RPVCCA_CC_SR_2014_07_15_05_Release_Liens_Against_North_Windport_CanyonCITY OF RA!iCHO PALOS VERDES
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
HONORABLE MAYOR & CITY COUNCIL MEMBERS
CAROLYNN PETRU, AICP, ACTING CITY MANAGER~
JULY 15, 2014
REQUEST FOR RELEASE OF LIENS AGAINST
NORTH WINDPORT CANYON PROPERTIES (ASSES-
SOR'S PARCEL NOS. 7583-022-012 & 7583-022-013)
Project Manager: Kit Fox, AICP, Senior Administrative Analys~
RECOMMENDATION
Adopt Resolution No. 2014-_, thereby agreeing to reduce the interest rate from six
percent (6%) to the LAIF rates since October 1, 1996, for the lien for $36,551.06
recorded on October 24, 1996, as Instrument No. 96-1732129; and to release the lien
for $6,450.19 recorded on October 24, 1996, as Instrument No. 96-1732130.
EXECUTIVE SUMMARY
In 1996, the City placed liens upon two (2) parcels in Windport Canyon to recoup the
City's costs for the abatement of public nuisances. The City acquired the southerly
portion of the canyon in 2010 through a tax-default sale. The owner of the northerly
portion of the canyon now desires to sell its property to a third party, but has asked for
the lien to be released. Since the City Council authorized placement of the liens, it must
take any action to forgive or reduce them.
BACKGROUND
The property that the City refers to as "Windport Canyon" consists of three (3)
Assessor's parcels: APNs 7583-022-012 and 7583-022-013 are located on the north
side of the canyon, and APN 7583-039-900 1 is located on the south side of the canyon.
The aerial photo on the following page depicts the relative locations of these parcels.
They encompass 13.63 acres on the west side of Hawthorne Boulevard, located just to
the south of Hesse Park.
1 Formerly APN 7583-039-030
5-1
MEMORANDUM: Release of North Windport Canyon Liens
July 15, 2014
Page2
In the early-to mid-1990s, the former owner of Windport Canyon made several attempts
to develop the property for single-family, multi-family and other uses. The property's
zoning is a mix of Open Space-Hazard (OH) and Residential-Single-Family, 1 Dwelling
per 5 Acres (RS-A-5). None of these proposals was ever approved by the City.
In 1996, the City obtained an abatement warrant to remove a large volume of wood
chips and other green waste that had been illegally dumped in the canyon by and/or
with the authorization of the previous property owner. Most of the material had been
dumped on the north parcel, APN 7583-022-013. The illegal dumping constituted a
public nuisance, and the Los Angeles County Fire Department advised the City that the
decomposition of the dumped green waste in the canyon posed a fire hazard to
surrounding residents. When the previous property owner failed to remove this material
from the property in a timely manner, the City was required to obtain an abatement
warrant from the Los Angeles County Superior Court, and had the material removed
from the canyon at City expense in July 1996. The City Council subsequently placed
liens totaling $43,001.25 on the two (2) parcels from which material was removed in
October 1996 (APNs 7583-022-013 and 7583-039-030). The lien on the north parcel
was $36,551.06 and the lien on the sbuth parcel was $6,450.19.2 Both liens accrued
6% annual interest.
2 It appears that, based upon the amount of material removed from each parcel, 85% of the total
lien was applied to APN 7583-022-013 and 15% of the total lien was applied to APN 7583-039-030.
5-2
MEMORANDUM: Release of North Windport Canyon Liens
July 15, 2014
Page3
In about 2000, the City understands that the two (2) north parcels were donated to
Friends of Chabad Lubavitch San Diego, Inc. (Chabad) by the previous property owner.
Since that time, Chabad has maintained the property (including annual weed
abatement) and has kept the property taxes current. In 2008, the City sought to acquire
the south parcel-which had fallen into default for the non-payment of property taxes by
the previous property owner-from Los Angeles County. The City completed the
acquisition of the south parcel (now known as APN 7583-039-900) in 2010.
Recently, Chabad sought to sell its property in Windport Canyon. However, when a
preliminary title report was prepared in June 2014, the two (2) liens appeared as
exceptions to the title of the property (see attachments). The lien recorded as
Instrument No. 96-1732130 applies to the $6,450.19 lien against the southerly portion of
the canyon (APN 7583-039-900), which is now owned by the City of Rancho Palos
Verdes. The lien recorded as Instrument No. 96-1732129 applies to the $36,551.06 lien
against the larger of the two (2) Chabad parcels in the northerly portion of the Canyon
(APN 7583-022-013). However, for some reason, the lien against what is now the City
property shows up on the title of the Chabad properties as well. Since this is
presumably an error on the part of the County Clerk/Registrar-Recorder's office, the City
should not hold Chabad responsible for repayment of this lien amount. However,
Chabad would be responsible for the repayment of the lien recorded against the north
parcel, including accrued interest. As of July 15, 2014, the estimated accrued interest
since October 1, 1996, at 6% annual interest would be $66,516.08, for a grand total due
of $103, 067 .14. Repayment of the lien and accrued interest to the City would typically
occur upon close of escrow for the sale of the property.
Upon learning of the liens against its property and the estimated amount due, Chabad
contacted City Staff and made a request that the liens be released or that the accrued
interest be waived (see attached e-mail from Rabbi Yonah Fradkin, received on June
23, 2014). Since the City Council authorized the placement of the liens on what is now
Chabad's property in 1996, it is necessary for the City Council to approve any
subsequent action to release the liens and/or reduce the amount due to the City.
