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Minutes 06-21-10 MINUTES OF THE CODE COMPLIANCE BOARD LIEN REDUCTION MEETING HELD ON MONDAY, JUNE 21, 2010, AT 4:00 P.M. IN CITY COMMISSION CHAMBERS, CITY HALL, BOYNTON BEACH, FLORIDA PRESENT: Michele Constantino, Chair Scott Blasie, Code Compliance Administrator Richard Yerzy, Vice Chair David Tolces, Assistant City Attorney Robert Foot Mark Karageorge Kirk LaRock Kathleen Carroll, Alternate ABSENT: nd Jamie LaTour, 2 Vice Chair James Brake I. Call to Order Chair Costantino called the meeting to order at 4:00 p.m. II. Approval of Agenda Scott Blasie, Code Compliance Administrator, advised he had no additions or deletions. No motion was made to approve the agenda. III. Swearing in of Witnesses and Introduction Attorney Tolces explained the hearing procedure and administered the oath to all who would be testifying. Mr. Blasie called the roll to determine the Respondents who were present. Chair Costantino requested the Mega Mini case be heard first. There was no objection to the request. Mr. Blasie provided an overview of the lien reduction procedure. He added, all the Respondents had met the lien reduction criteria, and any past-due charges had been satisifed. 1 Meeting Minutes Code Compliance Board Lien Reduction Boynton Beach, Florida June 21, 2010 IV. New Business th Case #07-983 Mega Mini 2951 SW 14 Pl. Mr. Blasie explained the case originated on April 23, 2007 for violations of the Boynton Beach amendments to the Florida Building Code. Bay 6 had been remodeled withoutthe benefit of permits or inspections. The case had been presented to the Board on June 20, 2007, and no one had appeared. The Board had established a compliance date of June 30, 2007, or $100 per day. Staff had documented compliance as of May 29, 2008, having 333 days of non-compliance plus administrative costs of $730.15. In the September 19, 2007 fine certification minutes, Mega Mini addressed an issue pertaining to service. While the person who signed the green return receipt card was employed by Mega Mini, it was Mega Mini's belief the person should not have signed the card. The City Attorney, however, had confirmed that proper service had been effectuated. st Jason Mankoff, Michael Weiner Associates, 10 SE 1 Avenue, Delray Beach, was accompanied by Bob Gaudio, the current manager of the property. Glenn Friedt, the owner, had serious medical issues in 2007 and had not been at the property. The manager at the time, who had since been let go, was managing the premises unsupervised. The manager was a partner of the tenant who was responsible for the issue and may have been the individual who signed the green card, never having advised the owner of the violations. Under the lease at the time, the tenant was to have pulled all the permits and performed all the improvements to the space at the owner's cost. Mr. Friedt should have asked the tenant for a copy of the permits, but as mentioned earlier, he was not on site and he had trusted the manager. The manager paid the tenant $5,000-$7,000 for the costs of the demolition and improvements and had never received any rent monies, which were to commence upon the completion of the improvements and receipt of the occupational license. The City's lien against the property was approximately $33,000. Mr. Mankoff requested forgiveness from the lien. Mr. Gaudio was hired in July 2008 and had worked with the City in an effort to resolve the matters pertaining to the property, including making the necessary repairs requested by the City. Additionally, the owner had been advised that the use of the property was not a permitted use. Rather than obtaining the permits after the fact, the demolition had taken place. Subsequently, the Planning and Zoning Department advised that an error had been made and the use was permitted. It was questioned whether the owner was a single proprietor. th Bob Gaudio, 2951 SW 14 Place, noted he is the General Manager of the property and Mr. Friedt, the General Partner in a limited partnership, was the a majority owner. Mr. Gaudio felt Mega Mini was as much a victim as was the City and felt the lien should be 2 Meeting Minutes Code Compliance Board Lien Reduction Boynton Beach, Florida June 21, 2010 reduced to the administrative and filing fees. As set forth earlier, it had cost Mr. Friedt approximately $7,000 in equipment purchased for the tenant, as well as the costs of demolition and permitting. In addition, the tenant had vacated the premises due to the City's error and Mega Mini had no way to recover the rent. Mr. Gaudio did not believe the lien amount was Mega Mini's responsibility. As a result of Mr. Friedt’s health issues, he relied upon the manager to run the daily operations. The manager’s interests, however, were with the tenant, rather than with Mega Mini. The manager had been let go and no one had appeared at the hearing. Attorney Mankoff did not feel it was not function of Code Compliance to penalize people, but rather to ensure compliance. He requested the lien be reduced to $1,000 for administrative fees. It was questioned how long the tenant actually used the premises. Attorney Mankoff was of the understanding the tenant never operated at the premises but was in the midst of improving the premises. The violations commenced in 2007 and were cured in 2008. It was questioned as to the number of months for which rent monies had not been received. Mr. Gaudio advised it had taken between 12 and 14 months to lease the space, and it was leased to an existing tenant who wanted to expand his business. The tenant was currently paying rent without any of the improvements which would have been used by the former tenant. Mr. Foot suggested the lien be reduced to $5,000 plus administrative costs. Motion Based on testimony and evidence presented in the aforementioned case, and having been advised that the Respondent has complied with all lien reduction procedures set forth in Section 2-84 through 2-89 of the City of Boynton Beach Code of Ordinances, Mr. Foot moved that this Board reduce the fines instituted in the aforementioned case by virtue of this Board's Order of June 20, 2007, to an amount of $5,730.15, including administrative costs. Mr. Karageorge seconded the motion. Ms. Carroll felt that it was the function of the Board to gain compliance. The business had never opened, and no one was ever at risk. The only person suffering was the owner. He had lost 14 months in rent, and expended approximately $7,000 for the equipment and demolition costs. The Respondent had been working with the City on other issues regarding the property and she felt administrative costs would be appropriate. 3 Meeting Minutes Code Compliance Board Lien Reduction Boynton Beach, Florida June 21, 2010 Mr. Karageorge concurred with Mr. Foot, adding a good deal of time and money had been expended on the issue. Vote On roll call vote, the motion failed 3-3 (Vice Chair Yerzy, Ms. Carroll and Mr. LaRock dissenting). Motion Based on testimony and evidence presented in the aforementioned case, and having been advised that the Respondent has complied with all lien reduction procedures set forth in Section 2-84 through 2-89 of the City of Boynton Beach Code of Ordinances, Mr. Karageorge moved that this Board reduce the fines instituted in the aforementioned case by virtue of this Board's Order of June 20, 2007, to an amount of $3,300 including administrative costs. Mr. LaRock seconded the motion. Vote On roll call vote, the motion passed 4-2 (Vice Chair Yerzy and Ms. Carroll dissenting). st Case #10-308 US Bank National Association TR. 3504 SE 1 St. Mr. Blasie noted the property had been originally cited January 29, 2010 for violations of Ordinance #09-040, requiring the property be registered by the Lender, secured, the pool kept in sanitary condition and the broken windows replaced. The case had been presented to the Board on March 17, 2010, and no one had appeared. The Board had established a compliance date of March 27, 2010, or a fine of $150 per day. Staff had documented compliance on June 4, 2010, for 68 days of non-compliance plus administrative costs. The Respondent had paid the $200 application fee as required by Code, as well as a past-due water bill of $221.13. A subsequent case for false alarm violations in the amount of $325 had been satisfied. These fees totaled $746.13, and with administrative costs totaled $1,380.25. The Certificate of Title to US Bank had been recorded on March 25, 2009, and the title to the property was obtained prior to the initiation of the Code Compliance case. Mr. Blasie provided photographs for the Board's review. Two were taken June 21, 2010, one of the front of the house and one of the rear. Cyndi Michie, Nautica Realty, 1200 S. Federal Highway, #307, was present on behalf of the Bank. She provided photographs of the electrical work showing the alarm had been removed and the windows repaired. 