07-26-2011 CC RPT 26 - Laserfiche WebLink

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City Council Memorandum TO: HONORABLE MAYOR AND CITY COUNCILDATE: July 26, 2011 FROM: CITY ATTORNEY ITEM NO: WARD: ALL SUBJECT: REIMBURSEMENT OF ATTORNEY’S FEES AND COSTS ASSOCIATED WITH THE RECEIVERSHIP ACTION AND SALE OF REAL PROPERTY LOCATED AT 4270 MT. VERNON AVENUE – SUPPLEMENTAL APPROPRIATION ISSUE: The issue presented for consideration by the City Council is whether to accept reimbursement for attorney’s fees and costs expended by the City Attorney’s Office in connection with the receivership action and sale of the real property located at 4270 Mt. Vernon Avenue. RECOMMENDATIONS: That the City Council: 1. Approve the acceptance of $5,000.00 for attorney’s fees and costs associated with the receivership action and sale of the real property in the matter of City of Riverside v. William Horspool, et al., Riverside County Superior Court Case No. RIC10011477; and 2. Increase revenues and appropriate expenditures in the amount of $5,000.00 to the Special Program Account No. 1300000-450242. BACKGROUND: In August of 2010, the Riverside County Superior Court granted the City of Riverside’s request for an order appointing a receiver pursuant to California Health and Safety Code §17980.7 with respect to the dilapidated, substandard and nuisance property located at 4270 Mt. Vernon Avenue (Ward 2) in the matter of City of Riverside v. William Horspool, et al., Riverside County Superior Court Case No. RIC 10011477. The City sought appointment of a receiver from the court only after it was unsuccessful in compelling the property owner and lender to remediate the extensive code violations through its administrative processes. The court appointed receiver was able to identify a buyer for the property and the sale was subsequently approved by the court. The buyer has agreed to rehabilitate the entire property at his own cost. The buyer’s security to guarantee completion of