DISCUSSION
As described above, both liens related to the City's 1996 nuisance abatement in
Windport Canyon appear as exceptions to the title of the Chabad properties, even
though only one of these liens involves a property that Chabad now owns (APN 7583-
022-013). Staff presumes that the appearance of the lien against the City's property
(APN 7583-039-900) on the title of the Chabad properties is the result of a recordation
error in 1996. "[here is no evidence that Chabad ever had any ownership interest in
South Windport Canyon property, which the City acquired via tax deed in 2010.3 As
3 The City acquired the 5.45-acre South Windport Canyon property (now APN 7583-039-900) in
January 2010 for $149,855.58
5-3
MEMORANDUM: Release of North Windport Canyon Liens
July 15, 2014
Page4
such, Staff believes that Chabad should not be held liable for this lien. Furthermore,
since the City now owns the South Windport Canyon property in fee, the repayment of
this lien has been effectively accomplished by the City's acquisition of the property.
Therefore, Staff requests the City Council's approval to release the lien in the amount of
$6,450.19, recorded as Instrument No. 96-1732130 on October 24, 1996.
With respect to the lien against the larger of the two (2) Chabad parcels, Staff believes
that it is clear that Chabad is responsible for satisfying this obligation to the City upon
the sale of the property. The lien states that interest accrues on the original lien amount
of $36,551.06 at a rate of six percent (6%), compounded annually beginning on October
1, 1996. As described above, Staff estimates that the accrued interest due as of the
date of this report is $66,516.08, for a total obligation of $103,067.14. Chabad has
asked for the accrued interest to be forgiven, and for the principal balance to be
reduced.
Staff has identified five (5) scenarios that the City Council may consider with respect to
the release of the lien against the Chabad properties. These are summarized in the
table below.
Scenario Description Fiscal Impact on City:
Forgive both the $36,551.06 principal
1. and the estimated $66,516.08 in accrued
Principal & Interest interest (6% annual rate) for the period <$103,067.14>
Forgiven from October 1, 1996 through July 15,
2014
Reduce the $36,551.06 principal due to
2. $33,575.00, and forgive the estimated
Principal Reduced $66,516.08 in accrued interest (6% <$69,492.14>
& Interest Forgiven annual rate) for the period from October
1, 1996 throuqh July 15, 2014
Forgive only the estimated $66,516.08 in
3. accrued interest (6% annual rate) for the <$66,516.08> Interest Forgiven period from October 1 , 1996 through
July 15, 2014
Reduce the interest owed to the
4. estimated interest of $25,468.69 that
Interest Reduced would be due based upon the LAIF rates <$41,047.39>
in effect from October 1, 1996 through
July 15, 2014
Do not forgive either the $36,551.06
5. principal or the estimated $66,516.08 in
No Action accrued interest (6% annual rate) for the $0.00
period from October 1, 1996 through
July 15, 2014
5-4
MEMORANDUM: Release of North Windport Canyon Liens
July 15, 2014
Pages
• Scenario 1 assumes that the entire lien debt on the Chabad properties would be
forgiven. Under this scenario, the City would forego estimated repayment of
$103,067.14 for the nuisance abatement and accrued interest. However, Staff
believes that forging the principal and interest in their entirety would constitute a
gift of public funds. Therefore, Staff does not recommend forgiving the lien
entirely.
• Scenario 2 assumes a partial reduction in the principal balance and forgiveness
of the accrued interest. The total cost of the City's nuisance abatement for the
entire Windport Canyon property was $43,001.25, broken down as depicted in
the table below:
Description 7583-022-013 7583-039-030 Total
(85%) (15%) (100%)
Removal of dumped material 33,575.00 5,925.00 39,500.00
LeQal fees 2,805.89 495.16 3,301.05
City Staff time 170.17 30.03 200.20
$36,551.06 $6,450.19 $43,001.25
If the City Council were to consider reducing the principal balance as requested
by Chabad, Staff would suggest possibly waiving the legal fees and/or City Staff
time, for a reduced principal balance of up to $33,575.00. However, since the
City's taxpayers did incur all of these costs for the abatement of the public
nuisance in Windport Canyon, Staff does not recommend reducing the principal
balance of the lien.
• Scenario 3 assumes that only the estimated $66,516.08 in accrued interest on
the lien would be forgiven. The principal of $36,551.06 would be repaid in full.
Staff understands that Chabad would be supportive of this scenario if the City
Council does not support any reduction in the principal due. However, Staff
believes that forging the interest in its entirety would constitute a gift of public
funds. Therefore, Staff does not recommend forgiving the interest on the lien.
• Scenario 4 assumes that the accrued interest on the lien is recalculated at the
Local Agency Investment Fund (LAIF) rates that would have been in effect from
October 1, 1996 through July 15, 2014. Staff has estimated that accrued interest
at the LAIF rates would total $25,468.69. This amount would be more reflective
of the rate of return that the City might have received from the investment of the
$36,551.06 principal amount over the same period of time. This scenario would
result in an estimated net cost to the City of $41,047.39. As discussed further
below, this is the scenario that Staff recommends.
5-5
MEMORANDUM: Release of North Windport Canyon Liens
July 15, 2014
Page 6
• Scenario 5 assumes that the provisions of the lien are enforced as originally
approved by the City Council in 1996. The City would be fully reimbursed for the
principal and estimated accrued interest totaling $103,067.14 upon close of
escrow.
