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HomeMy WebLinkAbout2009/04/28 Item 4 ITEM TITLE: CITY COUNCIL AGENDA STATEMENT ~ I'f:. CITY OF ~. ~ (HULA VISTA APRIL 28, 2009, Item~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACTING AS THE LEGISLATIVE BODY OF REASSESSMENT DISTRICT NO. 2001-1 OF THE CITY OF CHULA VISTA ORDERING JUDICIAL FORECLOSURE OF DELINQUENT SPECIAL REASSESSMENTS PURSUA1~T TO THE REFUNDING ACT OF 1984 FOR 1915 IMPROVEMENT ACT BONDS RESOLUTION OF THE. CITY COUNCIL OF THE CITY OF CHULA VISTA ACTING AS THE LEGISLATIVE BODY OF REASSESSMENT DISTRICT NO. 2001-2 OF THE CITY OF CHULA VISTA ORDERING JUDICIAL FORECLOSURE OF DELINQUENT SPECLA.L REASSESSMENTS PURSUANT TO THE REFUNDING ACT OF 1984 FOR 1915.IMPROVEMENT ACT BONDS RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACTING AS THE LEGISLATIVE BODY OF REASSESSMENT DISTRICT NO. 2005-2 OF THE CITY OF CHULA VISTA ORDERING JUDICIAL FORECLOSURE OF DELINQUENT SPECIAL REASSESSMENTS PURSUANT TO THE REFUNDING ACT OF 1984 FOR 1915 IMPROVEMENT ACT BONDS RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2006-IA OF THE CITY . OF CHULA VISTA ORDERING JUDICIAL FORECLOSURE OF DELINQUENT SPECIAL ASSESSMENTS PURSUANT TO THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACTING AS THE LEGISLATIVE BODY OF COMlYfUNITY FACILITIES DISTRICT NO. 2008-1 OF THE CITY. OF CHULA VISTA ORDERING JUDICIAL FORECLOSURE OF DELINQUENT SPECIAL ASSESSMENTS PURSUA1~T TO THE MELLO-ROOS . .4-1 APRIL 28, 2009 Page 2 00 SUBMITTED BY: REVIEWED BY: COMMUNITY FACILITIES ACT OF 1982 . DIRECTOR OF FINANCE/TREASURER ~ CITY MANAGER .-lh.A- ASSISTANT CIT~GER c::; r . 4/5THS VOTE: YES D NO [~] SUMMARY As part of the City's fiduciary role in administering Assessment Districts and Community Facilities Districts, Finance staff has been working with NBS, the city's Special Financing District Administrator, to address delinquent payments of special assessments. Ten parcels within the five different districts have been identified <).s being delinquent in paying their special assessments and now face judicial foreclosure as required by the Bond Indenture. Letters were sent to the property owners notifying. them of the judicial foreclosure and requesting payment of the delinquent assessments in order to avoid such action. To date, no payments have been received, and staff recommends adoption of the resolution to initiate the judicial foreclosure process. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the -activity is not a "Project" as defined under Section 15378 (b) (4) of the State CEQA Guidelines; therefore, pursuant to Section 15060( c )(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDA nON Council adopts the resolution. BOARDS/COMMISSION RECOMMENDA nON Not Applicable. DISCUSSION The City is obligated to proceed with the judicial foreclosure process required by the bond covenants when property owners are delinquent in paying their special assessments. The foreclosure proceedings against delinquent parcels begin when certain thresholds are met as set forth in the bond documents. Ten parcels were identified as being delinquent in paying their special assessments and meet the criteria necessary for judicial foreclosure proceedings pursuant to the Bond Indenture. They are located in five different districts and the delinquent payments total $48,093.12 (Attachment A). The sub-prime mortgage fallout and resulting slowdown in the economy continues to impact the City's special assessment district delinquency rates causing significant increases in many of the districts (Attachment B). Fortunately none of the districts' delinquencies are substantial enough to require a draw on the districts' reserve funds to make debt service payments. This was also the case last year, but looking forward, if delinquencies do not drop significantly next year CFD/AD reserves will most likely be hit. Not only will this be a material event requiring 4-2 APRIL 28, 2009 Page 3 of3 disclosure. but it will also reduce the thresholds relating to the judicial foreclosure process. causing more parcels to be subiect to iudicial foreclosure proceedings. In fact. some bond. covenants state that all delinquent parcels are subiect to iudicial foreclosure once the reserve fund has been drawn upon regardless of the amount delinquent. This would result in judicial foreclosure for hundreds. perhaps thousands of parcels. Normally, special