HomeMy WebLinkAbout2011/06/21 Item 04CITY COUNCIL
AGENDA STATEMENT
~`~~~ CITY OF
'~"` CHULA VISTA
JUNE 21, 2011, Item
ITEM TITLE: 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 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. 06-I
(EASTLAKE-WOODS, VISTAS AND LAND SWAP) 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
COMMUNITY FACILITIES DISTRICT NO. 13-I (OTAY
RANCH VILLAGE SEVEN) 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
COMMUNITY FACILITIES DISTRICT NO. 99-1 (OTAY
RANCH SPA ONE - PORTIONS OF VILLAGE ONE,
VILLAGE FIVE AND VILLAGE ONE WEST) OF THE CITY
OF CHULA VISTA ORDERING JUDICIAL FORECLOSURE
OF DELINQUENT SPECIAL ASSESSMENTS PURSUANT TO
THE MELLO-RODS COMMUNITY FACILITIES ACT OF
1982
SUBMITTED BY: DIRECTOR OF FINANCE/TREASURER"~{~
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JUNE 21, 201 I
Page 2 of 3
REVIEWED BY: CITY MANAGER ~
ASSISTANT CITY MANAGERS 4
4/STHS VOTE: YES ~ NO ~X
SUMMARY
As part of the City's fiduciary role in administering Reassessment Districts (RADs) and Community
Facilities Districts (CFDs), Finance staff has been working with NBS, the city's Special Financing
District Administrator, to address delinquent payments of special assessments. Seven parcels within
four different districts have been identified as 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.
RECOMMENDATION
Council adopt the resolutions.
BOARDS/COMMISSION RECOMMENDATION
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. Seven 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 four different districts and the delinquent payments
total $45,206.91 (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 have been substantial
enough to ever require a draw on the districts' reserve funds to make debt service payments.
This has been the case historically, but looking forward, if delinquencies continue at this rate,
many districts' reserves will most likely be hit. Not only will this be a material event requiring
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 pazcels are subject to iudicial foreclosure once the reserve
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JUNE 21, 2011
Page 3 of 3
fund has been drawn upon regardless of the amount delinquent. This would result in judicial
foreclosure for significantl~e 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 seven parcels
remain unpaid. The next step in the judicial foreclosure process is to remove the special
assessments from the affected property tax bills, and then turn these delinquent accounts over to
outside counsel, Stradling Yocca Carlson & Rauth, for legal action which becomes very
expensive for the property owners.
DECISION MAKER CONFLICT
Staff has reviewed the property holdings of the City Council and has found no property holdings
within 500 feet of the boundaries of the properties which are the subject of this action.
CURRENT YEAR FISCAL IMPACT
There is no direct fiscal impact to the General Fund from this action as CFD/RAD funds are held
in special revenue funds outside the General Fund. Delinquencies in the current fiscal year will
not cause any draws to the CFD/RAD bond reserve funds held by the City's trustee, U.S. Bank.
All costs associated with the judicial foreclosure process are the responsibility of the delinquent
property owners.
ONGOING FISCAL IMPACT
The action to pursue foreclosure is required by the bond covenants. Failure or delayed action
could severely hurt the creditworthiness of the City and add substantial costs to future public
borrowings.
A material event disclosure will be required if at any point in time the City has to draw down on
the CFD/RAD reserves 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 significantly more parcels.
ATTACHMENTS
A. APN Listing of Delinquent Properties
B. Special Financing Delinquency Report -Bonded Debt
Prepared by: Nadine Mandery, Treasury Manager, Finance Dept.
