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HomeMy WebLinkAboutC-2767 - Postponing Payment, Underground Assessment #57 (Hardship Program, underground utilities in Corona Highlands)• • TO: CITY COUNCIL FROM: Public Works Department August 14,1989 CITY COUNCIL AGENDA BY TH'_ CITY COUNCITEM NO. ___f CRY Of NEWPORT BEACH � 2 7� 7 AUG 14 1989 _ APPROVED SUBJECT: HARDSHIP CASES - UNDERGROUNDING UTILITIES IN CORONA HIGHLANDS (Assessment District No. 57) C'�s7�7 _ XeetPt 7� G - X749. — �2�06_�t,!� RECOMMENDATIONS: Authorize the Mayor and City Clerk to execute agreement with two property owners to allow them to postpone payment of their assessments under a hardship program approved by the City Council on July 10, 1989. DISCUSSION: On July 10, 1989, the City Council adopted criteria for determining eligibility of property owners for the City's help in postponing payment of assessment levied under the proceedings of Assessment District 57. The basis of the program is that the City will purchase the bonds against each of the properties, and subject to an agreement, will not demand payment of the principal and interest until such time as the properties change hands. Interest will be charged on all payments postponed. The City's security will be the same as for any other bondholder. The City's program covers only the assessment, and the bond is the City's security. A group of concerned citizens who live in the district have pledged money to help hardship cases reconnect their individual service connections under a program similar to the City's program. Three applications for relief were received. Two were approved; the third was denied because the assessment did not represent a hardship on the applicant. The assessments to be postponed are for $4,695.76 and $6,388.83, a total of $ 11,084.59. �� • Benjamin B. Nolan Public Works Director KP:so EXEMPT RECORDING REft"EST PER GOVERNMENT CODL .,103 RECORDING REQUESTED BY AND WHEN RECORDED PLEASE RETURN TO: 89-456161 -2-7Z7 RECORDED IN OFFICIAL RECORDS OF ORANGE COUNTY, CALIFORNIA City Clerk 3:00 AUG 2 5 1989 City of Newport Beach P.M. 3300 Newport Boulevard M P. O. Box 1768 Newport Beach, California 92659-1768 RECORDER NEWPORT BEACH, CALIFORNIA ("CITY") is made with reference to the following facts which are acknowledged to be true by OWNER and CITY: A. CITY has conducted proceedings for the formation of a special assessment district (No. 57 - Undergrounding Utilities in Corona Highlands) pursuant to the provisions of the "Municipal Improvement Act of 191311, as shown on an assessment diagram recorded on June 27, 1989, in Book 46, Pages 45-47 inclusive, of Maps of Assessment and Community Facilities Districts in the office of the County Recorder of the County of Orange, State of California as Instrument No. 89-339567. B. OWNER is the owner of certain property within the boundaries of Assessment District No. 57, and the property is more fully described as follows: 1. Legal Description: Lot 165, Tract 1257 as per map recorded in Book 40, Pages 19 and 10 of Miscellaneous Maps, Records of Orange County, California; 2. Assessment No. 157 for the designation of the Engineer's Report; and 3. County Assessor's Parcel No. 459-141-07 (1989-90 Assessment Roll). C. The amount of the assessment levied on the property as its share of the costs of forming the District and constructing improvements is Six Thousand Three Hundred .Eighty Eight Dollars and Eighty Three Cents ($6,388.83). 1 Space Above This Line For RegodzS °°Onlay ,;Use AGREEMENT EXEMPT RECORDING REQUEST PER N ;ECEIVED GOVERNMENT CODE 6103 SEP 15 # THIS; AGREEMENT, entered into this day of- �E�1Q1 1989 by and between RUTH H. YOUNG ("OWNER") and the ITY OF NEWPORT BEACH, CALIFORNIA ("CITY") is made with reference to the following facts which are acknowledged to be true by OWNER and CITY: A. CITY has conducted proceedings for the formation of a special assessment district (No. 57 - Undergrounding Utilities in Corona Highlands) pursuant to the provisions of the "Municipal Improvement Act of 191311, as shown on an assessment diagram recorded on June 27, 1989, in Book 46, Pages 45-47 inclusive, of Maps of Assessment and Community Facilities Districts in the office of the County Recorder of the County of Orange, State of California as Instrument No. 89-339567. B. OWNER is the owner of certain property within the boundaries of Assessment District No. 57, and the property is more fully described as follows: 1. Legal Description: Lot 165, Tract 1257 as per map recorded in Book 40, Pages 19 and 10 of Miscellaneous Maps, Records of Orange County, California; 2. Assessment No. 157 for the designation of the Engineer's Report; and 3. County Assessor's Parcel No. 459-141-07 (1989-90 Assessment Roll). C. The amount of the assessment levied on the property as its share of the costs of forming the District and constructing improvements is Six Thousand Three Hundred .Eighty Eight Dollars and Eighty Three Cents ($6,388.83). 