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HomeMy WebLinkAbout581 - MINUTES - City Commission MINUTES DANIA BEACH CITY COMMISSION SPECIAL MEETING ABATEMENT HEARINGS JANUARY 15, 2004 1. CALL TO ORDER Mayor Anton called the meeting to order at 6:00 p.m. 2. ROLL CALL: Present: Mayor: Bob Anton Vice-Mayor: C.K. McElyea Commissioners: Robert H. Chunn, Jr. Pat Flury City Attorney: Tom Ansbro City Manager: Ivan Pato City Clerk: Charlene Johnson Absent: Commissioner: Bob Mikes (excused) A motion was made by Commissioner Chunn, seconded by Commissioner Flury, to excuse Commissioner Mikes from this meeting. The motion passed on the following 4/0 roll call vote: Commissioner Chunn-yes Vice-Mayor McElyea-yes Commissioner Flury-yes Mayor Anton-yes 3. ABATEMENT REQUESTS: 3.1 a) Request by Brian R. Mathiasen for abatement of Case #CEB99-0274, Filio#0229-03-0060. Property located at 4761 S.W. 26 Terrace. b) Request by Brian R. Mathiasen for abatement of Case #CEB01-0152, Filio#0229-03-0060. Property located at 4761 S.W. 26 Terrace. Laurence Leeds, Community Development Director, advised all petitioners that they must obtain a form from him before leaving tonight that will outline the actions by the City Commission and time limits for payment of the liens. He also reminded the petitioners that if the lien is not paid within the time frame required by the City Commission that the fine reverts back to the original amount. i MINUTES 1 JANUARY 15, 2004 ABATEMENT HEARINGS Attorney Tim Ryan, Special Counsel for Code Cases, mentioned that the two Code . cases were continued from the November 20 Abatement Hearings because Brian R. Mathiasen had lost the property for non-payment of real estate taxes. The new owner is Gold Hand Construction and they purchased the property at a Tax Sale for approximately $47,700. After paying the delinquent taxes, there are surplus funds of approximately $36,000 that the County is currently holding. The City made application to obtain those funds in partial satisfaction of the Code Enforcement liens filed against the property. One of the liens was for inoperable vehicles and the other one was for maintenance for weeds and trash, which violations were recorded prior to ownership of Gold Hand Construction. Gold Hand Construction has improved the property and they now wish to sell it. He mentioned that the Code Enforcement Board recommended to reduce the combined liens down to $68,000. Attorney Ryan advised that he has received a confirmation from the Broward County Revenue Department that the City will be paid the $36,000 surplus funds and it has now been sent to their Accounting Division. The City can expect it to take some six months to receive the funds. Attorney Ryan and staff recommended that Gold Hand Construction receive a set-off for the $36,000 that will be coming from the County leaving an approximate balance between $25,000 to $35,000 to satisfy the balance of the liens on this property. Because Mr. Mathiasen owned other properties, the City would only process satisfactions against 4761 SW 26 Terrace so as not to lose priority on recorded liens for other Mathiasen properties if the City were to choose to pursue foreclosure or tax sale matters. The property is currently tax assessed at $92,200 and Gold Hand Construction states that they have invested $47,700 to purchase and additional monies to rehabilitate the property. Attorney Harry Hipler mentioned that as requested by the City Commission on . November 20, he provided photos showing the improvements to the property and an accounting of $34,400 by Gold Hands Construction to improve the property. Attorney Hipler requested that the City Commission leave the two fines ($73,000 & $63,600) reduced down to the $68,000 as recommended by the Code Enforcement Board. He pointed out that Gold Hand Construction brought the property into compliance and that Code Enforcement is supposed accomplish compliance and the purpose is not to punish or penalize anyone. He clarified that Gold Hand purchased the tax deed on the property for approximately $48,000, of which $15,000 was taxes, leaving around $36,700 as a surplus of the funds. His client also spent $34,400 to improve the property and they would agree not to pursue any claim for the $36,000 being held with the County. Discussion followed on whether Gold Hand Construction owned other properties. Attorney Ryan mentioned that there is also a pending foreclosure proceedings on the property and that the City recently abated some lot mowing liens for Gold Hand Construction for lots in the northwest section of the City. Gold Hand Construction clarified that he purchased the properties in the northwest section by tax deed and that he only asked the City to reduce the lot mowing liens by the $100 recording fees that were acquired. Attorney Ryan clarified with the Commission that both liens amount to approximately $135,000 and that Gold Hand Construction has invested some $80,000 with the purchase, paying taxes and improvements. Commissioner Flury was of the opinion that the property is not in great shape and is a