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HomeMy WebLinkAbout16 Foreclosures in CFD'sAgendaItem#16BoardofDirectorsReginaWiseSeptember05,2018ItukWIIiQSubject:ConsiderationofResolution2018-18,inRegardstoForeclosuresintheCommunitiesFacilitiesDistrictsandConsiderationofCertainActions1.WHYTHISMATFERISBEFORETHEBOARDThismatterconcernstheannualupdatetotheBoardontheGray’sCrossingandOldGreenwoodCommunitiesFacilitiesDistricts(CFD)delinquenciesandconsiderationofadoptingaforeclosureresolutionandcontractingwithaforeclosureattorneyinordertofacilitatethecollectionofdelinquentCFDassessments.2.HISTORYIn2003,theBoardformedaCFDfortheOldGreenwooddevelopment.In2004,theBoardformedaCFDfortheGray’sCrossingdevelopment.BothCFDswereformedforthepurposeofsellingbondstofinanceinfrastructureforthedevelopments.ThepropertyownersineachCFDhavebeenannuallyassessedthroughtheirpropertytaxbilltopaytheprincipalandinterestonthebonds.Eachyearsince2010,andconsistentwiththebondcovenantrequirements,theBoardhasadoptedaforeclosureresolutionauthorizingstaffandspecialcounseltoproceedwiththeforeclosureprocessonallparcelswithdelinquentassessmentsinbothCFDs.Lastyear,therewere31delinquentparcelsinGray’sCrossingand6delinquentparcelsinOldGreenwood.ThreeofthoseGray’sCrossingparcelswerelargeundevelopedmulti-familyparcels.Theprevioussheriff’ssalefailedtoobtaintheminimumbidonthoseparcels.Theremainingparcelsweresinglefamilyresidentiallots.Ofthe28developedGray’sCrossingparcels,allparcelshavesincepaidtheirdelinquentassessment.OfthesixdelinquentOldGreenwoodparcels,oneparcelisonapaymentplan,oneparcelisintheforeclosureprocessandfourhavesincepaidtheirdelinquentassessment.STATUSOFPRIORDELINQUENCIESACTIONTo:From:Date:3.NEWINFORMATION NEWDELINQUENCIESAttachment1liststheparcelsthatdidnotpaytheirassessmentsthispastyear.Thereare10delinquentparcelsinGray’sCrossingand8delinquentparcelsinOldGreenwood.ThethreelargestdelinquentassessmentsfromGray’sCrossingareagainthethreelargestmulti-familyparcelsmentionedabove.Attachment2isamapofthedelinquentparcelsinGray’sCrossing.Attachment3isamapofthedelinquentparcelsinOldGreenwood.FORECLOSURECRITERIAThebondcovenantdefineswhentheforeclosureproceedingsapply.ThecriteriaforwhentheBoardmustproceedwithforeclosureare:A)Aparcelorpropertyownerispastduemorethan$7,500,orB)Ifmorethan5%oftheamountbilledispastdue,allpastdueparcelsaresubjecttoforeclosure.Thereare10propertyownersinGray’sCrossingthataredelinquent.Thedelinquentassessmentstotaling$346,062exceeds5%oftheamountbilled.TheBoardmustproceedwithforeclosureonalltheparcels,perbondcovenant.Thereare8propertyownersinOldGreenwoodthataredelinquent.Thedelinquentassessmentstotaling$24,251doesnotexceed5%oftheamountbilled.TheBoardhasroutinelyproceededwithforeclosureonalloftheparcels,butisnotrequiredbycovenanttodoso.AllofthepropertyownershavereceivedreminderlettersanddemandletterspreparedbyWilIdanFinancial,theDistrict’sthirdpartyfirmthatadministersthecollectionoftheassessments.SPECIALCOUNSELStradling,Yocca,Carlson,&RauthhavesixofficesthroughoutCaliforniaandhavedoneanexcellentjobincollectingmostofthedelinquencieseachyear.TheproposaltoprovidejudicialforeclosureservicesfortheDistrictisattached(Attachment4).4.FISCALIMPACTThereisnofiscalimpacttotheTruckeeDonnerPublicUtilityDistrictwiththisactionitem.AllchargesincurredrelatedtothejudicialforeclosureprocessaretheresponsibilityofthepropertyownerswithintherespectiveCFD’s.Approximately$513,000wasdrawnfromtheGray’sCrossingReserveFundtomakethe$1.5millionbondpaymentbecauseoftheaccumulateddelinquencies. Mostofthetotalassessmentdelinquencies,asmentionedabove,areduetothethreelargeundevelopedmulti-familyparcels.DrawingfromtheReserveFundisareportableeventtothebondholdersandareportwascompletedbytheDistrict.5.RECOMMENDATION1)AdopttheattachedforeclosureResolution2018-18(Attachment5)authorizingstaffandspecialcounseltoproceedwiththeforeclosureprocessonallparcelswithdelinquentassessmentswithintheCFDsasrequiredbyBondcovenant;and2)AuthorizetheGeneralManagertoexecuteacontractforlegalserviceswithStradling,Yocca,Carlson,&Rauthfortheirworkrelatingtotheforeclosureondelinquentparcels.oilLisaHallMichaelD.HolleyAdministrativeServicesDirectorGeneralManager