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AMENDMENT ONE TO HOUSING ASSISTANCE AGREEMENT
BETWEEN THE CITY OF SUNNYVALE
AND KENT STEFFENS
THIS FIRST AMENDMENT TO THE HOUSING ASSISTANCE AGREEMENT is entered into this _____ day of ____ 2024, by THE CITY COUNCIL OF THE CITY OF SUNNYVALE (“City Council”) and KENT STEFFENS (“Employee”).
WHEREAS, on June 28, 2012, the City Council and Employee entered into a Housing Assistance Agreement (the “Agreement”) that provided for a home loan to Employee consistent with the terms of City’s Executive Mortgage Assistance Program (the “Program”), which loan has remained in good standing for the duration of his employment; and WHEREAS, since the parties entered into the Agreement, Employee has been promoted from Public Works Director to Assistant City Manager and City Manager in 2018, and as City Manager, Employee now negotiates directly with the City Council regarding his compensation; and
WHEREAS, in December 2023, the City Council approved certain changes and increases to Employee’s compensation, including the option to amend terms of Employee’s Housing Assistance Agreement; and
WHEREAS, on February 6, 2024, the City Council approved a resolution creating an exception to the Program’s six-month repayment requirement for Employee, allowing a longer repayment period for Employee’s loan.
NOW, THEREFORE, the parties agree to amend the Agreement as follows:
1. Section 3(F) (Loan due on sale, on employment termination) is hereby amended to read as follows:
F. Loan due on sale, on employment termination. The loan and the benefits of the terms of the loan shall not be transferred or assumed and are conditioned on the future continued performance of substantial services by Steffens. The loan obtained by Steffens, in accordance with this Agreement, shall become due and payable upon sale or other transfer of the purchased residence in whole or in part. In this respect, Steffens acknowledges the holding in Wellenkamp v. Bank of America (1978) 21 Cal.3d 943 (a copy of which is attached hereto as Exhibit "B"); and agrees that this loan shall not be assumable by any subsequent buyer, in that it is negotiated as a part of Steffens's compensation in connection with Steffens assuming the position of Public Works Director; that the payroll deduction provisions for loan repayment act as security for the benefit of the Attachment 3
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City; and that the general aspects of Steffens's relationship with the City indicate that the loan is fashioned for Steffens alone.
Further, it is agreed that the loan shall be payable in full at the earliest occurrence of the following scenarios:
(a) From the date of Steffens’ separation from employment, the number of months equal to the number of his full years of service with the City based on his original hire date of August 1, 2011. For example:
Separation Date
Between:
Repayment Date:
8/1/2023- 7/31/2024 12 months from separation
8/1/2024- 7/31/2025 13 months from separation
8/1/2025- 7/31/2026 14 months from separation
8/1/2026- 7/31/2027 15 months from separation
or;
(b) Within six (6) months from the date of termination of the use of the subject property as the principal residence of Steffens; or
(c) Within one year of the date of Steffens’ retirement for disability or his death.
4. All the terms and conditions of the Agreement not specifically modified by this Amendment remain in full force and effect.
WITNESS THE EXECUTION HEREOF, on the day and year first written above.
CITY OF SUNNYVALE
By _______________________________
Mayor
Dated:____________________
EMPLOYEE
____________________________________
KENT STEFFENS
Attachment 3
T-HRD-160168.001/71455 3
Dated:____________________
ATTEST:
__________________________________
CITY CLERK
APPROVED AS TO FORM:
__________________________________
SR. ASSISTANT CITY ATTORNEY
Attachment 3