There are no Municipal Code provisions dealing with the adjustment of principal and/or
interest due once a lien has been assessed upon a property. Furthermore, the six-
percent (6%) interest rate requirement is codified in Section 8.24.150 of the Municipal
Code. Nevertheless, the Municipal Code does include provisions in Section
17.78.010.B regarding the consideration of fee waivers by the City Council. These
provisions-which technically apply only to building, subdivision and zoning fees-allow
the City C~uncil to waive fees based upon the finding that:
1 . The applicant or the beneficiary of the use or activity proposed by the applicant is
a non-profit corporation registered with the State of California; or
2. The use or activity proposed or the activities of the beneficiary of the use or
activity proposed are charitable, educational or otherwise provide a substantial
benefit to the public; or
3. The applicant has demonstrated a financial hardship, as determined by the City
Council, on a case-by-case basis.
Chabad is a registered non-profit corporation in the State of California. In its request,
Chabad also implies that the sale of its Windport Canyon properties would benefit its
charitable and education programs. However, since the City is not privy to the terms of
any pending sale of the property to a third party, there has been no evidence presented
that Chabad's payment of the liens in full would constitute a financial hardship.
In summary, Staff is sympathetic to the fact that Chabad was apparently unaware of the
existence of the liens on the property that was donated to it until very recently. To the
City's knowledge, Chabad has been an excellent steward of its property in the City,
conducting regular annual weed abatement and keeping its property taxes up to date.
However, Staff also believes that the City's taxpayers are entitled to be reimbursed for
the costs incurred for the abatement of the dangerous conditions created on this
property under previous ownership; and to be reasonably compensated for the cost of
carrying this debt for nearly eighteen (18) years. Therefore, Staff recommends the
adoption of Scenario 4 as it would repay the principal costs and provide a reasonable
rate of return to the City and its taxpayers, but would forgive more than sixty percent
(60%) of the accrued interest in deference to Chabad's non-profit status; its stewardship
of the property since 2000; and the added complexity of Chabad's having acquired the
property through a donation rather than a sale, through which the existence of the liens
would presumably have come to light much sooner.
In agreeing to reduce the interest rate for the $36,551.06 lien, Staff would recommend
not specifying a total amount due to the City at this time. The foregoing discussion of
5-6
MEMORANDUM: Release of North Windport Canyon Liens
July 15, 2014
Page7
fiscal impacts are all based upon an assumption of the close of escrow for the sale of
the property on July 15, 2014, which is not (to the City's knowledge) going to happen.
Instead, Staff recommends structuring the approval of this interest rate reduction to
apply such that the accrued interest due at the new LAIF rate would be calculated at the
time of the actual close of escrow for sale of the Chabad properties. In this way, the
City Council's fiduciary duty to the City's taxpayers will be protected in the event that the
sale of the properties takes longer than is currently anticipated by either Chabad or the
City.
CONCLUSION
In conclusion, Staff recommends that the City Council adopt Resolution No. 2014-_,
thereby agreeing to reduce the interest rate from six percent (6%) to the LAIF rates
since October 1, 1996, for the lien for $36,551.06 recorded on October 24, 1996, as
Instrument No. 96-1732129; and to release the lien for $6,450.19 recorded on October
24, 1996, as Instrument No. 96-1732130.
ALTERNATIVES
In addition to the Staff recommendation (i.e., Scenario 4), the City Council may select
one of the other four (4) scenarios outlined above, or may identify another appropriate
course of action as a result of public testimony and/or City Council discussion. If
another alternative is chosen (other than Scenario 4 or Scenario 5 (No Action)), Staff
recommends continuing this matter to a future date certain for the adoption of a revised
resolution.
FISCAL IMPACT
The estimated fiscal impacts of this request under various scenarios are discussed in
the body of tonight's report. The fiscal impact of the Staff recommendation (i.e.,
Scenario 4) is estimated to be $41,047.39 as of the date of this report. However, the
actual fiscal impact will not be known until escrow closes on the sale of the Chabad
property at some time in the future.
Attachments:
• Draft Resolution 2014-
• Request for release of liens (received June 23, 2014)
• Recorded liens (Instrument Nos. 96-1732129 & 96-1732130)
M:\Finance\Release ofWindport Canyon Liens\20140715_StaffRpt_CC.docx
5-7
RESOLUTION NO. 2014-_
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO
PALOS VERDES, AGREEING TO REDUCE THE INTEREST RATE
FROM SIX PERCENT (6%) TO THE LOCAL AGENCY INVESTMENT
FUND (LAIF) RATES IN EFFECT SINCE OCTOBER 1, 1996, FOR THE
LIEN FOR $36,551.06 RECORDED ON OCTOBER 24, 1996, AS
INSTRUMENT NO. 96-1732129; AND TO RELEASE THE LIEN FOR
$6,450.19 RECORDED ON OCTOBER 24, 1996, AS INSTRUMENT
NO. 96-1732130 FOR THE PROPERTIES COMMONLY KNOWN AS
"NORTH WINDPORT CANYON" (APNs 7583-022-012 AND 7583-022-
013)
WHEREAS, in July 1996, the City of Rancho Palos Verdes undertook the
abatement of a public nuisance on property commonly known as "Windport Canyon,"
consisting then of Assessor's Parcel Nos. 7583-022-012, 7583-022-013 and 7583-039-
030, and incurring total costs for said abatement of $43,001.25; and,
WHEREAS, on October 1, 1996, the City Council of the City of Rancho Palos
Verdes adopted Resolution No. 96-87, approving the report of nuisance abatement costs
for Windport Canyon and authorizing liens for such costs to be placed upon then
Assessor's Parcel Nos. 7583-022-013 and 7583-039-030; and,
WHEREAS, on October 24, 1996, the City caused liens to be recorded against
these parcels in the amounts of $36,551.06 against Assessor's Parcel No. 7583-022-013
(Instrument No. 96-1732129) and $6,450.19 against then Assessor's Parcel No. 7583-
039-030 (Instrument No. 96-1732130); and,
WHEREAS, in about 2000, Assessor's Parcel Nos. 7583-022-012 and 7583-022-
013, commonly known as "North Windport Canyon" were donated to Friends of Chabad
Lubavitch San Diego, Inc., (Chabad) by the previous property owner, whereupon Chabad
assumed ownership and responsibility for North Windport Canyon; and,
WHEREAS, on January 21, 2010, the City received fee title to then Assessor's
Parcel No. 7583-039-030, commonly known as "South Windport Canyon," via Tax Deed
to Purchaser of Tax-Defaulted Property (Instrument No. 20100089227), thereby
effectively rendering moot the lien of $6,450.19 against South Windport Canyon
(Instrument No. 96-1732130), which Assessor's Parcel number is now 7583-039-900;
and,
WHEREAS, on June 23, 2014, upon learning of the existence of the above-
mentioned liens affecting North and South Windport Canyon, Chabad made a request of
the City for forgiveness of accrued interest and reduction in principal balance for these
liens affecting its property, which it now desires to sell.
