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Resolution No. 7181x 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 s FI RESOLUTION NO. 7181 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON MAKING FINDINGS IN SUPPORT OF THE DENIAL OF AN APPEAL CONCERNING A NONCONFORMING BUILDING AT 2111 EAST 51ST STREET WHEREAS, on June 23, 1998, at an adjourned regular meeting of the City Council of the City of Vernon, the City Council heard an appeal by Maple Dinettes, owner of the property at 2111 East 51st Street, from a determination by the Director of Community Services and Water that a nonconforming building on said property had been vacant for more than one year and therefore cannot be legally occupied without being brought into conformity with all of the regulations of the zone in which the property is located, as provided by Section 26.4.6-7 of the Vernon City Code; and WHEREAS, the appeal hearing was closed during said meeting and the decision on said appeal was deferred to the regular City Council meeting of July 7, 1998; and WHEREAS, the City Council has considered testimony presented on behalf of the property owner at the appeal hearing, documentation offered by the attorney for the property owner, a Staff Report submitted by the Director of Community Services and Water prior to the appeal hearing, arguments presented by the attorney for the property owner, a Staff Report submitted by the Director of Community Services and Water dated June 30, 1998, a letter from the City Attorney dated July 7, 1998, and a transcript of the appeal hearing held on June 23, 1998 (erroneously dated June 28, 1998); and i ,r , E s L , 1 i . i 1 WHEREAS, the evidence presented to the Council in this 2 matter supports the following findings of fact: 3 1. On July 31, 1997, an occupancy inspection was 4 conducted in connection with a proposed lease of the property to a 5 company called Rooster Brand Products. The inspection report 6 prepared by Wenceslao ("Pepe") Reynoso, a City Building Inspector, 7 called for a report from a structural or civil engineer with 8 respect to deformities in the building's masonry block walls. 9 (Staff Report, page 1, 1 2). 10 2. Over two months passed before a report was 11 submitted. In a letter dated October 21, 1997, B. J. Moore of 12 Delphey/Gerdes Engineering, Inc. indicated that an extensively 13 cracked wall should be rebuilt to support the roof joists. In 14 another letter dated October 24, 1997, Mr. Moore addressed the 15 question of "having occupants within the structure at 2111 E. 51st 16 Street" during reconstruction of the wall. Mr. Moore declined to 17 say positively that the building could be occupied during 18 construction. 19 3. In a letter dated November 25, 1997, Mr. Wilson 20 informed Maple Dinettes, the property owner, of the consequences 21 of the building being allowed to remain vacant for a year. The 22 letter quoted the relevant section of the zoning ordinance -- 23 section 26.4.6-7 -- which states that "a non -conforming building 24 or portion of a non -conforming building which is vacant for a 25 continuous period of at least one year (1) shall not thereafter be 26 occupied except in the case that it has been brought into 27 conformity with all of the regulations of the zone in which it is 28 located." The letter also advised that the City's records -2- r , r s 1 "indicate that the building located at the above -mentioned address 2 has been vacant since January 28, 1997." The letter concluded 3 with information on the procedure for obtaining an occupancy 4 inspection. 5 4. On December 15, 1997, Leonard Subotnick of Los 6 Angeles Carton Company, a new proposed tenant, filed an 7 application for a certificate of occupancy with the City. An 8 occupancy inspection was conducted the next day, December 16, 9 1997. Again, an inspection report prepared by Mr. Reynoso called 10 for a structural or civil engineer to submit a report on the 11 cracks and deformities in the masonry block walls. Mr. Subotnick 12 was informed by Mr. Reynoso that a temporary occupancy permit 13 could be issued to allow occupancy during construction (Staff 14 Report, page 2, 1 2.). 15 5. Sometime in January 1998, the property owner 16 retained a new engineer, Greg Fox of Fox Engineering, to examine 17 the structure. On January 28, 1998, the same day as the deadline 18 for re -occupying the building, Mr. Fox faxed a brief letter to the 19 City which indicated, among other things, that the building was 20 safe.to occupy during construction. 21 6. In a letter dated January 19, 1998, Mr. Wilson 22 denied a request by the owner's representative for a 60-day 23 extension of the one-year vacancy period. The letter again 24 informed the owner that the building had to be occupied by January 25 28, 1998. (Note: The letter only said the building had to be 26 -occupied. It did not say repairs had to be completed first. 