HomeMy WebLinkAboutORD 3492• ORIGI~JAL
ORDINANCE NO. 3492
ORDINANCE OF THE COU~CIL OF THE CITY OF PALO ALTO
AMENDING THE 8UDGB'r r'OR THE FISCAL YEAR 1983-84 TO
ESTABLISH AND PROVIDE FUNDING F'OR CAPITAL IMPROVE
MEN'l' PROJECT NO. B3-26 "'DIRECTOR OF UTILITIES
HOUSING ASSISTANCE"
WHEREAS, pursuant to the provisions of Section 12 of Article III
of the Charter of the City of Palo Alto, the Council on June 27, 1983,
did adopt a budget for fiscal year 1983-84; and
WHBRBAS, the Council desires tc> provide assistance to the Director
of Utilities ill financing the purchase of a home in the local area;
NOW, THEREFORE, the Council of the City of Palo Alto does ORDAIN
as follows:
SECTION 1. Capital Improvement Project No-83-26 is hereby estab
lishE:d tor -t'!"ie Director of Utilities Housing A.ssistc:mce~
_SEC~rro~. 'l'he sum of One H\J.ndred E:ighty Thousand Dollars
( $18 0, 000) is appropriated to c.~pi tal lmprovemen t P1roj ect No. 8 3~~26
"Director of Utilities Housing Assistance~'~ a.nd the Heserve fot: Capit.al
Projects is correspondingly decreased.
SECTION 3. The Council finds that this is not a project under the
Cali(ornia Environmental Quality Act a.nd, therefore, no environmental
impact assessment is necessary.
SECTION 4. This ordinance shall become effective immediately as
provided in Section 12 of Article III of the Charter and Section
2.04.375 of the Palo A.lto Municipal Code.
INTRODUCED AND PASSED: December 5, 1983
AYES: Bechtel, Cobb, Eyerly, Fazzino, Fletcher, Klein~ Levy, Renze19
Witherspoon
NOES: None
ABSTENTIONS: None
ABSENT: None
APPROVED:
83/4-12
AGREEMENT BETWBEN RICHARD YOUNG AND
THE CITY OF PALO ALTO
RE::LA'riNG '1'0 GUARANTEE Or, SALES PRICE OF PROPERTY'
LOCATED A'r 29 55 GRACELAND WAY, GLENDALE, CALl FOHN IA,
M~D PRO'!ECT.ION AGAINSr DOUBLE HOUSE PAYMENTS
THIS AGR:t:EMEWr, made and executed this ~TJt day of December,
1983, by and between the CI'1'Y OF PALO AJ ... TO, a municipal corporation,
hereinafter referred to as ~ciTY,~ and RICHARD LEE YOUNG, hereinafter
referred to as nyouNGR,
WHEREAS, purusuant to CITY 1 s Relocation Benefits Policy, the City
Manager is authorized to offer prospective management employees a
benefit packa9e wh tch includes disposal and purchas~ costs, a bridge
loan, and/or third party ptlrchase of employee's residf:r:..::e; and
WHEREAS, the City Mdnager did offe~ to provid~ these benefits to
Riehard Young to be City Director ot Utilities; und
WHEREAS; the third party purchase benefit has proven to be
infeasible; and
WHEREAS, the p~rties have mut~ally agreed to substitute a
gudranteed sales price agreement, bridge loanr and double payment
protection instead of said third party purchase option.
NOW, THEREFORE, for and in consideration of their mutual promises,
the parties hereto mutually agree and covenant as follows:
1-Guaranteed Sales Price. Based on the average of two
independent appraisals of that certain real property known as 2955
Graceland Way, Glendale, California, and described more particularly in
Exhibit A, (•Property•) the CITY agrees to guarantee to YOUNG, at the
time YOUNG sells the Property, the amount by which the sum of Two
Hundred Fifty Thousand Dollars ( $250,000) exceeds the gross selling
price of the Property, if at all, including the value of all considera
tion flowing to YOUNG. Gress selling price, for the purposes of this
agreement.,. shall be the selling price of the Property agreed upon by
buyer and YOUNG without deduction or offset f.or real estate broker's
commissions, loan fees, taxes, assessmenta, 1 iens, encumbrances, and
other costs of sale customarily paid by sellers of residences of like
value in the location of the Property.