CFDDelinquentAssessmentsasof8,1518(Excludespenalty,Interestandfees)GraysCrossingCFDATtACHMENT110346,0623,252,7263,598,788DidGreenwoodCFDOwnerLouis&DebraSanchezTruckeeLahontanEquityGroupTruckeeLahontanEquityGroupSarahPurseflTruckeeI,ahontanEquityGroupTruckeelahontanEquityGroupTruckeelahontanEquityGroupAr,dersonNotesNewDelinquencyNewDelinquencyInForeclosureProcessNewDelinquencyNewDelinquencyNewDelinquencyNewDelinquencyOnPaymentPlanforPrioryearsDelinquency24,2516.41830,6692017/2018PriorYearsTotalAPNOwnerPastDuePastDuePastDueNotes19-770-02GraysStation142,9341,437,8631,580,797FaIledAuction’Undeveloped19-870-13innovativeCustomHomes2345-2,345NewDelinquency19-880-091053flushLLC2,426-2,426NewDelinquency43-010-OS10KGC81LLC66,431668,275734,706FailedAuctionSUndeveloped43-010-07LDKGC81LIC113,9791,146,5881,260,567FailedAuction-Undeveloped43-030-04PrimaInvestments5,174-5,174NewDelinquency43-030-07PatSetterETAL5,336-5,336NewDelinquency43-040-OSCameronBaker2,668-2,668NewDelinquency43-040-28InnovativeCustomeHomes2,426-2.426NewDelinquency43-040-34InnovativeCustomeHomes2,345-2,345NewDelinquencyAPN19’?20-0819-750-0819-750-1419-750-1719-750-3S19-760-1419-760-1719-750-432017/2018PriorYearsTotalPastDuePastDuePastDue1,617-1,6173,231-3,2343,2341.6204,8543,231‘3,2343,234-3,2343,234-3,2343,234-3,2343,2344.7988,032 It4itAttachment2a4--10‘Itit‘400’‘St,04‘-944IU!Mp3SaitC%00-CL.C0Cu-30—II0ti/o0•)C000L00>1(ULC>,CCCcoD—C<0toCuU)A‘4015U,zCtCoIaJotoo1s,00setq46’Jq,‘SI0040CSIU, / “-p WoodI a 0 0 I Old Greenwood Status In Foreclosure Process New Delinquency Payment Plan Attachment4aII.straciiigSTRADLINGYOCCACARLSON&RAUTHAPROFESSIONALCORPORATIONCALIFORNIA660NEWPORTCENTERDRIVE,SUITE1600NEWPORTBEACHAttorneysatLawNEWPORTBEACH,CA926608422SACRAMENTOSANDIEGOSANFRANCISCOSANTABARBARASANTAMONICAALLISONE,BURNSCOLORADO949725.4187DENVERABURNS@SYCR.COMNEVADALASVEGASRENOWASHINGTONSLATLEAugust15,2018ViaEmailTruciceeDonnerPublicUtilityDistrictAttn:TriciaPhillips,Sr.Accountant/Analyst11570DonnerPassRoadTruckee,CA96161Re:ProposaltoProvideCommunityFacilitiesDistrict.JudicialForeclosureServiceswithinTruckeeDonnerPublicUtilityDistrictDearMs.Phillips:WethankyouforthisopportunitytopresentaproposaltoprovideforeclosureservicestoTruckeeDonnerPublicUtilityDistrict(“District”).StradlingYoccaCarison&Rauth,aProfessionalCorporationC’SYCR”),wasformedbyfourattorneysin1975.SYCR’sprimaryareasofspecializationarepubliclaw,litigation,publicfinance,tax,generalcorporatelaw,corporatesecurities,realestateandlabor.SYCRhasnineofficesinCalifornia,Nevada,WashingtonandColorado,itsmainlocationinNewportBeach,officesinSanFrancisco,Sacramento,Seattle,Denver,LasVegasandRenowhicharedevotedentirelytopublicfinancework,andofficesinSantaMonica,SantaBarbaraandSanDiegothataredevotedtogeneralcorporatework.WhilethemajorityofourclientsareheadquarteredhereinCalifornia,SYCRrepresentsawidevarietyofcLientslocatedthroughouttheUnitedStatesandinternationallyinconnectionwiththeiractivitiesacrossthenationandaroundtheworld.WearerecognizedasoneoftheleadersintheStateinconnectionwithbothourpubliclawpracticeandpublicfinancepractice.Ourpubliclawattorneysdevotetheirtimeexclusivelytotherepresentationoftheinterestsofpublicagencies,includingwaterdistricts,cities,counties,redevelopmentagencies,schooldistricts,andspecialdistrictsofvariouskinds,andtothesupplyingoflegalservicesinconnectionwiththefinancingsofsuchagencies.Moreinformationregardingthefirmisavailableatitswebsiteatwww.sycr.com.ThankyouforyourconsiderationandtheopportunitytopresentthisproposaltoprovidetheDistrictwiththesuperiorqualityforeclosureservices.Pleaseseetheenclosedproposalfordetailedinformationconcerningthescope,qualityandcostsoftheproposedservicesD0CSOC/1901888v1/022925-0024 August15,2018PageTwoIfafterreviewingtheenclosedproposal,theDistrictdecidestoretainSYCRtoperformjudicialforeclosureservicesonbehalfoftheDistrict,pleaseexecutetheenclosedTermsofRetentionAgreementandreturnsametotheundersigned.Verytrulyyours,EnclosureSTRADLFNGYOCCACARLSON&RAUTHAProfessionalCorporationDOCSOC/19o1888v1/022925-0024 PROPOSALOFSTRADLJNGYOCCACARLSON&RAUTH,APROFESSIONALCORPORATIONTOPROVIDEJUDICIALFORECLOSURESERVICESFORTHETRUCKEEDONNERPUBLICUTILITYDISTRICTDate:August15,2018AllisonE.BurnsSTRADLINGYOCCACARESON&Rwm660NewportCenterDrive,Suite1600NewportBeach,California92660aburns@sycr.comDirectLine:949-725-4187Facsimile:949-725-4100DOCSOCII901888v1/022925-0024 GeneralInformation/ExecutiveSummaryStradlingYoccaCarlson&Rauth,aProfessionalcorporation(“SYCR”)isrecognizedasoneoftheleadersinthestateinconnectionwithourpubliclawpractice.Approximately30membersofthefirmpracticeintheareasofgeneralpubliclaw,publicfinance,economicdevelopment,andpubliclawLitigation,makingusoneofthelargestfirmsintheStateinpubliclaw.Ourpubliclawattorneysdevotetheirtimeprimarilytotherepresentationoftheinterestsofpublicagencies,includingschooldistricts,waterdistricts,cities,counties,redevelopmentagencies,andspecialdistrictsofvariouskinds,andtothesupplyingoflegalservicesinconnectionwiththefinancingsofsuchagencies.Membersofthepubliclawdepartmentarerecognizedexpeitsintheirareasandareoftencalledupontospeakatseminarsforpublicagencies,includingseminarsheldbytheAssociationofCaliforniaWaterAgencies,theCoalitionforAdequateSchoolHousing,theCaliforniaSpecialDistrictSeminars,theCaliforniaLeagueofCities,InternationalRight-of-WayAssociation,NationalAssociationofRedevelopmentandHousingOfficials,theNationalAssociationofBondLawyers,theCaliforniaDebtandInvestmentAdvisoryCommission,andothers.QualificationsofPersonnelwithForeclosureExperienceWhiletheentireresourcesofSYCRwouldbeavailableasneededtoprovidethehighestleveloflegalservicestotheDistrict,weproposethatAllisonE.Burns,DavidC.PalmerandSeanD.WilletbeprimarilyresponsibleforprovidingtherequestedlegalservicestotheDistrict.ftaddition,KellyE.Curran,CPwouldalsobecalledupontoprovideparalegalservicestotheDistrict.AllisonE.Burnsisexperiencedinallaspectsofpublicagencyrelatedlitigation,foreclosureeminentdomain,businesscontractdisputesandCEQAlitigationandisashareholderandheadofthefirm’sPublicLawLitigationDepartmentinNewportBeach.Ms.BumsalsoservesastheCityAttorneytotheCityofLancasterandGeneralCounseltotheChinoBasinDesalterAuthority,AntelopeValleyTransitAuthority,RosamondCommunityServicesDistrict,AntelopeValleyAirQualityManagementDistrict.SantiagoAqueductCommission,SantaMargarita/DanaPointAuthorityandEmeraldBayServiceDistrict.ShewasrecentlynamedgeneralcounseltotheAntelopeValleyTransitAuthorityandisformergeneralcounseltoSanJuanBasinAuthority.Shecurrentlyrepresentsnumerouscities,schooldistrictsspecialdistrictandredevelopmentagenciesinvariousadvisoryandlitigation-relatedmatters.Ms.Burnsisafrequentspeakeratconferencesandseminarsforpublicagencies.Ms.BumsreceivedheriD.fromtheUniversityofCaliforniaatDavisin1998,whereshewasSeniorArticlesEditoroftheU.C.DavisLawReviewandArticlesEditoroftheJournalofJuvenileLawandPolicy.Ms.BumsservedasajudicialexterntoJusticeFredK.MorrisonoftheThirdDistrictCourtofAppealoftheStateofCaliforniaandtotheHonorableGarlandE.BurrelloftheUnitedStatesDistrictCourtoftheEasternDistrictofCalifornia.AcopyofMs.Bums’resumeisenclosed.DavidC.PalmerisaseniorassociateintheFirm’sPublicLawDepartmentanddevotesalmosttheentiretyofhispracticetorepresentationofpublicagencies.HehassignificantexperiencedefendingpublicagenciesinBrownActandPublicRecordsActcases.Mr.PalmerreceivedhisB.A.fromtheUniversityofCalifornia,SantaBarbarawithmajorsinLawandSocietyandCulturalAnthropology.WhileattendingUCSBMr.PalmerwasincludedontheDean’sHonorRoll.In2007,Mr.PalmerreceivedhisJ.D.fromLoyolaLawSchoolandwasadmittedtotheCaliforniaStateBar.DOCSOC/1901888v1/022925-0024 August15,2018PageTwoWhileattendingLoyolaLawSchool,Mr.Palmerwasatwo-yearmemberofthenationallyrankedByrneTrialAdvocacyTeamandwinnerofthe2007ByrneTrialAdvocateAward.Priortoenteringpractice,Mr.PalmerparticipatedintheAmericanBoardofTrialAdvocates(ABOTA)FellowshipinTrialAdvocacy.Mr.PalmerjoinedtheFirminJanuary2011.Mr.PalmerrecentlysucceededMs.BumsasgeneralcounseltotheSanJuanBasinAuthority.Mr.Palmerisexperiencedinawiderangeofpublicagencyrepresentationmatters,including,realestatelitigation,environmentallitigation,foreclosure,eminentdomainandotherrealpropertydisputes.AcopyofMr.Palmer’sresumeisenclosed.SeanB.WilletisanassociatewiththePublicLawLitigationDepartment.Mr.WilletreceivedhisB.S.fromtheUniversityofArizona,EllerCollegeofManagement,withamajorinBusinessIvlanagement.DuringhistimeattheUniversityofArizona,Mr.WiHetcompetedatthehighestlevelofcollegiatesports,asamemberoftheNCAAArizonaWildcatsFootballteam.HereceivedhisJ.D.in2016fromtheUCLASchoolofLaw.AtUCLA,Mr.WilletspentasemesterinterningattheUnitedStatesDistrictCourt,CentralDistrictofCaliforniaunderHon.JudgeAndrewJ.Guilford.Currently,heisamemberoftheOrangeCountyBarAssociation.Mr.Willet’spracticeatSYCRiscompletelydedicatedtopubliclawlitigation.AcopyofMr.Willet’sresumeisenclosed.KellyE.Curran,C?isaCertifiedParalegalwiththePublicLawDepartmentandhasbeenwiththefirmsince1997.Ms.CurranreceivedherBachelorofArtsdegreefromtheUniversityofCaliforniaatSantaBarbarain1992withamajorinLawandSociety.In1993,shereceivedherparalegalcertificatefromtheUniversityofCaliforniaatDavis.In1997,Ms.CurranbecameaCertifiedParalegalthroughtheNationalAssociationofLegalAssistants.AcopyofMs.Curran’sresumeisenclosed.ForeclosureExperienceSYCRhasrecentlyrankedamongthetopthreebondcounselfirmsintheStateofCalifornia.Asanecessaryadjuncttobondcounselservices,ourpubliclawlitigationdepartmentisfrequentlyengagedbyourpublicagencyclientstoinitiatejudicialforeclosureactions.Forexample,Ms.BumsrepresentsandhasrepresentedtheCityofLancasterindozensofAssessmentDistrictandCommunityFacilitiesDistrictforeclosurematters,theCityofChulaVistainnumerousAssessmentDistrictandCommunityFacilitiesDistrictforeclosurematters,theRomolandSchoolDistrictinseveralCommunityFacilitiesDistrictforeclosurematters,theCityofOceansideinanumberofCommunityFacilitiesDistrictforeclosurematters,CaliforniaStatewideCommunitiesDevelopmentAuthorityinseveralCommunityFacilitiesDistrictForeclosurematters,EasternMunicipalWaterDistrictinAssessmentDistrictForeclosurematters,aswellastheGoldenHillsCommunityServicesDistrictinStreetImprovementBondforeclosurematters.BecauseSYCRandthePublicLawLitigationDepartmentheadedbyMs.Burnsinparticularhashandledahighvolumeofforeclosurecasesforpublicagencies,SYCRhasdevelopedformsandprocedureswhichallowustostreamlinetheforeclosureprocessandprovidesuperiorserviceatalowcost.DOCSOC/190!888v11022925-0024 