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Home My WebLink AboutCC Resolution 9616 (City Manager Home Loan Agreement)a RESOLUTION NO. 9 616 A RESOLUTION AUTHORIZING THE SIGNING OF A HOME LOAN AGREEMENT WITH ROD GOULD, CITY MANAGER 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 Rod Gould, City Manager, located at 28 Canyon Oak Drive, A.P. #165-131-05 ($392,040 to be paid over thirty (30) years, from September 1, 1996 through Auqust 1, 2026) I, JEANNE M. LEONCM, 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 3rd day of June, 1996, by the following vote, to wit: AYES: COUNCILMEMBERS: Cohen, Heller, Phillips and Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None ,...�..� ll, .,a,�.e JEANA M. LEONCIhII, City Clerk wpwin\city-clk\agenda\homeln.res ORIGINAL �b 00 CITY OF SAN RAFAEL HOME LOAN AGREEMENT WHEREAS, the City of San Rafael has entered into an Agreement to employ Rod Gould as its City Manager; and WHEREAS, it is necessary and appropriate to assist in facilitating the employment of the City Manager by aiding in the relocation of his family to the City of San Rafael; and WHEREAS, the City has determined that it will make available to Rod Gould 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 within the City of San Rafael, to be used as his principal family residence. NOW THEREFORE, IT IS HEREBY AGREED that the City of San Rafael, hereinafter referred to as "City", shall loan to Rod Gould, hereinafter referred to as "Gould", 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 Gould's principal family residence, pursuant to the terms and conditions set forth herein. 1. City agrees to loan to Gould up to four hundred thousand ($400,000) dollars to assist in the purchase of a single-family residence for Gould and his family which must be located in the City of San Rafael. The exact amount of the loan shall depend on the purchase price of the residence purchased by Gould, but in no event shall the sum exceed four hundred thousand ($400,000) dollars. 2. Gould agrees to pay ten (10%) percent of the purchase price of the home he acquires at time of close of escrow. 3. Gould 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 Gould, and continue monthly thereafter for a period of thirty ( 3 0 ) years. All payments hereunder shall be made by automatic payroll deduction from Gould's salary. 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 1 , WMI'MmI 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 5.53 % and shall remain in effect through Julv 31 1997 ; on Auaust 1. 1997 , and on each August lst following, the interest rate charged to Gould shall be adjusted based upon the then reported quarter -to -date LAIF rate on the City's investment portfolio. This rate shall continue for the succeeding twelve (12) months, and there shall be no adjustment in the interest rate charged to Gould. 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 Gould and his family, located at 28 Canyon Oak Drive , San Rafael, California. Should Gould choose to relocate his principal family residence at some future time, or fail to occupy the property as his principal place of residence, all sums due and owing to City by Gould shall become immediately due and owing and a new loan and Note shall be discussed between the parties. 6. Prior to actual funding of the loan by City, Gould 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 Gould in an amount equal to at least one hundred five (105%) percent of the principal amount of the loan. B. A preliminary title report and commitment to provide a policy of title insurance indicating that Gould will be obtaining title to the subject property in a condition acceptable to City. C. Evidence that Gould 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. Gould 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 Gould. 9. Gould 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. Gould 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 f irst to occur of any of the following: A. The termination of Gould's employment with City, for any reason whatsoever. B. The death of Gould. C. Determination by Gould not to occupy the subject real property as his principal place of residence. D. The physical or mental incapacity of Gould such as to render him unable to perform his work for City for a period of six (6) consecutive months. 11. Furtherance of paragraph 10(B), Gould 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 outstanding balance, principal and interest of the loan upon his death; in connection herewith, Gould 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. City agrees to reimburse Gould for all premium payments due under said policy of insurance. 12. With regard to paragraph 10(C), it is further expressly understood and agreed by Gould that Gould 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. 3 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. Dated: Dated: ✓ �"'''� ATTEST: J%E"NE M. LEONCINI City Clerk (home loan agreement 5-30-96) CITY OF SAN RAFAEL i�ALB 4.0RO, Mayor" --�ZD (s, 1-:9) ROD GOULD, City Manager APPROVED AS FORM: G,Jx x4ti, ( RY TV RAGGHIANTI City Attorney