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Minutes 05-17-17 MINUTES OF THE CODE COMPLIANCE/LIEN REDUCTION HEARINGS HELD IN COMMISSION CHAMBERS, CITY HALL, 100 E. BOYNTON BEACH BLVD. BOYNTON BEACH, FLORIDA, ON WEDNESDAY, MAY 17, 2017, AT 9 A.M. PRESENT: Carol Dutra Ellis, Special Magistrate Vestiguerne Pierre, Community Standards Supervisor I. CALL TO ORDER Carol Ellis, Special Magistrate, called the Hearings to order at 9:00 a.m., and explained the magistrate's role and the hearing procedures. Pursuant to Florida Statute, all orders are appealable to the Circuit Court in Florida and not the City Commission. Also that a fine will be imposed if the violation(s) are not corrected by the deadline. SWEARING IN OF WITNESSES AND INTRODUCTION Ms. Ellis administered an oath to all those intending to testify. II. APPROVAL OF AGENDA Officer Hart announced that there are no changes to the Agenda. ROLL CALL ANNOUNCEMENTS Officer Pierre welcomed Officer Maggie Cruz as a new Community Standards Inspector. III. NEW BUSINESS Fine Certification Hearing Case No. 16-1013 Wells Fargo Bank NA Property Address: 415 NW 4t" Ave Type of Property: Single Family Violation(s): For Code Sections as stated Officer Hart presented the case. Case has complied. City recommends no fine. Matthew Slowik, counsel for respondent, appeared. Decision Meeting Minutes Code Special Magistrate Hearings Boynton Beach, Florida May 17, 2017 Ms. Ellis closed the case, no fine was issued. Case No. 16-1747 Darwin 3 LLC Property Address: 717 NE 10th Ave Type of Property: Single Family Violation(s): CO CH 15 SECT 15-120D(1) Remove all materials stored outside, as well as trash and debris. Officer Hart presented the case. It is a Cease & Desist Order. Notice of violation was December 12, 2016. Code compliance hearing date was February 15, 2017, and no one appeared. The Code compliance date was a Cease & Desist by February 16, 2017, or $100 per occurrence. Date of last occurrence was March 31, 2017, with one occurrence. The inspection fees were $96.03, affidavit filing $250, total $446.03. Officer Hart gave a picture of the occurrence to Ms. Ellis. Officer Hart explained the occurrence is the other side of garbage cans, which is a retention pond on City property. The mattress in question was there for over a week, being moved to various spots on property. City has been working with the property manager, who has been cooperative. Daniel Wejc, co-owner, explained no appearance at the February hearing may have been due to no notification being received at office or a misplacement of paperwork. Ms. Ellis explained that lack of appearance will usually result in the issuing of a fine or cease and desist order. Mr. Wejc agreed, stating the property now has a camera so the offenders with the trash can be identified, and a local landscape worker in the area and dumps trash collected from the area, including old tires and pieces of furniture. A permit has been pulled to create a fenced structure around garbage cans, and Officer Hart has agreed to work with Public Works and sanitation to discern ideal placement of the enclosure with either cans or a dumpster. Mr. Wejc will also consult complaining neighbors. Decision Based on testimony, Ms. Ellis certified the fine of$446.03, but temporarily suspended the Cease & Desist Order pending resolution with the different City Departments, asking that said resolutions be presented for the case file. Case No. 13-1684 Royal Residential Real Estate Property Address: 2881 SE 2nd Street Type of Property: Multiple Family (duplex) Violation(s): For Code Sections as stated Officer Pierre presented the case. Notice of violation was August 10, 2013. Code compliance hearing date was September 18, 2013, and no one appeared. The Code Page 2 Meeting Minutes Code Special Magistrate Hearings Boynton Beach, Florida May 17, 2017 compliance date was September 28, 2013, or$150 a day. Compliance date was May 16, 2017. There are 1,325 days of non-compliance at $150 a day for a total fine of $199,384.12. (Related Case 14-1383.) Cory Carano, counsel for owner, stated former property manager was receiving the notices and was fired due to