HomeMy WebLinkAboutReso 47-2010RESOLUTION NO. 47-2010
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
RESOLUTION OF THE CITY COUNCIL AND
REDEVELOPMENT AGENCY APPROVING AN
APPROPRIATION BY THE REDEVELOPMENT AGENCY
AND AUTHORIZING THE CITY MANAGER TO EXECUTE
LEGAL DOCUMENTS FOR TERMINATION OF THE CITY' S
OBLIGATION RELATED TO THE CALIFORNIA HEALTH
FACILITIES FINANCING AUTHORITY REVENUE BONDS
OF 1986
WHEREAS, the City of South San Francisco entered into a bond pool arrangement in
1989 sponsored by the California Health Facilities Financing Authority (CHFFA); and
WHEREAS, $563,000 was used by the City of South San Francisco to pay for capital
improvements to the Magnolia Senior Center; and
WHEREAS, CHFFA invested its bond reserve funds in a Guaranteed Investment
Contract (GIC) which has since matured: and
WHEREAS, interest rates on substitute bond reserve instruments are significantly lower
than the GIC; and
WHEREAS, the City would be required to pay an additional $63,500 in additional
interest costs through the end of the bond term in 2011; and.
WHEREAS, those extra interest costs could be avoided by prepaying the City's 2010-11
debt service costs by June 10, 2010; and
WHEREAS, in order to pay off the bonds early, various legal documents ("the
documents") need to be executed, among them the following:
• Termination of Site Lease
• Termination of Lease Agreement
• Termination of Assignment Agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San
Francisco that the City Council hereby authorizes the City Manager to execute the documents
referenced above and any related certificates or instruments that will enable the City to prepay
and terminate its obligation with respect to the 1986 CHFFA bonds. Such documents include the
documents named above in draft form. The City Manager is hereby authorized by execution to
approve minor changes to these draft documents in order to complete the transaction and
otherwise to carry out the purposes of this resolution, and to execute additional related
documents, instruments and certificates that maybe needed or appropriate for such purposes.
I hereby certify that the foregoing Resolution was regularly introduced and adopted by the
City Council of the City of South San Francisco at a Special Joint Meeting held on the 26th day of
May, 2010 by the following vote:
AYES: Councilmembers Pedro Gonzalez, Richard A. Garbarino, and Karyl Matsumoto,
NOES: None
Vice Mayor Kevin Mullin and Mayor Mark Addie~o
ABSTAIN: None
ABSENT:
ATTEST: ~'" ..
City Clerk