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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 Nnn~ Nnn~ Nnn~ \wpa%mn~.A4OS\a~n~.f08 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 ~ ~ ~, ~