HomeMy WebLinkAboutClaim No. 684 - Frontier Bank FSB doing business as El Paseo Bankruna�.r_
CITY OF PALM DESERT
CITY CLERK DEPARTMENT
STAFF REPORT
REQUEST: CLAIM AGAINST THE CITY (#684) BY FRONTIER BANK FSB d.b.a.
EL PASEO BANK IN AN UNSPECIFIED AMOUNT
SUBMITTED BY: Rachelle Klassen, City Clerk
DATE: October 13, 2011
CONTENTS: • Staff Report
• Recommendations of Claims Adjusters and Staff
• Claim No. 684
Recommendation
By Minute Motion, reject the Claim and direct the City Clerk to so notify the
Claimant.
Background
Based on a review of the subject Claim and the recommendation of the Claims Adjuster,
Risk Manager, City Attorney, and staff, it is recommended that the Claim be rejected.
Discussion of this item should be held in Closed Session pursuant to Government Code
Section 54956.9(b), potential litigation.
Submitted by: AProvea'_.,
R chelle D. Klassen, C r n M. Wohlmuth
City Clerk �'� ity Manager
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Attachments (as noted) 'ITY COI.JNCILACTION
APPROVED Z'
_._. DENIM
RECEIVED 0141ER.
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VERIFIED BY: �_C ra
Original on File with City Clerk's Office
C' ;L?1 �::' i�-'T, CA
2811 SEP 22 AM 10: 37
September 20, 2011
TO: The City of Palm Desert
ATITNfION: Rachelle D.Klassen, City Clerk
RE: Claim Frontier Bank FSB dba El Paseo Bank vs. The City of
Palm Desert
Claimant Frontier Bank FSB dba El Paseo Bank
D/Event 7/25/2011
Rec'd Y/Office 9/19/2011
Our File S-1596815-PMQ
We have received and reviewed the above claim and request that you take the action indicated below:
CLAIM REJECTION: Send a standard rejection letter to the claimant.
If the claimant is represented send the notice to
the attorney of record.
Please provide us with a copy of the notice sent, as requested above. If you have any questions please
contact the undersigned.
Very truly yours,
CA REN & CO ANY
Ric iar. . Marque
cc: CJPIA w/enc.
Attn.: Executive Director
CARL WARREN & CO.
CLAIMS MANAGEMENT CLAIMS ADJUSTERS COPY T J "
7711 I'Lfccnti,f \ccnuc, Placentia, CA 92870-6832
Alail: I'.O. Nuy25180 -Santo Aim, Ca 92799-5190 � Cif� (.; l%
Phnnc(714) 572-5200 • (800) 572-6900 • Fav (714) 961-8131 DAIT
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Klassen, Rachelle
From: David Erwin [David. Erwin@bbklaw.com]
Sent: Tuesday, September 20, 2011 9:03 AM
To: Klassen, Rachelle; publicentityclaims@carlwarren.com
Cc: Rosenblum, Gary
Subject: RE: Claim Against City by Frontier Bank/El Paseo Bank (City Claim No. 684)
I would put on next consent calendar to deny
Dave
From: rklassen(a)cityofpalmdesert.orq jmaiIto: rklassen0cityofpaImdesert.orgl
Sent: Monday, September 19, 2011 3:34 PM
To: publicentityclaims(abcarlwarren.com
Cc: David Erwin; grosenblum(a)cityofpalmdesert.org
Subject: Claim Against City by Frontier Bank/El Paseo Bank (City Claim No. 684)
A copy of the subject Claim is attached for your appropriate action. Please let me know if there is any further assistance
my office may provide.
RacReeee n, Keassem, eMe
City Clerk, City of Palm Desert
73510 Fred Waring Drive
Palm Desert, CA 92260-2578
(760) 346-0611, Ext. 304
Fax: (760) 340-0574
e-mail: rklassenC@cityofoalmdesert.ort?