27 There was no "Catch-22" as claimed by the owner.) 28 3- 1 2 3 4 5 6' 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 7. On the morning of January 28, 1998, after receipt of the fax from Mr. Fox, Richard Lucas of the building division spoke to Mr. Subotnick by telephone, advising Mr. Subotnick that he should obtain a temporary certificate of occupancy and re -occupy the building that day. Mr. Subotnick failed to do this. It was not until the following week that Mr. Subotnick picked up an application from City Hall, and not until February 11, 1998 that the application was submitted. The application was too late, and consequently Mr. Wilson refused to issue a temporary certificate of occupancy. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the recitals contained hereinabove are true and correct, and adopts the same as its findings of fact in this matter. SECTION 2: Based upon said findings, the City Council of the City of Vernon further finds and determines that the property at 2111 East 51st Street was vacant for a period of at least one year from and after January 28, 1997, and consequently could not thereafter be occupied without being brought into conformity with all of the regulations of the zone in which it is located, as specified in Vernon City Code S 26.4.6-7. SECTION 3: The City Council of the City of Vernon therefore denies the appeal in this matter, and sustains the determination by the Director of Community Services and Water. SECTION 4: The Staff Report dated June 30, 1998, the letter from the City Attorney dated July 7, 1998, and the MIC 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 transcript of the appeal hearing held on June 23, 1998, are hereby made part of the record in this case. Copies of said documents are attached hereto as Exhibits "A" through "C," respectively. SECTION 5: The City Clerk of the City of Vernon shall certify to the passage of this resolution, and thereupon and thereafter the same shall be in full force and effect. APPROVED AND ADOPTED this 7th day of July , 1998. ATTEST: BRUCE V. MALKENHORST, City Clerk -5- LEONIS C. nLBURG, IMayor 1 STATE OF CALIFORNIA ) ) ss 2 COUNTY OF LOS ANGELES ) 3 I, BRUCE V. MALKENHORST, City Clerk of the City of 4 Vernon, do hereby certify that the foregoing Resolution, being 5 Resolution No. 7181, was duly adopted by the City Council of the 6 City of Vernon at a regular meeting of the City Council duly held 7 on Tuesday, July 7, 1998, and thereafter was duly signed by the 8 Mayor of the City of Vernon. 10 BRUCE V. MALKENHORST, City Clerk 11 (SEAL) 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -6- EXHIBIT 0 07/ W 98, 14:28 $213 588 2761 VERNON COMM.SVS STAFF REPORT 2111 East Slow sTRELT JUNE 30, 1998 . 444 DAVID BREARLEY 1?1 092/00A This Report is a chronology of the events and correspondence that led the City into determining that the building located at 2111 S16t Street was vacant for one year and therefore must be brought into conformance with all City codes prior to being reoccupied. On July 22, 1997 Norman Nishizaki with Ivy Realty applied for an occupancy inspection for Rooster Brand Products. On July 31, 1997 an occupancy inspection was performed for Rooster Brand Products. One main -concern was the condition of the masonry walls. The building inspection report prepared by Wenceslao (Pepe) Reynoso, Engineering aide in the building section, required that a structural or civil engineer inspect the building and determine if repairs were required and if so obtain permits for the necessary repairs. They were advised that an occupancy permit was required prior to occupying the structure. On October 20, 1997 the City received a letter from Delphey/Gerdes Engineering, Inc. dated October 16, 1997. B.J. Moore recommended that the crosswall with extensive cracks be removed. On October 22, 1997 the City received a letter from Delphey/Gerdes Engineering, Inc.' dated October 21, 1997. B.J. Moore reinspected the building and changed his recommendation to rebuild the extensively cracked wall to support the roof joists. On October 28, 1997 the City received a letter from Delphey/Gerdes Engineering, Inc. dated October 24, 1997. This letter addresses the question if the building could be occupied during construction. B.J. Moore stated there would be an element of risk and that the ....