City of Desert Hot Springs
ACTION MINUTES
City Council Special Meeting
4:00 PM - Tuesday, August 23, 2022
Council Chambers
CLOSED SESSION - 4:00 P.M.
CALL TO ORDER
Mayor Matas called the Closed Session to order at 4:00 P.M.
ROLL CALL
Present:
Council Members: Roger Nuñez, Jan Pye
Mayor Pro Tem: Gary Gardner
Mayor: Scott Matas
Absent:
Council Member: Russell Betts
PUBLIC COMMENTS
None.
Jennifer Mizrahi, City Attorney, announced the Closed Session items.
CLOSED SESSION:
1. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Pursuant to Government Code Section 54956.8:
Property: APNs 661-20-9014, 661-30-2027, 661-31-3007, 661-32-1037 Agency Negotiator: Luke Rainey, City Manager
Jennifer Mizrahi, City Attorney
Negotiating Parties: County of Riverside and the City of Desert Hot Springs Under Negotiation: Price and Terms
2. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
Name of Case: City of Desert Hot Springs v. Yeh Dynasty Entertainment, LLC et seq; Superior Court- Riverside; Case No. CVPS2104940
City Council
August 23, 2022
OPEN SESSION - 4:30 P.M.
CALL TO ORDER
Mayor Matas called the Open Session to order at 4:30 PM.
ROLL CALL
Present:
Council Members: Roger Nuñez, Jan Pye
Mayor Pro Tem: Gary Gardner
Mayor: Scott Matas
Absent:
Council Member: Russell Betts
PLEDGE OF ALLEGIANCE
Council Member Nuñez led the Pledge of Allegiance.
CITY ATTORNEY REPORT ON CLOSED SESSION
Jennifer Mizrahi, City Attorney, advised that there was no reportable action.
PUBLIC COMMENTS
None.
ADMINISTRATIVE CALENDAR:
3. Resolution to Purchase the Rancho Del Oro Landscape Maintenance District Tax-Default Parcels
Staff Report - SR-22-198 - Pdf
Recommendation:
Adopt a Resolution of the City Council: 1) declaring its objections to the public sale of parcels 661-29-2014, 661-30-2027, 661-31-3007, 661-32-1037; and 2) declaring its intent to purchase parcels 661-29-2014, 661-30-2027, 661-31- 3007, 661-32-1037 for the price determined with Section 3793.1 of the California Revenue and Taxation Code and the Riverside County Office of the TreasureTax Collector policy number 98-1, in the amount of $14,091.97.
Council Member Nuñez recused from the discussion regarding APN 661-321- 037 due to a potential conflict of interest.
Nicholas Haecker, Public Works Director, presented the staff report.
City Council
August 23, 2022
ACTION: Approve Staff recommendation for APNs: 661-209-014; 661-302- 027; and 661-313-007 and adopt Resolution No. 2022-040.
Moved by Mayor Pro Tem Gardner
Seconded by Council Member Nuñez
Carried 4-0 by the following votes:
AYES: Nuñez, Pye, Gardner, and Matas
ABSENT: Betts
ACTION: Approve Staff recommendation for APN 661-321-037 and adopt Resolution No. 2022-040.
Moved by Mayor Pro Tem Gardner
Seconded by Council Member Pye
Carried 3-0 by the following votes:
AYES: Pye, Gardner, and Matas
ABSENT: Betts
RECUSE: Nuñez
ADJOURN
Mayor Matas adjourned the meeting at 4:37 P.M.
Jerryl Soriano, CMC, City Clerk
SR-22-198
City of Desert Hot Springs
City Council
AGENDA ITEM REPORT
To: City Council
Date: August 23, 2022
Department: Public Works
Prepared by: Nicholas Haecker, Public Works Director
Subject: Resolution to Purchase the Rancho Del Oro Landscape Maintenance District Tax-Default Parcels
RECOMMENDATION:
Adopt a Resolution of the City Council: 1) declaring its objections to the public sale of parcels 661-29- 2014, 661-30-2027, 661-31-3007, 661-32-1037; and 2) declaring its intent to purchase parcels 661-29- 2014, 661-30-2027, 661-31-3007, 661-32-1037 for the price determined with Section 3793.1 of the California Revenue and Taxation Code and the Riverside County Office of the Treasure-Tax Collector policy number 98-1, in the amount of $14,091.97.
BACKGROUND:
On January 21, 2020 the property owners within the Rancho Del Oro development voted in support of Annexation No. 18, Zone 19 (Rancho Del Oro) Landscaping and Lighting Maintenance District No. 2.
When the vote of support passed, parcel numbers 661-29-2014, 661-30-2027, 661-31-3007, 661-32- 1037, were tax-defaulted properties and were not available for acquisition. These parcels are the perimeter lots of the Rancho Del Oro development. These parcels are part of the Rancho Del Oro Landscaping and Lighting Maintenance District No. 2.