assessments are included on the property tax bills for collection, and upon receipt, the County forwards the monies to the City who in turn pays the required debt obligation. The property taxes represent a much more substantial portion of the bill in comparison to the special assessments, but because the County does not accept partial payments, the smaller special assessments also go unpaid as. property owners struggle to make their payments. Under the City's delinquency monitoring program, at least three letters have been sent to these property owners requesting payment of the delinquent taxes and assessments. To date, no payments have been received and thus the delinquent special assessments for these ten parcels were removed from the property tax bills. The next step in the judicial foreclosure process is to turn these delinquencies over to outside counsel, Stradling Y occa Carlson & Rauth, for legal action.. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 teet of the boundaries of the properties which are the subject of this action. FISCAL IMP ACT Current Year Impact There is no direct fiscal impact to the General Fund. Delinquencies in the current fiscal year will not cause any draws to the CFD/ AD reserve funds. . All costs associated with the judicial foreclosure process are the responsibility of the delinquent property owners. On-Going Impact If delinquencies do not drop significantly next year CFD/AD reserves will most likely be drawn upon. This will create a material event requiring disclosure. In addition, it will drop the thresholds relating to judicial foreclosure thereby causing more parcels to be subject to judicial foreclosure. Some of the bond covenants require that all delinquent parcels be subject to judicial foreclosure once the reserve fund has been drawn upon regardless of the amount delinquent. This could result in judicial foreclosure for hundreds, perhaps thousands of parcels. ATTACHMENTS A. APN Listing of Delinquent Properties B. Special Financing Delinquency Report - Bonded Debt Prepared by: Nadine Mandery, Treasury Manager, Finance Dept. 4-3 APN 595-410-02-24 595-410-23-07 595-420-08-05 595-420-08-11 644-181-21-00 643-520-57-00 642-560-15-00 595-760-05-00 643-620-19-00 643-591-03-00 10 Parcels Attachment A City of Chula Vista APN Listing of Delinquent Properties District Installment Amount Owed, City State $1,511.20 I CHULA VISTA CA 1,500.82 CHULA VISTA CA 1,274.77 I CHULA VISTA CA 1,285.13 I CHULA VISTA CA 3,340.22 CHULA VISTA CA 2,213.80 CHULA VISTA CA 18,688.59 CHULA VISTA CA. 6,272.78 CHULA VISTA CA 6,079.71 CHULA VISTA CA 5,926.10, CHULA VISTA CA $48,093.12 2001-1 (AD 90-1R) 2001-1 (AD 90-1R) 2001-1 (AD 90-1R) 2001-1 (AD 90-1R) 2001-2 (90-2R) 2001-1 (AD 90-3R) 2005-2 (AD 97 -2R) CFD 06-IA CFD 06-IA CFD 08-1 4-4 Zip Code 91914 . 9.1914 91914 91914 91911 91915 . 91913 91914 919.15 91913 Special Financing District Delinquencies ./'>0 I U1 Fiscal Year 2008/09 Delinquency Rate District Zip Fiscal Year 2007/08 for the 12/10/2008 Foreclosure District . Code(s) Delinquency Rate(5) Installment(5) . Initiated Reassessment District No. 87-1 R (11 91910 & 91913 1.28% 5.37% No Assessment Dislrict88-1R(2) 91914 & 91915 0.43% 1.91% No Reassessment District No. 88-2R (1) 91910 1.55% 9.15% No Assessment District 90-1 R(3) 91914 3.18% 8.81% Yesla) IAssessment District 90-2R(2) 91911 0.62% 10.67% Yes(7) Assessment District 90-3R(3) 91914 & 91915 2.37% 8.01% YeS(7) Assessment District 91-1 R(3) 91915 1.41% 5.21% No I\ssessment District 92-2R(2) 91911 0.00% 0.00% No Assessment District94-1 91915 2.68% 8.10% No Reassessment District No. 97-2 Refunding Bonds (4) 91913 3.20% 7.87% YeS(7) Community Facilities District No. 06-1 Improvement Area A Special Tax Bonds 91914 & 91915 6.01% 17.07% Yesla) Community Facilities District No. 06-1 Improvement Area B Special Tax Bonds 91915 7.64% 13.18% No Community Facilities District No. 07-1 2004 Special Tax Bonds 91915 3.98% 11.93% No Community Facilities District No. 07-1 2006 Special Tax Bonds 91915 3.98% 11.93% No Communily Facilities District No. 08-1 Special Tax Bonds 91913 4.02% 19.72% Yes(7) Community Facilities District No. 12-1 Special Tax Bonds 91913 0.81% 4.26% No Community Facililies District No. 13-1 Special Tax Bonds 91913 2.28% 34.32% No Community Facilities District No. 2000-1 Refunding Bonds 91911 2.48% 9.90% No Community Facilities District No. 