RESOLUTION NO. __________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUNNYVALE 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 INSTALLMENTS AND AUTHORIZING RETENTION OF SPECIAL COUNSEL
WHEREAS, the City of Sunnyvale, a California Charter City has conducted proceedings, resulting in the issuance and sale of bonds or debt pursuant to the Mello-Roos Community Facilities Act of 1982 (Cal. Gov. Code Section 53311, et seq.; "Act"); and
WHEREAS, pursuant to the Act, the City has duly recorded Notices of Special Tax Lien and has duly and regularly levied special taxes, which special taxes and interest and penalties thereon constitute a lien against the parcel of the land against which it was levied until the same are paid, which liens secure in whole or part debt issued pursuant to the Act; and
WHEREAS, certain installments of the special taxes have not been paid when due, and certain special taxes may not be paid when due in the future; andWHEREAS, pursuant to Section 53356.1(a) of the Act, the City is authorized to order the special taxes collected by an action brought in the Superior Court to foreclose their liens; and
WHEREAS, pursuant to Section 53356.1(b) of the Act, the City has covenanted for the benefit of owners of the debt to file such foreclosure actions in its own name on their behalf and is authorized to, as applicable, order the County Auditor to credit delinquent special taxes upon the secured tax roll, thus relieving the applicable County Tax Collector of further duty and regard thereto; and,WHEREAS, the City wishes to retain experienced, qualified counsel to prosecute such judicial foreclosure actions.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City that:
1. The City finds that the Act authorizes the filing of judicial foreclosure lawsuits to collect delinquent special taxes, and hereby orders that the delinquent special taxes listed on Exhibit A attached and incorporated and all future delinquent special taxes as to such property, be collected by action brought in the appropriate Superior Court to foreclose the liens thereof.
2. The City Attorney is authorized to retain Sherman & Feller, a Law Corporation, as special counsel to prosecute the foreclosure actions and to collect, in the name of the City on behalf of the bondholders, all amounts due on account of the special taxes listed in Exhibit A and any subsequent delinquent special taxes levied against such property, as well as attorneys fees and costs incurred.
3. The City Council finds that the Act provides for the payment of the costs and attorneys fees for prosecution of the foreclosure lawsuits authorized by the City on redemption prior to entry of judgment as well as on post-judgment redemption, and hereby authorizes Attorneys to require payment of all costs and all attorneys fees incurred in the applicable foreclosure lawsuit as a condition of such redemption.
4. City personnel in conjunction with special counsel and other City consultants are authorized and directed if and as applicable, pursuant to Government Code Section 53356.2: 1) to record notices of intent to remove the delinquent special taxes from the tax rolls, and 2) to request that the applicable County officials remove current and future delinquent special taxes from the tax rolls.
Adopted by the City Council at a regular meeting held on ______________, 2002, by the following vote:
| AYES:
NOES: ABSENT: |
|
| ATTEST: | APPROVED: |
| ____________________________ | ___________________________ |
| City Clerk | Mayor |
|
(SEAL) |
EXHIBIT A
| City of Sunnyvale CFD No. 1 | |||
| INSTALLMENT | |||
| Owner | APN | DATE | AMOUNT* |
| Sunnyvale LLC | 209-35-012 | June 30, 2002 | $657,853 |
| Sunnyvale LLC | 209-34-018 | June 30, 2002 | $20,346 |
*Exclusive of Delinquent and Redemption Penalties.