HomeMy WebLinkAboutItem 5.1 Site Conditions Dublin Meadows CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: December 9, 1991
SUBJECT: WRITTEN COMMUNICATION Regarding Site Conditions at Dublin
Meadows Project
Report by: Victor Taugher, Building Official
EXHIBITS ATTACHED: 1) Request from Heritage Commons Homeowners
Association to be on Agenda of 12/9/91
to discuss Dublin Meadows Project
2) Memo from City Attorney dated 11/18/91
3) Plot Plan
4) Memo from Steve Loweree dated 12/3/91
5) Slides will be presented at meeting
RECOMMENDATION: 1. Hear Staff Presentation on Status of
Project
V 2 . Hear Testimony from Heritage Commons
Homeowners Association
3 . Set a Hearing to Consider Abatement on
January 27, 1992 and Direct Staff to
Send Out Notices as Required
FINANCIAL STATEMENT: The estimated costs for removing the building
materials from the property is $20,920. 00.
The cost for securing all accessible openings
with plywood is $9,761. 00. An alternative to
securing the building is providing private
security service at $700. 00 per week. These
costs can be recovered as a special tax
assessment on the property or by filing a
lien on the property. However, recovery of
the costs is not an absolute certainty.
Recovery is complicated by the fact that the
Resolution Trust Corporation (RTC) has
conservatorship over the principle mortgage
holder. If the principle mortgage holder is
taken over the (RTC) the City may not be able
to recover the abatement costs from the
Federal Government.
In addition, removal of the construction
material could result in litigation regarding
the value of the material removed to the
dump.
DESCRIPTION: The Dublin Meadows project consists of 26-
multi-family buildings containing a total of 206 units located on
[CITY CLERIC
FILE 141411 o ,�.� .
ITEM NO. COPIES TO: JL Construction
Heritage Commons
Homeowners Assn.
Amador Valley Boulevard, east of Stagecoach Road. The Heritage
Commons project is west and north of the Dublin Meadows project.
The project is physically divided into three separate areas by the
Alamo Creek. The first area along Amador Valley Boulevard contains it
buildings with 86 units and a Recreation Building. These buildings
are completed and 74 units are occupied. The rear section which is
immediately south of Heritage Commons has 11 buildings with 88 units.
These buildings are nearly completed. Between these two areas are 4
buildings which will contain 32 units. Two of these buildings have
the first floor stud walls partially framed. In the other two
buildings only the foundation and concrete floor is completed. Due to
financial difficulties all work on the rear 15 buildings ceased about
March, 1991.
In June, 1991 the City through the Property Maintenance Ordinance
required the owner to remove trash, junk and debris from the property.
All material was removed from the west side of the Heritage Commons
project and the trash and debris was removed from the remainder of the
site. However, construction materials were allowed to remain. Since
June the appearance of the site has continued to deteriorate due to
vandalism. Also, the construction materials have continued to
deteriorate due to exposure to the weather and much of the material is
no longer useable. The 11 buildings on the rear portion that are
nearly completed have been damaged by vandals. Damage consists
primarily of broken windows and exterior doors. Some interior damage
has occurred. The condition of the buildings can be expected to
continue to deteriorate.
It is the opinion of the Building Official that the condition of these
buildings constitute a public nuisance and can be abated as dangerous
buildings under the provisions of Section 7 . 28. 050 Q. Dublin Municipal
Code. The nuisance would be abated by removing all construction above
the floor slab on the two buildings. All the accessible exterior
doors and windows on the 11 nearly completed buildings would be
boarded up to prevent unauthorized entry. The project would then have
to he monitored periodically to assure that the buildings remain
secure. Plywood and other wood materials on the site would be used
for this purpose. An alternative to boarding up the 11 buildings
would be to hire a security service to protect the buildings from
further vandalism.
The construction materials scattered throughout the premises would be
abated by removal from the premises using Section 1001 (k) Uniform
Housing Code relating to hazardous premises. There is some risk of
litigation over the value of the building material removed from the
property. However, the abatement contract may provide that the cost
of removal be reduced by the salvage value of the materials removed.