2001-1 Improvement Area A Refunding Bonds 91914 4.51% 14.46% No Community Faciiities District No. 2001-1 Improvement Area B Special Tax Bonds 91914 0.20% 14.24% No Community Facilities District No. 2001-2 Special Tax Bonds 91913 4.09% 12.53% No Community Facilities District No. 97-3 Refunding Bonds 91913 2.23% 8.36% No Community Facilities District No. 99-1 Refunding Bonds 91913 3.35% 10.64% No 23 Districts (1) Reassessment District No. 2005-1 Limited Obligation Refunding Bonds (AD ~7-1 and 86-2) (2) Reassessment District No. 2001-2 (AD 68-1, 90-2, and 92-2) (3) Reassessment District No. 2001-1 (AD 9q-l. 90-3, and 91-1) (4) Reassessment District No. 2005-2 limited Obligation Refunding Bands (AD 97-2) (5) Delinquency Rate as of January 19th, 2009., (6) The City of Chula Vista initiated foreclosure proceedings on 4 new parcels this year as required by Bond Covenants. (7) The City of Chul~ Vista Initiated foreclosure proceedings .on 1 new parcel this year as required by Bond Covenants. (B) The CUy of Chula Vista initiated foreclo~ure proceedings on 2 new parcels this year as required by Bond Covenants. ;p -t -t ;p " ::c 3: fT1 :z -t m . RESOLUTION NO. 2009- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACTING AS THE LEGISLATIVE BODY OF REASSESSMENTDISTRlCT NO. 2001-1 OF THE CITY OF CHULA VISTA ORDERING JUDICIAL FORECLOSURE OF DELINQUENT SPECIAL REASSESSMENTS PURSUANT TO THE REFUNDING ACT OF 1984 FOR 1915 IMPROVEMENT ACT BONDS WHEREAS, Reassessment District No. 2001-1 of the City of Chula Vista ("RAD No. 2001-1 ") has incurred bonded indebtedness and levied special reassessments for the payment of bonds pursuant to the provisions of the Refunding Act of 1984 for 1915 Improvement Act Bonds, Division 11.5 (commencing with Section 9500) of the Streets and Highways Code of the State of California (the "Refunding Apt"); and WHEREAS, pursuant to the Refunding Act, RAD No. 200i-1 has dilly levied and recorded the unpaid special reassessments, which special reassessments and each installment thereof and interest and penalties thereon constitute liens against the lots and parcels of land against which they are made, until the same are paid; and . WHEREAS, certain special reassessment installments have not been paid when due, and . certain installments of those special reassessments may not be paid in the future; and WHEREAS, under the provisions of Section 8834 of the Streets and Highways Code of the State of California, the City Council of the City of Chula Vista ("City Council") acting in its capacity as the legislative body of RAD No. 2001-1 is authorized and may order that a foreclosure action be brought to collect the delinquent special reassessments due against the properties withinRAD No. 2001-1 not later than four (4) years after the date of delinquency of the last installment due on the bond; and WHEREAS, pursuant to the provisions of Section 8830, et seq. of the Streets and Highways Code of the State of California, RAD No. 2001-1 has covenanted to bondholders to institute judicial foreclosure proceedings; and WHEREAS, the City Council acting in its capacity as the legislative body of RAD No. . 2001-1 has determined that the public convenience and necessity require prompt action at the City of Chula Vista's discretion, to initiate foreclosure proceedings. NOW, THEREFORE, BE IT RESOLVED by the City Council, acting in its capacity as the legislative body ofRAD No. 2001-1, as follows: SECTION 1. The delinquent special reassessments on parcels listed in Exhibit A attached hereto' and incorporated herein, and all future installments of special reassessments which are not paid when due shall be collected by action brought in the Superior Court of San Diego County to foreclose the delinquent special reassessments to the extent allowed by law. DOCSOC/1341778v1/024036-0014 4-6 Resolution No. 2009- Page 2 SECTION 2. RAD No. 2001-1 is hereby authorized and directed to have the law firm of Stradling Yocca Carlson & Rauth ("Special Counsel"), 660 Newport Center Drive, Suite 1600; Newport Beach, California 92660, institute such actions in the name ofRAD No. 2001-1 and the City of Chula Vista to foreclose delinquent special reassessments. SECTION 3. The Director of Finance' of the City of Chula Vista, or his/her written designee, in cooperation and in conjunction with Special Counsel, is authorized and directed to transmit a certified