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Home My WebLink AboutCC Resolution 9877 (Police Chief Home Loan)RESOLUTION NO. 9 8 7 7 A RESOLUTION AUTHORIZING THE SIGNING OF A HOME LOAN AGREEMENT WITH CAMERINO SANCHEZ, CITY POLICE CHIEF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL RESOLVES AS FOLLOWS: The Mayor and City Clerk are authorized to execute, on behalf of the City of San Rafael, a Home Loan Agreement with CAMERINO SANCHEZ, City Police Chief, located at 15 Dunfries Terrace, A.P. #016-181-10, ($400,000 to be paid over thirty (30) years, from September 1, 1997 through August 1, 2027). I, JEANNE M. LEONCINI, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a Regular meeting of the City Council of said City held on Monday, the 7`h day of July, 1997, by the following vote, to wit: AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips & Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None I en ft--) '. JEAMSTEM. LEO CINI, City Clerk ' 1 9 �� 1^n d �{ d�1 u. CITY OF SAN RAFAEL HOME LOAN AGREEMENT WEREAS, the City of San Rafael employed Camerino Sanchez as its Police Chief effective 2/17/97. WHEREAS, it is necessary and appropriate in connection with said employment of the Police Chief to aid in the relocation of his family to the City of San Rafael; and WHEREAS, the City has determined that it will make available to Camerino Sanchez a sum up to Four Hundred Thousand ($400,000) dollars as a loan, to be secured by a First Deed of Trust, for the purchase of residential real property located at 15 Dunfries Terrace in the City of San Rafael, for use as his principal family residence. NOW, THEREFORE, IT IS HEREBY AGREED that the City of San Rafael, hereinafter referred to as "City", agrees to loan to Camerino Sanchez, hereinafter referred to as "Sanchez", up to Four Hundred Thousand ($400,000) dollars at an interest rate set forth hereinafter, which said funds shall be used solely and exclusively for the acquisition of the Sanchez's principal family residence, above-described, pursuant to the terms and conditions set forth hereinafter. 1. City agrees to loan to Sanchez up to Four Hundred Thousand ($400,000) dollars to assist in the purchase of a single-family residence for Sanchez and his family which is located at 15 Dunfries Terrace in the City of San Rafael. The exact amount of the loan shall depend on the purchase price of the residence purchased by Sanchez, but in no event shall the sum exceed Four Hundred Thousand ($400,000) dollars. At the time of execution of this Agreement, City's agreement to loan up to $400,000 is premised upon Sanchez's intention to acquire the real property referred to above at a purchase price of $529,000.00. 2. Sanchez agrees to pay the full balance of the purchase price for said real property in excess of the loan proceeds provided by City hereunder. This balance of the purchase price shall come from a combination of Sanchez cash and loan proceeds, which said loan proceeds shall be subordinate to the security interest required by City to be perfected against said real property in connection with this Agreement. COPY 3. Sanchez shall repay City the principal sum together with interest thereon at the rate set forth in paragraph 4 herein, said payments to consist of principal and interest amortized over a period not to exceed thirty (30) years. Principal and interest payments shall commence at close of escrow in connection with purchase of a residence by Sanchez, and continue monthly thereafter for a period of thirty (30) years. All payments hereunder shall be made by automatic payroll deductions from Sanchez's salary. The principal owed on the loan proceeds funded hereunder by City shall be paid down by the sum of $50,000, three (3) years following close of escrow on the subject real property or upon close of escrow in connection with sale of the residential real property, whichever first occurs, owned by Sanchez and located at 1920 Parkview Circle, Hollister, California. 4. It is intended that the interest rate to be paid on this loan shall be variable, but always equal to the yield of the latest quarter -to -date LAIF rate earned by the City's investment portfolio, with the following exception: The loan rate shall remain fixed between each August -July, and shall only be adjustable annually, based on the then amount of quarterly LAIF rate earned by the City's investment portfolio. The initial interest rate to be charged shall be 5.56% and shall remain in effect through July 31, 1997; on August 1, 1997, and on each August 1 st following, the interest rate charged to Sanchez shall be adjusted based upon the then reported quarter -to -date LAIF rate on the City's investment portfolio. 