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04/27/2009 ORIGINAL RESOLUTION NO. 14933 INTER -FUND LOAN AGREEMENT (CEMEX Financing) RESOLUTION ESTABLISHING LOAN AGREEMENT AND TRANSFER OF THE SUM OF $2,500,000 FROM THE REDWOOD CITY SELF - INSURANCE TRUST FUND TO THE REDWOOD CITY CAPITAL OUTLAY FUND WHEREAS, the City desires to acquire the real property located at 1402 to 1450 Maple Street, Redwood City, California (the "CEMEX Property ") for the purchase price of $5,000,000; and WHEREAS, pursuant to Redwood City Municipal Code section 2.41.1, a special fund known as the Capital Outlay Fund has been established, and WHEREAS, while the Capital Outlay Fund has $2,500,000 of unappropriated fund balance that may be applied to the purchase price of the CEMEX Property, there is a temporary need for additional funds in the sum of $2,500,000 in order to cover the balance of funds needed to acquire the property; and WHEREAS, pursuant to Redwood City Municipal Code section 2.41.9, a special fund known as the Self- Insurance Trust Fund has been established; and WHEREAS, the Self- Insurance Trust Fund has sufficient funds to temporarily loan the sum of Two Million Five Hundred Thousand and No /100 ($2,500,000) to the Capital Outlay Fund, NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF REDWOOD CITY, AS FOLLOWS: 1. The sum of Two Million Five Hundred Thousand and No /100 ($2,500,000) from the current Redwood City Self- Insurance Trust Fund is hereby ordered transferred to the Redwood City Capital Outlay Fund, as a temporary loan for the above described purpose in accordance with the following terms: a. Said loan shall be for a term of three (3) years, commencing June 30, 2009 and expiring June 30, 2012; b. Interest shall be calculated on the outstanding balance of said loan calculated on the most recent quarterly interest rate published by the State of California Treasurer's Local Agency Investment Fund (LAIF). ATTY /RESO.1904 1 14933 042209 Muff # 304