4 Meeting Minutes Code Compliance Board Lien Reduction Boynton Beach, Florida June 21, 2010 Eloise Wexler, Nautica Realty, 1200 S. Federal Highway, #307, advised the property was still vacant. They had maintained the property on behalf of the Bank since July 22, 2009. Nautica Realty had received the assignment from the bank on June 15, 2009, at which time they completed the initial occupancy status. The Bank utilized a company that performed re-keys and provided the initial services of lawn maintenance, snow removal and winterization. At present, there was no purchaser for the property. Motion Based on testimony and evidence presented in the aforementioned case, and having been advised that the Respondent has complied with all lien reduction procedures set forth in Section 2-84 through 2-89 of the City of Boynton Beach Code of Ordinances, Mr. Karageorge moved that this Board reduce the fines instituted in the aforementioned case by virtue of this Board's Order of March 17, 2010, to an amount of $634.12, which is the administrative cost. Mr. LaRock seconded the motion. Chair Costantino pointed out the violation included an unsecured swimming pool, and the Bank could have been notified of the violation. Mr. Karageorge felt that the Respondent came into compliance within 68 days of the Board's Order and had expended more than $1,300. Mr. Blasie noted the narrative indicated the pool had not been maintained in a sanitary condition. The house was unsecured because of the broken windows. Mr. Foot would not join in a nominal fine of administrative costs as that would do nothing to deter future violations of the Code. He suggested at least $1,000 plus administrative costs to show the community compliance was an issue. Chair Costantino agreed. Vote On roll call cote, the motion passed 4-2 (Chair Costantino and Mr. Foot dissenting). th Case #09-3443 Everhome Mortgage Co. 281 NE 27 Ave. Mr. Blasie noted the Respondent had originally been cited October 29, 2009 for violations to the City's Property Registration Ordinance. The case was presented to the Board on December 16, 2009, and no one had appeared. The Board had established a compliance date of December 31, 2009, or a fine of $200 per day. Staff had documented compliance on February 12, 2010, for 42 days of non-compliance plus administrative costs. A lis pendens had been filed on August 27, 2008. The mowing portion of the violation came into compliance on January 4, 2010, leaving the property registration violation remaining. The Respondent had paid the $200 application fee and a lot-mowing bill of $398.09, for a total of $598.09. Adding administrative costs of 5 Meeting Minutes Code Compliance Board Lien Reduction Boynton Beach, Florida June 21, 2010 $634.12, the total would be $1,232.21. There had been an issue, as the property had been registered twice. The Bank originally paid the registration fee on May 10, 2010, and there had been a duplicate payment. Mr. Blasie provided photographs for review. One photograph had been taken on June 21, 2010 which reflected a "for sale" sign. Eloise Wexler and Cyndi Michie, with Nautica Realty, 1200 S. Federal Highway, #307, advised they had received the notice regarding the lawn mowing and paid the invoice immediately even though it was not their listing at that time and the property had not gone through the foreclosure process. The final judgment of foreclosure was issued on January 28, 2010. The property went to auction on March 8, 2010. Ms. Wexler and Ms. Michie received the assignment on March 10, 2010 and performed an occupancy status check on the property. They learned from FP&L that no service had been provided at that location since June 29, 2009. The property had been abandoned for some time, and the City had been mowing the lawn. After paying the lawn-mowing costs, Ms. Wexler and Ms. Michie registered the property in May and it had come to their attention that the property had already been registered on February 24, 2010. Mr. Blasie confirmed the compliance date of February 12, 2010 related to the first registration date. The lien referred only to the lack of registration. Mr. Foot suggested a fine of $1,000 plus administrative costs in order for the City’s ordinance to have “teeth.” Motion Based on testimony and evidence presented in the aforementioned case, and having been advised that the Respondent has complied with all lien reduction procedures set forth in Section 2-84 through 2-89 of the City of Boynton Beach Code of Ordinances, Mr. Foot moved that this Board reduce the fines instituted in the aforementioned case by virtue of this Board's Order of December 16, 2009, to an amount of $1,634.12, including administrative costs. Chair Costantino passed the gavel to Vice Chair Yerzy and seconded the motion. Ms. Carroll pointed out Nautica Realty had attended to the violations immediately. Additionally, it was the Board’s responsibility to achieve compliance, not to punish. While the City