DISCUSSION:
On August 16, 2022, Staff received notification from the County of Riverside Treasurer – Tax Collector that the four parcels that make up the Rancho Del Oro LMD are available for purchase. In order for the City to purchase the parcels, County of Riverside Treasurer – Tax Collector requires the resolution to include: 1) City Council stating that the City objects to the public sale of the four parcels; and 2) City Council stating the offer to purchase the properties.
The Resolution is required to be submitted to the Riverside Treasurer – Tax Collector before September 1, 2022. Properties scheduled to be sold at public auction will not be removed from the public auction tax sale unless the Resolution has been received by September 1, 2022.
FISCAL IMPACT:
Funding for the purchase of parcel numbers: 661-29-2014, 661-30-2027, 661-31-3007, and 661-30- 2027 will be through the Rancho Del Oro Landscape Maintenance District funding number 520-4266- 4347.
SR-22-198
ATTACHMENTS:
Exhibit 1 - Rancho Del Oro Parcel Map
Exhibit 2 - Resolution- Purchase Lots for Rancho Del Oro Exhibit 2A - County of Riverside Treasurer Tax Collector Notice
RESOLUTION NO. ___
A RESOLUTION OF THE CITY COUNCILOF THE CITY OF DESERT
HOT SPRINGS, CALIFORNIA, 1) OBJECTING TO PUBLIC SALE OF THE PROPERTIES LISTED IN THIS RESOLUTION AND 2) OFFERING
TO PURCHASE THE PROPERTIES LISTED IN THIS RESOLUTION VIA A CHAPTER 8 AGREEMENT TO PURCHASE TAX-DEFAULTED
PROPERTY
WHEREAS, the City of Desert Hot Springs (“City”) is a charter city; and WHEREAS, on August 16, 2022, the City received a letter from the County of Riverside Treasurer- Tax Collector stating that certain properties within the Rancho del Oro development are up for tax sale; and
WHEREAS, a copy of the letter is attached hereto as Exhibit A (“Letter”); and WHEREAS, those properties are as follows:
(”Subject Properties”); and
WHEREAS, the City can and desires to purchase the Subject Properties via a Chapter 8 Agreement to purchase tax-defaulted properties for the minimum purchase prices, as in the previous recital; and
WHEREAS, in accordance with the Letter, the City desires to object to the public sale of the Subject Properties; and
WHEREAS, further in accordance with the Letter, the City desires to offer to purchase the Subject Properties, which offer includes the purchase price of each parcel, their legal descriptions, APN’s and the specific public purpose for each parcel; and WHEREAS, further in accordance with the Letter, the City desires that the costs of giving notice shall be paid by the City of Desert Hot Springs, a municipal corporation; and
WHEREAS, the City Council deems that this Resolution is in the best interest of the City’s public health, safety and welfare.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DESERT HOT SPRINGS DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. Recitals.
That the Recitals set forth above are true and correct and are hereby incorporated herein by this reference.
Section 2. The City Council resolves that following.
a. That on August 16, 2022, the City received a letter from the County of Riverside Treasurer- Tax Collector stating that certain properties within the Rancho del Oro development are up for tax sale. Those properties are as follows:
b. That the City desires to purchase the Subject Properties via a Chapter 8 Agreement to purchase tax-defaulted properties for the minimum purchase prices as in this Resolution.
c. That the City desires to object to the public sale of the Subject Properties. d. That the City offers to purchase the Subject Properties as follows:
APN Legal Description Public Purpose Price
661209014 For parkway
landscaping and
beautification
$2,896.10
661302027 For parkway
landscaping and
beautification
$8,155.85
661313007 For parkway
landscaping and
beautification
$3,040.02
661321037 For parkway Redeemed
landscaping and
beautification
TOTAL =
$14,091.97
e. That the City shall pay for the costs of giving notice. f. That the City Manager is hereby designated and directed to negotiate and execute any and all documents to consummate the purchase of the Subject Properties.
Section 3. Certification.
That the Clerk shall certify to the passage and adoption of this resolution, enter the same in the book of original resolutions of the City and make a minute of passage and adoption thereof in the records of the proceedings of the City Council in the minutes of the meeting at which the same is passed and adopted.
Section 4. Severability.
That if any provision, section, paragraph, sentence, or word of this Resolution be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences, or words of this Resolution as hereby adopted shall remain in full force and effect.
Section 5. Repeal of Conflicting Provisions.
That all the provisions heretofore adopted by the City Council that are in conflict with the provisions of this Resolution are hereby repealed.
Section 6. Effective Date.
