Bank of New York Mellon v. City of Richmond, California et al

Filing 34

RESPONSE (re 28 MOTION to Dismiss for Lack of Jurisdiction ) filed byBank of New York Mellon, Bank of New York Mellon Trust Company, N.A.. (Attachments: # 1 Declaration of Loretta Lundberg in Support of Plaintiffs' Opposition to Motion to Dismiss, # 2 Declaration of Brian Hershman in Support of Plaintiffs' Opposition to Motion to Dismiss, # 3 Exhibit Exhibits to Declaration of Brian Hershman in Support of Plaintiffs' Opposition to Motion to Dismiss, # 4 Declaration of Joseph L. Nardi in Support of Plaintiffs' Opposition to Motion to Dismiss, # 5 Exhibit Exhibits to Declaration of Joseph L. Nardi in Support of Plaintiffs' Opposition to Motion to Dismiss, # 6 Declaration of Bronwyn Pollock in Support of Plaintiffs' Opposition to Motion to Dismiss, # 7 Exhibit Exhibits to Declaration of Bronwyn Pollock in Support of Plaintiffs' Opposition to Motion to Dismiss)(Pollock, Bronwyn) (Filed on 10/4/2013)

Exhibit

8

From:
Sent:
To:
Subject:

Attachments:

[e-mail] >
Wednesday, December L2,20L2 4:25 Pltl
Bill Lindsay
Meetìng Follow UP 8¿ Materials
Richmond-City-Overview-2012Uf0.pdt Process Maps For City Presentation.pptx;
Advisory Services Agreement[1].pdf; Commu nity Presentation2'pdf
Bìtl Higgins

<

Biil:

appreclated the discusslon. As promised, attached are our data
r materials that we had yesterday. lf you have any questions,
low up ln a week or so just to see if there are any
ayor mäy have some speclflc questions or want to meet - if I
(at least my rule is always to keep the city manager informed)'
Best,
Bill

Bill Hîgglns
916.717.8324f

1

;...:. r ;:1...1 : i -; i .::. . .¡ '
,'.il i :: j
i 1. i..,.
::

$¡TüTÌl$ft5
Community at a glance
Nanie

City of Richmond

County

Contra Costa

CBSA Name

San Francisco-Oakland-Fremont, CA (Oakland-Fremont-Hayward CBSA-Div)

103,701

Home ownership rate

Total Mortgages (1st's onlY)

81,602 (total for zip codes)

(2010 census)

-2d,131 (totaTlor ziþ'codes)

53%

Total Households

(1.01O Census)

35,884

Population

(2010 Census)

12,12,8

%

of Undenvater homes

46%

%

of Underwater homes - CBSA

%

of Unden¡rater homes - State

32%
37%

Foreclosure statistics
Foreclosures in most recent month
Foreclosure rate fraction 1 ofevery
Mortgage stats breakdown
Total Mortgages (GsE, Banks, etc)
All PLS Mortåges
PLS Single-familY, owner-occ, 1't

--

(201-1 CoreLogic)

(2011 CoreLogic)
(Q1-20L2; cBSA-Div)
(Q1-20L2)

110

28L
Total
L2,428
2,O77

1,468

month of Oct 2012
properties received

FC

Current

notice in Oct 2012
Delinquent

Underwster
5,579

r,620 78%
937 64%

457
294

22%

46%
82?6

2Ú/o

94801
94802
94804
39

94805
94AO7

94850

28,73L 2,077

s318,974

l,7OO 82% I,219

72% 238

24?

coversome areas outslde ofthe c¡ty limits and/or leave portions uncovered resulting in varlanceversus census
wíll be
data. Because loan statístics are tracked by zip code, the above number should be treated as an estimate' Exäct numbers
tract
+ Note, zip codes lîsted may

determlned from lien addresses at the approprlate time.

Q/roþ2

Confiden tiø l, Mo rtgo ge

R

e sol

utio

n

Po

ft n e rs, LLc

City of Richnond: Poqe 7 of 2

2

Foreclosure statistics by zip code

110 new foreclosures filed in Oct 2012

October 2012 Foreclosure Rate Heat Map

For€elosure Àct{ûos to Hotshg Unlk

I

I ìtr SttS H!u3Llg. tjl¡il.:r

¡(! ¿6e Huírrßll U8;(s

xh$

ltbd

L6

1 in every 281 houslng unlts received a foreclosure flllng ln Oct 2012

12/10/12

Confidentlol, Modgdqe ßesolut¡on Poftners, LLc

Cl¡y

of Ríchñond: Pøge 2 oî 2

3

MortgeÇe Resoluticrr
-P

AÌ_{ I{ T R-S

Saving Homes, Saving Cities
Solving the Mortgage Crisis Locally
Processes and Çaçh Flows

(

4

l "'i¡;; ¡

:.; r.;.1

r

ii,ii,: Ii::::,'::,1 ;i,, )itf..lil,

PARTltTfi$

Key Steps To The MRP Process
1-

The City hires MRP at no cost per the terms of the MRP Advisory Agreement as modified by
the City and agreed to by MRP. At each step in the process the City hasthe option to
terminate the Agreement and must approve the next step before it is taken. The City does
not pay any costs of the program. Nothing in the Agreement obligates the City to fìle an
eminent domain motion.

2.

The City pre approves allcommunications with the homeowners and the community.

3.

Before or after the City files an eminent domain motion the Homeowner may opt out of the
program and their mortgage will be dropped from the motion before it is purchased.

4.

eualified homeowners who opt into the program may elect to refinance for
current value of their home.

5.

eualified homeowners who opt into the program may elect to selltheir home in full
satisfaction of their mortgage and lease back their home with an option to purchase it in the
future.

6.

Homeowners who opt into the program, but do not qualify for a refìnance or a lease will be
dropped from the eminent domain motion before their mortgage is purchased.

less than the

2

5

Step 1. City Controls The Process
PLS Trustee
Receives offer

to

purchase loan

yes

MRP

;

li

i;¡

i ! r,7 r {.:;il
r.:

i:-ì i.: :j,1 ; i

i

í.. I ;.. :

l't

PÅRTllÉR$

çily

(

ldentifies Possíble
Homeowners

Appoints Staff
Accept
offer?

ApPo¡nts Counsel

no
Prepares offer to
purchase loans
Makes offer to
purchase loans

no
Proceed?

yes

no
Proceed?

Bullds community
consensus to proceed with
Eminent Domain motlon,
Drops homeowners that

yes

opt out.

no
Proceed?

Prepare Resolutlon
of Necesslty

Material

Yes

no

3

6

Step 2.

Home Owner MaY OPt Out

Citv

MRP
Presents progrâm

to homeowners

I

4 r.:r 1.,t] ¿s;;t', ["Ì ii

:;.I

ì

I )i:¡ ¡.-t| \

PAftIIIIR$

Home Owner
no

lnterested?

yes

City approves

presentation
materlals

yes
Qualifies
for refl?

To
Refln¿nce

Optlon

no

yes

To Lease
Option

no

7

'i t-.. t', -..^r,^, r...', r,.,:., . l,, i,r-"1^
'\
"
l'1.,)i
i.r::i i.: \..,j i--; I \ rj.: .." 1. , l \ ,i.. t .. -,: f

Step 3: Refinance Option

PARÍt¡ËR3
I

PLS Trustee

Receives Sfgo,ooo

FHA Lender

Çity

Pays 5160,000 Loan

Acquisition Príce

obtains Order For
Possession

of

Mortgage

Records
,

PLS

Mortgage

--

-ßggqives
Underwater PLS

Home Owner

the new

'$Í,0;000

FHA

--

Mortgage

Gets a new
S19o,ooo FHA

Mortgagr@'nacost
= 95% of home

value

Receives S190,000

to

Sends S9,5OO

communlty

sends S190,000 to
Funder to payoff
PLS mortgage

Receives monthly

mortgage pavments
from Home Owner

Pays MRP $4,500
Pays 53,260 of

(

other

êxpenses

5

\.

I

i;.-'!
I

:,

r,..

:' 1," t....i¡';,1.:r I,Ì11..,.-¡1 i I f
;-: r,,'
f
: ::-.
1,.:j,

i i. i

t.¡ i

i

PARTtlËNS

Step 3: Lease/Purchase OPtion
PLS Trustee

Receives S160,000

Funder

Pays 5160,000 Loan
Acquísftlon Prlce

Eify

H ome

Buver

Owner

Ho

Files Motion,
Possession

Granted

Signs a market rate

Delivers Underwater
PLS

Mortgage

Slgns Lease,

Receíves

Underwater

PLS

Buys Home

loase with an oPtion
to purchase. Sells

home to buYer.