should be compensated for the fees expended, it would be unreasonable to punish the people who had taken care of the property. Additionally, the property came into compliance before Nautica Realty had received the property. Chair Costantino countered, noting the issue before the Board was the failure to register the property in accordance with the City’s ordinance. Ms. Michie remarked in addition to the registration and application fees, Nautica Realty had paid another $368 in payment 6 Meeting Minutes Code Compliance Board Lien Reduction Boynton Beach, Florida June 21, 2010 of an invoice. Mr. Blasie advised compliance was achieved on December 30, 2009, and reiterated there had been a duplicate registration payment. Diane Springer, Code Compliance Coordinator, believed Chase Bank had originally registered the property and in the process of the matter being turned over to the vendor, several files had been entered into the City’s system. Thereafter, the files had been discovered, and Nautica Realty would be receiving a refund for the duplicate registration fee. Vote On roll call vote, the motion passed 5-1 (Ms. Carroll dissenting). As a result of remarks between two members, Attorney Tolces reminded the Board it was necessary that all comments by Board members be made into the microphone. Case #09-1539 Mary Barrett-Green & 645 SW 2ndAve. Daryl Green Mr. Blasie reported the case had originally been cited May 20, 2009 for violations to the City’s Code concerning trash, debris and outside storage. The case had been presented to the Board on July 15, 2009, and no one had appeared. The Board had established a compliance date of July 25, 2009, or a fine of $200 per day. Staff had documented compliance on June 10, 2010, for 319 days of non-compliance plus administrative costs. The Respondents had paid the $200 application fee and an outstanding water bill of $981.26, for a total of $1,181.26, and with the addition of administrative costs of $634.12, the total would be $1,815.38. The lis pendens was filed on January 8, 2008 and a final judgment was recorded on April 28, 2010. The City’s case had been initiated after the recording of the lis pendens. Mr. Blasie provided photographs taken July 13, 2009, July 25, 2009, August 17, 2009 and the morning of June 21, 2010 for the Board’s review. David Goodman, Remax Partners, 3111 N. University Drive, Coral Springs, advised the foreclosure sale took place on May 20, 2010 and the initial inspection was made on st May 21. Within a few days the Bank’s preservation company brought the property into compliance by mowing the lawn and removing the trash and has continued to maintain the property since that time. Mr. Goodman requested a lien reduction in the amount of the administrative costs. Mr. Foot noted the case impacted the community by the appearance of the property, and it had taken a long period of time to comply. He suggested a fine of $5,000 plus administrative costs to serve as a deterrent in the future. 7 Meeting Minutes Code Compliance Board Lien Reduction Boynton Beach, Florida June 21, 2010 Motion Based on testimony and evidence presented in the aforementioned case, and having been advised that the Respondent has complied with all lien reduction procedures set forth in Section 2-84 through 2-89 of the City of Boynton Beach Code of Ordinances, Mr. Karageorge moved that this Board reduce the fines instituted in the aforementioned case by virtue of this Board's Order of July 15, 2009, to an amount of $5,000, including administrative costs. Mr. LaRock seconded the motion that carried 4-2 (Vice Chair Yerzy and Ms. Carroll dissenting). th Case #09-3282 US Bank National Association 150 NE 27 Ave. Mr. Blasie reported the Respondent had originally been cited on October 12, 2009 for violations to the City’s Property Registration Ordinance. The remaining violation was the property registration. The other violations had come into compliance on November 18, 2009. The case had been originally presented to the Board on November 18, 2009, and no one had appeared. The Board had established a compliance date of December 3, 2009, or a fine of $200 per day. Staff had documented compliance on June 14, 2010, for 192 days of non-compliance plus administrative costs. The lis pendens was filed June 27, 2008. No “before” photographs were included in the file. However Mr. Blasie had taken a photograph on June 21, 2010 which he provided for the Board’s review. The agent for the Respondent was not able to identify the property as she had not seen the property, but relied on staff’s assurance with respect thereto. Sue King, Rels Title, 1591 Haley