To: Board of Supervisors
From: Joanne M. Bohren, CPA, County Auditor-Controller
Report Title: Release of Reimbursement Agreement and Notice of Lien
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
ADOPT resolution releasing the February 16, 1962 Reimbursement Agreement and Notice of Lien of County of Contra Costa, recorded by the Contra Costa County Hospital, against Jerry and Willie Lee Allen and their real property located at 118 Maine Avenue, Richmond, CA 94804, APN 550-081-005-5, which was recorded as Document number 14186, in Book 4058, Page 192, of the Official Records of the County of Contra Costa, State of California.
APPROVE AND AUTHORIZE Auditor-Controller, or designee, to execute the release of Reimbursement Agreement and Notice of Lien, recorded on February 16, 1962, against Jerry and Willie Lee Allen and their real property located at 118 Maine Avenue, Richmond, CA 94804 (APN 550-081-005-5) for unpaid medical expenses.
FISCAL IMPACT:
No fiscal impact because the amount of the lien cannot be ascertained, which makes it impossible to collect.
BACKGROUND:
On February 16, 1962, Contra Costa County Hospital (Richmond) recorded a Reimbursement Agreement and Notice of Lien (pursuant to former Welfare & Institutions Code sections 203.5 and 2601), against Jerry and Willie Lee Allen and their real property located at 118 Maine Avenue, Richmond, CA 94804 (APN 550-081-005-5), wherein they agreed that “in consideration of aid heretofore or hereafter granted to me/us by the County of Contra Costa and as a condition thereto, do hereby pledge, promise and agree to reimburse and repay said County of Contra Costa for all sums of money heretofore or hereafter actually given or expended in my/our behalf, or add heretofore or hereafter granted to me/us or given in my/our behalf by the County of Contra Costa for such care and maintenance.”
The February 16, 1962, Reimbursement Agreement and Notice of Lien, does not include a lien amount. Contra Costa Health Services does not have any patient records for treatment and related financial records of Jerry and Willie Lee Allen, as it does not retain such records dating back to the 1960s, when Jerry and Willie Lee Allen were treated at a County hospital.
Because there is no resource to verify the treatment provided to Jerry and Willie Lee Allen at a County hospital in the 1960s or verify the charged amount (“lien amount”) for such treatment, the County is unable to collect such amount. For this reason, the charges are considered “legally uncollectible” and the County Board of Supervisors is authorized to adjust the amount owed under Health & Safety Code section 1473. In this case, it is recommended that the amount owed be adjusted to $0 because there is no record of any charges.
Additionally, pursuant to Welfare & Institutions Code section 17405, the County Board of Supervisors is authorized to release a lien if the Board finds that without knowing the lien amount, the County would not realize any monies if the lien was foreclosed or the property was sold at a forced sale. Here, the County would not realize any monies if the lien was foreclosed or the property was sold at a forced sale because the lien amount is unknown.
This lien came to the attention of the Estate of Willie Lee Allen when the Estate attempted to sell the real property located at 118 Maine Avenue, Richmond, CA 94804 (APN 550-081-005-5). As no lien amount is known, the Estate cannot pay the owed amount and without releasing the lien, the Estate is unable to sell the property. Due to the special circumstances of this case and pursuant to the Board’s authority to release such an aid lien under Health & Safety section 1473 and Welfare & Institutions Code section 17405, the Auditor-Controller requests the Board to authorize it to release the February 16, 1962 lien, and adopt resolution.
CONSEQUENCE OF NEGATIVE ACTION:
The failure to release the lien will prohibit the Estate of Willie Lee Allen from selling the subject real property.
