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Minutes 05-22-13 MINUTES OF THE CODE COMPLIANCE LIEN REDUCTION MEETING HELD O WEDNESDAY, MAY 22, 2013, AT 6:30 P.., IN COMMISSION CHAMBERS CITY HALL, 100 E. BOYNTON BEACH BOULEVARD, BOYNTON BEACH, FLORIDA PRESENT. Michele Costantino, Chair Shana Bridgeman, Assistant City Attorney Gary Cole, Second Vice Chair Diane Springer, Code Compliance Coordinator Alan Borrelli Carol Brenner RoseMarie Yerzy ABSENT: Kathleen Carroll I. Call to Order Chair Costantino called the meeting to order at 6:29 p.m. A quorum was present. II. Approval of Agenda Diane Springer, Code Compliance Coordinator, requested Case No. 12 -1787 be tabled to the next Code meeting on June 19, 2013. Motion Ms. Yerzy moved that the aforementioned case be tabled until the Code Compliance Board meeting to be held on June 19, 2013. Vice Chair Cole seconded the motion that unanimously passed. III. Swearing in of Witnesses Attorney Bridgeman explained the hearing procedures and administered an oath to all those intending to testify. She confirmed with the applicants they were notified of the process to be followed. IV. New Business Case No. 10 -1995 Townhouse Apartments LTD 301 N Federal Hwy. Ms. Springer presented the case. The notice of violation was sent on July 8, 2010, for violations pertaining to restoring the landscaping back to the plan on file with the City and to remove the dead Palm Tree. The case was heard on September 15, Meeting Minutes Code Compliance Lien Reduction Boynton Beach, FL May 22, 2013 2010, and no one appeared. The compliance date and fine set by the Board was to comply by October 15, 2010, or a fine of $150 per day would be incurred thereafter. The violations were corrected on April 23, 2013, having 920 days of non - compliance and a fine of $138,000 accrued. The case met all the requirements for a lien reduction, and the application fee was paid. Ms. Springer was first contacted by Attorney Gary Resnick through the City Attorney's Office on February 7, 2013, and she received an email requesting information on how to obtain the original site plans from the City. He was referred to Planning and Zoning for assistance, and they responded back on April 4, 2013, explaining what needed to be done. Another email dated April 11, 2013, indicated that all but the benches were finished. The benches were ordered and on April 20, 2013, another email was received indicating the work was complete. The work was inspected and verified. The City's Arborist also emailed indicating the landscaping was brought up to Code. Gary Resnick, Esq. from the firm of Gray Robinson, 401 E. Las Olas Boulevard, Ft. Lauderdale, was present with Alberto Perez, the CVS Regional Manager. Attorney Resnick explained CVS values its relationship with the City. They have always taken steps to correct any violations when brought to their attention. In this case, the violation was sent to CVS's landlord in 2010 and CVS did not learn about the lien until January 2013. Once they learned of it, a CVS representative contacted City staff and then contacted him and they worked to correct the violations as quickly as possible. CVS spent over $46,000 to restore the landscaping. The landscaping was done in six weeks and they installed new benches. All the violations were corrected within 10 weeks. They are a good corporate partner. They pay in excess of $160,000 in property taxes to the City and employ over 100 people who participate in numerous activities, such as providing free flu shots to indigent residents and other community services. CVS was requesting the Board waive the fines and pay the administrative fees in the amount of $634.12. Chair Costantino inquired why the Board was addressing CVS and not Townhouse Apartments, Ltd. Ms. Springer learned CVS is responsible for taking care of the property, but the Board cites the property owner. Attorney Resnick explained he represents both the property owner and CVS. The property owner is not Townhouse Apartments, Ltd. It was LPG Bessamer A.L. LLC, a Texas company. Townhouse Apartments, Ltd. merged with Bermuda company in 2006, and in January of this year, Bermuda company sold the property to LPG Bessamer A.L. LLC. It was in the course of that sale the title search was done and they learned of the lien and contacted CVS. It was also thought that transaction may explain why Townhouse Apartments never notified CVS. 2 Meeting Minutes Code Compliance Lien Reduction Boynton Beach, FL May 22, 2013 In the past, when Townhouse received a notice , of violation concerning its properties, they would forward it to CVS. There were a few minor violations in 2004 and 2005 that CVS corrected, but there were no notices received from 2005 to the present. Attorney Resnick learned, through the City's file, that staff sent the notice of violation to Townhouse Apartments Ltd. at a Miami address and two individuals from Townhouse Apartments. The return receipt was only returned by Townhouse Apartments Ltd., but the information was never forwarded. Chair Costantino