copy of this resolution to the Auditor/Controller's office of the County of San Diego with a letter that shall state that: a. The City Council has ordered that the delinquent special reassessment installments be collected by action brought in the Superior Court of San Diego County to foreclose the delinquent special reassessments b. All inquiries regarding payment of the delinquent special reassessments shall be forwarded to Stradling Yocca Carlson & Rauth c/o Allison E. Burns, Esq., 660 Newport Center Drive, Suite 1600, NewPort Beach, California 92660. SECTION 4. This resolution shall take effect immediately upon its adoption. Presented by Approved as to form by Maria Kachadoorian Director of Finance ~ \ , 'G) ',' tu--( J, ~art iesfi. . . \vG;ity Attorney DOCSOC/1341778v1/024036-0014 4-7 Resolution No. 2009- Page 3 EXHIBIT A List of Delinquent Property (Bv Assessor's Parcel Number)-Reassessment District No. 2001-1 595-41 0-02~24 595-410"23-07 595-420-08-05 595-420-08-11 643-520-57 -00 DOCSOC/1341778v1/024036-0014 4-,.8 RESOLUTION NO. 2009- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACTING AS THE LEGISLATIVE BODY OF REASSESSMENT DISTRICT NO. 2001-2 OF THE CITY OF CHULAVISTA ORDERING JUDICIAL FORECLOSURE OF DELINQUENT SPECIAL REASSESSMENTS PURSUANT TO THE REFUNDING ACT OF 1984 FOR 1915 IMPROVEMENT ACT BONDS WHEREAS, Reassessment District No. 2001-2 of the City of Chula Vista ("RAD No. . 2001-2") has incurred bonded indebtedness and levied special reassessments for the payment of bonds pursuant to the provisions of the Refunding Act of 1984 for 1915 Improvement Act Bonds, Division 11.5 (commencing with Section 9500) of the Streets and Highways Code of the State of California (the "Refunding Act"); and WHEREAS, pursuant to the Refunding Act, RAD No. 2001-2 has duly levied and recorded the unpaid special reassessments, which special reassessments and each installment thereof and interest and penalties thereon constitute liens against the lots and parcels of land against which they are made, until the same are paid; and WHEREAS, certain special reassessment installments have not been paid when due, and certain installments of those special reassessments may not be paid in the future; and WHEREAS, under the provisions of Section 8834 of the Streets and Highways Code of the State of California, the City Council of the City of Chula Vista ("City Council") acting in its capacity as the legislative body of RAD No. 2001-2 is authorized and may order that a foreclosure action be brought to collect the delinquent special reassessments due against the properties within RAD No. 2001-2 not later than four (4) years after the date of delinquency of' the last installment due on the bond; and WHEREAS, pursuant to the provisions of Section 8830, et seq. of the Streets and Highways Code of the State of California, RAD No. 2001-2 has covenanted to bondholders to institute judicial foreclosure proceedings; and WHEREAS, the City Council acting in its capa.ci!)" as the legislative body of RAD No. . 2001-2 has determined that the public convenience aner-necessity require prompt action at the City of Chula Vista's discretion, to initiate foreclosure proceedings. NOW, THEREFORE, BE IT RESOLVED by the City Council, acting in its capacity as the legislative body ofRAD No. 2001-2, as follows: SECTION 1. The delinquent special reassessments on parcels listed in Exhibit A attached hereto and incorporated herein, and all future installments of special reassessments. which are not paid when due shall be collected by action brought in the Superior Court of San Diego County.to foreclose the delinquent special reassessments to the extent allowed by law. DOCSOC/1341779v1/024036-0014 4-9 Resolution No. 2009- Page 2 SECTION 2. RAD No. 2001-2 is hereby authorized and directed to have the law firm of Stradling Yocca Carlson & Rauth ("Special Counsel"), 660 Newport Center Drive, Suite 1600, Newport Beach, California 92660, institute such actions in the name of RAD No. 2001-2 and the City of Chula Vista to foreclose delinquent special reassessments. . SECTION 3. The Director of Finance of the City of Chula Vista, or hislher written designee, in cooperation and in conjunction with Special Counsel, is authorized and directed to transmit a certified copy of this resolution to the Auditor/Controller's office of the County of San Diego with a letter that shall state that: a. The City Council has ordered that the delinquent special reassessment installments be collected by action brought in the Superior Court of San Diego County to foreclose the delinquent special reassessments b. All inquiries regarding payment of the delinquent special reassessments shall be forwarded to Stradling Yocca Carlson & Rauth c/o Allison E. Bums, Esq., 660 Newport Center Drive, Suite 1600, Newport Beach, California 92660. SECTION 4. This resolution shall take effect immediately upon its adoption. Presented by Approved as to form by Maria Kachadoorian Director of Finance (.