1981-0708_JULIAN, STEPHEN B._Housing AgreementHOUSING AGREEMENT
This AGREEMENT, made and entered into this day of
1981, by and between the City of San Juan
Capistrano% State of California, a municipal corporation, here-
inafter called "EMPLOYER," and STEPHEN B. JULIAN, City Manager,
hereinafter called "EMPLOYEE."
WITNESSETH:
WHEREAS, the City of San Juan Capistrano Municipal Code
requires the City Manager to reside within the City limits; and,
WHEREAS, the City derives a real value and is benefited by
requiring the residency of the EMPLOYEE in accommodations fitting
and suitable for the performance of his day-to-day duties and
responsibilities as.the City's Chief Operating Officer; and,
WHEREAS, EMPLOYEE in the conduct of his aforesaid duties
and responsibilities is required, from time to time, to use his
residence not only for the transaction of City business and affairs,
but for the maintenance of goodwill in the community; and,
WHEREAS, the City does accordingly enjoy and derive a real
value and benefit from EMPLOYEE'S residing in a suitable and
fitting home in the City of San Juan Capistrano;
NOW, THEREFORE, in consideration of the mutual covenants
herein contained, the parties hereto agree as follows:
1. This agreement is entered into pursuant to the pro-
visions of the Employment Agreement, Section 4(c), between
EMPLOYER and EMPLOYEE, dated June 9, 1981.
2. LOAN CONDITIONS
(a) Amount and Purpose of Loan
The principal amount of the loan shall not exceed
$250,000.00 and shall be used exclusively for
the purchase of an appropriate single family
dwelling unit, including appropriate improve-
ments to the dwelling unit and land thereof,
and other related expenses. Said dwelling unit
shall be located within the corporate limits of
the City of San Juan Capistrano.
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(b) Term
The term of this loan shall be for a period of
five (5) years, and may be extended for such
additional periods of time as the parties may
mutually agree.
(c) Interest Rate
The interest rate shall be equal to the average
rate of return earned on City investments. The
annual interest rate shall be established by
computing the average rate of return earned on
City investments for the period of March to
March of the year immediately preceding. The
annual interest rate so determined shall become
effective on July 1 of each year and shall
remain in effect throughout the fiscal year.
(d) Loan Repayment
(1) A monthly payment of not less than Eight
Hundred Dollars ($800.00) shall be required
of EMPLOYEE. Said payment shall be made
through payroll deduction and shall be
applied first to the interest and then to
the principal amount of the loan.
(2) EMPLOYEE may repay the principal amount of
the loan in whole or in part at any time
without penalty, and the annual amount of
interest due shall be adjusted accordingly.
(3) All principal and interest remaining and
unpaid shall be due and payable upon the
termination of this agreement, as herein-
after provided.
(e) Loan Security
The loan shall be secured by a Deed of Trust
executed in favor of the City of San Juan
Capistrano, a municipal corporation.
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(f) Title
Title to the property shall be vested in
Stephen B. and Robyn L. Julian, Husband and
Wife as Joint Tenants.
(g) Escrow Required
Proceeds of the loan shall not be disbursed
except through Escrow to be approved by the
City Attorney.
(h) Taxes and Assessments
EMPLOYEE shall be responsible for payment of all
taxes and assessments levied against said property.
(i) Residence Restrictions
EMPLOYEE is required
unit purchased under
of this agreement as
place of residence.
hibited from leasing
said dwelling to any
obtained the consent
to establish the dwelling
the terms and conditions
his principal and legal
Further, EMPLOYEE is pro -
any and all portions of
person without having first
of EMPLOYER.
(a) Notwithstanding anything herein contained to the
contrary, this agreement or any renewal or exten-
sion hereof may be terminated at any time by the
mutual consent of the parties hereto.
(b) This agreement shall be deemed terminated auto-
matically upon the occurrence of any of the
following events:
(1) Termination of employment relationship
between EMPLOYER and EMPLOYEE for any
reason.
(2) The death of EMPLOYEE or loss by EMPLOYEE
of his legal capacity.
(c) Upon termination of this agreement, EMPLOYEE or
his heirs shall be entitled to a period of time,
not to exceed six (6) months, to conclude such
financial or other arrangements necessary to
satisfy any unfulfilled terms of this agreement.