2. YOUNG agrees to ra).l:.~ and to lower the selling price of the
Property at the request of CITY and any seJ.l ing price must receive
prior written approval of the City Manager or his designee.
3. YOUNG agrees to execute any and all documents deemed neces-
sary by the CITY to carry out the intent and purposes of this agree
ment.
4.. Bouse Payaeat Protection. CITY agrees to pay, or. reim-
burse YOUNG for the payment of, the p~ incipal, interest, taxes, and
insurance accruing on the Property from the date of closing on the
purchase by YOUNG of a home in the San Francisco Bay Area until the
date of closing on the sale of the Property in Glendale in an amount
not to exceed Five Hundred Forty-three Dollars ($543) per month.
5. In the event that YOUNG is employed by CITY for less than one
(1) year, YOUNG agrees to cepay to CITY the prorated value of any sum
received by YOUNG pursuant to paragraphs 1 and 4 hereof, that is to say
the amount of money, if any, paid YOUNG under the Guaranteed Sales
Price e l a use plus tnt: total ,::tmoun t p-:d.d YOUNG under.:· Uw House Payments
Pt:·otection clau.ser both sum.s multiplied by a f:rdction, the numerator.
of which equals 365 minua the number of days YOUNG is employed by CITY
and the demoninator of which is 365.
'Dmlnlstrator---
.... 2-
PROMISSORY NOT£
$ ____ _ Palo Alto, C~lifornia
December , 1983
FOR VALUE RECEIVEDr t.he undersigned~ RICHARD LEE YOUNG and
KATHERINE LOUISE YOUNG, husband i3nd wife {"BORROWER~) hereby
promises to pay to the CITY OF PALO ALTO ( "CITYn} 1 o:r order 1 in
lawful money of the United States of ~nerica, the sum of
Doll a r:s actual .sum, not to exeed -One
Hundred Eighty Thousand-Dollars {Sl80f000.00) with principal
~nd interest to be paid as set forth below.
(a) The entire principal balance, without interest
thereon, shall be due and payable at the close uf escrow for
the sale of the res ide nee identified in Section 4 of t.his Note
or within ninety (90) days of the date set forth above, ~hich
ever is s~~ner. However, if RICHARD LBE YOUNG is an employee
of CITY and if escrow does not close for the sale of the resi
dence of BORROWE:R which is id~ntif ied in Section 4 o.f this
Note., the due date for the principal balam;.e of this Note may
be extended by CIT~ each month that such extension is deemed
necessary by the City Manager, until said escro~ is established
and closes ..
(b) If ti1e due date for the payment of the principal
balance of this Note is extended by CITY be}•ond ninety ( 90)
days of the date set forth above, as provided in Section l(a)
above, interest on the unpaid principal ~lance shall accrue as
follows from the date of the first extension until this Note is
paid in full:
Interest shall be equal to the annual average rate of
return earned on the CITY~s portfolio of investment!., as certi
fied by the CITY's independent auditors on the date this Note
is paid in full.
The rate of ~turn shall be calculated by the CITY on
an accrual basis and certified by the CITY's independent audi
tors in accordance with generally accepted accounting tech
n_iques., The average rate of return on the CIT¥' s portfolio of
investments shall be coaputed by dividirg the interest earned
during the . fiscal year by the average of the Treasury cash
balances shown in the CITY's accounting books at the end of
each month. BORROWER may review and utilize such documents as
he deems appropriate and necessary to verify the t·~te and to
assure that all items of Treasury's cash investments are in
cluded in ~he calculations. A copy of the CITY's calculations
..
with supporting source information certification shall L~ pro
vided to BORROi~ER, upor1 the written request of BORROWER, at
least two weeks prior to the due date of this Note.
2. Due .2E._Sale_Erovision. If the BOHROWER sh~.ll &ell,
convey or alienate the subject pro~erty or any part thereof, or
any interest therei.np or shaU be divested of his title or any
interest therein, eJ.ther by any t.ransfer, conve-yance, contract
of sale or in any manner '""hats;)~ver f wh0ther voluntcn·ily or
it1'JOluntaril~f", wit.[)out. t.he writt~:n (~()ns~nt <)t the l~~:Ti,. {:lTY
sha1l have the I:ightp at its (.Jpt.i<mr to declare this Note,
ir.respective of the due date Sf.H:~cifi(:O her!.::irJ,-immec\iat~aly due
and payable.