The abatement procedure would follow the provisions of Chapter 7 . 52
Dublin Municipal Code. This procedure requires a hearing before the
- 2 -
City Council and all parties with a record interest in the property
must be notified. Due to the noticing requirements the earliest date
for a hearing would be January 27, 1992 .
The City Council, after a public hearing, could then render an order
to abate within a specified time. If the order is not complied with
the Building Official would seek bids to perform the abatement. A
court order however must be obtained to authorize the City and its
contractors to enter the property to complete the work and remove
materials. After the abatement is completed a second hearing is held
by the City Council to confirm the costs of abatement. The costs of
abatement may be recovered by placing a special assessment on the
property which is collected in the same manner as County taxes.
The estimated costs of clean up and securing the buildings is
$30, 681. 00 plus the cost for maintaining the buildings in a secure
condition. (See Exhibit 4) The alternative costs would be $20,920. 00
for clean up and $700. 00 per week for a security service, 64 hours per
week (2 p.m. to 10 p.m. week days and 10 a.m. to 10 p.m. weekends and
holidays) . Recovery of the costs of abatement is complicated by the
fact that the property could be acquired by the Resolution Trust
Corporation (RTC) because the principle mortgage holder apparently is
in financial difficulty.
In Exhibit 2 the City Attorney discusses the problem of recovering
costs. If the primary mortgage holder is taken over by (RTC) it
appears that the City cannot recover the costs of abatement.
In November the Building Official contacted the principle mortgage
holder and one of the partners in the ownership of the property and
requested that they take steps to protect their interest in the
project by securing the buildings or providing security guard service.
Both parties indicated that there were no funds available for this
purpose.
On December 3 , 1991, the Building Official learned from the principle
mortgage holder that the (RTC) has agreed to advance funds for the
completion of the project after a Record of Modification is completed
(clearing all title problems) . Thus, if the title can be cleared it
would be possible for the project to be reactivated early in January
then abatement would not be necessary.
The options for the City are:
1. Utilize the abatement procedure to eliminate the nuisance.
2 . Institute a civil suit to abate the nuisance through the courts.
3 . Wait until construction is reactivated.
In order to provide for the contingency that construction is not
reactivated the Council should consider setting an abatement hearing.
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MEYERs, NAVE;, RUBACH
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MICHAEL A.NAVE A PROFESSIONAL LAW(,0JAFC`•A7jC;tj ?GNINSVLA CFFICC-
STEVEN A.MEYERc;
NATA'-IF:E.VIEsr GATEWAY PLAZA `C 110^1 ;)WfP0 AVE_ 27--C
ELIZABETH K SILVER 777 DAVUL-,STREET,SUITE 300 .0
MICHAEL S.818ACK SAN LEANDRO,CALIFORNIA 94577 T L:EPH0NF:(4I5)ZI48-7I3,-,
MOLLY T,TAMI TELEPHONE: (510)$51-4300 9MSIMILE:t4l'5,34,�-rjO66
MICHAEL F.ROORICILEZ FACSIMILE:(570)351-4461
KATHLEEN FALIBION MARIN OFFICE
FPEDERICK S,ETHERI-DiSE MEMORANDUM 12C.,1PANY
WENOY A.ROBERTS N.''VAT0.CA 9494�
C)XVIO W.SKINNER fELEPHONE:(4'5)89?-86-6
OF COUNSEL REPI-Y TO
ANDREA J.SALTZMAN San Leandro
TO: Vic Taugher DATE: November 18, 1991
Building official
FROM: Elizabeth H. Silver
City Attorney
RE: Recovery of Costs of Abatement
JL Construction Company/Dublin Headows.
You have asked whether the City will be able to Collect its
costs of abatement if it is necessary for the City to abate as a
public nuisance certain conditions that exist on Tract 5883 . The
abatement would be performed pursuant to the Property Maintenance
Ordinance, the Housing Code and/or the dangerous building
provisions of the Building Code.
The property is owned by a partnership entitled "Dublin
Meadows PartnerS11 of which JL Construction Company is apparently
a general partner. The dead of trust on the property is held by
Far West Savings and Lo—al, Association.
