repayment terms contained in the second amendment to the Agreement, which is that Fresno and Tulare shall be repaid simultaneously and pro-rata based on the principal amount advanced by each of them to the San Joaquin Valley Insurance Authority (SJVIA).
FISCAL IMPACT:
There is no net County cost associated with the recommended action. The amount of $5,000,000 that has been advanced to SJVIA is expected to be paid back to Fresno, with interest, no later than December 30, 2021.
DISCUSSION:
On December 23, 2015, Fresno and the SJVIA entered into an Agreement to provide for a cash advance of up to $2,000,000 to the SJVIA. On December 13, 2016, Fresno and the SJVIA amended the Agreement (County of Fresno Agreement No. 16-703) to increase the amount of Fresno's cash advance to the SJVIA to a total of up to $5,000,000, and to extend the term of the Agreement and provide for repayment no later than December 30, 2021. In 2017, Fresno and the SJVIA further amended the Agreement (County of Fresno Agreement No. 17-188) to increase the amount of Fresno's potential cash advance to the SJVIA to a total of $8,000,000. Fresno has ad...
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