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Minutes 03-19-12 MINUTES OF THE CODE COMPLIANCE BOARD LIEN REDUCTION MEETING HELD ON MONDAY, MARCH 19, 2012, AT 6:30 P.M. IN COMMISSION CHAMBERS, CITY HALL, 100. E. BOYNTON BEACH BLVD, BOYNTON BEACH, FLORIDA PRESENT: Michele Costantino, Chair Shana Bridgeman, Assistant City Attorney Richard Yerzy, Vice Chair Diane Springer, City Representative Robert Bucella Robert Foot RoseMarie Yerzy ABSENT: Kathleen Carroll Gary Cole I. Call to Order Chair Costantino called the meeting to order at 6:32 p.m. II. Approval of Agenda Motion Vice Chair Yerzy moved to approve the agenda. Ms. Yerzy seconded the motion that unanimously passed. III. Swearing in of Witnesses and Introduction Attorney Bridgeman reviewed the procedures and administered the oath to those intending to testify. She also confirmed four affirmative votes were needed for a motion to pass. IV. New Business A. Lien Reductions Case No. 10 -537 U.S. Bank National Assoc. 145 SE 9th Avenue Diane Springer, Code Compliance Coordinator, presented the case. The notice of violation was sent on February 24, 2010, for violations pertaining to registration of a 1 Meeting Minutes Code Lien Reduction Boynton Beach, FL March 19, 2012 foreclosed property. The case was heard on April 21, 2010, and no one appeared. The violations were to be corrected by May 6, 2010, or a fine of $100 per day would be imposed. The violations were corrected on December 18, 2010. Ms. Springer received the first email from Ms. Balsara who was given a list of items that needed to be corrected in order for the property to be eligible for the lien reduction. These violations were for: open electrical; the sprinkler system had to be repaired; a broken washer elbow drain needed to be addressed; overgrowth; trash and debris; and payment of an outstanding water bill. Diane Balsara, Nautica Realty, 1200 S. Federal Highway, Suite 307, Boynton Beach, explained a personal property eviction occurred at this location. When they obtained the property and it was re- keyed, there were personal items at the premises. She explained a personal property eviction was similar to a regular eviction, and they had to wait until that process was over. Ms. Balsara could not address when the Bank was made aware they had to register the property, but explained as soon as they became aware there was an issue, they addressed it. About $3,000 worth of repairs were made to the property and more were forthcoming that were not required by the Board. They were being done to improve the house and make it sellable. She opined the improved property may be worth about $50,000. The property was owned by Wells Fargo, and Ms. Balsara pointed out the Bank was aggressively rehabilitating properties. Nautica Realty received the property in July 2011. It took five months to correct the violations due to the personal property eviction. The Sheriffs lock -out occurred on November 15th. Ms. Balsara requested the fines be reduced to administrative costs. Discussion followed the mortgage holder was responsible for the lien and the members contemplated the fine amount. 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, Vice Chair Yerzy moved that this Board reduce the fines instituted in the aforementioned case by virtue of this Board's Order of April 21, 2010, to an amount of $3,500.00, including administrative costs. Mr. Foot seconded the motion that unanimously passed. Case No. 10 -2714 Charles Philippe 337 SW 5th Avenue Ms. Springer presented the case and stated the notice of violation was sent on September 10, 2010, for violations pertaining to needing a Business Tax Receipt and 2 Meeting Minutes Code Lien Reduction Boynton Beach, FL March 19, 2012 removing outside storage from the property. The case was heard on October 20, 2010, and no one appeared. The Respondent was ordered to correct the violations by October 30, 2010, or incur a fine of $100 per day. The violations were corrected on January 20, 2012. Darrin Simmons, Darrin Simmons Real Estate, 40 Country Lake Circle, Boynton Beach, was authorized to speak on behalf of the owner. Mr. Simmons explained he became aware of the property through a friend. The owner had a tenant who was not paying rent and had caused the trash and debris. He was able to remove the tenant and the owner was trying to sell the property. He noted the owner was upside down on the property. The title search reflected the lien. The owner could not read English and speaks very little, but the owner did acknowledge he signed for the certified letter from the City but did not know what it was. Mr. Simmons explained the letter to the owner and the owner paid Mr. Simmons to improve the property. Mr. Simmons expressed his belief the owner did not understand the property was incurring a daily fine. He did not know how long the property was rented and opined the property was an investment property, but could not say for certain. The value of the property was around $80,000. It was purchased in December 2003, and there was no indication whether the owner obtained a Business Tax Receipt. Currently, the property was vacant. Ms. Springer distributed before and after photographs to the Board. 