Laserfiche WebLink
City of San Leandro <br />Meeting Date: July 5, 2016 <br />Staff Report <br />Agenda Section:File Number:16-336 CONSENT CALENDAR <br />Agenda Number:8.K. <br />TO:City Council <br />FROM:Chris Zapata <br />City Manager <br />BY:David Baum <br />Finance Director <br />FINANCE REVIEW:David Baum <br />Finance Director <br />TITLE:Staff Report for a Resolution Authorizing the City Manager to Negotiate and <br />Execute an Amendment to the Loan Agreement (Amended Loan) with DSFRC <br />in an Amount not to Exceed $1.5 million <br />SUMMARY AND RECOMMENDATION <br />Staff recommends that the City Council authorize the City Manager to negotiate and execute <br />an amendment to the loan agreement (Amended Loan) with DSFRC to extend the repayment <br />of all remaining principal and interest from an initial loan maturity date of July 31, 2016 to a <br />date not to exceed October 31, 2016, subject to approval as to form by the City Attorney. The <br />loan is currently $1.5 million, with an interest rate that is not to exceed 4.5% per annum. <br />BACKGROUND <br />On June 16, 2014, the City Council approved a loan to DSFRC to fund the startup of a <br />Federally Qualified Health Center (FQHC). $1.5 million was transferred from the City to <br />DSFRC on August 1, 2014. The loan requires DSFRC to repay the City all remaining principal <br />and interest no later than July 31, 2016. DSFRC has made only monthly interest payments <br />since the loan was funded. DSFRC initially requested that the loan repayment term be <br />extended to December 31, 2017; the City Manager and DSFRC ultimately agreed upon <br />October 31, 2016, which the City Manager recommends that the City Council consider and <br />approve as the amended loan maturity date. <br />Throughout its 26 year history, DSFRC has responded to the needs of San Leandro’s most <br />vulnerable families. By providing services that allow families to survive and flourish, DSFRC <br />has become a key leader in guiding its client-families out of poverty and into productive lives. <br />In 2014, DSFRC added a full service primary health care clinic to its service matrix that <br />already includes child care, free acute medical care, mental health supportive services, family <br />and domestic abuse counseling, and emergency food, clothing, utilities and housing <br />assistance. <br />Page 1 City of San Leandro Printed on 6/28/2016