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Minutes 10-18-10 MINUTES OF THE CODE COMPLIANCE BOARD LIEN REDUCTION MEETING HELD ON MONDAY, OCTOBER 18, 2010, AT 4:00 P.M., IN THE COMMISSION CHAMBERS, CITY HALL, BOYNTON BEACH, FLORIDA PRESENT: Michelle Costantino, Chair Richard Yerzy, Vice Chair James Brake Robert Foot Mark Karageorge (Arrived at 4:04 p.m.) Kirk LaRock Aimond Alexis, Alternate Kathleen Carroll, Alternate Scott Blasie, Code Compliance Administrator Shana Bridgeman, Assistant City Attorney ABSENT: Jamie LaTour, 2nd Vice Chair I. CALL TO ORDER Chair Costantino called the meeting to order at 4:01 p.m. -I II APPROVAL OF AGENDA Chair Costantino added two items, discussion of the attendance issue and the election of a 2nd Vice Chair. Motion Vice Chair Yerzy moved to accept the agenda as amended. Mr. Brake seconded the motion. The motion carried. III. SWEARING IN OF WITNESSES AND INTRODUCTION Scott Blasie, Code Administrator, explained there were three parties present and gave a short explanation of the process and procedure that would be followed. The available appeal procedures were outlined. 1 Meeting Minutes Code Compliance Board Lien Reduction Boynton Beach, FL October 18, 2010 All witnesses intending to testify were administered an oath. IV. NEW BUSINESS A. Lien Reduction Mr. Blasie advised the Respondent, Art Krell, was not present, for Cases # 96-2758,98- 1971, 00-1256 and 03-89. He had phoned and requested the hearings be held next month. Motion Mr. Brake moved to table. Ms. Carroll seconded the motion. The motion carried. Case #09-3027 Dan & Judit Janniksen 204 NW 1st Avenue Mr. Blasie noted Case #10-474 related to the same address; however, the Respondent is Flagstar Bank. Case #09-3027 was initiated September 18, 2009 for violations of mowing and trimming of overgrowth, pressure cleaning and painting the building, a single-family, residential structure. The Board entered an order on November 18, 2009 for compliance by December 18, 2009 or $250 a day fine. Compliance was documented on August 31, 2010 for 255 days of non compliance plus administrative costs. It is a foreclosure and now owned by Flagstar Bank. Mr. Brake inquired if the property was vacant on September 18, 2009. Mr. Blasie responded the mailing address, according to the Tax Collector records, indicated the owner lived at the address. Mail returned from the Post Office had a forwarding address in Colorado. Service was not accomplished at the Colorado address either. Service throughout was done by posting. The lis pendens was filed on May 15, 2008. Mr. Karageorge indicated the new registration requirement for foreclosed properties had not been enacted. This would be part of the second case. Mr. Blasie speculated it may have become vacant when the second case was commenced. Photographs were presented that had been taken of the property during the process of both cases. Ultimately Flagstar Bank had cleaned up the property and painted the structure. The photos were shown to the applicant. Norman Snyder, representing Re/Max Direct and Fannie Mae, although Flagstar Bank is the owner as of October 8, 2010, and completed all the remediation to the property before taking ownership. The foreclosure amount is $265,000 and the property is under contract for sale at $55,000. Mr. Snyder had been assigned the property in June and immediately had the bees removed and cleaned. The water bill had not been paid since 2009 and was in excess of $1,000. It had to be submitted to the Bank for approval and 2 Meeting Minutes Code Compliance Board Lien Reduction Boynton Beach, FL October 18, 2010 payment. The property was registered on August 11, 2010. The lien reduction was sought because the total lien amount was greater than the purchase price. Compliance was obtained on September 23, 2010. Mr. Snyder requested the fine be reduced to the actual fees incurred. Mr. Brake inquired if the property had been secured and advised the roof had been leaking. Mr. Snyder was unaware of the leak, but noted the price was indicative of the condition of the house. He had secured the property in June with a bolt lock on the back door and a previous installed lock remained on the front door. Mr. Karageorge sought clarification on how the two cases could be resolved. Mr. Blasie surmised the original owners had probably walked away from the property since the lis pendens was filed in 2008 and the Code violation started in September, 2009. The house had sat empty for a significant amount of time. The mail sent to the Colorado address came back unclaimed. The lien would remain with the property regardless of the owner, so the current owners would be responsible for the lien. Staff concurred with the request except for the administrative costs. The owners did act responsibly. Mr. Brake offered that the original owners were in the property in late 2008 and attempting to short sale the home. It was determined the cases had to be handled separately. Ms. Costantino pointed out one could be set at zero, but there is proof the owners were gone in 2008 