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Minutes 04-18-11 MINUTES OF THE CODE COMPLIANCE BOARD LIEN REDUCTION MEETING HELD ON MONDAY, APRIL 18, 2011, AT 4:00 P.M. IN THE COMMISSION CHAMBERS, CITY HALL 100. E. BOYNTON BEACH BLVD, BOYNTON BEACH, FLORIDA PRESENT: Michele Costantino, Chair Richard Yerzy, Vice Chair Kathleen Carroll Robert Foot Scott Blasie, Code Compliance Administrator Shana Bridgeman, Assistant City Attorney ABSENT: Aimond Alexis Kirk LaRock I. Call to Order Chair Costantino called the meeting to order at 4:02 p.m. II. Approval of Agenda A request was made to hear Item 6, Case No. 06-305 first. There were no objections to the request. Motion Mr. Foot moved to approve the agenda. Vice Chair Yerzy seconded the motion that unanimously passed. II. Swearing in of Witnesses and Introduction Attorney Bridgeman gave an overview of the duties and responsibilities of the Code Compliance Board and its members. Mr. Blasie reviewed the appeal procedure. The Recording Secretary administered the oath to those intending to testify. There were four members of the Board in attendance. Attorney Bridgeman explained in order for the reduction to be valid, four affirmative votes were needed. The petitioners were given to opportunity to defer their cases to the next meeting; however, all cases moved forward. Mr. Blasie called the roll to determine who was present. 1 Meeting Minutes Code Compliance Lien Reductions Boynton Beach, FL April 18, 2011 III. New Business A. Lien Reduction Case No. 06-305 Boynton Townhomes LLC 3480 N. Old Dixie Hwy. Mr. Blasie reviewed the case and explained the property was cited February 10, 2006 for various violations: property maintenance, building in disrepair and unsecured. The case was heard March 15, 2006. No one appeared and a compliance date was set for March 25 or incur a $250 per day fine. Compliance was achieved June 11,2009 having 1,173 days of non-compliance plus the administrative costs. Mr. Blasie explained the property was now a vacant lot. A demolition permit was applied for and issued on April 5, 2006. A few weeks after the compliance date, the petitioner obtained the permit; however, staff did not know when the building was demolished. The Final Inspection occurred years afterwards. Staff surmised the case came up as a deadbeat file in the Development Department and documented the dwelling was demolished. Mr. Blasie provided due diligence and could not come up with any records, notes or inspection dates. He hoped the applicant could provide additional information. Photographs of the building taken prior to demolition were reviewed by the members. He noted the photographs were taken after the compliance date. Matthew Saekel, Law firm of Shutts and Bowen, 525 Okeechobee Boulevard, West Palm Beach, was present representing US Century Bank which foreclosed on the property. The Lis Pendens was filed April 1 0, 2009. The original mortgage held by US Bank was dated August 25, 2005. The lien was recorded on April 19, 2006. When the bank foreclosed on the property, someone did not notice the City's lien. There were two options to take. One option was if the City agreed to reduce the lien, the bank would make the payment to the City. The second option was to re-foreclose on the property. Mr. Foot questioned when the building was demolished. Mr. Sachel did not know, but hypothesized it was around the time of the permit. The property was on the south end of town, off Gulf Stream Boulevard near Wall Street. Mr. Blasie agreed the demolition was not done by the owner; it was done by the contractor and was probably done in a timely fashion. 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. Foot moved that this Board reduce the fine instituted in the aforementioned case by virtue of this Board's Order of March 15, 2006 to an amount of 2 Meeting Minutes Code Compliance Lien Reductions Boynton Beach, FL April 18, 2011 $4,000 including administrative costs. Vice Chair Yerzy seconded the motion. The vote was 3-1 and failed because a unanimous affirmative vote is required. (Ms. Carroll dissenting. ) 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, Ms. Carroll moved that this Board reduce the fine instituted in the aforementioned case by virtue of this Board's Order of March 15, 2006 to an amount of $2,684.12 including administrative costs. The motion died for lack of a second. 