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7.1.1. - Page 2 <br />At their February 25, 2013 meeting, the Finance Committee expressed support for this <br />recommended interest rate increase and directed staff to prepare necessary documents <br />to bring the proposal to the full Council for consideration. <br />Accordingly, staff prepared a First Amendment to Note to reflect the new interest rate of <br />LAIF plus 2.5%, and a First Amendment to Deed of Trust to secure this Amended Note. <br />ALTERNATIVES <br />The Council may reject this recommendation to increase the interest on the loan and <br />direct staff to "call' the loan. <br />FISCAL IMPACT <br />Increase general fund interest income by $42,500 annually (declining as principal is <br />repaid). This change will be effective October 1, 2013 and apply to Note payments due <br />for July — September 2013. <br />ENVIRONMENTAL REVIEW <br />This activity is not a project under CEQA as defined in CEQA Guidelines, section <br />15378, because it has no potential for resulting in either a direct or foreseeable physical <br />change in the environment. <br />BRIAN PONTY <br />DIRECTOR OF FINANCE <br />ROBERT B. BELL <br />CITY MANAGER <br />ATTACHMENTS <br />1. 1St Amendment to the Note Secured by Deed of Trust <br />2. 1 st Amendment to the Leasehold Deed of Trust <br />RELATED DOCUMENTS IN CITY CLERK'S OFFICE <br />None <br />