HomeMy WebLinkAbout19E - RECEIVERSHIP MMDREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
SEPTEMBER 5, 2017
TITLE:
AUTHORIZATION TO FILE AND
PROSECUTE RECEIVERSHIP ACTIONS
AGAINST OWNERS OF REAL
PROPERTIES OPERATING MARIJUANA
DISPENSARIES LOCATED IN THE CITY
OF SANTA ANA
{STRATEGIC PLAN NO. 3,3)
CITY ANA ER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 1� Reading
❑ Ordinance on 2nd Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
Authorize the filing and prosecution of receivership actions against the owners of the following
properties based on nuisance conditions resulting from operating illegal marijuana dispensaries
for an amount not to exceed $200,000:
1. Herbology 35 Cap, 4728 W. 1St— Illegal Marijuana Dispensary
2. 20 Cap Collective, 1139 W. 17th — Illegal Marijuana Dispensary
3. Elevated Dreams Collective, 413 W. 17th and Sky High Holistic, 419 W. 17th — Illegal
Marijuana Dispensary
4. LCL, 2350 N. Grand Ave. and Wax on Wax-W.O.W., 2550 N. Grand Ave. — Illegal
Marijuana Dispensary
DISCUSSION
The City has used the California Health and Safety Code Receivership option to successfully
resolve difficult code enforcement matters in both commercial and residential
areas. Receivership is a legal process through which control of a piece of real property is
temporarily taken from the owners and placed with a court-appointed officer: the
Receiver. These receivership actions are used primarily for abandoned and substandard
properties where the owner has a history of non-compliance with the city's code enforcement
efforts or in emergency situations where real property presents an immediate threat to health
and safety. The illegal marijuana dispensaries create extreme health and safety
hazards. Despite previous enforcement actions the operators of these marijuana dispensaries
have refused to comply with the City's regulations and the property owners have refused to
cooperate with the City.
Attached is a PowerPoint presentation concerning the real properties listed above. The Code
Enforcement Division of the Planning and Building Agency has identified the above listed
properties as candidates for receivership actions.
19E-1
Authorization To File Receivership Actions Against Owners
Of Real Properties Operating Marijuana Dispensaries
Located In The City Of Santa Ana
September 5, 2017
Page 2
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's efforts to meet Goal #3 - Economic Development,
Objectives #3 (Promote a solution -based customer focus in all efforts to facilitate development
and investment in the community); Goal #5 — Community Health, Livability, Engagement &
Sustainability, Objective #4 (Support neighborhood vitality and livability), and Strategy E
(Implement innovative code enforcement practices and strategies including the use of
volunteers, enhanced technologies and increased collaboration with other City departments
and outside agencies to address critical livability issues citywide [e.g. overcrowding, absentee
landlords, landlord/tenant rights and responsibilities, etc.]).
FISCAL IMPACT
The City Attorney's Office has negotiated a per case fee arrangement for the marijuana
dispensary receiverships such that the City's exposure to fees will not exceed $50,000 (per
case). As funds are recovered under the receivership process, those funds will be applied to
replenish the account and utilized to continue the receivership program.
Funding is budgeted and available, for FY 2017-18 as follows:
• City Services Fund — Contractual Services (05316021-62300) - $ 57,000
• Non -Departmental —Contractual Services (01105015-62300) $ 143,000
Expenditure from the Non -Departmental account will result in a deficit if receivership monies
is not recovered in a timely manner.
APPR VED AS TO FUNDS AND ACCOUNTS:
Sonia R. Carvalho ranci o Gutierrez
City Attorney Executive Director
City Attorney's Office Finance and Management Services Agency
Candida Neal
Acting Executive Director
Planning & Building Agency
Exhibit 1: PowerPoint presentation regarding listed properties
19E-2
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