Fort Walton Beach Council agenda — 05-25-2010 Regular — reading text

SIGNATURE DATE NOTE: Application effective for ONE YEAR from date of submission. If you have any questions on the above, please call the City Clerk, Helen Spencer, at 833 -9509 or the City Hall TDD # 833 -9925 INFORMATION BELOW FOR USE ONLY BY THE CITY Appointed to: Date of original appointment: Length of Term: Date( s) re- appointed: 68-  CITY COUNCIL MEETING May 25, 2010 Discussion - Direction - Action Action Settlement of Code Enforcement Case Synopsis: Release of liens on properties at 205 and 207 Florida Place SE. Agenda Item Number: 14. 1  CITY OF FORT WALTON BEACH MEMORANDUM To: Robert T. Mearns, City Manager From: Timothy Bolduc, Building Official Through: Michael D. Beedie, P. E., Engineering & Utility Services Director Date: May 13, 2010 Subject: Settlement Agreement for Liens on Code Enforcement Fines at 205 & 207 Florida Place SE ( Code Enforcement Case Nos. 05 -1052, 06 -395, & 07 -1142) 1. BACKGROUND: 1. 1 From 2005 through 2008, there have been not less than three code enforcement cases on two properties in the City of Fort Walton Beach, 205 and 207 Florida Place SE. The current property owners of these properties are Mr. Ladon Dewrell for 207 Florida Place SE and Vanguard Bank and Trust for 205 Florida Place SE. 1. 1. 1 The first case ( Code Enforcement Case No. 05 -1052) found the property at 207 Florida Place SE in violation for nuisance on September 29, 2005. The violation included grass height, maintenance, and an unsafe building condition. The structure was partially demolished with exposed electrical, plumbing, and structural elements. 1. 1. 1. 1 The case was heard before the Code Enforcement Board on November 9, 2005, at which time an Order I was issued. The Order included a date of compliance of December 9, 2005, and an administration fee of $210. 1. 1. 1. 2 The property was re- inspected on December 16, 2005, and was found to be in non -compliance resulting in a second hearing before the Code Enforcement Board on February 8, 2006. The hearing resulted in an Order II, which included conditions to impose a fine of $250 per day for every day the property was not in compliance following March 10, 2006, with an additional $ 325 administration fee. 1. 1. 2 The second case ( Code Enforcement Case No. 06 -395) found the property at 205 Florida Place SE in violation for sign and roof maintenance on March 1, 2006. The sign violation was brought into compliance prior to the issuance of an order resulting in a recorded violation for roof maintenance. 1. 1. 2. 1 The case was heard before the Code Enforcement Board on July 12, 2006, at which time an Order I was issued. The Order consisted of a compliance 69-  date of August 11, 2006, and was accompanied by a $ 325 administration fee. - 1. 1. 2. 2 The property was re- inspected on or after August 11, 2006, and was found to be in non -compliance resulting in a second hearing on September 13, 2006. The hearing resulted in an Order II, which included conditions to impose a fine of $250 per day beginning on August 11, 2006, with an additional $ 325 administration fee. 1. 1. 3 The third case ( Code Enforcement Case No. 07 -1142) was for nuisance abatement actions against the property located at 207 Florida Place SE. 1. 1. 3. 1 The property was noticed and posted in accordance with the provisions of the Code of Ordinances for Abatement. 1. 1. 3. 2 A request to demolish the subject structure was brought to the City Council on October 23, 2007. However, no representative for the property owner appeared to contest the abatement. City Council approved the demolition of the building and the placement of a lien against the property for the incurred costs of the abatement. 1. 1. 3. 3 The building was subsequently demolished and a lien of $9, 497. 00 was placed on the property to recover the incurred costs. 2. DISCUSSION: 2. 1 As a result of the liens filed for all of the above mentioned cases, all properties owned by Mrs. Jody Godwin were subject to action by the City for collection of the lien. In additional to the properties at 205 and 207 Florida Place SE, Mrs. Godwin owned three properties ( Lots 1, 2, and 7) in Grand Oaks in Destin, Florida. 2. 1. 1 Some if not all of these properties were sold within the last several years. At the time of each sale, a title search was performed, but the liens were not discovered and the City was not notified. 