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HomeMy WebLinkAboutCC Resolution 7145 (Delinquent Assessments)RESOLUTION NO. 7145 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL ORDERING FORECLOSURE OF DELIN- QUENT ASSESSMENTS AND ORDERING THAT THE TAX COLLECTOR BE CREDITED WITH THOSE ASSESSMENTS WHEREAS, the City of San Rafael has conducted special assessment proceedings from time to time, resulting in the City's issuance and and sale of improvement bonds pursuant to the pro- visions of the Improvement Bond Act of 1915 (California Streets and Highways Code Sections 8500 and following; hereafter referred to as the "1915 Act"); and WHEREAS, pursuant to the 1915 Act, the City has duly and regularly issued and recorded the unpaid assessments, which assessments and each installment thereof and interest and penalties thereon constitute liens against the lots and parcels of land on which they are made, until the same are paid; and WHEREAS, certain assessments and installments as listed in Exhibit "A" have not been paid when due, and certain of those installments of those assessments may not be paid in the future; and WHEREAS, under the provisions of Section 8830 of the Streets and Highways Code of the State of California this City Council is authorized, not later than four (4) years after the due date of the last installment of principal, to order the same to be collected by an action brought in the superior court to foreclose the lien of those assessments; and WHEREAS, under the provisions of Section 8833 of the 1915 Act when such foreclosure action is ordered, the tax collector is to be credited upon the assessment roll then in his hands with the amount charged against him on account of the assessments to be sued on and to be relieved of further duty in regard thereto. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Rafael as follows: SECTION 1. The City hereby orders that all assessments or installments thereof listed in Exhibit "A" and all future installments of those assessments which are not paid when due be - , _ 0'D A"I1+1AL �, W RESOLUTION NO. 7 45 collected by action brought in the Superior Court of Marin County to foreclose the liens thereof. SECTION 2. The City Attorney is hereby authorized and directed to retain special legal counsel to institute such actions in the name of the City of San Rafael to foreclose the liens of all such delinquent assessments. SECTION 3. The City Finance Director shall transmit a letter to the Auditor/Controller's Office of the County of Marin containing the following information for each delinquency: 1. Assessor's parcel number; 2. Tax roll year; 3. Each delinquent assessment district number or name; 4. Assessment number for each delinquent assessment district; 5. Date of each delinquency; and 6. Amount of each delinquent asessment. In addition, the letter to the Auditor shall state that: 1. The City Council has ordered that the delinquent installments be collected by action brought in the Marin Superior Court of Marin County to foreclose the liens thereof pursuant to this resolution; 2. Pursuant to Streets and Highways Code Section 8833, the tax collector is to be credited upon the assessment roll then in his hands with the amounts charged against him on account of the assessments to be sued upon and is to be relieved of further duty in regard thereto; and 3. All inquiries regarding payment of the delinquent assessments shall be forwarded to the City's special counsel in these matters. I, JEANNE M. LEONCINI, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the Council of said City on Monday , the 5th day of August , 1985, by the following vote, to wit: AYES: COUNCILMEMBERS: Breiner, Nave, Russom & Mayor Mulryan NOES: COUNCILMEMBERS: None ABSENT: COUNC ILMEr4BERS : Frugoli 20-21 B/28 EONCArl-ftt:vlC.lerk J]�iN�QEM. L 2 - EXHIBIT "A" EAST SAN RAFAEL DRAINAGE ASSESSMENT DISTRICT NO. 1 Assessor's Tax Original Phase II Supplementary Parcel Roll Fund Fund Fund Number Year 10-59-66 10-59-70 10-59-71 90-010-22 (Default No. 1983-0303) 82-83 $10,203.50 $ 1,147.00 $ 2,084.50 83-84 19,649.00 2,191.00 3,966.00 84-85 18,891.00 2,088.00 3,763.00 90-010-23 (Default No. 1983-0304) 82-83 $ 1,179.00 $ 132.50 $ 241.00 83-84 2,270.00 253.00 458.00 84-85 2,183.00 241.00 435.00 90-010-24 (Default No. 1983-0305) 81-83 $ 4,906.50 $ 453.50 $ 820.00 83-84 9,448.00 867.00 1,559.00 84-85 9,084.00 825.00 1,479.00 FD 08/06/85 AGREEMENT FOR LEGAL SERVICES FOR SPECIAL ASSESSKENT FORECLOSURE PROCEEDINGS R E C I T A L S A. The parties to this agreement are the CITY OF SAN RAFAEL, a California municipal corporation ("the City") and RAY W. SHERMAN, JR., PROFESSIONAL CORPORATION ("Sherman"). B. The City has conducted special assessment proceed- ings from time to time, resulting in the City's issuance and sale of improvement bonds pursuant to the provisions of the Im- provement Bond Act of 1915 (Sections 8500 and following, California Streets and Highways Code; hereafter referred to as the "1915 Act"). As a result of periodic delinquencies by property owners in payment of installments on account of unpaid special assessments, the City requires legal services from qualified special counsel to conduct foreclosure proceedings in the Marin County Superior Court to secure payment of such delinquencies, including, where necessary, conduct of a public auction of the property. C. The purpose of this agreement is for Sherman to provide the City with special legal services in connection with delinquent assessment installments arising out of special r /C 71 assessment proceedings. This agreement shall be in effect for all 1915 Act foreclosure proceedings which the City refers to Sherman unless this agreement, or a portion of it, is specif- ically revoked in writing, either permanently or in relation to a particular foreclosure- action. D. In consideration of the terms and conditions and the respective rights and obligations set forth, Sherman and the City agree as stated below. A G R E E M E N T 1. The foregoing recitals are true and correct, and Sherman and the City expressly so acknowledge. 2. This agreement shall be dated as of July 8, 1985. 