Resolution 2002-07
RESOLUTION NO. 2002-7
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY
ORDERING JUDICIAL FORECLOSURE OF DELINQUENT SPECIAL
ASSESSMENT INSTALLMENTS PURSUANT TO THE
IMPROVEMENT BOND ACT OF 1915 AND THE REFUNDING ACT
OF 1984 FOR 1915 IMPROVEMENT ACT BONDS
WHEREAS, the CITY OF GILROY ("City") has conducted special assessment
proceedings from time to time, resulting in the issuance and sale of improvement bonds pursuant
to the Improvement Bond Act of1915 (CaI. Sts. & Hy. Code 08500, et seq., "1915 Act") and
refunding and reassessment proceedings pursuant to the Refunding Act of 1984 for 1915
Improvement Act Bonds (Cat St. & Hy. Code 09500, et seq.; "Refunding Act") (collectively, the
" Acts");
WHEREAS, pursuant to the Acts, the City has duly and regularly issued and filed
and recorded the unpaid assessments and reassessments (collectively, "assessments") which
assessments and each installment thereof and interest and penalties thereon constitute a lien
against the parcel ofland against which it was made until the same are paid, and which liens
secure 1915 and Refunding Act bonds;
WHEREAS, in the past certain installments ofthe assessments have not been paid
when due, and certain installments of assessments may not be paid in the future;
WHEREAS, under pursuant to 1915 Act Section 8830(a) and MR Act Section
53356.1(a), the City is authorized, not later than four years after the payment date of the last
installment of principal on the bonds, to order the delinquent amounts collected by an action
brought in the Superior Court to foreclose the liens thereof;
WHEREAS, the City has covenanted for the benefit of owners of the bonds to file
such foreclosure actions in its own name on their behalf, and in conjunction therewith and as
required by the Act to order the Santa Clara County Auditor to credit delinquent special
assessment installments upon the secured tax roll, thus relieving the Santa Clara County Tax
Collector of further duty and regard thereto; and,
WHEREAS, the City has previously retained Sherman & Feller, a Law
Corporation ("Attorneys"), as its special counsel to collect delinquencies and prosecute such
foreclosure actions and has authorized Attorneys to collect all fees and costs incurred on account
of such action from the redeeming party_
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City as
follows:
RESOLUTION NO. 2002-7
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SECTION 1. The Council finds that the Acts authorize the filing of judicial
foreclosure lawsuits to collect delinquent assessment installments and hereby orders such
foreclosures.
SECTION 2. The Finance Director is authorized and directed on at least an
annual basis, to 1) review the delinquent special assessment installments, 2) make or direct any
efforts to collect those amounts he/she determines to be likely to resu1t in their prompt collection,
3) request that the County Auditor remove delinquent installments from the tax rolls and, 4) after
such removal, transmit the unpaid delinquencies to Attorneys to file and prosecute foreclosure
actions thereon. The Finance Director may delegate this power to departmental personnel as
he/she deems appropriate. This authorization shall remain in effect unless and until it is rescinded
by Resolution of this Council.
SECTION 3. The Council finds that the Acts provide for the payment of the City's
costs and attorneys fees authorized by the City on redemption prior to entry of judgment, and
hereby reaffirms its retention of Attorneys and authorizes Attorneys to require payment of all
costs and all attorneys fees incurred in the applicable foreclosure lawsuit as a condition of such
redemption.
SECTION 4. The Council finds that the Acts authorize the award of the City's
litigation fees and costs in a judgment of foreclosure and hereby authorizes Attorneys to request
that all costs and all attorneys fees incurred in the applicable foreclosure lawsuit be included in the
judgment and to request that that post-judgment fees and costs be included in post judgment
redemptions.
PASSED AND ADOPTED this 22nd day of January, 2002 by the following vote:
AYES: COUNCILMEMBERS: ARELLANO, DILLON, GARTMAN, MORALES,
PINHEIRO, SPRINGER
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: VELASCO
APPROVED:
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Thomas W. Springer, Mayor
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Rh nda Pellin, City Clerk
RESOLUTION NO. 2002-7
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IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of
I, RHONDA PELLIN, City Clerk of the City of Gilroy, do hereby certity that the attached
Resolution No. 2002-7 is an original resolution, duly adopted by the Council ofthe City of Gilroy
at a regular meeting of said Council held on the 22nd day of January, 2002, at which meeting a
quorum was present.
the City of Gilroy this 28th day of January, 2002.
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(Seal)