The URL can be used to link to this page

Home My WebLink AboutResolution - - 1993-108 - 4/13/1993 • • RESOLUTION NO. 93_108 RESOLUTION OF THE COUNCIL OF THE CITY OF FRESNO, CALIFORNIA, DELEGATING THE AUTHORITY TO THE PUBLIC WORKS DIRECTOR TO RELEASE DEEDS OF TRUST USED AS SECURITY FOR DEVELOPMENT ENTITLEMENTS WHEREAS, on July 21, 1992, Council by Resolution 92-312 adopted a policy for accepting deeds of trust as security for development entitlements: and WHEREAS, the City Attorney prepared the final policy dated July 17, 1992, titled "City of Fresno Policy for Acceptance of Deeds of Trust" attached herewith; and WHEREAS, in an effort to streamline the process of releasing deeds of trust after all contractual obligations are satisfied, and to improve customer service by providing prompter releases of deeds of trust by eliminating the need to obtain formal Council approval of said releases, and designating the Public Works Director to administer the release of this type of security administratively in a similar manner to that used for other forms of security by delegation of that authority to the Public works Director. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Fresno as follows: The Council of the City of Fresno hereby adopts this resolution delegating the authority wnbds� QFJ t... J . f e, 355 DaL&l9_3 ease EFFECTIVE /014 6 . • • to the Public Works Director to release deeds of trust used as security for Development Entitlements. CLERK'S CERTIFICATE STATE OF CALIFORNIA ) COUNTY OF FRESNO ) ss CITY OF FRESNO ) I, JACQUELINE L. RYLE, City Clerk of the City of Fresno, certify that the foregoing Resolution was adopted by the Council of the City of Fresno, California, at a regular meeting held on the 13th day of April , 1993. JACQUELINE L. RYLE City Clerk APPROVED AS TO FORM CITY ORNEY'S F Deptity- MDPVT:irf Retrust.0 '1 + FCd O ILMED aei35 Date21a_f q 3 • • City of ClSIMIML■- `r/%_ ja, CITY OF FRESNO POLICY FOR ACCEPTANCE OF DEEDS OF TRUST July 17, 1992 BACKGROUND The Fresno Municipal Code requires that pursuant to certain development entitlements such as district amendments, parcel and subdivision maps, a developer, subdivider or property owner, (hereinafter Applicant) may defer the construction of improvements that have been imposed as a condition of the entitlement if they sign an agreement with the City of Fresno and secure those improvements. Prior to the time frame for extending and/or perfecting a district amendment and prior to the filing of a final parcel map or a final map pursuant to a tentative or vesting tentative map as defined by the Fresno Municipal Code (FMC) , the Applicant shall secure any improvements that have been required as a condition of the entitlement if those improvements are not completed at the time of filing the map or the request for extension or perfection of a district amendment. The Fresno Municipal Code allows for security in the form of cash, certificate of deposit, bond, letter of credit, real property lien in the form of a deed of trust or other forms of security acceptable to the City Attorney's Office pursuant to the issuance of certain types of entitlements. The following promulgates the City of Fresno's policy for the acceptance of deeds of trust submitted pursuant to the extension of an approved district amendment, perfection of a district amendment, the filing of a final parcel map or the filing of a final map pursuant to a tentative or vesting tentative map. This policy shall not be interpreted to allow deeds of trust as security for improvements related to any entitlement if the security is intended to secure eminent domain actions by the City of Fresno on behalf of the Applicant. - DEED OF TRUST APPLICATION PACKAGE Applicant is required to submit a deed of trust application package consisting of the following documents: D Appraisal on the subject property; 3SSDt�/4_(13. • • ❑ Environmental Analysis; ❑ Title Report; ❑ Title Policy; ❑ Standard California Deed of Trust; The package shall be submitted to the City no later than forty five (45) days prior to the filing of a parcel or final map or forty five (45) days prior to the last day for extension or perfection of any district amendment. I. APPRAISAL OF SUBJECT PROPERTY The City shall require submission of an appraisal report of an appraisal conducted on the subject property within the preceding sixty (60) days prior to City's receipt of the report. The appraisal shall be conducted by an individual, independent of Applicant and acceptable to the City of Fresno holding a valid state license and certification as a "state certified real estate appraiser" defined in the Real Estate Appraisers' Licensing and Certification Law (Bus. & P C, sections 11300-11422) or in the event of the repeal of the above statute, any other relevant State certification program. The appraisal shall show a market value in the subject property exceeding the City's lien in a ratio of 3 to 1. As an example only, if the City's lien represents an amount of $100, 000. 