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, Vice Chair Yerzy moved that this Board reduce the fines instituted in the aforementioned case by virtue of this Board's Order of October 20, 2010, to an amount of $11,150, including administrative costs. The motion died for lack of a second. Mr. Simmons felt the owner was directed by someone who did not have his best interests at heart. Based on his knowledge of the individual, he believed the owner got in over his head and was not aware of the requirements. The members discussed an appropriate fine amount and noted the original purchase price was $152,000. Mr. Simmons commented the owner was experiencing a financial hardship. 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, Vice Chair Yerzy moved that this Board reduce the fines instituted in the aforementioned case by virtue of this Board's Order of October 20, 2010, to an amount 3 Meeting Minutes Code Lien Reduction Boynton Beach, FL March 19, 2012 of $6,230.15, including administrative costs. Mr. Foot seconded the motion that unanimously passed. Case No. 10 -3076 Joseph & Carmelite Reache 143 NE 16th Avenue Ms. Springer presented the case. The notice of violation was sent on October 13, 2010, for violations pertaining to a driveway. The case was heard on December 15, 2010, and no one appeared. The Respondent was ordered to correct the violations before January 14, 2011, or a fine of $50 per day would be imposed. The violations were corrected on October 14, 2011. Cliff Soucy, 1115 Stoneway Lane, West Palm Beach, and Eric Smith, 5676 Pebble Brook Lane, Boynton Beach, were present. Mr. Soucy was the property manager and Mr. Smith represented Homestead Properties, the current owner. The property was bank -owned until they acquired it in mid - September. Mr. Soucy explained they became aware of the driveway violations on September 23, 2010, and corrected them by October 14, 2010. Mr. Soucy had physically visited the Code Compliance Office to request an inspection but an inspector was not available at the immediate moment and was informed an inspection would occur in a few days. The property was only in non- compliance for a few weeks. Mr. Soucy explained the property was in compliance on October 14, 2010, and they obtained an affidavit of compliance. It was his understanding that any fines accrued prior to January 1 2010, were the Bank's fines. The members reviewed photographs of the property. Ms. Springer explained as part of the lien reduction process, the Respondents had to address: trash and debris; building materials; repair the chain Zink fence and rotted wood in the carport. The property was missing screens which had to be replaced; a window permit obtained; broken glass fixed; and a missing door in the rear of the carport and missing soffit screens replaced. There were many other violations other than the original violation. The original violation was only the driveway. The property was now vacant. Mr. Soucy requested the fines be reduced to administrative costs only because their portion of the violations lasted a few weeks and the additional items were addressed. It was noted a permit was issued for the driveway and the Respondents spent $15,000 to $20,000 in repairs. They paid $31,600 for the property, which was in shambles at the time of purchase. Once the fines were addressed, the property would be offered for sale. The going rate to purchase homes in that neighborhood was about $65,000. 4 Meeting Minutes Code Lien Reduction Boynton Beach, FL March 19, 2012 Motion Based on testimony and evidence presented in the aforementioned case and having been advised that the Respondents have 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 15, 2010, to an amount of $5,000, including administrative costs. Vice Chair Yerzy seconded the motion that unanimously passed. Case No. 08 -2414 John J. & Stephanie Wiley 318 SW 14th Avenue Ms. Springer presented the case and explained there was a second case involving the same property. The notice of violation was sent on August 21, 2008, for violations pertaining to: securing and cleaning the pool; replace the screens on the patio; repair the driveway; and mow and trim overgrowth. The case was heard on October 15, 2008, and no one appeared. The Respondents were ordered to correct the violations before October 25, 2008, or incur a fine of $250 per day. Ms. Springer noted the second case was for the same violations but was against the Bank. Ms. Springer explained the pool was secured and was not part of the second case. Billy Howell, Keller Williams, 8188 Jog Road, Unit 