HomeMy WebLinkAboutC.C. 03 SPEC COUNSL AG 01-20-92CONSENT CALENDAR NO. 3
1-20-92
)ATE:
TO:
FROM:
SUBJECT:
JANUARY 7, 1992
WILLIAM A. HUSTON, CITY MANAGER
RONALD A. VAULT, FINANCE DIRECTOR
RESOLUTION #92-71 ORDERING FORECLOSURE ACTIONS AND
APPROVING SPECIAL COUNSEL AGREEMENT
RECOMMENDATION
1. Adopt Resolution #92-71 ordering foreclosure actions.
2. Authorize the City Manager to sign the special Counsel
Agreement.
DISCUSSION
Language in the indenture of trust for both of the City's
assessment districts requires the City to take certain steps to
undertake foreclosure proceedings against delinquent properties
within the City as prescribed in Section 8830 et. seq. of the.
streets and highways code. In order to ensure that the City
properly complies with the code in the execution of its obligations
under the indenture, staff has been working with special counsel as
authorized by the City Council in Resolution #91-9. Resolution
#92-7 restates the City Council's direction to comply with the
indenture and assigns certain tasks to staff. The special Counsel
Agreement is a renewal of the original agreement authorized by the
City Council on February 8, 1991.
Ron A. Nault
Director of Finance
Attachment
RAN: Is
a:cr92-7
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RESOLUTION NO. 92-7
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUSTIN ORDERING FORECLOSURE ACTIONS AND APPROVING
SPECIAL COUNSEL AGREEMENT.
The City Council of The City of Tustin does hereby resolve as
follows:
WHEREAS, the CITY COUNCIL of THE CITY OF TUSTIN, CALIFORNIA
("City"), has heretofore undertaken proceedings pursuant to the
Municipal Improvement Act of 1913, being Division 12 of the Streets
and Highways Code of the State of California, and has confirmed
assessments upon lands within Special Assessment Districts
described in Resolutions of Intention adopted for said
improvements, (hereinafter "Assessments Districts"); and,
WHEREAS, said proceedings provide for the issuance of bonds
pursuant to the Improvement Bond Act of 1915, being.Division 10 of
the Streets and Highways Code of the State of California, and said
bonds were previously issued; and,
WHEREAS, collection of all assessments levied pursuant to said
Assessment District proceedings was and is intended to provide for
the timely payment of all amounts of principal and interest due and
payable pursuant to the terms of the above referenced bonds; and,
WHEREAS, certain owners of property within the Assessment
Districts have become delinquent and from time to time in the
future may become delinquent in the payment of said assessments,
thereby necessitating the institution of foreclosure actions with
respect to such parcels.
NOW, THEREFORE, it is hereby resolved as follows:
Section 1. That the above recitals are all true and correct.
Section 2. That it is hereby ordered that the City Finance
Director is authorized to cause all currently delinquent
assessments within the Assessment Districts to be collected by an
action or actions brought in the Superior Court to foreclose the
liens thereof in accordance with Part 14 of Division 10 of the
California Streets and Highways Code Section 8830(a).
Section 3. That the City Council hereby orders the City
Finance Director to review the delinquencies in each Assessment
District from time to time and said Finance Director is hereby
authorized to request and cause the City's special counsel to
foreclose, from time to time, on the delinquent assessments which
the Finance Director determines should or must be foreclosed upon
in order to comply with the covenants relating to the bonds.
Section 4. That the Special Counsel Agreement relating to such
actions submitted herewith and to be dated the date hereof is
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hereby approved and the appropriate officers of the City of Tustin
are hereby authorized to execute the same on behalf of the City of
Tustin.
PASSED AND ADOPTED at a regular meeting of the City Council of
the City of Tustin held on the day of , 199_.
, Mayor
, City Clerk
STATE OF CALIFORNIA
COUNTY OF ORANGE
CITY OF TUSTIN
CERTIFICATION FOR RESOLUTION NO.
City Clerk and ex -off icio Clerk of the City
Council of the City of Tustin, California, does hereby certify that
the whole number of the members of the City Council is ;
that the above and foregoing Resolution was duly and regularly
passed and adopted at a regular meeting of the City Council held on
the day of , 199 by the following vote:
Councilmember Ayes:
Councilmember Noes:
Councilmember Abstained:
Councilmember Absent:
City Clerk
SPECIAL COUNSEL AGREEMENT
THIS SPECIAL COUNSEL AGREEMENT ( is "Agreement") is made and
entered into this c>qo-r (/ day of , 199.2-, by and
between the City of Tom, a municl al corp ation (hereinafter
referred to as the "City"), and the Law Offices of Robert A Owen
(hereinafter referred to as "Counsel")
RECITALS
A The City has conducted proceedings for the formation of
special Assessment Districts (hereinafter referred to as the
"Assessment Districts") and has previously issued limited
obligation improvement bonds, repayment of which bonds is
secured by a lien on the unpaid assessments and the real
property within the Assessment Districts
B Certain property owners have become delinquent on the payment
of assessments levied within the Assessment Districts
C City is obligated, pursuant to certain covenants made in
connection with the issuance of the bonds, or desires to
institute foreclosure actions on the parcels represented by
such delinquencies in accordance with the Improvement Bond Act
of 1915, being Division 10 of the Streets and Highways Code of
the State of California, commencing with Section 8500
D City has, by Resolution, ordered the foreclosure of all
delinquent assessments within the Assessment Districts
E City wishes to retain the services of Counsel for the purposes
of instituting and processing such foreclosure proceedings
NOW, THEREFORE, the parties to hereby mutually agree as follows
Section 1 Counsel shall, in accordance with such instruction as
may be given by the City Finance Director, provide all owners of
property upon which there are delinquent assessments (as such
ownership is shown on the last equalized assessment roll or
otherwise known to Counsel) with notice that foreclosure litigation
will be commenced if their delinquencies are not redeemed within
ten (10) days of such notice For such assessments as are not paid
within the ten (10) day period, Counsel shall,'in accordance with
such instruction as may be given by the City Finance Director,
proceed to prepare and process complaints and related documentation
pertaining to the foreclosure proceedings for the delinquent
assessments within the Assessment Districts Counsel shall perform
all legal services necessary to complete said foreclosure actions,
unless directed otherwise by the City
Section 2 Counsel shall be paid an initial flat fee of $150 per
parcel for all services up to and including the mailing of the
above referenced ten (10) day notice, and an hourly rate of $150
per hour thereafter The parties hereto recognize that California
Streets and Highways Code Section 8831 provides, in pertinent part,
that "costs in the action shall be fixed and allowed by the court
and shall include a reasonable attorneys' fee, interest, penalties
and other charges or advances authorized by (Division 10), and when
so fixed and allowed by the court, the costs shall be included in
the judgment " Counsel shall send monthly invoices to the City for
all court costs or other monetary advances actually made by Counsel
during the preceding month City shall pay all such invoices
within thirty (30) days of receipt thereof Attorneys' fees from
each foreclosure action shall be due and payable upon the earlier
of (a) entry of judgment in the action, (b) settlement of the
action, or (c) redemption of the delinquency, but shall be solely
payable from funds, received from City from the foreclosure
proceeding and only to the extent thereof
Section 3 This Agreement may be terminated by either party by
providing ten (10) days written notice of such termination to the
other party
This Agreement is entered into the date first above written
Approved as to Form
a"
Jamerke
City ttorney
Attest,.
By
"City"
City of Tustin
"Counsel"
Law Offices of Robert A Owen
By
Robert A Owerr,