Broward County Commission Regular Meeting


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AI-26415 19.       
Meeting Date: 03/20/2018  
Director's Name: George Tablack
Department: Finance & Administrative Services Division: Administration

Information
Requested Action
MOTION TO APPROVE First Amendment and Waiver to the Reimbursement Agreement between Broward County and Royal Bank of Canada.

ACTION:  (T-11:01 AM)  Approved.

VOTE:  9-0.
Why Action is Necessary

The First Amendment and Waiver to the Reimbursement Agreement must be approved by the Board of County Commissioners.

What Action Accomplishes

Removes Broward County’s obligation to provide Royal Bank of Canada (the “Bank”) with Broward County Port Everglades’ (“Port Everglades”) unaudited fourth quarter financials, while keeping in place Broward County’s obligation to provide the Bank with Port Everglades’ unaudited financials for the first, second and third quarters, as well as audited financials for each Fiscal Year end.

Is this Action Goal Related
Previous Action Taken
None.
Summary Explanation/Background
THE FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT AND THE PORT EVERGLADES DEPARTMENT RECOMMEND APPROVAL OF THE ABOVE MOTION.

The County and Royal Bank of Canada (the “Bank”) entered into a Letter of Credit Reimbursement Agreement dated July 1, 2014 (“Agreement”), pursuant to which the Bank issued its Irrevocable Direct Pay Letter of Credit (the “Letter of Credit”) to provide credit and liquidity support to the County’s $35,735,000 Subordinate Port Facilities Refunding Revenue Bonds, Series 2008.

The Agreement requires that the County provide the Bank with Port Everglades’ unaudited financials for each quarter, due 45 days after the end of such quarter. In addition, the Agreement requires that the County provide the Bank with certain annual financial statements within 180 days of the Fiscal Year end close. The County and the Bank have determined that the County’s obligation to provide fourth quarter financials is unnecessary and duplicative because the Bank is already receiving such information via the annual financial statements. As a result, the County and the Bank would like to enter into this First Amendment and Waiver to the Agreement (“First Amendment”), which will eliminate the County’s obligation to provide the Bank with Port Everglades’ fourth quarter financials. In addition, the Bank, pursuant to the First Amendment, will waive the County’s obligation to provide the Bank with Port Everglades’ financials for the fourth quarter of 2017. In exchange for the waiver and for the removal of the fourth quarter reporting obligation, the County has made certain representations and warranties to the Bank, including a representation that the County has not defaulted under the Agreement.
Source of Additional Information
George Tablack, CPA, Chief Financial Officer, (954) 357-7130

Fiscal Impact
Fiscal Impact/Cost Summary:
None.
Attachments
Exhibit 1 - First Amendment to Reimbursement Agreement


    

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