inquired if the company notified the Property Appraiser's Office about the change in ownership so in the event future issues arose, the County records would accurately reflect the owner. Attorney Resnick was aware the transaction only recently closed and would check with the corporate attorney. Ms. Springer stated for the record, she checked the Property Appraiser's Office. As of May 17th, it still listed Townhouse Apartments as the property owner; however, the County is four to six weeks behind in their recording. While property may have closed, it was still not recorded in the Property Appraiser's Office. Chair Costantino thought the first change in 2006 should have been reflected, but Attorney Resnick explained the corporate entity kept the property. Vice Chair Cole inquired why a Code Officer had not made contact with CVS since the fines started. Ms. Springer explained once the lien is placed on the property, staff does not have the manpower to continuously follow -up on a property that has a lien. If something else arises, they make contact. Vice Chair Cole found it hard to believe CVS had no knowledge of the matter. Ms. Springer explained the case was initiated by Officer John Herring who was no longer with the City and she had no further information. An inquiry was made whether a lien search was done in relation to the merger in 2006. Attorney Resnick explained he was not representing CVS or the property owner at that time and CVS would not have been involved in the merger. It was a matter between the landlord and the company it merged with. CVS only received notice from the new landlord to pay rent to a different address. Ms. Brenner inquired about CVS's protocol to take care of their properties, and Ms. Springer distributed photographs of the property to the Respondent and the Board. Alberto Perez, CVS Regional Manager, explained they use GroundsGroup Landscaping, who is a licensed vendor and they service their properties. In this case, there was missing or dead vegetation, which they may have removed when they cleaned up the property. Typically, if the corporate office notifies him of a violation, it is addressed right away, and they hire a vendor to ascertain what is occurring. In this case, he was not aware of the violation, but once they learned of the lien, he contacted the consultant to meet on the premises. CVS had to obtain the original landscape plans, and when they did, he found out there were several items missing. They then addressed the matter according to the plan. The landscaper may not have held to the 3 Meeting Minutes Code Compliance Lien Reduction Boynton Beach, FL May 22, 2 013 landscape plan on file, which may have caused the disconnection. Mr. Perez also noted there was a revision made to the plan and staff would find dead vegetation that did not belong there. They assured the members CVS would spend the money to meet the plan, but some of the landscaping that is currently onsite does not belong there and will die and it will be replaced with something that will survive. Chair Costantino inquired how often Mr. Perez inspects the property. Mr. Perez explained he does what he can, but he runs 1,200 stores. If something is noticed, he is contacted and the matter is addressed. Mr. Perez started with CVS in October of 2012 and started noticing many things. He pointed out there is another store nearby which already had trees replaced and mulch added. 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, Ms. Yerzy moved that this Board reduce the fines instituted in the aforementioned case by virtue of this Board's Order of September 15, 2013, to an amount of $12,634.12, including administrative costs. Vice Chair Cole seconded the motion that unanimously passed. Case No. 11 -136 Deutsche Bank Trust Co. 1019 Fairfax Circle Ms. Springer presented the case. The notice of violation was sent on January 20, 2011, for violations pertaining to registration of foreclosed properties. The case was heard on March 16, 2011, and no one appeared. The compliance date and fine set by the Board was to comply by March 26, 2011, or a fine of $100 per day would be incurred thereafter. The case complied on December 22, 2011, having 270 days of non- compliance and a fine of $27,000 accrued. Ms. Springer was first contacted in March for the lien reduction. An inspection occurred on March 4, 2013, and it was eligible for lien reduction at that point. They had no other violations on the property, and the property taxes and water bills were current. She complimented the Respondent that the property was in perfect condition when they inspected it for the lien reduction meeting. Richard Cary, representing Housevilla LLC and Kristin and Terry Burnstein, was present and explained Deutsche Bank no longer owned the property. It was bought by Housevilla LLC at a foreclosure sale on July 5, 2012, six months after the violations occurred. By that time, the property was already brought to Code by Deutsche Bank. There were several mortgages on the property. The second mortgage was first