WHEREAS, on July 15, 2014, the City Council of the City of Rancho Palos Verdes
considered Chabad's request at a regular City Council meeting.
5-8
NOW BE IT, THEREFORE, RESOLVED BY THE CITY COUNCIL OF THE CITY
OF RANCHO PALOS VERDES:
Section 1: On the basis that A) Chabad is a non-profit organization registered
in the State of California and that the proceeds of the sale of the North Wind port Canyon
properties will benefit charitable and educational purposes; B) Chabad has been an
excellent steward of its properties since 2000, conducting annual weed abatement and
keeping the property taxes current; and C) Chabad's acquisition of the properties in 2000
through a donation led to greater complexity than would a sale, through which the
existence of the liens would presumably have come to light much sooner; the City Council
agrees to reduce the interest rate for the lien for $36,551.06 recorded on October 24,
1996, as Instrument No. 96-1732129 from six percent (6%) compounded annually since
October 1, 1996, to the Local Agency Investment Fund (LAIF) rates in effect since
October 1, 1996. Said accrued interest at the LAIF rates shall be calculated and payable
to the City of Rancho Palos Verdes, along with the principal balance of $36,551.06, upon
close of escrow for the sale or transfer of either or both of the North Windport Canyon
properties.
Section 2: On the basis that it was erroneously recorded against the title of the
North Windport Canyon properties in 1996 and should not have encumbered their title,
the City Council agrees to release the lien for $6,450.19 recorded on October 24, 1996,
as Instrument No. 96-1732130, pl us any interest thereon.
Section 3: The City Manager and City Clerk are authorized to execute and
cause to be recorded the necessary instrument(s) to effectuate the City Council's
decision.
Resolution No. 2014-
Page 2 of 3
5-9
PASSED, APPROVED, AND ADOPTED THIS th DAY OF JULY 2014.
Mayor
ATTEST:
City Clerk
State of California )
County of Los Angeles )ss
City of Rancho Palos Verdes )
I, CARLA MORREALE, City Clerk of the City of Rancho Palos Verdes, hereby certify that
the above Resolution No. 2014-_ was duly and regularly passed and adopted by the
said City Council at a regular meeting thereof held on July_, 2014.
City Clerk
M:\Finance\Release of Wind port Canyon Liens\20140715_Reso_CC.docx
Resolution No. 2014-
Page 3 of 3
5-10
.Carolynn Petru
From:·
Sent:
To:
Yonah Fradkin <ryf@chabadsd.org>
Monday, June 23, 2014 1:39 PM
Carolynn Petru
Cc: Simon Malk
Subject: Re: Friends of Chabad Lubavitch San Diego, Inc -Status of Liens
Thank you for taldng the time to help our Charitable Organization Chabad this morning.
As I mentioned on the phone Chabad as been very responsible and paid for all of the abatement charges since
we acquired the property. Unfortunately, at the time that we acquired the property until now we were not aware
of this abatement fee. Yes this is our own fault, we should have looked at theTitle Report. If we would have
known we would have had the donor pay for it. Now we really need your assistance to help us see some benefit
of holding the property for over 14 years and paying Taxes and Yearly weed abatement. We would really
appreciate forgiveness of this debt. I would presume that after all these years you might be able to find some
way to help us. Please forgive the interest and see if you can reduce the $36000. Abatement fee. Chabad has
over 200 centers in California, including one in Rancho Palos Verdes, serving the entire community with
counseling,services, food programs, drug rehabilitation, educational programs and the list goes on. Kindly help
us help others. Thank you
We sincerely appreciate your kindness.
Rabbi Yonah Fradkin
Regional Director
Chabad Headquarters S. Diego
10785 Pomerado Rd.
S. Diego, CA 92131
858.547.0076 #1218
On Jun 19, 2014, at 5:36 PM, Nechama dina Carlebach wrote:
Just got this email
From: Kit Fox [mailto:KitF@rpv.com]
Sent: Thursday, June 19, 2014 5:30 PM
To: ndcarlebach@chabadsd.org
Cc: carolynn Petru; carol Lynch <clynch@rwglaw.com>
Subject: RE: Friends of Chabad Lubavitch San Diego, Inc -Status of Liens
Dear Dina:
Thank you for your phone call this past Monday, and for providing a copy of the preliminary title report
for the Friends of Cha bad Lubavitch San Diego (Cha bad) properties in Rancho Palos Verdes.
