Laserfiche WebLink
6.2A <br />Page 3 <br />RESOLUTION NO. <br />INTER-FUND LOAN AGREEMENT (SEWER) <br />RESOLUTION ESTABLISHING LOAN AGREEMENT AND <br />TRANSFER OF THE SUM OF $2,500,000 FROM THE REDWOOD <br />CITY SPECIAL WATER FUND TO THE REDWOOD CITY SPECIAL <br />SEWER FUND <br />WHEREAS, pursuant to Redwood City Municipal Code section 38.20, a special <br />fund known as the Water Fund has been established, and <br />WHEREAS, pursuant to Redwood City Municipal Code section 27.110, a special <br />fund known as the Sewer Fund has been established, and <br />WHEREAS, the Sewer Fund has a temporary need for additional funds in the <br />sum of $2,500,000 in order #o cover an unanticipated increase in the capita! fund needs <br />of the South Bayside System Authority (SBSA}, which treats and disposes of the City's <br />sewage, and <br />WHEREAS, the Water Fund has sufficient funds to temporarily loan to the Sewer <br />Fund, <br />NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF <br />REDWOOD CITY, AS FOLLOWS: <br />1. The sum of Two Million Five Hundred Thousand and No/100 {$2,500,000} <br />current and existing in the Redwood City Water Fund is hereby ordered <br />transferred to the Redwood City Sewer Fund, as a loan for the above <br />described purpose in accordance with the following terms: <br />a. Said loan shall be for a term of three (3) years, commencing June <br />1, 2007 and expiring July 31st, 2010; <br />b. Interest shall be calculated on the declining balance of said loan at <br />a variable rate, recalculated every Jul-31, Oct-31, Jan-31, and Apr- <br />30 (Interest Calculation Dates) based on principal outstanding as of <br />such payment date {prior to any principal payment made on such <br />date) multiplied by one fourth of the published State of California <br />Treasurer`s Local Agency Investment Fund Quarterly <br />Apportionment Rate for the most recent preceding calendar <br />quarter. Such interest calculation will be based upon the principal <br />outs#anding as of the Interest Calculation Date and will then be paid <br />by the Sewer Fund on the same date (Payment Date}. <br />ATTYIRESO/RESO.1708 <br />052107 <br />