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Minutes 03-21-11 MINUTES OF THE CODE COMPLIANCE BOARD LIEN REDUCTION MEETING HELD ON MONDAY, MARCH 21, 2011, AT 4 P.M., IN THE COMMISSION CHAMBERS, CITY HALL, BOYNTON BEACH, FLORIDA PRESENT: Michele Costantino, Chair Scott Blasie, Code Compliance Administrator Richard Yerzy, Vice Chair Shana Bridgeman, Assistant City Attorney James Brake Kathleen Carroll Robert Foot Kirk LaRock Aimond Alexis, Alternate ABSENT: Barry Ravel, Alternate I. CALL TO ORDER The meeting was called to order by Chair Costantino at 4:00 p.m. II. APPROVAL OF AGENDA There were no changes to the agenda. Motion No motion was made for approval of agenda. III. SWEARING IN OF WITNESSES AND INTRODUCTION Attorney Bridgeman explained to the Respondents present that the City of Boynton Beach Code Compliance Board is authorized by law to ensure compliance with the City Code of Ordinances. The members of the Board are citizens and residents of the City of Boynton Beach, volunteer their time and are not paid members. She further advised the Respondents that all testimony is taken under oath and evidence is presented to the Board. The cases before the Board will be called in the order of the docket. The Board first hears the cases of the people who are present. When called to the podium as a Respondent, state name, address and relationship to the property and you will have the opportunity to discuss the lien reduction requested. Meeting Minutes Code Compliance Lien Reduction Boynton Beach, Florida March 21, 2011 Scott Blasie, Code Compliance Administrator, provided an overview of the lien reduction procedure, as well as the appeal process. If requested, letters advising the Board's actions could be provided to a lender, real estate agent or title company requiring immediate information. Any questions with respect to the process could be answered by Mr. Blasie and /or Diane Springer, Code Compliance Coordinator, subsequent to the meeting. Attorney Bridgeman conducted the swearing in of the Respondents. Case #09 -3484 U.S. Bank National 1606 NE 3rd St. Association Trust Mr. Blasie presented the case and set forth the details of the violations. The case originated on November 3, 2009 for violations to the City's Ordinance, requiring the property to be registered and overgrowth of vegetation. It had been presented to the Board on February 17, 2010, and no one had appeared. A compliance date and fine had been established by the Board of March 4, 2010, or $25 per day. Staff had documented compliance on February 7, 2011, with 339 days of non - compliance, plus administrative costs. Mr. Blasie added there was an outstanding water bill that was paid, which was substantial, approximately $1,703.21. Lis Pendens on the property was recorded on May 7, 2008. He explained that on lien reductions, letters are sent to the attorney for the plaintiff in some cases. In this case, the attorney was Florida Default and they sent a standard letter to both the City and the client advising them there was no need to bother with registration ordinance. The City's legal department responded advising there is a definite need to proceed with registration. Mr. Blasie provided photographs to the Respondent and the Board. Sue King, Respondent, RELS Title, 1591 Haley Lane, Ft. Myers, authorized agent and representative for U.S. Bank National Association. Mr. Blasie reminded Chairperson Costantino that this was only for property registration. The other violations were taken care of on January 6, 2010 and are not subject to the lien. When asked if there was a contract and closing date, Ms. King responded she is not aware of one. Mr. Foot asked Mr. Blasie to confirm the Lis Pendens was filed on May 7, 2008. Bank filed a notice at that time against the owner indicating their intention to start foreclosure proceedings. The registration Ordinance states that at the filing of a Lis Pendens "if a property is vacant, it must be registered with the City of Boynton Beach ". Mr. Foot asked when the Ordinance became effective and Mr. Blasie indicated November 2009. The property was vacant. Mr. Blasie reminded the Board that Florida Default sent a letter to their client on March 31, 2010 and the City responded to their letter on April 6, 2010, advising them there was a need to register the property. There is a green card indicating the property was posted correctly. 