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xx ACTIA AGENDA ITEM CC1G ME

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									                                                                                     ACTIA AGENDA ITEM #CC1G
                                                                                        MEETING DATE: 4/27/06




426 17th Street                                         MEMORANDUM
Suite 100
Oakland, CA 94612
                               ________________________________________________________________

Telephone:                      TO:           Authority Members
510/893-3347
                                FROM:         Christine Monsen, Executive Director
Facsimile:
510/893-6489                                  Anees Azad, Finance and Administration Manager

Webpage:                        DATE:         April 20, 2006
www.ACTIA2022.com
                                SUBJECT:      Advance on Program Payments for A. C. Transit

Roberta Cooper, Chair           SUMMARY
Mayor, City of Hayward             Under this memo, staff recommends approval to advance $25 million to
                                    A. C. Transit for short term financing of their cash flow deficit over the next
Alice Lai-Bitker, Vice-Chair
Supervisor, District 3              18 months.
                                   This loan will be made at the interest rate of ACTIA’s current yield on
Tom Bates                           investments (which was 4.8% in February 2006) plus 1% per annum, with
Mayor, City of Berkeley             future program payments as security and from funds available in ACTIA’s
Keith Carson                        cash reserves.
Supervisor, District 5
                                RECOMENDATION:
Henry Chang, Jr.                Staff recommends that the ALF Committee authorize the Executive Director to
Councilmember-At-Large,
City of Oakland
                                negotiate a short term loan agreement with A.C. Transit for the sum of $25
                                million, secured by the program payments, and structured in a manner that it
Mark Green                      does not negatively impact the capital projects or interest earnings of ACTIA.
Mayor, City of Union City
                                 This item was given concurrence at the Administration/Legislation/Finance
Scott Haggerty
Supervisor, District 1           Committee meeting on April 12, 2006.

Janet Lockhart                  DISCUSSION
Mayor, City of Dublin           A.C. Transit staff has initiated this proposal (see attached letter) with ACTIA staff
 Nate Miley
                                 regarding the feasibility of a short term loan to assist in financing operations
Supervisor, District 4           through a short period of deficit. If approved, ACTIA staff will structure this loan
                                 as an advance on program payments, with the program payments (about $20
Gail Steele                      million/year) as the security.
Supervisor, District 2

Shelia Young                     On the ACTIA cash status, at the end of March 2006 ACTIA had over $100
Mayor, City of San Leandro       million in capital and program reserves.

                                FISCAL IMPACT:
Christine Monsen
                                 The loan to A. C. Transit will function as an investment of ACTIA capital projects
Executive Director               reserves. The agreement is timed to have no impact on ACTIA capital projects
                                 and the interest rate will be pegged to ACTIA’s current yield on investments plus
                                 1% (about 5.8% total).


                                Attachments:
                                Request Letter from A. C. Transit dated March 10th, 2006

								
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