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, Vice Chair Yerzy moved that this Board reduce the fine instituted in the aforementioned case by virtue of this Board's Order of March 15, 2006 to an amount of $3,634.12 including administrative costs. Mr. Foot seconded the motion that unanimously passed. Case No. 10-1411 Wachovia Mortgage 2668 SW 23rd Cranbrook Dr. Mr. Blasie reviewed this case was also a foreclosure. The property was cited May 10, 2010 for violations pertaining to registration and cleaning the pool. It was heard November, 17,2010 and no one appeared. The compliance date set by the Board was December 2, 2010 or incur a fine of $250 per day. Compliance was documented on March 9, 2011, having 96 days of non-compliance plus administrative costs. Only the cleanliness of the pool was an issue. The registration was addressed right away. Mr. Blasie had photographs he reviewed with the Petitioner and the Board. The Lis Pendens was filed December 1,2008. An outstanding water bill was also paid. Robert Sphere, Law Office of Todd Weston 51 E. Commercial Blvd, Ft, Lauderdale, had Power of Attorney for the bank. Chair Costantino inquired why the bank took so long to restore the pool. Mr. Sphere explained they received the Certificate of Title on January 26, 2011. The pool was secured the entire time. He assumed their listing agent addressed the issue. 3 Meeting Minutes Code Compliance Lien Reductions Boynton Beach, FL April 18, 2011 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. Foot moved that this Board reduce the fine instituted in the aforementioned case by virtue of this Board's Order of November 17, 2010 to an amount of $6,000 including administrative costs. Vice Chair Yerzy seconded the motion that unanimously passed. Case No. 10-1642 Countrywide Homes Loans 623 SE 3rd Ave. Mr. Blasie reviewed the case. The property was cited June 1, 2010, for violations of the property registration ordinance and property maintenance. The property was overgrown and had trash and debris. The case was heard August 18, 2010. No one appeared. A compliance date was set for August 28, 2010 or incur a fine of $250 per day. Compliance was documented on March 9, 2011, having 192 days of non-compliance. The property registration portion of the violation complied within the prescribed time frame. The outstanding water bill of $1,339.55 was paid. The Lis Pendens filed was recorded on March 26, 2009. Mr. Blasie had a photograph taken earlier in the day as well as pictures taken August 30, 2010 which he reviewed with the Petitioner. Mr. Blasie did not know if the property was secured. Jennifer DiGirolomo, a representative of Fannie Mae with United American Properties, 1200 S. Federal Highway, Suite 307, the listing agent, took over the property on January 10, 2010 The date of the property's first service was January 10, 2010. She was unsure the date of compliance was 100% correct. When the property was obtained, they addressed the violations immediately. Mr. Foot suggested $100 per day for the maintenance and a base fine of $19,200. Mr. Blasie explained the compliance date was the date staff was contacted for the lien reduction inspection. The work could have been completed earlier. Documentation showing the cost of the work on January 10th was available. They took possession on the 6th of January. Discussion followed about the fine amount. The property was listed for approximately $68,000. 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, Vice Chair Yerzy moved that this Board reduce the fine instituted in the 4 Meeting Minutes Code Compliance Lien Reductions Boynton Beach, FL April 18, 2011 aforementioned case by virtue of this Board's Order of August 18, 2010 to an amount of $4,800 including administrative costs. Ms. Carroll seconded the motion. The vote was 3-1 and failed because a unanimous affirmative vote is required. (Mr. Foot dissenting.) 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, Vice Chair Yerzy moved that this Board reduce the fine instituted in the aforementioned case by virtue of this Board's Order of August 18, 2010 to an amount of $7,634.12 including administrative costs. Ms. Foot seconded the motion. The vote was 3-1 and failed because a unanimous affirmative vote is required. (Ms. Carroll dissenting.) Chair Costantino passed the gavel to Vice Chair Yerzy. Discussion again followed about an appropriate fine amount. 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, Chair Costantino moved that this Board reduce the fine instituted in the aforementioned case by virtue of this Board's Order of August 18, 2010 to an amount of $6,500 including administrative costs. Ms. Carroll seconded the motion that unanimously passed. Chair Costantino resumed as Chair of the meeting. Case No. 10-2800 HSBC Bank USA Nat'l Assoc. 