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File Number: 18-391 <br />WHEREAS, in order to provide collateral for the Section 108 Loan, City staff recommends <br />restricting $190,635.20 (the “Restricted Amount”), an amount equal to one annual Section 108 <br />Loan debt service payment, in the General Fund Restricted Reserves as collateral for the Section <br />108 Loan Note; and <br />WHEREAS, the Restricted Amount must be restricted within the General Fund Reserves <br />until the Section 108 Loan is fully paid in August 2029; and <br />WHEREAS, in the unlikely event that the City is unable to otherwise meet its repayment <br />obligations during the term of the Section 108 Loan’s Note, the Restricted Amount would be <br />utilized to cover the deficiency. <br />NOW, THEREFORE IT IS RESOLVED by the City Council of the City of San Leandro that: <br />1. The above recitals are true, correct, and incorporated by reference into this Resolution. <br />2. The City Council hereby agrees to substitute collateral for the Section 108 Loan, such <br />that the City covenants that it will restrict One Hundred Ninety Thousand Six Hundred Thirty Five <br />Dollars and Twenty Cents ($190,635.20), an amount equal to one year’s debt service on the <br />Section 108 Loan, of the General Fund Restricted Reserves, until such time as the Section 108 <br />Loan is repaid in full. In the event that the City is unable to otherwise meet its repayment <br />obligations during the term of the Section 108 Loan’s Note, such funds would be utilized to cover <br />the deficiency. <br />4. The City Manager is authorized to execute any and all documents, in such form as <br />approved by the City Attorney, and to take such actions, as are necessary to effectuate the intent <br />and purpose of this Resolution. <br />5. This Resolution shall take effect and be in full force from the date of its adoption. <br />3001401.1 <br />Page 2 City of San Leandro Printed on 8/28/2018 <br />188