Resolution No. _____________________________

Board of Supervisors, County of San Mateo, State of California

* * * * * *

Resolution Authorizing Execution of Amendment No. 1 to the Agreement that Provides for a Loan to the Crystal Springs County Sanitation District from the County General Fund

______________________________________________________________

RESOLVED, by the Board of Supervisors of the County of San Mateo, State of California, that

WHEREAS, the Board of Supervisors is the Governing Board of the Crystal Springs County Sanitation District (District); and

WHEREAS, Section 4746.2 of the Health and Safety Code of the State of California provides that county sanitation districts may borrow money to guarantee the performance of its contractual obligations; and

WHEREAS, the Director of Public Works recommended that the District obtain a loan from the General Fund to finance the District’s obligations, with said loan to be repaid over a five (5) year period with interest from the revenue of the District; and

WHEREAS, the President of this Board of Supervisors was authorized and directed by Resolution No. 067664 to execute the Agreement entitled “Agreement for the Loan of $1,000,000 to the Crystal Springs Sanitation District from the General Fund of the County of San Mateo to Allow the District to Meet Its Current Financial Obligations to the Town of Hillsborough for the Improvement of Jointly Used Sewer Facilities” on the 15^th day of November 2005, for and on behalf of both the District and the County.

WHEREAS, based on the sewer service charge rates for the 2006-2007 fiscal year adopted by this Board on August 1, 2006, by Resolution No. 068197, the District will not receive sufficient revenue to repay the loan within the original terms of the Agreement; and

WHEREAS, there has been presented to this Board Amendment No. 1 to the Agreement stipulating an increase in the term of the loan from five (5) to seven (7) years and that payments from the District be “interest only” for those payments due on January 1, 2007, June 1, 2007, January 1, 2008, and June 1, 2008; and

WHEREAS, the Director of Public Works has recommended execution of said amendment; and

WHEREAS, this Board has reviewed and considered said Amendment No. 1 to the Agreement and the recommendation of the Director of Public Works, and concurs in the Director’s recommendation.

NOW THEREFORE, IT IS HEREBY DETERMINED AND ORDERED that:

The President of this Board of Supervisors be, and is hereby, authorized and directed to execute said Amendment No. 1 to the Agreement for and on behalf of both the District and the County and signature of the Clerk of this Board shall attest thereto.

* * * * * *