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Attachment A
City of Chula Vista
APN Listing of Delinquent Properties
APN District Installment Amount Owed ~ City State Zip Code
595-231-45-00 RAD 2001-2 38,589.41 i CHULA VISTA CA 91914
644-181-10-00 RAD 2001-2 6,747.45 CHULA VISTA CA 91911
595-805-11-00 CFD 06-IA 5,426.78 CHULA VISTA CA 91914
595-803-36-00 CFD 06-IA 6,185.39 ~ CHULA VISTA CA 91914
595-761-04-00 CFD 06-IA 6,859.84. CHULA VISTA CA 91914
641-180-21-00 CFD 99-1R 5,162.10 CHULA VISTA CA 91913
644-302-29-00 CFD 13-I 6,235.94 CHULA VISTA CA 91913
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City of Chula Vista
Historical Information about Bonded Special Financing District Delinquencies
I
U7
Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2007108 2008109 2009110 2010/11
Delinquency Rate Delinquency Rate Delinquency Rate Delinquency Rate
for the 1 211 012 0 0 7 for the 12110/2008 for the 1 211 012 0 0 9 for the 1 211 012 01 0
District Installment(5) Installment(8) Installment(7) Installment(B)
Reassessment District No. 87-1R (~) 18.13% 5.37% 5.15% 4.49%
Assessment District 88-1 R(z) 0.00% 1.91% 0.86% 2.60%
Reassessment District No. 88-2R (1) 5.79 % 9.15°/ 9.39°/ 8.57
Assessment District 90-1 R(a1 11.03°/ 8.81% 5.57% 6.83%
Assessment District 90-2R(z) 5.08% 10.67% 12.92% 9.84%
Assessment District 90-3R(sl 9.91 °/ 8.01 % 5.58% 5.31
Assessment District 91-1 R(al 6.80% 5.21 % 4.04% 3.94%
Assessment District 92-2R(z) 0.00 % 0.00% 0.00% 0.00%
Assessment District 94-1 9.71 % 8.10°/ 6.26% 5.33°
Reassessment District No.97-2 Refunding Bonds (al 13.49% 7.87% 6.17% 4.82%
Community Facilities District No. 06-I Improvement Area A Special Tax Bonds 16.53 % 17.07°/ 10.78°/ 8.40%
Community Facilities District No. 06-I Improvement Area B Special Tax Bonds 17.03% 13.18% 11.78% 8.70%
Community Facilities District No. 07-I 2004 Special Tax Bonds 19.74 % 11.93% 7.63% 5.91
Community Facilities District No. 07-I 2006 Special Tax Bonds 19.74% 11.93°/ 7.63 % 5.91
Community Facilities District No. 08-I Special Tax Bonds 19.21% 19.72°/ 11.07°/ 6.66°
Community Facilities District No. 12-I Special Tax Bonds 2.47 % 4.26% 3.33 % 3.02°~
Community Facilities District No. 13-I Special Tax Bonds 4.94% 34.32°/ 26.54°/ 17.33%
Community Facilities District No. 2000-1 Refunding Bonds 10.10 % 9.90 % 6.42 % 4.55%
Community Facilities District No. 2001-1 Improvement Area A Refunding Bonds 15.65% 14.46°/ 7.60% 6.18%
Community Facilities District No. 2001-1 Improvement Area B Special Tax Bonds 0.37% l q2q% 2.17% 3.54%
Community Facilities District No. 2001-2 Special Tax Bonds 17.45% 12.53°/ 8.04 % 5.73
Community Facilities District No. 97-3 Refunding Bonds 10.08% 8.36°/ 7.29% 5.57%
Community Facilities District No. 99-1 Refunding Bonds 14.13% 10.64 % 7.02 % 4.99
23 Districts
(1) Reassessment District No. 2005-1 Limited Obligation Refunding Bonds (AO 87-1 and 88-2)
(2) Reassessment District No. 2001-2 (AD 88-1, 90-2, and 92-2)
(3) Reassessment District No. 2001-1 (AD 90-1, 90-3, and 91-1)
(4) Reassessment District No. 2005-2 Limited Obligation Refunding Bonds (AD 97-2)
(5) Delinquency Rate as of February 15th, 2008.
(6) Delinquency Rale as of January 19th, 2009.
(7) Delinquency Rate as of January 18th, 209~p
(8) Delinquency Rate as of January 10, 2011. This data is preliminary and unaudited.
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RESOLUTION NO.2011-
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 SPECIAL ASSESSMENTS 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 assessments 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 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 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 assessments 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 capacity as the legislative body of RAD No.
2001-2 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 of RAD No. 2001-2, 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 law.
DOCSOC/1486502v1 /024036-0014
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Resolution No. 2011-
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 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 assessments 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
len R. oogins `
Attor ey
DOCSOC/1486502v1 /024036-0014
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Resolution No. 2011-
Page 3
EXHIBIT A
List of Delinquent Property (By Assessor's Parcel Number)-Reassessment District No. 2001-2
644-181-10-00
595-231-45-00
DOCSOC/1486502v1 /024036-0014
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RESOLUTION NO.2011-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ACTING AS THE LEGISLATIVE BODY OF
COMMUNITY FACILITIES DISTRICT NO. 06-I (EASTLAKE -
WOODS, VISTAS AND LAND SWAP) OF THE CITY OF
CHULA VISTA ORDERING JUDICIAL FORECLOSURE OF
DELINQUENT SPECIAL ASSESSMENTS PURSUANT TO
THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982
WHEREAS, Community Facilities District No. 06-I (Eastlake -Woods, Vistas and Land
Swap) of the City of Chula Vista ("CFD No. 06-I") 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. 06-I 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. 06-I is authorized and may order that a foreclosure
action be brought to collect the delinquent special assessments due against the properties within
CFD No. 06-I not later than four (4) years afrer 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. 06-I has covenanted with bondholders to institute judicial foreclosure proceedings
against parcels within CFD No. 06-I with delinquent special taxes; and
WHEREAS, the City Council, acting in its capacity as the legislative body of CFD
No. 06-I 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 of CFD No. 06-I, 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 law.