August15,2018PageThreeTechnicalProposalofForeclosureServicesBecausemanyofthecasesareuncontested,thevastmajorityoftheforeclosureservicesprovidedbySYCRonbehalfofourpublicagencyclientsareperformedbyparalegals,andinparticular,KellyE.Curran,CPofouroffice.Generally,withtheexceptionofcourtappearancesandcontestedmatters,Ms.Curranisresponsibleforallaspectsoftheforeclosureprocess.Ms.Curranhasworkedextensivelywithmanypublicfinancefirms,includingMs.MaureenColeman,NancyCastellanosandMs.RichelleTagueatWilldanFinancial,Mr.TrevorSpeerwithNBS,andMr.NehalThumaratDavidTaussig&Associates.Asapartofourfirm’sforeclosureprocedure,wearecommittedtoworkinginconnectionwiththeDistrictanditsdelinquencymonitoringteampriortofilinglitigationinanefforttoresolveasmanyofthedelinquenciesaspossiblebeforeincurringlegalfeesforlitigation.Wehavefoundthat,uponreceivingademandletterfromalawfirmonbehalfoftheDistrict,propertyownersareoftenwillingtopaythedelinquencyratherthanhavethecasegotolitigation.Inusingdemandletters,wehavebeenabletorecoverstrippingfees(feesforremovaloftaxesfromtheCountyTaxRoll)aswellascostsandattorneys’feeswithpaymentmadedirectlytotheDistrict.Manypropertyownersseethebenefitofpayingsuchcostsincludedinthedemandletterratherthanfacinghighercostsastheresultoflitigation.Allnegotiationsthroughthisprocessaredonewiththeultimatecommunicationandapprovalfromtheclient.Incircumstanceswheredelinquenciesonapropertyareexcessive,itisinthebestinterestoftheDistricttofilelitigationasquicklyaspossible.Thisprocesshasbeenverysuccessifilinthepastwherethepartieseitherreachasettlementagreementforpayment,includingcostsandattorney’sfees,orthematterproceedstojudgmentforjudicialforeclosureandorderofsale.Onceajudgmentisobtained,SYCRproceedstoobtainaWritofSalefromthecourtandworkwiththeCountySheriffsDepartmenttoarrangeandscheduleaforeclosuresale(orauction)oftheproperty.Throughoutthepre-litigationandforeclosurelitigationprocess,wewillremaininconstantcommunicationwiththeDistrict’sdelinquencymonitoringteam.StatusreportscanbepreparedasfrequentlyasneededbytheDistrict,andanannualstatusreportregardingallcurrentlitigationanddelinquencystatusispreparedattheendoftheyear.RatesForLe%alServicesAllattorneys’feesandcostsarerecoverableinaforeclosurelawsuitfromtheproceedsofthesale,sotheDistrictwillnotultimatelybeout-of-pocketfortheseamounts.Weproposethatourfeesforprovidingthelegalservicesdiscussedabovebebasedupontherateof$430perhourforAllisonB.Bums,and$345perhourforDavidC.PalmerandSeanD.Willet.Therateofotherattorneysinourofficewouldrangefrom$280perhourto$480perhour,dependingontheindividualassignedtothematter,and$160perhourforparalegalservices.Theseratesareinclusiveofoverheadandsecretarial/clericalsupport,butexclusiveofacwalcostswemayincurasdescribedbelow.DOCSOC/1901888v1/022925-0024 August15,2018PageFourAlternatively,andaswehavediscussed,wecanprovidethefollowingservicesonafixed-feebasis:I.Prepareandsendtwodemandletters(andmakefollow-upphonecallstotheextenttelephoniccontactinformationisavailable)advisingtheownersthattheDistricthasauthorizedforeclosureproceedingsandthatthecostsassociatedwiththeirfailuretopaywillincreasedramaticallyintheeventtheDistrictisrequiredtofileaforeclosureaction.SYCRwillperformtheseservicesforthefixedfeeof$655.00.2.PrepareandfilethecomplaintandpreparethelispendensforrecordingwiththeCountyrecorder.SYCRwillperformthisserviceforthefixedfeeof$2,750.00.Theforegoingfixed-feeratesdonotincludeoutoftpocketcostsincurredbySYCR,suchasCountyrecordingfeesorserviceofprocessfees.AllservicesprovidedafterpreparationandfilingoftheComplaintanduspendenswillbebilledatthehourlyratessetforthabove.Allfeeswouldbebilledmonthly.Themonthlystatementwillsetforththenatureoftheservicesprovidedduringtheprecedingmonthandthetotalnumberofhoursattributabletoprovidingsuchservices.Inadditiontotheabovefees,wewouldbereimbursedforourout-of-pocketexpensesincludingfacsimiletransmissions,documentdeliveryandmessengerfees(baseduponactualchargesincurred),photocopying,wordprocessing,electronicresearch(baseduponactualchargesincurred),courtcosts,andtravelatthedirectionoftheDistrict.Theratesforindividualattorneysaresubjecttochangefromtimetotimeupon60dayspriornoticetoyou.ReferencesPleasefeelfreetocontactanyorallofthefollowing:I.Ms.PamelaStatsmarm,FinanceDirectorfortheCityofLancasterat(661)723-6035.2.SethHeeren,AssistantSuperintendentofBusinessServicesforSanJacintoUnifiedSchoolDistrictat(951)929-7700.3.JamesHamill,ManagingDirectorforCaliforniaStatewideCommunitiesDevelopmentAuthorityat(925)476-5644.ConcludingCommentsWeareverypleasedtobeconsideredbytheDistrictasitslegalcounselforjudicialforeclosureservices.Wewillgladlyprovideadditionalreferencesuponrequest.SYCRoffersreliable,responsivecounselthatcanprovidethehighestqualityofserviceavailableatareasonablecost.SYCRbelievesresponsivenessiscriticalandispreparedtocommittoyoutheresourcestoassureyouthatwewillbetherewhenyouneedus.DOCSOC/I90!888v11022925-0024 