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HomeMy WebLinkAboutMinutes 1986-09-10President Roberta Cerri Teglia Commi ssi oners: Mark N. Addiego John "Jack" Drago Ri chard A. Haffey Gus Nicol opulos SURPLUS PROPERTY AUTHORITY Municipal Services Building Community Room September 10, 1986 NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of California, that the Surplus Property Authority of the City of South San Francisco will hold a Special Meeting on Wednesday, September 10, 1986, at 6:45 p.m., in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California. Purpose of the meeting: 1. Approval of the Minutes of the Regular Meeting of 5/28/86. e Staff Report 9/10/86 recommending adoption of a Resolution to authorize completion of the purchase with United States General Services Administration for the Oyster Point Property. A RESOLUTION AUTHORIZING THE CITY COUNCIL TO PROVIDE FUNDS FOR COMPLETION OF THE PURCHASE OF THE OYSTER POINT PROPERTY FROM THE GENERAL SERVICES ADMINISTRATION Cerri Tegli~~, President Surplus Property A~H~hority City of South San Francisco Dated: September 4, 1986 AGENDA SPECIAL MEETING CALL TO ORDER: (Cassette 1) 1. Approval of the Minutes of the Regular Meeting of 5/28/86. ® Staff Report 9/10/86 recommending adoption of a Resolution to authorize completion of the purchase with United States General Services Administration for the Oyster Point Property. A RESOLUTION REQUESTING THE CITY ACTION TAKEN SPECIAL MEETING 7:00 p.m. President Teglia presiding. Commissioners present: Nicolopulos, Addiego, Drago and Teglia. Commissioners absent: Haffey. M/S Nicolopulos/Addiego - to approve the Regular Minutes of 5/28/86. Carried by unanimous voice vote. City Manager Birkelo stated that this Resolution had been put forward because the Authority did not have a bank account, and the recommendation was to consummate the purchase with the General Services Administration on the Oyster 9/10/86 Page I A G E N D A A C T I 0 N T A K E N OO!O01G 2. Staff Report - Continued. COUNCIL TO PROVIDE FUNDS FOR COMPLETION OF THE PURCHASE OF THE OYSTER POINT PROPERTY FROM THE GENERAL SERVICES ADMINISTRATION Point property. He stated that the action was to request the City Council to provide the funds to effect the transac- tion. He stated that later, sitting as Council, that Body would have a resolu- tion to authorize the action to be taken. He stated that the current contract with the General Services Administration called for 13.1/8% interest, and he believed the City Treasurer had suf- ficient funds in an investment pool to take that on as an investment on behalf of the Council. City Treasurer Ford stated that if the Council chose to pay off the property, the money was available as it was a savings to the City in an approximate amount of over $300,000 - which she felt was a pru- dent move. She stated that it was a $764,000 loan with an additional $54,000 in accumulated interest. City Manager Birkelo stated that the next payment would come due in the middle of October, at which time the property would be paid off in the amount of $825,000. Mayor Teglia questioned the essence of the memo from the City Attorney on this subject. City Manager Birkelo stated that the city Attorney had very precisely defined when the three year period would expire with the Federal Government, with respect to the capture of any excess profits. Councilman Nicolopulos voiced concern over the small amount of time given Council to review the document, in that he wanted to be a policy maker and not just react to input on short notice when the Council was in budget constraints. He questioned where the money was coming from to lend to the Authority. City Treasurer Ford stated that on October 4th, she had $3,600,000 coming 9/10/86 Page 2 AGENDA 2. Staff Report - Continued. ADJOURNMENT ACTION TAKEN 00( 017 due which was sufficient for the other investments in place presently to cover the $825,000, land proceed with the other expenditures. Vice Mayor Addie9o commended the City Manager and Treasurer for taking action on this outstanding loan and the resultant potential for savings. City Manager Birkelo stated that in addi- tion to the interest savings, it had a benefit to the rather tight budget this year, because throu§h the long process it would defer interest and principal payments for several years. He con- tinued, even though the cash flow was a little tight, when the property was sold a gain would be realized. Councilman Drago questioned when the decision to pursue this matter had been made. City Manager Birkelo stated that discussions had taken place over a year ago with the former City Treasurer, and that after his demise the matter had fallen by the wayside. He stated that recently the subject had come up again after reviewing the different interest rates, and the matter had to be contended with again. M/S Addiego/Drago - To adopt the Resolution. RESOLUTION NO. SPA-7-86 Carried by unanimous roll call vote. M/S Addiego/Drago - To adjourn the meeting. Carried by unanimous voice vote. The meeting was adjourned at 7:19 p.m. 9/10/86 Page 3 AGENOA ACTION TAKEN RESPECTFULLY SUBMITTED, Barbara A. Battaya, Clerk Surplus Property Authority City of South San Francisco /t{6bert-a Cerm 'legl ia, ~'esident Surplus Property Authority City of South San Francisco The entries of this Authority meeting show the action taken by the Surplus Property authority to dispose of an item. Oral communications, arguments and comments are recorded on tape. The tape and documents related to the items are on file in the Office of the City Clerk and are available for inspection, review and copying. 9/10/86 Page 4