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11-2952 - 1660 Rnaissance Commons Blvd 2124Police Department "A CFA Accredited Law Enforcement Agency" 100 E. Boynton Beach Boulevard Boynton Beach, Florida 33425-0310 Phone: (561) 742-6100 Jeffrey Katz Chief of Police Code Compliance Division Phone: (561) 742-6120 FAX: (561) 742-6838 LIEN REDUCTION TRANSMITTAL MEMORANDUM Date: January 22, 2015 To: City Commission From: Code Compliance Division RE: Code Compliance Case #11-2952 In accordance with Ordinance number 001-07, the enclosed "Final Lien Modification Order" is hereby forwarded to you for review. As required by Ordinance number 001 -07, the following procedures are to be followed: n A City Commissioner has seven (7) days from the rendition of the Order to request the City Manager's Office to place the case on a City Commission Agenda for review. (Space provided below for transmittal purposes) o Said review must occur within thirty (30) days of the request for review. Lj Upon such review, the City Commission may take one of the following actions: a. Uphold the Code Compliance Board's recommendation in full. b. Over -rule the Board's decision in full, c. Modify the Board's Final Order, Li The City Commission shall direct staff to take action consistent with their review of the "Lien Modification Order". 1, 1 hereby request the City Manager's Office to place the above referenced case on the next available City Commission Agenda for review. Signed on this date, the day of 120 Meeting Minutes Code Compliance Special Magistrate Hearings Boynton Beach, Florida November 19, 2014 Ms, Springer did not remember when Mr. Reale contacted her. He thought he was in compliance because he applied for the Business Tax Receipt, but he had not called for the inspection. When an inspection occurred, the Business Tax Receipt was issued. She was contacted again for a lien reduction' inspection and there were some minor violations, which Ms. Springer reviewed, and a water bill of $431.03 to be paid, When the property was re -inspected October 16, 2014, it was eligible for lien reduction. Heather Grimes, for Property Manager for Mr. Reale, explained she had attended the hearing in June and she was advised they had 90 days to comply, Mr. Reale was in the process of selling the property, which sold on October 1, 2014. The new owner made all the repairs. Prior to that, she called several times for an inspection. Each time there were issues, and it took 85 days to address them. She did not know they were being charged for each inspection. Ms. Springer apprised Ms. Grimes they were not charged for the Business Tax Receipt inspection. There were four inspections involved with the entire case, Decision Given the testimony by the City and the Respondent and staff indicates the property is eligible, Ms. Ellis reduced the lien from $4,250 to $800 plus $634.12. Case No. 11-2952 American Asset Holdings LLC 1660 Renaissance Commons Blvd. 2124 Ms. Springer explained a Notice of Violation for this property was sent on October 24, 2011, for permits for interior renovations and demolition. The case was heard on January 18, 2012, and no one appeared. The compliance date and fine set was January 28, 2012, or a fine of $250 a day would be imposed thereafter. The violations were corrected on June 12, 2014, accruing a fine of $216,250 plus administrative costs. The case initiated from a red tag from the Building Department. Ms. Springer was contacted in March 2014 and was advised the matter pertained to Chinese drywall and there was litigation ongoing between Renaissance Commons and the unit owner, A Stop Work Order was issued by the Building Department so they had to wait for litigation to conclude before they could do anything. There were also outstanding property taxes, Wayne Schwartz, Counsel for Jason Banks, the property owner, explained the property was in the name of a corporation because his accountant advised him to put it in the name of a company when he was divorcing. Mr. Banks obtained the property in 2011 and then learned the unit had the toxic Chinese drywall. He made arrangements with Scott Design and Construction to do the interior demolition and remove the drywall. The complex has about 300 units. All of the members in this complex were part of a class action suit in 2009 against manufacturers of the drywall. There was companion 11 Meeting Minutes Code Compliance Special Magistrate Hearings Boynton each, Florida November 19, 2014 federal court litigation which was consolidated. Scott Design and Construction applied for and pulled a permit in the spring of 2011 to do the demolition work to comply with the Red Tag. The HOA President, Mr. Comparato, advised Mr. Banks the property was involved in litigation, and they would reach a settlement and then make repairs. Mr. Banks waited throughout 2011, but could not live in the unit and was displaced. He also learned the fumes were destroying the plumbing and electrical conduits behind the walls, and Mr. Comparato refused to do any remediation because his goal was to have a global settlement in which to make the repairs, Mr. Banks only wanted to remove the drywall by himself to avoid the matter turning into a major problem. On September 29, Mr. Banks hired two people to permanently remove the drywall, but the HOA Manager contacted Mr. Comparato. Mr. Banks advised Mr. Comparato he could no longer wait and he would remove the drywall. The next day Mr. Banks got a letter and Cease and Desist Order from HOA counsel barring him to do work in the unit because the HOA was responsible for the drywall. They threatened litigation and they would get an injunction, so Mr. Banks hired Mr. Schwartz as Counsel, Attorney Schwartz tried for five months to negotiate with HOA Counsel to come up with a successful plan to remediate the unit, including just removing the drywall with a general contractor who would pull permits. In one of the cases being litigated, they issued a protocol scope