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HomeMy WebLinkAboutRES 2016-25 - BoardRESOLUTIONNO.2016—25:TRUCKEEDONNER—PUblicUtiityRESOLUTIONOFTHEBOARDOFDIRECTORSOFTHETRUCKEEDONNERPUBLICUTILITYDISTRICT,ACTINGASTHELEGISLATIVEBODYOFTRUCKEEDONNERPUBLICUTILITYDISTRICTCOMMUNITYFACILITIESDISTRICTNO.04-1(GRAY’SCROSSING),PERMITTINGTHEWAIVEROFDELINQUENCYANDREDEMPTIONPENALTIESUNDERCERTAINCONDITIONSANDMAKINGCERTAINFINDINGSANDDETERMINATIONSINCONNECTIONTHEREWITHWHEREAS,theBoardofDirectors(hereinaftersometimesreferredtoasthe“legislativebodyoftheCommunityFacilitiesDistrict”)oftheTruckeeDonnerPublicUtilityDistrict(the“PublicUtilityDistrict”)hasheretoforeundertakenproceedingstoformTruckeeDonnerPublicUtilityDistrictCommunityFacilitiesDistrictNo.04-1(Gray’sCrossing)(the“CommunityFacilitiesDistrict”)pursuanttothetermsandprovisionsoftheMello-RoosCommunityFacilitiesActofI982,asamended,beingChapter2.5,PartI,Division2,Title5,oftheGovernmentCodeoftheStateofCalifornia;andWHEREAS,theCommunityFacilitiesDistrictisauthorizedtolevyandcollectaspecialtax(the“SpecialTax”)onparcelslocatedwithinitsboundariesinordertopaydebtserviceonitsoutstandingbonds(the“Bonds”);andWHEREAS,thefailureofanownerofpropertytopayaninstallmentoftheSpecialTaxbyDecember10and/orApril10ofeachyearresultsintheapplicationofadelinquencypenaltyoftenpercent(10%)ofthedelinquentamount,anddelinquentamountsaccrueredemptionpenaltiesattherateofoneandone-halfpercent(1.50%)permonthfromthefirstdayofJulyfollowingthedateonwhichthedelinquencyoccurreduntilpaid;andWHEREAS,installmentsoftheSpecialTaxapplicabletocertainoftheparcelswithintheCommunityFacilitiesDistricthavebeendelinquentforsomeperiodoftimewiththeresultthatsubstantialamountsofdelinquencyandredemptionpenaltiesaredueinadditiontothedelinquentamountsoftheSpecialTax;andWHEREAS,pursuanttoitscovenantforthebenefitoftheownersoftheBonds,theCommunityFacilitiesDistricthasundertakenjudicialproceedingstoforeclosethelienoftheSpecialTaxwithrespecttosomeofthepropertieswhoseSpecialTaxwasdelinquentandhassuccessfullyobtainedjudgmentsincertaincasesinwhichthedelinquencieswerenotcured;however,insomecasestherehavebeennosatisfactorybidsfortheapplicablepropertiesattherespectiveforeclosuresalesandthedelinquentamountsapplicabletothosepropertieshavecontinuedtoaccruepenalties;andWHEREAS,theaforesaidaccumulationsofdelinquencyandredemptionpenalties(a)makeitmoreexpensiveforpotentialpurchasersofthesubjectpropertiestoacquirethem,bringallapplicabletaxes(includingtheSpecialTax)currentanddeveloptheproperties,(b)provideadisincentivetopotentialpurchaserstoundertakesuchactivitiesand(c)tendtoimpedetherecoveryofthepastdueSpecialTaxandcontributetofurtherdelinquenciesin QthepaymentoftheSpecialTaxandincreasesintheunpaiddelinquencyandredemptionpenalties,therebyimpairingthecredit-worthinessoftheBonds;andWHEREAS,eveninthecaseofpropertiesthathavebeenconveyedtonewownerssincetheoccurrenceoftheinitialSpecialTaxdelinquencies,theaccumulationsofdelinquencyandredemptionpenaltiestendtocreateadisincentiveforthenewownerstopaythepastdueSpecialTax,therebyalsocontributingtoaworseningoftheproblem;andWHEREAS,Section53340(f)oftheCaliforniaGovernmentCodeauthorizesthelegislativebodiesofcommunityfacilitiesdistrictstowaivedelinquencyandredemptionpenaltiesundercertainconditions;andWHEREAS,thelegislativebodyoftheCommunityFacilitiesDistrictintendstoconsidervariouspossiblemethodstohelpassurethattherewillalwaysbesufficientSpecialTaxrevenuesavailabletopaydebtserviceontheBondswhendue,andincentivizingthepaymentofSpecialTaxesthathavebeendelinquentforextendedperiodsoftimebywaivingdelinquencyandredemptionpenaltiesundercertainconditionswillmateriallyassistinthateffort;andWHEREAS,accordingly,thelegislativebodyoftheCommunityFacilitiesDistrictdesirestoexercisetheauthoritygrantedtoitbysaidSection53340(f)andtowaivedelinquencyandredemptionpenaltiesassetforthherein;NOW,THEREFORE,THEBOARDOFDIRECTORSOFTHETRUCKEEDONNERPUBLICUTILITYDISTRICT,ACTINGASTHELEGISLATIVEBODYOFTRUCKEEDONNERPUBLICUTILITYDISTRICTCOMMUNITYFACILITIESDISTRICTNO.04-1(GRAY’SCROSSING),DOESHEREBYRESOLVE,DETERMINE,ANDORDERASFOLLOWS:Section1.Eachoftheaboverecitalsistrueandcorrect.Section2.ThepropertieslistedonExhibitAhereto(each,an“EligibleProperty”)arecurrentlydelinquentinthepaymentoftheSpecialTaxformorethansixyears,andeachofthemiseligibleforawaiverofdelinquencyandredemptionpenalties,subjecttocomplyingwiththetermsrequirementssetforthherein.Section3.AwaiverofdelinquencyandredemptionpenaltiesshallbeavailabletoanEligiblePropertyonlyifallpastdueandcurrentlydueinstallmentsoftheSpecialTaxapplicabletosuchEligiblePropertyandallothercostsduefromitarepaidinfullonorbeforeDecember31,2017;providedthatifaplanforthepaymentinfullofallsuchpastdueandcurrentlydueinstallmentsoftheSpecialTaxsatisfactoryinformandsubstancetotheAdministrativeServicesManagerofthePublicUtilityDistrict(the“AdministrativeServicesManager”)isthenineffectandifallpaymentsrequiredpursuanttosaidplanaremadewhendue,theAdministrativeServicesManagermayextendtheaforesaidperiodforsuchadditionaltimeashedeemsappropriate,butnotbeyondDecember31,2018.Section4.AwaiverofdelinquencyandredemptionpenaltiesshallbeavailabletoanEligiblePropertyonlyiftheEligiblePropertyhasbeensoldorotherwisetransferredtoa2 newownerunrelatedtotheownerresponsibleforthedelinquencyasdeterminedbytheAdministrativeServicesManager.Section5.TheAdministrativeServicesManagerisherebyauthorizedtosuchstepsasarereasonableandnecessaryinordertoimplementtheprovisionsofthisResolution,includingbutnotlimitedtonotifyingtheTreasurer-TaxCollectorofNevadaCounty(toprovidefortheremovaloftheamountwaivedfromthetaxrollpursuantto53340(f)(2)oftheCaliforniaGovernmentCodeandtheownerorownersofeachEligiblePropertyoftheamountofanywaivergrantedtosuchEligiblePropertypursuanthereto.Section6.ThewaiversofdelinquencyandredemptionpenaltiesauthorizedbythisResolutionareinthebestinterestsoftheownersoftheBondsbecause(1)thedelinquencyandredemptionpenaltiesarenotpartofthe“NetRevenues”thatarepledgedtosecuretheBonds,soawaiverthereofwillnotresultinareductionof“NetRevenues”and(2)thewaiverswillincreasethelikelihoodthatboththedelinquentinstallmentsoftheSpecialTaxandthefutureinstallmentsthereofwillbepaidtherebyincreasingtheamountof“NetRevenues”withwhichtopaydebtserviceontheBondsandenhancingtheircredit-worthiness.Section7.ThisResolutionshalltakeeffectfromandafteritsadoption.PASSEDANDADOPTEDbytheBoardofDirectorsatameetingdulycalledandheldwithintheDistrictonthethirddayofAugust,2016bythefollowingrollcallvote:AYES:Directors:Ellis,Bender,Warmerdam,Laliotis,andPresidentAguera.NOES:None.ABSENT:None.TCKEEDONERPBLICUTILITYDISTRICT0pguera,Pre9entATTEST:A(MichaelD.HoIley,DistrictClerk3 EXHIBITALISTOFELIGIBLEPARCELSASSESSORPARCELNOS.43-010-05-00043-010-07-000I9-770-02I9-800-15I9-870-094