3. Pre2~~ment.
of this Note without
date of th~s Note.
BORROWER may prepay all or
pen a 1 t y , hH;1 or a. c c c l e r-a t ion
any
of
f.x:>rt ion
t.he due
4~ ~ecurit~. The indebtedness evidenced by this Note is
secured by a deed of trust on BORROWER's home at 29SS Gracel&nd
Way, Glendale, California 91206, which is furth(1r id.~ntified
in said deed of trust.
5. Def~u1t ~.Y~ORR..Q!!ER. The <'!ntire unpaid pr.incip.al
ba !a net} of this Note sha 11 ~ at the elect ion of the CITY, become
immed:i.ately due and payable upon the occurrence of any of· the
following:
(a) Any failure on ttH~ part of the BORROWER to JUke
any payment when the same is due.
(b) Any failure on the part of the BORROWER ( i) to
perform or observe any of its obl igatiom; under the deed Qf
trust securing this Note, and ( i i) to commence and · peooea.s
diligently to cure such default within fifteen (15) days after
written noti,:;::e thereof is given by CITY~ and in any .event to
cure such default within thirty ( 30} days after ~he date on
which such notice is given~
or con demna t ion of the . rea 1 .
' -' :
·, ..
-··,' '•·, ...
(c) The destruction
property subject to the deed of
thereof..
trust or any materi•i ·::~i()sj''.-;.-;;,-~.·· .:·2:'
·:-r: ~~.z:c::·:~.:~--3~~ ... -
(d) The filing by the BORROWER of a Y?l ... n~~-~~~~T~-:
t ion in bankruptcy, J!ll.rrangement or other re l1af . . .. _ ,__j; ~~·~ ·1:...::_f·:~t~7¥
National Bankruptcy Act, or· a voluntary petition -tor:---,~..-::~~Jt~~-..
pointment ot a receiver or for such other relief und~ ~?~-::c~~~~lf?:' ·
of the anj' State, or the making by BORROWER of an assion-nt: af.' ~~ . : ...
all or substantially all of its assets for t~ .O.n:nafi·t ... of ·. ·. ::~: ·
creditors. ·: ,;. · .·' .. • .. ~.··:, ··
,· ,. ~-!.-,. --~-· . ... _'.: .: • c ~ • • •
'•:;. ~ '• ._. ··~ . ·, ~
2 ..
---------~--------------------------
(e) The adjudication of BORROWER as a bankrupt or
i nsol vent, t.he appointment of a receiver of all or subs tan
tially all of BORROWER's assets if such adjudication, order, or
appointment is made upon a petition filed against BORROWER and
is not, within six.ty (60) days .-~fter. it is made, vacated or
stayed on appeal or otherwise, o~ if BORROWER by any action for
failure to act signifies its approval thereof, consent thereto
and acquiescence therein.
6. s:;_~!_!.~tion_S.2.~.ts BOC!I_e>:_. .. ~.Jl_or~<?,~~!::· In the event of
any failurs on the part of BORROWEH to make any payment:. when
t.he same is due, CITY shall be entitled to recover from BORROW-
ER all costs of effecting collection of the same, including
reasonable attorneys' fees and all costs of collection. Unpaid
principal and interest subject to collection shall bear :.nter-
est at the maximum rate allowed under California law tor
non-exempt lenders.
7. Termination. Tbe obl iqat ions of BORROWER her-eundec
shall · t:erminateupon-the earJ.ies.t of ( i) for~closure of the
lien of the deed of trust or mortgage securing this Notei or
( i i) cancellation of this Note and reconveyance of the deed of
trust securing same.
8. Governin2__~Law. This Note shall be enforced in
accordance with t.he laws of the State of California ,and shall
be construed in accordance therewith.
9. Successors. This Note shall be binding upon and
shall inure to the benefit of the parties heret.o and their
respective representatives~ heirs, administrators~ succ&S$Ors
and assigns except as oth~o,..:wise provided herein.