Recelves $190,000

sends $9,500 to

commun¡ty

Pays MRP

sends S19o,ooo to
Funder

Credlts a portlon of
rent to tenant's
purchase account

Pays

rent

$4soo

Pays 53,260 of

other

expenses

5

I

i,,'
lt¡i t :y' iì t', ::j;"rr:r ['j r-:,cr"rì,' i'.il-ri "
i'í\.j:
!¡,-ì(.jì:"' l'i(: :)\li'r

I

PARÏI{ERS

Follow the Money
Proceeds From Refinance Of Each Loan or Home Sales Proceeds
Fair Value Paid for Each Loan (lf 80% of home value)

Gain On Each Loan

$19o,ooo
(s160,ooo)
$3o,ooo

Where does the $30,000 Gain on Each Loan Go?
-Pald

to eommu nity-For€a ctrtoa

+9,500

Paid to Funder For Each Loan

{--

$2o,5oo

n

+--

MRP Fee Paid By Funder

($4,soo)

Eminent Domain Legal Expenses Paid By Funder

(s2,ooo)

Cost of Homeowner Education Paid By Funder

(5ooo¡

Mortgage Servicing Costs During Holding Period Paid By Funder

(s100)

Fees Paid

to lnvestment Bankers Paid

Funder Net lncome Per Loan

By Funder

(Ssoo¡

$13,s40 (8%)

7

10

ADVIS ORY SERVICES AGREEMENT

This Advisory Services Agreement (" Agreement") is entered into by and between
City
Mortgage Resolution Partners LLC, aDelaware limited tiability company ("M2"'¡ and the
2012 (the "Effective
(the "CitY") and is effective as of

of

Date")

RECITALS

A,

MRp is a community advisory firm advising public agencies on ways to
including, if
assist the agency in reducing the impact of the mortgage crisis with its communities
of eminent domain, in order to
necessary, by aóquiring mortgage loans through the use
homeowner
restructure or refinancã the lo-ans and thereby preserving home ownership, restoring
equity and stabilizing the communities' housing market and economy by allowing many
homeowners to remain in their homes,

B,

America in general and the City in particular are each experiencing an
in
historic home mortgage crisis and ás a result of the home mortgage crisis, many homeowners
been unable to
the City have lost rigoin.*t portions of their disposable income, and some have
rates of
make timely mortgage puy-.ntr on their homes. This has resulted in unprecedented
wealth, and even loss of shelter
default and-foreclõsur., tós of homeowner equity, loss of farnily
the
for some families, Thehome mortgage crisis has resulted in other adverse impacts within

city

such as job losses, reductions in income, consumer demand, and

reduction in þroperry values, a reduction in property and payroll tax r
quali
abaudoned homes and a general decline in the e )onomy and the
preserving home
Restructuring orrefinancìng mortgage loans will benefrt the City's residents by
and likely also-increasing income, property values,
ownership;rãstoring homeõwner equity;
.onro-"i demand, investrrent, and property and payroll tax revenue'

C.

The City is interested in retaining MRP to act as its advisor to assist the

City in exploring
Cþ's behalf
allow the City to
including owners of loans, attorneys, lenders, d
others as necessary to implement a program or programs to benefit the City's residents'

the

NOW THEREFORE, in consideration of the foregoing, MRP and the City agree
as

follows:

pURpOSE. The purpose of this Agreement is to enable the City and MRP to work
of the
together to assess and implement a program or programs designed to ease the impacts
mortgage crisis on the residents of the City,

1.

SERVICES. MRP agrees to provide the following services ("Services"), and the City
authorizes MRP to represent the City as described:

2.

11

(a)

to advise the City on various altematives in order to provide assistance to its
residents who are burdened with mortgage loans including assessing the possibility and benefits
of the formation of a joint powers authority;

(b)

to identifu and negotiate with companies acceptable to the City, in its sole and
absolute discretion, to lend funds to the City on a fully secured, non-recourse basis if such funds
are required in order to provide the necessary relief;

(c)

to provide extensive legal reseæch acquired by MRP on all aspects of the
acquisition and refinancing of mortgage loans including each of the legal steps necessary to
!be!q99 $ +rr.-plo gr4qu,--

(d)

to identifu and negotiate with law firms acceptable to the City, in its sole and
absolute discretion, to work with the City to implement the programs which the City elects to
implement;

(e)

to negotiate with other local, state and federal governments and agencies as
necessary to implement programs chosen by the City;

(Ð

to negotiate on behalf of the City with the holders of mortgage loans secured by
properly owned by residents of the City (and with trustees, servicers, investors and other parties
having a relationship with the holders of the loans);

(g)

to work with the City to identi$ mortgage loans to target based upon the City's
(

criteria;

(h)

to negotiate on behalf of the City with any other third parly as necessary to
implement programs which the City elects to implement; and

(Ð

to work with the Crty to establish education and communication programs to
Cþ implements.

address residents' questions about a program or progmms the

Provided, however, in no event shall MRP have the authority to enter into any contracts
on behalf of the City.

.

COMPENSATION. As its sole and exclusive compensation forthe performance of the
Services (the "Advisory Fee"), MRP shall receive the sum of $4,500 per loan for each loan
ultimately acquired by the Cþ or otherwise resolved in a manner which results in the
restructwing or refinancing of a loan through a program implemented by the City, The Advisory
Fee shall be paid only through the programs implemented by the City and shall not be paid
directly by the City.
3.

4.

ASSIGNMENT. MRP shall not have the right to assign and/or delegate its duties
hereunder without the prior written consent of City, whích consent may be withheld in the City's
sole and absolute discretion,

5.

COOPERATION. Each party agrees to cooperate to carry out the purpose of this
Agreement and to perform all acts and execute all documents reasonably required to institute the

a

12

programs chosen by.th. City pursuant to the ten¡rs of this Agreement or as are or may become
necessary or converuent to effectuate and carry out this Agreement'

RELATIONSHIP OF PARTIES. The relationship of MRP to the City shall at all times
agrees that it does not
be that of an independent contractor, MRP expressly acknowledges and
have the authority to bind the City by contract or otherwise'

6.

TERM. This Agreement shall be in effect for a period of one (1) year from the Effective
either
Date and will be rrrrr*ãd automatically for successive terms of one (l) year each unless

7.

prior
end of the term
or is in the proc
(60) days

term. This
esPect to all
f the end of

the term of this Agreement'

8.

GENERAL PROVISTONS,

Execution. This Agreement may be executed in one or more counterparts, each of
emailing or
which sirall be deemed an original. A signature hansmitted via scanning and
facsimile shall have the same effect as an original signahue'

(a)

Modification of Agreement. This Agreement may be modif,red only by a writing
signed by MRP and the CitY.

(b)
(c)

Entire Agreement. This Agreement together with any Nondiscloswe and/or
to the
Commoì'Interest AgreJments entered into between the parties either prior or subsequent
parties concerning
Effective Date constitute the entire understanding and agreement between the

this subject matter.
tent

jwisdiction finds or rules that any provision

le, the provisions of the Agreement not so
invalidity in whole or in part of any provision
lidity of any other provision of this Agreement.
e

(e)

Governing Law. This Agreement is governed by and shall be interpreted
according to the laws of the State of Califomia'

(Ð
Agr..-.nt

Waiver of Breach, No waiver of breach of any term or provision of this
shall be construed to be, or shall be, a waiver of any other breach of this Agreement'

(g)

Arms-Length Transaction. This Agreement is a product of armsJength
ependent legal advice from
negotiaìiäs and each putty ttut had an
any ambiguities in any term of
uttã*.y, of its own chìosing. Thus, n
this Agreement should be construed against

(h)

No Third Party Beneficiaries. This Agreement will not confer any rights or
and
remedies upon any person otirer than the parties hereto and their permitted successors
permitted assigns,

-3-

13

9.

NOTICES, All notices under this Agreement shall be in writing and shall be transmitted
by personal delivery or reputable overnight courier service such as FedBx to the parties at the
following addresses:

MRP:

The City:

Mortgage Resolution Partners, LLC
33 Pier South Embarcadero, Suite 201
San Francisco, CA 9411

Attn:

CEO

- -- - -Sù¡-hno-tiðe -shill be deemedlíven uþon pèisonafileliverÍ t-othe apþropriaté-àdilrtjss
on the next business day if sent by overnight cowier service.

of

WHEREFORE, the parties indicate by their signatures below their entry into this
legally-binding Agreement.
The City

(date)

(signature)
Name þrinted):

Mailine address:
Telephone no.:

E-mail address:
Date of Signing:

Mortgage Resolution Partners LLC
Representative:

(signahxe)

(date)

Name þrinted):

Graham tüilliams

Mailing address:

33 Pier South Embarcadero, Suite 201, San Francisco, CA 94111

Telephone no.:

4rs-79s-2031

E-mail address:

gwilliams@mortgageresolutionpartners. com

Date of Signing:

-4-

14

to

,,{¡¡esc1 slslJ3 e$p$T-¡CIk\tr

êtl} ñu'Ålü5

sätltf, Su¡ne5'sal.,l"tc¡"-¡ Su¡nag

$ffi$wå ffiw d
tJ{"}l}r-l l# $# H #ffiæffi3;#k'J

i"ì

The M*rtç aç* Cris[s
hritqrir:.ãs't'ìär*liigt:

l4.rr.r:"rì{ì liÈtr¡¡ilirfr }àl'lj

¡t

ti

l-¡-i:

i:i;; i)

i,.,.i

*ver

i,l ttiliiix* TJärl, r;rer.ll.r¡t artft' fut¡.¡re fxtr:¿:ì¡>::ulr*l

i'ì.'iì-ì's,r,ilr,'eu,urrci,4.i-J. gu:lä z'Jt-l':i11':r:.::*,r':-it, t:i' )4.t:l'l i 'rl5 7"ii'?11î'

o)

Far Frorrt

i,.i i"

i

f,:

*

:;'^ .l i,. i l. i,.

i,",

pp,nt?{[fr5

The C*st of F*r*closures*
Lt:t;:tl

{:jrsr¡

e';';zr*¿

- L*çt

*i .tiç'i;1*,'¿

{'røPert¡

- tlnpai*

ë:.'!

