HomeMy WebLinkAbout06-008
DATE SUBMITTED: 12-21-05
AGENDA BILL
CITY OF BREMERTON
CITY COl]NCIL
BILL #
6" - (]O~g ",'<-' "
. __ L '" .
..............................................................'...........................
SUBJECT: Resolution authorizing the first
amendment and' extension of the
Reimbursement Agreement between the City
of Bremerton<and Bank of America
Committee Meeting Date: 12-28-05.
COUNCIL MEETING Date: 1-04-06
Department: Financial Services
Presenter: Laura Lyon
Phone: 473-5722
SUMMARY: The City has issued and sold $10,865,000 par amount of 2003 Kitsap Regional Conference'
Center Parking Garage Weekly Rate Demand Revenue Bonds pursuant to Ordinance No. 4846. The payment
of principal and interest on the Bonds is supported by an irrevocable direct-pay Letter of Credit issued by Bank
of America, N.A. pursuant to the Reimbursement Agreement dated February 1, 2003 between the City and the
Bank. The initial Letter of Credit expires on February 10, 2006and per the terms of the Trust Indenture with
US Bank National Assocation (trustee) the City must provide an extension or replacement of the Letter of
Credit by January 11, 2006. Bank of America has provided a non-binding proposal letter dated December 13,
2005 which extends the expiration date of the initial Letter of Credit to FebrUary 10, 2008 and reduces. the
Letter of Credit fee accrual rate to 0.375% per annum. This resolution authorizes the Mayor and/or Director of
Financial Services to execute the F4"st Amendment to the Reimbursement Agreement in substantially the fomi.
as the Exhibit A attachment to the Resolution.
A TT ACHMENTS: Resolution with Attachment, Non-Binding Proposal Letter from Bank of America,
N.A., Transmittal Memo
FISCAL IMPACTS (Include Budgeted Amount): The adopted 2006 budget includes fees ass~ciated with
the 2003 Conference Center Parking Garage Weekly Variable Rate Demand Revenue Bonds. The Letter of
Credit fee per this amendment will be less than that budgeted for in 2006. due to the reduction of the fee accrual
rate from the current 0.45% to 0.375% per anIium.
APPROVALS:
DEPARTMENT DIRECTOR:
CITY ATTORNEY:
FINANCE DIRECTOR:
MAYOR:
FISCAL/BUDGET:
OPERATIONS:
COUNCIL PRESIDENT:
RECOMMENDED MOTION:
Move to approve Resolution No. ;J'I8~ authorizing the,Mayor or Director of Financial Services to
execUte the First Amendment to the Reimbursement Agreement dated February I, 2003 by and
betw~en the City and Bank of America N.A. extending the expiration date to February ~O; 2008 for
the irrevocable direct-pay letter of credit iS,sued by Bank of America supporting the 'payment of the
principal and interest on the City's 2003 Kitsap Regional Conference Center Parking Garage Weekly
Rate-Demand Revenue Bonds.
COUNCIL ACTION: ~prove 0 Deny 0 Table
,0 Continue
o No Action