foreclosed on by Deutsche Bank, and was then foreclosed on by the senior mortgagee, another Deutsche Bank. His client was the owner who purchased the property at the 4 Meeting Minutes Code Compliance Lien Reduction Boynton Beach, FL May 22, 2013 foreclosure sale auction. At that time, there were no Code violations. The property was then transferred to Kristine and Terry Burnstein, who he also represents. They were requesting the lien reduction because at the time they took ownership, there were no violations. Discussion followed the property was purchased in 2012, and the fine started in 2011. Vice Chair Cole inquired if a lien search was done. Attorney Cary reiterated it was a foreclosure auction. Often when purchasing a foreclosure at auction in Boynton Beach, a search must be done through Conduits. If the property is not listed, which was the case when his client purchased the property, there was still some risk, and there was not enough time to do the needed research. His client has purchased several homes in Boynton Beach and has always complied. This was the first time he purchased a property and there was a Code violation. The lien did not show when the search was done under the previous owner's name. 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, Vice Chair Cole moved that this Board reduce the fines instituted in the aforementioned case by virtue of this Board's Order of March 16, 2011, to an amount of $3,634.12, including administrative costs. Mr. Borelli seconded the motion. The motion failed 2 -3 (Ms. Yerzy, Ms. Brenner and Chair Costantino dissenting.) 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, Ms. Brenner moved that this Board reduce the fines instituted in the aforementioned case by virtue of this Board's Order of March 16, 2011, to an amount of $2,000.00, including administrative costs. Ms. Yerzy seconded the motion that unanimously passed. Case No. 12 -2283 Lake Success Rentals LLC 121 SW 7th Avenue Ms. Springer presented the case. The notice of violation was sent on November 16, 2012, for violations pertaining to needing a Business Tax Receipt. The case was heard on January 16, 2013, and no one appeared. The compliance date and fine set by the Board was to correct the violations by January 26, 2013, or a fine of $300 per day would be incurred thereafter. The violations were corrected on April 10, 2013, having 73 days of non - compliance and a fine of $21,900 accrued. 5 Meeting Minutes Code Compliance Lien Reduction Boynton Beach, FL May 22, 2013 The Respondent paid the application fee for the lien reduction, and there were no outstanding water bills or taxes. Ms. Springer was contacted on May 14, 2013, for the lien reduction inspection, and the request was eligible to be heard. She noted there were some circumstances which delayed the case from being considered for the lien reduction. Leonardo Farias, 2029 Discovery Circle, E., Deerfield Beach, explained the individual who was to maintain the property prior to them did not do a great job. When he received the information he addressed the violations and maintained communication with Officer Roy. There were issues with the tenant allowing them access to correct some items, but they eventually were able to do so. They were requesting the lien be waived and he explained they have other properties in Boynton Beach they would like to upgrade. Mr. Farias works for the property owner who owned the property for about a year. The subject property was his first rental. The other properties the owner acquired were not. The property was purchased in 2012. Between June and December, they were making improvements to the home. The tenant came in around October or November. When the tenant moved in, they tried to obtain the Business Tax Receipt and that was when the violations were found. The violations were corrected and the home inspected on April 10, 2013. The home was a single - family home with one tenant. They replaced the fence and it took longer for the City to issue the permit to do so. Mr. Farias explained there is another property owned by the owner, and permits were pulled for that home. The fence was inspected the same day the home was inspected and approved for lien reduction. 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, Ms. Brenner moved that this Board reduce the fines instituted in the aforementioned case by virtue of this Board's Order of January 16, 2013, to an amount of $2,100, including administrative costs. Vice Chair Cale seconded the motion that unanimously passed. Case No. 10 -43 Countrywide Home Loans 228 SW 8th Avenue Ms. Springer presented the case. The notice of violation was sent on January 8, 2010, for violations pertaining to registration and maintenance of foreclosed property. The case was heard on February 17, 2010, and no one appeared. The compliance date and fine set by the Board was to correct the violations by February 27, 2010, or a fine of 6 Meeting Minutes Code Compliance Lien Reduction Boynton Beach, FL May 22 2 013 $250 per day would be incurred thereafter. The