typical dumpy rental. Attorney Hipler agreed that the property is not in perfect shape, MINUTES 2 JANUARY 15, 2004 ABATEMENT HEARINGS but is currently rented and significant improvements have been made to the property. • Attorney Hipler commented on some of the improvements. Attorney Ryan was of the opinion that the property is probably worth some $120,000 and Gold Hand has $83,000 invested. He thought they could gain a $30,000 profit if they sold the property. The City might want to consider splitting half of the profit and waiving to $15,000 with a waiver of the $36,750 at the County. Attorney Hipler asked for consideration of $10,000 on the overage instead of $15,000 as suggested by Attorney Ryan. A motion was made by Vice-Mayor McElyea, seconded by Commissioner Chunn, to reduce both liens (CEB99-0274 and CE601-0152) to $15,000 to be paid within 60 days with the City receiving the $36,750 from the County and receipt of a letter from Gold Hand Construction waiving all rights to the overage from the County. The motion passed on the following 3/1 roll call vote: Commissioner Chunn-yes Vice-Mayor McElyea-yes Commissioner Flury-no Mayor Anton-yes 3.2 Request for reconsideration by George S. Green of abatement of Case #02- i 3053 for property located at 338 SW 15 Street. (Vice-Mayor McElyea) Attorney Ryan explained that there were two additional liens (CEB00-0553 & CEB 01- 0159) that were left off the agenda for this property and that additional information was just given to the City Commission. Attorney Ryan advised that the City Commission had • abated one lien to $10,000 and another one to $2400 and that they denied the third request back in 2002. Attorney Ryan estimated the amounts of the liens to be around $36,400, which were abated to $29,800. George Green advised that he had not been able to raise enough money to pay the liens and that he had tried to refinance. He thought that the property might be able to sell for $100,000 and that he is working with Foreclosure Services. Rick Masare, Foreclosure Services, explained that the property is upside down with the mortgages and the City liens and asked for consideration from the City Commission to reduce the $29,800 lien amounts. It was cleared up with Mr. Green that he sold his interest in the property to Foreclosure Services and that he was going to be living at the site for some 6 months. Mr. Masare advised that he owns 100% of the property and that it has not gone into foreclosure yet. Attorney Ryan clarified that the property has gone through a foreclosure judgment and is slated for closing February 2. Attorney Ryan explained that once the mortgage is paid, the City would be in the position to take surplus funds from whoever purchases the property. The bank will probably bid up to their judgment amount and then someone else may bid above the bank, the difference is what the City could take back in surplus funds. Mr. Masare advised that the mortgage judgment is $98,000. Discussion followed on the value of 2/2 duplexes and it was determined that the property could sell for around $150,000. A motion was made by Vice-Mayor McElyea, seconded by Commissioner Flury, to abate all three liens to $29,800 to be paid within 60 days. The motion passed on the following • 3/1 roll call vote: MINUTES 3 JANUARY 15, 2004 ABATEMENT HEARINGS Commissioner Chunn-no Vice-Mayor McElyea-yes Commissioner Flury-yes Mayor Anton-yes 3.3 Request by Angelos Varmaxidis for abatement of Case #CEB02-3820 for property located at 800 NW 8 Street. Attorney Ryan advised that the all of the violations were corrected and that the Code Enforcement Board recommended an abatement to $5,000 as there was some confusion by Mr. Varmaxidis concerning a permit for a carport canopy. Attorney Ryan clarified that there was a $500 typographical error in the backup memo as the amount is $5,000. Angelos Varmaxidis advised that he sold the house December 12, 2003, and that the title company is holding $13,800 in escrow. He requested that the City Commission reduce the liens to $5,000. A motion was made by Commissioner Flury, seconded by Vice-Mayor McElyea, to abate the lien to $5,000. The motion passed on the following 4/0 roll call vote: Commissioner Chunn-yes Vice-Mayor McElyea-yes Commissioner Flury-yes Mayor Anton-yes 3.4 Extension of time to pay #CEB00-0420 (Jovan and Radinka Solic) lien abated to $10,000 July 8, 2003. Property located at 1401 SE 2"d Avenue. • Attorney Ryan explained that there was an abandoned vehicle on the property for some time and that the fine was abated to $10,000 on July 8, 2003. Attorney Ryan mentioned that Mr. Solic was not at the July 8 meeting because he was in Chicago and Mr. Solic thought that the City was going to send a confirmation in writing to him after that meeting. Attorney Ryan advised that the City has now established a new process where people receive a form with the actions of the City Commission before they leave the abatement hearings. In addition, there was some incorrect information on the timing of payment of the lien, Attorney Ryan recommended that the City Commission