DOCSOC/1486032v t /024036-0014
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Resolution No. 2011-
Page 2
SECTION 2. CFD No. 06-I 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. 06-I 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 assessments 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
t/\ ~ _~
Gen R. Go gins
Ci o y
DOCSOC/1486032v1 /024036-0014
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Resolution No. 2011-
Page 3
EXHIBIT A
List of Delinquent Property (By Assessor's Parcel Number)-Assessment District No. 06-I
595-805-11-00
595-803-36-00
595-761-04-00
DOCSOC/1486032v1 /024036-0014
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RESOLUTION NO. 2011-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ACTING AS THE LEGISLATIVE BODY OF
COMMUNITY FACILITIES DISTRICT N0. 13-I (OTAY
RANCH VILLAGE SEVEN) OF THE CITY OF CHULA VISTA
ORDERING JUDICIAL FORECLOSURE OF DELINQUENT
SPECIAL ASSESSMENTS PURSUANT TO THE MELLO-
ROOS COMMUNITY FACILITIES ACT OF 1982
WHEREAS, Community Facilities District No. 13-I (Otay Ranch Village Seven) of the
City of Chula Vista ("CFD No. 13-I") 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. 13-I 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. 13-I is authorized and may order that a foreclosure
action be brought to collect the delinquent special assessments due against the properties within
CFD No. 13-I 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. 13-I has covenanted with bondholders to institute judicial foreclosure proceedings
against parcels within CFD No. 13-I with delinquent special taxes; and
WHEREAS, the City Council, acting in its capacity as the legislative body of CFD
No. 13-I 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 of CFD No. 13-I, 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 law.
DOCSOC/1486039v1 /024036-0014
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Resolution No. 2011-
Page 2
SECTION 2. CFD No. 13-I is hereby authorized and directed to have the law firm of
Stradling Yocca Cazlson & Rauth ("Special Counsel"), 660 Newport Center Drive, Suite 1600,
Newport Beach, California 92660, institute such actions in the name of CFD No. 13-I 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 assessments 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
Mana Kachadoonan
Director of Finance
Approved as to form by
~__ v~
Gle R. Googins
City ttorney
DOCSOC/1486039v1 /024036-0014
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Resolution No. 2011-
Page 3
EXHIBIT A
List of Delinquent Property (By Assessor's Parcel Number)-Assessment District No. 13-I
644-302-29-00
DOCSOC/1486039v1 /024036-0014
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RESOLUTION NO. 2011-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ACTING AS THE LEGISLATIVE BODY OF
COMMUNITY FACILITIES DISTRICT N0. 99-1 (OTAY
RANCH SPA ONE - PORTIONS OF VILLAGE ONE,
VILLAGE FIVE AND VILLAGE WEST) OF THE CITY OF
CHULA VISTA ORDERING JUDICIAL FORECLOSURE OF
DELINQUENT SPECIAL ASSESSMENTS PURSUANT TO
THE MELLO-RODS COMMUNITY FACILITIES ACT OF 1982
WHEREAS, Community Facilities District No. 99-1 (Otay Ranch Spa One -Portions of
Village One, Village Five and Village One West) of the City of Chula Vista ("CFD No. 99-1")
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. 99-1 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. 99-1 is authorized and may order that a foreclosure
action be brought to collect the delinquent special assessments due against the properties within
CFD No. 99-1 not later than four (4) yeazs 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. 99-1 has covenanted with bondholders to institute judicial foreclosure proceedings
against parcels within CFD No. 99-1 with delinquent special taxes; and
WHEREAS, the City Council, acting in its capacity as the legislative body of CFD
No. 99-1 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 of CFD No. 99-1, 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
DOCSOC/1486021v1/024036-0014 4-15
Resolution No. 2011-
Page 2
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.
SECTION 2. CFD No. 99-1 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. 99-1 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 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 assessments shall be
forwarded to Stradling Yocca Cazlson & 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
Maria Kachadoorian
Director of Finance
Approved as to form by
~~ ~s2_
len R. Croogins
't Atto ey
DOCSOC/1486021 v1 /024036-0014
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Resolution No. 2011-_
Page 3
EXHIBIT A
List of Delinquent Property (By Assessor's Parcel Number)-Assessment District No. 99-IR
641-180-21-00
DOCSOC/1486021 v1 /024036-0014
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