~~ r:~~ M' sfeld . . In':lty Attorney DOCSOC/1341779v1/024036-0014 4-10 Resolution No. 2009- Page 3 EXHIBIT A List of DelinQuent Property (By Assessor's Parcel Number)-Reassessment District No. 2001-2 644-181-21-00 DOCSOC/1341779v1/024036-0014 4-11 RESOLUTION NO. 2009- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACTING AS THE LEGISLATIVE BODY OF REASSESSMENT DISTRlCT NO. 2005-2 OF THE CITY OF CHULA VISTA ORDERlNG JUDICIAL FORECLOSURE OF DELINQUENT SPECIAL REASSESSMENTS PURSUANT TO THE REFUNDING ACT OF 1984 FOR 1915 IMPROVEMENT. ACT BONDS WHEREAS, Reassessment District No. 2005-2 of the City of Chula Vista ("RAD No. 2005-2") has incurred bonded indebtedness and levied special reassessments for the payment of bonds pursuant to the provisions of the Refunding Act of 1984 for 1915 Improvement Act Bonds, Division 11.5 (commencing with Section 9500) of the Streets and Highways Code of the State of California (the "Refunding Act"); and WHEREAS, pursuant to the Refunding Act, RAD No. 2005-2 has duly levied and recorded the unpaid special reassessments, which special reassessments and each installment thereof and interest and penalties thereon constitute liens against the lots and parcels of land against which they are made, until the same are paid; and WHEREAS, certain special reassessment installments have not been paid when due, and certain installments of those special reassessments may not be paid in the future; and WHEREAS, under the provisions of Section 8834 of the Streets and Highways Code of the State of California, the City Council of the City of Chula Vista ("City Council") acting in its capacity as the legislative body of RAD No. 2005-2 is authorized and may order that a foreclosure action be brought to collect the delinquent special reassessments due against the properties within RAD No. 2005-2 not later than four (4) years after the date of delinquency of the last installment due on the bond; and WHEREAS, pursuant to the provisions of Section 8830, et seq. of the Streets and Highways Code of the State of California, RAD No. 2005-2 has covenanted to bondholders to institute judicial foreclosure proceedings; and WHEREAS, the City Council acting in its capacity as the legislative body of RAD No. 2005-2 has determined that the public convenience and necessity require prompt action at the City of Chula Vista's discretion, to initiate foreclosure proceedings. NOW, THEREFORE, BE IT RESOLVED by the City Council, acting in its capacity as the legislative body ofRAD No. 2005-2, as follows: SECTION 1. The delinquent special reassessments on parcels listed in Exhibit A attached hereto and incorporated herein, and all future installments of special reassessments which are not paid when due shall be collected by action brought in the Superior Court of San . Diego County to foreclose the delinquent s~ecial reassessments to the extent allowed by law. DOCSOC/1341762v1/024036-0014 4-12 Resolution No. 2009- Page 2 SECTION 2. RAD No. 2005-2 is hereby authorized and directed to have the law firm of Stradling Yocca Carlson & Rauth ("Special Counsel"), 660 Newport Center Drive, Suite 1600, Newport Beach, California 92660, institute such actions in the name ofRAD No. 2005-2 and the City of Chula Vista to foreclose delinquent special reassessments. SECTION 3. The Director of Fin;lIlce of the City of Chula Vista, or hislher written designee, in cooperation and in conjunction with Special Counsel, is authorized and directed to transmit a certified copy of this resolution to the Auditor/Controller's office of the County of San Diego with a letter that shall state that: a. The City Council has ordered that the delinquent special reassessment installments be collected by action brought in the Superior Court of San Diego County to foreclose the delinquent special