`insurance underwriter for the occupant and the contractor would be the controlling factors to determine whether or not the building is occupied during the construction alteration." On November 18, 1997 the City received an electrical permit application to correct the violations noted during the occupancy inspection dated July 31, 1997. This permit was issued on November 25, 1997 and finalized on December 11, 1997. On November 25, 1997 the City sent a certified Letter to Maple Dinettes notifying the property owner that the building has been vacant since January 28, 1997. If the building remains vacant for 07/07/98, 14:29 $213 588 2761 VERNON COMM M i-*-> DAVID BREARLEY- Q 003/00,5 . a one year period it shall be brought into conformance with all regulations of the zone in which it is located. On December 11, 1997 the City received a letter from Robin D. Linden with Hansolo Building Services representing Harriet Belasco, owner of 2111 513t Street & proposed tenant Leonard Subotnick of Los Angeles Carton Co. The subject was to see if the City would accept the proposed method of construction. Mr. Linden made reference to the letter from Delphey/Gerdes Enginering, Inc. dated October 24, 1997. On December 15, 1997 Leonard Subotnick of Los Angeles Carton Co. applied for an occupancy inspection. The inspection for the occupancy was performed on December 16, 1997. The primary concern, addressed in the building inspection report was the cracks and deformities in the masonry walls. Leonard Subotnick was advised at this time that an occupancy permit was required prior to Los Angeles Carton Co. occupying the structure. The process of a temporary occupancy permit was also explained to Leonard Subotnick by Liz Quaranta; with the Health Department. A temporary occupancy permit had previously been issued to A.M. Luggage, Inc. on December 14, 1997 for this site. On January 6, 1998 the City received a fax from Robin Linden with Hansolo Building Services requesting a 60 day extension from the January 28`h 1998 deadline. After the original occupancy inspection for Los Angeles Carton Co. Richard Lucas and Pepe Reynoso met with Robin Linden with Hansolo and Greg Fox with Fox Engineering regarding structural concerns of the walls and the roof. The entire front half of the roof appeared to be over stressed. Greg Fox stated that an engineers analysis was required to determine the amount of repair. Robin Linden said that after reviewing the engineers report he would be able to estimate the value of construction improvements required. There was a concern about the repairs exceeding fifty percent 50t of the reasonable replacement value. Robin said he would inform us of the repair value just as soon as he completed his estimate. They were informed that if the value of the work exceeded Sot of the reasonable replacement value that the building would have to conform to current codes. Robin Linden stated that it might be close to the Sot threshold and the one-year vacancy issue might not be a concern. To date, we have not received any engineering or estimate. On January 19, 1998 Kevin Wilson, Director of Community Services for the City of Vernon, mailed a letter to Robin Linden responding to their request for an extension and stating that it could not be granted. On January 28, 1998 the City received a fax from Fox Engineering that they would be the engineer -of -record and that the building could be occupied during construction. 07/07/98, 14:30 $213 588 2761 VERNON COM(. SVS -►-+i DAVID BREARLEY 00,4/00.5 On January 28, 1998 Richard Lucas, Senior Building Inspector for the City of Vernon, called Mr. Subotnick of Los Angeles Carton Co. in the morning. Mr. Subotnick stated that Pepe Reynoso was going out to the building today to see if the building was OK. Mr. Lucas informed Mr. Subotnick that the temporary occupancy permit application needed to be picked up, notarized, brought back and issued today or the building would be considered vacant for more than one year and would have -to be brought up to current code. Mr- Subotnick did not pick up the temporary occupancy permit application on January 28, 1998. Unaware that the building could not be reoccupied Karon Berry of the City called him the following week. Mr. Subotnick dropped off the temporary occupancy permit application on February 11, 1998. Uporeceipt of the temporary occupancy application, Mr. Subotnick was informed that the building had been determined to be vacant for one year and could not be reoccupied until it was brought into conformance with current codes. On February 17, 1998 the City received a letter from Harriet Belasco to Kevin Wilson dated February 12, 1998 explaining the details of the occupancy of Los Angeles Carton Co. Ms. Belasco stated that Pepe talked to Robin Linden of Hansolo on the phone and said "You've got your temporary occupancy". Pepe does not recall having that conversation however, he does remember telling a Hansolo representative that the temporary occupancy permit application could now be picked up. This occurred on January 28 ,1998 not the 27th- On February 23, 1998 the City received a letter from Harriet Belasco dated February 21, 1998 explaining the details of the occupancy again. On March 31, 