ALLISONE.BURNSAdmittedtoBar:StateBarofCalifornia,1998.U.S.DistrictCourtofCalifornia,CentralandSouthernDistricts,1998.PracticeEmphasis:Publicagencygeneraladvisoryandlitigationrepresentation,realpropertyacquisitionsanddisputes,environmentallawandwater.Education:J.D.1998,UniversityofCalifornia,DavisSchoolofLaw.SeniorArticlesEditor,U.C.DavisLawReview.ArticlesEditor,JournalofJuvenileLawandPolicy.BA.1995,withhonors,UniversityofCalifornia,Irvine.CampuswideHonorsProgram;AssociatedStudentsLegislativeCouncil;ChairmanGreekPresidents’Council.LegalExperience:Transactionalandadvisorylegalservicesrelatingtogeneralmunicipallaw,realestate,economicdevelopment,Californiawaterlaws,theCaliforniaEnvironmentalQualityAct(CEQA),conflictofinterestandopenmeetinglaws.Substantialexperienceinpublicandcommerciallitigationincludingeminentdomain,foreclosure,businesscontractdisputesandCEQAlitigation.JudicialExterntoJusticeFredK.MorrisonoftheCaliforniaCourtofAppeal,ThirdDistrictandtotheHonorableGarlandE.Burrell,Jr.oftheU.S.DistrictCourt.EasternDistrictofCalifornia.ProfessionalAssociations:StateBarAssociationofCalifornia.Member,EnvironmentalandPublicLawSections.OrangeCountyBarAssociation.Member,BusinessLitigationandEnvironmentalSections.InternationalRightofWayAssociationReferences:MarkV.Bozigian,CityManager,CityofLancaster(661)723-6133CurtisPaxton,GeneralManager,ChinoBasinDesalterAuthority(909)218-3729MichaelDunbar,GeneralManager,EmeraldBayCommunityServicesDistrict(949)494-85725DOCSOC/1901888v1/022925-0024 DAVIDC.PALMERAdmittedtoBar:StateBarofCalifornia,2007U.S.DistrictCourtofCalifornia,CentralDistrict,2007U.S.DistrictCourtofCalifornia,Northern,EasternandSouthernDistricts,2008PracticeEmphasis:Publicandcommerciallitigation,environmentallawandforeclosureactions.Education:•J.D.,LoyolaLawSchool,2007•B.A.,UniversityofCalifornia,SantaBarbara,2004LegalExperience:Experiencedinallfacetsofpublicagencyrepresentationandlitigation,includingenvironmentallitigation,foreclosureactions,contractdisputes,businessandcommercialdisputes.ProfessionalAssociations:StateBarAssociationofCalifornia.OrangeCountyBarAssociation.DOCSOC/1901888v11022925-0024 SEANP.WILLETAdmittedtoBar:StateBarofCalifornia,2016PracticeEmphasis:EmphasisinPublicLawLitigationincludingthedefenseofpublicentitiesinlitigationarisingunder;environmentaldisputes,includingtheCaliforniaEnvironmentalQualityAct(“CEQA”);landuseandzoningdisputes;redevelopmentandeconomicdevelopmentdisputes;affordablehousingandreplacementhousingcompliance;andthedissolutionofredevelopment,includingtheCaliforniaCommunityRedevelopmentLaw(“CRL”)Education:J.D.,UniversityofCaliforniaLosAngeles,SchoolofLaw,2016ArticlesEditor,PacificBasinLawJournalCoordinatingMember,UCLASportsLcmi’FederationB.S.,UniversityofArizona,2013LegalExperience:JudicialExterntoHon.JudgeAndrew3.Guilford,TheUnitedStatesDistrictCourt,SantaAnaCaliforniaDOCSOC/1901888v1/022925-0024 KELLYE.CURRAN,CPPracticeEmphasis:Litigationinareasofpubliclaw,foreclosure,environmentallawandcondemnation.Education:ParalegalCerEificate,UniversityofCalifornia,Davis—ParalegalCertificateProgramapprovedbytheAmericanBarAssociation,1993B.A,,UniversityofCalifornia,SantaBarbara,1992LegalExperience:Twentyyears’experienceinPublicLawLitigation,includingeminentdomain,foreclosure,CEQAandcontractdisputeswithresponsibilitiesincludetrialpreparationandassistance;preparationofpleadingsincludingcomplaints,discoveryandmotions;legalresearch.AchievementsandProfessionalAssociations:CertifiedParalegal-December1997CaliforniaNotaryPublicsinceDecember1997NationalAssociationofLegalAssistants-membersince1996NationalNotaryAssociation-membersince1997OrangeCountyParalegalAssociation-BoardofDirectors1996&1997OrangeCountyParalegalAssociation-member1995-1998DOCSOC/1901888v1/022925-0024 