The City Clerk received copies of a Notice of Default sent by
Far West Savings and Loan Association in late June indicating that
Dublin Meadows Partners were in default in pay-ments under the deed
of trust in an amount in excess of $15 mill.-Jon. I do riot know
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yet. 1
I spoke with an attorney with the Resolution Trust Corporation
(RTC) (Pamela Johnson, 303-291-5860) and learned the following.
Far West Savings and Loan Association has been placed by the. RTC
in a conservatorship. Thee are two stages that occur when a
savings and loan association is "taken over" by the RTC. The first
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stage is a conservatorship.
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TO: Vic Taugher, Building official
FROM: Elizabeth H. Silver, City Attorney
RE: Recovery of Costs of Abatement �
JL Construction Company/Dublin Meadows P
DATE: Novembor 18 , 1991
PAGE: 2
An institution that is in a conservatorship is run like an
open institution and the RTC pays taxes and assessments in the same `
manner as a regular business. Bills must be submitted to the
Managing Agent for the conservatorship and, if appropriate, they
are apparently paid.
The second stage is a receivership which is considered to be
an instrumentality of the federal government. once a savings and
loan association is in receivership, it is immune from taxes and
assessments just like any other instrumentality of the federal :;
government unless Congress has consented to liability. Congress
has provided that receiverships will pay "ad valorem" property
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taxes for property owned by the savings and loan association but `V
the receivership will not pay any taxes which are not "ad valorem"
taxes and will not pay assessments as they come due. (Financial
Institutions Reform, Recovery, and Enforcement Act, 12 USC section
1441a. ) however, when the property is sold by the receivership, .
the lien for assessments will be paid, assuming sufficient funds
are available from the sale of the property. In some instances, .s...
the RTC has agreed to pay annual assessments as they come due,
notwithstanding the receivership's immunity from such payments, for
business reasons. These decisions are made in individual cases. ;
There is no rule with respect to how long a savings and loan
will be in a conservatorship before it is converted to a
receivership. It is thus not known how long before Far West
Savings and Loan Association will be in a receivership.
The RTC has issued a manual to every County Treasurer,
entitled "State and Local Taxation Policy Manual" which explains
the differences between conservatorships and receiverships and the
RTC's legal obligations with respect to taxes and assessments. I
am attempting to obtain a copy from the Alameda County Treasurer.
The Managing Agent for Far West Savings and Loan Association
conservatorship is John Penrose (1-800-FARWEST) : Ms. Johnson
suggested that the City contact _ him to see if an arrangement
regarding payment by the RTC can be worked out before the city
incurs the costs of abatement.
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0r3:09- ID:MEYER3 NAVE ET AL TEL 1,10:415351-44 1 #092 P0--
TO: Vic Taugher, Building official
FROM: Elizabeth H. Silver, City Attorney
RE: Recovery of Costs of Abatement
JL Construction Company/Dublin MeadowS
DATE: November 18, 1991
PAGE: 3
I hope that this information is useful to you.
very truly yours,
MEYERS, NAVE, RIBACK & WEST
1 Elizabeth H. Silver
City Attorney
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+ DUBLIN MEADOWS PROJECT
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CITY OF DUBLIN
'•ly �A -� 7 /I
MEMORANDUM '= P P,?
I991
DATE: December 3, 1991 r� �._, J `•
TO: Vic Taugher, Chief Building Official `�:':/;•,r
FROM: Steven Loweree, Maintenance Superintendent
SUBJECT: Revised Estimate for Cleanup of J.L. Construction Site
After reviewing the site with you on Monday, December 2, it is necessary to revise
the estimate first submitted to Bob White on May 9, 1991 (attached) .
Several factors contributed to the revised estimate. The previous estimate did not
include any costs for boarding up all accessible entry points on all 11 buildings.
Secondly, J.L. has done some minor cleanup (trash removal) since May 9; however, the
cost for removal of debris, etc. , has not essentially changed because the initial
estimate of 420 cubic yards to be removed is probably as good an estimate now as it
was before based on yesterday's site visit. Thirdly, the previous estimate was
based on contracted prices between the City of Dublin and MCE as it existed for
fiscal year 1990-91. Slight changes occurred in the fiscal year 1991-92 contract
between Dublin and MCE for maintenance services.
1. Cleanup of Site - This estimate includes hauling debris to the dump site,
filling holes in the parking lot, and general site cleanup.