2 Meeting Minutes Code Compliance Lien Reduction Boynton Beach, Florida March 21, 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. Yerzy moved that this Board reduce the fines instituted in the aforementioned case by virtue of this Board's Order of February 17, 2010 to an amount of $4,237 including administrative costs. No one seconded the motion. Chair Costantino asked for another motion after discussion. Mr. Foot suggested that we consider something in the range of $1,500 including administrative costs. Mr. Brake asked why $1,500. Mr. Foot indicated this is not the most serious of situations and that the City was not harmed by this delay and their registration is complete. Mr. Brake suggested possibly setting it off to the side until they have a contract and then the Board would feel more pressured to do something. Chair Costantino reminded Mr. Brake that the Respondent asked to be heard and they have paid to be heard. Her only issue was that it appears the Bank ignored the City but, she added, Mr. Yerzy made a motion and she believed it was a fair amount that he proposed. Mr. Brake indicated if Mr. Yerzy remade his motion, he would second it. Mr. Blasie interjected the Bank appeared to have complied without being prompted, with no sale pending, and no contract. Many times when suddenly there is a sale pending and there is a Code violation and no registration, it is rushed through for a lien reduction. This is not the case here. Chair Costantino reminded Mr. Blaise that the Bank was told if the order was ignored, a fine would be levied. Mr. Yerzy remade his motion. 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. Yerzy moved that this Board reduce the fines instituted in the aforementioned case by virtue of this Board's Order of February 17, 2010 to an amount of $4,237 including administrative costs. Mr. Brake seconded the motion that passed 5- 2 (Ms. Carroll and Mr. Foot dissenting). Case #07 -2655 Stuart A. Houghtaling 222 SE 4 Ave. Mr. Blasie presented the case and set forth the details of the violations. The case had originally been cited September 4, 2007 for violations to the City's Community Appearance Code and a Business Tax Receipt for rental of a residential property. The case had been presented to the Board on October 17, 2007, and no one had appeared. A compliance date and proposed fine were established by the Board on November 16, 3 Meeting Minutes Code Compliance Lien Reduction Boynton Beach, Florida March 21, 2011 2007 or $75 per day. Staff had documented compliance on February 15, 2011, having 1,186 days of non - compliance, plus administrative costs. Mr. Blasie indicated the overgrowth was remedied in time to comply with the Board's order. However, the Business Tax Receipt was not. He submitted pictures taken on October 16, 2007 and the yard looked good. Connie Williams, RE /MAX Direct, 1301 W. Boynton Beach Blvd, representative for Mr. Houghtaling and holds the listing on the property. Mr. Blasie presented pictures showing the yard. From personal conversations and from reading an email, the owner was transferred all over the country as a Motorola employee and had the property. At one point, the tenants subltted. The property was visited and there were a couple of issues that qualified for lien reduction. Ms. Williams was asked if this was the address Mr. Houghtaling receives information at and Ms. Williams did not think so. She indicated she found a notice on the front door and at that point, she contacted the owner. Within two days, everything was rectified. There was discussion with Ms. Williams as to dates of the lien and compliance. She indicated two properties were listed in owner's name — one in Boca Raton and this one. Diane Springer, Code Compliance Coordinator, was sworn in and testified the address the notice was mailed to in 2007 was to a Boca Raton address which was registered as the mailing address for this property. Owner was then transferred to Texas and although he changed his address, it was after the case began. Another case complied and everything was mailed to Georgia. Even though the owner kept his addresses up to date, in 2007 the registered mail was not forwarded from his Boca Raton address to his address in Texas. Ms. Springer indicated Mr. Houghtaling did what he was supposed to do. Mr. Blasie confirmed the overgrowth issue was rectified, the date of compliance was when staff documented the property was vacant; therefore, no business tax was applicable. Chair Costantino asked for motion. 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 fines instituted in the aforementioned case by virtue of this Board's Order of October 17, 2007 to an amount of $5,000, including administrative costs. Mr. Yerzy seconded the motion. Motion passed with a vote of 6 -1 (Ms. Carroll dissenting). 