1
5-11
The property that the City refers to as "Wind port Canyon" consists of three (3) Assessor's parcels: the
Cha bad properties (APNs 7583-022-012 and 7583-022-013) are located on the north side of the canyon,
and the property formerly owned by Steven Taylor/Taylor Development Ltd. (formerly APN 7583-039-
030) is located on the south side of the canyon. The attached aerial photo shows the relative locations
of these parcels.
In 1996, the City obtained an abatement warrant to remove a large volume of wood chips and other
green waste that had been illegally dumped in the canyon by and/or with the authorization of the
previous property owner. Most of the material had been dumped on the north parcel, APN 7583-022-
013. The illegal dumping constituted a public nuisance, and the Los Angeles County Fire Department
advised the City that the decomposition of the dumped green waste in the canyon posed a fire hazard to
surrounding residents. When the previous property owner failed to remove this material from the
property in a timely manner, the City was required to obtain an abatement warrant from the Los
Angeles County Superior Court and had the material removed from the canyon at City expense in July
1996. The City Council subsequently placed liens totaling $43,001.25 on the two (2) parcels from which
material was removed in October 1996 (APNs 7583-022-013 and 7583-039-030). The lien on the north
parcel was $36,551.06 and the lien on the south parcel was $6,450.19.
We understand that the two (2) north parcels were donated to Cha bad by the previous property owner
in about 2000. In 2008, the City sought to acquire the south parcel-which had fallen into default for
the non-payment of property taxes-from Los Angeles County. The City completed the acquisition of
the south parcel (now known as APN 7583-039-900) in 2010.
As you know, there are two (2) liens that appear as exceptions to the title of the Cha bad properties. The
lien recorded as Instrument No. 96-1732130 actually applies to the $6,450.19 lien against the south
parcel, which is now owned by the City of Rancho Palos Verdes. Since Cha bad does not own the south
parcel, it would not be responsible for repayment of this lien amount. However, Cha bad would be
responsible for the repayment of the lien recorded against the north parcel as Instrument No. 96-
1732129 in the amount of $36,551.06 plus interest. As of October 2013, the estimated accrued interest
for seventeen (17) years at 6% was $61,872.54. Repayment of the lien and accrued interest to the City
would typically occur upon close of escrow for the sale of the property.
The City appreciates that Cha bad may have been unaware of this lien at the time that it accepted the
donation of the property from the previous owner. The existence of this lien in no way impugns the
responsible stewardship of the property by Cha bad over the past several years. However, the City was
required to expend City resources to abate the nuisance condition on the property, which posed a
serious risk to public safety. The City is legally entitled to recover the cost to the taxpayers of the
abatement of the former public nuisance on the property. However, the City is also open to discussing
with Cha bad a reasonable settlement of this matter, subject to the review and approval of the Rancho
Palos Verdes City Council.
Please feel free to contact me if you have any further questions. I will be back in the office next
Monday, June 23rd.
Sincerely,
Kit Fox, AICP
Senior Administrative Analyst
City Ma11a$er's 0££ice
City of Rancho Palos Verdes
2
5-12
30940 Iiawthome Blvd.
Rancho Palos Verdes, CA 90275
T: (310) 544-5226
F: (310) 544-5291
'E.: kit£@rpv.com
<image001.jpg>
From: Nechama dina Carlebach [mailto:ndcarlebach@chabadsd.orgl
Sent: Monday, June 16, 2014 3:00 PM
To: Kit Fox
Subject: Friends of Chabad Lubavitch San Diego, Inc
Dear Kit,
Thank you for assisting us with the donated property that we are now selling.
This title report shows that there are two liens on the property from 1996 which were unbeknownst to
us until now.
We are a non-profit charitable social service organization.
I hope you can help us find a way to take care of this.
Much appreciated.
Nechama Dina Carlebach
Chabad Educational Center
10785 Pomerado Road
S Diego, CA 92131
(858) 547-0076 x 1219
From: Watt, Melissa [mailto:Melissa.Watt@ctt.com]
Sent: Friday, June 13, 2014 2:12 PM
To: ndcarlebach@chabadsd.org
Subject: FW: 00025000-996-U12 Prelim
Nechama, please find attached the preliminary report of title for the vacant land sale. Please advise if
you have any information regarding the two abatement liens as I will need to order demands and pay
through escrow.
Take care!!
Melissa Watt
Escrow Officer
<Windport Canyon Parcels.pdf>
3
5-13
. . .'(
RECORDING REQUESTED BY AND
WHEN RECORDED, RETURN TO:
City of Rancho Palos Verdes
Department of Planning,
Building & Code Enforcement
30940 Hawthorne Boulevard
Rancho Palos Verdes, California
NO FEE PURSUANT TO GOVERNMENT
CODE SECTION 27383
ORIGINAL
9fl 1732129
90275
RECORDED/FILED IN OFFICIAL RECORDS
RECORDER'S OFFICE
LOS ANGELES COUNTY
CALIFORNIA --
4:01 PM OCT 24 1996
SPACE ABOVE THIS LINE FOR RECORDER'S USE
NOTICE OF LIEN -Assessor's Parcel No. 7583-022-0L FREE J ]
Pursuant to the authority vested in the Code
Enforcement Official by the provisions of Title 8, Chapter 8.24
of the Rancho Palos Verdes Municipal Code, the Code Enforcement
Official on or about the 24th day of July, 1996, caused the
.abatement of a nuisance on real property, and the City Council of
the City of Rancho Palos Verdes, on the 1st day of October, 1996,
assessed the costs of such abatement upon said real property;
through the adopt!?n of Resolution No. 96-87, a copy of which is
attached hereto as Exhibit "A" and incorporated herein by
reference. The same has not been paid nor any part thereof, and
the City of Rancho.Palos Verdes does hereby claim a lien on said
real property for the net expense of the doing of said abatement
in the amount of $36,551.06, and this amount shall be a lien upon
said real property until the aforementioned sum together with
interest at the rate of six (6%) per annum from October 1, 1996,
has been paid in full and discharged of record.
