COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Counsel

 

DATE:

April 2, 2007

BOARD MEETING DATE:

April 10, 2007

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

 

TO:

Honorable Board of Supervisors

FROM:

Thomas F. Casey III, County Counsel

SUBJECT:

Resolution Amending Resolution Approving Housing Assistance Loan for Assistant County Manager David Boesch

 

RECOMMENDATION:

A)

Adopt a resolution:

 

1)

Amending Resolution No. 068565, which approved a housing assistance loan to David S. Boesch as consideration for his employment as Assistant County Manager

 

2)

Authorizing the County Manager to execute such documents as are necessary to consummate the loan, including, but not limited to a promissory note or notes and one or more deeds of trust

     

B)

Approve an Appropriation Transfer Request transferring an additional $10,006 from Non-Department Reserves to Loan to Other Funds/Agencies for the purpose of paying off the home loans provided by the City of Menlo Park.

 

VISION ALIGNMENT:

Commitment: Responsive, effective and collaborative government.

Goal 20: Government decisions are based on careful consideration of future impact rather than temporary relief or immediate gain.

 

BACKGROUND:

On February 27, 2007, the Board approved a housing assistance loan for David Boesch, the new Assistant County Manager, as part of the compensation package for Mr. Boesch. The approval authorized the payment of up to $1,489,843.74, representing the estimated payoff of similar housing loans that Mr. Boesch had received from the City of Menlo Park, his prior employer. Due to clerical errors, the amount needed to pay off the Menlo Park loans by March 31, 2007 was underestimated by about $10,000. As a result, the payoff of the loans could not proceed on March 31, as originally planned.

 

DISCUSSION:

The resolution presented for the Board’s consideration would amend Resolution No. 068565, adopted by the Board on February 27, 2007, to increase the amount authorized to pay off the Menlo Park loans to $1,499,850, the amount estimated to allow the transaction to be closed on or about April 13, 2007.

 

FISCAL IMPACT:

The fiscal impact to the County will depend on whether there is any significant change to the average pooled fund rate, which is the return the County receives on its pooled investments. Over the last ten years, that rate has varied from a yearly high of 5.92% to a yearly low of 2.82%, and the rate at the end of the second quarter of this year stood at 4.21%. Assuming that there are no significant changes in the pooled funds interest rate, the County should realize approximately the same return that the County would receive from its pooled earnings.