2006/05/17 Council Agenda Packet

4.04 Interest Earned on Public Works Trust Fund Monies All interest earned on Public Works Trust Fund Monies held by the LOCAL GOVERNMENT shall accrue to the benefit of the LOCAL GOVERNMENT and be applied to the eligible costs of the approved project. Benefits shall accrue in one of two ways: 1. Reduce the amount of the Public Works Trust Fund loan. 2. Pay any part of eligible project costs that are in excess of ATTACHMENT I: SCOPE OF WORK estimates,if there is an overrun of project costs. The LOCAL GOVERNMENT shall establish procedures to ensure that all monies received from the Public Works Trust Fund loan can be readily identified and accounted for at any time during the life of this loan agreement. Such procedures shall consist of the establishment of a separate fund, account,sub-account or any other method meeting generally accepted accounting principles. 4.05 Time of Performance The LOCAL GOVERNMENT shall begin the activities identified within ATTACHMENT I: SCOPE OF WORK no later than three months after loan agreement execution, and reach project completion no later than forty-eight(48)months after the date of agreement execution. Failure to perform within the time frame described in the preceding paragraph may constitute default of this agreement. In the event of extenuating circumstances,the LOCAL GOVERNMENT may request, in writing, that the BOARD extend the deadline for project completion. The BOARD may,by a two-thirds vote,extend the deadline. The term of this agreement shall be for the entire term of the loan, irrespective of actual project completion,unless terminated sooner as provided herein. 4.06 Repayment The first loan repayment under this agreement is due July 1, 2007, and subsequent installments are due on July 1 of each year during the term of the loan. The first repayment under this agreement shall consist of interest only at the rate of one-half percent(1/2%)per annum, calculated on a 360- day year of twelve 30-day months, applied to funds received. Interest will begin to accrue from the date each warrant is issued to the LOCAL GOVERNMENT. Subsequent repayments shall consist of the principal balance due divided by the loan term remaining plus interest on the unpaid balance of the loan. The fmal payment shall be an amount sufficient to bring the loan balance to zero. The LOCAL GOVERNMENT has the right to repay the unpaid balance of the loan in full at any time, and the right to repay at a faster rate than is provided in this agreement,provided that any such payment must equal or exceed the principal amount normally due on an annual basis. CITY OF EVERETT Page 4 4/21/2006