TERMSOFRETENTIONOFSTR4DLINGYOCCACARLSON&R4UTH1.FeesandCosts.StradlingYoccaGodson&Rauthiscompensatedforitsservicesbasedprimarilyonthevalueoftheservicesandthetimespentperformingthem.Thisincludesthetimespentonconferences,courtappearances,depositions,travel,research,draftingdocuments,andoilieractivities,Ourcurrenthourlyratesrangefrom5280toS480.Wealsobillforservicesperformedbyourparalegals,seniorlegalassistants,andotherprofessionalpersonnelatratespresentlyrangingbetween$135and$200perhour.Theseratesaremodifiedfromtimetotime.Theamountoffeeschargedonastatementisdeterminedbystartingwiththehoursexpendedbythedifferentattorneysandotherprofessionalpersonnelinvolved.Theseamountsarethenadjustedforfactorssuchastheextentofanyduplicationofattorneyeffort,unusualefficiency(orlackofefficiency),thenoveltyordifficultyoftheissuesinvolved,thetimedemandsoftherepresentation,andunusuallygood(orunusuallydisappointing)results.Thefirmalsochargesforvariouscostssuchascopying,telephonecharges,computerizedlegalresearch,wordprocessingand/orothercomputertime,overtimecosts,messengerservices,travel,filingfeesandothercosts.Billsforsomecostsarepassedondirectly,suchasbillsforceLtifiedshorthandreporters,technicalconsultants,appraisersandotherprofessionals’fees.Paymentisduewithintendaysofthedateofeachfeeandcostsstatement.Overduestatementswillbechargedinterestof10%perannum,compoundedannually.Ifyouwishtoquestionanycharge,youhaveagreedtodosowithintendaysofthestatementdate.Pleasecontactthepartnerinchargeofyourmattersifyouhaveanyquestionsaboutanyofyourbills.2.EstimatesNotBinding.Althoughwemayfurnishestimatesoffeesorcoststhatweanticipatewillbeincurred,theseestimatesarenotintendedtobebinding,aresubjecttounforeseencircumstances,andarebytheirnatureinexact.3.TerminationbyYou.Youhavetherightatanytime,inyoursolediscretion,toterminateourservicesandrepresentation.Uponourten-nination,youwillremainobligatedtopayforallservicesrenderedandcostsorexpensespaidorincurredonyourbehalfpriortothedateofsuchterminationorwhicharereasonablynecessarythereafter.4.TerminationbyUs.Wereservetheabsoluterighttowithdrawfromrepresentingyouif,amongotherthings,youfailtohonorthetermsofouragrccmcnt,youfailtocooperatefrillyorfollowouradviceonamaterialmatter,oranyfactorcircumstanceoccursthatwould,inourview,renderourcontinuingrepresentationunlawfulorunethical.Ifweelecttowithdraw,youwilltakeallstepsnecessarytofreeusofanyobligationtoperformfurtherservices,includingtheexecutionofanydocumentsnecessarytocompleteourwithdrawal,andwewillbeentitledtobepaidatthetimeofwithdrawalforallservicesrenderedandcostsandexpensespaidorincurredonyourbehalf.Ifnecessaryinconnectionwithlitigation,wewouldrequestleaveofcourttowithdraw.OOCSOC/1901888v1/022925-0024 5.DateofTermination.Ourrepresentationofyouwillbeconsideredterminatedattheearlierof(i)yourterminationofourrepresentation,(ii)ourwithdrawalfromourrepresentationofyou,or(iii)thesubstantialcompletionofoursubstantiveworkforyou.6.RelatedActivities.Ifanyclaimoractionisbroughtagainstusoranypersonneloragentsofthefirmbasedonyournegligenceormisconduct,orifweareaskedtotestifyasaresultofourrepresentationofyouormustdefendtheconfidentialityofyourcommunicationsinanyproceeding,youagreetopayusforanyresultingfees,costs,ordamages,includingourtime,evenifourrepresentationofyouhasended.7.NoGuaranteeofOutcome.Wedonotandcannotguaranteeanyoutcomeinamatter.8.Insurance.InaccordancewiththerequirementsofCaliforniaBusinessandProfessionsCode§6148,weadviseyouthatthisfirmmaintainsprofessionalerrorsandomissionsinsurancecoverageapplicabletotheservicestoberenderedtoyou.9.Client.Thisfinn’sclientforthepurposeofourrepresentationisonlythepersonorentityidentifiedintheletteraccompanyingtheseTermsofRetention.Unlessexpresslyagreed,wearenotundertakingtherepresentationofanyrelatedoraffiliatedpersonorentity,noranyparent,brother-sister,subsidiary,oraffiliatedcorporationorentity,noranyofyourortheirofficers,directors,agents,oremployees.10.PaymentNotwithstandingDispute.Intheeventofanydisputethatrelatestoourentitlementtoanypaymentfromyou,allundisputedamountsshallbepaidbyyou.Anyamountsinanyclienttrustaccountheldonyourbehalf,sufficienttopaythedisputedamounts,shallcontinuetobeheldinsuchtrustaccountuntilthefinaldispositionofthedispute.11.Arbitration.INTHEEVENTOFADISPUTEREGARDINGFEES,COSTS,ORANYOTHERMATtERARISINGOUTOFORRELATEDINANYWAYWHATSOEVERTOOURRELATIONSHIPWITHYOU,ORYOUROROURPERFORMANCEOFTHISAGREEMENT,INCLUDINGTHEQUALITYOFTHESERVICESWIIICHWERENDER,THEDISPUTESHALLBEDETERMINED,SETTLEDANDRESOLVEDBYCONFIDENTIALARBITRATIONINORANGECOUNTY,CALIFORNIA.ANYAWARDSHALLBEFINAL,BINDINGANDCONCLUSIVEUPONTHEPARTIES,ANDAJUDGMENTRENDEREDTHEREONMAYBEENTEREDiNANYCOURTHAVINGJURISDICTIONTHEREOF.SHOULDYouELECTTOHAVEANYFEEDISPUTEARBITRATEDPURSUANTTONONBINDINGARBITRATIONUNDERSTATUTORYORCASELAW,THENSUCHNONBINDiNGARBITRATIONSHALLDETERMINEONLYTHEISSUEOFTHEAMOUNTOFFEESPROPERLYCHARGEABLETOYou.ANYOTHERCLAIMSORDISPUTESBETWEENUS,INCLUDINGCLAIMSFORPROFESSIONALNEGLIGENCE,SHALLREMAINSUBJECTTOBINDINGARBITRATIONPURSUANTTOTHISAGREEMENT.Arbitrationmaybedemandedbythesendingofwrittennoticetotheotherparty.Ifarbitrationisdemanded,within20daysofthedemandyoushallpresentalistoffivequalifiedindividualswhowouldbewillingtoservethatyouwouldfindacceptabletoactasarbitrator.To2DOCSOC/1901888v1/022925-0024 