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<br /> 5. BOARDS, COMMISSION AND COMMITTEE REPORTS AND <br /> APPOINTMENTS <br /> A. Commitment letter by KBC Bank obligating KBC Bank to issue a letter of <br /> credit to the City of Redwood City relating to the City Hall bond issue. (100) <br /> Following Council Member Claire's review of the Report dated August 17, <br /> 1998, he responded to questions from other Council Members. He felt there <br /> was little chance the City would forfeit the $27,000 or less to pay the bank's <br /> legal fees and stated that this bond issue was not brought forward before <br /> because the Investment Committee is conservative and previous numbers were <br /> not as good. <br /> MIS: Hartnett, Ruskin, to authorize the City Manager to accept the terms <br /> outlined in a commitment letter prepared by KBC Bank that obligates KBC <br /> Bank to issue a letter of credit to the City. <br /> MINUTE ORDER NO. 98-220 <br /> Council Member Leipzig said he will vote against the motion. Taking out a <br /> City Hall mortgage is a mistake and not sound, conservative planning. He <br /> feels it was dishonest to state the City was not going into debt for a new City <br /> Hall and now to put the taxpayer in debt. <br /> Council Member Claire pointed out that the process will benefit the citizens <br /> and generate funds for years to come. <br /> Council Member Leipzig felt this was a time when practices from the private <br /> sector do not apply as this is the use of public funds. When most people buy a <br /> home, the goal is to payoff the mortgage. <br /> Council Member Hartnett said the proposal is not the same as a home <br /> mortgage. There will be a positive cash flow to the City. <br /> Council Member Ira felt City Hall should not have been paid for by cash and <br /> this would remedy the situation. <br /> Council Member Bain agreed and cited this as an example of how <br /> government could be run like a business. <br /> The motion was adopted by roll call vote with Council Member Leipzig <br /> dissenting. <br /> ------------------------------------------------------------------------------------------------------------- <br /> 6. MATTERS OF COUNCIL INTEREST <br /> Vice Mayor Ruskin announced that Marilyn B. Williams has been appointed <br /> Special Project Coordinator to help with the problem of flooding in Redwood City. <br /> She has a one-year contract starting August 24,1998. <br /> MEMO 8/18/98 <br /> MlNU1ES HUUKNU. 57 <br /> REUULAR MEEllNU AUUUSI 1/, 199M <br /> MINUTES Page No. 116 PAGE 6 <br />