1995 JT SPE MIN MAR 28 - Laserfiche WebLink

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Special Counsel Sabo said his preference is that the matter of the $1.9 million be documented, before moving to any subsequent action. Special Counsel Sabo recommended that a sentence be added to tonight's resolution which go back and modify last week's resolutions to delete the lines of text discussed. Discussion followed on how best to proceed to amend the City Council and RDA resolutions. Moved by Mayor/Member Fulp, seconded by Counc i 1person /Member Bennett, to reconsider Resolution No. R-22-95. Motion carried by unanimous vote. Moved by Mayor/Member Fulp, seconded by Councilperson/Member Bennett, to delete Section 2, of Resolution R-22-95. Motion carried by unanimous vote. City Attorney/General Counsel Biggs stated the Mayor needed to sign the previous resolution and to hand it to the City Clerk. Mayor/Member Fulp signed Resolution No. R-22-95 and handed it to the City Clerk. Mayor/Member Fulp said by action on March 21, 1995 the RDA loaned to the City $1.9 million and by tonight's action on RDA Resolution No. 659, it will loan an additional 302,000. Director Gabriel stated that was correct. Mayor/Member Pulp asked if there was payment schedule and asked the percent of interest for this loan. He asked what plan the City had presented to the Agency regarding its ability to make repayment by the due date of June 30, 1996. Director Gabriel said staff has not worked on such a plan; however, the plan can be prepared and presented to both the Council and the RDA. Mayor/Member Fulp stated in 1992, the RDA borrowed $600,000 from the Electric Utility and this loan is part of the $1.9 million, and he asked what action is required to secure this loan. Director Gabriel responded that there is a loan agreement on record between the Redevelopment Agency and the Electric Utility Enterprise. Director Gabriel said the reason it was not included in the $1.9 million documentation is that the Electric Utility is a separate enterprise account. Mayor/Member Fulp said there is a payment on the Community Center due and asked if payment has been or will be made. City Manager/ Executive Director Martinez responded that staff has been reviewing the request for payment, it is now going through the Finance Department and a check will be ready by Thursday or Monday. Mayor/Member Fulp said after tonight's transaction the RDA will be left with approximately $97,000 to conduct business. He asked how the RDA plans to operate if it continues making these loans. Director Gabriel responded that there is a continuing flow of funds into the - 3 - MAP, 0 71 1995