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Agenda 12/11/2012 Item #11F12/11/2012 Item 11. F. EXECUTIVE SUMMARY Recommendation to deny a lender's offer of settlement in the Code Enforcement Action entitled Board of County Commissioners vs. Tricia Jenks, Code Enforcement Case Number CESD20090001470, relating to property located at 830 3rd Street NW, Collier County, Florida, as contrary to Resolution 201246. OBJECTIVE: That the Board of County Commissioners (BCC) adhere to BCC Resolution 2012 -46 in regard to Code Enforcement Board case number CESD20090001470. CONSIDERATIONS: As a result of code violations at 830 3rd Street NW, the Code Enforcement Board ordered the imposition of a lien ( "Lien ") against the owner Tricia Jenks in Code Enforcement Case Number CESD20090001470. The lien was recorded in the Official Public Records on July 7, 2010, at O.R. Book 4583, Page 2803, and the lien encumbers all real property owned by Tricia Jenks. The fine amount of $124,400 is based on accrued fines for the non- compliance period of 622 days at $200 per day pertaining to a garage built on the property without permits. A Special Warranty Deed was recorded to the lender, Residential Credit Solutions, Inc. on April 26, 2011. A lender brought the property into compliance on January 31, 2012. On March 13", 2012, the Board updated their policy and provided direction for fine waivers. Pursuant to the Board of County Commissioner's Resolution 201246, all the fines that accrued prior to transfer of title and thirty days following transfer of title would be considered for waiver once the property is in compliance and the new owner diligently pursued compliance. Board policy has resulted in code enforcement fine waivers of more than eight million dollars since July 2008. Pursuant to BCC Resolution 201246, $74,000 in fines is eligible for a waiver; $50,400 is due. Operational costs in the amount of $83.15 have been paid. FISCAL IMPACT; The lender has offered $25,000, ,which is not in adherence to BCC Resolution 2012 -46. The amount due, pursuant to the Board's Resolution is $50,400. Fines in the amount of $74,000 are eligible for waiver under the Board's policy. GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this Executive Summary. LEGAL CONSIDERATIONS: This item is legally sufficient for Board action and requires a majority vote for approval. -JW RECOMMENDATION: That the settlement offer be denied pursuant to Board policy and consistent with past actions of the Board. Prepared by: Jen Baker, Enforcement Supervisor, Code Enforcement Department, Growth Management Division, Planning and Regulation. Attachments: Resolution 2012 -45 and Property Appraiser Detail Packet Page -1789- COLLIER COUNTY Board of County Commissioners Item Number: 11.F. 12/11/2012 Item 11.F. Item Summary: Recommendation to deny a lender's offer of settlement in the Code Enforcement Action entitled Board of County Commissioners vs. Tricia Jenks, Code Enforcement Case Number CESD20090001470, relating to property located at 830 3rd Street NW, Collier County, Florida, as contrary to Resolution 2012 -46. (Diane Flagg, Code Enforcement Director) Meeting Date: 12/11/2012 Prepared By Name: BakerJennifer Title: Code Enforcement Specialist 11/15/2012 2:42:11 PM Approved By Name: F1aggDiane Title: Director - Code Enforcement,Code Enforcement Date: 11/15/2012 6:17:21 PM Name: PuigJudy Title: Operations Analyst, GMD P &R Date: 11/16/2012 2:03:54 PM Name: LynchDiane Title: Administrative Assistant Date: 11/26/2012 11:06:58 AM Name: WrightJeff Title: Assistant County Attorney,County Attorney Date: 11/28/2012 11:52:09 AM Name: FinnEd Title: Senior Budget Analyst, OMB Date: 11/29/2012 12:15:28 PM Name: KlatzkowJeff Title: County Attorney Packet Page -1790- Date: 11/29/2012 1:45:18 PM Name: OchsLeo Title: County Manager Date: 12/1/2012 2:25:26 PM Packet Page -1791- 12/11/2012 Item 11. F. 12/11/2012 Item 11. F. RESOLUTION NO. 2012 - 4 6 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, REPLACING AND SUPERSEDING RESOLUTION NO. 2010 -1019 AUTHORIZING THE DIRECTOR OF THE CODE ENFORCEMENT DEPARTMENT, AS DESIGNEE OF THE COUNTY MANAGER, TO UTILIZE A COLLECTION AGENCY FOR THE COLLECTION OF CODE ENFORCEMENT LIENS; TO RECOMMEND SETTLEMENT OF CODE ENFORCEMENT LIENS, USING SPECIFIED CRITERIA; TO EXECUTE AND RECORD SATISFACTIONS OF LIEN AND SATISFACTIONS OF JUDGMENT IN. CERTAIN CIRCUMSTANCES; AND TO PERFORM SUCH ACTS NECESSARY TO THE SETTLEMENT OF CODE ENFORCEMENT LIENS. WHEREAS, Article. VIII, Section 1, Fla. Const., provides the Board of County Commissioners (hereinafter `Board ") as ,the governing body of Collier County, with powers of self - government as provided for by general or special law; and WHEREAS, certain of these powers have been enumerated in Section 125.01(1), Fla. Stat., to include: (1) the power to adopt resolutions necessary for the exercise of its powers and prescribe fines and penalties for the violation of ordinances in accordance with law, and (2) the power to perform any other acts not inconsistent with law; and WHEREAS, Section 125.01(3), Fla. Stat., provides