4 Meeting Minutes Code Compliance Lien Reduction Boynton Beach, Florida March 21, 2011 Case #10 -1527 Mortgage Electronic 201 NW 7th Ct. Registration Mr. Blasie presented the case and set forth the details of the violations. The case had originally been cited May 19, 2010 for violation of our Ordinance of requiring a property registration. The case was presented to the Board on July 21, 2010, and no one had appeared. A compliance date and proposed fine were established by the Board on July 31, 2010, or $150 per day. Staff had documented compliance on November 17, 2010, having 108 days of non - compliance, plus administrative costs. The lien was recorded on October 9, 2010 and a Certificate of Title was recorded July 21, 2010 and Lis Pendens was recorded in December 2008. Mr. Blasie submitted photographs and indicated the trash issue was complied with within the timeframe allowed. Mr. Blasie informed Chair Costantino that dumping of trash or "trash sharing" happens quite often and the City could have picked up what we originally cited. Todd Wilson, 6070 N. Federal Hwy, Boca Raton, listing agent for property, reminded the Board that there is quite a lag between the Bank taking over the properties and getting people out to them. This particular property went through three banks in the time period. Issues were taken care of immediately when he got involved. Whenever he goes there, people are living there, and then it is empty. There is a contract on the property and he is hopeful that will help the way it looks. Chair Costantino reiterated we are again dealing with banks that are creating the problem. Closing was originally scheduled for December 31, 2010, but there were always issues like people living there, broken windows among others. There was an extensive water bill that took the bank a long time to pay. There was discussion about expenses to keep the house secure. 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. Brake moved that this Board reduce the fines instituted in the aforementioned case by virtue of this Board's Order of July 21, 2010 to an amount of $2,000, including administrative costs. Ms. Carroll seconded the motion that passed unanimously. Case 10 -1830 Suntrust Mortgage, Inc. 629 SW 2 Ave. Mr. Blasie presented the case and set forth the details of the violations. The case had originally been cited June 17, 2010 for violations to the City's Community Appearance Code and Registration of the property. The case had been presented to the Board on 5 Meeting Minutes Code Compliance Lien Reduction Boynton Beach, Florida March 21, 2011 August 18, 2010, and no one had appeared. A compliance date and proposed fine were established by the Board on August 28, 2010, or $200 per day. Staff had documented compliance on March 3, 2011, for 186 days of non - compliance, plus administrative costs. This property was cited for Registration along with the Registration requirements for property maintenance. Photos show the property maintenance issues. Richard Raymond, 301 Clematis St., West Palm Beach, listing agent for Suntrust was present. Mr. Foot wanted clarification if maintenance was done recently or earlier. There was a question regarding the compliance date of March 3, 2011, and whether that was for maintenance and compliance or just maintenance. Mr. Blasie indicated there was not anything in the file, but indicated there must be receipts. Mr. Raymond indicated he received the listing in November and spent in excess of $12,000 to rehabilitate the property. There was an outstanding water bill of approximately $1,300. In addition, the pool had a crack in it and is in the process of being repaired. To date, the pool expenses are running approximately $4,800. Mr. Raymond indicated neighbors are always putting things in the yard and he continually goes to the property to make sure there is compliance. 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. Yerzy moved that this Board reduce the fines instituted in the aforementioned case by virtue of this Board's Order of August 18, 2010 to an amount of $4,354.12, including administrative costs. Mr. Foot interjected that this situation is more egregious than situations considered previously. He feels the property was a mess for three months before the compliance date. He does not believe we should "soften the situation" because the neighborhood suffered also. Mr. Foot suggested $18,000. Mr. Raymond advised that the court records are so far behind in the County, by the time the paperwork gets processed, there are things that happen and we are not notified immediately. Even though the bank has the mortgage, they do not have the right to the property until the Certificate of Title is recorded in the County. For example, on this property, it indicates the recording in November. The Certificate of Title was not recorded in the County to show in Property Appraiser's record until approximately seven or eight weeks later. Mr. Raymond confirmed a contract on the property of approximately $129,900. Mr. Foot reconsidered the motion and raised the amount to $10,000 including administrative costs. Motion made by Mr. Yerzy and seconded by Mr. Foot with an amount of $10,000 6 Meeting Minutes Code Compliance Lien Reduction Boynton Beach, Florida March 21, 2011 inclusive. Motion failed 3 -4 (Ms. Carroll, Mr. Brake, Mr. Alexis, Mr, LaRock dissenting). Chair Costantino asked Board to discuss the issues and try again. 