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Minutes 06-27-02MINUTES OF THE CODE COMPLIANCE BOARD LIEN REDUCTION MEETING HELD IN COMMISSION CHAMBERS, CITY HALL, BOYNTON BEACH, FLORIDA, ON THURSDAY, JUNE 27, 2002 AT 3:00 P.M. Present: Chris DeLiso, Chairman Scott Blasie, Code Administrator Bob Foot David Tolces, Assistant City Attorney Patti Hammer, Vice Chair James Miriana Eric Rossi Absent: Tom Walsh Dee Zibelli Michele Costantino, Alternate Dave Rafkin, Alternate I. Call to Order Chairman DeLiso called the meeting to order at 3:00 p.m. II. Approval of Minutes Motion Vice Chair Hammer moved to approve the minutes of the May 23, 2002 Lien Reduction Meeting. Motion seconded by Mr. Miriana and unanimously carried. II1. Approval of Agenda The agenda was placed on file as presented. IV. Swearing in of Witnesses and Introduction V. Old Business A. LIEN REDUCTIONS Case #97-2407 Dayton Hudson Corp. 1901 N, Congress Ave. (Qualex Inc./Target One-Hour Photo) Mr. Blasie presented the case. The case originated as a result of the operation of a One-Hour Photo within the Target Store. The property was originally cited on Meeting Minutes Code Compliance Board Lien Reduction Boynton Beach, Florida June 27, 2002 June 18, 1997 for not having an Occupational License and was referred to the Code Division by the Occupational Licensing Division. No one appeared at the August 20, 1997 Code Compliance Board Hearing. A compliance date of September 15, 1997 was set or a fine of $50.00 per day. The property complied on April 27, 1999 for a total fine of $24,900, plus administrative costs of $634.12. Mr. Blasie noted that photo labs require an environmental review permit from the City. The respondent filed for an Occupational License on July 15, 1997 and some problems resulted from the environmental review. They did not obtain the Occupational License until 1999. Mr. Blasie stated that there were some service issues, as well. When the Code Division received the case, the address for the violators listed Target's address on Congress Avenue. Therefore, Target was cited, along with their parent corporation, Dayton-Hudson, located in Minneapolis. All notices were sent to Target and the parent. Mr. Blasie said that the respondent will explain the relationship between Qualex and Target when he testifies. Mr. Rossi inquired why it took so long for the respondent to receive their Occupational License. Mr. Blasie responded that it was mainly due to the Utilities Department not signing off and a conflict between Utilities and the Fire Department. There were also some communication gaps between Target and Qualex. Mr. Blasie reported that Target was unaware that there was a lien on their property. The lien surfaced when they tried to sell one of their other properties in Palm Beach County. Chairman DeLiso asked what the problem was with the service. Mr. Blasie felt that the service was proper, but nothing went directly to Qualex because they were part of Target, the owner of the property. Target already informed the City that they had an Occupational License and faxed a copy to the Code Division. However, this License did not cover Qualex's operation. The Recording Secretary administered the oath to the Respondent. Richard Coffman, 5849 Corson Place, Lake Worth, Florida is the District Operations Manager for South Florida for Qualex. Qualex is a wholly-owned subsidiary of Eastman-Kodak and is not part of the Target Corporation. Eastman-Kodak and Target entered into an agreement to open photo labs in Target stores. The respondent was not aware that they needed an occupational license for their photo operation since the Boynton Beach store was their first operation in Florida. They did not set up a separate company within Target and all monies received at the register go to Target. The product is Target's product. Qualex acts as the on-site photo lab developers and the equipment belongs to 2 Meeting Minutes Code Compliance Board Lien Reduction Boynton Beach, Florida June 27, 2002 Kodak. The agreement provides for Target to pay Kodak. As a result of the Boynton Beach situation, Qualex now maintains a tax department in Durham, North Carolina to handle all Occupational Licenses. Mr. Coffman also stated that they were not aware of the environmental review requirement and was informed of this when they applied for their license. When the photo lab was first inspected by Utilities, John Guidry, Utilities Director, requested that the photo lab provide the City with the name of the waste hauler. He also requested that the floor drain be sealed or that a secondary containment be provided for the waste chemicals stored. Target sealed the drain as requested. While waiting for the final inspection, a spill occurred in the photo lab and the odor made some customers sick. Fire Rescue was called and when they arrived at the property, they informed Qualex that the floor drain had to be unsealed. An employee of the Utilities Department came to the store to inspect the photo lab and a method to contain the chemicals was devised so that the drain could be left unsealed. The chemical containers are now placed in clear plastic totes that provide a 6" containment basin. When the lab passed the environmental review, they were also required to make a