HomeMy WebLinkAboutReso 6-1995-- RESOLUTION NO. 6-95
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION APPROVING A FOURTH AMENDMENT TO
THE EMPLOYMENT AGREEMENT BETWEEN JESUS ARMAS
AND THE CITY OF SOUTH SAN FRANCISCO.
WHEREAS, the City Council has received and is familiar with
the terms of the Fourth Amendment to the Employment Agreement
BetWeen Jesus Armas and the City of South San Francisco, a copy of
which is attached hereto as Attachment 1.
WHEREAS, the City Attorney has recommended approval of said
amendment.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City
of South San Francisco, that:
The Fourth Amendment to Employment Agreement between the Jesus
Armas and the City of South San Francisco, a copy of which is
attached hereto, is hereby approved.
I hereby certify that the foregoing Resolution was regularly
introduced and adopted by the City Council of the City of South San
Francisco at a requ]ar meeting held on the 22nd day of
February , 1995, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Councilmembers Jack Drago, Joseph A. Fernekes. John R. Penna,
R~h~.rta Cerri Teglia and Mayor Robert Yee
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ATTACHMENT 1
EXHIBIT TO RESOLUTION NO. 6-95
RECITALS
WHEREAS, on August 10, 1988, the City of South San Francisco
(hereafter "City"), acting through its City Council, and Jesus
Armas (hereafter "Armas") entered into an Employment Agreement
(hereafter "1988 Agreement"); and
WHEREAS, section 7 of the. 1988 Agreement provided, in
pertinent parts, that (1) the'City would assist Ar mas with his and
his family's relocation to South San Francisco by providing fifty
(50) percent of the amount needed to purchase a single-family
residence in South San Francisco in exchange for a fifty (50)
percent equity in the property, and (2) within six (6) months of
the time Armas ceased to be employed by the City that he would
either sell his interest to the City or put it on the open market
for sale to a third party; and
WHEREAS, the first modification to the 1988 Agreement,
approved on December 13, 1989, included Attachment i which, based.
on the closing escrow statement, established the City's and Armas'
separate portions of the down payment at one hundred eighty-one
thousand eight hundred fiVe and 84/100 dollars ($181,805.84); and
WHEREAS, copies of the escrow records which the City currently
possesses and which are associated with the purchase of the 368
Conmur property indicate that Armas and his spouse, Virginia Duarte
Armas, funded their down payment through a loan from San Francisco
Federal Savings in the amount of two hundred thousand dollars
($200,000); and
WHEREAS, as part of his resignation from employment with the
City o.f South San Francisco, Armas and the City entered into a
third amendment to the 1988 Agreement (hereafter "Third Amendment")
dated January 27, 1993; and
WHEREAS, the Third Amendment provided, in pertinent part, that
"the parties agree that the six (6) month [property sale]
limitation may result in hardship to the Employee and economic loss
to the City"; and
WHEREAS, the Third Amendment also modified the requirement
that Armas sell hisinterest in the property within six months to
require, instead, that Armas sell his interest (including his
spouse's interest) prior to February 1, 1994; and
WHEREAS, the Third Amendment also established terms related
to maintenance and rental of the property during the period prior
to the sale of the property; and
WHEREAS, the parties hereto have been in discussions related
to the sale of the property since January 1994; and
1
WHEREAS, based on the most recent appraisal of the property,
the parties agree that it would not be in their respective
interests to sell the property at this time; and
WHEREAS, the parties desire to establish the terms pursuant
to which the property may be operated as rental property until such
time as the property is sold;
NOW, THEREFORE, THE PARTIES AGREE as follows:
1. Section 3, subsections (a), (b), (c), (d), (e), and (f)
of the Third Amendment, approved by City of South San Francisco
City Council Resolution 15-93 on January 27, 1993, are hereby
repealed;
2. Armas shall, not later than March 1, 1995, pay down the
outstanding principal loan amount of his and his spouse's loan
obligation to an amount not to exceed one hundred eighty-one
thousand eight hundred five and 84/100 dollars ($181,805.84).
Armas shall, not later than April 1, 1995, provide the City with
written verification from the lender that the principal loan amount
does not exceed one hundred eighty-one thousand eight hundred five
and 84/100 dollars ($181,805.84).;
3. Beginning on March 1, 1995, City and Armas shall each
receive fifty (50) percent of the gross rental proceeds generated
from renting the property at 368 Conmur Street in South San
Francisco.
