HomeMy WebLinkAbout32887THIRD AMENDMENT TO AGREEMENT
FOR CASH ADVANCES AND REPAYMENT
This Third Amendment ("Third Amendment") to Agreement for Cash Advances
and Repayment ("Agreement") is made and entered into by and between the COUNTY
OF FRESNO, a political subdivision of the State of California ("Fresno") and the San
Joaquin Valley Insurance Authority ("SJVIA," or "the Authority"). Fresno and SJVIA each
are a "Party" to the Agreement; and Fresno and SJVIA collectively are the "Parties" to
the Agreement.
RECITALS
Fresno and the SJVIA entered into the Agreement (County of Fresno Agreement
No. 16-049), effective as of December 23, 2015, to provide for a cash advance of up to
$2,000,000 to the SJVIA.
The County of Tulare ("Tulare") and the SJVIA entered into an Agreement for
Cash Advances and Repayment (County of Tulare Agreement No. 27772) ("Tulare
Agreement"), effective as of July 19, 2016, 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.
On December 20, 2016, Tulare and the SJVIA amended the Tulare Agreement
(County of Tulare Agreement No. 27772-A) to increase the amount of Tulare's cash
advance to the SJVIA to a total of up to $4,000,000, and to extend the term of the
Agreement and provide for repayment no later than June 30, 2018.
Fresno has advanced $5,000,000 to the SJVIA and Tulare has advanced
$4,000,000 to the SJVIA.
On May 4, 2018, the SJVIA's Board of Directors expressed its desire to extend
the date of repayment of the cash advances made by Tulare and to ensure that the
solvency of the SJVIA remains foremost and to provide for building reserves. The
SJVIA's Board of Directors also directed that the Agreement and the Tulare Agreement
should be further amended to provide dollar-for-dollar repayment of Fresno and Tulare
ending no later than December 30, 2021.
The Parties now desire to further amend the Agreement consistent with the
direction from the SJVIA's Board of Directors, as provided in this Third Amendment.
The Parties therefore agree as follows:
1.Article Ill, Section F, of the Agreement is hereby amended to state, in full:
1
Agreement No. 16-049-3
"F. The SJVIA shall repay in full to Fresno the amount or amounts advanced
by Fresno to the SJVIA under this Agreement, plus accrued interest at the
County of Fresno Treasury Pool interest rate on the unpaid balance advanced by
Fresno to the SJVIA, until all such amounts are fully paid by SJVIA to Fresno,
which shall in any event be at the earlier of:
1.When there is sufficient cash balance in SJVIA's Chase Bank account
to cover regular SJVIA cash flow needs, as determined by SJVIA Manager
and SJVIA Auditor-Treasurer; or
2.December 30, 2021.
If Tulare provides any amount of funds to SJVIA, as its own separate
advance pursuant to the Tulare -SJVIA Cash Advance and Repayment
Agreement referenced in the preceding Paragraph II.A., then Fresno and Tulare
shall be repaid simultaneously and dollar-for-dollar. Fresno acknowledges that,
because Fresno has advanced $5,000,000 while Tulare has advanced
$4,000,000, the preceding sentence means that Tulare may be paid in full before
Fresno is paid in full.
To avoid unnecessary amounts advanced by Fresno and Tulare, the
SJVIA may repay a portion of any advance, subject to the terms and conditions
of this Agreement, without affecting the SJVIA's right to request an advance
under this Agreement, provided that such repayment complies with the foregoing
provisions of this Section 111.F."
2.All terms, conditions, mutual covenants, and promises contained in the
Agreement, as previously amended, remain in full force and effect except as amended
above.
[SIGNATURE PAGE FOLLOWS]
2