101, Boynton Beach, was the listing agent for Bank of America. The property was a foreclosed property. Keller Williams was assigned the property in October 2010, and they did an initial occupancy check and found the property was vacant. They came back on October 26, 2010, when the Certificate of Title was filed, and changed the locks, completed the initial lawn service and secured the property. It was put up for sale, and when they went to close, found out there were two liens on the property. To -date, they spent about $15,000 in repairs to correct the violations and make the dwelling habitable. Mr. Howell explained there was a six or seven -month process to bring the driveway into compliance. After several bids, it was determined the driveway could not be repaired, it had to be replaced. The company they hired had many delays in getting the proper documentation to the City. The process had changed and there were now new requirements about getting letters from the Bank that the City required. The other items were done fairly quickly. The pool was secured right away. There were two fences for the pool. The interior fence for the pool was secure but not the outer fence. There was no safety hazard and they ensured the gate was repaired. The second notice of violation was sent January 10, 2011, and it appeared the pool was unsecured for two years. Mr. Howell explained it was possible, because it went through the foreclosure and the lien was from 2008. The Bank did not have possession until 2010. Mr. Howell agreed the lien runs with the land but the notice would have been sent to the prior owner, and they only learned about the fine through the lien search. The Bank became aware of the issue on March 21, 2011. 5 Meeting Minutes Code Lien Reduction Boynton Beach, FL March 19, 2012 On March 22, they met Officer Roy on the premises so he could show them what needed to be addressed on the property. Mr. Howell explained they could not attend the lien hearing until all the violations were corrected. Most of them were corrected except for the driveway due to the issue with the vendor and the new City procedures. Ms. Springer distributed photographs of the property taken in December 2011. Mr. Howell pointed out there was a three to four week time period when the original buyer was going to purchase the property, assume the Code violations to bring the property into compliance and do the lien reduction, but they backed out. Discussion followed about an appropriate fine amount and the pool. Mr. Howell noted when the Bank took possession of the home in October 2010, they immediately made sure there were no security issues. He did not know of the legal ramifications for the Bank to address it when the prior owner was there. The Board members noted; however, there was a hole in the wooden fence and a hole in the other fence. After discussion, a total fine of $30,000 for the two cases was agreed on. Motion Based on testimony and evidence presented in the aforementioned case, and having been advised that the Respondents have 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. Bucella moved that this Board reduce the fines instituted in the aforementioned case by virtue of this Board's Order of October 15, 2008, to an amount of $30,000, including administrative costs. Ms. Yerzy seconded the motion that unanimously passed. Case No. 10 -73 318 SW 14th Avenue Bank of America Ms. Springer presented the case. The notice of violation was sent on January 14, 2010, for violations pertaining to mowing and maintaining overgrowth, and to repair the driveway. The case was heard on February 17, 2010, and no one appeared. The Respondent was ordered to correct the violations by March 19, 2010, or incur a fine of $75 a day. The violations were corrected on March 7, 2012. Billy Howell, 8188 Jog Road, Unit 101, Keller Williams Realty was present. Motion Based on the testimony and evidence presented in the aforementioned case, and having been advised that the Respondents have complied with all lien reduction procedures set forth in Section 2 -84 through 2 -89 of the City of Boynton Beach Code of 6 Meeting Minutes Code Lien Reduction Boynton Beach, FL March 19, 2012 Ordinances, Vice Chair Yerzy move that this Board rescind the fine instituted in the aforementioned case by virtue of this Board's Order of February 17, 2010, and that the lien imposed by that Order be released. Ms. Yerzy seconded the motion that unanimously passed. Case No. 09 -3135 National Land Co., Inc. 12807 Lake Drive Ms. Springer explained this case and the next involved the same property but had different violations. The notice of violation was sent September 28, 2009, for the following violations: remove outside storage; install six -inch numbers on building; remove unpermitted signs; repair broken windows; repair or replace damaged soffit and fascia; remove barricades from all