TO: Board of Supervisors
FROM: Sheryl L. Bratton, County Counsel
REPORT BY: Jennifer Palmer, Director of Housing & Homeless Services
SUBJECT: Promissory Note Loan Forgiveness
RECOMMENDATION
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Adopt a Resolution approving a scheduled partial loan forgiveness for the relocation incentive loan provided to the County Executive Officer, as set forth in the employment agreement, modifying terms of a prior resolution concerning interest accrual, and extending the term from 30 to 90 days for loan repayment in the event of early separation from employment. (Fiscal Impact: $15,000 Expense; General Fund; Budgeted; Mandatory)
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BACKGROUND
Napa County extended an employment contract, dated June 13, 2023, to Ryan John Alsop ("Borrower" or "Employee") to serve as the Napa County Executive Officer. The employment agreement includes a relocation incentive loan in the amount of Seventy-Five Thousand Dollars ($75,000) to assist with the acquisition of a personal residence in Napa County. Under Section 4.4.6 of the employment agreement, the loan would be interest free and would be forgivable each year in the amount of Fifteen Thousand Dollars ($15,000) per year for each year that Employee is employed by the County commencing from the anniversary of the loan closing date. Loan forgiveness is to be made through action of the Napa County Board of Supervisors for each year the Borrower is eligible for forgiveness. The loan shall be considered satisfied in full after five years from the effective date, provided Borrower is still employed with Napa County.
After the execution of the employment agreement, the Employee requested, and staff recommended, that the loan should accrue interest at the applicable federal rate. On July 25, 2023, the Board adopted Resolution No.2023-97, approving the relocation loan, plus interest at the applicable federal rate, to assist Employee with the acquisition of a personal residence in Napa County. Thereafter, Employee executed a Promisso...
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