4. City and Armas agree that Armas shall assume the role of
property manager subject to the terms set forth herein:
(a) The rental amount of said property shall be
established by mutual consent of Armas and the City Manager and
Shall be based on rental prices for similar properties in South San
Francisco.
(b) Armas shall collect the rent from the tenant and
shall transmit the City's share of said rent to the City not later
than the fifteenth day of each month. Armas shall also send the
City a listing of rental income and expenses, for the prior month,
not later than the fifteenth day of each month.
(c) Armas shall be responsible for the maintenance and
upkeep on the property until it is sold. Armas shall maintain the
property and improvements according to the standards in the'
neighborhood.
(d) The City and Armas shall each be responsible for and
pay fifty (50)' percent of all property insurance costs and costs
related to repair and maintenance of the property. As regards
r~pair and maintenance, Armas may approve any emergency repair or
maintenance item wherein the total cost or costs of such item or
items does not exceed two hundred fifty dollars ($250) in any
month. Emergency repairs are limited to repairs necessary for safe
habitation of the house, including structural, plumbing or
electrical repairs or other similar items for which the tenant
states that an immediate repair is necessary. In the event that
Armas approves any such emergency repair, he shall provide written
notice of that repair to the City Manager within forty-eight (4S)
hours of such repair.
Any other maintenance or repair item wherein the costs of such
item does not exceed five thousand dollars ($5,000), and any
emergency item which costs in excess of two hundred fifty dollars
($250), must receive prior written approval by Ar mas and the City
Manager. Any repair or maintenance item which costs more than five
thousand dollars ($5,000) must receive prior written approval of
Armas and the City Council. Property insurance purchased for the
subject property must (1) insure the entire value of the property
including improvements thereto, (2) be approved as to formby the
city Attorney, (3) name the City of South San Francisco and Ar mas
as equal insured parties, and (4) be based on the lowest cost of
two estimates provided by Armas, except in the event that after
reasonable efforts Armas is only able to obtain one estimate.
Assuming the City has approved any maintenance or repair activity
or insurance policy pursuant to this subsection, Armas may withhold
the City's share of the cost from the rent amount due to the City.
(e) Armas shall be responsible for advertising for and
selecting tenants. City and Armas shall each be responsible for
fifty (50) percent of such advertising costs.
(f) The rental agreement used by Armas when renting or
leasing the property shall be approved as to form by the City
Attorney.
5. Armas and City shall each be solely responsible for the
property taxes owed on their respective fifty (50) percent
interests. City shall immediately commence efforts to have any
property taxes attributable to its interest cancelled pursuant to
Revenue and Taxation Code section 5081, et seq.
6. Armas shall be solely responsible for all mortgage costs
associated with his and his spouse's existing loan obligation to
St. Paul Federal Bank for Savings (as assignee of the loan
originally made by San Francisco Federal Savings and Loan
Association). In the event that Armas fails to make a payment or
defaults in any way on said loan and City either pays the overdue
amount or cures the default, Armas shall, within thirty (30) days
of receipt of written notice of said curative action, repay the
city's costs incurred for said curative action.
3
7. Either party may, upon no less than ninety (90) days
written notice to the other party, elect to require that the
property be sold. If either party so elects, the parties shall
attempt to agree on a selling price. Assuming Armas and the city
do not agree on the appropriate selling price, an independent real
estate broker, selected by Armas and the City, shall be retained
to recommend a selling price. Such price shall be the selling
price for the property. If a bona-fide offer which is eqUal to or
exceeds the selling price is received, the parties will sell the
property.
8. In the event that either party commits a material breach
of this Agreement, and fails to cure said breach within thirty (30)
days of receiving written notice of said breach, the non-breaching
party may, in addition to any other remedies provided by law, elect
to have the property sold on the open market at a price agreed to
by the parties or, if no agreement is obtained, as set forth in
section 7 above.
9. City and Armas agree that the language related to "value
of improvements credited to Armas" in section (g) of the Third
Amendment and the credit that arises from that language applies
only if the City either purchases the property or the property is
sold on the open market to a third party.