exits; remove unlicensed business from the property; remove unregistered /inoperable vehicles /trailers; and only two recreational vehicles are allowed on the site and they must be registered and have current tags. The case was heard on May 19, 2010, and no one appeared. The Respondent was ordered to correct the violations by May 29, 2010, or incur a fine of $150 per day. The violations were corrected on February 29, 2012. David Paladino, 1528 N. Lakeside Drive, Lake Worth, was present and explained the location of the property. Chair Costantino announced for the record that Mr. Paladino had contacted her and she referred him to Ms. Springer. Ms. Springer explained Attorney Bridgeman had requested the Board consider both cases at the same time and decide on a fine amount. Attorney Bridgeman would then provide additional direction to the Board. Case No. 11-272 242 National Land Co., Inc. 12807 Lake Drive Ms. Springer explained the notice of violation was sent on February 2, 2011, for violations pertaining to mowing grass and weeds and to trim the property. The case was heard on August 17, 2011, and no one appeared. The Respondent was ordered to correct the violations before August 27, 2011, or incur a fine of $150 a day. The violations were corrected on December 14, 2011. David Paladino, 1528 N. Lakeside Drive, Lake Worth was present. Ms. Springer distributed photographs to the Board. Ms. Mr. Paladino explained he purchased the property in 2004 from B.E. Aerospace. He voluntarily annexed the property into Boynton Beach and changed the zoning in 2006 to residential. The annexation agreement did not address him continuing to use a commercial building for commercial purposes until he demolished the building to build homes, which did not occur. The City then allowed a legal, non - conforming status if certain items were addressed, one of which was the tenant had to apply for the business license When the tenant applied, the City advised they could not process the request because the property was in non - compliance 7 Meeting Minutes Code Lien Reduction Boynton Beach, FL March 19, 2012 Mr. Paladino explained the problem was he did not get permission in writing in the annexation agreement to use the property as commercial /industrial. The Fire Department treats the property as a commercial property and would not allow him to disconnect the fire /sprinkler system. The Solid Waste Authority still taxes the property as commercial property. Nonetheless, the violations were corrected. He explained at a prior meeting with Wayne Bergman, Kurt Bressner, Quintus Greene, Mike Rumpf, Scott Blasie and Jim Cherof, he was advised the property could continue to be used for light industrial including an exporting business, but there were conditions. Ms. Springer clarified the property is currently zoned residential. The agreement stipulated that if he cleaned up the property by January 2010, the City would allow him a restricted commercial use on the property. There was one grandfathered business on site when the zoning changed from commercial to residential, which the City allowed him to keep. That business left so he had to meet the criteria in order for him to continue to have businesses on the property. Mr. Paladino expressed he would contact the Zoning Department to revisit the matter. If they determined the property could not be used for a commercial use while he was waiting for the market to turn around, he may demolish the building as it did not make sense to pay taxes on a building they could not use. 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. Bucella moved that this Board reduce the fine instituted in the aforementioned case by virtue of this Board's Order of May 19, 2010, to an amount of $15,000 including administrative costs. Mr. Bucella explained the fine only pertained to this case and it included administrative costs, He would seek to rescind the fine on the second case. 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, Mr. Foot moved that this Board reduce the fine instituted in the aforementioned case by virtue of this Board's Order of May 19, 2010, to an amount of $25,000 including administrative costs. Chair Costantino passed the gavel to Vice Chair Yerzy and seconded the motion which failed 2 -3 (Vice Chair Yerzy, Ms. Yerzy, and Mr. Bucella dissenting.) Vice Chair Yerzy returned the gavel to the Chair. 8 Meeting Minutes Code Lien Reduction Boynton Beach, FL March 19, 2012 Vice Chair Yerzy returned the gavel to the Chair. 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 May 19, 2010, to an amount of $20,000 including administrative costs. Ms. Yerzy and Mr. Bucella seconded the motion that unanimously passed. The following motion pertained to the second case (Case No. 11 -272 242.) Mr. Paladino explained the case was a set of unfortunate circumstances and appreciated the Board making the fine as low as possible. 