HomeMy WebLinkAbout2010-08-02 Ordinance 5091ORDINANCE NO.5091
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING THE BUDGET FOR FISCAL YEAR 2011 TO PROVIDE
APPROPRIATIONS OF $125,000 FROM THE GENERAL FUND BUDGET
STABILIZATION RESERVE FOR CAPITAL IMPROVEMENTS TO THE
CITY MANAGER'S HOME
The Council of the City of Palo Alto does ORDAIN as follows:
SECTION 1. The Council of the City of Palo Alto finds and
determines as follows:
A. Pursuant to the provisions of Section 12 of Article III
of the Charter of the City of Palo Alto, the Council on June 28,
2010 did adopt a budget for Fiscal Year 2011; and
B. In accordance with the City Manager's employment
agreement, the City is to provide up to $1,500,000 towards the
purchase of a home within the City of Palo Alto. The City will
also provide a $500,000 loan to the City Manager with a 30 year
term, with an interest rate of 5.5% or the sum of the City's
portfolio rate plus one-quarter percent, whichever is lower. The
City will share in the home's equity in proportion to the cost of
the home and the City's contribution; and
C. In March 2010, the City Manager purchased a home at 355
Webster Street, Palo Alto, CA, 94301. The purchase price totaled
$1,875,000. The City's equity share is $1,406,250 and City
Manager equity share is $468,750. The City Manager's loan
totaled $468,750, a 30 year term at the City's portfolio rate
plus one-quarter percent. The balance remaining of $125,000 was
returned to the Budget Stabilization Reserve; and
D. The City Manager's employment agreement also allows for
capital improvement to the home, per Section 6.7 of the
employment agreement; and
E. The City Manager plans a series of house improvements
at a total estimated cost of $250,000, and
F. Per approval of the City Manager's amended employment
agreement on August 2, 2010, the cost sharing for the planned
improvements will be made on a dollar for dollar matching basis,
with an equal equity contribution made by the City Manager; and
G. City Council authorization is needed to amend the
Fiscal Year 2011 budget to make an additional appropriation of
$125,000 (One Hundred Twenty Five Thousand Dollars) for the
City's contribution to costs associated with capital improvements
to the City Manager's home located at 355 Webster Street, Palo
Alto, CA, 94301.