second payment of $250, which had to come from corporate headquarters. This also resulted in a delay in receiving the license. Mr. Coffman noted that most correspondence was sent to Dayton-Hudson and they faxed their own occupational license, assuming that the requirements had been met. He pointed out that this is a very large corporation. One person does not always handle the same paperwork and there was a breakdown in communications between them and Eastman-Kodak. Chairman DeLiso inquired when the License was issued and Mr. Blasie responded that it was issued on April 27, 1999. Mr. Coffman pointed out that they recently opened up a photo lab in BJ's Warehouse in Boynton Beach and went through the process smoothly. Mr. Blasie pointed out that the notices stated that an "occupational license is required" and that is probably why Target assumed it was their occupational license that the notice referred to. There was no mention of a photo lab in the notices. Mr. Foot inquired how the City determined that it was Qualex and not Target. Mr. Blasie thought that it might have been the result of a telephone call. Mr. Coffman said that they do not receive mail at the store and that everything goes to Target. 3 Meeting Minutes · Code Compliance Board Lien Reduction Boynton Beach, Florida June 27, 2002 Mr. Foot asked Attorney Tolces if in his opinion service was properly made. Attorney Tolces stated that service was effected properly. There might be an issue with respect to notice of the violation. Vice Chair Hammer pointed out that the Respondent has been in compliance for over three years and the result of the problems was a lack of communication between the parties and no one was aware that there was a lien on the property. Motion Based on the testimony and evidence presented in Case No. 97-2407, and having been advised that the Respondent has complied with all lien reduction procedures set forth in Sections 2-84 through 2-89 of the City of Boynton Beach Code of Ordinances, Mr. Miriana moved that this Board reduce the fines instituted in Case No. 97-2407, by virtue of this Board's Order of August 20, 1997, to $634.12, including administrative costs. Motion seconded by Vice Chair Hammer. Mr. Foot inquired how the problem was finally resolved between the Utility and Fire Department with regard to the drain. The respondent stated that the drain is now open and the containment method previously mentioned is in place. Mr. Foot felt that if the lien was the result of City mistakes, he did not think that the respondent should be responsible for any kind of fine. Chairman DeLiso asked Mr. Foot why he was trying to place the blame on the City. Mr. Foot noted that this Board sits as judges and is not the City. Chairman DeLiso felt that placing blame on the City was irrelevant to the case. Mr. Blasie noted that there was a two-year delay, but he thought that the problem was a communication problem between Target and Qualex and not the City. Mr. Blasie also noted that when the violation first occurred there was a different Qualex employee in charge of the operations and there is evidence of contact between Qualex and the City in the file. Mr. Rossi pointed out that for two years the Respondent was using chemicals without a license and felt that there was neglect on the part of Target. Mr. Rossi would like more of a fine assessed. The Respondent pointed out that the chemicals they use are not considered hazardous until they go through the processing equipment and a recovery system is used for that. Vote Motion failed 2 to 3; Chairman DeLiso, Messrs. Foot and Rossi dissenting 4 Meeting Minutes Code Compliance Board Lien Reduction Boynton Beach, Florida June 27, 2002 Motion Based on the testimony and evidence presented in Case No. 97-2407, and having been advised that the Respondent has complied with all lien reduction procedures set forth in Sections 2-84 through 2-89 of the City of Boynton Beach Code of Ordinances, Mr. Rossi moved that this Board reduce the fines instituted in Case No. 97-2407, by virtue of this Board's Order of August 20, 1997, to $2,490, including administrative costs. Motion seconded by Mr. Foot and carried 3-2, Vice Chair Hammer and Mr. Miriana dissenting. Attorney Tolces pointed out that the Code provides that a majority of the Board must vote affirmatively to reduce the lien. Since there are seven members on the Board, this would require a vote of four members. Vote Vice Chair Hammer changed her vote to yes. the lien to $2,490 carried 4-1. Therefore, the motion to reduce Mr. Foot requested that the agenda be amended to include a question about his qualifications to sit on the Board, as the result of some comments made by Chairman DeLiso during the discussion of the case. Motion Mr. Foot moved that the agenda be amended to provide for a discussion of the Chairman's question about Mr. Foot's performance on this Board and action by the State to remove me, if there is a question about his performance on this Board. Chairman DeLiso stated he was perplexed bY Mr. Foot's motion. The motion died for a lack of a second. VI. Adjournment There being no further business, the meeting properly adjourned at 3:45 p.m. Respectfully submitted, Barbara M. Madden Recording Secretary (one tape) (June 28, 2002) 5