of work to satisfy removal of the toxic drywall, which they offered to follow, but were stonewalled. This culminated in a memo to all unit owners from Mr. Comparator that the HOA would not allow any remediation and if done, it would have to be completely stripped and remediated a second time. The federal case was not settled until late 2013. As to the red tag, Mr. Banks did not appreciate he had to pull a permit to correct a red tag and then withdraw the permit. Ms. Ellis inquired why no one appeared for the hearing on January 18 1h . Attorney Schwarz explained friends of Mr. Banks offered him a place to stay in Costa Rica and there was a communication gap with the mail. He did not have knowledge of the hearing. The HOA changed their position when they were notified of their settlement. From the $24 million dollar settlement Mr. Comparato received, they retained Moss Construction, The following June, they got to Mr. Banks' unit, Moss Construction pulled all of the permits to strip and remediate. There was no cash payment to individual unit owners, only the benefit of having the units remediated. To the extent of any lions imposed, there was no reimbursement for out-of-pocket expenses to unit owners. In terms of compliance, Moss Construction pulled permits, completed the work and a certificate of occupancy and environmental certification was issued. He requested the fine be reduced to administrative costs only. W Meeting Minutes Code Compliance SpeGial Magistrate Hearings Boynton Beach, Florida November 19, 2014 Ms, Ellis reduced the lien to $1,000 plus the $634.12 in administrative costs, The Minutes Specialist administered an oath to Respondents who arrived after the meeting commenced, Case No. 14-2112 Juan B. Medina Property Address: 70 NE 28th Court Violation(s): CO CHI 5 SEC 15-120(D) Inc. CO CH 10 SEC 10-5603) Install four -inch house numbers on building to be visible from the street. Mow, trim and weed yard, and remove trash and debris, Officer Roy advised the case arose from a citizen complaint. An initial inspection on September 15, 2014, revealed the above captioned violations. Written notice was sent September 15, 2014, giving 10 days to correct them. Certified mail was sent on October 13, 2014, and notice was posted at the premises and at City Hall on October 5, 2014. Regular mail was sent October 15, 2014. The property was last inspected on November 17, 2014, and the only violation that remained was installation of the house numbers. Staff recommended 10 days be given to correct the violations and a fine of $100 a day thereafter. Juan Medina advised he called the City after he mowed and addressed the issues. Ms. Ellis noted he still had to install four -inch house numbers, Ms. Ellis gave seven days to install the house numbers, by November 16, 2014, If they were not installed by then, a fine of $100 a day would be imposed thereafter. Case No. 14.2242 lglad A. Naurelus Property Address: 216 SW 5th Avenue Violation(s): CO CH13 SEC 13-16 Apply for and pass Business Tax Receipt inspection for rental property, Officer Shickles advised the case was a City department referral. The initial inspection on September 25, 2014, revealed the above noted violation. Written notice was sent giving 10 days to correct it. Notice was obtained by substitute service on Perlandi Gerome. Mr, Naurelus claims homestead at another address, and Officer Shickles advised Mr. Naurelus indicated he was not renting the property. The premises were last 13 CITY OF BOYNTON BEACH Petitioner, vs. AMERICAN ASSET HOLDINGS LLC Respondent(s). CITY OF BOYNTON BEACH, FLORIDA CASE NO, 11 -2952 LIEN MODIFICATION ORDER THIS CAUSE came before the City of Boynton Beach Code Compliance Magistrate on the Respondent's application for lien reduction on November 19 2014, pursuant to Chapter Two, Article Five oCffie City Code of Ordinances. The Magistrate having considered the application, all the facts regarding the specific code or codes the appealing party was in violation of, the date of the original Magistrate hearing, the date the affidavit of` compliance was issued, the Current lien amount and all Pertinent information relating to the specific case and being otherwise duly advised in the premises, it is hel°eUpon, ORDERED AND ADJUDGED that: L This Magistrate has subject matterjUrisdiction of this cause and jurisdiction over the Respondent. 2, The Respondent has met all the lien reduction procedures established by the City Code of Ordinances. 3. The lien imposed by the Magistrate on January 18, 2012 an the Property located at 1660 Renaissance Commons Blvd, #? Boynton Beach, Florida, with the legal description of: VILLA LAGO CONDOMINIUM UNIT 2124, according to the plat thereof as recorded in Plat Book 43 Page 139, of the Public Records of Palm Beach Courity, Florida, PCN: 08-43-45-17-18-000-2124 is REDUCED TO $1,634.12. The City shall prepare a release and satisfaction consistent with this Order. The release and satisfaction shall be recorded in the public records of Palm Beach County at the Respondent's expense. 6. This Order is not final until the time period for appeal under the Code has elapsed and if appealed is properly disposed by the City Cornmissioii. 7. In the event that the property owner does not comply with the Magistrate's order, as approved or modified by the City Commission, within ninety (90) days of` Commission's action, the Lien Reduction Order shall be of no further force or effect, and the original lien shall remain on the property. No extensions of the ninety (90) day period shall be permitted, and no further action by the Code Compliance Magistrate or the City Commission shall be permitted regarding lien reduction. DONE AND ORDERED after hearing at City of Boynton Beach, Palm Beach County, Florida this day of ATTEST: FY CLERK - '01 copies furnished-. Honorable Mayor and the City Commission City attorney City Clerk Respondent Carol D. Ellis CODE COMPLIANCE MAGISTRATE FILEE) D I EC 19 2014 CITY CLERK'S OFFICE