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HomeMy WebLinkAboutMINUTES - 09242013 - C.04RECOMMENDATION(S): AUTHORIZE the County Counsel’s Office to initiate litigation to secure funds for completion of improvements for Subdivision 04-08920 in the El Sobrante area, as recommended by the Public Works Director; and AUTHORIZE the Public Works Director to arrange for completion of the subdivision improvements and to use the secured funds for that purpose or to reimburse the cost of completing the subdivision improvements. FISCAL IMPACT: Costs will be covered by developer bond proceeds. BACKGROUND: On October 2, 2007, the Board approved a Subdivision Agreement with KPR APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 09/24/2013 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Candace Andersen, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: J. LaRocque (925) 313-2315 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: September 24, 2013 David Twa, County Administrator and Clerk of the Board of Supervisors By: Stacey M. Boyd, Deputy cc: C. 4 To:Board of Supervisors From:Julia R. Bueren, Public Works Director/Chief Engineer Date:September 24, 2013 Contra Costa County Subject:Approve Litigation to Secure Funds for Completion of Improvements; Authorize to Arrange for Completion of Improvements for Subdivision 04-08920 BACKGROUND: (CONT'D) Balmore Manor, LLC for the installation of improvements for Subdivision 04-08920 in the El Sobrante area. The subdivider did not complete the subdivision improvements and subsequently lost the subdivision through foreclosure. Following the foreclosure, the new property owner (1486 Investors, LLC) expressed an interest in completing the subdivision improvements and offered to cover the cost of the County taking legal action against the original subdivider and its bonding company (Insurance Company of the West) for the purpose of obtaining funds to complete the subdivision improvements. It is anticipated that the new property owner will soon enter into a Subdivision Agreement and a written agreement with the County to guarantee completion of the subdivision improvements, to provide outside legal counsel to represent the County in the litigation against the original subdivider and its bonding company, and to cover all costs of the litigation. In the meantime, it is necessary that a complaint be filed promptly to protect the County’s time to file suit. If the litigation is successful, the funds obtained from the original subdivider and its bonding company would made available for installation of the subdivision improvements or for reimbursing the new property owner for the costs of installing the subdivision improvements. Whether the litigation is successful or not, the new property owner would cover all costs of the litigation. The Public Works Director recommends that the Board authorize: (1) the County Counsel’s Office to initiate litigation against the original subdivider, its bonding company, and any other responsible parties to secure funds for completing the subdivision improvements; and (2) the Public Works Director to arrange for completion of the subdivision improvements and to use the secured funds for that purpose or to reimburse the cost of completing the subdivision improvements. CONSEQUENCE OF NEGATIVE ACTION: The time for filing litigation against the original subdivider and its bonding company would likely expire and the County would be unable to obtain funds for completing the subdivision improvements. CHILDREN'S IMPACT STATEMENT: None.