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and will hold City harmless for any liability arising from this installation. Motion carried on roll call vote, Councilman Rosselli being noted absent. Councilman Petersen moved to adopt RESOLUTION NO. 5438 ADOPTING BUDGET FOR EXPENDITURE OF FUNDS ALLOCATED FROM THE STATE HIGHWAY FUND TO CITIES, seconded by Councilman Granger. Original Budget for Section 2107 Gas Tax Funds was adopted December 12, 1966. This amended Budget, submitted by the State Division of Highways, merely extends the limits of Project No. 108 (Veterans Blvd. Improvements) from Maple Street to Redwood Creek and shows the Sec. 2107 Funds available to June 30, 1967, as increased by $8,586.23. Councilman Granger questioned connection of this action with the State Highway Division. City Manager answered that Veterans Blvd. is part of Redwood City's Select System and 2107 Gas Tax Funds are available for use on the streets which are included in the select system. Motion carried on roll call vote, Councilman Rosselli being noted absent. Councilman Henderson moved to introduce Ordinance appropriation of sums of $3,500 and $4,020 from unappropriated balance of budgeted reserves of General Fund to Building regulations appropriation for materials, supplies and services, and en- gineering and administration appropriation for materials, supplies and services, respectively; and, appropriating all funds remaining in special deposit fund on June 30, 1967 for purposes specified in Section 2.40 of the Code of the City of Redwood City, seconded by Councilman Bury. Staff report stated (1) $3,500 appropriation was to cover funds to provide for abatement program of substandard housing and signs for which no funds had been provided in 1967-68 budget. (2) $4,020 will provide costs of design work for improvement districts, particularly Lexington Avenue Improvement District. (3) Balance of Special deposit Fund as of June 30, 1967, through oversight, had not been appropriated to 1967-68 budget. Kaiser Hospital Foundation monies are also included within this Fund. Motion carried on roll call vote, Councilman Rosselli being noted absent. Councilman Petersen moved to adopt RESOLUTION NO. 5439 AMENDING RESOLUTION NO. 5137 ADOPTED SEPTEMBER 12, 1966, AS AMENDED, AUTHORIZING PROCEEDINGS IN EMINENT DOMAIN FOR WATERWAY AND RELATED IMPROVEMENTS AND FOR PATHWAY SYSTEM AND RELATED IMPROVE- MENTS, seconded by Councilman Granger, on condition that this Resolution has been approved by the City Attorney. This Resolution makes the following basic changes from the previously adopted (and amended) resolution: (1) Eliminates the roadway and utility parcels as a result of execution of the agreement approved by the Council on July 17th;(2) Reduces the area to be acquired from the Scavenger Co.; (3) Changes the nature of the acquisition from an easement for waterway and levee purposes only to include uses for a path- way system with related facilities. Staff was questioned whether expenses of condemnation suit are to be paid by City or if reimbursement is to be made by Leslie PropertiEs, and acreage of area involved; if area described for condemnation is to be used for public purposes only as 'k0. 44 '6T