CC Resolution No. 8954
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RESOLUTION NO. 8954
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CUPERTINO AUTHORIZING EXECUTION OF FIRST
AMENDMENT TO AGREEMENT BETWEEN THE CITY OF
CUPERTINO AND DONALD BROWN REGARDING HOUSING
ASSISTANCE
WHEREAS, on March 6, 1989, the City of Cupertino and Donald Brown entered
into an agreement regarding housing assistance; and
WHEREAS, there has been presented to the City Council a First Amendment to
the Agreement; and
WHEREAS, the tenns, conditions and provisions of the agreement have been
reviewed and approved by the City Attorney.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Cupertino hereby approves the aforementioned First Amendment to Agreement and
authorizes the Mayor and City Clerk to execute said amendment on behalf of the City of
Cupertino.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino this 7th day of September, 1993 by the following vote:
Vote Members of the Qtt Council
AYES:
NOES:
ABSENT:
ABSTAIN:
Dean, Goldman, Koppel. Sorensen, Szabo
None
None
None
ATIEST:
APPROVED:
/s/ Kim M. Smith
City Clerk
/ s / Nick Szabo
Mayor, City of Cupertino
FIRST AMENDMENT TO AGREEMENT BETWEEN THE
CITY OF CUPERTINO AND DONALD BROWN REGARDING
HOUSING ASSISTANCE
This amendment to Agreement is executed this
day of
, 1993, by and between the City of
Cupertino, a municipal corporation, herein referred to
as City and Donald Brown who has been employed as City
Manager by City, hereinafter referred to as "Brown".
It is hereby agreed as follows:
A. Paragraph 3A(4) of the Agreement Between the
City of Cupertino and Donald Brown Regarding Housing
Assistance executed on t -1J:I day of ~ 1989
(hereinafter referred to as the Original Agreement) is
hereby amended to read:
4) A loan by City to Brown not to exceed
$239,000 to be used for the purchase of a
residence of Brown's choosing within the City of
Cupertino. Said residence shall be occupied by
Brown as his primary residence. Said loan is to
be evidenced by a promissory note in favor of City
secured by a first deed of trust encumbering the
residence. Said promissory note shall be for a
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term not to exceéd 30 years and shall bear
interest at the rate of ~ percent (f %) per
annum fixed and shall be payable in equal monthly
installments of principal and interest . . . .
B. Paragraph 3C(3) of the Original Agreement is
hereby amended to read:
3) Upon said sale, the parties shall receive the
amount of proceeds, after said loan above
described and all costs of sale are paid as
follows:
a) Brown shall be paid the sum of $25,000,
plus the ratio that that $25,000 bears to the
total sales price of the residence.
b) Brown shall also be paid the sum of
$5,000.00, plus the ratio that $5,000.00 bears
to the total sales price of the residence, for
each year, after ~ 1994, not exceeding
~ years, provided that Brown continues as
City Manager for the City of Cupertino during
said period.
c) After said payments above described are
made, in the event that the net proceeds are
equal to, or are less than, sums contributed
by the parties in cash at the time of purchase,
the parties shall share the proceeds in the
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same proportion as their original
contribution.
d) In the event that the proceeds are greater
than the sums contributed by the parties in
cash, then each party shall first be entitled
to receive the sum each originally contributed
in cash.
e) The balance, if any, is then divided
between the parties as follows:
i) City shall receive a percentage of the
balance based upon the ratio that its
original cash contribution described in
paragraph 3A5 of this Agreement, the
phrase "total cost of purchasing the
residence" means the purchase price plus
all costs directly associated with said
purchase, including, but not limited to,
brokerage fees, title fees, escrow fees,
and structural pest control and repair.
ii) Brown shall receive the remaining
percentage of said balance.
C. Paragraphs 3C(3)(d) and 3C(4) of the Original
Agreement are deleted.
o. Paragraph 8 is hereby added to the Original
Agreement to read as follows:
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8. Housing Relocation Expenses Upon
Termination of Brown as City Manager
A. In the event that Brown's employment
as City Manager is involuntarily terminated by
the City Council for any reason, other than
for cause, then in that event, in addition to
the provisions of this Agreement related to
termination generally, the City, in order to
defray Brown's housing relocation expenses
hereby agrees to pay Brown a cash payment
equal to six (6) months' aggregate salary.
Said cash payments may be paid, at the option
of Brown, in A) lump sum upon date of
termination, B) lump sum on January 1 of the
year following termination or C) six equal
monthly installments.
B. In the event the City, at any time
during Brown's employment reduces the salary
or other financial benefits of the City
Manager in a greater percentage than an
applicable across-the-board reduction for all
employees of the City, or in the event Brown
resigns following a suggestion, whether formal
or informal, by the City Council that he
resign, then in that event, Brown may, at his
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Dated:
Dated:
option be deemed to be "terminated," for
purposes of this Agreement.
C. As used herein the term "for cause"
shall mean only the following:
1) Death of Brown
2) The incapacity on Brown's part to
perform his duties as City Manager for a
period of ninety (90) consecutive days or
more.
3) Any wilful breach of duty by Brown
in the course and scope of his duties as City
Manager.
4) The habitual neglect by Brown of
his duties.
5) The wilful or permanent material
breach of any obligations contained in this
Agreement.
6) The conviction of Brown of any
felony involving moral turpitude.
CITY OF CUPERTINO
Nicolas Szabo, Mayor
Donald Brown
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I AGREE AND CONSENT TO
EACH OF THE PROVISIONS
OF THIS AGREEMENT.
Dated:
ATTEST
City Clerk
APPROVED AS TO FORM
CHARLES T. KILIAN, City
Attorney
[D1/B/D/A]
Cheryl Brown
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