*t;z><tÊ

g;11¡1¡,¿ rðilì5

- 7røçerty UPÞ;eeP
- Policing
- L..e gal co$ï$, il¡.¡ i ld In g i rt::;¡:cr.ti uri ::;
- lller¿tart<f fçr :;a':ial servicr:rj

fr¡srrçwerx

'iiL*,3{}fr*"*

l-r-nder*

'É21t,23*x*'r

Ciaselï*ighbcrs

$14,5J.7+'-'xx'

4taUD ¡roiloiÌ:.J;rnpâüî A:¡aìysis ol thÈ F¡.i ilefine:ita PrOF,râiYr !û¿ 3--r¡t'*'¡gts;rr :-'iegei"vt tiiL:ir:'¿ a-'ùei:'ì<'!ì
+*¡.lç:¡se i¿i<i i:rovi:¡E c¿st¿. le 5e,i fa.'-i
ziiiriiliSi'râtìve r'ht:Bas
=nri
lâùrt..!"g+ la.ri

;!at.t¡ Pldjr--r;

l.i,(:

i:ir:r :ì::-:>rrrii: Ê t.t¿1rr,-i..vt.:u*.e

¿g

!I

;:.*

';r,.r.a:çþ:

a:A

t)41'-la i t t S

;'9i ;f,'-'f

oÙxLe2ai;¿sc, ,j'ju¡t I'ee;, btoker iþe. struciut¡l ir-ss::'trtturiifir;¡3 e l'jr€clc-'.JrÊ
t*4fic3ì¡ Èii,r: klíar:t tin i lìt: prof)?rty ¿J:rluti ¿Î ,Jose j14'igihie:)r:;

+

'J

I

I

r ...,,.J^,'., ;*
l"' I 'r-l ¿ 'i !i çì
e.

pågï?lfü$

f

The $clution

Frincipaî Rcduct[or]

I
I
I

:

4)!¡*irrn*n ¡rl'thr {*üç:rs! ßtserve {l}cL:" X1

Jù-l'l)
i

IttlrJs1r:ir¡,

j*rrri<:r (bçirnr:n

*! the Çrsu¡ic!í rs! Ë.conor,tic Arivîs*rs *nrfer Frtz:;ide*1. fre*O1n {ü#'" }.2, :rÐ'J:ì-}

,,1,ärtly 'thr:re ís a :troirg csse fc,r *xp+:rirrt*.ntatiorr wíth ¡:rí;-rcip¡i r*:i:r-rcY:-*i: strllr;*1;iiç-':
{3¡,e:;íCç.:¡:t

öbrett*

iúti. 24, 2tl^'Ji

1Ì.it

i:hc ìçr'lli Íi3'¡rti'"

l

I

*rrjer,i'.')

f4ijJlç:r:ic iic.:c¡ilüu:r f >¿ttj¡ÌlT t;S
?1,.o :i.i'l;""i1' f r",t'¿r¿:¿¿-eþ: ßt:tì-:-t ?ì11 :;*

æ

"¡zr"d

F,a*r'
tedïtÇe defauìts anrl l*s*¿:s

?.'.ti.¡*\r¿lÉ.: 3? f,ti*r'*art Chas*

i:nicÉL,

tlá 9{ríIt

*I hrnerir.a uiiilatr-:r*li,rr red*rg: Ttri*;i1ti¿l *ri *pliot't

! "lti.i9::.2:.i'.tz

AFlf',4

í¡*r''rt*ìir: i';¿*s ìr

i'.rr;¡

Frobåem

i"i.;¡ç*

ril+si.:!i.: iì,::i

PÂR5HËR5

+ T.{l*rtçæü*s V|r;âú Tn Frivate LmfueJ Sæcls râti*n

* \ n:illian !*æns plar*,úi* **turifies nct guaranteetr* i:y U.5' Cì*'¡erntnænt
o^ t-*ans nrst ,;æ*Í#yr{úrq,tr¡ lanr,iæ
* tuüå{15 n*t^ *,ltgi?s!e'1l*r L* f*ú*ral

o
u
"
"

fuåaæ,

fr*úrJie L4nt

¿:r FlJ.&- s't*ncíarrìs

prrsgt:¿rne cr*vleC Ei*ce

lh* lrcu:ling,

'ir.rslr

l*a ¡x
';u b,* u ndervsa rer. 45|,ô vs " 33:l'å fÛr lic¡r¡ PLs
''r.* 2*ü7 h*15:*.rJ cr**Tx l'l¿lt¡*ing'T:*rsirr
t\is;¿.iç:r l*ar$ r:realt:rJ ir:t 2tlt-14
'rlave rtat fua*n *rigar'a'ïeú Eznæ J"rj{ll

L*ærzs

,rie m\:,îr¿ n=*r*

!!i,n'¡; *t v{

tis s

.','Lf

æ

rm

iz

ÈÉz

w*, ¿y2 r¿*inç

?,ik*t

¿

Ì* p rí rt *í ç:t * Ã r *:: * *f:á* ¡u
¿¿

'ca

'ts ad{}ress" PLÍi lr¡ans
ç?abtlize tc?te h*r,rsi*g rn&rtaeL, we ltar,'*:
t' *ti e ra ì tl,* u s Ì tt g,Ëïní¡Ð c,s fr,ç * ;l c;v â i:'r3 ç

(o
14,:l.i?ge ç.a':lil rtttl PârÌ.r.'t'i l-:-(:

i,iir,:i:i-:;',:1, ft.tiztíi¡:ir:ln. se:is

2'J

i l ':t:.+ ?ùlr,.t tt-o, t:A :]1:11 7

i

1t'5

'7<j:'?'1:?!

i

i,''1r:rli;,

Fænnie Mæe Hxp*cts 6üÛ/c

FLS lvÏ*rlgaçes
T.ennie ?"it¿t:

¡-:

i-r: ,:¡ .:.-. r"¡ | : I
i i 1..... .-j :.*.r I !..:

i' i¡ .' ', ? ',j
\^. \^.' .i

i:r:.;

I

i

'¡ ¡-1
-t '.*4 Z¿

*f

pÅHT?ÈÍH$

tc he F*neclcsed 3 Millicn Fanrilie 5

#rttjetfef

Fxtâ¿f¡e Fürt:cìr:sr¡re

ftilte: Ånd l.osse s f *r

&11

F[.S Farrt

I
I
I

t)'"t:+h
s8%

Variable

i.

i::ci¡ );,:i;-:

¡-¡i

t

;.t
40%

Fixed

I

&, Ði:ip

l,lurt{t:iq.ì

N

o

r;tç

r

*p or 1:i ç:n a1;.+ 14 u r*i h e r + i' Ihe:';tl F';.t r t
Çarne Frorn tlnrleru;*,irr Loairs

E:

i

c s u r ¿s W

lll

Fannie lvl¿e ).Q.2972 íArn'1.Ú-í¡- ?aBe:Lli.l. prclectians far ?ûQ6 víñt'?ãê P:-5 loans
'c1¡rcz,c;L!-'.:
l>fl'lt4f 3

air-:9ól:JiP,/!

iii,. ì:'¡:m;¡ t:rrl¡r-¿litJtlì,

:i:3¡te:¿ijil ;:t-1?;Ét'-t'rlisi'¿'

(;¡.th'rt1 i
':71t"2Ès

Ìt'tz¿

rr*Ìfl

*

71%

Sub Prime

I

+

70%

Optíon ARM

De?;s;¡1r

I

fiQ¡:" Li-ìr.Í Lrfii:irr ü'iri'¿i¡i'l

: l+t, i íìiìj. i.jii+ iì

i-i-'::l: l.iÍ'g:r; i.il.ii¡;ii.ii(

i.:;i;i;s: ¡ii.

14

i:,"i-í:j a ü

#

tii?

l;* i ii ì:i t: i"i

PÂgTl$fk5

ptS MartEages Are Three Tirnes More Likely To
ffie Fcreclosed

1Ç¡

Millirrn Fu:ure

F¿reclcrgttres

otf

"f"
¡.o.rt'

l.{-19',r *f all rnr:rtg';1,¡*:.i
creete 32'iro *r
forertnsures

åSr'

ügtn rc r.t ir itY,:,t c:Iì*n
Côn pre'J6l:nt tlr*fn

N
í1iilg3lic ri€r,olulei fÞ¿rtÍ.rî liú
:ri..'

il::Ìirra, l-tit'i4Ítba..ø'

si¡:t;-'

?tf

I i;?? izftj(.1t?.a, l-,à 94711

i 'tJ's"'Ê:i'?':'ii2

rl
¡itl

,,'\ I L:'Ju
¡ r!. i, Ì'lì .íìl
l\¡"å

F4etFrod

of FLS Prlncipal Reductisn +

Ç$ I r;:::;¡-: Ui:i * l' i
p&fiTl{frfi5
i

I
i

C*mryrun¡ties TBke Action
S*curltiza'ri*n agreãrrî*-nts and taxlawç prc'hibít the sa{e *f FL9 nurtgag*s ex.c¡:Fl
r¡+h** the r¡t*rt*ñges ãl* cûruJemneá
L6cæl üfivÐrftn'ìønt, usil'rg lheir ccnstiCuïicnal pût",rer cf cruinent d*mair{,
cô;7 r#**etnn PLG ¡nsñ:Çaçss to,:ttr+{t pubTic purpûã+ sxists l¡¡ ça\{inç falr value
i

l*cal gavr;rnments cart r*cl¡¡c* th* princìpal be¡l*nce c* th* ca ncier¡-¡rrecl FLS
'rn*rtgag**, l**.retù\./ tÐ,*ltti*g unclrrv+&Ter þ-LS i¡r tlteir c*r**runity

T?z*rt

l,lirl?:3(ì
i:l¿v

i

kè.t¡tì;t?Y)!t

ilìir¡rlt:

fln-jrf

r: ¡.¡-(:

5¡::+¡r;tr:-v:¡?. 9J:lÈ 2'Jil '-;i:*

?t:!.t't:t¡

CA

i|1'-lJL

i

þt5.79'ì-.a-îi?-

N
N

,t
I

i'.i

Res*lutlnn Stræt*gi*s

":

i'

Ì-!i

¿:;

i^;

i:

ri.? Ij t.'; i i ; i

* Llnderwater P[-S

l,4unicipatity reduces iayclff 3h1t$nt crn acquii-ed rto,-lça';e iÇi 97
r¡alue.