all implied powers necessary or incident to the carrying out of the powers in Section 125.01, and states that Section 125.01 shall be liberally construed in order to effectively carry out the purposes of this section and to secure for the counties the broad exercise.of home rule powers; and WHEREAS, the County Manager is responsible for the administration of all departments of the county government which the Board has authority to control pursuant to Chapter 125, Part III, the general laws of Florida and other applicable legislation; and WHEREAS, the Director of Code Enforcement is charged with the responsibility of enforcing the Code of Laws and Ordinances of Collier County and the Land Development Code of Collier County; WHEREAS, pursuant to Chapter 162, Fla. Stat., the Collier County Code Enforcement Board and Special Magistrate may, upon factual findings of a violation and the violator's failure to correct or abate the violation pursuant to a previous Order by the Code Enforcement Board or Special Magistrate, impose fines, and costs to repair, by virtue of an Order Imposing Fine /Lien; and WHEREAS, Section 162.09, Fla. Stat., provides that the Code Enforcement Board or Special Magistrate may authorize the Office of the County Attorney to foreclose the lien or to sue to recover a- money judgment for the amount of the lien in the event the fine /lien remains unpaid three months after recording of the Order Imposing Fine/Lien; and Packet Page - 1792 - 12/11/2012 Item 11.F. WHEREAS, Section 162.09, Fla. Stat., also authorizes the County to petition the court for enforcement of the order imposing fine and further provides for execution and levy to the same extent as a civil judgment; and ^ WHEREAS, foreclosure, execution and levy, or suits for money judgments, are often not effective methods for the recovery of code enforcement liens; and WHEREAS, the use of a collection service has proven effective for recovering other types of fines and/or assessments, and often presents the only cost- effective means of obtaining partial or total recovery of liens; and WHEREAS, a collection agency will typically require thirty percent (30 %) of all amounts collected as compensation for its efforts; and WHEREAS, the use of a collection agency for the collection of code enforcement liens is a proper, and lawful manner of enforcement by the County and in the best interest of the public; and WHEREAS, the County is required to prepare and record a satisfaction or release of code enforcement liens as well as a satisfaction of judgments for civil code infractions in every instance where a lien or civil judgment has been paid; and WHEREAS, the County wishes to establish criteria for the compromise, settlement and satisfaction of code enforcement. liens and has determined that the policy set forth in this Resolution is in the best interest of the County. WHEREAS, the Board finds that the collection of code .enforcement liens by the Director of Code Enforcement under the criteria set forth herein is reasonable and in the best interest of the public. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that: 1. Utilizing the most cost- effective means of enforcing and collecting code enforcement fines and liens imposed by the Collier County Code Enforcement Board or Special Magistrate is in the best interest of the County. It is the intent and purpose of the County in adopting this Resolution to set forth a policy dictating a means of enforcement and collection under circumstances where it is neither feasible nor cost - effective to pursue foreclosure or other legal proceedings for the collection of these fines or liens. 2. To this end, the Director of Code Enforcement Department is hereby authorized to collect code enforcement liens through the services of an independent debt collection company. This authority may only be exercised when all of the following conditions have occurred. A. A certified copy of the Order Imposing Fine /Lien has been recorded in the public records of Collier County; and B. Three months have passed since the recording of the Order Imposing Fine /Lien and the lien remains unpaid. 2 Packet Page -1793- 12/11/2012 Item 11. F. 3. The Director of the Code Enforcement Department shall have the authority to procure the services of an independent collection service company (hereinafter "Collection Agent ") whose services provide for payment to the Collection Agent based on a percentage of ^ the amount recovered. This percentage shall not exceed thirty-percent of the recovery. Under no circumstances may the Collection Agent negotiate the lien amount to be paid. 4. The Director of the Code Enforcement Department may recommend settlement of those code enforcement liens, upon consideration of specific criteria set forth herein, and may prepare certain documents necessary in the execution of this authority, subject to Board approval. 