Loading...
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 -2- 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 - 3. - 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 (Z �;_ 4 �6� & 9 � � ��. 4 CITY OF SAN RAFAEL -4- r'