7-. Tdr*iltt ohtæi¡¡s ß neÞi ni+ttgai;e
3. îarrilv íias equity in hocie a;':d ltlflrri¡ cf l-¡o¡rre aS.rplei!ati''l;-r
4.. Fa¡ixl'i has sigrlifir:antiy r:*rcr* rjisÞcsable ii:ione

't. Family îã11ï5 i;onle '.vith sl opti;:n t': b*;r
2, fcÉicin cf rent ¡layn'ienls z:-t credíted lc cì¡i""n ,)a'ï'Í-illíìt

i.:Ð"i'*,li

t¿ i

N

(r)
l4Ìlii::çe í¿eit¡rJltãî hlrl:*iÉ J-:-a:
¡,¡.:j-1::ãr*, i¡r';r¡ti:ù¿.'ú. 9e:!e 2l:11lirí'"r:.1ttt:-r, l:þ l!4.1t!

i +15'79:"?:?37

il e ;Jt' ¡ir çç7';¿ 1il
1'

i r:, i' i

p&Rrilã*s

'nt"4\

cf lr'-¡:r'i*':

fvÌ

,; t' l:ç

ai

i;

s

il. #:,;

it..ii; ¡¡;.,,",

".:
påftrfifR5

þ"lmmerwnen ßenefit
¿* í2tustrabivÈ exãtyt¡)le frsr l?te lev*â, r:{ **rtæfit::; t?;at parti;ipatî.ng f ar';tili**
rr:-¿tä;:*. f r:r*rnuni1t*s v,t**æflT frr¡rn qr*etl\,r reduc*ci pr',s*a*ìli¡'¡ *î î*reçlos*æ^

Trti,s

iE,

lalue

$4ü0,crüi)

:52¡)Û.0{iÛ

$2ü'J,{lüü

l:4.tt1.8*ge llalance

$32$,nüü

3üfi,riÐQ

:;1.tÜ,ti{)ú

$8t,üûfi

{rt 1tù, ûcÜi

$ 1-''J' ÛÚll

gt},r.r,

LStirlr?)

91',},i

$1,798

$1.7ü8

:âil{j7

Yli>rnt

'lurne ËquÍiy
ì Lc¿ri

't.G

ValU¡¿

Ratio (LîV)

I lulsrrll lir P;:yment

1:síutíi.È E Súft, 3A ,¡ear, iuÌív .:íírci¡zit|g íntì-tg.j'r_le is refift.ëíiÊ<td

;4.::r(irì1rì i¿.lr:r-,11¡r.rlr

ili.t

N

À

:

-a

:;1r1jtir

P.irlrlFj

r,i-1:

|:rÌ!zr !:n4::ln. S-t:lë |'Ji | :;!.!. ?r:,r!::1¡:.t,

¡.-A tt4.L

i:t i 4 LE-;'(:i-î:-'aî

Ûv .a

4ch, 30 y<:ar, f¡i!t'/ an¡olti;zinü moitEë?". 5¡.t¡ne

!'.;¿:i?

rneV

i'" 1

r: r' i:E ti

Underwät€r pLS M*rtçæg*s Are W*rth Less Than
"f:arilc

r:f ë,n-r*rir:a l.lr¿ri-ill Lync* h*s ¡:ublÍshe# it::

ttv.¡n {irir:inr¿

*f

i.Ì

alwa',rs perr*rn-''ìng untÌerwsi¿lr Ë'l"l;

Bank of America Me rrill Lynch Pricing
Loan value
(as % of home)

loan

type
AIt-A
Option ARM
Subprime
'3ci¡rcr:: thris
(ì,:: ¿:

:. !

1.i t i it

{i t r ç

li

83%
76%
77%

lmplied
default rate
60%

7t%
70%

A.tlì'Jrica l"f ilrril I L'¡ilr:h,
'*t,tiìl ít. BE rlk <:l'äti:.:'-' ì3*i7e:.8 (1.-i[:ìrJrì +7(i0h¡:i:' j::i:Íi:cr'¡nl: r'ntr::)
ti¡i iti,
Fir i''rilcâ

N
(rl
l{Ì:1?:,,:(ì f¿rìr:'i¡:r¡,â1, Þ.:Il;,rri: j.i-{1
!:j.¡r -r¡:lr,rii: t:iir'¿;I::j/r.::t.t. tuls 2¡] ! | :':'-!r?\'i.!.i;1(:J, t:5 :14:111 ¡ +r5';'9-'';i:;

pAHrål{fi$

F"tr*r¡"les

l¿"!iiltc

PLS

iî: llì:'..: s. i-¡ I i..t ï ì i : I'i

þ1cr ig .å t ûr it¿tsc;

PANT

Reflnãnce üptiün: Follow the Money
Fr+cee,Js From Refinanc*

tî Lac.h Lran {l'f 35% çf home value}

tair Value Faîúlor îar;h

Laa¡t {Tf SÛfz; oî hcme value}

v:dh*.re rJoes the $30,#Û0'çain {J¡i Ëach L,:an
Paíd

ta Conrmunity

Paid

io Funder Fsr lech

Ëor

fiaiì
$9,5ûû "'.-.*

[ach Loan

$3'3,50û

Loan

($4,s00)

Fee Faid BY Funder

tminenT Dornain Legal Fxperrses Þaid By Ëuncler

tçrt *l

l'lomsov¿ner Ldt¡caticn Paid 8y Ëunder

tfiortgage Servicing
Fees Paid

C<¡sts Surir.rg

Halding Perir:$ Pei$ Ðy Funcler

to lnr,teslnient Bankers ?aií 4y Ft*tcJ-er

14.:+îi9.ì n¿Èriìrliârt hfì:tifli ì-:-(:
i:i¿,v --rli-Sr¡rìl¡ li¡.:vr¡rci'ijft?, luflÉ ¿li | *:.:. art!'::'4.o,

o)

\

'.:.¿'

(s2,000)
($ooo¡

{5roo¡
(5s 60

liP3,54ü i8%ì

I¡s.*ç3er liJel l¡r*an'le Per Lr:¿n

N

$l"6o,ooo)

53t,ttrJ

Gain ûr: Læcir Lcan

lfftP

þ 19f¡ ,ûûû

34:l'-L:I

i al -5.;'9:+-;Î:i?-

i

r-;

s

li'*

s-¡

ËR5

I'4 r-,r

i:ç*i; t

ü.

*s*

i

i;'tì

*l i

påRrl{ã*5

MRF is a CommunËty Adviscry Firm
r;li*nlç are çte't*, tt'¿rilvl anrJ *t^ty çúvernfl1en[s that purchaç* u¡i,Jærvça?*'t {tL*
ffi*rtfi;.tçç¡s 4{24 ræçc¡|,.t* th*r,:z lt) t:** ****t,t|t *ï their {*tirtrt,}rtiïiee. Tn *rr}'ero I'f RP pravád*s,
ur-rrJ*r ar¡ ¿¡dvîsor,¡ r-ùnïract with th* r*,;nrrt'¿nitz/, tl"re f*|l':t".ii|tç s*t'vir:*r;
'';.4't7..'Ì

â

i.d,enîify and'¿alv* T:t^$ rnr:rtqaç**
'ãrJ

çcaTe tti e co rr¡ m u*íT.t¿

í+ r

ranç

* a *qti siti a rt I

i

* a'* t:t 11 rJ

Ad'¡ise C*rfirftuni*¡ í* filíng erni**nt dcnr¿¡in ffz*títln

*emonst¡"ate tfte çu*lir PUrPrJs'¿
Ttelermine'fai¡:'f*âr''6"ë't vai*e *T rrt*rtgageg
.å.rranç* servtcinç *î atquit'r'ú rn*rtqÐ.çes

,\rranç* n;s*ltstìr¡n a{ arquir*d rrtr;t'rãaçqÅ
T

N
a4¡titi:at)e çpttÐltt tl:t Piìrlì4.E t.:-Í:

i:i.t a-r:i¡ri.í: l?tr.iit,::!i+ttt.tlt¡c

¿ii|'::.:'at?r:r,!:.tr:.?. l:t34:(t1

i !15.795.:iíì..::

F*resl*st"¡res Reduüe Frcperty Tax fi.eceipts
i

Assumptions:

tlnx'*r Fr*pr:sìlian 7.3 whart hçsm*s ¡zræ
*e:¡Í# ix fts,ec.l+etsr+, t?i* nel*,s Stri;e r;*tr;
Tlrtl lr*¡cl tf*r t;heir asçeçserJ t¡&1#a's:i¿*r\
l*v*fis rsrtri propeû^y lax receip**.

:

Property tax rate
Propostion 13 Cap on Annual lncrease ln Assessed Value
Annual Home Value CAAGR For Next Three Years
Annual Home Value CAAGR Thereafter
I

Highest Assessed Value For Current Owner
Assessed Value Today

Foreclosure Sales Príce Discount

lr,crq:ases in valr"¡ati*ns ârt
l;,¡vät-*tl î* a r*a:<imun^r *f 2*/* ?îr'{eãi'
T1',ær¡

Number of Homes Foreclosed Avoided
Estimated lncrease in Totol Property Taxes Collected
Estimated lncrease in Average Property Taxes Collected

Foreclosure in Yeør 7

No Foreclosure
Year
0

Prop 13

Limit

s4oo,ooo

Assessed Value

S20o,ooo

'),

52o4,ooo

2

541-6,1.60

s2o8,08o

5424,483

2r2,242

3

4
5

6
7
8
9

10

Total
N)

o

5432,973
544:-,632
s450,465
54s9,474

$

1000

Prop 13

Homes

Limit

Assessed Value

lmpact
so

5200,000

S2oo,

52@l,ooo,ooo

$183,600

sL83,6oo

5183,

s208,080,000

S!87,272

5187,272

Srsz

S2l2,24t,600

s191,017

StgL,or7

7,440

s1e4838

5tg4,g¡g
198,735

7,789
s1s4
s1e8, 34,545
s2O2, 09;23s

s224,976,096
s238,474,662

S2sz,7a3

5252,783,r4t

s267,95O

5267,9s1,r30

s2O6,763

s2O6,763

Szoz,tog

5468,664

s284,O27

5478,037

069

530],068,766

izts,tt7

5210,899
s2t5,]-]-7

s319,133

53]-9,132,892

iztg,+tg

52t9,419

s487

Dîffertial

Ho

$400;000

s200,ooo,0oo

$198,735
5202,709

s238,475

roòo

5284

,138

52,712,734,425

56,279,57L
$6,280

s2o,4oo,
2,000

s20,808,

52r,224,160
S30,138,307

s39,740,tL7

5206,763,42o
5270,

550,073,906
S61,186,710
573,

S2i.s,!1.6,662

s8s,9s2,

r-8,996

s2,2].O,368, 776

sse,773,8e6
s502,365,649

¿i,r)¿ Ë5¿'çfþ

i

t¿T,3n !.1

:c-.s:.:-elr:!es tI¿ìZ ¿¡lr¡ii

'
:i:1rj

i{. i#!J
:-'Íì:cii

o)

C\

'îJÕ¡:¡.çruJ

LllsrÐsp ]uä'JtnJ* ue ðlr¿ 03 ÁU3 +l,l? 5Ë¡l*Éll¿lð :1,{.'+uJðeJfrV êq} fi!
"'rj-rt,Lßttd

?)141

$tt'tqZ*t3

"þ

'g
â* slsCI3 frue f'.eü Z*tj T',tap lþ13 ai¿.1.