That this Resolution shall take effect upon its adoption. [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting held on the day of August 2022 by the following vote:
AYES:
NAYS:
ABSENT:
ABSTAINING:
ATTEST: APPROVED:
_________________________________ _____________________ City Clerk Scott Matas, Mayor
APPROVED AS TO FORM:
_________________________________
Jennifer A. Mizrahi, City Attorney
MATTHEW JENNINGS
County ofRiverside Treasurer - Tax Collector
Melissa Johnson
Assistant Tax Collector
Giovane Pizano
Assistant Treasurer
August 16, 2022
City of Desert Hot Springs
Attn: Nicholas Haecker
11999 Palm Drive
Desert Hot Springs, CA 92240
Re: Tax Defaulted Properties
Dear Mr. Haecker:
We are in receipt of your inquiry regarding acquiring tax—defaultedproperty.
The below referenced taxedefaulted parcels may be acquired by City of Desert Hot Springs, a municipal Corporation under a Chapter 8 Agreement to Purchase Tax-Defaulted Property for the minimum purchase price as follows:
PIN Purchase Price
661292014 $2,896.10
661302027 $8,155.85
661313007 $3,040.02
661321037 REDEEMED
Total $14,091.97
These purchase prices were determined in keeping with Section 3793 1 of the California Revenue and Taxation Code and the Riverside County Office of the Treasurer-Tax Collector policy number 98-1 . You may also purchase these parcels through the Chapter 7 Auction.
Property taxes may be applied to parcels that are outside of City of Desert Hot Springs, a municipal Corporation purchasing boundaries. Please verify with your legal council that these parcels are within your purchasing boundaries.
In order for City of Desert Hot Springs, a municipal Corporation to enter into an Agreement to Purchase these parcels, we would need a Resolution from your City Council stating that the City obiectsto the public sale of the above listed parce|(s). The Resolution should show an offer to purchase the properties, including the purchase prices, legal descriptions, Assessor's 9 digit parcel numbers, and the specific public purpose forwhich each parcel is to be devoted. Itshould also include a statement thatthe costs of giving notice shall be paid by City of Desert Hot Springs, a municipal Corporation. in addition to the Resolution, the State now requires a separate Mission Statement to be submitted as part of the Agreement. This must be on official letterhead.
Notice of the Agreement to Purchase Tax—Defau|ted Property must be given. Pursuant to Section 3799 of the California Revenue and Taxation Code, the Tax Collector shall make reasonable efforts to ascertain the identity and address of parties of interest.
Notifications of the pending sale to the parties of interest must be sent by registered mail and/or certified mail. Also, in compliance with the California Revenue and Taxation Code 3800, the cost of giving notice shall be paid by City of Desert Hot Springs, a municipal Corporation.
Notice of the Agreement to Purchase Tax-Defaulted Property willalso be published in The Desertsun newspaperin accordance with Section 3798 of the California Revenue and Taxation Code. Should the Agreement to Purchase be nullified after the first publication, the City of Desert Hot Springs, a municipal Corporation would still be responsible forthe publication costs incurred.
We would appreciate receiving the Resolution to purchase these properties from your City Council by September 1 ,2022 to ensure that we have time to review the Resolution for any changes required and to pull the property from the tax sale, ifneeded. It would be advisable to contact our office and confirm that the Resolution has been received. Properties scheduled to be sold at public auction will not be removed from the public auction tax sale unless yourResolution has been received in ouroflice no later than September 1, 2022.
Once the Resolution has been received by our office, an Agreement to Purchase Tax-Defaulted Property willbe prepared and sent to you for signing. Once you have signed and returned the Agreement to us, we will obtain authorization from our Board of Supervisors and from the State Controller. Upon authorization by the State Controller's Office, we will proceed by setting the effective date of the Agreement, ordering title reports, preparing the certified mailing to all parties of interest and the 3 week published notification in the newspaper. Once these steps have been completed and ifthe property has not been redeemed or removed for legal reasons, correspondence will be sent to you requesting that payment be sent within 14 days ofthe effective date of the Agreement, Should payment not be received within the time allowed the Agreement would be void. 4080 Lemon Street, 4'“ Floor ‘k P.(). Box 12005 vzRiverside, CA 92502 WW W,CUlIlll) |'rcti.s\iicr.oI‘g 1- (951) 955-3900 ‘I: 11877) 748vZ689 it FAX (951) 955-3923 Page 12 of 13 City of Desert Hot Springs
Page Two
August 16, 2022
if your City Council decides against offering to purchase any of the above listed parcel(s), we would appreciate a letter stating that fact in order to close our file on the matter. Should you elect not to purchase through a Chapter 8 Agreement, the law does not restrict you from bidding on the property at public auction.
Ifyou have any further questions regarding this matter. please feel free to contact me.
Sincerely,
Paola Vertiz
Tax Sale Operations
951-955-3264
4080 Lemon Street, 47" Floor t P.O. Box 12005 i: Riverside, CA 92502 WWW.C0un\yTreasurer.org 1- (951)955-3900 * l(877) 748-2689 1- FAX (95|} 955-3923 Page 13 of 13