and the appearance to the community had to be considered. Ms. Carroll noted the current owners did not obtain title until October 8, 2010, but had cleaned up the property prior to that time. Motion Based on the testimony and evidence presented in the aforementioned case and having been advised the Respondents have complied with all lien reductions procedures set forth in Section 2-84 through 2-89 of the City of Boynton Beach Code of Ordinances, Mr. Karageorge moved the Board reduce the fines instituted in the aforementioned case by virtue of this Board's order of November 18, 2009 to an amount of $1,000 including administrative fees. Mr. Brake seconded the motion. The motion carried. Case #10-474 Flagstar Bank 204 NW 1st Avenue Mr. Blasie reported the property had originally been cited February 18, 2010 for violation of ordinances concerning maintenance and registration of foreclosed properties. The Board heard the case on April 21, 2010 and no one appeared, resulting in a date for compliance of May 6, 2010 or $100 per day. Compliance was documented on August 31,2010 for 116 days of non compliance plus administrative costs. Norman Snyder, representing Re/Max Direct at 11924 W. Forest Hill Blvd. in Wellington, FL was present on behalf of Flagstar Bank. 3 Meeting Minutes Code Compliance Board Lien Reduction Boynton Beach, FL October 18, 2010 Motion Based on the testimony and evidence presented in the aforementioned case and having been advised 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 the Board rescind the fine instituted in the aforementioned case by virtue of this Board's order of April 21, 2010 and that the lien imposed by that order be released. Mr. Brake seconded the motion. Mr. Brake suggested a $1,000 fine be ordered and Chair Costantino agreed. Mr. Karageorge noted his intent was to get the sale closed and the home occupied to pay taxes. He would agree to rescind his motion and amend it for administrative costs. Ms. Carroll concurred with Mr. Karageorge and added that Re/Max had taken the responsibility to bring the property into compliance and found a buyer. Mr. Brake seconded the motion for administrative costs. Motion Based on the testimony and evidence presented in the aforementioned case and having been advised the Respondent has complied with all lien reductions procedures set forth in Section 2-84 through 2-89 of the City of Boynton Beach Code of Ordinances, Mr. Karageorge moved the Board reduce the fines instituted in the aforementioned case by virtue of this Board's order of April 21, 2010, to an amount of $634.12. Mr. Brake seconded the motion. The motion carried 6-1 (Ms. Carroll dissenting). Case #09-2173 Eric L Brodsky & Gustavo Benjamini 518 Meadows Circle Mr. Blasie reported the property had originally been cited July 7, 2009 for violation of the City Code requiring a Business Tax for renting. It is a condominium property. The Board heard the case on September 16, 2009 and the Respondents were present. A date for compliance was established as October 16, 2009 or $150 per day fine. Compliance was achieved on August 17, 2010 for 304 days of non compliance. Mike Traster, representing Century 21 Tennis Realty, 3960 Hypoluxo Road, worked for the selling agent representing the bank who had foreclosed on the property on May 20, 2010. The tenant was offered a cash for keys assistance program and moved out on August 15, 2010. Mr. Brake inquired how much was invested in the unit to prepare it for sale. Mr. Traster advised the unit sold "as is" so there was no monies expended. It was sold for $36,500 and the bank foreclosure price at auction was $185,881. Mr. Blasie added the lis pendens was filed in July, 2007. The final summary judgment in favor of Countrywide Home Loans was recorded March 18, 2010. Mr.Traster indicated there were 4 Meeting Minutes Code Compliance Board Lien Reduction Boynton Beach, FL October 18, 2010 outstanding water bills that were paid. The property is currently unoccupied and the sale was pending the conclusion of the lien reduction. Motion Based on testimony and evidence presented in the aforementioned case and having been advised Respondent has complied with all lien reduction procedures set forth in Section 2-84 through 2-89 of City of Boynton Beach Code of Ordinances, Mr. Brake moved that the Board reduce the fines instituted in the aforementioned case by virtue of this Board's order of October 16, 2009 to the amount of $1,500 including administrative costs. Mr. Karageorge seconded the motion. The motion carried 6-1 (Ms. Carroll dissenting). Case #08-2349 Mark F. Wells 3622 SE 1st Street Mr. Blasie pointed out there were two cases for the same property. In this case the property was cited on August 11, 2008 for violations of overgrown yard and pool maintenance. It came before the Board on September 17, 2008. The owner did not appear. The compliance date was established as September 27, 2008 or pay a $1,000 per day fine. There was compliance on May 17, 2010 for 596 days of non-compliance plus costs. The available photographs were shown to