HomeMy WebLinkAbout01/20/2010 5I )
DATE SUBMITTED: I r
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AGENDA BILL -- --�-- ----� ------__ _+
CITY OF BREMERTON
CITY COLTNCIL
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SUBJECT: Resolution No. 3 I o Committee Meeting Date: January 13, 2010
authorizing an extension of a letter of credit COiJNCIL MEETING Date: January 20, 2010
with Revenue Bonds, 2003 (Kitsap Regional Department: Financial Services
Conference Center Bank of America, N.A. Presenter: Cathy Johnson
relating to the City's Weekly Rate Demand Phone: 473-5296
Parking Garage).
SUMMARY: The City Council of the City of Bremerton, Washington, 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. In connection with such Bonds, a letter of credit
was issued by Bank of America, N.A. dated as of February 20, 2003. The Letter of Credit will expire
on February 10, 2010. The City is preparing to refund the Bonds in the first half of 2010, depending
on the bond market. The City would like to extend the Letter of Credit with the Bank for an
additional six months after the Expiration Date. 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 February 10,
2010, the expiration date of such Letter of Credit, the Mayor of the City authorized the Bank to
provide such a commitment to extend the Letter of Credit for an additional six months. The proposed
resolution ratifies this request.
No. 3�06
ATTACHMENTS: Proposed Resolution, Exhibit A— Authorization by the Mayor to provide a
commitment to extend the Letter of Credit, Exhibit B— Terms and Conditions.
FISCAL IMPACTS (Included Budgeted Amount): The adopted 2010 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 1.1 S%.
APPROVALS:
DEPARTMENT DIRECTOR:
CITY ATTORNEY:
FINANCE DIItECTOR:
, MAYOR:
COMMITTEE CHAIlZ
COUNCIL PRESIDENT: CONSENT AGENDA i
GENERAL BUSINESS ❑ i
_ PUBLIC HEARING ❑
RECOMMENDED MOTION: Move to pass Resolution No. 3i °� authorizing an extension of
credit with Revenue Bonds, 2003 and authorize the Mayor to finalize and execute any and all
documents necessary to exte d the Letter of Credit.
COLTNCIL ACTION: Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action
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