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Minutes 08-16-10 MINUTES OF THE CODE COMPLIANCE BOARD LIEN REDUCTION MEETING HELD ON MONDAY, AUGUST 16, 2010, AT 4:00 P.M., IN THE COMMISSION CHAMBERS, CITY HALL, BOYNTON BEACH, FLORIDA PRESENT: Michelle Costantino, Chair Scott Blasie, Code Compliance Administrator Richard Yerzy, Vice Chair Shana Bridgeman, Assistant City Attorney Robert Foot Mark Karageorge Kirk LaRock James Brake ( arrived at4:03 p.m.) ABSENT: Jamie LaTour, Vice Chair Kathleen Carroll, Alternate I. Call to Order Chair Costantino called the meeting to order at 4:01 p.m. II. Approval of Agenda Scott Blasie , Code Compliance Administrator, explained the Respondents for Case Nos: 09-3450 and 10-327 were present. Motion Vice Chair Yerzy moved to approve. Mr. LaRock seconded the motion that passed unanimously. III. Swearing in of Witnesses and Introduction This item took place later in the meeting IV. New Business A. Lien Reduction 1 Meeting Minutes Code Compliance Lien Reduction Boynton Beach, FL August 16, 2010 Michael P. Jablonsky Case #09-3450 718 SW 24th Avenue Mr. Blasie presented the case. The property was cited November 2, 2009 for violations of the Property Maintenance and Appearance Codes. There were recreational and inoperable vehicles on the property, driveway repair issues and a Business Tax Receipt for the rental was required. The owner resided out of state. The case was heard December 16, 2009. No one appeared. A compliance date and fine was established of December 31, 2009 or incur a fine of $250 per day. Compliance was documented on April 8, 2010. Two photographs were distributed to the Board. One was taken February 15, 2010 and another photograph was undated. During an inspection on April 9, 2010 refurbishments were observed. Mr. Brake arrived at 4:03 p.m. Attorney Bridgeman explained the hearing procedures and administered the oath to all who would be testifying. John Kavazanjian, Florida Premier Real Estate Broker, advised he had spoken with Mr. Jablonsky in February about the property. There were tenants at the premises that were in arrears. Information received from the bank indicated he would qualify for a short sale. The property was listed, the tenants were advised of the matter, an attorney was retained and the tenants entered into a stipulation they would pay rent going forward. This allowed them to market the property at a higher rate. The closing occurred, a Writ of Possession was obtained and the tenants had to be evicted due to ongoing problems with them. There were poisonous reptiles in the garage. The Sheriff was alerted to bring an Officer from the Fish and Wildlife Division. The tenants were an abomination. They opened the landlord’s mail and forwarded what they wanted to the landlord. The mail about the violations was not forwarded. Mr. Kavazanjian acknowledged the tenants did not care for the property. The dwelling was sold to a family who is in the process of redoing the property, and they should be upstanding residents. It was unfortunate the violations occurred while they were in the short-sale process. Once the sale was completed, work immediately started on the property. Mr. Foot indicated the Respondents did not appear for the hearing and he inquired why the fine was $250 per day. There was discussion the violations involved more than one item and any one of them would have been $100 per day on their own. The unsanitary pool had been addressed later. The Business Tax Receipt was also an issue because individuals were renting the property which was uninspected. Sharon Little, Title Agent with Clearlake Title, handling the closing was present. She had been in touch with staff. Mr. Kavazanjian explained the first bank was PNC. The second bank had an approval of the net proceeds prior to the closing, which occurred. Afterwards, they became aware of the lien. He was doubtful PNC would pay any portion of the lien. It was a title company problem. 2 Meeting Minutes Code Compliance Lien Reduction Boynton Beach, FL August 16, 2010 There was discussion since a clear title was issued to the buyer, and now there was a claim, Ms. Little would have to approach her undewriter and put in a claim. The claim would be paid, but Ms. Little would lose her viability as a title agent. There was no reason why she should be penalized. Ms. Little explained there were two months between the title search and the sale, which she admitted was her fault. The title was just updated and the recorded lien showed up after the deed was filed. The lien was filed April 2, 2010. The closing was February 22, 2010 and the deed recorded on March 9, 2010. Ms. Little explained she tried to get the new owners to correct the violations