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CITY OF PALM DESERT
BUILDING & SAFETY DEPARTMENT
INTEROFFICE MEMORANDUM
To: Rachelle D. Klassen, CIVIC, City Clerk
From: Russell A. Grance, Director of Building and Safety
Date: September 21, 2011
Subject: 75-130 St. Charles Place, Claim NO. 684
It is the recommendation of the Department of Building and Safety to reject the claim
against the City of Palm Desert. A "Notice of Pendency" was filed with Riverside County
Assessor on August 15, 2011 against the above subject property for work performed
without proper permits and approvals. The Department of Building and Safety and the
Code Compliance Division had been working with Mr. Charles Biehl (former owner) to
gain compliance since 2008. The City had granted several extensions for compliance
with the condition that the unit in question not be occupied or used. When the City
became aware that Mr. Biehl allowed the property to go back to the bank the City filed a
Notice of Pendency in order to cloud the property and any potential new owner would
have knowledge of the current code violations. This is standard practice for work
performed without permits on both residential and commercial properties when
compliance cannot be gained.
CITY OF PALM DESERT
DEPARTMENT OF COMMUNITY DEVELOPMENT
INTEROFFICE MEMORANDUM
To: John Wohlmuth, City Manager
From: Pedro Rodriguez, Senior Code Enforcement Officer PP,
Date: September 23, 2011
Subject: 75-130 SL Charles Place, Claim NO.684
On November 3, 2008, the City received a complaint for 'work performed without
permits and approvals' at 75-130 St, Charles Place. Prior to the property going into
foreclosure, the Code Compliance Division and the Department of Building and Safety
were actively working with the previous owner, Mr. Charles Biehl, to gain compliance for
the non -permitted work. The Department of Building and Safety provided due process to
Mr. Biehl by granting several extensions to have plans drawn and submitted for plan
check since the area in question remained vacant and unoccupied.
On July 22, 2011, the Code Compliance Division started a property maintenance case
on the subject property due to deteriorating landscaping in that Is visible from the public
street. Letters were mailed to Mr. Biehl and El Paseo Bank requesting full restoration of
the landscaping areas and removal of the signs for the vacated business. On August 2,
2011, Tom Ross of TKR construction contacted the City requesting a meeting on the
property to discuss the violations outlined in the letter. On August 4, 2011, Code
Compliance, Building and Safety, the Fire Marshal, Mr. Ross and Cindi Sutt, Vice
President of Ei Paseo Bank met on the property. An Interior inspection of the property
was conducted. Attached are reports from the Department of Building and Safety and
the Fire Marshal. At no time during the meeting was the cost of the abatement
discussed by any member of staff as It has been alleged (approximately $200,000) in
the claim.
The Code Compliance Division recommends that the claim filed against the City of Palm
Desert be rejected. The Department of Building and Safety filed a "[notice of Pendency"
with the Riverside County Assessor on August 15, 2011 against the aforementioned
property for the existing building code violations.
Attachments:
Department of Building and Safety report
Fire Marshal's report
Copies of letters mailed to property owner, pictures of the non -permitted construction
Cc: City Clerk
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1J= CITYOF PALM I OESU "
ASSIGNED CI-AIN1 NO.
MIR / OILIER / DRAW
ATTORNEYS (K� LAW IIP ,
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September 13, 2011 rn,,r'.�
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John M. Wohlmuth
City Manager - City Hall
73-510 Fred Waring Drive .cep-
Palm Desert, CA 92260
Re: Claim for Damages of Frontier Bank FSB dba El Pasco Bank
pursuant to Municipal Code 3.14, et seq.
Dear Mr. Wohlmuth:
Please accept this letter as the Notice of Claim for damages of Frontier Bank FSB
dba El Paseo Bank against the City of Palm Desert. This Notice of Claim is being
delivered to you pursuant to Palm Desert Municipal Code section 3.14.041 and California
Government Code section 910, et seq.