reassessments , b. All inquiries regarding payment of the delinquent special reassessments shall be forwarded to Stradling Yocca Carlson & Rauth c/o Allison E. Bums, Esq., 660 Newport Center Drive, Suite 1600, Newport Beach, California 92660. SECTION 4. This resolution shall take effect immediately upon its adoption. Presented by Approved as to form by Maria Kachadoorian Director of Finance DOCSOC/1341762v1/024036-0014 4-13 Resolution No. 2009- Page 3 EXHIBIT A List of Delinquent Property (By Assessor's Parcel Number)-Reassessment District No. 2005-2 642-560-15-00 . DOCSOC/1341762v1/024036-0014 4-14 RESOLUTION NO. 2009- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACTING AS THE LEGISLATIVE BODY OF COMt\IfUNITY FACILITIES DISTRlCTNO. 2006-IA OF THE CITY OF CHULA VISTA ORDERlNG JUDICIAL FORECLOSURE OF DELINQUENT SPECIAL ASSESSMENTS PURSUA1"fT TO THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982 WHEREAS, Community Facilities District No. 2006-IA of the City of Chula Vista ("CFD No. 2006-IA") has incurred bonded indebtedness and levied special assessments for the payment of bonds pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2, Title 5 of Government Code ("Mello- Roos Act"); and WHEREAS, pursuant to the Mello-Roos Act, CFD No. 2006-IA has duly levied and recorded the unpaid special assessments, which special assessments and each installment thereof and interest and penalties thereon constitute liens against the lots and parcels of"land against which they are made, until the same are paid; and . WHEREAS, certain special assessment installments have not been paid when due, and certain installments of those special assessments may not be paid in the future; and WHEREAS, under the provisions of Section 53356.1 of the Government Code of the State of California, the City Council of the City of Chula Vista ("City Council"), acting in its capacity as the legislative body of CFD No.2006-IA is authorized and may order that a foreclosure action be brought to collect the delinquent special assessments due against the properties within CFD No. 2006-IA not later than four (4) years after the date of delinquency of the last installment due on the bond; and WHEREAS, pursuant to the provisions of Section 53356.1(b) of the Mello-Roos Act, CFD No. 2006-IA has covenanted with bondholders to institute judicial foreclosure proceedings against parcels within CFD No. 2006-IA with delinquent special taxes; and . WHEREAS, the City Council, acting in its capacity as the legislative body of CFD . No. 2006-IA has determined that the public convenience and necessity require prompt action at the City of Chula Vista's discretion, to initiate foreclosure proceedings. NOW, THEREFORE, BEIT RESOLVED by the City Council, acting in its capacity as the legislative body of CFD No. 2006-IA, as follows: SECTION 1. The delinquent special assessments on parcels listed in Exhibit A attached hereto and incorporated herein, and all future installments of special assessments which are not paid when due shall be collected by action brought in the Superior Court of San Diego County to foreclose the delinquent special assessments to the extent allowed by Jaw. DOCSOC/1341745v1/024036-0014 4-15 Resolution No. 2009- Page 2 . SECTION 2. CFD No. 2006-IA is hereby authorized and directed to have the law firm of Stradling Yocca Carlson & Rauth ("Special Counsel"), 660 Newport Center Drive, Suite 1600, Newport Beach, California 92660, institute such actions in ti1e name of CFD No. 2006-IA and the City of Chula Vista to foreclose the delinquent special assessments. SECTION 3. The Director of Finance of the City of Chula Vista, or his/her written designee, in cooperation and in conjunction with Special Counsel, is authorized and directed to transmit a certified copy of this resolution to the Auditor/Controller's office of the County of San Diego with a letter that shall state that: a. The City Council has ordered that the delinquent special' assessment installments be collected by action brought in the Superior Court of San Diego County to foreclose the delinquent special assessments; b. All inquiries regarding payment of the delinquent special assessIhents shall be forwarded to Stradling Yocca Carlson & Rauth c/o Allison E. Burns, Esq., 660 Newport Center Drive, Suite 1600, Newport Beach, California 92660. SECTION 4. This resolution shall take effect immediately upon its adoption. Presented by Approved as to form by \ " Maria Kachadoorian Director of Finance DOCSOC/1341745v1/024036-0014 4-16 Resolution No. 2009- Page 3 EXIllBIT A List of Delinquent Property (By Assessor's Parcel Number)-Assessment District No. 2006-IA . 