1998 the City mailed a letter to Harriet Belasco informing her that the building has been determined to be vacant for more than one year. On April 13, 1998 the City received a letter from Gary S. Reisman with Wallin, Kress, Reisman & Kranitz dated April 9, 1998 to Kevin Wilson regarding time limit on appeals and requesting a faxed copy of Section 24.4. On April 28, 1998 Kevin Wilson responded to Resiman's letter confirming the deadline on appeals and informed him that he could purchase a Zoning Ordinance at the City Clerks office. On May 12, 1998 the City received a letter from Gary Reisman to Kevin Wilson dated May 11, 1998 stating several facts as he understood them. This letter has several in correct statements_ The third paragraph stated that Subotnick actually moved material into the building on January 27, 1998 and that Pepe confirmed the building was occupied and stated the temporary 07/07/98 14:30 '0213 588 2761 VERNON COMM -+-*3 DAVID BREARLEY Q 005/00& ' occupancy permit was approved. This is not true - Pepe inspected the building on the 28°'' and did not see any material in the building. Pepe also told a Hansolo representative that the temporary occupancy permit application could now be picked up. Pepe and Richard first observed a desk and two pallets of cardboard material on a follow up inspection in mid February 1998. The eighth paragraph is incorrect and misleading in stating "the initial occupancy inspection is what lead to the determination that work was needed". This infers that the initial inspection was in December. However, the initial inspection after the building was vacant was July 31, 1997.* The ninth paragraph states that Kevin Wilson's letter of January 19, 1998 contains a real "catch-22", The City notified the occupants at the July 31, 1997 and December 16, 1997 occupancy inspections that there were concerns with the stability of the structure. The tenants were advised that they would need a letter stating that the building was safe to occupy before a temporary certificate of occupancy permit could be issued. The City did not receive a letter from an engineer until the morning of January 28, 1998. Based on these facts, City staff believes that the property owner was fully aware that the building needed to be occupied by January 28, 1998 and that they were informed about our occupancy permit requirements. It is therefore recommended that the City Council determine that the building has been vacant for one year and shall not be reoccupied until it is brought into conformance with the City of Vernon's current code. EXHIBIT 11 CITY COUNCIL LEONIS C. MALBURG Mayor THOMAS A. YBARRA Mayor Pro-Tem Wm. 'BILL" DAVIS Councilman H. "LARRY" GONZALES Councilman W. MICHAEL McCORMICK Councilman BRUCE V. MALKENHORST City Administrator/City Clerk FAX: (213) 581-7924 CITY HALL 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 TELEPHONE (213) 583-8811 July 7, 1998 The Honorable City Council of the City of Vernon 4305 Santa Fe Avenue Vernon, California 90058-0805 Re: 2111 E. 51st Street Gentlemen: DAVID B. BREARLEY City Attorney FAX: (818) 330-5818 KEVIN WI SON Director of Community Services & Water FAX: (213) 588-2761 KENNETH J. DeDARIO Director of Light & Power FAX: (213) 583-1983 DAVE TELFORD Fire Chief FAX: (213) 581-1385 LOUIS ROSENKRANTZ Police Chief FAX: (213) 581-1178 f�F5 1 Regarding the above -referenced property, I have reviewed an appeal letter dated May 11, 1998, submitted to the City by Cary Reisman, attorney for the property owner; a Staff Report dated June 30, 1998, prepared by Kevin Wilson, Director of Community Services and Water; and various documents from the files of the Department of Community Services and Water. The issue before the City Council in this case is whether Mr. Wilson correctly determined that the property was vacant for an entire year and thus could not be re -occupied without being brought up to code. It is that determination which the property owner has appealed. The appeal hearing was last before the Council on June 23, 1998, at which time the Council heard brief testimony and continued the matter to July 7, 1998. Key facts in this case are as follows: 1. On July 31, 1997, an occupancy inspection was conducted in connection with a proposed lease of the property to a company called Rooster Brand Products. The inspection report prepared by Wenceslao ("Pepe") Reynoso, a City Building Inspector, called for a report from a structural or civil engineer with respect to deformities in the building's masonry block walls. (Staff Report, page 1, 1 2). 