10. City and Armas agree that, based on the receipts and
documentation provided by Armas to the City in a letter dated May
10, 1994, a copy of which including receipts is attached hereto as
Exhibit A,' the value of improvements referred to in section (g) of
the Third Amendment is eqUal to sixteen thousand nine hundred
fifty-two and 20/100 dollars ($16,952.20). City and Armas further
agree that the entertainment center and bookcase installed in the
living room in June 1989 and identified in the May 10, 1994, letter
referenced herein shall be excluded from the list of improvements
for which reimbursement may be available pursuant to paragraph 9
herein. Armas and City further agree that upon sale of the
property, Armas may either remove the entertainment center and
bookcase or sale it to the prospective buyer.
11. City and Armas agree that either party may purchase the
other party's interest in the real property at a price that is
determined by the selling party and agreed to by the purchasing
party.
12. This Agreement supersedes all prior Agreements between
City and Armas with respect to the subject matters contained herein
and may only be modified by a written document executed by the
parties.
Executed: February , 1995
Mayor of South
San Francisco
Jesus Armas
Attest:
Virginia Duarte Armas
City Clerk
Approved as to Form:
City Attorney
(Agree#2)A:\armasfin.f16
5
..~
EXHIBIT A
-May 10, 1994
Mr. Richard James Chio~a
Assistant City A~orney
City of South San Francisco
P.O. Box 711
South San Francisco. CA 94083
Dear Dick:
CITY ATTORNEY
HAY 1 1 199
This is reference to your letter dated May 2, in which you address a variety of matters
related to the property at 368 Contour in South City. As we discussed, ! am agreeable to
obtaining the referenced title insurance policy, and to establishing an escrow account as noted
in your letter. Accordingly, enclosed herewith is a check in the amount of $766 to cover the cost
of proceeding along these lines and to cover the related expenses itemized in your letter.
I also want to take this opportunity to comply with a provision of the last amendment to
my employment agreement in which I agreed to advise the City of total income and expenses
associated with the rental of the property. During the period of March through December 1993, {
received a total of $11,250 in rental income (the property was vacant in November and
December). During this is same time period, I incurred expenses of $307 for miscellaneous
repairs, $588 in newspaper ad costs, $355 in fire insurance, $3,636 in property taxes (prorated
to cover the ten-month rental period) and $12,960 in mortgage payments (prorated).
In our previous conversations, I indicated I made improvements to the property totalling
$10,000. I must admit t presented this figure based on a rough recollection of what was spent
on the property and not as a result ot:'~ carefuJ review o¢ our records, in preparation For entering
into a loan agreement with the City, I took time to perform a review of our documents and
discovered the actual amount is $17,905. I am enclosing documentation to support t~his figure,
but want to note here it consists of the-following:
1. Refinish hardwood floors ' $1,330.
2. Fencing along side yard: $480.
3. Install new shutters in living room, dining room: $3,126.~-' (.
4. Replace windows in-place in bedrooms, family room and baths for insulation:
5. Install new living room window and dining room sliding door:S3,624. ~: $~¢_¢ ~;~
6. Replace iron railing and bannister with wood version: $3,100.
7. Install entertainment center and bookcase in living room: $952 ~: ~Jo-r
.8. Install new cabinets in kitchen: $1,674. f,, i~L¢-~l.
I think you will see that the documentation is generally self explanatory. However, if this
is not the case after you review the material, please let me and I will endeavor to clarify it.
Finally, in closing let me note I very much appreciate your assistance in this matter.
Very truly yours,
SAN FRANCISCO SHUTTER CO.
200 South Spruce Avenue Unit 6
SO. SAN FRANCISCO, CALIFORNIA 94080
(415) 588-8357
SOLD BY CASH
C.On. CHARGE ! GN ACCT. .MDSE. RETO.~ P~,ID OUT
DESCRIPTION I PRIC-----
AMOUNT
TAX
TOTAL
1347
All claims and returned goods
MUST be accompanied by this Dill.
Remodeling
Fences .
TO
STATEMENT
1011 WASHINGTON STREET - COUdA. CALIFORNIA 94015. · PHONE756-02~4
Room Additions
New Homes
AMOUNT
BALANCE DUE ON YOUR ACCOUNT
PELLA SALES COMP."
# 1 TUBBS STREET
SAN FRANCISCO, CA 94107
(415) 648-8600 FAX (415) 648-7983
:1 No.