serveasarbitrator,theindividualmustbearetiredjudgehavingservedonanyfederalcourtortheCaliforniaSuperiorCourtorhighercourtintheStateofCalifornia.Within20daysofreceivingyourlist,wemayatoursolediscretion(i)selectanyindividualfromthatlistandthatindividualshallserveasthearbitrator,or(ii)proposeourownlistoffiveindividualsforarbitrator.Ifwechoosetopresentaseparatelist,youi-naywithin20daysselectanyindividualfromthatlistandthatpersonshallserveasarbitrator.lfnoarbitratorcanbeagreeduponattheendofthisprocess)eachofusshallselectoneindividualfromourownrespectivelistandthosetwopersonsshalljointlyselectthearbitrator.ThearbitrationshallbeconductedpursuanttotheproceduressetforthintheCaliforniaCodeofCivilProcedure§1260etseq.,andinthatconnectionyouandweagreethat§1283.05thereofisapplicabletoanysucharbitration.Nothinghereinshalllimittherightofthepartiestostipulateandagreetoconductthearbitrationpursuanttothethen-currentrulesoftheAmericanArbitrationAssociation,theJudicialArbitration&MediationServices,oranyotheragreed-uponarbitrationservices.12.Atyourdirection,SYCRwilLcontractwithcertainexpertwitnessesorotherconsultantsnecessarytoyourrepresentation;anyandallcostsforsuchservicesshallbeyoursoleandexclusiveresponsibility.Date:.2018AGREED:3DOCSOC/1901888v1/022925-0024 Attachment5RESOLUTIONNO.2018-18TRUCKEEDONNERPublicUtilityDistrictRESOLUTIONOFTHEBOARDOFDIRECTORSOFTHETRUCKEEDONNERPUBLICUTILITYDISTRICTACTINGONITSOWNBEHALFANDASTHEGOVERNINGBODYOFALLOFITSCOMMUNITYFACILITIESDISTRICTS(OLDGREENWOODNo.03-1ANDGRAYSCROSSINGNo.04-1)AUTHORIZINGRETENTIONOFSPECIALCOUNSELWHEREAS,theTruckeeDonnerPublicUtilityDistrict(the“TDPUD”)hasconductedproceedingsresultingintheformationofCommunityFacilitiesDistricts(“CFD5”;theDistrictandtheCFDsarecollectivelyreferredtoas“District”)andtheissuanceandsaleofbondsordebtpursuanttotheMello-RoosCommunityFacilitiesActof1982(Cal.Gov.CodeSection53311,etseq.;the“Act);andWHEREAS,pursuanttotheAct,theDistricthasdulyrecordedNoticesofSpecialTaxLienandhasdulyandregularlyleviedCFDspecialtaxes,whichspecialtaxesandinterestandpenaltiesthereonconstitutealienagainsttheparcelofthelandagainstwhichitwaslevieduntilthesamearepaid,whichlienssecureinwholeorpartdebtissuedpursuanttotheAct;andWHEREAS,certaininstallmentsofthespecialtaxeshavenotbeenpaidwhendue,andcertainspecialtaxesmaynotbepaidwhendueinthefuture;andWHEREAS,pursuanttoSection53356.1(a)oftheAct,theDistrictisauthorizedtoorderthespecialtaxescollectedbyanactionbroughtintheSuperiorCourttoforeclosetheirliens;andWHEREAS,pursuanttoSection53356.1(b)oftheAct,theDistrictcovenantedforthebenefitofownersofthedebttofilesuchforeclosureactionsonbehalfofthedebtholdersandareauthorizedtoordertheCountyAuditortocreditthedelinquentspecialtaxesuponthesecuredtaxroll,thusrelievingtheCountyTaxCollectoroffurtherdutyandregardthereto;and,WHEREAS,theDistrictwishestoretainexperienced,qualifiedcounseltoprosecutesuchjudicialforeclosureactions,NOWTHEREFORE,BEITRESOLVEDbytheBoardofDirectorsoftheTDPUDactingonitsownbehalfandastheLegislativeBodyofalloftheDistrictCFDsthat:1.TheBoardfindsthattheActauthorizesthecommencementofjudicialforeclosureproceedingstocollectdelinquentspecialtaxes,andherebyordersthatthedelinquentspecialtaxeslistedontheattachedExhibitsAlandallfuturedelinquentspecialtaxesastosuchproperty,becollectedbyactionbroughtintheappropriateSuperiorCourttoforeclosetheliensthereof.Resolution2018-18 2.TheDistrictPresidentoftheBoardisauthorizedtoretainStradlingYoccaCarison&Rauth,alawfirm,asspecialcounselonthetermssetforthintheagreementpresentedtotheBoardtoprosecutetheforeclosureactionsandtocollectonbehalfoftheCFDsallamountsdueonaccountofthespecialtaxeslistedinExhibitsAlandanysubsequentdelinquentspecialtaxes.3.TheBoardfindsthattheActprovidesforthepaymentofthecostsandattorneysfeesforprosecutionoftheforeclosuresauthorizedbytheDistrictandherebyauthorizesAttorneystorequirepaymentonitsbehalfofallcostsandallattorneysfeesincurredastoeachdelinquentparcelasaconditionofsuchredemptionasprovidedintheagreement.AdoptedbytheBoardofDirectorsoftheTruckeeDonnerPublicUtilityDistrictactingonitsownbehalfandastheLegislativeBodyofallofitsCommunityFacilitiesDistrictsataregularmeetingheldonSeptember5,2018,bythefollowingvote:AYES:NOES:ABSTAIN:ABSENT:TRUCKEEDONNERPUBLICUTILITYDISTRICTTonyLaliotis,PresidentATTEST:ShannaD.Kuhlemier,CMC,DistrictClerkResolution2018-182 