issues related to violations, but notices continued going to the property manager's address. Owner is new to rental world since May 2014 when bought at foreclosure sale and ignorant of notice procedures. While ignorance is now excuse, owner only discovered it recently during a title search to sell the property and litigation against the management company, and has been diligent since learning of it. The sod has been repaired with new sprinkler system at $6,6000, and presented photos and invoices; City presented photos from 2013 and 2017 as well showing the front lawn has been re-sodded. The rental license has been cured, but owner is not currently renting out. An offer on the property is pending. Mr. Carano seeks lien reduction in light of the "non-gravity of the factors." A moment was taken to research property values: $72,400 was paid at foreclosure sale, current listing $150,000 - $160,000. Mr. Carano offered precedence in Baker v. Portsmouth. Ms. Ellis asked to look at a copy of the case, even though it was an Ohio case, deciding this hearing was not the venue for issues of a constitutional nature for this ordinance. Decision Based on testimony, Ms. Ellis reduced the lien to $5,000 plus $730.15 administrative fees. Case No. 14-1383 Royal Residential Real Estate Property Address: 2881 SE 2nd Street Type of Property: Multiple Family (duplex) Violation(s): For Code Sections as stated Officer Pierre presented the case. Notice of violation was June 10, 2014. Code compliance hearing date was August 20, 2014, and no one appeared. The Code compliance date was August 30, 2014, or $150 a day. Compliance date was May 16, 2017. There are 989 days of non-compliance at$150 a day for a total fine of$148,984.12. (Related Case 13-1684.) Cory Carano, counsel for owner, adopted the same testimony as previously stated for Case No. 13-1684. Ms. Ellis noted the date of this violation was after the purchase. Mr. Carano stated this was in the crux of changing management companies, and this violation was strictly related to landscaping. Ms. Ellis kept invoices for the case file. Decision Based on testimony, Ms. Ellis reduced the lien to $3,500 plus $730.15 administrative fees. Page 3 Meeting Minutes Code Special Magistrate Hearings Boynton Beach, Florida May 17, 2017 Case No. 16-144 LeBoeuf Investments LLC Property Address: 126 West Boynton Beach Blvd. Type of Property: Commercial Violation(s): For Code Sections as stated Officer Pierre presented the case. Notice of violation was January 14, 2016. Code compliance hearing date was February 17, 2016, and no one appeared. The Code compliance date was March 3, 2016, or$200 a day. Compliance date was May 16, 2017. There are 438 days of non-compliance at $200 a day for a total fine of$88,234.12. Susan LeBoeuf, owner, corrected the record that there is no longer an LLC, but title has been changed to Guy & Susan LeBoeuf Trust. The property was purchased in 2011. No one appeared due to communications with former tenant Diane Springer, and the Ms. LeBoeuf was not aware of having to appear while working on the correcting violations, having received a compliance letter on one of them. Licenses were received, but evidently not recorded properly. Was not aware of lien until title search for contract of sale. Contract amount on property is estimated $389,000, property was originally purchased for $202,000 with intentions of becoming a restaurant, but permits were difficult, so made it into a rental. Most of the time the property was vacant due to tenant evictions, etc. It is zoned as a business, and new owner plans to build a restaurant. Officer Pierre stated that two original violations, one of which complied, was an occupation and license for the owner and some landscaping, but the tenant never got the necessary license for the business. Ms. LeBoeuf explained three tenants had broken leases, owing rent, and what has been done to rectify the violation. Decision Based on testimony, Ms. Ellis reduced the lien to $3,000 plus $730.15 administrative fees. Case No. 16-1171 MIA Real Holding LLC Property Address: 300 NW 14th Ave Type of Property: Single Family Violation(s): For Code Sections