'ua>¡s1r! ï¡ êlûjâq daxv lxäu si¿3 *r,ûJüúe ìsntr¡ pue ¿usuJestgV
ðr.!1

iãleu!ú¡Jðl ßl *ûp,Ëifi ðr¿1tel{ Å¡3 ai¡l Esar*.¡d ârt} uf dalr Uteæ le 'y:.;.lut.3

¿ll

s!

i',:+t}

*'4i

"r

'däþf hrf *\pe'*t$e pu,e lzir3 a4l. Ã4
nâUÌpour s* Jl,ðrrrae;Ëy it.iusl*py dgil1j aqì Jü çulãí aq¡ "lad lsos #{l }Ð d4t4 su!ä}õJ

sda+S }xäru
5üT¡Êå$Hd
ì-J

*ilil

i :f,

selà-i e

Suilj

;+

trj

,lln

*qt

'T

f''{

i:r iiç p i;*:

R*si:!ui;*i'i
pÂfrTt{ãR!

U/h* Sr-¡ppürts the Fr*gru{Tt?
?¡ r

* a ú r:îj'^n îla * iitty

^
"
,
,
"

-

f * ctss e

d t ts

Ss

p'*

rt

f

*r

I:h

*

ft r * ç'' a rr+

í),?fÁ{îr48.

l\rfr*ritans fçs'r.Finæntial þ,e{*rm
ÇQr;l*r l*r ?aPular ''Jerri*cra*¡
l'lntio nai {,*r,zr.luni'tï'F-ei*veçTnten| [r:nìitiosl
F*{serel'*enkinç t7'*çts.l*l*rs

i:.+pr*n*ntìztrS

"
"
,

'l

.& rnillirsn stæt* an*, Ustrsl r¿*vez"nntenl *ntploye*s
ãft* *:czz1 hts*si*ç f*t:ttt;*4 *rganizati*n*;
25t natirsrral, st;¡I;* er1{} k}*al grr:upr tt;arktn* æn finant,iai i J,Junarî r*1*rvr

:4:lfi:3g11 iìcTùlf a,ri;r k1rìi¿tt l.:-(:
i:i;,:r 1:r :,+:¡'¡i: l:r::¿ar.ia!ii?. :!:ls 2!;a | 5.1'1 ?t:.r,tì.taþ. r.:l ',,41t-'.1 : JÌ5.79î.1:!1-a;

(r)

o

Exhibit

9

Graham Williams < GWi liams@mQft gageresolutionpartners.com
Friday, May 17, 2013 3:51 PM

From
Sent:
Tor

I

>

Patric[ Lynch

Cc:

Bill Lindsay

Subject

Re: Corrected slides

Can we meet soon?
Graham Williams

4t5 97r t77r

OnMay 17,2013,at3:44PM,

"PatrickLynch"<[e-mail]

\¡/rote:

Good afternoon Graham,
No worries, we will make the corrections. Thank you, Patrick.

From: Graham Williams Imailto:[e-mail]

Sent: Friday, l4ay L7,2013 B;35
To: Fatrick Lynch; Bill LindsaY
Subject: Corrected slides

Bill

AM

and Patrick,

In auditing the presentation sent to you I found a calculation error that drove incorrect numbefs
in three slides. These slides have been corrected and they are attached. Please replace the
incorreot pages in the books that I sent you. We apologize for any inconvenience caused.

We are waiting to hear from you regarding a convenient time to discuss next steps.
Yours,

Graham Williams
Partner'& CEO
Mortgage Resolution Partners
423 Washington Street, Suite 200
San Francisco, CA 94111
(o) 415.423.0016
(m) 415.971.1771

1

1

Confrdential

Preventing Foreclosures in Richmond, Caltfornta

Actions to Date and Recommended Next Step
ñ

In April of 2013 the City engaged Mortgage Resolution Partners MRP to act as its advisor to assist rtre Gty itt exploring potential
will provide the necessary
solutions to the morrgage crisis; to assist the City bynegoti"ti"g on the City's behalf with entities
v¡ith tlird parties
fuodiog to the Ciq'in order to allow the Crq'to acquire loans; and to assist the City in negotiating
necessaÐ/ to implement a
lenders, daa companies, other govemment agencies and others
including owflers of loans, attorneys,
program or programs to benefit the City's

residents.

I

!t
ä
E

MRP has identified pùblic purposes for preventìng forecìosures in the

r
s
ã

MRP has anùyzeð,benefirs to each of the 1,681 borrov¡ers should tley be included in the pr.rrcrpd ,eJ,.tction Program.

s

N

MRP has identified

MRP is seeking permission to enrer into negotiaúons on behalf of the City with mortgage servicers that represent trustees thât
administer the securitization trusrs in which underwater PLS mortgages in Richmond are held. The hoþed for conclusion of these
negotiations would be that the loans are sold to the cig', ¿o-t* the CARES program to be executed-,

families i¡ the Ciq/5 ¡,rr¡r*cdon that are bu¡d.ened u¡ith uriderwater
mortgag€ backed securities (?LS).
1.,68'L

eity

*o*g"g,t,

held in pririate label

)

H.U.D. info¡ms us that principal reductions of underwater PLS mortgages will prevent forecLosures that impose costs on the ciry,
fârnjlies, lenders znd neighb oring p rop erg. owners.

MRP has desþed a.proga¿r¡-of principaì reduction- CommunityAction to Restore Eq"ity and Stabilitv
MRP has ørrangeð.the g46 million of financing that is required to rmplemen tthe initial CARES prograin in Richmond, CA. More
funding is avasføble to Richmond u¡hen needed.

i:.

ti

{:,

i i it

::i

ii +

ti :j.

+2

:,,.

i

i

i..i +..i'{'

Pir2Tl¿ltti

;i

Confrdential

Preventing Foreclo sures in Richmond, Calsfornta

Secuted Mortgage Notes StructuralDiagram, Richmond, CA

"Taken" Loa¡s

Noæs

+

$

Loans Submitted for Reûrnncilg

.¿\uction

of Þ.llout

(¡)
+

Maximum

80%r

of homc valuc; exclucles Ee¡rsaction costs anclêrcclit support mouot, if any

l:

ii

:: : :' i.'::: ;',:

i'

i

;

:¡ ; i ;,,'-.,,,.-,, i. ;"¡.
-

?t2ili,l7.5

1

:.

;

i'=:

ConfrdentíaI

Preventing Foreclosures in Richmond, California

Cash Flows Fot

Initial Putchases of Undetwater PLS in

CA

Unde¡x¡ater PLS Loa¡rs
Loans not current

1681

419

Loans purchascd via conse¡sual
Average home Value

Crrrent loans with seconds
L,oans presented to servicers for purchase

-531

274

Consensual loan pool
Consensual loan pool
FIIA qualifiying loans

Loans purchased via consensual purchase

57,986,526

NetAcquisition Price
Loans presented to servicers for purch¡ce
Serviccr conseut rate

Aggregatehome value

$
$
s

46,3E9,221

73t
731
50%
365.5
365.5
75Yr

274

211,533

Pull

Lous ffipullthrough)
NetProceeds (% Home lÌalue)
Proceeds to City Resèrve (% of net

$

Loans purchased via consensual purchase
Average home Value

$211,533

Fallout Population
Loans (/o fall out)

Aggregate home value

$57,986,526

Net Proceeds

Aggregate home valuç

$57,986,526

Estimated FMV of mortgage
Estimated fir¡ding amount

4,7s4,89s

$

8,69'1,9'.79

$

Basis

i.1i,tl1,376i

s

Profit

iz,2i)2,,4úZi

$

Basis

44,069,759

5%S

579,865
9,277,844

s46,389,221

274

80%

Home
City Reserve Recaphuo
(%o

55

20%ol

Vatue)

75'4

$

Proñt

0

Funder's Profit
Putl Througb Population

$

Falloui Population
P&I on Entire Population

4,754,895

$

Estimated Tra¡saction Fees

$
(1%o)

Total Profit

$
$

510,281.43
(4ii:ì,ä!li'..)-ï ì
4,801,284

n%

Funders Return on Capital
$

Pø¡d to Cíty

City's Proceed per Resolution

À

r,623,623

s

7,404

{:,t¡,J r i,.,;:..-.: i

¿

i,

a.

23

;i

i

i.

.i

r.i.{¡

-

z

i

?þ.kIl1 V'ttt

Exhibit 10

Bill Lindsay <[e-mail]>
<Sue [e-mail] >
Wednesday, APril 03,2013 12:03 PM

From:
Sent:
To:
Subject:

on behalf of sue Kadlec

Graham Williams
RE: Staff Report for MRP Advisory Services Agreement

l'll get backto you to confirm.
Thank you

Sue Kadlec

Executive Assistant to City Manager Bill Lindsay
City ManageCs Office
450 Civic Center Plaza, Suite 300
Richmond, CA 94804
51 0-621 -1264 di rect li ne
510-620-6542 fax

From: Graham Williams

Senh Wednesday, April 03, 2013 12:01 PM
To: Bill Lindsay
Subject: Re: btatr Report for MRP Advisory
Yes, I can be

Seruices Agreement

there.

GrahamWilliams
Partner and Chief Executive Officer
Mortgage Resolution Partners LLC
415.971.1771

Providing Locol Solutions for CommunitÍes
plsforcommunities.org

On 4|3/L3 L1:55 AM, "BilI Lindsay" <þil!--[1¡dq.@i¡çhmo!d'ca'us>

wrote:

I am hoping our Housing Director Patrick Lynch is
Are you available tomorrow, 4/4lL3at Lpm to come to City Hall?
Lynch, I will confirm the meeting.
avaÍlable to attend as well. As soon as I hear from you and Mr.