ExhibitAlCCCCCCCCCCo6o556oa6oaaoo0000000000000—————————————*—8SS8SSSSS5585550didi0000di000000IJ00aXU.0ga2.t00.0=(U(0I——ra,6>‘o0.In0I0C0CaaI0CC00000I..I—SSIq0oiF.F-F--n‘9a,ci66gcioaZ000—0‘9‘9‘9CCCVVS5oaaa,55ooo5a,xxxxxxxxxxxxxx0aaU2=U‘9C0aDba0-i‘00Caa,aaa,aCCa(NC(N2a240tCCCazC—‘3C..,aa0‘U4IaLU(0aIC4=tCt—a<aaa<aU.aaaaaaaaaaaaaaaa444444444444444aa0 00€1-H_J_JH—000€0€0X0€x0-,0a.ID00a8E0€,10aIHO.88j800bNNS34ejrj000€(C0€(Cr000Se0010C(I00C(I00H0(S0eC0€00C00HNeFSCNN•0C(ICCCHt00.a,x=a)oa,n0•C0a0aI.a)CC00000L.I-HH00000-JHCH0€0€€08HN4N€0(C00€I0I(CCS3IC0-JCN0N8SN€0€0€00€Cg0CCCCCI00C(C>(C>0I0(CCD€0SIHH—H—H500055NN(CNN&SSSSSSSSSSS50000000SHH00HH550€0€0€0€0€SS00——NNHS5oo50g00(C00C00000<<<<<<<I(C0N0€C,0€0-0S0€0(C0N(CNSC,SC0V0€CCa-Jzt000B0€0€CCC00..ICC-CSCVVS<0-10<a0-0000-C-C-C Special Tax Delinquency Detail Report Truckee Donner PUD District CFDICFD 04-1 (Gray’s Crossing)-Community Facilities District No.04-1 (Gray’s Crossing) A Active ra Freedosure Action flags:R Reminder Letter Sent N Noire of Intenll Ship Requested U SBE H Handbilled P Paid Ott S SpiLt 0 Demand Letter Sent I Removat nfltmed F Parcel in Fwedosure S Bankiupt F Finished L Fcredosure Letter Sent P Payment Pten S HdddSpedat Circumstance .1 Jedgennent R Rettended Penalties &tnterest Good mm 8131118 Spat tat APN APN Original Owner Name Address Clly/Stat&ZIp Situs Address Due Date lnslatlmeM Penalty Interest Fees beat Due Ftags Circumstance Data Dais Status Assessment Amount Data A ‘a 1211012013 48,334.90 4,83349 36,251.90 0.00 8941939 bE 05/1812018 Ala 04/1012014 4e,334 90 4,83349 36251.90 0.90 89,419.39 IF 0511812018 A ta 12/102014 4851200 4851 21 27651 84 0,03 01015.11 TLF 0511812018 Ala 04(1012015 40,51200 485121 27651 84 0.90 0101511 TLF 0511812010 A ía 12/1012015 4830001 4.03000 18837.00 090 71967.01 TF 0511812010 A ra 04(1512016 48,300.01 4030.00 18037.00 0.90 1196701 IF 0511812018 A (a 1211012016 49,007.90 4,90071 10291.54 0.00 64,199.31 ThF 0511812018 Ala 04(1012011 49,007.00 4,900.71 10,291 54 0.00 64,199.31 TLF 0511012018 Ala 12/10/2017 33,215.58 3,321.56 99046 0.90 37.53360 TL 05116/2018 Ala 04110/2010 33215.58 3.321,56 990.46 0.90 37,53380 IL 0511612010 Tolel Delinquenl:$734708.14 $73,470.64 $502,609.72 0.00 $1,310,78e.so 043-0l0-007’000 A Fa LDKGC 81 aC 3140 PEACEKEEPER WAY MCCLELLAN,CA 12/1012009 $13,524.20 51,35242 $19,080.28 0890 534,756.90 IF 0511812018 95652 A ‘a 04(1512010 13,52420 1,35242 19,08020 0.00 34,156.90 IF 0511812018 Ala 1211012010 71,526.80 7,15268 92.26940 0,00 170,948,88 TF 0511812018 A ta 04/1012011 71,526.80 7,152.68 92,26940 000 170,948.88 TF 0511812018 A ía 12/10/2011 74,615.77 7,461.58 02,823,76 0.90 184,901 II IF 05/1812010 LLDAN Pnntnd on August 28,2018 at 9.50 am Page 3of 6 Finandal Services Special Tax Delinquency Detail Report Truckee Donner PUD District CFDICFD 04-1 (Gray’s Crossing)-Community Facilities District No.04-1 (Gray’s Crossing) A Active Ia Foreclosure Action FIag R Remrnder Letter Sent N Notice of Intent!Ship Requested U ShE H Handbulled P Paid Ott 5 Split 0 Demand Lena Sent T Removal centrmed F Parcel in Frredosure 0 Bankrupt F Finished L Foreclosure Lener Sent P Payment Plan S HddlSpedal Ciroinslaree J Judgement R Refunded Penalties &interest Good Thru 8/SiRs Special APN APN 0.lginai Owner Name Address CitylStat&Zlp Situs Address Due Date Installment Penalty Interest Fees Total Due Rigs Circumstance Data Date Status Assessment Amount Date A Ia 0411012012 74615.77 7,461.58 82,823.76 0.00 164.901 U TF 05/18/2010 Ala 12)1012012 80.50695 0050.90 74873.90 0.90 163.43291 IF 05/18/2010 Ala 04/10/2013 80508.95 0.05090 74,073.90 0.90 163.43291 TF 05/18/2010 Ala 1211012013 82,930,29 0,293.03 62.197,50 0.90 153,42082 IF 05/16/2018 A Ia 04110/2014 82,930.29 8,293.03 62.197,50 0.90 153,420.82 TF 05/18/2018 A Ia 12)10/2014 63,23425 8,323.43 47,443.38 0.90 139.901,90 TIF 05118/2018 Ala 04/1012015 03,23425 8,323.43 4744338 0.90 139,901.90 TIF 05118/2018 Ala 12)1012015 02,070.43 0,287.04 32,319.50 0.90 123.411,03 IF 05/18/2010 Ala 04/1012016 02,070.43 8,287.04 32.319,50 0.00 123.477,03 TF 05/18/2010 Ala 1211012016 84.083,54 0,408.35 17.657,50 0.00 110,14939 115 05/1812010 A Ia 04/10/2017 84,08354 0,40835 17,657.50 0.90 110,14939 TLF 05/18/2018 A Ia 12110/2017 50.98942 5,698.94 1,70968 0.90 64,395.04 TI 05/1612018 A ta 04/1012016 50,98942 5,698.94 1,70968 0.00 64,398.04 TI 0511612018 Total Delinquent:$1,260,567.30 $126,056.74 $862,340.24 0.00 12,240,972,20 043030’004’090 A PRIMA INVESTMENTS 1190 MELANZANE DR ROSEVILLE CA 11527 HENNESS RD 12/1012017 $2,587.21 $258.72 577.62 50.90 52,92355 ROIL 0916/2010 LLC 95061-3986 A 04/10/2010 2,587.21 25872 77.62 000 2.92355 DTL 0916/2010 LLDAN Printed os August 28,2016 at 950am Page 4 of6 Financial Services 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