2081 W. Woolbright Rd. #101 Mr. Blasie reviewed the case. The property was cited on September 21, 2010 for failing to register vacant foreclosed property. The case was heard on November 17, 204-1- 10. No one appeared. A compliance date of December 2, 2010 was set or incur a fine of $150 per day. Compliance was documented on February 17, 2011 for 75 days of non- compliance plus administrative costs. The Lis Pendens was recorded April 23, 2008. The property was registered on February 16, 2011. Virginia Davis, 3839 Via Poinciana, Lake Worth, was with Homeland Real Estate, a representative of Fannie Mae was the listing agent. The property was previously listed with another agency. That agency made application to register the property but never paid the fee and the registration was never addressed. When they went to register the property, they learned about the lien. Maintenance was not an issue; it was strictly a registration issue. 5 Meeting Minutes Code Compliance Lien Reductions Boynton Beach, FL April 18, 2011 Staff confirmed the property was registered on February 16, 2011. Property is not considered registered until payment is received. The property is worth about $35,000. 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, Vice Chair Yerzy moved that this Board reduce the fine instituted in the aforementioned case by virtue of this Board's Order of November 17. 2010 to an amount of $3,500 including administrative costs. Mr. Foot seconded the motion that unanimously passed. Case No. 09-1120 Southern Bell Tel & Tel Co. 221 SE 4th Street Mr. Blasie reviewed the case. The violations were cited April 15, 2009 for non-payment of annual fire inspection fees, which was $250. The case was heard on June 17,2009. A compliance date of June 27,2009 was set or incur a fine of $50 per day. Compliance was documented on March 10, 2011 having 620 days of noncompliance plus administrative costs. Ed Valdez, Jones, Langley Sow, 8601 W. Sunrise Boulevard, Plantation, was the contracted property management company. He explained in 2009 there was a buyout and a transition occurred. The former property manager handling the area was let go and the information was not sent. A clerical error sent it to the Peachtree office. Had the address been changed to the headquarters in Miami, this would not have happened. The Fire Department does not show up every year. They send invoices and when unpaid, they come before the Code Compliance Board. There were two addresses of record. Letters to the physical address here came back. The other address of record was on Peachtree Street in Georgia. Service was effectuated on the Georgia address. 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, Vice Chair Yerzy moved that this Board reduce the fine instituted in the aforementioned case by virtue of this Board's Order of June 17, 2009 to an amount of $8,096.03 including administrative costs. Ms. Carroll seconded the motion. The vote was 3-1 and failed because a unanimous affirmative vote is required. (Mr. Foot dissenting.) Discussion followed about the amount of the fine. The company was noticed and has a responsibility for safety to the community. They are aware an inspection takes place each year and they should ensure the invoice is paid. They received notice at the 6 Meeting Minutes Code Compliance Lien Reductions Boynton Beach, FL April 18, 2011 corporate office and still failed to pay it. Upon further discussion it was learned the inspections took place, it was just the payment issue. 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, Vice Chair Yerzy moved that this Board reduce the fine instituted in the aforementioned case by virtue of this Board's Order of June 17, 2009 to an amount of $6,096.03 including administrative costs. Mr. Foot seconded the motion that unanimously passed. Case No. 08-585 Daniel J. Rose 2604 NE 3rd Street Mr. Blasie reviewed the property was cited on February 21, 2008 for violations of the Community Appearance Code and needing a Business Tax Receipt. The case was heard on April 16, 2008 The date and fine established by the Board was to comply by April 26, 2008 or incur a fine of $50 per day. Compliance was documented on November 10, 2010, having 927 days of non compliance plus administrative costs. The only issue creating the fine was the Business Tax Receipt. The door violation complied within the prescribed time frame. Two outstanding water bills were also paid in order to request the lien reduction. One was for $59.03 under the name of Chin and another for $217.71 under the name of Rose. Mr. Blasie had photographs taken earlier in the day which he reviewed. Daniel Rose, 328 Atlantic Grove Way, Delray Beach explained there was a door under the carport. The compliance date for the door was March 4, 2008. Mr. Rose explained he went through a rough couple of years. He buys property and then had his identify stolen and he had a bunch of properties he did not know of. He was letting them go to foreclosure but in this case, the bank allowed a short sale and the title search found the lien. He had many tax receipts, had lost everything and was starting over. Any assistance to sell the property would be appreciated. He had