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HomeMy WebLinkAbout19F - RECEIVERSHIP REAL PROPREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: SEPTEMBER 5, 2017 TITLE: AUTHORIZATION TO FILE AND PROSECUTE RECEIVERSHIP ACTIONS AGAINST OWNERS OF REAL PROPERTIES LOCATED IN THE CITY OF SANTA ANA {STRATEGIC PLAN NO. 3, 3} / RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1B1 Reading ❑ Ordinance on 2"d Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the filing and prosecution of receivership actions against the owners of the following properties based on nuisance conditions resulting from health and safety violations of the City's Municipal Code for an amount not to exceed $90,000: 1. 533 E. Washington — General Code Enforcement 2. 1020 S. Hickory — General Code Enforcement 3. 3604 W. Hazard — General Code Enforcement 4. 1244 S. Parton — General Code Enforcement 5. 1029 W. 2nd — General Code Enforcement DISCUSSION The City has successfully resolved several difficult code enforcement matters by using the California Health and Safety Code Receivership process. California Health and Safety Code section 17980.7 allows a city to seek the appointment of a receiver over a substandard property that has been previously cited for violations which pose health and safety risks. The powers granted to a receiver are broad, the receiver may: (1) take full and complete control of the property; (2) manage the property and pay expenses of the operation of the property; (3) secure a cost estimate and construction plan from a licensed contractor for the repairs necessary to correct the substandard conditions; (4) enter into contracts and employ a licensed contractor as necessary to correct substandard conditions; (5) borrow funds to pay for repairs necessary to correct substandard conditions; and (6) secure debt, with Court approval, with a recorded first lien on the property, first in priority to all other liens. (Ibid., Code Civ. Proc. § 568.) The use of the receivership option is a dramatic, immediate and comprehensive process that eliminates slum conditions or habitually substandard properties at no expense to the referring agency when it is the prevailing property. This process also communicates to the public that the City is actively protecting resident and tenants from dangerous conditions created by absentee and recalcitrant property owners '19F-1 Authorization To File And Prosecute Receivership Actions Against Owners Of Real Properties Located In The City Of Santa Ana September 5, 2017 Page 2 In previous actions, the City has obtained full Code compliance and has fully recovered both staff and attorney expenses. The City Council previously allocated $100,000 to code enforcement and receiver actions. The Code Enforcement Division of the Planning and Building Agency has identified the above listed properties as candidates for receivership actions based on the severity of violations or length of non-compliance. Attached is a PowerPoint presentation with pictures of the real properties listed above. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #3 - Economic Development, Objectives #3 (Promote a solution -based customer focus in all efforts to facilitate development and investment in the community); Goal #5 — Community Health, Livability, Engagement & Sustainability, Objective #4 (Support neighborhood vitality and livability), and Strategy E (Implement innovative code enforcement practices and strategies including the use of volunteers, enhanced technologies and increased collaboration with other City departments and outside agencies to address critical livability issues citywide [e.g. overcrowding, absentee landlords, landlord/tenant rights and responsibilities, etc.]). FISCAL IMPACT The City Attorney's Office has negotiated a per case fee arrangement for the receiverships such that the City's exposure to fees will not exceed $18,000 (per case). As funds are recovered under the receivership process, those funds will be applied to replenish the account and utilized to continue the receivership program. Funding is budgeted and available, for FY 2017-18 in the City Services Fund — Contractual Services (05316021-62300) - $ 43,000 and CDBG Fund — Contractual Services (13518783- 62300) - $ 47,000 (use of funds may be applied in CDBG eligible areas only). Sonia R. Carvalho City Attorney City Attorney's Office Candida Neal Acting Executive Director Planning & Building Agency APPROV D AS TO FUNDS AND ACCOUNTS: A Francisc utierrez Executive Director Finance and Management Services Agency Exhibit 1: PowerPoint presentation regarding listed properties 19F-2 4S to W W C.) W J Q W LL W H Z W 2 W Q m Q O N W m W H am W N i Q� LLI Z Lu LL 0 - LL L- NO U Q O N N Z O F- E E Z 0 U LL 0 I--• Z W W F - Q N N OM W-000 0') O o +� O ca t d 0 0 y N �f6 a..NaNvc O' C Q IL) O O i O UAa�0 OrL.C> o� � Q d i a) a a OUN m rca 0. 'CL a bA ca 0. N O:. N.. 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On June 1, 2017, the City issued Request for Proposal ("RFP") No. 17-067, by which it sought proposals from qualified firms for landscape maintenance services in Districts 1 and 4. B. This RFP process was initiated after the prior contractor's services were terminated due to non-performance. A new contractor would be selected to handle services for the remainder of the term. C. Contractor submitted a responsive proposal that was selected by the City. Contractor represents that it is able and willing to provide such services regarding District 1 to the City described in the scope of work that is attached to this Agreement and identified as Exhibit A. D. In undertaking the perfonnance of this Agreement, Contractor represents that it is knowledgeable in its field and that any services performed by Contractor under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional firm in the field. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows: 1. SCOPE OF SERVICES Contractor shall perform landscape maintenance services for District 1, as set forth in Exhibit A, and incorporated by reference to this Agreement. Contractor's proposal is also incorporated by reference as though fully set forth herein. 2. COMPENSATION a. City agrees to pay, and Contractor agrees to accept as total payment for its services, the rates and charges identified in Exhibit B and incorporated by reference to this Agreement. The total amount to be expended for services during the term of this Agreement, including any extension exercised under Section 3, shall not exceed $938,580. Page l of 1 I 19F-21 19F-22