Please reply directly to me at

Thank you.

sue kadlec@ci'richmond'ca'us

Sue Kadlec
Executive Assistant to City Manager Bill Lindsay
City Manager's Offìce
450 Civic Center Plaza, Suite 300
Richmond, CA 94804
51 0-621 -1 264 d i rect li ne
51 0-620-6542 fax

From : Graham Williams Imailto:[e-mail]]

Sent: Wednesday, April 03, 2013 9:30 AM
To: Bill Lindsay
Subject: Re: Staff Report for MRP Advisory

Services Agreement

Great, I'm in town the rest of this week and fairly available. I'll come over to see you whenever you would like.

Graham Williams

Partner and Chief Executive Officer
Mortgage Resolution Partners LLC
415.971.1771

Providing Locol Solutions for Communities
plsforcomm unities.org

on 4l3lL3

9:28 AM, "Bill Lindsay"

(
<bill [e-mail]> wrote:

you missed the best part. The City Council approved the advisory services agreement (unanimous vote). To the extent
that any of the Councilmembers had concerns, they had to do with the new mortgages that properÇ owners would
enter into (usurious interest rates, etc.). I indicated that the new mortgages would be based on the reduced principal,
consistent with the market, and would need to be a mortgage for which the property owner could qualify. (l believe all
of that is correct.) ln any case, they would like more information about this, although they gave approval for the
program to start.
perhaps we should talk more about this when you have a chance, and we can discuss more specifically the next steps.

From: Graham Williams lmailto:[e-mail]

Sent: Wednesday, April 03, 2013 B:49 AM
To: Bill Lindsay
Subjech Re: Staff Report for MRP Advisory

Seruices Agreement

B¡II,

I

watched the meeting but nodded off at about 10pm. Did the MRP motion get approved last night?

Graham Williams
Partner and Chief Executive Officer
2

Mortgage Resolution Partners LLC
415.571.1771

Providing Local Solutions for Communities
plsforcom munities.org

on 4/L/L3 8:11 PM, "Bill Lindsay" <bill [e-mail]> wrote
Graham:
Thanks for the email. I suggest that you skip the meeting tomorrow night. I think that you've provided all the information,
and I have had no qûestions from Councilmember. I am hoping that it stays on the consent calendar and gets
approved. Besides, tomorrow's meeting will be a long one.
Bill Lindsay

BillLindsoy
Cíty Mønøger
City of Richmond
510-620-6512

Bill

li ndsov @ cí.rich mond.

ca,us

On Apr !,20L3, at 5:02 PM, "Graham Williams"

<Gw¡lliams@mortsas

wrote:

Do you need me to attend?

Graham Williams

4t597LL77L
On Apr L,2O!3,aT4:2t PM, "Bill Lindsay"

<bill [e-mail]> wrote:

Bill and Graham:
please see the attached staff report regarding tomorrow night's agenda ítem concerning
approval of the M RP advisory servíces agreement. (The attachments to the staff report
are the agreement and the presentation, which you already have.) The item is on the
consent calendar; hopefully, it will stay there, get approved, and we can get started.
Thanks for your work on this.

Bill Lindsay
Bill Lindsay
City Monager
City of Richmond
3

450

C¡v¡c Center Plozd

Rich mond, Californío 94804

(s10) 620-6s12
Bi

ll

lindsav

@ ci.

richmond.ca.us

<4-2-13 - M RP Advisory Servcies Contract.doc>

\

4

Exhibit

11

Nicole Vale ntino < Nicol e @offìceofthemayor.net
Friday,June 2'J-,2O\3 5:48 PM

From:
Sent:

Gayle McLaughlin

To:
Subject:

FYI: we can

>

FW: Resident looking for information on Mortgage Resolution Partners

deal wíth this on Monday with your direction.

Thanks,
l/tbolu

From: LaShonda White
Sent: Frlday, June 21, 2013 2:53 PM
To: Nicole Valentino; ](ibibi Culberbon; Patrick

Lynch

Cc: [e-mail]

SubJect: Resident looking for information on Mortgage Resolution Partners
HiAII,
Genny Zentella came into our office yesterday to get information on the prògramthat the Mortgage Resolution Partnels
is offering. Ms. Zentella has a mortgage that is underwater and she would like to know if she will qualify for the
program. Can someone please contact her at 510 - 685-5382 or qt [e-mail]? Ms. Zentella is copied on this

email.
Thank you,
LaShonda White

Managernent Analyst
City Manage/s Office
City of Richmond
[phone] Direct Line
[phone] Fax

Exhibit 12

MAYER.BROWN
MaYer Brown LLP
350 South Grand Avenue
25th Floor
Los Angeles, California 90071-1503
Main Tel [phone]

August 13,2013

VIA

MainFax+1 2136250248
www.maYeôrown,com

UPS

Bronwyn F. Pollock
Direct Tel [phone]

Mr. William A. LindsaY
City Manager
450 Civic Center Plaza
Richmond,

ce

96þo+-r

Direct Fax [phone]'138
[e-mail]

o:o

Dear Mr. Lindsay:
'We

represent The Bank of New York Mellon and The Bank ofNew York Mellon Trust

Company, N.A. in connection with your letter of July 31,2013'

First, I wish to clarify that The Bank of New York Mellon ("BNY Mellon") is not the servicer on
of New York
urry áf th" 86 trusts listed on Exhibit A to your letter. It, or its affiliate, The Bank
1y1ãilon Trust Company, N.A. ("BNYM Trust Compatry"), is the trustee of 85 of these trusts'
With respect to CFIASE 2005-S2,neither BNY Mellon nor BNYM Trust Company is the
servicer or the trustee of such trust.
Second, we do not believe that the agreements from which BNY Mellon or BNYM Trust
Company derives its authority, or the pertinent IRS regulations, permit BNY Mellon or BNYM
TrusiCompany, as trustee, to sell non-delinquent loans. This factor is not within our control. If
at
you have obt*in"d contrary legal advice on this threshold issue, we would
'We
of loans identified in your
further note that the large majority
analysis.
their payments-they are not delinquent or in any stage of foreclosure. For
experìencing difficulty making payments, however, there are numerous federal and state

a

programs designed to p¡ovide assistance'

Third, it is our understanding that with respect to any loans identified on Exhibit C to your letter
which are held by trusts for which BNY Mellon or BNYM Trust Company act as trustee but
which trusts were not listed on Exhibit A to your letter, the City has not, at this time, made an
offer to purchase sr¡ch loans.
Finally, as you know, we have filed a lawsuit in the Northern District of California seeking to
enjoin the City from using eminent domain to take mortgage loans from the foregoing trusts. As
our complaint explains, we believe that such use of eminent domain is contrary in several
respects to well-established law and would result in significant losses to the trusts and
consequently to pension funds and other investors in the trusts.

Mayer Brown LLP operates in combination wilh other Mayer Brown entities with offices in Europe and Asia
and is associated with Tauil & Chequer Advogados, a Brazilian law parlnership.

Mayer Brown ttP

Mr.'William A. LindsaY
August 13,2013
Page2

we recognizethatthe city

has a different

view. Nonetheless,

as

I have discussed with the city

constitutional
Attorney;s office, we beliLve that we have a mutual interest in resolving important
expeot that you will provide us with notice before
issues in an orderly marurer. Accordingly, we
taking any further action in respect of the loans or the trusts'
Sincerely,

707267226.1

Exhibit 13

RICHMOND, CALIFORNIA,
September 10, 2013
The Richmond City Council Evening Open
Session was called to order at 5:15 p.m.

ROLL CALL
Present: Councilmembers Bates, Butt, Myrick,
Rogers, Vice Mayor Boozé, and Mayor Mclaughlin.
Absent: Councilmember Beckles.

PUBLIC COMMENT
The city clerk announced that the purpose ofthe
Evening Open Session was for the City Council to hear
public comments on the following items to be discussed
in Closed Session:

CITY COUNCIL
CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION (Subdivision [al of
Government Code Section 54956.9):
rWells Fargo vs. City of Richmond

Bank of New York vs. City of Richmond
Chevron vs. Contra Costa County

CONFERENCE \ryITH LABOR
NEGOTIATORS (Government Code Section
54957.6)t
Agency designated represelltatives: Bill Lindsay,
Jack Hughes, Michael Banks, Bruce Soublet, and Lisa
Stephenson; Employee organization: Richmond Fire
Management Association (RFMA
Agency designated representatives: Bill Lindsay,
Jack Hughes, Lisa Stephenson, Bruce Soublet, and Chris
Magnus; Employee organization: Richmond Police Officers'
Association (RPOA

There were no speakers.

at 5:16

The Open Session adjoumed to Closed Session
Session adjourned aI 6:57 p.m.

p.m. Closed

The Special Regular Meeting of the Richmond
City Council was called to order at 7:08 p.m. by Mayor
Mclaughlin who led the Pledge of Allegiance to tlte
Flag.

ROLL CALL
Present: Councilmembers Bates, Butt, Myrick,
Rogers, Vice Mayor Boozé, and Mayor Mclaughlin.
Absent: Councilmember Beckles arrived at 7:13 p.m.

ccl 3Sepl 0
Page I of l0

STATEMENT OF CONFLICT OF INTEREST
None.

AGENDA REVIE\ry
Items G-1, G-2,G-4, G-10, G-13, G-14,G-17,
G-19, and G-22 were removed from the Consent
Calendar. A motion was made by Councilmember
Bates, seconded by Vice Mayor Boozé to overturn the
mayor's decision to hear from staffafter the public
speaks. The motion failed by the following vote: Ayes:
Councilmember Noes: Abstentions: None. Absent:
None. Continued Item G-20 to September 17 , 2013.

