TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Julie Bondarchuk, Acting Finance Director
Libby Bretthauer, Financial Services Manager
Marcelo Serrano, Budget & Financial Analyst
SUBJECT:Title
Consideration of a Request to Waive Repayment of the COVID-19 Loan Provided to the Oceanographic Teaching Station (OTS) Roundhouse Aquarium (Acting Finance Director Bondarchuk).
(Estimated Time: 10 Mins.)
DISCUSS AND PROVIDE DIRECTION
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council discuss and provide direction regarding a request to waive repayment of the COVID-19 loan provided to the Oceanographic Teaching Station (OTS) Roundhouse Aquarium.
FISCAL IMPLICATIONS:
As part of the City's COVID-19 Business Loan Program, OTS applied for and received a loan of $10,000 in April 2021. Under the terms of the agreement, loan recipients agreed to repay the loan amount along with interest over a three-year period after the COVID-19 emergency ended. The interest rate on the loans was set based on the Local Agency Investment Fund (LAIF) rate at the time that the City Council approved a motion ending the COVID-19 Emergency plus 0.5%.
On December 20, 2022, City Council approved a motion to end the COVID-19 Emergency on February 28, 2023. Per the loan documents, the interest rate for the loan was determined to be 2.57%, based on the Local Agency Investment Fund (LAIF) rate for December 2022 (2.07%) plus 0.5%. Repayment for OTS' loan was set to begin May 1, 2023, with monthly payments of $288.92. Per the terms of the loan, OTS would have paid $10,401.12 for principal and interest over the three-year repayment period of the loan.
BACKGROUND:
The City Council has developed a process to allow individual Councilmembers to request, with the support of at least two other Councilmembers, that items be placed on a future agenda for City Council discussion. A...
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