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DATE SUBMITTED: November 21,2007
BILL # 07-:J.. q to
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
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SUBJECT: Resolution authonzing the Committee Meeting Date: December 12, 2007
second amendment and extension of the COUNCIL MEETING Date: December 19, 2007
Reimbursement Agreement between the City Department: Financial Services
of Bremerton and Bank of America Presenter: Laura Lyon
Phone: 473-5722
SUMMARY: The City has previously issued and sold $10,865,000 par amount of 2003 Kitsap
Regional Conference Center Parking Garage Weekly Rate Demand 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 Bank. The initial Letter of Credit expired on February 10,
2006 but was extended to February 10, 2008 by the First Amendment to the Reimbursement
Agreement which was approved by City Council by Resolution No. 2986. Per the terms of the Trust
Indenture with US Bank national Association (trustee) the City must provide an extension or
replacement of the Letter of Credit by January 10, 2008. Bank of America has provided a non-
binding proposal letter dated November 20,2007 which extends the expiration date of the Letter of
Credit to February 10, 2010 and reduces the Letter of Credit fee accrual rate to 0.350 per annum. This
resolution authorizes the Mayor and/or the Director of Financial Services to execute the Second
Amendment to the Reimbursement Agreement in substantially the form as the Exhibit A attachment
to the Resolution.
ATTACHMENTS: Resolution with Attachment, Non-Binding Proposal Letter from Bank of
America N.A., Transmittal Memo
FISCAL IMPACTS (Include Budgeted Amount): The adopted 2008 budget includes fees associated
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 2008 due to the
reduction of the fee accrual rate from the current 0.375% to 0.350% per annum.
COMMITTEE CHAIR
COUNCIL PRESIDENT:
CONSENT AGENDA ~
GENERAL BUSINESS 0
PUBLIC HEARING 0
RECOMMENDED MOTION: Move to approve Resolution No. 304:1- authorizing the Mayor
or Director of Financial Services to execute the Second Amendment to the Reimbursement
Agreement dated February 1, 2003 by and between the City and Bank of America N.A. extending the
expiration date to February 10, 2010 for the irrevocable direct-pay letter of credit issued 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.
APPROVALS:
DEPARTMENT DIRECTOR:
CITY ATTORNEY:
FINANCE DIRECTOR:
MA YOR:
COUNCIL ACTION: l2(APprove 0 Deny 0 Table
o Continue 0 No Action