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Home My WebLink About1992-01-07; City Council; 11495; College Blvd AD 85-02 Delinquent AssessmentsI . CIT* OF CARLSBAD - AGEND-BILL i AB#+i= TITLE: MTG. 117192 COLLEGE BOULEVARD ASSESSMENT DKTRKT DEPT. F1N NO. 85-2 DELINQUENT ASSESSMENTS RECOMMENDED ACTION: Adopt Resolution No. qd -3 authorizing the firm of Brown, Harper, Burns & Hentschke to initiate a lawsuit to foreclose on property with delinquent assessments within the College Boulevard Assessment District and directing the County Tax Collector to remove the delinquent amounts from the tax rolls. ITEM EXPLANATION: In 1986, the City of Carlsbad issued $9.5 million in bonds for the construction of College Boulevard. As part of the district formation and issuance of debt, Council covenanted with bondholders to initiate judicial foreclosure in the event of a delinquency and to commence the procedure within 150 days of the delinquency. The College Boulevard Assessment District property owners are responsible for payment on the debt. Debt service funds and administrative fees are collected by the County Tax Collector through annual assessments placed on property tax bills. One property owner, Carlsbad Airport Centre, is delinquent in payment of assessments. No assessments were paid for property tax year 1990-91 and the total delinquency exceeds $250,000. Carlsbad Airport Centre was notified by certified mail of the delinquency and of the City’s intention to foreclose on the property. Staff and property owner representatives have met and discussed the issue without resolution of the delinquency. Staff is requesting authorization to retain the firm of Brown, Harper, Burns & Hentschke, who will file suit to foreclose the liens on the property. As part of the foreclosure suit, the assessment will be taken off the County tax rolls. FISCAL IMPACT: Carlsbad Airport Centre is one of the major landowners in the College Boulevard Assessment District and is responsible for approximately 25% of the debt service. At present, adequate College Boulevard Assessment District reserves exist for payment of debt service. All debt service payments are current and due to excess reserves, the Reserve Fund still exceeds the bond issue requirement. The delinquent property owner is responsible for all fees associated with the foreclosure after the suit has been filed. If delinquent assessments are paid prior to initiation of the lawsuit, costs will be funded by the College Boulevard Assessment District administrative fees. EXHIBITS: 1. Resolution No. 94 - 3 ordering judicial foreclosure and removal from the tax rolls of delinquent assessments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 92-3 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ORDERING JUDICIAL FORE- CLOSURE OF DELINQUENT ASSESSMENTS PURSUANT TO THE IMPROVEMENT BOND ACT OF 1915, AND ORDER- ING THAT THE TAX COLLECTOR BE CREDITED WITH THOSE ASSESSMENTS WHEREAS,' the City of Carlsbad ("City") has conducted special assessment proceedings from time to time, resulting in the issuance and sale of improvement bonds pursuant to the provi- sions of the Improvement Bond Act of 1915 (California Streets and Highways Code Sections 8500 and following; hereafter referred to as the "1915 Act"); 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 penal- ties thereon constitute liens against the lots and parcels of land against which they are made, until the same are paid; WHEREAS, certain assessments and installments have not been paid when due, and certain installments of those assess- ments may not be paid in the future; 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: WHEREAS, under the provisions of Section 8833 of the 1915 Act, when such foreclosure action is ordered, the county tax i II - I ” . 1 2 collector is to be credited upon the assessment roll then in his 3 hands with the amount charged against him on account of the / assessments to be sued on and to be relieved of I 4 further duty in I 5 regard thereto; 6 NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: 7 SECTION 1. The City hereby orders that the delinquent 8 assessments listed on Exhibit " A " attached hereto and incor- 9 porated herein, and all future installments of those assessments 10 which are not paid when due, be collected by action brought in 11 the Superior Court of San Diego County to foreclose the liens 12 thereof. 13 SECTION 2. The firm of Brown, Harper, Burns & Hentschke 14 is hereby retained as special legal counsel and is authorized 15 and directed to institute such actions in the name of the City 16 to foreclose the liens of all such delinquent assessments. 17 SECTION 3. The City's Financial Management Director, in 18 cooperation and in conjunction with special counsel, is autho- 19 rized and directed to transmit a certified copy of this resolu- 20 tion to the Auditor/Controller's office or other appropriate 21 office of the County of San Diego with a letter stating that: 22 a. The City Council has ordered that the 23 delinquent installments be collected by action brought in the 24 Superior Court of San Diego County to foreclose the liens 25 thereof; 26 b. Pursuant to Streets and Highways Code 27 II Section 8833, the San Diego County tax collector is to be I 28 credited upon the assessment roll then in his hands with the . . 1 2 amounts charged against him on account of the assessments to be 3 sued upon and is to be relieved of further duty in regard 4 thereto; 5 C. All inquiries regarding payment of the 6 delinquent assessments shall be forwarded to the City's special 7 counsel. 8 PASSED, APPROVED AND ADOPTED by the City Council of the 9 City of Carlsbad at its regular meeting held on the 7th day 10 Of January , 1992, by the following vote, to wit: 11 AYES: Council Members Lewis, Kulchin, Larson, Stanton and Nygaard 12 NOES: None 13 ABSENT: None 14 15 ATTEST: (SEAL) 19 20 21 22 23 24 25 26 27 28 , , _” l c + , , EXHIBIT "A" ,I’ COLLEGE BOULEVARD ASSESSMENT DISTRICT No. 8 5-2 ,’ / ’ DELINQUENT PARCELS 7/ PROPERTY OWNER: CARLSBAD NRPORT CENTRE . * DELINQUENCY DATE: DECEMBER 10, 1990 APN APPROXIMATE AMOUNTS* 212-081-01 212-081-02 212-081-03 212-081-04 212-081-05 212-081-06 212-081-07 212-081-08 212-081-09 212-081-10 212-081-11 212-081-13 212-081-14 212-081-15 212-081-17 212-082-01 212-082-02 2 12-082-03 212-082-04 2 12-082-05 212-082-06 212-082-07 212-082-08 212-082-09 212-091-01 212-091-02 212-091-03 212-091-04 212-091-0s . . $6,363 6,191 9,983 4,590 5,895 4,910 4,048 5,230 5,132 8,826 6,560 3,654 5,723 6,461 16,140 6,732 7,668 5,181 7,791 6,757 6,782 21,091 10,328 31,287 6,683 7,718 11,658 11,707 10,624 TOTAL $251,713 * Amounts are approximate; new penalties may have accrued since the last report from the County Tax Collector.