CC MIN 1978 - Laserfiche WebLink

Browse Search

�z o � � � Mayor Barrett called attention to the letter to the City Manager dated April 21 from the bond counsel, Orrick, Herrington, Rowley & Sutliffe stating that following their review of materials sent to them and discussion with the City Attorney, it is their opinion that all the pro�ects described qualify for funding by the sale of bonds of the District heretofore authorized. City Manager Fales called attention to pages 90-91 of the recom- ' mended Annual Budget 1978-79 listing the pro�ects by name and description He noted that all references to tax rates apply only to the District and not to any other part of the City He noted also that should Proposition 13 pass, there is no guarantee that the district would be able to sell any bonds which might be issued and advised that Mobil is aware of that, but wishes to proceed because their permit from the Army Corps of Engtneers 1s running out and for other reasons. MOTION Councilman Norris moved that the District adopt policy sett�ng 1 0 percent of fair market value as the repayment capacity guideline for issuance of long term general obligation bonds. The motion died for lack of a second. MOTION. Councilman Norris moved that a"deficiency agreement" be signed between the developer and the District that would pro- tect the homeowner from a rise above 1.0 percent of fair market value which would require financial assistance from the developer sufftcient to reduce the repayment to 1.0 percent of fair market value � The motion died for lack of a second � Discussion followed and P1r. Fales and Mr Warren commented and replied to questions regarding each of the pro�ects proposed to be constructed and the likely contribution of the South Bayside System Authority and their proposed use of roads during construc- tion of the new plant MOTION Councilman Norris moved, seconded by Councilman Biagi, that staff cont�nue to pursue negot�ations with San Carlos, Belmont and the County to the end that a contribut�on is made to the cost of drainage facilities proposed to be installed in Area "A". The motion carried unanimously by voice vote (MINUTE ORDER N0. 78-125) MOTION Councilman Norris moved to ask Council to authorize a plebiscite among the residents of Redwood Shores who are being asked to be in a �oint venture with the developer with regard to the proposed pro�ects for which bonds would be issued The motion died for lack of a second ' Don Warren (see above) stated that he respects concerns of res7- dents and would like to point out that Mobil is prepared to enter into i�nediate negotiations and agreement with the City whereby , Mobil is prepared to undertake certain pro�ects and not request repayment until such time as the assessed value necessary for the I bonds is in place, noting that no other guarantee is necessary Budget Study -9- 5/13/78 I