4.1 Before a code enforcement lien settlement recommendation is made to the Board, the following conditions must be taken into consideration: A. Fine/lien amount is fixed and no longer accruing on a periodic basis. B. Underlying violation(s) resulting in the fine /lien has been abated or corrected. C. History of violations involving the offering party. D. r-� E Extent to which payment of the full lien amount would impose a severe financial hardship on the:property owner; fines accrued by an existing owner would be considered for a waiver as long as the existing owner has diligently pursued abatement and compliance has been achieved. F. The amount recovered will equal or exceed the costs and expenses incurred by the County in prosecuting the violation and obtaining, recording, and enforcing the fine /lien. 4.2 All liens, excluding any that have been fully paid, must be formally released with the approval of the Board of County Commissioners. 4.3 Once a code enforcement lien has been compromised by Board approval and full payment of the compromised amount has `been received by the County, as verified by the Director, or his/her designee, a Satisfaction and /or Release of Lien shall be prepared for the Board Chairman's signature. Within thirty (30) days of Board approval, the Director, or his/her designee, shall effectuate recording of the releasing instrument. 4.4 To the extent that other documents are 'needed to effectuate any action taken by the Director pursuant to this Section, the Director is authorized to prepare and execute such. documents. This provision shall not be construed as permitting or authorizing the Director. to exercise any authority in violation of Florida law or County policy and law, but rather is intended �-. to encompass ministerial acts necessary to effectuate, memorialize, or implement a lien compromise contemplated by this Section. 3 Packet Page -1794- 12/11/2012 Item 11. F. 5. The Director is further authorized to prepare and execute on behalf of the County Satisfactions of Judgment for Final Judgments rendered by the Court for code citations issued pursuant to part II, Chapter 162, Florida Statutes. Director, or her/his staff, shall verify that full payment has been received by the Clerk's Office or other County agency. The Office of County Attorney shall approve the executed Satisfaction of Judgment as to form and legal sufficiency .prior to recording. After approval by the Office of County Attorney, the Director, or her/his . designee, shall effectuate recording of the instrument. 6. The Director may perform all such acts as may be necessary or appropriate in connection with the exercise "of the authority granted herein. 7. Nothing contained herein is intended or shall be construed to create any rights, `entitlements or remedies to the enforcement and collection of a code enforcement lien in. a particular manner by any person or entity. It is the intent of the Board to merely articulate a means of compromise and, collection when doing so is in the best interest of the County and a more cost effective means of collecting a code enforcement lien. The recommendation of whether a lien should be compromised or subjected to collection through a collection agency is made at the discretion of the Director of Code Enforcement. 8. The Director of the Code Enforcement Department, or his/her designee, may record the Release and Satisfaction of Lien for those code enforcement liens which have been fully, paid. BE IT FURTHER RESOLVED THAT if one or more of the provisions of this policy should be held contrary to. any provisions of law or contrary to public policy, or shall for whatever reason be held invalid, then such provision shall be null and void and shall be deemed severable from the remaining provisions of this Policy and in no way shall affect the validity of all other provisions of this policy. BE IT FURTHER RESOLVED THAT this policy shall become effective immediately upon the adoption of this Resolution, and it shall replace and supersede Resolution 2010 -101. THIS RESOLUTION ADOPTED after motion, second, and majority vote favori ng same this the /34u day of P arch_ , 2012. ATTEST: BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY FLORIDA tti"Z l , By: pit. •t4 to. C4--,-.- t4y Clerk FRED W. COYLE, CHAI Approved as to Torm and legal sn€'iciencrd'` ~ r1 =} Jeff Wright Ass`i'stant County Attorney 4 Packet Page -1795- 12/11/2012 Item 11. F. I i i Parcel No. 13 7 115960008 I 11 AS-1 ite - 1830 3RD ST NW Name / Address RESIDENTAIL.CR SOLUTIONS INC 4282 NORTH FWY City FORT WORTH Zip 176137-5021 Change of Address Form Map No. I Strap No. Section 1 Township 1 Range I Acres *Acreage 1 4C04 328600 92 04C04 4 49 5 Legal GOLDEN GATE EST UNIT 11 TR 92 Latest Sales History *See Instructions for Calculations 2012 Certified Tax Roll (Subject to Change) If all Values shown below equal 0 if this parcel was created after the Final Tax Roll Land Value $42,500 �Improved Value $_368,943 Market Value $411,443 SOH & other Exe!ppt. $0 L ( =) Assessed Value $411,443 Homestead & other Exempt. $0 4 Taxable Value $411,443 'L MSchool Taxable Value $ 411,4431 SOH = "Save Our Homes" exempt value due to cap on assessment increases. http://www.collierappraiser.com/Main S Packet Page -1796- htnil?FolioID=37115960008 11/28/2012