HomeMy WebLinkAbout16-005 Establishing Line of Credit Resolution 16-005
Resolution No. 16-005
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND,
WASHINGTON, AUTHORIZING THE ENTRY OF A CONTRACT WITH KITSAP
BANK TO PROVIDE A BANK LINE OF CREDIT TO THE CITY
WHEREAS, the City of Port Townsend ("City") plans to complete utility projects such
as the Water Treatment Plant. Water Reservoir, and other capital improvements to the water and
sewer system; and,
WHEREAS, because of the timing for reimbursement for the funding sources, the City
requires a source of interim financing; and,
WHEREAS, the City Council adopted Ordinance 3144, authorizing the issuance and
establishment of a line of credit to provide this interim financing; and,
WHEREAS,the City requested quotes from two of the qualified banks that recently
provided quotes on a general line of credit; and,
WHEREAS, responses to the City's request were reviewed by staff and the City's
financial advisors, recommending that the City Council enter into an agreement with Kitsap
Bank.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port
Townsend as follows:
1. The City Manager is authorized to enter into an agreement with Kitsap Bank for a
Bank Line of Credit in the amount not to exceed Three Million Dollars and no cents
($3,000,000.00). The Line of Credit shall be repaid using water and sewer utility
revenues, including but not limited to reimbursement from outside funding sources.
2. The City Manager is authorized to take other administrative actions consistent with this
Resolution.
ADOPTED by the City Council of the City of Port Townsend at a regular meeting
thereof, held this 1 st day of February, 2016.
Deborah S. S inson
Mayor
Attest: Approved as to form:
Joanna Sanders, CMC Steven L. Gross
City Clerk City Attorney