HomeMy WebLinkAbout3194 RESOLUTION NO. 3194
A RESOLUTION, of the City Council of the City of
Bremerton, Washington, authorizing an Interfund Loan to Fund
120 Conference Center Operations from Fund 510 Equipment
Rental Reserve Fund
WHEREAS, the City of Bremerton, Kitsap Transit, Kitsap Public Facilities
District, and Columbia Hospitality, Inc has embarked on a public private partnership for the
expansion of the Kitsap Conference Center, and
WHEREAS, a budget of not to exceed $1,100,000 has been identified as the total
for the expansion, inclusive of soft costs, and
WHEREAS, the City of Bremerton's potential commitment for this funding is not
to exceed $500,000, and
WHEREAS, external financing options for the City to provide these funds are
more costly than what the City can provide through an xnterfund loan, and
WHEREAS, surplus cash in an amount sufficient to meet these cash flow needs is
presently on hand in the Equipment Rental Reserve Fund, NOW THEREFORE,
THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON,
DOES HEREBY RESOLVE AS FOLLOWS
SECTION 1. The Assistant Director of Financial Services is hereby authorized
and directed to make an inter -fund loan from the Equipment Rental Reserve Fund to the
Conference Center Operations Fund in an amount not to exceed $500,000 The initial loan draw
shall be limited to $100,000 until actual bids are received for the construction work If bids for
the construction phase of the expansion, along with prior incurred architectural and other soft
costs, will exceed $1,100,000, no further funds shall be drawn on this mterfund loan without
additional authority of the City Council
SECTION Z Repayment of the mterfund loan shall be as follows
Interest will accrue on an annual basis The interest rate shall be based on the Local Government
Investment Pool earnings on December 31 of each year a principal payment is due
a) Beginning 2015, a minimum of $100,000 or remaining principal, whichever is
less, shall be repaid by December 31, 2015, along with accrued interest
1
Inter fund Loan to the
Conference Center Operations Fund
b) For 2016, a minimum of $100,000 or remaining principal, whichever is less, shall
be repaid by December 31, 2016, along with accrued Interest
C) For 2017, a minimum of $100,000 or remaining principal, whichever Is less, shall
be repaid by December 31, 2017, along with accrued Interest
d) For 2018, a minimum of $100,000 or remaining principal, whichever is less, shall
be repaid by December 31, 2018, along with accrued Interest
e) For 2019, a minimum of $50,000 or remaining principal, whichever is less, shall
be repaid by December 31, 2019, along with accrued Interest
f) For 2020, a minimum of $50,000 or remaining principal, whichever is less, shall
be repaid by December 31, 2020, along with accrued Interest
SECTION 3. SeverabihLE If anyone 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 4. Effective Date This Resolution shall take effect and be In force
Immediately upon Its passage
PASSED by the City Council of the City of Bremerton, Washington this
day of , 2013 1
W
GREG I EELER, Council President
APPROVED AS TO FORM TEST
S R FGER LU BOVICH, City Attorney SFIXNNON CORM, City Clerk
R \Lega1\Lega1\Files \Current Active Files \Conference Center\2013 Interfund Loan Ordinance - Conf Ctr Expansion doc
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Inter fund Loan to the
Conference Center Operations Fund