2. Over two months passed before a report was submitted. In a letter dated October 21, 1997, B. J. Moore of Delphey/Gerdes Engineering, Inc. indicated that an extensively cracked wall should be rebuilt to support the roof joists. In another letter dated October 24, 1997, Mr. Moore addressed the question of "having City Council of the City of Vernon July 7, 1998 Page 2 occupants within the structure at 2111 E. 51st Street" during reconstruction of the wall. Mr. Moore declined to say positively that the building could be occupied during construction. 3. In a letter dated November 25, 1997, Mr. Wilson informed Maple Dinettes, the property owner, of the consequences of the building being allowed to remain vacant for a year. The letter quoted the relevant section of the zoning ordinance -- section 26.4.6-7 -- which states that "a non -conforming building or portion of a non -conforming building which is vacant for a continuous period of at least one year (1) shall not thereafter be occupied except in the case that it has been brought into conformity with all of the regulations of the zone in which it is located." The letter also advised that the City's records "indicate that the building located at the above -mentioned address has been vacant since January 28, 1997." The letter concluded with information on the procedure for obtaining an occupancy inspection. 4. On December 15, 1997, Leonard Subotnick of Los Angeles Carton Company, a new proposed tenant, filed an application for a certificate of occupancy with the City. An occupancy inspection was conducted the next day, December 16, 1997. Again, an inspection report prepared by Mr. Reynoso called for a structural or civil engineer to submit a report on the cracks and deformities in the masonry block walls. Mr. Subotnick was informed by Mr. Reynoso that a temporary occupancy permit could be issued to allow occupancy during construction (Staff Report, page 2, 1 2.). 5. Sometime in January 1998, the property owner retained a new engineer, Greg Fox of Fox Engineering, to examine the structure. On January 28, 1998, the same day as the deadline for re -occupying the building, Mr. Fox faxed a brief letter to the City which indicated, among other things, that the building was safe to occupy during construction. 6. In a letter dated January 19, 1998, Mr. Wilson denied a request by the owner's representative for 60-day extension of the one-year vacancy period. The letter again informed the owner that the building had to be occupied by January 28, 1998. (Note: The letter only said the building had to be occupied. It did not say repairs had to be completed first. There was no "Catch-22" as claimed by the owner.) 7. On the morning of January 28, 1998, after receipt of the fax from Mr. Fox, Richard Lucas of the building division spoke to Mr. Subotnick by telephone, advising Mr. Subotnick that he should obtain a temporary certificate of occupancy and re -occupy the building that day. Mr. Subotnick failed to do this. It was not until the following week that Mr. Subotnick picked up an application from City Hall, and not until February 11, 1998 that the application was submitted. The application was too late, and consequently Mr. Wilson refused to issue a temporary certificate of occupancy. City Council of the City of Vernon July 7, 1998 Page 3 The building in this case is "nonconforming," which essentially means it was legal at the time it was built but no longer conforms to applicable requirements. See, Stokes v. Board of Permit Appeals(1997) 52 Cal.App.4th 1348, 1354. The City's zoning ordinance allows a legal nonconforming building to continue in existence, subject to various restrictions. Section 26.4.6-7, the section quoted in Mr. Wilson's November 25, 1997 letter, provides one way that the right to maintain a nonconforming building can be lost -- by failing to use it for an entire year. Importantly, this code section does not require that the owner intentionally or voluntarily cease use of the building, only that it be vacant for one year. No California case has held that a cessation of use must be intentional or voluntary. See, Hansen Brothers Enterprises, Inc. v. Board of Supervisors (1996) 12 Cal.4th 533, 571. Based upon the foregoing facts, it is my opinion that the City Council, as a legal and proper exercise of its discretion, can deny thisappealand uphold the determination made by Mr. Wilson. The property owner was apprised of the possibility that extensiverepairs might be required well in advance of the January 28, 1998 deadline. As the deadline drew near, the owner was informed that the property could be occupied during construction, providing an engineer would say that this was safe. It is clear the owner understood this as early as October 24, 1997, when Mr. Moore of Delphey/Gerdes Engineering specifically addressed the question of the property being occupied during construction. The record shows the property owner was treated fairly and reasonably in all respects by the City staff. On the other hand, it would also be within the Council's discretion to relieve the property owner of having to bring its building up to code, but in my opinion the factual justification for this is slim and could present problems in the future administration of the zoning ordinance unless the Council can find a unique and equitable reason for granting such relief. Very truly yours, V= Nl�lt David B. Brearley City Attorney DBB:RJM:nc fcc\c-2111e.51 EXHIBIT I 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 VERNON, CALIFORNIA; TUESDAY, JUNE 28, 1998 CITY OF VERNON CITY COUNCIL MEETING MR. MALBURG: Okay. Now, we will go bark. MR. BREARLEY: If the clerk will start_ It's the last item on Page 5. 