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RESOLUTION NO. 46-78
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE QF CALIFORNIA
A RESOLUTION AUTHORIZING AN INTERFUND
LOAN
WHEREAS, the City Council has considered the Staff Report dated April
19, 1978, Subject' Interfund Cash Loan Authorization, a copy of which is
attached hereto as Exhibit "A" and
WHEREAS, the Council desires to authorize an interfund loan on the
terms and conditions hereinafter set forth;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
South San Francisco that'
1. Loan Authorization,
An interfund loan of One Million Four Hundred Forty-Six and 00/100
Dollars ($1,446,000.00) to the Capital Improvement Fund, is hereby authorized,
with the sum of One Million and 00/100 Dollars ('$1,000,000.00) being inter-
.,
loaned from the general fund and the sum of Four Hundred Forty-Six Thousand
Dollars ($446,000.00) being interloaned from the Revenue Sharing Fund.
2. General Fund Loan Repayment.
The General Fund loan of One Million and 00/100 Dollars
($1,000,000.00) shall be repaid from the sale of the p,~operty located at Chest-
nut and Grand Avenues designated as the Public Safety Site and/or the proceeds
of a bond sale by the City of South San Francisco Public Facilities Corporation,
a nonprofit corporation, or any other nonprofit corporation formed for the
purpose of acquiring or rehabilitating the Value Giant site and premises.
3. Repayment of Revenue Sharing Loan.
The revenue sharing loan shall be repaid by'an appropriation from
the 1978-79 budget.
4. Non-Acquisition of Value. Giant Site.
If the Value Giant site is not acquired, the sum of One
Million and 0,0/100 Dollars ($1,000,000.00) shall be returned to the
General Fund from the Capital 'Improvement Fund thereby cancelling the
loan previously authorized, and the sum of Four Hundred Forty-Six
Thousand Dollars ($446,000.00) shall be returned to the Revenue Sharing
Fund.
I hereby certify that the foregoing Resolution was regularly intro-
duced and adopted by the City Council of the City of South San Francisco
at a re~Fular meeting held on the 19t~day of April ,
1978, by the following vote:
AYES: Councilmen Ronald O. Acosta,. William A, BOrba, Emanuele N.
Damonte and Terry J. Mirri
NOES: Councilwoman Roberta Cerri Tegl ia
ABSENT: None
City C1 erk
.
April lg, 1978
'~EXHIB"IT "A" TO RESO. NO. 46-78
DATED APRIL 19, 1978
To:
The Honorable City Council
Subject:
Interfund Cash Loan Authorization
ACTION: Resolution
RECOMMENDATION:
It is recoranended that the City Council authorize interfund cash loans of
$1,000,000 from the General Fund and $44t5,000 from the Revenue Sharing Fund
to the Capital Improvement Fund in order tO purchase the Value Giant property.'
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DISCUSSION'
On Monday, April 3, the City notified Castle and Cooke that it was exercis-
ing its option to acquire the Value Giant property. Within 30' days or about
May 1 the City must open an escrow account and deposit $1,390,000. However,
at this time the Capital Improvement Fund does not have the necessary cash
to be placed into escrow· The option agreement also provides that the lessee
of-the Value Giant~'proper_ty, Castle and Cooke ,- have 90 days to acquire title'
from the Owners-as their:-share of the transaction · -.-~- .... -.~ . .....
The funding for this overall project will be derived from the sale of property
at Chestnut and Grand, Revenue Sharing funds and the proceeds of a bond sale
by the :.Non-P~fi t Public: Facilities Corporation -..?..:.~-~-~,~-....~
The City will not sell the vacant-five acre parcel at Chestnut and Grand until
i-t is assured that it can acquire titl~ to the Value Giant property .....
-
As a result of these, overlapping time constraints it is necessary to provide
the Capital Improvement Fund with the necessary cash for escrow and w~th the
provision that the loan f~m the General Fund would be repaid i~ediately
following the sale of the Chestnut and Grant properties. It is also antic-
ipa~d ~at in the coming budgetary process the required funds will be
appropriated in the Revenue Sharing Fund and thereby repay that loan.
The attached Resolution provides authority for these loans and further provides
~' ' "'" '~'~" ~'~'?~'"<;'-'
'~.April 19, 1978
,1o: The Honorable City Council
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,
for prompt ~epayment inasmuch as the General Fund will
for operations later:in 1978..
C;'"'Wal ter Birkelo ....
City Manager ..
Director of, Finance
Enclosure
. ,
require this cash
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