3. Following each payment delinquency date (i.e., December 10 and April 10, respectively, in any year), the City shall determine which assessment installments are delinquent. Upon exhaustion of any preliminary collection efforts which the City may choose to undertake, the City shall provide Sherman with a list of the installments remaining delinquent upon which the City requests that Sherman initiate Superior Court foreclo- sure proceedings. The City shall provide Sherman with the following information: the date and amount of such delin- quencies, the identification of the subject property by 6 assessor's parcel number and by assessment number, the name and address of the respective property owners, and any other neces- sary information requested by Sherman. 4. Sherman shall then prepare an appropriate resolu- tion for adoption by the City Council ordering commencement of the foreclosure proceedings and requesting that the City Finance Director direct the Marin County Auditor to credit the Marin County Treasurer/Tax Collector with the delinquent assess- ments and to relieve the Treasurer/Tax Collector of his duty to collect to such delinquent installments, as required by Ca. Sts. & H. C. § 8833. The city manager of the City shall arrange forthwith for consideration of and adoption of the resolution by the City Council. 5. Upon receipt of certified copies of the City's resolutions Sherman shall prepare and file an appropriate foreclosure complaint, obtain a litigation guaranty, and pre- pare, record and file an appropriate notice of pending action. 6. Following the filing of such foreclosure proceed- ings, Sherman agrees to proceed with all due diligence to prosecute the foreclosure proceedings to completion, either by accomplishing reinstatement of the delinquencies from the respective property owners, or to rendition of judgment of foreclosure and order of sale by the Marin County Superior Court. Following entry of judgment, Sherman shall take all 3 steps reasonably required to cause the property to be sold at public auction. Sherman shall provide the City Attorney with copies of all pleadings filed in the proceedings and shall keep the City Attorney apprised of the status of all proceedings filed on the Citv's behalf. 7. In conducting foreclosure proceedings, Sherman shall advance all out-of-pocket expenses, to be collected concurrently with its attorneys' fees except that the City shall immediately reimburse Sherman for: (a) all amounts billed for litigation or foreclosure guarantees obtained in connection with the proceedings, and (b) all foreclosure costs required to be paid to the sheriff to implement any judgment of foreclosure and order of sale. B. In the event that Sherman's efforts lead to prejudgment reinstatement of a delinquency, Sherman shall collect its reasonable attorneys' fees and all accrued out-of-pocket expenses properly collectible as costs of proceed- ings from the reinstating property owner. If the delinquency is reinstated after judgment but prior to sale, then Sherman shall collect attorneys' fees and costs as awarded by the court and included in the judgment together with any post -judgment costs which properly could be included in the credit bid of the City (as set forth below) from the reinstating property owner. If the foreclosure proceedings result in a public sale of the property, the City shall credit bid, and Sherman is authorized 4 to enter such bid on behalf of the City, the total amount of the judgment (which includes the delinquent installments, statutory penalties thereon, attorneys' fees and costs as awarded by the court), statutory interest thereon, and any other costs incurred after judgment which may properly be collected under the appro- priate statutes. The entity purchasing the property at the sale shall be required to pay the entire amount of the judgment, including Sherman's attorneys' fees and costs with statutory post -judgment interest thereon, whether such purchaser is a third party or the City. Therefore, in the event that the City is the successful bidder at the auction, the City agrees to pay to Sherman the attorney's fees and costs as awarded in the judgment with statutory interest thereon and such post -judgment costs as may be included in the City's credit bid. Upon receipt of attorneys' fees and costs incurred on a particular parcel, whether at sale or by reinstatement, Sherman shall reimburse the City for any costs advanced by the City in relation to that particular parcel. 9. The parties expressly acknowledge that a property owner may initiate bankruptcy proceedings after the foreclosure action is filed and that this presents a risk of delays, pro- tracted proceedings, additional costs and extraordinary services by Sherman. In the event bankruptcy proceedings are initiated by or with respect to a property owner in one or more of the foreclosure proceedings, Sherman may elect to withdraw as special counsel. 5 10. In the event that Sherman withdraws from rep- resentation of the City or the City dismisses Sherman as its special counsel on any particular proceeding prior to Sherman's performance of all services required to be rendered by it under this agreement, Sherman shall be entitled to payment of the reasonable value of its services rendered and the costs incurred by it in the proceeding and shall be entitled to an attorney's lien for these amounts on (a) any portion of reinstatement amounts allocated to attorneys' fees and costs, and (b) any portion of any judgment allocated to attorneys' fees and costs. 11. In the event that, for any reason, whether as provided above in this agreement or under any other circum- stance, Sherman withdraws or is dismissed as special counsel in any such foreclosure proceedings, the City agrees (a) to obtain substitute counsel and to prosecute such foreclosure proceedings to conclusion with all due diligence, and (b) not -to compromise Sherman's ability to recover the reasonable value of its ser- vices rendered and costs incurred, or to compromise the value of Sherman's attorney's lien without Sherman's express, written approval. Dated: j ))J /'0 RAY W. SH��jjRMAN, J . PROFESSIQ�QAL COR ORA' I 7 By RAY 3HERMAN/ JR. It Dated:;;,IDS ATTEST: C ty C er� Approved as,orm: CITY OF SAN RAFAEL a California Municipal Corporation 1 By !l