1 think what we should do is start with Mr. Wilson to explain his decision. MR. MALKENHORST: Which one is this? MR. BREARLEY: It's on Page 5. The last item. MR. MALKENHORST: Resolution? MR. BREARLEY: The communication on the lower part of Page 5. MR. WILSON: I've made a determination that this building cannot be reoccupied until it is bought up to current code. On November 25th I sent a letter to Maple Dinette advising them that the city of Vernon had determined that their building had been vacant since January of 199 -- January 28, 1997, and that if it was not reoccupied by January 28, 1998, that it would be determined to be vacant for more than one year and would have to be brought up to current city code. On December 16, our city staff made an ■ G1 JONNELL AGNEW & ASSOCIATES 1 (800) 524-3376 ROUGH DRAFT 1 object inspection for the property for a proposed 2 tenant. we made a determination that there was some -- 3 in one of the walls, and one of the rafters had 4 cracked, and we made a determination that those had to 5 be repaired prior to occupying the building or that 6 they get a letter from the engineer stating that the 7 building could be occupied while the repairs were being 8 made. 9 On January 61 1998, I received a letter 10 from Robin D. Linden requesting an extension of time. 11 On January 19, I responded to Mr. Linden's letter and 12 stated that we could not grant an extension of time and 13 the building would have to be occupied by the 14 January 28 deadline. 15 On February 5, we received a temporary 16 occupancy permit form for the building. That was 17 finally completed. we told the tenant that he could 18 not occupy the building because we received the request 19 after the deadline and the building would have to be 20 brought up to city code. 21 On January 12, I received a letter from 22 Harriette Belasco, the owner of the building, and a 23 follow-up letter on February 21, requesting that they 24 be allowed to reoccupy the building. 25 And on March 31, 1 sent a letter back to 2 JONNELL AGNEW & ASSOCIATES 1 ( 800 ) 524-3376 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 j(V V VII Yam+ + them stating that I had made a determination that the building was vacant and could not be occupied. That's it, and they are here to appeal my decision on the matter. MR. MALBURG: Okay. I guess we should hear from counsel over here. Would you please give us your name. MR. REISMAN: Thank you, your Honor. I am Barry Reisman with the Law Offices of Wallin, Kress, Reisman and Kranit2. I have some documents which are city records. The City Attorney was kind enough to provide me copies of them. I still ogre him for them, if you tell us how much. MR. BREARLEY: $10 million. MR. REISMAN: Well, that depends on if we win or not. I have a copy for the department head, copies for the department members, and one extra the City Manager can fight over. They are chronological. That's the only logic to the order. Basically my clients have owned this property for many years. It became vacant about a year and a half ago, and they found out in probably September that they needed to reoccupy it within a JONNELL AGNEW & ASSOCIATES 1 (800) 524-3376 3 t-�T T L�R7 jtVUVL � 1 2 3 4 5 6 7 S 9 10 11 12 13 14 15 16 1,1 is 19 20 21 22 23 24 25 year. They fully intended to reoccupy it. In fact, they leased it to L.A. Carton, another property owner in Vernon and another good property owner in Vernon. And Mr. Subotnick applied for everything he was required to apply for. He applied for a certificate of occupancy. Paid the fee for it. Be applied for a business license. Paid the fee for the secured occupancy inspection reports from the various departments, and you'll see them in the packet dated November and December 16. The business license application is very difficult to read, the copy that I received by fax from Mr. Brearley. It was submitted and paid for on January 12. The fee was $545.75. There wasn't a problem with that as far as he was informed. There is a copy of the report from an engineer back in October of 197 saying what was needed for the property as far as the engineer was concerned. There is an engineer's report on December 11, that may have been