BORROWER has set his hand to this Note effective as of the
date set forth above.
3 ..
f~THERINE "LoUtSE YOUNG
(Spouse)
•
This docum~nt is recorded for the
benefit of the City of Palo Alto
and is entitled to be recorded free
of charge in accordance with Section
6103 of the Government Code AfterRec.oraation;·-Mai 1 To~ ·-·--
OfFICE Of 'fH8 C:tTX ATTIJRNEY
250 Hamilton Avenue
P.OQ Box 10250
Palo Altop California 94303
Dr;ED OF 'l'RUST
•
This DEED OF' TRUST is made thif> -~ day of December,
1983~ between the Trustor RICHARD LEE YOUNG and KATHERINE
LOUISE YOUNG, husband and wife ( "BORROWER•) and FIRST AM.ERICt\N
TITLE INSURANCE COMPANY, a Cal if or.nia corporat j.on ("'TRUSTEE")
and the CITY OF PALO ALTO i ~~:Bf;NEFICIARY") whose i:tddress is
at.;ve.
Trustor r to secure payment and performance of all of the
terms and conditions of Trustor's Promissory Note (•NOTE") of
this date and extensions thereof, for
in principal, grants, transfers and assigns to TRUSTEE in trust
with Power of Sale that real property located in the County of
Los Angeles~ State of California, commonly known as 2955 Grace
land Way., ·Glendale, California and mot'e particularly described
as Parcel s of Parcel Map Glendale No. l068A ~s per map record
ed in Book 23, Pay~ 21 of Parcel Maps, in the Office of the
Co~nty Recorder in ~s Ang~les County, toQether with the rent~,
· isa·ues, and profits thet·sot: t subjact however, t<J the ri·ght,
power and authority hereinafter Qiven and conferred upon BENE
FICIARY to collect and ~pply such rents, i:s.sues &nd profit&-.
If the Trustor sh~ ll se 11 f convey or alienate said prop
erty, or any part ther3of, or any irterest therein, or shall be
divested of his title or any interest there in in any manner or
way, whether voluntarily or involuntarily, without tbe written
consent of the BENEFICIARY being first had and obtain~d, BENE
FICIARY shall have the right, at its option, except as prohi~
bited by law, to declare any indebtedness or obliyattons
secured hereby, irt·~specti ve of the eturi ty date specified on
any note evidencing the same, iMmedi3te1y due and payable.
' ... ~"" ......... ...,..-.'
• •
To protect the security of this Deed of Trust, and with
respect to the property above described, TRUSTOR expressly
makes each and all of the agreements, and adopts and agrees to
perform and be bound by each and all of the terms and pro·vi
sions set forth in subdivision A, and it is mutually agreed
that each and all of the terms and provisions set forth in sub
division B of the fictitious deed of trust recorded in Orange
C('lunty August 17, 1964, a.nd in all other counties August 18,
1964 and in Book T-3878, Page 874 of Official Records in the
Office o:. County Recorder of Los Angeles County where said
property is located, shall inure to and bind the parties
heretor with respect to the property above described. Said ·
agreements, terms and provisions contained in said subdivision
A and B are incorporated herein by reference.
Trustor requests that a copy of any notice of default and
any notice of sale hereunder be mailed to him at 1007 East Rose
Circle, Los Altos, California 94022*
STATE OF CALIFORNIA
COUNTY OF SANTA CLARA
)
)
)
as:
Signature of Tru~tor
iA'THER I Nlfl.OufS'E"TouNG
(Spouse)
: · ..
. ,·
····-·. (•'.,
On __ , 1983, before me, a···~·otat~.-,Puf!1~~·· .. :· ..
in and for sa!d County and State" personally appeared ~RICHARD
LEE YOUNG and KATHERINE LOUISE YOUNG (Trustor), :knc)vri .~. -. (pr
proved to .DlE! on the basis of. satisf~ctory evidem~e) to /be ~~-;. ,:;·,··}~::1.:;:
persons who executed the with1n instrument.. · · · -· _,,,, .
........ ·-· .......... Notary Public
County
-.-,· ·,
•'·, .. ;.
2.
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