To: Board of Supervisors
From: Planning and Building Department
Agenda Section: Consent
Vote Requirement: Majority
SUBJECT:
title
Authorization of Payment to Serviam by Wright for Receivership-Related Expenses to Address Health and Safety Violations related to Code Enforcement Case 12CEU-79 on Assessor Parcel Number 312-151-008-000, Including Issuance of a $250,000 Purchase Order Upon Appointment (1100269101)
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RECOMMENDATION(S):
Recommendation
1. Approve issuance of a $250,000 purchase order, to be paid as a single advance payment upon the court’s appointment of Serviam by Wright as the receiver, to fund nuisance-abatement activities authorized by the court; and
2. Authorize the Planning and Building Department - Code Enforcement Unit to coordinate directly with the appointed receiver, process invoices against the purchase order, and undertake all administrative actions necessary to support court-ordered abatement.
Body
STRATEGIC PLAN:
This action supports the following areas of your Board’s Strategic Plan.
Area of Focus: Safe & Healthy Communities
Strategic Plan Category: 1001 -Support and sustain partnerships between public safety and partner agencies to enhance public safety in our communities
DISCUSSION:
The Board is being asked to approve use of abatement funds in the amount of $250,000 to allow a court-appointed receiver to remediate the property. If the property is sold in the receivership action, the sale of the subject property is not expected to generate sufficient funds to cover the cost of the clean up so the prospective receiver has requested that county deposit funds directly upon court appointment (should that occur) to cover the costs of the receivership work. This requires Board approval because the amount of the payment exceeds the limit on a single transaction allowed by County Code.
On or about Jan. 10, 2013, the Code Enforcement Unit (CEU) received a referral regarding conditions at 264 Maple Creek Road, Korbel, California (Assessor Parcel Number 312-151-008). The referral alleged violations of Humboldt County Code Section 354-1 due to junk vehicles and accumulated debris on the property. There has been significant CEU interaction with the property and property owners, as well as subsequent complaints since that time. CEU inspections over the years confirmed multiple inoperable vehicles, habitation in mobile homes or trailers, solid-waste accumulation, inadequate sewage/sewer system, maintenance of a junkyard, and other conditions posing ongoing health, safety, and environmental concerns.
Over the following years, CEU conducted repeated enforcement actions to obtain voluntary compliance, including site inspections, notices of violation, and opportunities for corrective action. In spite of these efforts, the violations remained uncorrected, and the property conditions continued to deteriorate. Given the scale and complexity of the cleanup-and the lack of progress through traditional enforcement-staff determined that a receivership under Health and Safety Code section 17980.7 was the appropriate next step.
Because few receivership firms are capable and willing to manage cases of this magnitude, particularly where there is low to no recoverable land value, county staff conducted targeted outreach. Staff held a meeting with the California Receivership Group, a reputable and experienced firm; however, they declined to participate due to the size of the project and the absence of financial return. Staff then consulted with Serviam by Wright, who reviewed the case and they confirmed their willingness to serve as receiver, provided that a funding source is available upfront to support abatement activities. The receivership appointment is subject to court approval and at the discretion of the court.
Based on these consultations, staff is requesting issuance of a $250,000 purchase order to Serviam by Wright, funded by the Code Enforcement Abatement Fund. This purchase order would be issued as a single advance payment upon the court’s appointment of Serviam by Wright as receiver for the property, enabling timely mobilization and uninterrupted progress while maintaining appropriate fiscal oversight and Board authorization.
SOURCE OF FUNDING:
General Fund Allocation to the Nuisance Abatement Budget (1100269101)
FINANCIAL IMPACT:
|
Expenditures (Fund, Budget Unit) |
FY26-27 |
FY27-28 Projected* |
FY28-29 Projected* |
|
Budgeted Expenses |
250,000 |
0 |
0 |
|
Additional Appropriation Requested |
0 |
0 |
0 |
|
Total Expenditures |
250,000 |
0 |
0 |
*Projected amounts are estimates and are subject to change.
|
Funding Sources (Fund, Budget Unit) |
FY26-27 |
FY27-28 Projected* |
FY28-29 Projected* |
|
General Fund |
250,000 |
|
|
|
State/Federal Funds |
|
|
|
|
Fees/Other |
|
|
|
|
Use of Fund Balance |
|
|
|
|
Contingencies |
|
|
|
|
Total Funding Sources |
250,000.00 |
|
|
*Projected amounts are estimates and are subject to change.
Narrative Explanation of Financial Impact:
Funding in the amount of $250,000 will be issued through a purchase order from the Code Enforcement Abatement Fund and disbursed as a single advance payment upon Serviam by Wright’s appointment as receiver. This funding will support court-authorized nuisance-abatement work, including cleanup, remediation, and potential demolition.
Costs may be recoverable through liens or special assessments placed on the property pursuant to Health and Safety Code authority; however, full cost recovery is unlikely due to the limited value of the property.
Expenditures associated with this request have been budgeted in the Code Enforcement Budget (1100-269-001) for Fiscal Year 2026-27. Revenue for this action is available through the General Fund allocation to the Nuisance Abatement budget unit.
OTHER AGENCY INVOLVEMENT:
Division of Environmental Health
ALTERNATIVES TO STAFF RECOMMENDATIONS:
1. Take no action.
The Board may choose not to issue the purchase order. This alternative is not recommended, as it would preclude use of a receivership as a remedy in this situation, and significantly delay abatement of significant health and safety violations and allow the nuisance conditions to persist, posing ongoing risks to the community.
2. Direct staff to pursue alternative corrective measures.
The Board may instruct staff to explore other enforcement tools; however, these methods have already been exhausted and have not resulted in compliance. Without receivership authority under Health and Safety Code section 17980.7(c), staff lacks the ability to lawfully enter and correct the violations. The cost of a county abatement would be higher than the $250,000.
ATTACHMENTS:
PREVIOUS ACTION/REFERRAL:
Meeting of: N/A
File No.: N/A