5. It is expressly understood by the parties hereto that the loan proceeds shall be used exclusively for the purchase of a principal place of residence for Sanchez and his family, located at 15 Dunfries Terrace, San Rafael, California. Should Sanchez choose to relocate his principal family residence at some future date, all sums due and owing to City by Sanchez shall become immediately due and owing. 6, Prior to actual funding of the loan by City, Sanchez shall provide to City, for review and approval of the City Attorney, all of the following: A. A written appraisal from a City -approved appraiser, appraising the property to be acquired by Sanchez evidencing a fair market value of the subject real property of at least $529,000.00. B. A preliminary title report and commitment to provide a policy of title insurance indicating that Sanchez will be obtaining title to the subject property in a condition acceptable to City. 2 C. Evidence that Sanchez has obtained appropriate policies of insurance covering liability, fire and other required perils, covering the subject real property and the improvements thereon, or evidence that said policies of insurance shall be issued upon the close of escrow. 7. Sanchez may at any time pay all or a portion of the principal amount of this Note without the imposition of any prepayment penalty. 8. City may, at its sole option, designate an institutional or private Trustee or Administrator as its exclusive representative to collect the Note and administer the loan, provided that it shall first give written notice of said designation to Sanchez. 9. Sanchez shall be solely responsible for the payment of all taxes and insurance applicable to the subject real property at his own expense, and he shall, at his option, make such payments directly, or through the City or its designated Trustee or Administrator. Sanchez shall at all times while the loan is still outstanding, provide current evidence of payment of taxes and fire and other peril insurance sufficient in amount to adequately protect City's security interest. 10. The Note and loan described herein is expressly non -transferable and non -assumable. In addition to the requirements of the Deed of Trust securing the Note, it is further agreed that the principal plus all accrued interest shall be due and payable in full nine (9) months following the first to occur of any of the following: A. The termination of Sanchez's employment with City, for any reason whatsoever. B. The death of Sanchez. C. Determination by Sanchez not to occupy the subject real property as his principal place of residence. D. The physical or mental incapacity of Sanchez such as to render him unable to perform his work for City for a period of six (6) consecutive months. 11. In furtherance of the provisions of paragraph 10(B), Sanchez agrees, during the entire term of this Note, that he shall maintain in full force and effect a policy of term life insurance in an amount sufficient to pay off the 3 outstanding balance, principal and interest of the loan upon his death; in connection herewith, Sanchez agrees to provide City with a copy of such policy or a statement from his insurer evidencing the existence of said policy in full force and effect. Failure to maintain said policy of insurance in full force and effect shall be considered an event of default under the Note entitling City to accelerate payment of all sums then remaining owed on such Note. 12. With regard to paragraph 10(C), it is further expressly understood and agreed by Sanchez that Sanchez himself must personally utilize the subject real property as his principal place of residence at all times during the term of this Agreement in order for this Agreement to remain in full force and effect. Failure to so utilize the subject real property shall be considered an event of default under the Note entitling City to accelerate payment of all sums then remaining owed on said Note. 13. Any dispute between the parties concerning the terms or provisions of this Agreement shall be determined by binding arbitration conducted by a single arbitrator agreed upon by the parties; or, failing agreement on selection of an arbitrator, by an arbitrator appointed by the presiding judge of the Marin County Superior Court or his/her designee. The arbitrator appointed shall be empowered to award the prevailing party their reasonable attorney's fees and costs. CITY OF SAN RAFAEL Dated: W'O, �ALBEF�T J.ayor Dated: CAMERINO SANCHEZ, Police Chief 0 I, Olivia Sanchez, do hereby consent and agree to the terms and provisions of this Agreement. Dated: ATTEST: AANNE M. LEONCINI City Clerk APPROVED AS TO FORM: GARY T. RAGGHIANTI City Attorney OLIVIA SANCHEZ, (Spouse) 5