A. Dump Trucks, Hauling & Dump Fees $ 11,730
Includes $4,600 in dump fees, three 10-yard dump
trucks, operated, for 8 hrs/day for 4 days.
B. Skip Loaders $ 5,814
Includes two skip loaders, operated, at 8 hrs/day
each for 4 days. Two will be necessary to keep dump
trucks operating efficiently.
C. Sweeper/Water Truck $ 576
Twelve hours of sweeping, as additional work, by A-1
Enterprises through contract with City of Dublin.
Less than previous estimate because some loose trash
has been removed.
D. Additional Labor $ 2,800
Two additional laborers w/pickup truck will be needed as
not all debris is accessible and some sorting of material
will need to occur.
Sub-Total Cleanup $ 20,920
Xv um
2. Boarding Up of Accessible Entry Points to Buildings on Site - Per your
request, this estimate includes the cost of boarding up 492 accessible entry
points to eleven (11) abandoned buildings.
A. Labor/Equipment $ 7,001
Includes a four-man crew at 8 hrs/day each for 5 days
to install plywood on 492 windows, doors, etc.
B. Plywood $ 2,460
Includes purchase of plywood to seal 492 openings.
These openings vary in size, so an average of one
4'x 8' sheet of plywood is used, or 492 sheets. This
estimate was prepared in the event that, for some legal
reason, the City could not use J.L. 's plywood which is
already on site and is adequate in quantity.
C. Miscellaneous Materials $ 300
Nails, etc.
Sub-Total Securing Buildings $ 9,761
The total estimate for accomplishing the previously described work is as follows:
1. Cleanup of Site $ 20,920
2. Securing Buildings 9,761
TOTAL $ 30,681
The above estimate includes prevailing wages, etc. , and is in accordance with the
contract between MCE and the City of Dublin for fiscal year 1991-92. Additionally,
as you are aware, some broad based assumptions were made with regards to the
quantity of debris to be removed, what is salvageable lumber and materials, and the
actual production of crews to clean up this site. The estimate is the best that I
can prepare with so many variables still unknown about this job site.
Please advise if you have any questions.
SL/mb
Attach.
cc: Lee Thompson, Public Works Director
a:maint\1202jlry
CITY OF DUBLIN �
MEMORANDUM
DATE: May 9, 1991
k
TO: Bob White, Sr. Building Inspector
FROM: Steve Loweree, Maintenance Superintendent
SUBJECT: Cleanup of J.L. Construction Site
After first reviewing the site on Amador Valley Blvd. with you and then with '
Lee Thompson, I have come up with an estimate of 420 cubic yards of debris and
material to be removed. This is a visual estimate and is in no way a scientific
estimate of the actual debris. But, it is probably within loo accurate.
!
A.s I understand it, the scope of work is to remove any and all debris from the
outside grounds of this project and is not limited to what can be viewed from
public property or a public street. The debris is to be hauled to the dumpsite
II on Vasco Road.
All costs are in accordance with current contracts between the City of Dublin and
NICE Corporation, and the City of Dublin and A-1 Enterprises. The costs are based ,
solely on the estimate of 420 yards of material and debris, and actual costs
would vary based on actual yardage removed. The costs are as follows: !
3
! 1) Dump Trucks, Hauling and Dump Fees- This cost includes $11,973.00
slightly over $5,000 in dump fees alone. Three 10-yard
durrp trucks would be used, 8 hrs per day for 4 days. !
2)' Loader Costs 2 loaders @ 8 hrs per day for 4 days. Two 5,640.00
needed in keeping dump trucks on road while still allowing
!
for material to be moved and piled within the site.
3) Sweeper/Water Truck - This cost includes a street sweeper 910.00
for 8 hrs and a water truck (for dust control) for 10 hrs
(2.5 hrs/day) .
4) Additional Labor - 3 additional laborers with:a pickup 4,074.00
truck will be needed as not all debris is _accessible to
loaders, and much of the debris needs to be separated
to be acceptable at a dump facility.
TOTAL ESTIMATED COST 522,597.00
Please advise if you have any questions.
r
SL/mb
i
i
cc: Lee Thompson, Public Works Director
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