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Home My WebLink AboutCC Resolution 7173 (Home Loan Agreement)RESOLUTION NO. 7173 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 TED A. GAEBLER re Home Loan Agreement ($190,000 to be paid over fifteen (15) years) a copy of which is hereby attached and by this reference made a part hereof. I, JEANNE 111. LEONCINI, Clerk of the City of San Rafael, hereby ' certify that the foregoing resolution was duly and regularly intro- duced and adopted at a Reqular meeting of the City Council of said City held on Mondav the Nineteenth day of August 19 85 , by the following vote, to wit: AYES: COUNCILME'.1BERS:Breiner, Frugoli, Nave, Russom & Mayor Mulryan NOES: COUNCILME31BERS : None ABSENT: COUNCILME,�!BERS : None JEANIV M. LEONCINI, City Clerk 4�IE8�� IL ➢�� 8-19-85 HOME LOAN AGREEMENT WHEREAS, the City of San Rafael has agreed to employ Ted A. Gaebler 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 Mr. Gaebler and his family to the City of San Rafael; and WHEREAS, it has been determined that the City will make available to Ted A. Gaebler the sum of $190,000 as a loan, to be secured by First Deed of Trust, for the purchase of real property to be used as his principal family residence. NOW, THEREFORE, IT IS AGREED that the City of San Rafael, hereinafter referred to as "City", shall loan to Ted A. Gaebler, hereinafter referred to as "Gaebler", the sum of $190,000 at an interest rate set forth hereinafter, to be used solely and exclusively for the acquisition of Gaebler's principal family residence, pursuant to the terms and conditions set forth hereinbelow. 1. City shall loan to Gaebler the sum of One Hundred Ninety Thousand Dollars ($190,000.00). 2. Gaebler shall repay City the principal sum together with interest at the rate set forth in paragraph 3 hereinbelow, said payments to consist of interest only on the outstanding principal for a period of fifteen (15) years. Interest payments shall commence on October 1, 1985, and continue monthly thereafter for a period of fifteen (15) years through September 1, 2000, at which time the entire then outstanding principal balance, together with all accrued interest, shall be due and payable in full. 8-19-85 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 July 31, 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 July 31st. The initial interest rate to be charged Gaebler shall be 9.0% and shall remain in effect through July 30, 1986; on July 31, 1986, and on each July 31st following, the interest rate charged to Gaebler 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 10.0% or more, then the interest rate charged to Gaebler 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 July 31st average yield calculation shall have been made; alternatively, if the monthly yield of City's investment portfolio shall have decreased to 8.0% or lower, then the interest rate charged to Gaebler 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 July 31st 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 Gaebler. 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 Gaebler and his family. The initial residence to be acquired by Gaebler is that certain real property located at 61 Graceland Drive, San Rafael, California. -2- 8-19-85 Should Gaebler choose to relocate his principal family residence at some future time, a new loan and note shall be negotiated. 5. Prior to receiving the proceeds of this Note, Gaebler shall provide to City, for the 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 in an amount equal to at least 100 percent of the principal amount of this loan; b. A policy of title insurance or other acceptable evidence that Gaebler will be obtaining a clear title to the subject property; C. Evidence that Gaebler 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. Gaebler 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 as its exclusive representative to collect the note and administer the loan, provided that it shall first give written notice of said designation to Gaebler. B. Gaebler shall be 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. 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: -3- 8-19-85 a. The termination of Gaebler's employment with the City, for any reason whatsoever; b. The death of Gaebler; C. Determination by Gaebler not to occupy the subject real property as his principal place of residence; d. The physical or mental incapacity of Gaebler such as to render him unable to perform his work for City for a period of six (6) consecutive months. 10. In furtherance of paragraph 9(b), Gaebler agrees, during the entire term of this Note, that he 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 his death; and further agrees to pledge the proceeds from the term life insurance policy provided by City to Gaebler as and for security for this condition. In the event that said term life insurance is insufficient to cover the requirements of this paragraph, Gaebler 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 requirements of this paragraph. Bonnie A. Gaebler does hereby covenant and agree to utilize so much of any life insurance proceeds received by her following the death of Gaebler necessary to pay in full the then outstanding principal and interest accrued owing in connection with the loan. 11. With regard to paragraph 9(c), it is further expressly understood and agreed by both Gaebler and his spouse that Gaebler 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 the terms and conditions of this Agreement to remain in full force and effect. 12. It is expressly understood and acknowledged that portions of this Agreement may have a potential impact on Gaebler's spouse's community property rights and it is therefore appropriate CE 8-19-85 and necessary that Bonnie A. Gaebler acknowledge and accept the terms of this Agreement by executing this Agreement as well. 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, 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 LAY E. MULRY Mayor ATTEST: JE NE M. LEONCINT, City Clerk TED A. GAEBLER .,, 01, 1 e- � " I, Bonnie A. Gaebler, certify that I am the spouse of Ted A. Gaebler, and I have read and approved all provisions of this Agreement and that I do hereby agree to accept said provisions even to the extent that they may impair or otherwise limit my community property interests in the subject property. Executed August 21 , 1985, at San Rafael, California. APP VED AS TO FORM: 7 zu" OUX4 / GARY T. RAGGHI N -5- TY City Attorney /T)nm,tu� 0- N O -.,J k.-/ BONNIE A. G7 MER (J