REPORT FROM THE CITY ATTORNEY OF
FINAL DECISIONS MADE AND NONCONFIDENTIAL DISCUSSIONS HELD DURING
CLOSED SESSION
City Attomey Bruce Reed Goodmille¡ stated
that there were no reportable actions.
OPEN FORUM FOR PUBLIC COMMENT
Mark Wassberg stated that he was attacked by a
Richmond Progressive Alliance member during the
Saturday, August 3,2013, March on Chevron Refinery.
David Gesinger stated that he has been trying to
home in the City of Richmond for approximately
one year and was continuously outbid by Wall Street
investors that are giving cash only offers. Mr. Gesinger
also stated that realtors are listing homes for cash only
offers, and requested that the City of Richmond look
into this situation.

buy

a

Leonard Taylor gave comments regarding
personal issues with East Bay Mudd.

Antwon Cloird stated that all black
organizations in the City of Richmond were not
homophobic, specifically the Men or Purpose.
Sims Thompson stated the City Council should
be careful how it treats the community, and should
work to protect the cornmunity.

Bill Pinkham stated that over 3000 people
showed for the Saturday, August 3,2013, peaceful
Ma¡ch on Chevron Refinery. Mr. Pinkham also
commended the Richmond Police Department for its
treatment of the demonstrators.
Dana Clrase stated that her children are not
allowed to watch the Richmond City Council meetings
because of the behavior of the Councilmembers. She
stated that the CoLrncilmembers should show respect

cc1 3Scp I 0
Page 2 of 10

for

one another. Ms. Chase also stated that Mayor

Mclaughlin should try to get along with other
Councilmernbers.
Jackie Thompson stated that Stege Aventte does
not have regular street sweeping and requested that staff
address this issue. She also stated that violence
prevention in the City of Richmond should be funded.

Vinay Pimple stated that he has an altemative
for the mayor to gain control of Council Meeting as
opposed to immediately calling a recess. He stated that
the mayor should ring a bell to give a warning when
individuals and Councilmembers are out of order, and if
there is no compliance, than call a recess.
Mike Peritz invited everyone to the \üest Contra
Costa County Unified School District Meeting on
Wednesday, September 11,2013; Kennedy High raised
its Academic Performance Index and will be honored.
He also stated that the "Day at the K" will retum the
first Saturday in October 201 3
.

Eduardo Martinez stated that events such as the
Cease Fire Walks and different music festivals pull
Richmond together. Mr. Martinez announced that there
a music festival on Friday, September 13,
2013, 5:30 p.m. in Point Richmond, and also a Laurel
Street Blues Festival on Sunday, September 22, 2013.

would be

Andre Soto stated that on Friday, August 2,
2013, there was a press conference at City Hall where
the City of Richmond announced its lawsuit against
Chevron for the refinery fire and explosion. Mr. Soto
also stated that on Saturday, August 3, 2013, 3000
people showed for the peaceful Ma¡ch on Chevron
Refinery, and he thanked the Richmond Police
Department for its support. Mr. Soto also reported that
on Monday August 5,2013, Chevron pled "no contest."
He also stated that individuals gathered on Tuesday,
August 6,2013, for a memorial of the actual
anniversary of the toxic fire and explosion. Mr. Soto
also stated that it was wonderful when the citizens
confront the powers that are trying to oppress them.
Silvia Ledezma announced that there will be a
benefit concert for Los Cenzontles "Supporting Roots"
Campaign to raise funds to expand and renovate its
lacility and expand its renowned cultural arts
programming, Sunday, September 29, 2013, 7:00 p.m.
at the Craneway Pavilion. The concenl will feature
Jackson Browne, David Hidalgo, and Los Cettzontles,
and tickets may be purchased at
rvww.iacksonbrowne.corn.
Andre Carpiaux gave comments in support of
Vice Mayor Boozé and asked Mayor Mclaughlin not to
interrupt Vice Mayor Boozé when he was speaking.

ccl 3Sepl 0
Page 3 of l0

CITY COUNCIL CONSENT CALENDAR
On motion of Councilmember Myrick, seconded
by Councilmember Rogers all items with an (*) were
approved by the unanimous vote of the City Council.
The matter to introduce an ordinance for first
reading updating Chapter 12.22 of the Richmond
Municipal Code that pertains to Stormwater
Management and Discharge Control in order to comply
with regulatory requirements was presented by City
Manager Bill Lindsay. On motion of Councilmember
Butt, seconded by Councilmember Myrick said
ordinance received f,irst reading and was laid over to
September 17 , 2013, for second reading by the
unanimous vote of the City Council.

Continued to September 17,2013, the matter
to ¡eceive the Grand Jury Report No. l3 I 1 , "Assessing
Financial Risk," and review and approve the response to
this report.
*-Approved the annual support and user license
agreement with Faster Asset Solutions by CCG
Systems, Inc. for fleet management software used in
maintaining data records of city-owned equipment, in
an amount not to exceed $ 1 I ,350 for Fiscal Year
2013114 and in an amount not to exceed $12,000 per
year for Fiscal Years 2014115 and 2015/16.

Continued to September 11,2013, the matter
to reject all bids received for the Urban Runoff
Treatment Retrofits at I st Street and Cutting Boulevard,
and re-advertise this project.
*-Approved a Memorandum of Understanding
(MOU) between Rubicon Programs, Inc. and Richmond
Public Library-LEAP, allowing the LEAP Program to
receive $32,030 for the period ofJuly 1, 2013, through
June 30, 20l4,in exchange for providing basic literacy
and GED preparation for Rubicon, and APPROVE an
amendment to the Fiscal Year 2013-2014 Operating
Budget increasing library fund revenue and
expenditures in the amount of $32,030.
*-Approved a Memorandurn of Understanding

(MOU) between Bay Area Community Resources
(BACR) and Richmond Public Library-LEAP to allow
BACR to place a VISTA position at Richmond Public
Library-LEAP to support volunteer recruitment at a cost
to LEAP of $14,664.
*-Approved an agreement with the California
State Library allowing the Richmond Public LibraryLEAP to receive funding to provide literacy services for
the City of Richmond, AUTHORìZE the Library and
Cultural Services Director to accept the State funds in
the amount of $ 10,000, and APPROVE an amendment
to the Fiscal Year 2013-14 Operating Budget to
increase library fund revenue and expenditures in the

ccl3Scpl 0
Pagc 4 of

l0

amount of $10,000

*-Adopted Ordinance No. 1ó-13 N.S. to
establish wages, salaries, and compensation for the
classifi cati ons represented by the International
Federation of Professional and Technical Employees
(IFPTE Local 21) in the city's classified service, and
repealing Ordinance No. 38-06 N.S.
*-Approved the grant-funded purchase of a
mobile office/storage combination trailer for the
Richmond Fire Department Marine Response Program
from Mark Holmes, dba Holmes Construction, using
Fiscal Year 2012 Bay Area Urban Area Security
Initiative (UASD funds in an amount not to exceed
$24,500.

Continued to September 17,2013, the matter
to approve a contract amendment with TPA
Construction Inc. for completion of the Dornan Drive
Tunnel Project, increasing the contract amount by
$330,000 for a total of $ 1 ,405,328.
*-Adopted Resolution No. 89-13 approving a
Memorandum of Understanding (MOU) between
RFMA and the City of Richmond. The MOU will be
effective from July 1,2013, through June 30, 2016, and
provides for a3o/o annual salary increase each
September 1 for the years 2013, 2014, and 2015. The
salary increase is offset by RFMA members
contributing an additional lo/o per year toward CaIPERS
pension cost (3% over the life ofthe contract, for a total
contribution of l2%o at the end of the term).
*-Introduced an ordinance for first reading to
establish wages, salaries, and compensation for the
classihcations represented by the Richmond Fire
Management Association (RFMA) in the City's
classified service, and repealing Ordinance No. 39-06
N.S.

Continued to September 17,2013, the matter
to approve a contract with Networkfleet for Global'
Positioning System (GPS) tracking and management in
an amount not exceed $95,000 for a two-year term, and
the option for two one-year extensions in an amount not
to exceed S47,500 per year.
Continued to September 17,2013, the matter
to approve a contract with AAA Feuce Company, Inc.
for chain link fence repair and replacement surrounding
the sport courts at Belding-Garcia Pa¡k and Lucas Park
in an amount not to exceed $40,582.30 which includes
a 10Yo city controlled cost contingency. The contract
term will be from September 11,2013 to June 30,2014.

ccl 3Scp I 0
Page 5 of l0

*-Approved a service contract with BMW
Motbrcycles of San Francisco to provide regular
maintenance and repair services for the Richmond
Police Department's BMW motorcycle fleet, at a cost
not to exceed $60,000 ($30,000 per year, for a two-year
term) from July 1,2013, through June 30,2015.

*-Accepted and appropriated a grant from Cities
of Service in the amount of $25,000 to expand writing
support to high school students through the
WritersCoach Connection Program at Richmond High
School; and approved the appropriation ofa bonus
grant ofup to $5,000, contingent upon the grantee
meeting the year-one impact benchmarks specified in
the Cities of Service Impact Volunteering Fund
Memorandum of Understanding.

In the matter to approve the following
appointments and re-appointments: Historic
Preservation Commission: Kimberly Butt, incumbent,
term expiring July 31, 2017; Robin Cawelti, incumbent,
term expiring July 31, 2017;Point Molate Community
Advisory Committee: Eduardo Martinez, incumbent,
term expiring May 30,2015; Workforce Investment
Board: Uche Justin Uwahemu, new appointment; Jake
Sloan, new appointment; Economic Development
Commission: David Schoenthal, new appointment, term
expiring March 30, 2016;D. Dexter Vizinau, new
appointment, term expiring March 30, 2016; and
Commission on Aging: Kathleen Good, new
appointment, term expiring May 19, 2015; on motion of
Councilmember Butt, seconded by Mayor Mclaughlin
approved the appointments and reappointments by the
following vote: Ayes: Councilmembers Bates, Beckles,
Butt, Myrick, Rogers, Vice Mayor Boozé, and Mayor
Mclaughlin. Noes: Councilmember Bates and Vice
Mayor Boozé voted Noe on the reappointment of
Eduardo Martinez to the Point Molate Community
AdvisoryCommittee. Abstentions: None. Absent:
None.
*-Approved the minutes of the July 23 and 30,
201 3, special meetings.