The real property hereinbefore mentioned, and upon
which a lien is claimed, is that certain parcel of land in the
City of Rancho Palos Verdes, county of Los Angeles, state of
California, and more particularly described as Assessor's Parcel
No. 7583-022-013:
NOTICE IS HEREBY GIVEN that the aforementioned nuisance
abatement was undertaken on adjacent parcels, and that a similar
lien in the amount of $6,450.19 is claimed and recorded against
Assessor's Parcel No. 7583-039-030, and that the cumulative
amount due for the two parcels is $43,001.25.
DATED: this 2ER'b day of ~Ele. , 19~.
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
~cl
FINANCE DIRECTOR OF THE
CITY OF RANCHO PALOS VERDES
(ACKNOWLEDGEMENT)
SS
On /0-0, '3-9ez before me, the undersigned, a
Notary ~n )P~ fz..::!:_ state, personally appeared
......... ~~~~~~~~~-.-~--...,.-....-..,.--' known to me to be the person
whose name was _subp~rlbed to the within instrument and ~-
acknowledged that ~ executed the same.
Signature
9611121 ll617~1 pjD 1201587 0
(/
5-14
.
. f
RESOLUTION NO. 96-87
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES CONFIRMING THE REPORT OF
NUISANCE ABATEMENT COSTS WITHIN "WINDPORT
CANYON" AND AUTHORIZING A LIEN FOR NUISANCE
ABATEMENT COSTS TO BE PLACED ON THE SUBJECT
PROPERTY WHICH CONSISTS OF ASSESSORS PARCELS
7583-022-013, AND 7583"039-030
WHEREAS, in response to a citizen's complaint, City Staff inspected the property
commonly referred to as Windport Canyon on or about October 5, 1995, and repeatedly
thereafter; and, ·
WHEREAS, Staff found that wood chips and debris had been illegally dumped and
spread throughout much of the site, specifically on two separate parcels which comprise
the majority of Windport Canyon, which have been identified as Assessor's Parcels 7583-
022-013 and 7583-039-030, in violation of the Rancho Palos Verdes Municipal Code and
the Los Angeles County Fire Code; and,
WHEREAS, Staff made repeated unsuccessful attempts to gain compliance through
contact of the property owner of record; and,
WHEREAS, the City of Rancho Palos Verdes and the Los Angeles County Fire
Department determined the wood chips and debris to be a public nuisance as a matter of
law as it posed a threat to the public health, safety and welfare to the property and
adjacent properties, City Staff oirected the City Attorney to obtain a Nuisance Abatement
Warrant to secure removal of the wood chips and debris; and,
WHEREAS, California Government Code Section 38773 and 38773.5 and Chapter
8.24 of the Rancho Palos Verdes Municipal Code authorizes the City Council to assess
all costs incurred for abatement of violations which constitute a public nuisance as a lien
against said property; and
WHEREAS, the costs incurred during abatement of the violation of the above
referenced site, to include pursuit and legal action have been itemized by the Finance
Director and Code Enforcement Officer pursuant to Rancho Palos Verdes Municipal Code
Section 8.24.110, a copy of which itemization is attached hereto as Attachment "A"; and,
WHEREAS, after notice issued pursuant to the requirements of the Rancho Palos
Verdes Municipal Code, the City Council held a hearing on September 17, 1996, at which
time all interested parties were given an opportunity to be heara and present evidence.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
96~1732129 (
\ 'l.
5-15
Section 1: The City Council finds that the costs incurred by the City to abate the
nuisance at the above referenced site are reasonable and correct, and hereby confirms
the Code Enforcement Officer's Itemized Account of Nuisance Abatement Costs, attached
hereto as Attachment A.
Section 2: The City Council hereby directs Staff to submit to the Los Angeles
County Auditor/Controller for collection in the next applicable tax roll year the confirmed
Nuisance Abatement costs in the amounts of $36,551.06 for Assessor's Parcel umber
7583-022-013, and $6,450.19 for Assessor's Parcel Number 7583-039-030. The City
Council further directs the City Attorney and the Finance Director to prepare and cause to
be recorded in the Office of the Los Angeles County Recorder appropriate notices of liens
which indicate the amount of Nuisance Abatement Costs assessed against the subject
property as well as the cumulative amount due for the two parcels.
Section 3: Interested parties are hereby notified that the time within which judicial
review of this decision must be sought, if available, is governed by Section 1094.6 of the
California Code of Civil Procedure.
PASSED, APPROVED AND ADOPTED on this 1st day of October, 1996.
ATTEST:
/SI JO PURCELL
City Clerk
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF RANCHO PALOS VERDES
/S/ MARILYN LYON
)
)ss
)
Mayor
I Jo Purcell, City Clerk of the City of Rancho Palos Verdes, do hereby certify that the
above Resolution No. 96-87 was duly and regularly passed and adopted by the said City
Council at a regular meeting held on October 1, 1996.
N:\GROUP'Pl..ANNING\WINDRES.WPD
.. •.• ...
. • .... .!: .. ·.
(J
Resolution No. 96-a 7
Page 2 of 2
' '·
5-16
:
......
