HomeMy WebLinkAbout15 Claim Mimi AshAgenda Item # 15
ACTION
To: Board of Directors
From: Kim Harris
Date: July 15, 2015
Subject: Reject the Claim from Mimi Ash
1. WHY THIS MATTER IS BEFORE THE BOARD
The board must take action on this claim against the District.
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 5, 2015, a letter was written by Mimi Ash with documentation regarding her
succession to Shire Investments LLC.
Subsequently, an email was received on May 13, 2015 from Barbara Brenner,
attorney for Ms. Ash, requesting the return of the "deposit money as soon as
practical."
Neil Kaufman, District Water Engineer, communicated in a return email, that "the
deposit would not be refunded until the Phase 2 water distribution system is
completed and unconditionally accepted by the District."
Ms. Brenner responded to this email that Ms. Ash and the District "have entered into a
new development agreement that applies to Pinyon Creek 2 and that agreement only
requires an $8,000 deposit for the construction costs set out in the agreement."
The District does not have a signed development agreement with Ms. Ash.
A letter was sent by Mr. Kaufman on May 14, 2015 that outlines the District's position
that there are a few issues that require further clarification, prior to signing the
development agreement.
The condition 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, Ms. Ash, has been notified, via the District's public Board Agenda for
July 15, 2015 meeting, of the District's recommended rejection of the claim to return
the $39,000 deposition due to the lack of a new development agreement with Ms. Ash
and that the water infrastructure has not been 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 Ms. Ash 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