1 9-456 b 1 D. CITY, to finance construction of the improvements, is issuing bonds pursuant to the provisions of. the "Improvement Act of 1911." E. CITY has established procedures which allow it to purchase the bonds issued for properties owned by persons who qualify for assistance under the Hardship Rules and Procedures established by City. F. OWNER has applied, and has qualified, for assistance under the Hardship Rules and Procedures and this Agreement is intended to memorialize the understanding of the parties relative to repayment of the principal and interest that would normally be paid to City as owner of the bond. NOW, THEREFORE, IT IS AGREED AS FOLLOWS: 1. CITY will purchase the bond issued for the property. 2. OWNER shall be relieved of the obligation to make principal and interest payments as they become due except as otherwise provided in this Agreement. 3. All payments that would have otherwise been made by OWNER pursuant to the bond, together with interest (at the bond rate) on all deferred payments, shall become due, owing and unpaid at such time as OWNER transfers, sells, or assigns any ownership interest in the property. The term "transfer" shall include, without limitation, any change in ownership caused by the death of the owner, any assignment of an ownership interest in conjunction with any refinancing of the property, and any change in ownership caused by the operation of law or the provisions of any trust. In the event that the full amount of all deferred payments, including interest, is not paid as of the effective date of any transfer of ownership, all remaining payments shall also become immediately due owing and unpaid. 4. In the event of any failure to make payments required by this Agreement upon any transfer of ownership, CITY shall be entitled to bring an action (a) for breach of this Agreement to recover all sums due herein, and (b) to foreclose upon the 2 89-456161 property subject to the terms and conditions of the outstanding bond issued pursuant to the provisions of the "Improvement Act of 191111, and (c) to obtain any other remedy available at law or equity to enforce the provisions and collection under this Agreement. 5. CITY shall be entitled to recover reasonable attorneys fees and costs in the event OWNER defaults in the performance of any obligation required by this Agreement and CITY is obligated to exercise its legal remedies. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the day and year first above written. CITY OF NEWPORT BEACH, a Municipal Corporation Mayor OWNER By: th H. ung kz APTR"OVE-D AS TO FORM: City Attorney ATTEST: 4C �\`,. M City Clerk h 41 F STATE OF CALIFORNIA ) ss. COUNTY OF ORANGGE�, , ) On ( % , 1989, before me, the undersigned, a Notary Public i6l and for the State of California personally appeared Donald L. Strauss known to me to be the Mayor of the City of Newport Beach and Wanda Raggio, known to me to be the City Clerk of the City of Newport Beach, known to me to be the persons whose names are subscribed to this Agreement between Ruth H. Young and the City of Newport Beach, and acknowledged to me that they executed the same. WITNESS my hand and offic' 1 seal. "} OFFICIAL SEAL Notary Public in d for aid State y= am SHAUNA LYN OYIER NOTARYORANGE COUNTY-CRNIA 3 ` Ny Comm. Exofres Jan. 16. 1993 89-156 j 6 . 1 STATE OF CALIFORNIA ) ss. COUNTY OF ORANGE ) On S, 1989, before me, the undersigned, a Notary Public i and fore° the State of California personally appeared Ruth H. �. oung known to me (or proved to me on the basis of satisfactory `evidence) to be the person whose name is subscribed to this Agreement between Ruth H. Young and the City of Newport Beach, and acknowledged to me that she executed the same. WITNESS my hand and official seal. Notary P,6lic in and for said S ate OFFICIAL SEAL 7/31/89 W ..r4o07ARV pU©LIC • CARANGE COUNTY y Comm, Expires Oct. 1 b, 1989 4