..
Attachment A
ITEMIZED ACCOUNT
NUISANCE ABATEMENT COSTS
AUGUST 20, 1996
RECORD OWNER: • Gemini Bancorp
2042 Armacost Avenue
Los Angeles, CA. 90025
ASSESSORS PARCEL NUMBERS: 7583-022-013
PROPERTY CONDITION:
SCOPE OF WORK:
Description
Removal of Wood Chips
tegal Fees
Staff Time
Total Costs Incurred
7583-039-030
Vacant property's maintained wood chips and
debris in violation of the Rancho Palos Verdes
Municipal Code and the Los Angeles County
Fire Code.
Contract with a qualified company for the
removal, cartage and disposal of
approximately 2400 cubic yards of wood chips
and other organic debris.
Cost Summary
Date Incurred
July 24, 1996
July 1996
August 1996
July 1996
August1996
$
$
$
$
39,500.00
3,301.05
200.20
43,001.25
RESO! .• NO. 96-87
EXHBIT A. paqP. l
96"-1732129
·Y
5-17
The above costs were incurred by the City of Rancho Palos Verdes in abatement of a IA
nuisance on Assessor's Parcels 7583-022-013, 7583-039-030. /
a"J
C\l .....
C\J
~
/S/ Dennis McLean
Finance Director,
Dennis Mclean
City of Rancho Palos Verdes
..-4 Attachments J, Cost Attachment A
~
"·.,
, . . j .. ' ,,
,.\ ..
... . ; )• .'
"·''
/S/ Jon A. Pollard
Code Enforcement Officer,
Jon A. Pollard
City of Rancho Palos Verdes
Resol. No. 96-87
Exhibit A paqe 2
5-18
'• .
Cost Attachment A
A. Costs and legal fees associated with the pursuit of $ 3,301.05
Nuisance Abatement. Costs represent disbursements and
legal fees.
B. Costs associated with abatement of nuisance on $ 39,500.00
property. Abatement conducted by Hardy & Harper, Inc.
Address 630 S. Hathaway, Santa Ana, CA. 92705
Invoice Attached.
C. Costs for Staff time for abatement of nuisance. Cost $ 200.20
includes: Abatement/Inspections 13 Staff hours
Total Cost to be assessed: $ 43,001.25
96-1732129
Resolution No. 96-87
Exhbit A page 3
'~
5-19
...
ORIGINAL
RECORDING REQUESTED BY AND
WHEN RECORDED, RETURN TO:
City of Rancho Palos Verdes
Department of Planning,
Building & Code Enforcement
30940 Hawthorne Boulevard
RECORDED/FILED IN OFFICIAL RECORDS
RECORDER'S OFFICE
Rancho Palos Verdes, California 90275
LOS ANGELES COUNTY __
CALIFORNIA
NO FEE PURSUANT TO GOVERNMENT
CODE SECTION 27383
4:01 PM OCT 24 1996
SPACE ABOVE THIS LINE FOR RECORDER'S USE
1 FREE
NOTICE OF LIEN -Assessor's Parcel No. 7583-039-030
Pursuant to the authority vested in the Code
Enforcement Official by the provisions of Title 8, Chapter 8.24
of the Rancho Palos Verdes Municipal Code, the Code Enforcement
Official on or about the 24th day of July, 1996, caused the
·abatement of a nuisance on real property, and the City Council of
the City of Rancho Palos Verdes, on the 1st day of October, 1996,
assessed the costs of such abatement upon said real property;
through the adoption of Resolution No. 96-87, a copy of which is
attached hereto as Exhibit "A" and incorporated herein by
reference. The same has not been paid nor any part thereof, and
the City of Rancho Palos Verdes does hereby claim a lien on said
real property for the net expense of the doing of said abatement
in the amount of $6,450.19, and this amount shall be a lien upon
said real property until the aforementioned sum together with
interest at the rate of six (6%) per annum from October 1, 1996,
has been pajd in full and discharged of record.
The real property hereinbefore mentioned, and upon
which a lien is claimed, is that certain parcel of land in the
City of Rancho Palos Verdes, County of Los Angeles, state of
California, and more particularly described as Assessor's Parcel
No. 7583-039-030:
NOTICE IS HEREBY GIVEN that the aforementioned nuisance
abatement was undertaken on adjacent parcels, and that a similar
lien in the amount of $36,551.06 is claimed and recorded against
Assessor's Parcel No. 7583-022-013, and that the cumulative
amount due for the two parcels is $43,001.25.
DATED: this~ day of ~ , 1!fb.
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
!JtfeA~
FINANCE DIRECTOR OF THE
CITY OF RANCHO PALOS VERDES
(ACKNOWLEDGEMENT)
SS
Witness my official seal.
Signature ~
961021 ll6876-0000I pjo 1201589 0
J J
5-20
• I } .f •
... ~· ..