when they submitted that report I just referred to. Yes. Then there is an application. for a building permit. And it looks like the lath of December '97, buyer's permit. The certificate of occupancy application is in your packet. It's dated December the 15th. JONNELL AGNEW & ASSOCIATES 1 (800) 524-3376 ROUGH DRAFT i 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Now, the key date that the department was saying that they had to reoccupy by was not until the 28th of January. So all this is going on. They hire Han Solo Engineers, and Robin Linden is here and will speak to you in a moment. There is a letter here dated January 6th regarding it. Information engineering and information letter is dated January 27, the day before. Attached to informations there is a little note and it says, Called 1/28/98. Called Leonard Subotnick, and Mr. Subotnick is going to talk to you about that. Then there is a temporary occupant dated February 5. Mr. Subotnick is going to tell you when he was called to come pick it up. He didn't even know he had to fill this out and it had to be notarized until the day before. The notary requirement doesn't appear anywhere in the Codes. I've looked. There is no requirement of the notarized document, and Mr. Subotnick was not told it had to be notarized until the day that they called on February 4th. Then there is some letters back and forth that give you some more background. Ms. Belasco, the owner, was never told that she had to have this done by January 28, 1998- Xf she'd known, of course she would have run down, filled 5 JONNELL AGNEW & ASSOCIATES 1 (800) 524-3376 ROUGH 1 it out herself, had it notarized and she would have 2 taken care of it. 3 The building is too valuable to lose- 4 Mr. Subotnick has a four-year lease, and is here to 5 stay permanently. She had a lot to loose. They'd 6 filled it out, gotten it notarized and brought i_•l' in. 7 That's the only thing that the city is saying we didn't 8 do is fill out the form, get it notarized and bring it 9 back. They said they called on the day it was due, the 10 26th, and we didn't come until the 4th. 11 And I think I've said Enough. I don't 12 like to hear lawyers go on and on at city council 13 meetings. I'm going to it turnover to my client and 14 let her speak about her company and property. 15 MS. BELASCO: Hi. Thank you for hearing us. I 16 really have very little to say except for the fact that 17 I did -- should I say my name? 18 MR. MALBURG: Please. 19 MS. BELASCO: I'm Harriette aelasco. I'm not 20 the property owner, but I represent the property owner, 21 Maple Dinette. I've done all the course with some of 22 the people here. 23 I did receive a letter -- it was October 24 or November -- that the building had to be occupied by 25 the 28th, I believe, of January. It had to have a 6 JONNELL AGNEW & ASSOCIATES 1 (800) 524-3376 r,r,rtr`_v TD�TiT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 tenant. it didn't say have to have a tenant and the different things where the building safety, fire and health, et cetera, et cetera, had to be complied with. I feel I'm in a catch 22. And then they say now the tenant can't occupy the property, so where an I left? I'm left hanging by a thread at everybody's mercy. All we're trying to do is abide by your request, which we have a tenant who calls me maybe every couple of weeks, "When can I move in?" I say, "Leonard, I don't know what to do. We are at the City's mercy." I'm here at your mercy trying to do anything that I need to do to make everybody happy including me, Maple Dinettes and my tenant. We would do anything you said if you tell me in enough time. If you say the building needs a tenant and I get a tenant by the 28th, that should be fine. So if you have any questions and want to know why I didn't do anything when I was supposed to, I will try to give you the best answer I have. MR. REISMAN: What other property does your client have? MS. BELASCO: Has 2101 East 51st and a piece of property on Fruitland and on Everett Court. We've ■ i JONNELL AGNEW & ASSOCIATES 1 (800) 524-3376 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 always been honest to. do the very best with any of the requirements that the city of Vernon has asked us to do. Life is just too short to make life difficult for anyone, especially when we are willing to abide by anything you say. MR. REISMA4: Mr. Subotnick, if you would, would you also state whether you moved anything in there and what? MR. SUBOTNICK: My name is Leonard Subotnick. I have a building on 51st, Los Angeles Carbon Company. On December 12th or 16th, I applied for the occupancy permit which cost $120. Then I found out that later in.January that they're going to fix the building. on January 12th, I applied the $545 for it. At that time the lady, the clerk in the office did not tell