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HomeMy WebLinkAbout16 RECOVER COSTS NUIS 12-04-95 NO. 16 2- In t e r- C o rn .~ATE: DECEMBER 4, 1995 TO' WILLIAM A. HUSTON, CITY MANAGER COMMUNITY DEVELOPMENT DEPARTMENT FROM' STATUS OF EFFORTS TO CONTACT PROPERTY OWNERS OF SUBJECT PARCELS PERTAINING TO RECOVERY OF CITY COSTS FOR THE ABATEMENT SUBJEC~ OF A PUBLIC NUISANCE AT PROPERTY LOCATED AT 1776 NISSON ROAD, AND TWO PROPERTIES LOCATED IN EAST TUSTIN AT TRACT 13908, AND TRACT 13627, LOT 26 RECOMI~ENDATION It is recommended that City Council: . Certify all City costs incurred on properties located at 1776 Nisson Road, Tract 13908 and Tract 13627, Lot 26. o Direct the City Attorney to file a claim with the bankruptcy court to recover the costs of weed abatement for Tract 13908 and to take all other steps that would recover City incurred costs including administrative and legal costs. . Direct the City Attorney and the Community Development Department to continue to work to contact the property owners of Tract 13627, Lot 26 and 1776 Nisson Road to recover the costs of weed abatement and administrative costs. Failing to secure compliance, a lien assessment for the costs of the abatement shall be recorded with the Orange County Recorder. BACKGROUND After receiving complaints from several residents about the weed problem at the 'subject properties, staff unsuccessfully attempted to reach the respective property owners to notify them of the need for weed abatement. Because of the immediate threat to health and safety caused by the extremely overgrown weeds, staff proceeded with the nuisance abatement incurring costs totaling $6,024.85 (see attachment). Pursuant to Tustin City Code section 4417 and 4418, a report was presented to the City Council on November 20, 1995 with a recommendation that an assessment be placed against the subject properties. At that time, the City Council asked for additional information, including: 1) property owner information, and 2) an update of staff's efforts to contact the respective property owners. As well, the City Council also had questions concerning whether it would be prudent to place a lien on property which is in bankruptcy. William A. Huston Recovery of Costs for Abatement of Public Nuisance December 4, 1995 Page 2 DISCUSSION The property owner information was originally obtained from the Orange County Tax Assessor tax rolls and cross-'referenced with information obtained from First American Title company. Below is the latest information regarding ownership of the respective parcels and comments on their intent to reimburse the City for incurred costs: TRACT 13627, LOT 26 According to a title report which was obtained from First American Title, Tract 13627, Lot 26 is owned by San Ramo, a California General Partnership. The address for San Ramo is listed as a post office box in Newport Beach, California. A notice from the City mailed to the post office box on July 6, 1995, was not returned and it can be presumed that the notice reached the offices of San Ramo. The post office box is now owned by Hester Development. Hester Development has no relationship to San Ramo. At this time, we have no other known address for San Ramo. TRACT 13908 TraCt 13908 is owned by Bramalea California, Inc. Their new address is 27432 Calle Arroyo, San Juan Capistrano, California, 92675. Staff has spoken with Ken McMicheal of Bramalea and he indicated that Bramalea is still in Chapter 11. He also indicated that he will pursue the possibility of reimbursing the City for the expenses incurred in clearing the property of weeds. He will provide an update once he has had the opportunity to discuss this option with corporate officials. 1776 NISSON ROAD (APN 432-401-12) The property owner for this property is shown on the County Assessor tax roll as Guidance Investors Limited, P.O. Box 6432, Scottsdale, Arizona, 85261. This is the same address that is listed on the Grant Deed, a copy of which was obtained from First American Title. Ail mail sent to this address is returned as "attempted not known" The Scottsdale post office records indicate that this post office box is owned by a private individual and post office officials indicate that information regarding post office box addresses owned by a private individual is not public information. William A. Huston Recovery of Costs for Abatement of Public Nuisance December 4, 1995 Page 3 LIEN PROCESS The original staff recommendation was that the City Council authorize that a lien be placed against the subject properties. The lien process is a tool commonly used to obtain reimbursement of costs from an individual by encumbering their real property in lieu of immediate payment. One drawback to the lien 'process is that it may take many ye.ars for the lien to be paid-off since they are not redeemed until there is a change in ownership. When a change in ownership occurs, all liens on the property are paid in the order in which they were encumbered. The Council expressed concern that placing a lien on a property which is in bankruptcy would not be prudent and that repayment of costs would not be likely. The City Attorney has reviewed the matter and has provided the following legal opinion: "The City may not file a lien while the property is in bankruptcy, but depending on whether the City's expense was incurred prior to, or after the bankruptcy, the City may (1) file an unsecured claim in the bankruptcy case, or (2) 'file a claim for an administrative expense. In the latter case, the City may be fully reimbursed." Staff will work with the City Attorney on filing an appropriate claim with the bankruptcy court. CONCLUSION There are several courses of action that will be pursued to obtain repayment of City incurred weed abatement costs. The City Attorney will file appropriate claims with the bankruptcy court for Tract 13908, staff, will continue to attempt to contact the owners of the other properties to recover costs, failing success, a lien will be recorded with the Orange County Recorder. / Co k J. '~van ::].e n Officer / Christine S'hingl~n Assistant City Manager ATTACHMENT 1 Property Location Work Completed Cost 1776 Nisson Road cut weeds on lot clean up and remove debris Contract Subtotal (administrative cost 15%) Total Cost $ 250.00 600.00 850.00 127.50 $ 977.50 Bramalea Tract 13908 mow weeds hand work and remove debris Contract Subtotal (administrative cost 15%) Total Cost 2,380.00 800.00 3,180.00 477.00 $3,657.00 San Ramo Tract 13627 mow weeds hand work and remove debris Contract Subtotal (administrative cost 15%) Total Cost 609.00 600.00 1,209.00 181.35 $1,390.35 CONTRACT TOTAL (administrative cost total) GRAND TOTAL $5,239.00 785.85 $6,024.85 MG: br: cc report \abt95001. rp2