595-760-05-00 643-620-19-00 DOCSOC/13417 45v1 /024039-0014 4-17 RESOLUTION NO. 2009- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACTING AS THE LEGISLATIVE BODY OF COMtYfUNITY FACILITIES DISTRICT NO. 2008-1 OF THE CITY OF CHULA VISTA ORDERING JUDICIAL FORECLOSURE OF DELINQUENT SPECIAL ASSESSMENTS PURSUAL'JT TO THE MELLO-ROOS COMtvfUNITY FACILITIES ACT OF 1982 WHEREAS, Community Facilities District No. 2008-1 of the City of Chula Vista ("CFD No. 2008-1") has incurred bonded indebtedness and levied special assessments for the payment of bonds pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2, Title 5 of Government Code ("Mello-Roos Act"); and WHEREAS, pursuant to the Mello-Roos Act, CFD No. 2008-1 has duly levied and recorded the unpaid special assessments, which special assessments and each installment thereof and interest and penalties thereon constitute liens against the lots and parcels of land against which they are made, until the same are paid; and . WHEREAS, certain special assessment installments have not been paid when due, and certain installments of those special assessments may not be paid in the future; and WHEREAS, under the provisions of Section 53356.1 of the Government Code of the State of California, the City Council of the City of Chula Vista ("City Council"), acting in its capacity as the legislative body of CFD No. 2008-1 is authorized and may order that a foreclosure action be brought to collect the delinquent special assessments due against the properties within CFD No. 2008-1 not later than four (4) years after the date of delinquency of the last installment due on the bond; and WHEREAS, pursuant to the provisions of Section 53356.1(b) of the Mello-Roos Act, CFD No. 2008-1 has covenanted with bondholders to institute judicial foreclosure proceedings against parcels within CFD No. 2008-1 with delinquent special ta'(es; and WHEREAS, the City Council, acting in its capacity as the legislative body of CFD No. 2008-1 has determined that the public convenience and necessity require prompt action at the City of Chula Vista's discretion, to initiate foreclosure proceedings. NOW, THEREFORE, BE IT RESOLVED by the City Council, acting in its capacity as the legislative body ofCFD No. 2008-1, as follows: SECTION 1. The delinquent special assessments on parcels listed in Exhibit A attached hereto arid incorporated herein, and all future installments of special assessments which are not paid when due shall be collected by action brought in the Superior Court of San Diego County to foreclose the delinquent special assessments to the extent allowed by law. DOCSOC/1341742v1J024036-0014 4-18 Resolution No. 2009- Page 2 SECTION 2. CFD No. 2008-1 is hereby authorized and directed to have the law firm of Stradling Yocca Carlson & Rauth ("Special Counsel"), 660 Newport Center Drive, Suite 1600, Newport Beach, California 92660, institute such actions in the name of CFD No. 2008-1 and the City of Chula Vista to foreclose the delinquent special assessments. SECTION 3. The Director of Finance of the City of Chula Vista, or hislher \.vritten designee, in cooperation and in conjunction with Special Counsel, is authorized and directed to transmit a certified copy of this resolution to the Auditor/Controller's office of the County of San Diego with a letter that shall state that: a. The City Council has ordered that the delinquent special assessment installments be collected by action brought in the Superior Court of San Diego County to foreclose the delinquent special assessments; b. All inquiries regarding payment of the delinquent special assessments shall be forwarded to Stradling Yocca Carlson & Rauth c/o Allison E. Bums, Esq., 660 Newport Center Drive, Suite 1600, Newport Beach, California 92660. SECTION 4. This resolution shall take effect immediately upon its adoption. Presented by Approved as to form by Maria Kachadoorian Director of Finance DOCSOC/1341742v1/024036-0014 4-19 Resolution No. 2009- . Page 3 EXHIBIT A List of Delinquent Property (Bv Assessor's Parcel Number)-Assessment District No. 2008-1 643-591-03-00 DOCSOC/1341742v11024036-0014 4-20 ~ ~.