HomeMy WebLinkAboutCC Resolution 7413 (City Manager Home Loan Agr)RESOLUTION NO. 7413
A RESOLUTION AUTHORIZING THE SIGNING OF A
CONTRACT, LEASE OR AGREEMENT
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 contract, lease or agreement with
Pamela J. Nicolai, Citv Manager re Home Loan Aareement, located at
24 Minor Court ($180,000 to be paid over thirty (30) years, from
September 15, 1986 through gP.ntPTnhPr 15. gni r,.)
a copy of which is hereby attached and by this reference made a part
hereof.
I, JEANNE M. LEONCINI, Clerk of the City of San Rafael, hereby
certify that the foregoing resolution was duly and regularly intro-
duced and adopted at a Reaular meeting of the City Council of said
City held on Mondav the Eighteenth day of _Aig,c+-
19 86, by the following vote, to wit:
AYES: COUNCILMEMBERS: Breiner, Frugoli, Nave & Mayor Mulryan
NOES: COUNCILMEA413ERS: None
ABSENT: COUNCILMEMBERS: Russom
JE E M. LEONCINI, City Clerk
ORIGINAL
7 511_3
HOME LOAN AGREEMENT
WHEREAS, the City of San Rafael has agreed to employ
Pamela J. Nicolai as its City Manager, and
WHEREAS, it is necessary and appropriate to facilitate
the employment of the City Manager by aiding in the relocation
of her family to the City of San Rafael; and
WHEREAS, it has been determined that the City will
make available to Pamela J. Nicolai the sum of $180,000
as a loan, to be secured by First Deed of Trust, for the
purchase of real property to be used as her principal family
residence.
NOW, THEREFORE, IT IS AGREED that the City of San
Rafael, hereinafer referred to as "City", shall loan to
Pamela J. Nicolai, hereinafter referred to as "Nicolai",
the sum of $180,000 at an interest rate set forth hereinafter,
to be used solely and exclusively for the acquisition of
Nicolai's principal family residence, pursuant to the terms
and conditions set forth hereinbelow.
1. City shall loan to Nicolai the sum of One Hundred
Eighty Thousand Dollars ($180,000).
2. Nicolai shall repay City -the principal sum together
with interest at the rate set .forth in paragraph 3 hereinbelow,
said payments to consist of principal and interest for
a period of thirty (30) years. Principal and interest
payments shall commence on September 15, 1986,
and continue monthly thereafter for a period of thirty
(30) years through September 15, 2016.
3. It is intended that the interest rate to be paid
on this loan shall be equal to the average yield of the
City's investment portfolio, with the following exceptions:
1) The loan rate shall remain fixed between each August 15,
and shall only be adjustable annually; and 2) the interest
rate shall remain fixed unless the average yield on the
City's investment portfolio changes one full percent or
more as of each August 15th.
The initial interest rate to be charged shall be 7.70
and shall remain in effect through August 14, 1987; on
August 15, 1987, and on each August 15th following, the
interest rate charged to Nicolai shall be adjusted based
upon the then reported monthly yield of City's investment
portfolio. As an example, if the monthly yield of City's
investment portfolio shall have increased to 8.70 or more,
then the interest rate charged to Nicolai shall be adjusted
and increased to a sum equal to said rate of return, and
shall continue to be paid on the note until the next succeeding
August 15th average yield calculation shall have been made;
alternatively, if the monthly yield of City's investment
portfolio shall have decreased to 6.70 or lower, then the
interest rate charged to Nicolai shall be adjusted and
decreased to a sum equal to said rate of return, and shall
continue to be paid on the note until the next succeeding
August 15th average yield calculation shall have been made;
alternatively, if the interest .rate the City is earning
each July 31 has not increased or decreased by at least
one percent, then the existing rate shall continue for
the succeeding twelve months, and there shall be no adjustment
in the interest rate charged to Nicolai.
4. 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 Nicolai
and her family, located at 24 Minor Court, San Rafael,
California. Should Nicolai choose to relocate her principal
family residence at some future time, a new loan and note
shall be negotiated.
5. Prior to receiving the proceeds of this Note,
Nicolai 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
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in an amount equal to at least 118 percent of the
principal amount of this loan.
b. A policy of title insurance or other acceptable
evidence that Nicolai will be obtaining a clear title
to the subject property.
c. Evidence that Nicolai 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.
6. Nicolai may at any time pay all or a portion
of the principal amount of this Note without the imposition
of any prepayment penalty.
7. City may, at its sole option, designate a 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 Nicolai.
8. Nicolai shall be responsible for the payment of
all taxes and insurance applicable to the subject real
property at her own expense, and she shall, at her option,
make such payments directly, or through the City or its
designated Trustee or Administrator.
9. The Note and loan described herein is expressly
non -transferable and non -assumable. In addition to the
requirements of the Deed of Trust securing this Note, it
is further agreed that the principal plus all accrued interest
shall be due and payable in full twelve (12) months following
the first to occur of any of the following:
a. The termination of Nicolai's employment with
City, for any reason whatsoever.
b. The death of Nicolai.
C6 Determination by Nicolai not to occupy the
subjoct real property as her principal place of residence.
d. The physical or mental incapacity of Nicolai
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such as to render her unable to perform her work for
City for a period of six (6) consecutive months.
10. In furtherance of paragraph 9(b), Nicolai agrees,
during the entire term of this Note, that she shall maintain
in full force and effect adequate and sufficient life insurance
in an amount sufficient to pay off the outstanding balance,
principal and interest of the loan upon her death; and
further agrees to pledge the proceeds from the term life
insurance policy provided by City to Nicolai as and for
security for this condition. In the event that said term
life insurance is insufficient to cover the requirements
of this paragraph, Nicolai agrees to maintain such other
and further life insurance in full force and effect at
all times during the term of this Agreement so as -to fulfill
the obligations and requirments of this paragraph.
11. With regard to paragraph 9(c), it is further
expressly understood and agreed by Nicolai that Nicolai
herself must personally utilize the subject real property
as her principal place of residence at all times during
the term of this Agreement in order for the terms and conditions
of this Agreement to remain in full force and effect.
12. 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, 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.
ATTEST:
i E LEON ;I NI �'
City Clorh.
APPROVED AS TO FORM:
0,1,11 J�il 4P
ARy T RAGG YANTI
pity A Corney
PAMELA J. NICOLAI
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CITY OF SAN RAFAEL
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