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. Brake moved that this Board reduce the fines instituted in the aforementioned case by virtue of this Board's Order of August 18, 2010 to an amount of $4,500.00, including administrative costs and seconded by Mr. Larock. Motion passed 4- 3 (Mr. Foot, Mr. Yerzy, Chair Costantino dissenting). Case #10 - 662 Andre G. Garcon 407 NW 15 Ave. Mr. Blasie presented the case and set forth the details of the violations. The case had originally been cited March 8, 2010 for violations to the City's Community Appearance Code relating to the fence and a driveway in bad condition. The case had been presented to the Board on May 19, 2010, and no one had appeared. A compliance date and proposed fine was established by the Board on June 18, 2010, or $50 per day. Staff documented compliance on February 16, 2011, for 242 days of non - compliance, plus administrative costs. There was an outstanding water bill totalling $1,338.34. Mr. Blasie advised the lien reduction involved two cases for the property at 407 NW 15th Avenue. The photos were for both cases. Michael Traster, 3960 Hypoluxo Rd, Ste 100, Boynton Beach, represents the new owner, Wells Fargo, and is co- listing agent on the property. Mr. Traster indicated there was a contract with a closing date pending the lien reduction hearing. Purchase price was $35,000. There was discussion about when the property was secured. Expenses overall are in the $5,000 - $7,000, range in addition to the water bill that was paid off. Mr. Blasie indicated the driveway is an enhancement because instead of patching, or pouring asphalt, concrete was used. There was a question as to the fence repair and it was indicated that it had been removed. Chair Costantino asked for motion or further discussion. 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. LaRock moved that this Board reduce the fines instituted in the aforementioned case by virtue of this Board's Order of May 19, 2010 to an amount of 7 Meeting Minutes Code Compliance Lien Reduction Boynton Beach, Florida March 21, 2011 $4,000, including administrative costs. Mr. Foot seconded the motion after discussion. Mr. Foot suggested the Board look at it with a heavier hand. Again, this has been a detriment to the neighborhood. He feels an amount greater than $10,000 would be reasonable. Mr. Brake reminded the Board that this is being sold to an end -user and to make sure it gets to an end -user without any issues. It is a $35,000 purchase price and it may not be able to be put together if costs are too high. Mr. Alexis reminded the Board there is another case on this property and to be careful what is being done on this case. Mr. Foot indicated the $10,000 suggestion was for both cases and it could be broken up. Mr. Foot suggested putting a higher amount on the second case. It was suggested possibly $3,000 on the first and $4,000 on the second for a total of $7,000 including administrative costs. The Chair called for an amended motion. 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. LaRock moved that this Board reduce the fines instituted in the aforementioned case by virtue of this Board's Order of May 19, 2010 to an amount of $3,000, including administrative costs. Motion was passed 6 -1 (Ms. Carroll dissenting). Ms. Carroll interjected her opinion saying she feels the Board is going over on all of the cases. She feels if you have compliance, a minimal fee and administrative costs is sufficient. She wished to explain why she votes no. Case #10 -2006 U.S. Bank National 407 NW 15 Ave. Association Mr. Blasie presented the case and set forth the details of the violations. The case had originally been cited July 8, 2010 for violations to the Foreclosed Property Registration and overgrowth. The case had been presented to the Board on August 18, 2010, and no one had appeared. A compliance date and proposed fine was established by the Board of August 28, 2010, or $100 per day. Staff documented compliance on December 29, 2010 for 122 days of non - compliance, plus administrative costs. Mr. Blasie advised the hen reduction involved two cases for the property at 407 NW 15 Avenue. Chair Costantino asked Mr. Traster to reidentify himself for the record. There were no additional comments. 8 Meeting Minutes Code Compliance Lien Reduction Boynton Beach, Florida March 21, 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 August 18, 2010 to an amount of $4,000, which includes the administrative costs. Mr. Yerzy seconded the motion that passed 6 - (Ms. Carroll dissenting). There was discussion as to whether a vote was taken on the original motion on before the revised motion was carried. After discussion, Mr. LaRock withdrew his original motion. Adjournment: There being no further business to discuss, the meeting properly adjourned at 5:00 p.m. ('"( ( - 2 a,2_/-- Ellie Caruso Recording Secretary 9