me that I had to have another paper signed and notarized. I knew nothing about that. On February 4th, I get a call from the office that there is a paper up there I have to sign and have it notarized. I have city or state or federal government. I immediately picked up the paper, went to my notary public in Vernon, had it signed and have a copy of it. I sent two in. I don't know if I mailed JONNELL AGNEW & ASSOCIATES 1 (800) 524-3376 8 y i 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 TTTY.IT it in or took it in. A few days later, I think, this Mr. Lucas called and said we didn't comply to the January 28 order. I didn't know I was supposed to get it in by the 28th. Nobody told me. That's all I know about it. MR. REISMAN: Did you move some things into the property? MR. SUBOTNICR: We moved in some desks, a water cooler. I have a couple of pallets and corrugated boxes. They said there is no occupancy permit. It was all in there before the 28th. MR. MALBURG: Thank you. MR. SUBOTNICR: That's all I have to say. MR. MALBURG: Thank you very much. MR. LINDEN: My name is Robin Linden with Han Solo general contractor. I'm with Harriette Belasco for Maple dinettes general contractor. First of all, I think with the letter, we requested an extensions. We had met personally prior to that. We had to put it in writing asking for the extensions in the letter. He replied back on the 19th we had until the 28th. if you look at all our things before the 28th, except for the notary public notarized signature JONNELL AGNEW & ASSOCIATES 1 (800) 524-3376 I r 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ROUGH didn`t comply, and everything else with the engineer letter that came on the 27th, it was assumed by everyone over here we made it. And then here we are. MR. REISMAN: Did Pepe tell you that the inside --- MR. LINDEN: Yes, we had an inspection on the 27th that they inspected everything. They violated some things on the building of course. We have so long to comply with that. And I think before we even completed the proposal to my client, we were canceled. On the 27th, Pepe had been inside to verified that there was -- all the city inspectors had been there, seen everything and -- including the engineering with Richard Lucas and Pepe, he told us all we had to do, so it could be occupied or the work was being performed, which we did give a letter to that effect. MR. REISMAN: Your attorney is making a technicality and saying, "Oh, you didn't cross this T or dot this I." MR. BREARLEY: In this case, I think it's kind of the City, but you didn't notarize it because there is no legal requirement that you have a notarize acceptance of the conditions. MR, REISMAN: They knew who Mr. Subotnick was. JONNELL AGNEW & ASSOCIATES 1 (800) 524-3376 r 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 That's all this note says. it doesn't say it's all true. This is the person he says he is. The city knows who he is. The notarization is a real technicality. The submittal of this form after everything else had been done is a technicality and it's not really fair to put these people out of business based upon that technicality. So we are appealing to the council's sensibility, and we're requesting that they be permitted to reoccupy that building, make any remaining structural -- city of Vernon. MR. MALBURG: Do you have any comments on this at this time? MR. BREARLEY: Well, I would recommend that you defer this matter to the next meeting. The next meeting in July, we will come back again and go over the comments that have been made and see just where the truth lies. I think that might be the better collusion at this time. MR. MALBURG: Work with Kevin then. MR. BREARLEY: I'll work with him. MR. MALBURG: Did you hear the City Attorney, what he said and so forth? And I think the council confers with the recommendation. MR. GONZALES: I would like to have it deferred, JONNELL AGNEW 6 ASSOCIATES 1 (800) 524-3376 11 L. 6 r ,RVuyu aia�+-� 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 is 19 20 21 22 23 24 25 until the next council meeting. Of course you will give me a copy of this. I can't see it this fast. MR. REISMAN: I understand. MR. GONZALES: I'm not going to read this right now. MR. REISMAN: I thought you would have some of it already. MR, GONZALES: I've got to matchwhat you said and what the other people tell me, too. MR. REISMAN: is my appeal letter already there? MR. BREARLEY: Which letter? MR. REISMAN: My appeal letter in the -- what the council has? MR. BREARLEY: Yes. MR. REISMAN: Thank you very much. MR. GONZALES: I will move to defer. MR. BREARLEY: The first meeting in July. MR. MALBURG: Gonzales moves to defer this to the first council meeting in July, and second by Davis, and be the order. And I will see you back -- 12 JONNELL AGNEW & .ASSOCIATES 1 (900) 524-3376