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
and for Special Districts, Agencies and Authorities Governed by the Board
body
RESOLUTION RELEASING AID LIEN BY COUNTY OF CONTRA COSTA
WHEREAS, Welfare & Institutions Code section 17109 (formerly, Welfare & Institutions Code section 2601) states, “As a condition to the grant or continuation of aid to an indigent, the board of supervisors may require, as security for the moneys so expended, that the applicant transfer or grant to it such property or interest in property as the applicant has, or such portion thereof or estate therein or lien thereon as the board specifies . . . In the case of any estate, interest, or lien in such property held by the board, or any right of management transferred thereto, the board shall have all the powers of an attorney in fact for the indigent as to such estate, interest, or lien, and may sell, lease, or transfer the same, defend and prosecute all suits concerning it . . . and such reimbursement shall constitute a preferred claim against such estate, interest, or lien”;
WHEREAS, Health & Safety Code section 1473(b) (formerly, Welfare & Institutions Code section 203.5) states, “The board of supervisors in each county may fix the rates to be charged patients admitted to any county hospital and may direct any county officer to collect the amounts due the county for hospitalization and medical care. In fixing and collecting hospital charges the board may exercise all the powers conferred by Chapter 5 (commencing with Section 17400) of Part 5 of Division 9 of the Welfare and Institutions Code. The board . . . may adjust or compromise hospital charges [if the] [c]ollection of the charges is . . . legally uncollectible”;
WHEREAS, Welfare & Institutions Code section 17405 states, “Any . . . lien in property transferred or granted to the board of supervisors under the provisions of section 17109 . . . may be . . . released by them . . . upon payment to the county of such amount as in the opinion of the board of supervisors equals the net amount which would be realized in the event that the lien was foreclosed or such estate or interest was sold at forced sale”;
WHEREAS, Welfare & Institutions Code section 17408 states, “The releases [of lien] . . . herein provided for shall be authorized by a resolution of the board of supervisors, and the instruments of release . . . shall be executed by an officer of the county, designated by the board of supervisors, in the name of the county and the State of California, and release . . . authorized by the board of supervisors and executed by the designated county officer shall conclusively bind the county and the state in favor of any bona fide purchaser or encumbrancer for value”;
WHEREAS, on February 16, 1962, Contra Costa County Hospital (Richmond) recorded a Reimbursement Agreement and Notice of Lien (pursuant to former Welfare & Institutions Code sections 203.5 and 2601), against Jerry and Willie Lee Allen, wherein they agreed that “in consideration of aid heretofore or hereafter granted to me/us by the County of Contra Costa and as a condition thereto, do hereby pledge, promise and agree to reimburse and repay said County of Contra Costa for all sums of money heretofore or hereafter actually given or expended in my/our behalf, or add heretofore or hereafter granted to me/us or given in my/our behalf by the County of Contra Costa for such care and maintenance”;
WHEREAS, the February 16, 1962, Reimbursement Agreement and Notice of Lien further states, “It is further agreed and notice is hereby given, that any claim for such moneys heretofore or hereafter given to me/us or expended in my/our behalf, or aid heretofore or hereafter granted to or expended in my/our behalf by said County shall be a preferred claim against me/us and a first lien on all real and personal property now owned or possessed by me/us or that may hereafter be acquired by me/us or in my/our behalf”;
WHEREAS, the February 16, 1962, Reimbursement Agreement and Notice of Lien, a lien for treatment at a County hospital, was recorded against Jerry and Willie Lee Allen’s real property, located at 118 Maine Avenue, Richmond, CA 94804 (APN 550-081-005-5);
WHEREAS, the February 16, 1962, Reimbursement Agreement and Notice of Lien, does not include a lien amount;
WHEREAS, Contra Costa Health Services does not have any patient records for treatment and related financial records of Jerry and Willie Lee Allen, as it does not retain such records dating back to the 1960s, which is when Jerry and Willie Lee Allen were treated at a County hospital;
WHEREAS, there is no resource to verify the treatment provided to Jerry and Willie Lee Allen at a County hospital in the 1960s or verify the charged amount (“lien amount”) for such treatment;
WHEREAS, without knowing the lien amount, the County is unable to collect such amount, deeming it “legally uncollectible” pursuant to Health & Safety Code section 1473;
WHEREAS, pursuant to Health & Safety Code section 1473, the County Board of Supervisors are authorized to adjust any hospital charges if the charges are considered “legally uncollectible”;
WHEREAS, without knowing the lien amount, the County would not realize any monies if the lien was foreclosed or the property was sold at a forced sale;
WHEREAS, pursuant to Welfare & Institutions Code section 17405, the County Board of Supervisors is authorized to release a lien if the Board finds that without knowing the lien amount, the County would not realize any monies if the lien was foreclosed or the property was sold at a forced sale;
NOW, THEREFORE, BE IT HEREBY RESOLVED THAT:
1. The Board of Supervisors of County of Contra Costa FINDS that without having any resources to verify the lien amount for the aid provided to Jerry and Willie Lee Allen, the charges are “legally uncollectible”, and may be adjusted or compromised by the Board pursuant to Health & Safety Code section 1473 and are hereby adjusted to $0.
2. The Board of Supervisors of County of Contra Costa FINDS that without having any resources to verify the lien amount for the aid provided to Jerry and Willie Lee Allen, the County would not realize any monies if the lien was foreclosed or the property was sold at a forced sale.
3. The Board of Supervisors of County of Contra Costa, pursuant to Health & Safety Code section 1473 and Welfare & Institutions Code sections 17405 and 17408, is authorized to release and hereby releases the February 16, 1962, Reimbursement Agreement and Notice of Lien, against Jerry and Willie Lee Allen and their real property, located at 118 Maine Avenue, Richmond, CA 94804 (APN 550-081-005-5).
AYES:
NOES:
ABSTAIN:
ABSENT:
RELEASE OF REIMBURSEMENT AGREEMENT AND NOTICE OF LIEN
In accordance with the foregoing resolution, the lien of the County of Contra Costa, recorded by Contra Costa County Hospital, against Jerry and Willie Lee Allen and their real property located at 118 Maine Avenue, Richmond, CA 94804, APN 550-081-005-5, which was recorded on February 16, 1962, as Document number 14186, in Book 4058, Page 192, of the Official Records of the County of Contra Costa, State of California, is hereby released.
Dated: ________________________ _________________________________
Auditor-Controller, County of Contra Costa
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