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4. NOTICES
Unless waived by the other party, any notices to be
provided by either party hereto to the other shall
be in writing, sent by U.S. Mail, postage prepaid,
registered, addressed as follows:
(a) NOTICE TO EMPLOYER
City Council of the City of San Juan Capistrano
Attention: City Clerk
32400 Paseo Adelanto
San Juan Capistrano, California 92675
(b) NOTICE TO EMPLOYEE
Stephen B. Julian
28121 Calle San Remo
San Juan Capistrano, California 92675
Change in the address of either party hereto shall
be notified by the latter to the other party in
writing sent by U.S. Mail, postage prepaid, registered,
addressed to such other party's address as last
notified to the notifying party.
5. ENTIRE AGREEMENT
This agreement supersedes any and all other agreements,
either oral or in writing, between the parties hereto
with respect to an Housing Agreement between EMPLOYER
and EMPLOYEE, and contains all the covenants and agree-
ments between the parties with respect to such agreement.
Any modifications to this agreement shall be effective
only if it is in writing signed by both parties hereto.
6. PARTIAL INVALIDITY
If any provision in this agreement is held by a court
of competent jurisdiction to be invalid, void or
unenforceable, the remaining provisions shall none-
theless continue in full force, without impairment.
7. ATTORNEY'S FEES AND COSTS
If any actions at law or in equity are necessary to
enforce or interpret the terms of this agreement, the
prevailing party shall be entitled to reasonable
attorney's fees, costs and necessary disbursements
in addition to any other relief to which he may be
entitled.
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Executed at San Juan Capistrano, California, on the day and
year first above written.
CITY OF SAN JUAN CAPISTRANO,
A Municipal Corporation,
EMPLOYER
By
PHIL P R. SCHWARTZE, Mayo
,51
STEPHEN B. JULIAN, Employee
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AGENDA ITEM July 7, 1981
TO: Honorable Mayor and City Council
FROM: Stephen B. Julian, City Manager
SUBJECT: Provision for Housing - City Manager
SITUATION:
The attached memorandum, prepared by then City Manager, James S.
Mocalis, addresses the conditions and need for assistance from
the City in securing suitable and appropriate housing for the new
City Manager.
ALTERNATE ACTIONS:
See attached memorandum.
RECOMMENDATION:
This is a matter for Council discretion.
Respectfully submitted,
SBJ:ch
Attachment
Lian
FOR CITY COUNCIL AGENDA ......
� 2J
AGENDA ITEM
0 0
RESUBMITTED July 7, 1981
June 16, 1981
TO: Honorable Mayor and City Council
FROM: James S. Mocalis, City Manager
SUBJECT: Provision for Housing - City Manager
SITUATION
When the City recently began the City Manager selection process,
the City Council was informed by the City's consultant that
the City would probably have to offer housing assistance to
the successful candidate. The cost of housing in the south
Orange County area is so high, in comparison with other parts
of the western United States, that many desirable City Manager
candidates would be precluded from considering competing for
the City Manager position if no housing assistance was offered.
Consequently, the prospective candidates were informed that the
City would offer some form of housing assistance to the successful
candidate. (It is unconstitutional to require residency as a
condition of employment, but it is obviously to the City's benefit
to have its Manager reside within the City.)
In negotiating conditions of employment, it became apparent
that housing assistance would be required by the new City Manager.
There are several ways in which such assistance can be offered.
Some of the types of assistance offered include offering a low
interest loan; advancing the down payment and a portion of the
principal; purchasing a dwelling and offering favorable lease
conditions; and jointly purchasing a dwelling with shared equity.
After examining these alternatives, the most desirable one,
from an economic return to the City, would involve the City
purchasing a dwelling and offering a lease back arrangement.
In this way, the City could reasonably expect to make an
appropriate return on the capital investment, and at the same
time, would retain greater control over its investment.
FINANCIAL CONSIDERATION
The amount of City financial involvement will depend upon which
of the housing alternatives is selected.
J/,
Provision for Housing - •
City Manager
June 16, 1981
Page 2
ALTERNATE ACTIONS
1. Determine the appropriate level of housing stock to be offered;
purchase a dwelling selected by the City Manager from such
stock; and offer a lease back agreement.
2. Let the City Manager select his own type and location of
dwelling and make available a low interest loan for the
down payment and a portion or all of the principal.
3. Jointly purchase a dwelling with shared equity.
RECOMMENDATION
Determine the appropriate level of housing stock to be offered;
purchase a dwelling selected by the City Manager from such
stock; and offer a lease back agreement.
espectfully submitted,
h�
James S. Mocalis
City Manager
JSM/nep