2. 1. 2 After being made aware of the property sales, the City' s Code Enforcement Attorney made contact with the title company to pursue the City' s interest. 2. 1. 3 On January 13, 2010, the City' s Code EnforcementAttorney received a settlement request from First American Title Insurance Company, offering 5, 000. 00 for the release of the liens placed on Lot 1 in Grand Oaks only. 2. 1. 4 A request to settle the lien on Lot 1, Grand Oaks, was presented to the City Council for consideration on February 23, 2010, at which time the Council instructed staff to have the Code Enforcement Attorney prepare a history of the events of the case supporting the his recommendation for presentation before the them at a later date. 70-  2. 2 On January 15, 2010, the City Attorney and the Building Official received an e -mail from the City' s Code Enforcement Attorney outlining the settlement offer from the title insurance company and recommending acceptance of the agreement. 2. 3 After review of the documentation, the City Attorney provided an e -mail to the Building Official concurring with the Code Enforcement Attorney and recommending acceptance of the settlement offer. 2.4 The settlement offer as requested will only release the City' s lien against Lot 1 in Grand Oaks and will have no bearing on the remaining properties that the City may still have rights against. 2. 5 On April 21,2010, the Code Enforcement Attorney prepared a memo outlining the two code enforcement liens against the properties located a 207 and 205 Florida Place SE. 2. 6 On May 6, 2010, the Code Enforcement Attorney received a second settlement offer, this time for Lots 2 and 7 of Grand Oaks. 2. 6. 1 The terms of this offer were $ 2, 500 for each property, totaling $ 5, 000. 2.7 On May 12, 2009, Ordinance No. 1793 was adopted to amend Section 1. 05. 08 of the Code of Ordinances, titled Code Enforcement Order Mitigation Procedures, to provide a suggested schedule of mitigation percentages. The percentages in the approved schedule are a follows: Fine Amount of Fine Amount be Paid 0-$ 20, 000 20% of the fine amount 20,001 - $ 40, 000 30% of the fine amount 40, 001 and over 35% of the fine amount 3. FINANCIAL INFORMATION: 3. 1 The existing fines and fees on the properties located at 205 and 207 Florida Place SE are as follows: Case # Administrative Fee Assessed Fines 05 -1052 535. 00 189, 750. 00 06 -395 650. 00 44, 750.00 07 -1142 95497. 00 Total Fees & Fines 1, 185. 00 L$ 243, 997. 00 4. CODE ENFORCEMENT RECOMMENDATION: 4. 1 The City' s Code Enforcement Attorney recommends acceptance of the offer of $5, 000. 00 from the title insurance company, First American Title Insurance Company, as full 71_  settlement of the liens against the property known as Lot 1 Grand Oaks, Plat Book 14, Page 59, Okaloosa County. 4.2 The City' s Code Enforcement Attorney also recommends the acceptance of the offer for 2, 500. 00 each for Lots 2 and 7 from Browski & Duncan, P. A. for a total of $5, 000. 00 as full settlement of the liens against the properties listed. 5. STAFF RECOMMENDATION: 5. 1 Staff requests City Council authorization to follow the recommendation of the Code Enforcement Attorney and accept the settlement offers of $5, 000. 00 to release the liens on Lot 1, Grand Oaks, Plat Book 14, Page 59, Okaloosa County, $ 2, 500. 00 to release the liens on Lot 23 Grand Oaks, Plat Book 14, Page 59, Okaloosa County, and $ 2, 500. 00 to release the liens on Lot 7, Grand Oaks, Plat Book 14, Page 59, Okaloosa County. The properties at 205 and 207 Florida Place SE are currently in compliance, and the Code Enforcement cases were filed prior to the passage of Ordinance No. 1793. 6. ATTACHMENTS: 6. 1 Ordinance No. 1793 6. 2 Settlement Letter from First American Title Insurance Company, dated January 13, 2010 6. 3 E -Mail from Code Enforcement Attorney to Staff, dated January 15, 2010 6.4 E -Mail from City Attorney Recommending Acceptance of Settlement, dated January 19, 2010 6. 5 Memo outlining the Status of the City' s two cases, Joe Lorenz Dated April 21, 2010. 6. 6 Settlement offer from Borowski & Duncan, P. A. dated May 6, 2010. 7. SIGNATURE BLOCK: 7. 1 Submitted By: I- 7 ' ao 10 Timothy Bolduc, CBO, BCA, Building Official 7. 2 Reviewed and Concur: = / ' iZ, Michael D. Beedie, P. E.