as stated Officer Pierre presented the case. Notice of violation was July 14, 2016. Code compliance hearing date was August 24, 2016, and no one appeared. The Code compliance date was September 8, 2016, or$200 a day. Compliance date was April 19, 2017. There are 22 days of non-compliance at $200 a day for a total fine of$45,130.15. Esther Stern, office manager, appearing on behalf of property manager, stated the property was purchased in 2012. The previous tenants were paying some rent and were allowed to stay, but refused entry to the new owners. Once evicted in July 2016, it was discovered changes had been made, the kitchen moved to the back porch. Ms. Stern Page 4 Meeting Minutes Code Special Magistrate Hearings Boynton Beach, Florida May 17, 2017 believes related Case No. 16-1490, which was complied, was mixed up with this case and because of the confusion did not appear. And estimate of renovations is $25,000- $30,000 (no invoices brought). The property at all times has been a rental, is in compliance, and is not for sale. Officer Pierre had before and after pictures for Ms. Ellis, and stated there have been multiple violations on this property, some of which have complied. Noting substantial improvement on the property, Ms. Ellis required invoices be presented for the file by the end of the week. Decision Based on testimony, Ms. Ellis reduced the lien to $2,500 plus $730.15 administrative fees. Case No. 16-1371 Boynton Partners LLC Property Address: 405 SW 1St Court Type of Property: Multiple Family (condominiums) Violation(s): For Code Sections as stated Officer Pierre presented the case. Notice of violation was August 29, 2016. Code compliance hearing date was October 19, 2016, and no one appeared. The Code compliance date was November 3, 2016, or $100 a day. Compliance date was April 14, 2017. There are 161 days of non-compliance at$100 a day for a total fine of$16,830.15. Cyrus West, property manager/condo association manager, stated no notice was received to appear at the October hearing. Q Health of Palm Beach is a rehabilitation facility and tenant uses a number of the apartments to house clients, but does not do any rehabilitation on the premises. The clients are rehabilitated drug addicts. Mr.West recalls one incident two months prior for a drug overdose which required police action. Officer Pierre was unaware of any neighbor complaints. Mr. West said requests are made for police reports on the premises ever six months from the police department, and other than some automobile break-ins and one assault, there has been nothing related to drug activity. Mr. West stated that Boynton Partners owns 56 out of 92 units, when he was called in to manage the property seven years ago, 33 of those 56 units were vacant, there was drug activity, squatters, prostitution with daily police presence. There are now only two vacancies of those 56 and no more incidents of the crimes as noted. • A year ago, Habitat for Humanity started to develop houses adjacent to the property, when Mr. West was asked by the City to give an easement to Habitat, to which he agreed. • In 2010 there was an outstanding water bill due to the City for almost $250,000. While there was no responsibility to pay that bill, Mr. West negotiated with the City to repay that money, and it is currently down to $98,000. • Since assumption of property in 2010, Boynton Partners has expended in excess of $500,000 to rehabilitate the vacancies, in addition to completely rebuilding four apartments in one building which are now occupied. Page 5 Meeting Minutes Code Special Magistrate Hearings Boynton Beach, Florida May 17, 2017 • The water heater permit in question somehow fell through the cracks among over a dozen instances requiring permitting. • $60,000 has been expended this year to improve the exterior of the property (pictures provided). Mr. West stated that twelve years ago these condos sold for$220,000, five years ago the investor bought five condos for an average price of $35,000. However, the most recent sale was $83,000. Based on the photographs, Ms. Ellis noted the property does appear to be in very good condition. Decision Based