As noted above, the claimant bringing this Notice of Claim ("Notice" or "Claim)
is Frontier Bank FSB dba El Paseo Bank ("EPB" or "Claimant"). Claimant's postal
address and address for service of notices is 40101 Monterey Avenue, Building H,
Rancho Mirage, California 92270.
This claim arises out of a letter, dated August 29, 2011, in which Code
Compliance Officer, Shawn Kilpatrick, requests that EPB take certain actions to bring
certain real property, described more fully below, into code compliance. The basis for
the August 29 letter is as follows:
On or about July 25, 2011, the City of Palm Desert ("the City") issued to EPB an
Order to Abate Public Nuisance demanding that EPB remove a sign and clear vegetation
on real property identified as County Assessor's Parcel Number "632-050-012" with a
legal description of "Parcel 2 of Parcel Map No. 23506" and known as "75-130 Saint
Charles Place, Palm Desert, California 9221 L" EPB hired a contractor to remedy the
issues identified by the City in its Order to Abate. The contractor met with a code
compliance officer sometime after the July 25 Order and prior to an inspection of the
property on August 3, 2011.
At the meeting with the code compliance officer, prior to the August 3 inspection,
the contractor, Tom Ross of TKR Construction, learned of a Notice of Pendency of
Action/Proceedings stating, "Abatement proceedings have been instituted and are
presently pending against the real property described in the notice herein and its
structure." The subject real property is the same real property identified above. At the
meeting, Mr. Ross was told that an inspection of the subject property would take place on
August 3, 2011.
41-750 Rancho Las Palmas Drive, B U I L D 1 N G H
Rancho Mirage, CA 22270
PHONE: 7BO-B37-0333
FAX 760-837-0330
www.mowllp.com
John M. Wohlmuth
City Manager
Septembe'r 13, 2011
Page 2
Am
0111 H / HEN H / WHITIA10
ATTORNEYS LIP LAW tj
At the August 3, 2011 inspection, Mr. Ross was present for the Claimant, along
with Cindi Sutt, a vice president of EPB. Present for the City was Pedro Rodriguez,
Senior Code Enforcement Officer, Shawn Kilpatrick, Code Compliance Officer, Jason
Finley, Building Inspector 1, and Neil Stephenson, Fire Safety Specialist. EPB learned at
the August 3 inspection that the City was well aware of problems with the building in
dealing with the property's previous owner, Charles Biehl and the Biehl Family Trust.
EPB was informed that the City was aware of unpermitted improvements performed by
Mr. BiehI and also of complaints by Mr. Biehl's employees of unsafe working conditions
including improper ventilation at the building. The City had performed earlier on -site
visits. but, according to Mr. Rodriguez, no action was taken previously because it way too
costly (approximately $200,000) for the City to pursue at the time.
On August 15, 2011, the City filed a Notice of Pendency of Action/Proceedings
("Notice of Action"). The date of the notarial acknowledgment of the Notice of Action is
stated as, "'March 10, 2011." Based upon the date of the notary acknowledgment, it is
clear that the City had been prepared to act upon the unpermitted improvements at least
five months earlier. It should be noted that at the time the City had originally learned of
the unpermitted improvements, the property was under the ownership of the Biehl Family
Trust. It was not Until sometime later that EPB repossessed the property Lhrough
f01`eCI0SL1:'e and took the property into its REO inventory. The dilatory tactics of the City
will cost 'EPB in excess of $200,000, the amount estimated to remediate the unpermitted
imp"overnents as delineated in the August 29, 2011 report of the City.
Based upon the foregoing, EPB believes it has a claim for damages against the
City of Palm Desert for an amount exceeding $25,000 and should be granted the right to
bring suit against the City in the Superior Court of California in the County of Riverside.
I look forward to your response and appreciate your attention to this matter.
Very truly yours,
f.
ent R. Whittaker
MUELLER/OLIVIER/WHITTAKER LLP
V RW/sm
cc: David J. Erwin, Esq. City Attorney
El Paseo Bank
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