HomeMy WebLinkAbout1993-03-16; City Council; 12105; Alga Rd AD 88-01 Delinquent Assessments0-Y OF CARLSBAD - AGE-A BILL &
AB# 12,10.5 TITLE:
MTG. 3116193 ALGA ROAD ASSESSMENT DISTRICT
DEPT. F1N NO. 88-1 DELINQUENT ASSFSSMRNTS
RECOMMENDED ACTION:
Adopt Resolution No. 43 - 5 0 authorizing the firm of Brown, Diven & Hentschke to initiate a lawsuit to foreclose on property with delinquent assessments within the Alga Road Assessment District and directing the County Tax Collector to remove the delinquent amounts from the tax rolls.
ITEM EXPLANATION:
On July 10, 1990, the Alga Road Assessment District was confIrmed at a public hearing and in September, 1990, limited obligation improvement bonds totaling
$19.6 million were issued. 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 Alga Road 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.
Property owner Aviara 5 is currently delinquent for the property tax year 1991-
92 in excess of $138,000, including penalties and interest. The first installments of the 1992-93 tax year is also delinquent and amounts to approximately
$27,000.
Staff is requesting authorization to retain the firm of Brown, Diven & Hentschke, who will file suit to foreclose the liens on the properties. As part of the foreclosure suit, the assessments will be taken off the County tax rolls.
FISCAL IMPACT:
Aviara 5 is responsible for approximately 5% of the debt service. At present,
adequate Alga Road Assessment District reserves exist for payment of debt service, and all debt service payments are current.
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 Alga Road Assessment
District administrative fees.
EXHIBITS:
1. Resolution No. 9 3 c 5 0 ordering judicial foreclosure and removal from the tax rolls of delinquent assessments.
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RESOLUTION NO. 9 3 - 5 0
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ORDERING JUDICIAL FORECLOSURE
OF DELINQUENT ASSESSMENTS PURSUANT TO THE IMPROVE- MENT BOND ACT OF 1915, AND ORDERING THAT THE TAX COLLECTOR BE CREDITED WITH THOSE ASSESSMENTS
WHEREAS, the City of Carlsbad (“Ci@‘) has conducted special
assessment proceedings from time to time, resulting in the issuance and sale
of improvement bonds pursuant to the provisions 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 against which they are made, until the
same are paid; and
WHEREAS, certain assessments and installments have not been
paid when due, and certain installments of those assessments may not be
paid in the future; and
WHEREAS, under the provisions of Section 8830 of the Streets
and Highway 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
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WHEREAS, in the event of assessment delinquency, the City
covenanted with bondholders to foreclose within 150 days of the
delinquency; and
WHEREAS, under the provisions of Section 8833 of the 1915 Act,
when such foreclosure action is ordered, the county 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 Carlsbad, California, as follows:
1. The City hereby orders that the delinquent assessments
listed on Exhibit “A” attached hereto and incorporated herein, and all future
instalhnents of those assessments which are not paid when due, be collected
by action brought in the Superior Court of San Diego County to foreclose the
liens thereof.
2. The firm of Brown, Diven & Hentschke is hereby retained
as special legal counsel and is authorized and directed to institute such
actions in the name of the City to foreclose the liens of all such delinquent
assessments. .
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3. The City’s Finance Director, in cooperation and in
conjunction with special counsel, is authorized to remove delinquent
assessments from the San Diego County tax records.
PASSED, APPROVED AND ADOPTED at a regular meeting of the
City Council on the 16th day of March , 1993, by the following vote,.
to wit:
AyES: Council Members Lewis, Stanton, Kulchin, Nygaard and
Finnila
NOES: None
ABSENT: None
ATTEST:
ALETHA L. RAUTENKRANZ, City Clerk ) (SEAL)
EXHIBIT “A”
ALGA ROAD ASSESSMENT DtTI’RIm NO. 88-1
DELtNQUENTPARCEL!3
PROPERTY OWNER: AVIARA - 5, MCKELLAR DEVELOPMENT
DELINQUENCY DATE: DECEMBER 10, 1991
APN# : 215-592-12
215-592-13
215-592-14
215-592-15
AMOUNT*: $138,882
*Amount is approximate; new penalties may have accrued since the last report from the
County Tax Collector.