discuss an extension for paying the $10,000. Jovan Solic advised that he corrected all violations and requested a rehearing of his case because he has a receipt on when he towed the car. He mentioned that in July he was in Chicago and could not attend the meeting. A motion was made by Commissioner Flury, seconded by Commissioner Chunn, to extend the time for payment of the $10,000 lien for an additional 90 days from the date of this meeting or April 15, 2004. The motion passed on the following 4/0 roll call vote: Commissioner Chunn-yes Vice-Mayor McElyea-yes Commissioner Flury-yes Mayor Anton-yes Discussion followed on whether or not to reconsider the $10,000 lien amount. City Attorney Ansbro advised that the City Commission has no obligation to rehear the case and that the petitioner seems to feel he did not get to present his case on July 8. • Attorney Ryan advised that Mr. Solic is not satisfied with the $10,000 lien and wants a full waiver. MINUTES 4 JANUARY 15, 2004 ABATEMENT HEARINGS A motion by Commissioner Chunn to rehear the case died for lack of a second. ® Commissioner Flury thought that the Code Enforcement Board heard the case extensively and that the recommendation of $10,000 lien should be upheld. The City Commission generally agreed not to rehear the case. Code Enforcement Monthly Report: Commissioner Flury mentioned that she noticed that there appears to be some 400 Code Cases pending to be heard by the Code Enforcement Board. The Code Board can only address 30 to 35 per month and it would take something like 2 to 2 1/2 years to hear these cases and there would be more accumulating over that time period. Commissioner Flury felt that the issue must be addressed as it is a major problem. City Attorney Ansbro advised that the City Commission has the power under the Code Enforcement Statute to hire a Special Master or several of them and to use them for as long as they desire. Attorney Ryan mentioned that he had suggested back in November that the City Commission consider having some of the cases already heard by Code Enforcement to be turned over to a Special Master, thereby, leaving the more complex issues at the Code Board level. Commissioner Flury thought that there is a bottleneck in the system and she wasn't sure if it exists with the Code Officers, Secretarial or Code Board levels. Laurence Leeds, Community Development Director, advised that it just takes too long to hear some of the • cases and that it can take months to get to the Code Board. Mr. Leeds advised that even if the City hires a full-time Special Master, the City must still hire more clerical staff as the paperwork demands the additional staff. Mr. Leeds thought 1 or possibly 2 secretaries would be needed. City Attorney Ansbro suggested that the cost of the staff might be covered by the amount of liens collected. Mayor Anton asked that Director Leeds evaluate the costs for a Special Master and part- time secretarial staff and to include a report on anticipated revenues that could be collected to determine whether the costs of the additional staffing could be covered. Director Leeds advised that part-time clerical staff would not work as it takes at least a year to train people to do this work based on the legal requirements. Mr. Leeds agreed to work with Attorney Ryan and bring back some information within 10 days. Commissioner Chunn mentioned that he has helped people to comply with violations before the matters ever go before the Code Enforcement Board and that he would like to entertain the idea of getting churches or members of the community to help some of these people. Attorney Ryan advised that the abatement requests at the City Commission level takes longer than the actual orders at the Code Enforcement Board and that there are legal requirements that take a long time on each case. Attorney Ryan advised that each case has to be single tracked as the board has to be brought up to speed on the specifics about each case. He thought it would be better that staff bring back an analysis on • whether it would be better to have two code boards or have a Code Board and a Special Master hearing cases simultaneously to deal with the back log to catch up. MINUTES 5 JANUARY 15, 2004 ABATEMENT HEARINGS • City Attorney Ansbro mentioned that as long as the violation is only a fine, the Code Board still has jurisdiction, however, once the fine becomes a recorded lien, the City Commission can only reduce the lien. He mentioned that Fort Lauderdale allowed people another chance before the fine was recorded as a lien to be heard before a Special Master and many cases were settled. If the City Commission doesn't like what the Special Master does, then they could fire them. Commissioner Chunn pointed out that there are many Code Enforcement Officers who are compassionate about helping some of the residents resolve their violation problems before the complaints become liens. 4. ADJOURNMENT: This meeting adjourned at 7:20 p.m. B ANT MAYOR ATTEST: MIRIAM NASSER • ACTING CITY CLERK APPROVED: February 24, 2004 MINUTES 6 JANUARY 15, 2004 ABATEMENT HEARINGS