The URL can be used to link to this page

Home My WebLink About04 RESOLUTION #16-05 TO INITIATE FORECLOSURE PROCEEDINGSAgenda Item 4 Reviewed: AGENDA REPORT City Manager Finance Director MEETING DATE: JANUARY 5, 2016 TO: JEFFREY C. PARKER, CITY MANAGER FROM: PAMELA ARENDS-KING, FINANCE DIRECTOR/CITY TREASURER SUBJECT: JUDICIAL FORECLOSURE FOR PARCEL LOCATED WITHIN COMMUNITY FACILITIES DISTRICT NO. 06-1 (TUSTIN LEGACY/COLUMBUS VILLAGES) SUMMARY: Approval by the City of Tustin is requested to authorize judicial foreclosure of delinquent special taxes, including penalties, and interest in Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages) ("CFD 06-1 ") RECOMMENDATION: That the City Council pass and adopt Resolution No. 16-05, entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 06-1 (TUSTIN LEGACY/COLUMBUS VILLAGES), ORDERING JUDICIAL FORECLOSURE OF DELINQUENT SPECIAL TAXES PURSUANT TO THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1992, AND ORDERING THAT THE TAX COLLECTOR BE CREDITED WITH THOSE SPECIAL TAXES, AND AUTHORIZING RELATED ACTIONS." FISCAL IMPACT: The proposed judicial foreclosure action will seek to collect delinquent special taxes, including penalties, and interest, totaling approximately $28,114.00. City Council Report Authorization for Judicial Foreclosure for CFD No. 01-6 January 5, 2016 Page 2 BACKGROUND: On June 5, 2006, the City Council adopted Resolution No. 06-67, commencing proceedings under the Mello -Roos Community Facilities Act of 1982 ("Mello -Roos Act") to create CFD 06-1. Those proceedings resulted in the issuance of bonds and levy of special taxes to pay principal and interest on the bonds for CFD 06-1. Pursuant to the trust indenture regarding the bonds issued for CFD 06-1, the City has covenanted to bondholders to commence judicial foreclosure proceedings against properties within the CFD for which special taxes are delinquent. Pursuant to the Mello - Roos Act, judicial foreclosure proceedings cannot be initiated until the City authorizes the commencement of such actions. Resolution No. 16-05 authorizes the initiation of foreclosure proceedings against a parcel located in CFD No. 06-1, and identified on Exhibit "A" of the Resolution, that has been reported as delinquent as to the payment of special taxes. Pamela Arends-King Finance Director/City Treasurer Attachments: Resolution No. 16-05 Exhibit A RESOLUTION NO. 16-05 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 06-1 (TUSTIN LEGACY/COLUMBUS VILLAGES), ORDERING JUDICIAL FORECLOSURE OF DELINQUENT SPECIAL TAXES PURSUANT TO THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982, ORDERING THAT THE TAX COLLECTOR BE CREDITED WITH THOSE SPECIAL TAXES, AND AUTHORIZING RELATED ACTIONS. The City Council of the City of Tustin does hereby resolve as follows: WHEREAS, Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages) ("CFD 06-1") has incurred bonded indebtedness to fund infrastructure for the Tustin Legacy/Columbus Villages Project and levied special taxes for the payment of bonds pursuant to the provisions of the Mello -Roos Community Facilities Act of 1982 (commencing with Section 53311 of Part 1 of division 2 of Title 5 of the Government Code) (the "Mello -Roos Act'); WHEREAS, pursuant to the Mello -Roos Act, CFD No. 06-1 has duly and regularly levied and recorded the unpaid special taxes, which special taxes and each installment thereof and interest and penalties thereon constitute liens against the lots and parcels of land against which they are levied, until the same are paid; WHEREAS, certain special tax installments have not been paid when due, and certain installments of those special taxes may not be paid in the future; WHEREAS, under the provisions of Section 53356.1 of the Government Code of the State of California, the City Council of the City of Tustin (the "City Council") acting in its capacity as the legislative body of CFD No. 06-1 is authorized, not later than four (4) years after the due date of the last installment of principal due on the bonds, to order that any delinquent special taxes be collected by an action brought in the superior court to foreclose the lien of those special taxes; WHEREAS, pursuant to the provisions of Section 53356.1(b) of the Mello -Roos Act, CFD No. 06-1 has covenanted with the bondholders to institute judicial foreclosure proceedings; WHEREAS, the City Council acting in its capacity as the legislative body of CFD No. 06- 1 has determined that the public convenience and necessity require prompt action to initiate foreclosure proceedings against parcels within CFD No. 06-1 with delinquent special taxes; and WHEREAS, under the provisions of Section 53356.2 of the Mello -Roos Act, when such foreclosure action