00, then the appraisal shall show an unencumbered market value in the property of $300, 000. 00 or more. For purposes of this policy, the term "lien" shall be defined as the total cost and expense for all improvements required by the City. All appraisals, notwithstanding property type or loan amount, shall be performed by a "state certified real estate appraiser" as defined by the Real Estate Appraisers' Licensing and Certification Law. The certification or license of an appraiser issued by another state shall not be acceptable to the City. The Applicant shall further subrogate to the City any interest, right or claim they may have in it's contract with the appraiser in the event any cause of action may arise against the appraiser for an erroneous opinion of value which causes injury or damage of any kind to the City. It is understood that this does not relieve or modify the Applicant's liability to the City for performance under any agreement creating Applicant's obligations to the City. II. ENVIRONMENTAL ANALYSIS The Applicant shall submit to the City a Level/Phase One III initial environmental assessment to insure that a change of condition from the initial report has not occurred. Prior to the City foreclosing on any real property pursuant to a deed of trust, the City may at it's sole discretion conduct an additional environmental site assessment to determine whether it is in the City and public's best interest to proceed with foreclosure. III. TITLE REPORT The City shall require prior to accepting any deed of trust, a title report on the subject property issued within sixty (60) days of the Applicant's submittal to the City which shall clearly indicate all exceptions to title. The Applicant shall further supply the City with a copy of all documents referred to in the title report as exceptions at the time the preliminary report is issued. IV. TITLE POLICY A title policy generally insures the title in a specified sum against loss from any of the risk covered and defined within the policy. The policy is usually a written instrument or contract by means of which the title insurance company liability is assumed. This contract to indemnify the City of Fresno by a title insurance company shall be required whenever a deed of trust is accepted by the City. Therefore, the Applicant shall have issued by a title company acceptable to the City of Fresno an ALTA form of Title Insurance Policy in favor of the City of Fresno in the amount as defined by the City and the Fresno Municipal Code, with any relevant CLTA endorsements required by the City and identifying the property, insuring the City of Fresno, the beneficiary under said deed of trust, as the holder of a valid first deed of trust lien upon the real property described therein and showing title thereto vested in the Applicant as trustor, named in the deed of trust, and except as approved in writing by the City of Fresno, said title to be free from all liens and encumbrances prior or superior to the lien of the City's deed of trust. The City of Fresno may not approve the title policy if it objects to exceptions written into the policy by the title company. Further, in the event the City should determine that there is any recorded, unrecorded or physical interest or characteristic of the subject property which could have a potentially adverse impact to the property or title thereto, the City may require that an ALTA survey be performed on the property prior to accepting the deed of trust or the title policy. y ky ��-tea,�- � {�� ; � y 3 $E �w ��L_ tlu Edi u,�-. �df3S ;: b . �_1q! 3 • • V. DEED OF TRUST The deed of trust shall be a standard California form deed of trust with right of private sale and assignment of rents. The deed of trust shall be in a first position, with title of the subject property to be free from all liens and encumbrances, prior or superior to the lien of the City's deed of trust, except as approved by the City. The Applicant shall agree to indemnify, defend and hold the City harmless from any liability, cost, damage, fines, penalties, administrative cost and expenses or judicial, administrative or any other cause of action that the City may directly or indirectly incur by accepting, holding, foreclosing or perfecting its secured interest in the subject property. C:\wp5ldata1aecorityldxdtratpol OF cOy 3.5.5 Date - �J