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 move that this Board rescind the fine instituted in the aforementioned case by virtue of this Board's Order of August 17, 2011, and that the lien imposed by that Order be released. Ms. Yerzy seconded the motion that unanimously passed. Attorney Bridgeman requested the Board amend the prior motions to include a stipulation that the lien would only be reduced /rescinded subject to payment of full outstanding taxes owed to the City of Boynton Beach on these two properties. Motion Vice Chair Yerzy moved to reopen his motion having to do with Case No. 09 -3135. Ms. Yerzy and Mr. Bucella agreed to reopen and the motion unanimously passed. 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 May 19, 2010, to an amount of $20,000 including administrative costs as well as requiring the property owner to pay to 9 Meeting Minutes Code Lien Reduction Boynton Beach, FL March 19, 2012 the City of Boynton Beach any outstanding taxes owed prior to the lien being reduced. Ms. Yerzy seconded the motion. The motion unanimously passed. Motion Vice Chair Yerzy moved to amend his motion having to do with Case No. 11 -2772 242. Ms. Yerzy agreed to the amendment. The motion unanimously passed. 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 rescind the fine instituted in Case No. 11 -272 242 by virtue of this Board's Order of August 17, 2011, and that the lien imposed by that Order be released with the stipulation that all outstanding taxes due to the City from the property owner be paid in full prior to the rescission of fine. Ms. Yerzy seconded the motion. Vote It was noted that the City was in agreement with this stipulation. The motion unanimously passed. Case No. 08 -1982 Raynold D & Muracia Simeus 3105 Ocean Parkway Attorney Bridgeman administered the oath to the Respondent present. Ms. Springer presented the case. The notice of violation was sent on July 10, 2008, for violations pertaining to removing graffiti from the driveway, mow the yard, and remove trash and debris. The case was heard on August 20, 2008, and no one appeared. The Respondent was ordered to correct the violations by August 30, 2008, or incur a fine of $100 per day. The violations were corrected on May 11, 2011 An outstanding water bill and municipal liens were paid in full. On May 24, 2011, the Respondents were given a list of repairs to be done in order to apply for Lien Reduction. It took the Respondents until December 15, 2011, to come before the Board as the list of repairs was extensive. It included fixing the rotted fascia and the sliding door window; replacing the soffit screens; repairing broken windows; and removing trash, debris and tires. There was open electrical; an unsafe meter can; overgrown grass, hedges and weeds; sodding yard areas; replacing the mailbox; and repairing the sprinkler system. The only item addressed quickly was they boarded up the structure almost immediately. Fabiola Ruth, 3939 NE 5th Avenue, D -104, Boca Raton, the leasing agent representing the Bank was present. The property was foreclosed. The Bank took over the property in 10 Meeting Minutes Code Lien Reduction Boynton Beach, FL March 19, 2012 Ms. Springer distributed photographs to the Board. The home was under contract and an investor was purchasing the property. The home needed a kitchen, flooring, and a lot of repair. Although the Bank made a several repairs, more repairs were needed. Chair Costantino commented the condition of the home had a horrible impact on the neighborhood. 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 20, 2008, to an amount of $20,000 including administrative costs. Mr. Foot seconded the motion that unanimously passed. Case No. 10 -586 Deutsche Bank National Trust 3105 Ocean Parkway Ms. Springer presented the case. The notice of violation was sent on March 2, 2010, for violations pertaining to registration of foreclosed property and to secure the dwelling. The case was heard on April 21, 2010, and Attorney James Karrat appeared. The Respondent was ordered to correct the violations by May 6, 2010, or incur a fine of $100 a day. The violations were corrected on May 11, 2011. Fabiola Ruth, 3939 NE 5th Avenue, D -104, Boca Raton, had no further comments. 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 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. Ms. Yerzy seconded the motion that unanimously passed. Case No. 10 -2994 U.S. National Association Tr. 1199 SW 25th Avenue Motion Ms Yerzy moved to table Case No. 10 -2994 to the next Lien Reduction meeting. Mr. Bucella seconded the motion that unanimously passed. 11 Meeting Minutes Code Lien Reduction Boynton Beach, FL March 19, 2012 V. Adjournment Motion Vice Chair Yerzy moved to adjourn. Ms. Yerzy seconded the motion that unanimously passed. The meeting was adjourned at 8:19 p.m jI Catherine Cherry J Recording Secretary 032012 12