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BACKGROUND From 2009 to 2012, the City inspected the property at 4719 Orangewood Court and discovered various Pleasanton Municipal Code and state law violations. Administrative citations were issued, but the property owners failed to comply or pay the fines. Due to the continued substandard condition of the property, the City, on August 3, 2012, filed a petition for appointment of receiver in the Superior Court of California, County of Alameda (City of Pleasanton v. Spitzer, Case Number RG12642206). After a hearing on September 12, 2012, the Court found that the property was substandard and a public nuisance and maintained in a manner that violated the state building standards, including the Health and Safety Code and the Pleasanton Municipal Code. The Court further found that the violations were extensive and of such a nature that the health and safety of any occupant of the property, the neighboring residents, and the general public was substantially endangered. The Court also held that the City properly issued the property owners a notice to repair and abatement order and the property owners failed to comply with the notice and abatement order. The Court further held that the property's substandard conditions were likely to persist unless the Court appointed a receiver to take possession of the property and rehabilitate it and the property owners were given notice of the City's intent to file a petition for a receiver's appointment. The Court's orders included the reimbursement to the City for its enforcement costs, including but not limited to inspection costs, investigation costs, and attorney fees and costs in the receivership action. The City's outstanding fees and costs which can be specially assessed, as of June 27, 2017, total $141,231.39, and include: Senior Code Enforcement Officer, Walter Wickboldt: $8,250.58 Hazardous Materials Inspector: Isaac Mendel: $620.28 Assistant City Attorney, Julie Harryman: $11,137.50 Assistant City Attorney, Renee Peko: $11,781.00 Outside Counsel, Trisha Aljoe - $71,892.60. Outside Counsel, Dawn Ceizler $35,820 Litigation Costs: $1,324.43 Process Service Costs: $405.00 At an upcoming State Court hearing, currently scheduled for August 15, 2017, the Court will hear the City's motion for a judgment to be imposed as a special assessment in accordance with the City Council's actions on July 18, 2017, if any. Staff recommends that the City Council impose a special assessment in the amount up to $141,231.39 to recover the City's attorney fees, investigation costs, prosecution costs, and enforcement costs. Page 2 of 3