Lane, Fort Myers, noted she was the authorized agent for US Bank National Association. The Certificate of Title had been recorded April 27, 2010. The property was usually assigned to an agent within a week and in this case, the agent began working on the property immediately. The Bank had foreclosed on the property in the amount of $207,402.22 and listed it for $40,000. It was important the properties be occupied in order for the neighborhood to be stabilized. There was a potential purchaser for the property, and a contract was pending. Ms. King was in possession of supporting documents, including the final summary judgment, for the Board’s review. It was noted the Bank was currently the owner of the property, and any liens enforced were the Bank’s responsibility rather than that of the buyer. The sale would not necessarily be lost because the Bank had to pay out additional dollars. There have been previous issues with banks wanting to file the proper documentation to register property. Attorneys would appear before the Board each month, claiming they would resolve the issues. However, the same attorneys would appear before the Board at ensuing meetings. 8 Meeting Minutes Code Compliance Board Lien Reduction Boynton Beach, Florida June 21, 2010 Motion Based on testimony and evidence presented in the aforementioned case, and having been advised that the Respondent has complied with all lien reduction procedures set forth in Section 2-84 through 2-89 of the City of Boynton Beach Code of Ordinances, Mr. Karageorge moved that this Board reduce the fines instituted in the aforementioned case by virtue of this Board's Order of November 18, 2009, to an amount of $6,000, including administrative costs. Mr. Foot seconded the motion that passed 4-2 (Vice Chair Yerzy and Ms. Carroll dissenting). Mr. Foot requested to be excused at 5:06 p.m., as he would be attending a funeral. He pointed out that with his departure, five members were in attendance and a majority vote would be required for the remaining actions. st Case #07-3073 Valerie Lewis 2031 NW 1 St. Mr. Blasie pointed out the violation addresses for page 6 (Case #07-3073-Valerie Lewis) st and page 7 (Case #09-3771-Deutsche Bank National Trust Co.) were 2031 NW 1 Street. As Valerie Lewis no longer owned the property, in keeping with past practices, Mr. Blasie requested the Valerie Lewis issue be eliminated. The lien for the Lewis case totaled $42,550 and the lien for Deutsche Bank National Trust Co. totaled $22,500. Attorney Tolces advised the matters were before the Board for lien reductions and the members could take action they deemed appropriate pursuant to their authority as the Code Compliance Board. As five members were present and four votes were required to approve any lien reduction, the Respondent had the option to continue the matter until the next hearing. Don Poyner, Quantum Realty Advisors, 4400 PGA Boulevard, Ste. 900, Palm Beach Gardens, elected to proceed. Mr. Blasie reported the case had been originally cited on October 29, 2007 for violations to the City’s Community Appearance Code. It was necessary to purchase a new roof to replace the blue tarp. The case had been presented to the Board on December 19, 2007, and no one had appeared. The Board had established a compliance date of January 18, 2008, or a fine of $50 per day. Staff had documented compliance on May 19, 2010 for 851 days of non-compliance plus administrative costs. The lis pendens was recorded on June 9, 2009 and the City was named as a defendant. A final judgment of foreclosure was recorded on January 25, 2010, and the City had been named in the foreclosure action for the property. 9 Meeting Minutes Code Compliance Board Lien Reduction Boynton Beach, Florida June 21, 2010 Attorney Tolces explained if the City had been named in the foreclosure suit and the mortgage company had secured the final judgment, the City’s lien was foreclosed as to this property. This did not mean the lien was not in effect against any other property owned by the individual, as the Bank had already taken title to the property when the City commenced Case #09-3771. Mr. Blasie had in his possession the lis pendens recorded on June 9, 2009 with Deutsche Bank National Trust Co. as Trustee versus Valerie Lewis, and naming the City of Boynton Beach. Not having the file in front of him, Attorney Tolces could not say for certain that an answer had been filed, but in all likelihood, the City did file an answer in response to the complaint. Attorney Tolces reiterated the City’s lien was likely foreclosed in this matter. He suggested the matter be tabled until the next