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. I I . . - them, where they did not have any public purpose associated with the project. Where the Woodside Terrace transaction differs is that Redwood City does have this project within - its political subdivision... and there is a public purpose... preserving a certain number of units for a minimum of 15 years for very low income individuals.... It is customary for public agencies to collect fees... to compensate staff, administering the transaction... as well as to compensate public agencies for any kind of risk they feel they bear." At 11:45 p.m. MIS: RUSKINIHARTNETT TO EXTEND THE MEETING TO MIDNIGHT. CARRIED BY THE FOLLOWING VOICE VOTE: AYES: COUNCIL MEMBERS CLAIRE, HARTNETT, IRA, RUSKIN AND MAYOR HOWARD NOES: COUNCIL MEMBER LEIPZIG MINUTE ORDER NO. 98-052 Mayor Howard called upon the members of the audience who wished to speak to this Issue. Ian Bain, 1405 Marshall, representing the Housing and Human Concerns Committee, and its Chair, said there were seven members of the HHCC present and they were very interested in this issue. Chairperson Bain said the fact that this issue did not first come to the HHCC was "symptomatic of communications throughout the City, between staff, between the Council, between our boards, committees and commissions." He said - fortunately he "would soon have the chance to address when I join you in a couple of weeks." Mr. Bain said the HHCC should at least be notified when matters involving housing issues come to the City or to the Council. Peter Hughes, 18 Admiralty Court, said he had owned businesses all his life and is currently on the Board of Casa de Redwood, which is similar to the Woodside Retirement Facility. He asked what is Redwood City's risk if the City issues the proposed bonds? He recommended that the Council slow the process down until further information could be submitted. Council Member Claire said the staff had done an excellent job in explaining the risk facing the City during its previous Council discussion of this subject. He said, "The risk that we would face would be in some way that our general obligation bond rating would drop because of this. Now if we were going to go back to the bond market in the future and this company defaulted on these revenue bonds, there is a very, very slight chance that our bond rating would be diminished slightly. But I don't think we are going back to the bond market, that would take a 2/3 majority vote by the citizens of Redwood City for a general obligation bond, and... I don't think we would get that vote. I think it is a moot point. Secondly, it is a revenue bond, and was explained to us when this first came before us, the individuals who rate bonds understand the nature of revenue bonds versus general obligation bonds, very well, and they would take that into consideration in the rating ~ process, and probably not downgrade us at all." REGULAR COUNCIL MEETING MINUTE BOOK NO. 56 FEBRUARY 9, 1998 MINUTES Page No. 271 PAGE 29