COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Counsel

DATE:

November 21, 2006

BOARD MEETING DATE:

December 12, 2006

SPECIAL NOTICE/HEARING:

None required

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

County Counsel

SUBJECT:

Claims for Excess Proceeds from the Tax Sale of Parcel 048-036-120 made by Granada Sanitary District and Global Discovery Services, Ltd.

RECOMMENDATION:

Grant the claims to the excess proceeds from the sale of Parcel No. 048-036-120 to Granada Sanitary District in the amount of $6,354.68 and to Global Discovery Services, Ltd. in the amount of $114,681.85.

VISION ALIGNMENT:

By complying with the provisions of the Revenue and Taxation Code pertaining to claims for excess proceeds, the Office of the Tax Collector demonstrates its commitment to Goal 21 of the Visioning Project, which states that “County employees understand, support, and integrate the County vision and goals into their delivery of services”.

DISCUSSION:

Revenue and Taxation Code section 4675 provides for distribution of the excess proceeds of tax sales. When property is sold for payment of taxes, the “excess proceeds” from the sale, or that portion not payable for taxes, assessments, costs of sale and notice are payable, upon claim, to persons having an interest in the property at the time of the sale. After all liens have been satisfied, any person who had title of record prior to the sale is entitled to claim the excess proceeds. It is the responsibility of the Board of Supervisors to act on such claims, which must contain any information and proof deemed necessary by the Board of Supervisors to establish a claimant's right to all or any portion of the excess proceeds.

The above-referenced parcel was sold at auction in May 2005 for $126,138.60. After the necessary deductions for delinquent taxes and penalties, recording fees, and other statutory fees, the surplus amounted to $121,036.53. The present claims to the proceeds have been presented in a timely fashion, and no other claims have been filed within the required one year period.

Granada Sanitary District has demonstrated its interest in the property by providing a copy of a default judgment in its favor against the prior owner of the property from the Superior Court of the State of California for the County of San Mateo, Case No. 418626. It is respectfully recommended that the claim by Granada Sanitary District to $6,354.68 of the excess proceeds be granted.

Global Discovery Services, Ltd. has demonstrated its interest in the property by providing a copy of assignment of the interest in the proceeds executed by the heir to the estate that previously owned the property and a court order approving the assignment issued by the Superior Court of the State of California for the County of San Mateo, Case No. PES-05-287905. It is respectfully recommended that the claim by Global Discovery Services to the remaining excess proceeds, in the amount of $114,681.85, be granted.

FISCAL IMPACT:

None.