on testimony, Ms. Ellis reduced the lien to $1,000 plus $730.15 administrative fees. Case No. 10-3064 Nachman Enterprises LLC Property Address: 241 NW 28th Ave Type of Property: Single Family Violation(s): For Code Sections as stated Officer Pierre presented the case. Notice of violation was October 12, 2010. Code compliance hearing date was November 17, 2010, and no one appeared. The Code compliance date was December 2, 2010, or $100 a day. Compliance date was May 16, 2017. There are 2,356 days of non-compliance at $100 a day for a total fine of $236,234.12. Bonnie Kaufmon, realtor for property, stated the property was listed in June 2016, and was sold quickly, but work has been ongoing to bring it into compliance. The contract amount is $85,000, and was purchased in 2010 for $59,000. The reason no one appeared at the 2010 hearing was due to the elderly owner having gone through five property managers and being unaware of the lien until the title search a year ago for the current sale. The property has always been rented, with current tenant there for 16 years. Section 8 rent pays $1,100 and tenant pays $200. Ms. Kaufmon stated Mr. Nachman, who is in poor health, had four properties, and this is the last one to be sold. Current property manager has been doing whatever is necessary to bring to compliance, spending about $10,000. Officer Pierre gave Ms. Ellis pictures of the property. Decision Based on testimony, Ms. Ellis reduced the lien to $4,500 plus $730.15 administrative fees. [Ms. Ellis called for a short break, and reconvened in five minutes.] Page 6 Meeting Minutes Code Special Magistrate Hearings Boynton Beach, Florida May 17, 2017 Case No. 16-1890 Yassa Emad Property Address: 1220 Meadows Circle Type of Property: Condominium Violation(s): For Code Sections as stated Officer Cain presented the case. City recommended a 15-day compliance after the printed order, or$100 day. Decision As no one appeared, Ms. Ellis ordered 15-day compliance as stated on the Board Order, or $100 a day. Officer Cain asked to remove the following cases: Page Case No. Respondent 2 17-70 IH6 Property Florida LP 3 17-303 Stor All Luxury RV 4 17-327 Stor All Luxury RV 5 17-328 Stor All Luxury RV 6 17-329 Stor All Luxury RV 7 17-399 2015 2 IH2 Borrower LP Officer Weixler asked to table the following case to June 21, 2017: Page Case No. Respondent 8 16-1571 Crossings of Boynton Beach Condo Officer Weixler asked to table the following case to July 19, 2017: Page Case No. Respondent 9 17-28 Monique Dupuis & Kroon Laurens Case No. 17-31 Boynton Village Associates LT Property Address: 1936 NE 6t" Street Type of Property- Violation(s)- For Code Sections as stated Officer Weixler presented the case. City recommended a 15-day compliance after the printed order, or$50 day. Decision As no one appeared, Ms. Ellis ordered 15-day compliance as stated on the Board Order, or $50 a day. Page 7 Meeting Minutes Code Special Magistrate Hearings Boynton Beach, Florida May 17, 2017 Officer Weixler asked to remove the following: Page Case No. Respondent 11 17-347 Alexandre & Evelyn L Accene Officer Hart stated the City recommends no fine for the following fine certifications: Page Case No. Respondent 16 16-843 Live Oak Park LLC 18 16-1506 IH4 Property Florida LP 19 16-1533 IH4 Property Florida LP 20 16-1535 IH4 Property Florida LP 21 17-37 2015 3 IH2 22 16-469 Orion Federal LLC 23 16-900 Irache Partners LLC 25 16-999 125 SE 12th Ave Prodigy Land Trust 30 16-1240 John Held LLC 31 16-1242 John Held LLC Officer Hart asked to table the following cases to June 21, 2017: Page Case No. Respondent 12 17-47 IH5 Property Florida LP 13 17-54 IH6 Property Florida LP 14 17-56 IH6 Property Florida LP 27 16-1578 Mello Hunter & W & Lewis P 28 16-1596 James M Landwerlen Officer Hart asked to table the following cases to August 16, 2017: Page Case No. Respondent 24 16-913 Katherine C Bradley & J Waters Officer Hart stated that there were no cases for fines to be certified. IV. ADJOURNMENT Ms. Ellis concluded the hearing at 10:36 p.m. Page 8 Meeting Minutes Code Special Magistrate Hearings Boynton Beach, Florida May 17, 2017 [M. Moore, Prototype Inc.] Page 9