RESOLUTION NO. 96-87
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES CONFIRMING THE REPORT OF
NUISANCE ABATEMENT COSTS WITHIN "WINDPORT
CANYON" AND AUTHORIZING A LIEN FOR NUISANCE
ABATEMENT COSTS TO BE PLACED ON THE SUBJECT
PROPERTY WHICH CONSISTS OF ASSESSORS PARCELS
7583-022-013, AND 7583-039-030
WHEREAS, in response to a citizen's complaint, City Staff inspected the property
commonly referred to as Windport Canyon on or about October 5, 1995, and repeatedly
thereafter; and,
WHEREAS, Staff found that wood chips and debris had been illegally dumped and
spread throughout much of the site, specifically on two separate parcels which comprise
the majority of Windport Canyon, which have been identified as Assessor's Parcels 7583-
022-013 and 7583-039-030, in violation of the Rancho Palos Verdes Municipal Code and
the Los Angeles County Fire Code; and,
WHEREAS, Staff made repeated unsuccessful attempts to gain compliance through
contact of the property owner of record; and,
WHEREAS, the City of Rancho Palos Verdes and the Los Angeles County Fire
Department determined the wood chips and debris to be a public nuisance as a matter of
law as it posed a threat to the public health, safety and welfare to the property and
adjacent properties,· City Staff directed the City Attorney to obtain a Nuisance Abatement
Warrant to secure removal of the wood chips and debris; and,
WHEREAS, California Government Code Section 38773 and 38773.5 and Chapter
8.24 of the Rancho Palos Verdes Municipal Code authorizes the City Council to assess
1 ..•. all costs incurred for abatement of violations which constitute a public nuisance as a lien
against said property; and
,·I' . ..,~·
WHEREAS, the costs incurred during abatement of the violation of the above
referenced site, to include pursuit and legal action have been itemized by the Finance
Director and Code Enforcement Officer pursuant to Rancho Palos Verdes Municipal Code
Section 8.24.110, a copy of which itemization is attached hereto as Attachment "A"; and,
WHEREAS, after notice issued pursuant to the requirements of the Rancho Palos
Verdes Municipal Code, the City Council held a hearing on September 17, 1996, at which
time all interested parties were given an opportunity to be heara and present evidence.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
96-1732130
7/
I
J
5-21
t • ~. I
Section 1: The City Council finds that the costs incurred by the City to abate the J
nuisance at the above referenced site are reasonable and correct, and hereby confirms
the Code Enforcement Officer's Itemized Account of Nuisance Al:Jatement Costs, attached
hereto as Attachment A.
Section 2: The City Council hereby directs Staff to submit to the Los Angeles
County Auditor/Controller for collection in the next applicable tax roll year the confirmed
Nuisance Abatement costs in the amounts of $36,551.06 for Assessor's Parcel umber
7583-022-013, and $6,450.19 for Assessor's Parcel Number 7583-039-030. The City
Council further directs the City Attorney and the Finance Director to prepare and cause to
be recorded in the Office of the Los Angeles County Recorder appropriate notices of liens
which indicate the amount of Nuisance Abatement Costs assessed against the subject
property as well as the cumulative amount due for the two parcels.
Section 3: Interested parties are hereby notified that the time within which judicial
review of this decision must be sought, if available, is governed by Section 1094.6 of the
California Code of Civil Procedure.
PASSED, APPROVED AND ADOPTED on this 1st day of October, 1996.
ATTEST:
/SI JO PURCELL
City Clerk
/$/
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES )ss
CITY OF RANCHO PALOS VERDES )
MARILYN LYON
Mayor
I Jo Purcell, City Clerk of the City of Rancho Palos Verdes, do hereby certify that the
above Resolution No. 96-87 was duly and regularly passed and adopted by the said City
Council at a regular meeting held on October 1, 1996.
N:\GROUPIPLANNINGIWINDRES.WPD
.... ·
:! ~~ .•. • ~; Resolution No. 96-a 7
Page 2 of 2
5-22
' '
.... · .. ·. ............
·'·
.. "
...
RECORD OWNER:
Attachment A
ITEMIZED ACCOUNT
NUISANCE ABATEMENT COSTS
AUGUST 20, 1996
Gemini Bancorp
2042 Armacost Avenue
Los Angeles, CA. 90025
ASSESSORS PARCEL NUMBERS: 7583-022-013
7583-039-030
PROPERTY CONDITION:
SCOPE OF WORK:
Description
Removal of Wood Chips
Legal Fees
Staff Time
Total Costs Incurred
Vacant property's maintained wood chips and
debris in violation of the Rancho Palos Verdes
Municipal Code and the Los Angeles County
Fire Code.
Contract with a qualified company for the
removal, cartage and disposal of
approximately 2400 cubic yards of wood chips
and other organic debris.
Cost Summary
Date Incurred
July 24, 1996
July 1996
August1996
July 1996
August1996
96-1732130
$
$
$
$
Cost ....-
39,500.00
3,301.05
200.20
43,001.25
RESO! •• NO. 96-87
EXHB:!:T A pag~ 1
.....
·,.
5-23
The above costs were incurred by the City of Rancho Palos Verdes in abatement of a
nuisance on Assessor's Parcels 7583-022-013, 7583-039-030.
/SI Dennis McLean
Finance Director,
Dennis Mclean
City of Rancho Palos Verdes
Attachments
Cost Attachment A
/SI Jon A. Pollard
Code Enforcement Officer,
Jon A. Pollard
City of Rancho Palos Verdes
~ ~-. ' . ':~~ •.· ...
I~
Resol. No. 96-87
Exhibit A paqe 2
5-24
. ' ' .·
j
Cost Attachment A
A. Costs and legal fees associated with the pursuit of $ 3,301.05
Nuisance Abatement. Costs represent disbursements and
legal fees.
8. Costs associated with abatement of nuisance on $ 39,500.00
property. Abatement conducted by Hardy & Harper, Inc.
Address 630 S. Hathaway, Santa Ana, CA. 92705
Invoice Attached.
C. Costs for Staff time for abatement of nuisance. Cost $ 200.20
includes: Abatement/Inspections 13 Staff hours
Total Cost to be assessed: $ 43,001.25
96~1732130
Resolution No. 96-87
Exhbi t A pa.qe 3
f
5-25