TO
~AS. JESUS
368 CDNMUR STREET
SOUTH SAN FRANCISCO.CA 94080
SHIP
TO ARMAS. J~SUS
PHONE: (415)877-0G43
368 CON~U~ ST2EET
SOUTH SAN FRANCISCO3, CA 9~0~0
THANK YOU FOR CHOOSING PELLA
0 08
0 08
0 O~
0 CC3-ASS~BLY
i 0 ,XO38FSW
',SEND i-3/32' JAflB EXT~ LOOSE
EURNISH I-~ANDLES
LDWE DG?'S ERO~ iOWA
30~4-4254-30~4CC
~Hi~E DG?~ NON
NO RETURNS WITHOUT OUR PERMISSION
RETURNED ITEMS ARE SUBJECT TO
CANCELLAllON CHARGE
TT( 4EY'S FEES AND COSTS - Buyer agrees to pay Seller reasonaDte attorney's
es d al~ costs and other expenses incurred by Seller in securing, collecting, or
mpromising any claim by Seller against Buyer hereunder, including attorney's fees and
expenses reasonably necessary to secure ancl enforce Seller's Mechanic's lien and
:p notice rights and to ~rosecute any legal action with respect to any such claim.
(2/88)
CUSTOMER COPY
2627.95
.opo al
GAUL ,AND GNS
GENERAL CONTRACTORS
~URLINGAME. ~L:FORNtA 94010
(415) 3~-!634
-~ ~SAL SUBMITTED TO
CITY. STA~ AND ZIP
ARCHI~ I ~TE OF ~HS
I
We hereby su~mit s~cifi~tions and ~timates for:
PHONE
JOB NAME
JOB- LOCATION
JOB PHONE
ropose
~yment to ~e mede es follows: ' ~.~'
~1 matedal is ~amn~ to ~ as s~ifi~. All ~tk to be comglet~ in a ~manlike ~ ~ ~ ~
m,nner ,=,in, to ~ndard pm~c,~ Any a~e,tion or a.i,tion from .~ s,ifica- ~ut~o~~/
S~ nature ~ / 4/ ~ ~ ~
tions in~tvin~ ~ ~s~ will be ex.urN only u~. w~en o~e~, and will b~me an g t ~ '/.~ ~ ~
~ cha~e ~er and a~ve the ~timate. All ~r~mefl~ contingent upon ~ikes, accidefl~ ~ / ~
~ela~ b~o~ our control· ~ner to ca~ tim. ~mado and other n~es~ insu~nce. ~ Note: ~pm~sal may be
Jr ~rkem are ~1~ covered by Wo~men's ~m~n~tion Insurance. withdrawn by us if not accedt~ within
hereby to furnish material and labor -- complete in accordance with above specifications, for the sum of:
).
and conditions are satisfactory and are herel~y accepted. You are authorized
tO do the work as specified. Payment will be made as outlined above.
Signature
Signature
Date of Acceptance:
clays.
1-24/244
1210(8~
PAY TO THE'~RDE~ OF ~,'~
{ ')'u',,.0., -.'".-.F't~Ot.x~
JESUS ARMAS
PH. 415-877.43643 --_ .. '.
368 CONMUR S"I':~' '" .. ' -%
SOU'D-{' SAN FRANCISCO, CA 94~80
MEMO - ', '.v
-~: ~ 2 ~O00 2hSd:& ~O
1,5'
630
DOLL~$
,,'DODO 1, OOOO0,,'
SOLD TO
JOB LOCATION
Phone 586-6420
2555 GENEVA AVENUE
IZ~lly City. CA 94014
E. ~. BROWN
1011 Wn~h~ngton Street
Colma, CA 94015
368n Contour gr.
INVOICE
CUSTOMER'S ORDER
12337
DATE
5-30-89
TERMS
AMOUNT
Wall
· DESCRIPTION
cabinetwith Libe~y doors
60" X 27" X 12" deed
66~,,~ v.. 39%" X ~"_ hick
UNIT
tax
.56m.
109.5
1,674.
MARSH FENCE & DECK CO.
P.O. Box 937
SAN :~RUNO, CA 9406~
Call Jo~n (415) 571.1530
Lic. ~,.377047
.... ~ ~.~- ~ ~ ~
~at~~ro~nae~rouno U,,~ TAX
TOTAL
All claims and goods
MUSTbeaccom~.ied bythis bill.
~OOUCT 6t~3. 4 ~ ~ ~, ~