HomeMy WebLinkAbout3106 RESOLUTION NO. ���
A RESOLUTION, of the City Council of the City of Bremerton,
Washington, authorizing an extension of a letter of credit with
Revenue Bonds, 2003 (Kitsap Regional Conference Center Bank
of America, N.A. relating to the City's Weekly Rate Demand
Parking Garage).
WHEREAS the City Council (the "City Council") of the City of Bremerton,
Washington (the "City"), by Ordinance No. 4846, passed on January 29, 2003 (the "Bond
Ordinance"), authorized the issuance and sale of the City's Weekly Rate Demand Revenue
Bonds, 2003 (Kitsap Regional Conference Center Parking Garage), in the principal amount of
not to exceed $11,750,000 (the "Bonds"), and
WHEREAS, in connection with such Bonds, a letter of credit was issued by Bank
of America, N.A. (the "Bank") dated as of February 20, 2003 (the "Letter of Credit"); and
WHEREAS, the Letter of Credit will expire on February 10, 2010 (the
"Expiration Date");
WHEREAS, the City is preparing to refund the Bonds in the first half of 2010,
depending on the bond market; and
WHEREAS, the City would like to extend the Letter of Credit with the Bank for
an additional six months after the Expiration Date; and
WHEREAS, the Trust Indenture entered into in connection with the Bonds
required the City to provide U.S. Bank National Association, as Trustee for the Bonds, of an
irrevocable commitment for an alternate letter of credit not less than 30 days prior to the
Expiration Date of such Letter of Credit; and
WHEREAS, prior to January 10, 2010, the Mayor of the City authorized the Bank
to provide such a commitment to extend the Letter of Credit for an additional six months; and
WHEREAS, it is in the best interest of the City to extend the term of the Letter of
Credit pursuant to the commitment of the Bank (the "Commitment"); NOW THEREFORE
THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON,
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. De anitions. Except as otherwise defined herein, capitalized terms
used in this resolution have the meanings set forth in the Bond Ordinance.
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Extension of Letter of Credit
with Bank of America
SECTION 2. Change to PricinQ Terms o Letter of Credit. The Letter of Credit
shall bear interest at the terms outlined in the Commitment of the Bank.
SECTION 3. Ratification and Authorization. Any action taken consistent with
the authority of the Bond Ordinance or this resolution, including the Mayor's authorization to the
Bank to provide a commitment to extend the Letter of Credit, attached hereto as Exhibit A, are
hereby ratified, approved and confirmed pursuant to the terms and conditions set forth in the
letter from Bank of America attached as Exhibit B. The Mayor is authorized to finalize and
execute any and all documents necessary to extend the Letter of Credit as provided herein. If the
City does not issue refunding bonds, the Mayor is authorized to request further extensions of the
letter of credit from the Bank.
SECTION 4. Severabilitv. If any one or more sections, subsections, or
sentences of this Resolution are held to be unconstitutional or invalid, such decision shall not
affect the validity of the remaining portion of this Resolution and the same shall remain in full
force and effect.
SECTION S. Effective Date. This Resolution shall take effect and be in force
immediately upon its passage.
P ED by the City Council of the City of Bremerton, Washington this �✓day of
, 2010.
� , Council President
APPROVED AS TO FORM: ATTEST:
R GER A. LUBOVICH, City Attorney CAROL E, Ci Clerk
R:\Legal\Legal\Resolutions�Finance�Extending LOCCity of BremertonVR Bonds 2003 2.DOC
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Extension of Letter of Credit
with Bank of America
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