violations were corrected and inspected on January 28, 2013, having 1,065 days of non - compliance and a fine of $266,250 accrued. Ms. Springer was contacted in January to verify compliance and have the lien reduction inspection. The case complied on January 28, 2013. The Respondents had to replace screens on the windows, replace jalousie glass, repair wood on the shed, repair the awnings and pressure clean the decks and awnings. An outstanding water bill of $121.93 was paid, but the property was not registered. She was contacted in March for a re- inspection and all listed items were corrected; however, the Code Compliance Officer found the sprinkler pump was missing and the pool needed to be cleaned. That was addressed and it was determined the Respondent could apply for the lien reduction on May 13, 2013. Jill Gold, Esq., from the Law Offices of Tyler A. Gold, 1250 S. Pine Island Road, Plantation, representing Countrywide Home Loans was present. Attorney Gold explained the initial foreclosure case was started in 2008. They obtained title in February 2012, but they did not obtain possession of the property until December 2012 because of the Protecting Tenants at Foreclosure Act. Shortly thereafter, they obtained compliance. The lis pendens was filed May 28, 2009, and the final judgment was in July of 2009. Registration occurred after Attorney Gold spoke with Ms. Springer. The Bank focused their funds on correcting the violations, not realizing there was a property registration issue. When she applied for the lien reduction, Ms. Springer explained about the registration requirement, at which time they registered the property. The property is not under contract. There was a tenant who left the premises January 13, 2013, and the home was currently vacant. Ms. Brenner inquired about the maintenance protocol. Attorney Gold explained the original title request was made following the foreclosure and completion of the eviction was January 7, 2013, which was when they were made aware of the existing violations. The company that was retained corrected the violations. When Attorney Gold was retained and she spoke with Ms. Springer, she was told about the registration requirement. She agreed violations did fall through the cracks. She was not aware of a third party vendor that was retained until January 7, 2013, when the title search was made, following possession of the property. Third party vendors for property preservation do not start until the owner has possession. The eviction occurred on January 13, 2013. Attorney Gold explained the matter was a Protecting Tenants at Foreclosure case which meant the tenant could not be evicted because they had a bona fide lease. The first time they could enter the premises was January 7, 2013, and during that time, the tenant paid rent to a Receiver. 7 Meeting Minutes Code Compliance Lien Reduction Boynton Beach, FL May 2 2, 2013 Chair Costantino explained the Ordinances are in place for a purpose. Once the property goes into foreclosure, it needs to be registered and banks do not understand that the Board takes this seriously. Attorney Gold explained it was her first experience learning that Boynton Beach requires registration upon initiation of the lis pendens. She agreed it was of benefit to the City. Chair Costantino explained it lets the City know who is responsible for the property. The Ordinance came into affect in 2009. It was also noted Countrywide Financial was now owned by Bank of America. Ms. Springer distributed photographs to the Board. At the time the photographs were taken, which was April 20, 2010, the property was vacant and unsecured. They were taken when the initial violation took place. It was possible tenants moved in after that. There was also an outstanding water bill from the prior renter as evidence that at one time, it was occupied. Attorney Gold pointed out the Bank was interested in beautifying the community and when they were made aware of the situation, they clearly made *it a better property for the community. Chair Costantino noted the property had been a mess, and it impacted the community. 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. Borelli 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 $75,000 including administrative costs. The motion died for lack of a second. 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, Ms. 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 $65,634.12 including administrative costs. Ms. Brenner seconded the motion that unanimously passed. Attorney Gold commented the Bank has already lost hundreds of thousands of dollars on this property and the fine exceeds the value of the home. Chair Costantino suggested she take it up with the City Commission. 8 Meeting Minutes Code Compliance Lien Reduction Boynton Beach, FL May 22, 2013 Adjournment There being no further business to discuss, Ms. Yerzy moved to adjourn. Vice Chair Cole seconded the motion that unanimously passed. The meeting was adjourned at 7:16 p.m. 11 Catherine Cherry Minutes Specialist 052313 9