considered bankruptcy but opted not to. The property was rented until foreclosed and then the tenant moved out. There were also several robberies at the premises. All the appliances were removed. The water bills showed payments of differing amounts in 2009 and 2010 reflecting the home was in use during that time. Mr. Chin stayed at the dwelling temporarily and he did not pay rent. Adrian Rose, 6156 NW 31st Court, Boca Raton, explained the tenant was there about five months ago. There was one individual there as a favor who was not paying rent. The dwelling was continuously was vandalized. Even copper wiring was stolen. Mr. Rose presented the contract for sale. 7 Meeting Minutes Code Compliance Lien Reductions Boynton Beach, FL April 18, 2011 The members discussed a fine amount of $1 ,500 including administrative costs. 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, Ms. Carroll moved that this Board reduce the fine instituted in the aforementioned case by virtue of this Board's Order April 16, 2008 of $1,500 to an amount of $1,500 including administrative costs. Vice Chair Yerzy seconded the motion that unanimously passed. Case No. 10-1601 Jerome Albanese 105 SE 4th Avenue Mr. Blasie reviewed the property was cited on May 26, 2010 for violations of the Community Appearance Code. The property needed maintenance on the exterior of the premises. The case was heard on July 21, 2010. No one appeared. The compliance date was set for July 31, 2010 or incur a fine of $250 per day. Compliance was documented on March 29, 2011. There was an outstanding water bill of over $1,992.22 which was paid. The property was in foreclosure and the Lis Pendens was recorded on November 9, 2009. Mr. Blasie had photographs he distributed to the Board. Ed Arboleda, RE/MAX Park Creek, 5481 Wyles Road, Suite 501, Coconut Creek, was the listing agent for the bank, which was Bank United/Green River Capital. Mr. Blasie reviewed photographs with the Petitioner and the Board. The bank took possession of the property on December 1, 2010, and the listing agreement was received on December 21,2010. Mr. Albanese, the Respondent, was falling behind on his properties. There was no information on whether the home was inhabited but it was definitely a rental property. Once RE/MAX obtained the property, they paid the registration fees. The property currently is for sale. The price was about $78,000 and it was then reduced to $64,000. They were addressing the violations. Then they got a buyer, but they went through four extensions. On March 31, 2011 the bank decided to kill the deal and it was anticipated it will be several more weeks to clean it up. Currently, the asset management company requested the property be reduced to $51,300 even though they had a contract for $68,000. In the meantime, the property was vandalized. The property is now in compliance, but it is situated between two other properties that look as if they are in foreclosure and he was fearful the property would be vandalized again. Mr. Arboleda requested fines be assessed from December 10, 2010 when they took over the property. Chair Costantino felt the prior owner was a repeat violator. 8 Meeting Minutes Code Compliance Lien Reductions Boynton Beach, FL April 18, 2011 Mr. Blasie acknowledged Mr. Albanese received the higher fine. Ms. Carroll inquired how much was invested in the property. Mr. Arboleda listed the expenses associated with the property. The agents layout the funds and are reimbursed with payment being received in up to 90 days. This property had the vacant registration fee of $150 fee, FPL was three or four months behind on two different units at $20 to $30 per month. There is also a $1,999 utility bill, $200 for the petition for the lien reduction, $15 for the lien search and $465 for one round of repairs. The bank paid the first round of repairs at about $1,500 or so. Mr. Foot did not understand why the other charges were listed. He did not understand why the Board should offer sympathy to individuals for charges that normally occur with owning a residence. Charges for securing the property, window replacement, landscaping, fixing a door, etc. had already transpired. Motion Based on the testimony and evidence presented in the aforementioned case I 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 fine instituted in the aforementioned case by virtue of this Board's Order of July 21, 2010 to an amount of $10,000 including administrative costs. Vice Chair Yerzy seconded the motion that unanimously passed. Adjournment Motion There being no further business to come before the Board, Ms. Carroll moved to adjourn. Mr. Foot seconded the motion that unanimously passed. The meeting adjourned at 5: 17 p.m. /" (!MJiLU}UL {})...p M1L Catherine Cherry - ff Recording Secretary 041910 9