meeting, and if the lien had in fact been foreclosed, the case could be administratively dismissed. Chair Costantino inquired whether a motion would be made to continue the case until the next regularly-scheduled Board meeting. Motion Mr. Karageorge so moved. Ms. Carroll seconded the motion that passed unanimously. The next Board meeting would be held July 21, 2010. st Case #09-3771 Deutsche Bank National Trust Co. 2031 NW 1 St. Mr. Blasie reported the Respondent had originally been cited December 4, 2009 for failure to register the property, mow the overgrown yard and trim the overgrown vegetation. The case had been presented to the Board on January 20, 2010, and no one had appeared. The Board had established a compliance date of February 4, 2010, or a fine of $250 per day. Staff had documented compliance on May 6, 2010, for 90 days of non-compliance plus administrative costs. The Respondent had paid two lot- mowing special assessment liens in the amounts of $291.73 and $436.25, as well as a past-due water bill of $39.79. Mr. Blasie believed a new roof had been installed on the property. He provided a photograph taken the morning of June 21, 2010, a photo taken March 16, 2010, and two photos taken January 22, 2008. Don Poyner, Quantum Realty Advisors, 4400 PGA Boulevard, Ste. 900, Palm Beach rd Gardens, believed the foreclosure date was February 23, and the redemption had expired March 5, 2010. Shortly thereafter, he had been assigned the property for the initial occupancy check and to check the status of the property. The property had been deemed to be vacant and abandoned. Based on statements by FP&L, there had not been an active power account in the home for quite some time. The Bank had secured the property on March 19, 2010 and followed up on March 22, 2010 with bi-weekly lawn care. The Bank began bringing the property into compliance upon taking 10 Meeting Minutes Code Compliance Board Lien Reduction Boynton Beach, Florida June 21, 2010 possession and learning of the violations. In addition to the expenses for lawn care, a new roof had been installed a cost of $4,800. Other expenses paid by the Bank included the application fee, $700 for the mowing violations, $506 for past-due water bills in conjunction with the $39.79 previously mentioned, and $625 for the soffits and facias, expending close to $7,000 on the property. Mr. Poyner asked the Board to recognize that once the Bank took possession of the property, the property had been maintained, and although not yet on the market, the property was still being maintained. Mr. Blasie reiterated the property had been registered as of May 6, 2010, the date of compliance. Motion Based on testimony and evidence presented in the aforementioned case, and having been advised that the Respondent has complied with all lien reduction procedures set forth in Section 2-84 through 2-89 of the City of Boynton Beach Code of Ordinances, Mr. Karageorge moved that this Board reduce the fines instituted in the aforementioned case by virtue of this Board's Order of January 20, 2010, to an amount of $1,700, including administrative costs. There was no second to the motion. Motion Based on testimony and evidence presented in the aforementioned case, and having been advised that the Respondent has complied with all lien reduction procedures set forth in Section 2-84 through 2-89 of the City of Boynton Beach Code of Ordinances, Ms. Carroll moved that this Board reduce the fines instituted in the aforementioned case by virtue of this Board's Order of January 20, 2010, to an amount of $634.12, including administrative costs. Vice Chair Yerzy seconded the motion. The vote was 3-2 (Chair Costantino and Mr. Karageorge dissenting.) The motion failed as four affirmative votes were needed for lien reductions. Accordingly, a new motion was made. Motion Based on testimony and evidence presented in the aforementioned case, and having been advised that the Respondent has complied with all lien reduction procedures set forth in Section 2-84 through 2-89 of the City of Boynton Beach Code of Ordinances, Mr. Karageorge moved that this Board reduce the fines instituted in the aforementioned case by virtue of this Board's Order of January 20, 2010, to an amount of $1,000, including administrative costs. Ms. Carroll seconded the motion that passed unanimously. 11 Meeting Minutes Code Compliance Board Lien Reduction Boynton Beach, Florida June 21, 2010 Adjournment Motion Mr. Karageorge moved to adjourn. Ms. Carroll seconded the motion that passed unanimously. The meeting properly adjourned at 5:24 p.m. ~ Step anie D. Kahn Recording Secretary 062510 12