the applicant. Alyssa Gwilliam, 20533 Biscayne Blvd, Aventura, FL was from a consulting company representing the attorney, William Hirshmann. She indicated to her knowledge Mark Wells was deceased. The property is in the process of being foreclosed. Mr. Blasie reported the Certificate of Title was recorded in favor of Deutsch Bank National Trust Company, as trustee, on February 24, 2010. The final summary judgment was recorded November 24,2009. Ms. Gwilliam explained when the bank took the property they brought it into compliance paying off past water bills. It had been vacant for two years. The property did not have a sale pending at this time. Motion Based on the 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 the Board reduce the fine as instituted in the aforementioned case by virtue of this Board's order of September 17, 2008 to an amount of $30,000 including administrative costs. Mr. LaRock seconded the motion. 5 Meeting Minutes Code Compliance Board Lien Reduction Boynton Beach, FL October 18, 2010 Mr. Brake inquired how the amount was established. Mr. Karageorge explained there were multiple years and a sanitary issue that a neighborhood had to endure. Mr. Brake wanted the lis pendens date before making any determination. (The meeting was recessed at 4:40 p.m. to allow Mr. Blasie to ascertain the lis pendens date) (The meeting reconvened at 4:43 p.m.) Mr. Blasie advised there was no lis pendens on file at the County Clerk's office. Obviously Mr. Wells is deceased and he had no means to make payment, so his mortgage would be a matter for his estate. A roll call vote resulted in a 3-4 vote. Chair Costantino declared the motion had failed. Motion Based on the testimony and evidence presented in the aforementioned case and having been advised the respondents have complied with all the lien reduction procedures set forth in Section 2-84 through 2-89 in the City of Boynton Beach Code of Ordinances, Mr. Brake moved the Board reduce the fines in the aforementioned case by virtue of this Board's order of September 17, 2008 to the amount of $5,000 including administrative costs. Vice Chair Yerzy seconded the motion. The motion carried 6-1 (Ms. Carroll dissenting) . Case #07-1814 Mark F. Wells 3622 S.E. 1st Street The property was originally cited June 12, 2007 and the matter came before the Board on July 18, 2007. No one appeared and the date for compliance was set as July 27, 2007 or $25 per day with compliance documented on May 17, 2010 for 1023 days of non-compliance plus the administrative cost. Motion Based on the testimony and evidence presented in the aforementioned case and having been advised the Respondent has complied with all the lien reduction procedures set forth in Section 2-84 through 2-89 in the City of Boynton Beach Code of Ordinances, Mr. Brake moved the Board reduce the fines in the aforementioned case by virtue of this Board's order of July 17, 2007 to the amount of $1,634.12 including administrative costs. Mr. Karageorge seconded the motion. The motion carried 5-2 (Ms. Carroll and Vice Chair. Yerzy dissenting). V. DISCUSSION 6 Meeting Minutes Code Compliance Board Lien Reduction Boynton Beach, FL October 18, 2010 Chair Costantino indicated Jamie LaTour had not answered any phone calls, emails or text messages and had missed four meetings in a row. Motion Vice Chair Yerzy moved Mr. LaTour's seat be vacated. Mr. Brake seconded the motion. Chair Costantino advised she would notify the Commission the seat had been vacated. Attorney Bridgeman had been consulted regarding the absentee policy for alternate members. She reported the Statute was unclear about alternates missing consecutive meetings. The language specifically refers to "a member". The question could be submitted to the Attorney General for a written opinion to clarify the Statute. Chair Costantino pointed out the alternate only became a regular member when a regular member was not in attendance. Mr. Karageorge thought the Board could resolve the issue and did not feel the alternate should be held to the same standard as a regular member. He suggested Ms. Carroll be allowed to continue to serve as an alternate and the Board recommend to the Commission that Ms. Carroll be moved up to a regular member to fill Mr. LaTour's seat. Attorney Bridgeman cautioned a recommendation could be made, but it was ultimately the Commission's decision. Chair Costantino cautioned the Board was guided by State Statute like other Boards throughout the State. She felt the Board should contact the Attorney General's Office to clarify the issue for all Boards. A vote was taken and there was consensus to contact the Attorney General's office for an opinion on the issue. Vice Chair Yerzy moved to appoint Robert Foot as 2nd Vice Chair. Mr. LaRock nominated Mr. Brake and Ms. Carroll seconded the nomination. Chair Costantino passed the gavel to Vice Chair Yerzy and seconded the nomination of Mr. Foot. Mr. Brake agreed to the appointment of Mr. Foot as 2nd Vice Chair. A vote was taken and the motion carried. VI. ADJOURNMENT Motion The 7