HomeMy WebLinkAbout14 Claim Mark SteinerAgenda Item # 14
ACTION
To: Board of Directors
From: Kim Harris
Date: July 15, 2015
Subject: Reject the Claim from Mark Steiner
1. WHY THIS MATTER IS BEFORE THE BOARD
The Board must take action on this claim.
2. HISTORY
In 2004, the District entered into an "On -Site Water Development Agreement" with
Shire Investments, LLC (Developer) to construct water infrastructure for the Pinyon
Creek Townhomes, located on Hwy 267.
The project was originally planned for one phase of construction. At the request of the
Developer (Mark Steiner), the project was split into two phases. Phase I was
completed in 2006, but the required "looped" section of the water main was to be
completed in Phase 2.
As part of the agreement, to ensure the completion of the agreed upon project, the
District collected a $39,000 "construction guarantee" deposit from the Developer to
ensure the agreed upon "Looped Water System" was constructed at the site.
In 2009, the property was foreclosed upon, prior to the water system being completed.
In October 2014, the District received an Application for Construction from Ms. Mimi
Ash for the development of the Pinyon Creek property, including the water system
infrastructure.
Placer County records show that the property was sold November 12, 2014 to The
Metro Group.
On April 14, 2015, the District sent a letter to Ms. Mimi Ash, The Metro Group, Inc.,
with the understanding that she is the owner of the Pinyon Creek Phase II. The letter
further stated that Ms. Ash would "be entitled to receive any refund of the financial
guarantee in accordance with the terms of the Agreement and Letter" and requested
her to provide any documentation to support this position. A copy of the letter was
sent to Mark Steiner, Pinyon Creek LLC, which is designated in the Agreement as the
recipient of any notices under the Agreement.
3. NEW INFORMATION
On May 21, 2015, a claim letter was sent to the District via First Class Mail by Klaus J.
Kolb, attorney for Mark Steiner, requesting return of the $39,000 deposit to his client.
The conditions of the Agreement, the completion of the water infrastructure for the
Pinyon Creek project has not been completed. The deposited funds are to be used
toward the construction of this pipeline.
In order for the water main to be completed, the District has two options: (1) to
complete the original Phase II connection or (2) add a new section to the Phase I
pipeline.
The claimant, Mr. Steiner, has been noed, via the public Board Agenda for the July
151 2015 meeting, of the of the District's recommended rejection of this claim to return
the $39,000 deposit due to the conditions of the Agreement not being completed.
4. FISCAL IMPACT
As this is a customer deposit, there is no fiscal impact to the District.
5. RECOMMENDATION
The recommendation is to deny the claim from Mr. Steiner to return the $39,000
deposit and direct staff to send a Notice of Rejection of Claim within 10 days.
Kim Harris
Human Resource Manager
Michael D. Holley
General Manager