is ordered, the county tax collector shall be credited upon the current tax roll with the amount charged on account of the delinquent special taxes to be sued on, including applicable penalties, interest and costs and to be relieved of further duty in regard thereto. Resolution 16-05 Page 1 of 3 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Tustin, acting in its capacity as the legislative body of Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages) does hereby resolve, determine and order as follows: SECTION 1. The delinquent special taxes on the parcel listed on Exhibit "A" attached hereto and incorporated herein, and all future installments of special taxes which are not paid when due, shall be collected by action brought in the Superior Court of the State of California for the County of Orange to foreclose the liens thereof. SECTION 2. CFD No. 06-1 is hereby authorized and directed to have the law firm of Stradling Yocca Carlson & Rauth, a Professional Corporation ("Special Counsel"), in cooperation and in conjunction with the City Attorney, to institute such actions in the name of CFD No. 06-1 to foreclose the liens of all such delinquent special taxes. SECTION 3. The Finance Director, or her written designee, in cooperation and in conjunction with Special Counsel, and the City Attorney, is authorized and directed to transmit a certified copy of this resolution to the Auditor/Controller's office of the County of Orange with a letter that shall state that: a. The legislative body of CFD No. 06-1 has ordered that the delinquent special tax installments be collected by action brought in the Superior Court of the State of California for the County of Orange to foreclose the liens thereof; b. Pursuant to Government Code Section 53356.2, the Orange County Tax Collector is to be credited upon the current tax roll with the amount charged on account of the delinquent special taxes to be sued on, including applicable penalties, interest and costs and to be relieved of further duty in regard thereto; and C. All inquiries regarding payment of the delinquent special taxes shall be forwarded to the Finance Director, City of Tustin. SECTION 4. The Finance Director is hereby authorized and directed to take any actions and execute and deliver any and all documents as are necessary to implement the terms of this Resolution, including entering into agreements for services with Special Counsel and other consultants to pursue the collection of the delinquent special taxes. In the event that the Finance Director is unavailable to sign any document to be executed pursuant to the terms of this Resolution, then the City Manager may sign such document. SECTION 5. This resolution shall take effect on the day it is adopted Resolution 16-05 Page 2 of 3 PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin held on the 5`" day of January, 2016. JOHN NIELSEN, Mayor ATTEST: ERICA N. RABE, City Clerk STATE OF CALIFORNIA) COUNTY OF ORANGE ) CITY OF TUSTIN ) I, Erica N. Rabe, City Clerk and ex -officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council of the City of Tustin is five; and that the above and foregoing Resolution No. 16-05 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 5T" day of January, 2016 by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: ERICA N. RABE City Clerk Resolution 16-05 Page 3 of 3 Exhibit A ,.,�� I C. v L L) S L ILJII �r ��.1� ��ti _`� ��V s��_�h i_ V_ ` i ��`'� �} � �jjj +f�I(�(�i�i,� Ijlj ��-��-�"_\ (�, l/ n,,� 7U2 -"s /; ti _ S u J _ - _ - `Zr �/1 Lt ,. .. _,l .i '�.. ��. .J R) E 1 0 E `._-� 11 U t QQ iV L.� li`�� C L ! J 'u Goan 0u a V"0VC) A Active fa Forec'-sure Action Flags: R Reminder Letter Sent N Notice of Intent / Strip Requested U SBE N Handl.'--d P Paid Off S Sp` t D Demand Letter Sent T Removal con`,n;0d F Parcel in Foreclosure 8 Bar•krupt F Finished R Refunded! Foreclosure Letter Sent P Payment Pian S Hold/Special Circumstance J Judgement 434-491-41 A VIVANIG, EtIIILIA 3309 SAGE ST TUSTIN, CA 3309 SAGE ST 12/10/2008 33,315.57 $331 56 $2,58596- 50.00 56,233 09 RDTL 92782-1935 A 04/10/2009 3,315.57 331.56 2,585.96 0.00 6,233.09 RDTL A 04/10/2010 3,38188 338.19 2,029.20 0.00 5.749 27 DTL A 04/10/2011 3,44952 34495 1,448.72 0.00 5,243 19 DTL A 04/10/2012 3,474.31 347.43 833,76 0.00 4,655 50 TL Total DoMquent: $16,936.55 $1,693.69 $9,483.60 0.00 $28,114.14 -- ^—F VI ULD" , f• h lal ld al e,- Vices 09/10/2013 09/10/2013 09/10/2013 09/10/2013 09/10/2013 Page 1 of 2 n ILI 'E L Ll u I-, -,IN "A Q') Up, rL C YL 10-7 7 Page 2 oft Amcunt i r t. 1 c"s t c- ra s, t FsZz 71; 04 tup L $106,936.85 0 0.00 $1,693,69$9,483.60 0.00 0.00 $0.00 0.00 $28,114.14 0.00 Total 1 $16,936,85 $1,693.69$9,483.60 $0.00 $28,114.14. Page 2 oft