and bring the property up to Code which they had done. There was discussion the sequence of events presented a problem for the City. Ms. Little provided a copy of the recorded deed to the Board. After consultation with Legal Counsel, it was determined that the lien that was recorded was improper. Attorney Bridgeman recommended the case be dismissed. Motion Mr. Brake moved to dismiss. Mr. Karageorge seconded the motion which unanimously passed. The City agreed file the lien release. Chase Home Finance LLC Case #10-327 1124 NW 8th Court Mr. Blasie presented the case. The case was cited January 29, 2010 for violations pertaining to property registration, mowing and trimming vegetation, and removal of trash and debris. The case was heard March 17, 2010 and no one appeared. A compliance date was set for April 1, 2010 or incur a fine of $150 per day. Compliance was documented on June 14, 2010. Mr. Blasie had photographs he distributed to the Board. Mitch Granite , on behalf of Chase Bank, 2570 Hampton Bridge Road, Delray Beach was present. Mr. Blasie explained there was a delinquent water bill for the premises which the Respondent paid. The Warranty Deed had been filed, the Lis Pendens was recorded February 9, 2009 and the City’s lien was recorded June 16, 2010. Officer Lewis was in contact with the servicer for the mortgage on or about May 19, 2010. There were three photographs taken: one earlier in the day and two taken on May 18, 2010. Mr. Granite explained the mortgage company holding the title was requesting the lien reduction. The Board discussed there were about 30 days between the time the mortgage company was notified to the date of compliance. The condition of the rear of the property was extreme and there was over $900 in lot mowing fees that had to be paid. Mr. Granite requested the lien be reduced to a reasonable amount. 3 Meeting Minutes Code Compliance Lien Reduction Boynton Beach, FL August 16, 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 March 17, 2010, to an amount of $4,500, including administrative costs. Mr. Foot seconded the motion. There was discussion these cases rarely appear before the Board so early on. Chair Costantino thanked the Respondent for his efforts. Mr. Foot felt a reduction to $1,000 was more appropriate. Mr. Karageorge agreed to reduce the fine to $1,000, and had based his initial amount on the 30 day time period. It was an exceptional situation and should be treated as such. Mr. Foot agreed to the amendment. The motion passed. It was clarified the $1,000 was the total cost and it included the administrative fees. Mr. Blasie explained the appeal process to the Respondent. Bank of New York Case #09-3604 740 NW 1st Avenue Mr. Blasie requested the case be tabled. Motion Vice Chair Yerzy moved to table the case. Mr. LaRock seconded the motion that unanimously passed. There was brief discussion about the first case heard, which the lien fell between the time the search was done and the time it was recorded. The Board had been pushing a lot of cases and Mr. Blasie advised staff would develop a process to avoid these types of occurrences. There was also discussion about the status of Ralph and Rosie’s. Staff had met with Attorney Alexander who advised they filed a motion for summary judgment as a part of the foreclosure. The next step was for a hearing date to file the motion and if successful, get a judgment for the fines. Attorney Bridgeman explained the court docket was backed up several months. She had filed a motion at the end of March on a separate case and her hearing was set for the end of July. It was frustrating to some of the members that the Respondent was operating in the interim. Attorney Bridgeman explained the Board had to follow the procedures and allow the legal process to work. The case was filed in Circuit Court. Further dialogue ensued that injunctions were expensive to pursue. The current avenue was the most cost effective and judicious way to proceed. 4 Meeting Minutes Code Compliance Lien Reduction Boynton Beach, FL August 16, 2010 Officer Herring had been in contact with the State on the matter and they were reviewing Workers Compensation issues and other health department matters. Mr. Blasie explained Officer Herring had been diligent although the perception was that nothing was being done. Many residents in the neighborhood wanted to see the restaurant shut down. The legal process takes time but it was acknowledged the Board and staff made great strides with the case. v. Adjournment Motion Mr. Foot moved to adjourn. Vice Chair Yerzy seconded the motion that unanimously passed. The meeting adjourned at 4:34 p.m. QWu/u/)t[ (!JV.At~ Catherine Cherry a Recording Secretary 082610 5