The rnatter to direct the Richmond City
Councilmembers that represent the Cify of Richmond
on the West Contra Costa Integrated Waste
Management Authority ("RecycleMore") Board of
Directors to p'lace on that agency's agenda, and to vote
in supporl of, an amendment to the West Contra
lntegrated Waste Management Authority Joint Powers
Authority Agreement that provides more flexibility to
members wishing to withdraw from the Authority was
presented by City Manager Bill Lindsay. Chris Leon
gave comments. On motion of Councilmember Butt,
seconded by Cotrncilmember Beckles directed the
Richmond City Councilmembers that represent the City
of Richmond on the West Contra Costa Integrated
Waste Management Authority ("RecycleMore") Board
ofDirectors to place on that agency's agenda, and to

ccl 3Sepl 0
Page 6 of l0

vote in suppofi of, an amendment to the West Contra
Integrated Waste Management Authority Joint Powers
Authority Agreement that provides more flexibility to
members wishing to withdraw from the Authority by
the unanimous vote of the City Council.

Continued to September 17,2013, the matter
to introduce an ordinance to ban alcohol billboards near
schools, in order to reduce the number of mino¡s who
become at risk for alcohol abuse due to starting to drink
before they can make an informed, adult choice.
*-Designated Councilmember Butt as voting
Cily of Richmond at the
Annual Business Meeting of the League of California
Cities 2013 Annual Conference to be held September
18-20,2013, at the Sacramento Convention Center,
Sacramento, Califomia.
delegate to represent the

In the matter to adopt a resolution authorizing
the city manager to enter into and execute all
agreements llecessary to amend and assess franchise
fees for the collection and processing oftrash,
recyclables, and green waste to compensate the city for
fiscal impacts caused by roadway maintenance, litter
abatement, and Storm Water Program management,
Chris Leon gave comments. A motion was made by
Councilmember Butt, seconded by Councilmember
Beckles to approve the item. A friendly amendment
was offered by Councilmember Bates to modifrcation to
the language to read "to adopt a resolution authorizing
the city manager, with approval of the City Council, to
enter into and execute all agreements necessary to
amend and assess franchise fees for the collection and
processing oftrash, recyclables, and green vr'aste to
compensate the city for fiscal impacts caused by
roadway maintenance, litter abatement, and Storm
Water Program management. The friendly amendment
was accepted aud Resolution No. 90-13 was adopted
by the unanimous vote of the City Council.

PUBLIC HEARINGS
Continued to September 17,2013, ¡eceive
testimony regarding the proposed Consolidated Action
Plan Evaluation Report (CAPER) and approve the
2012-2013 CAPER.

COUNCIL AS Ä WHOLE
Mayor Mclaughlin combined Items l-1,1-2,and
l-3; however, each item had a separate vote. City
Manager Bill Lindsay gave an overview of the eminent
domain process. The following individuals gave
comments: Rosa Lara, Sylvia Gray-White, Antwon
Cloird, Paul Larudee, Bill Pinkham, Karen Franklin,
Jackie Thompson, Mike Parker, Joshua
Genser, John Frangoulis, Scott Barker, Maria
Katznelson, Jerry Feagley, Renee Bartels, Pam Bilbo,
Patty Castillo, Ariana Casanova, Megan Roberts, Susau

ccl 3Scpl 0
Pagc 7 of l0

Harman, J. P., Mark Wassberg, Lisa Johnson, Jeff
Romm, Katrinka Ruk, Susan Bazela, Harris Crackin,
Bea Roberson, Morris LeGrand, Edward Stevens,
Tarnel Abbott, Ali Marshall, Maximo Rivera, Don
Winters, Stephanie Harvey, Vinay Pimple, Melvin
Willis, Betty Reid Soskin, Kate Sibley. (On motìon of
Councilmenber Myrick, seconded by Councílmember
Beckles to suspend the rules pasl 11:30 p,m. and hear
the speakers and vote on each ítem passed by the
following vole: Ayes: Councilmembers Bull, Beckles,
Rogers, and Mayor McLaughlin. Noes: None.
Abstentions: Councilmember Bates ønd l/ice Mayor
Boozé, Absenl: None.) Speakers continued with:
Amy Schur, Andre Soto, Eduardo Martinez, Tracy
Fetter, Dennis Dalton, Darlina Darlgna, Brant Fetter,
Donald Johnson, Maeve Elis Brown, Tony Sustak,
Doug Gilbert, Doria Robinson, Najari Smith, Katy
Robinson, Margaret Jordan, Genny Zentelle, Juan
Reardon, Michael Leedie, Margaret Brown, Elsa
Stevens, David Gensinger, Zack Wear, and James
Zahradka.
The matter to di¡ect the city manager to
withdraw any offers made to servicers of mortgage
loans to purchase such mortgages based on fair market
vafue (letters dated July 31,2013), and to amend the
advisory services agreement with Mortgage Resolution
Partners, LLC to eliminate the option of utilizing
eminent domain as an option to acquire mortgages was
presented by Councilmember Bates and Vice Mayor
Boozé. A motion was made by Councilmember Bates,
seconded by Vice Mayor Boozé to: (l) direct the city
manager to withdraw any offers made to servicers of
mortgage loans to purchase such mortgages based on
fair market value; and (2) permanently end taking
further steps to amend the advisory service agreement
with Mortgage Resolution Partners, LLC to eliminate
the option of using or attempt to use eminent domain to
obtain mortgage loans. On motion of Councilmember
Beckles, seconded by Councilmember Butt ended
debate by the following vote: Ayes: Councilmembers
Beckles, Butt, Myick, and Mayor Mclaughlin. Noes:
Councilmembers Bates, Rogers, and Vice Mayol
Boozé. Abstentions: None. Absent: None. The
motion by Councilmember Bates failed by the
following vote: Ayes: Councilmembers Bates, Rogers,
and Vice Mayor Boozé. Noes: Councilmembers
Beckles, Butt, Myrick, and Mayor Mclaughlin.
Abstentions: None. Absent: None.
The matter to hea¡ a report from staff on
Richmond CARES - the Local Principal Reduction
Prograrn, and direct staffto: (l) to work to set up a Joint
Powers Authority (JPA) together with other interested
municipalities, as a next step forward in the
development of this programl' (2) to confirm that no
loans will be acquired by the City through eminetrt
domain before coming back to the full City Council for
a vote; and (3) to continue working with MRP to
resolve any rernaining legal issues was presented by
Mayor Mclaughlin. A rnotion was made by Mayor
ccl 3Sepl 0
Page 8 of 10

Mclaughlin, seconded by Councilmember Beckles to:

(l)

to work to set up a Joint Powers Authority (JPA)
together with other interested municipalities, as a next
step forward in the development of this program; (2) to
coufirm that no loans will be acquired by the City
through eminent domain before coming back to the full
City Council for a vote; and (3) to continue working
with MRP to ¡esolve any remaining legal issues, and
direct staffto issue monthly reports, and retum to the
City Council in 30 days with an update. (A motìon was
made by Councílmember Beckles, seconded by
Councìlmember Myríck lo end debate. The City
Council recessed at 1:35 ø,m, ønd reconvened at 1:37
a.m. Councilmember Myrick wíthdrew his second
and debøte continued.) The motion by Mayor
Mclaughlin was approved by the following vote:
Ayes: Councilmembers Beckles, Butt, Myrick, and
Mayor Mclaughlin. Noes: Councilmembers Bates,
Rogers, and Vice Mayor Boozé. Abstentions: None.
Absent: None.
The matter to consider informing Mortgage
Resolution Partners (MRP) that if they fail to provide
insurance to protect the City of Richmond from
litigation and related damages due to the city exercising
its power of eminent domain to acquire underwater
mortgages, the city will not proceed with eminent
domain actions was presented by Councilmember
Rogers. A motion was made by Councilmember
Rogers to inform Mortgage Resolution Partners (MRP)
that ifthey fail to provide insurance to protect the City
of Richmond from litigation and related damages due to
the city exercising its power of eminent domain to
acquire underwater mortgages, the city will not proceed
with eminent domain actions. Councilmember Myrick
seconded the motion with a friendly amendment to
modiff language to read "if MRP cannot provide proof
of financial responsibility, the City of Richmond will
reconsider this agreement." The friendly amendment
was accepted." Vice Mayor Boozé offered a friendly
amendment to the language to read "if MRP cannot
provide insurance than the City of Richmond will
discontinue business." The amendment was not
accepted. (A motìon by Councìlmember Bøtes,
seconded by Councílmember Beckles to end del¡ale
passed by the followíng vole: Ayes: Councìlmenber
Bates, Beckles, Butt, and Mayor McLaughlin. Noes:
CouncÍlmembers Myrick, Rogers, and Vice Mayor

Abstentíotts: None. Absenl: None.) The
original motion failed by the following vote: Ayes:

Boozé.

Councilmember Myrick and Rogers. Noes:
Councilmembers Bates, Butt, Beckles, Vice Mayor
Boozé, Mayor Mclaughlin.

Continued to September 17,2073, the matter
to oppose appeals to modif, or remove conditions of
Alcohol Beverage Licenses for Val Mar Market located
at 3630 Barrett Avenue, and Family Market located at
700 Pennsylvania Avenue.
REPORTS OF OFFICBRS: STANDING
cc13Scp10
Page 9 of

l0

COMMITTEE REPORTS. REFERRALS TO
STAFF. AND GENERAL REPORTS (INCLUDING
AB 1234 REPORTS)
None.

ADJOURNMENT
There being no further business, the meeting
adjourned at2:09 a.m. in memory of Pastor Carla
Maxine Jackson and Osbom Hill, to meet again on
Tuesday, September 17,2073, at 6:30 p.m.

City Clerk

(sEAL)
Approved:

Mayor

ccl3Sepl 0
l0 ot l0

Page