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Agenda 04/13/2010 Item #10A Agenda Item No. 10A April 13, 2010 Page 1 of 5 EXECUTIVE SUMMARY Recommendation to reject an offer to settle (and release) a $131,000 code enforcement lien for payment of $15,000 in the Code Enforcement Action entitled Board of County Commissioners vs. Richard Carter, Case No. 2007-060653, relating to property known as 196 Briarcliff Lane, Naples, Florida. OBJECTIVE: That the Board of County Commissioners (Board) reject an offer to settle and release a $131,000 code enforcement lien, in relation to the Code Enforcement Board action entitled Board of County Commissioners vs. Richard Carter, Case No. 2007-060653. CONSIDERATIONS: On October 19, 2007, the Code Enforcement Special Magistrate found Richard Carter (Respondent) in violation of the Collier County Code of Laws and Ordinances for "having private pool enclosure screens that are damaged and harboring insect infestation, stagnate or polluted water, mold, litter and debris in the pool water." Respondent was ordered to correct the violations by "repairing all private pool enclosure screens that are damaged and bring the pool water into compliance on or before October 26, 2007, or a fine of $250 per day" would be imposed until compliance is confirmed. This order was recorded in the official public records on November 8,2007, in O.R. Book 4300, Pages 2720-2722. Due to non-compliance and based on the above order, the Special Magistrate entered an order dated January 4, 2008, imposing a lien ("Lien Order"). The Lien Order was recorded in the official public records on January 24, 2008, at O.R. Book 4324, Pages 0043-44. On January 25, 2008, J.P. Morgan Chase Bank d/b/a Washington Mutual Bank ("JP Morgan") filed a notice of lis pendens to foreclose on a mortgage they held on the property, and on March 9, 2009, the bank formally took title to the property through foreclosure. The property was brought into compliance on April 7, 2009, by J.P. Morgan, by repairing all pool enclosure screens and bringing pool water into compliance, with a cost to the bank of approximately $2,000. The accrued lien amount is $131,000 for the non-compliance period of 524 days. Staff offered to forward to the Board a recommendation of approval for settlement and release of lien, in the amount of $63,500. Washington Mutual Bank rejected this offer. Agenda Item No. 10A April 13, 2010 Page 2 of 5 J.P. Morgan has offered to settle the lien for $15,000 and is requesting a waiver of the $116,000 in accrued fines and a release of the lien (see attached settlement letter dated March 10, 2010). Operational Costs in the amount of $233.62 were paid on February 23,2010. FISCAL IMPACT: The bank is offering to pay a total of $15,000 to settle this lien. If this offer is accepted by the Board, accrued fines in the amount of $116,000 will be waived. If the offer is rejected as recommended by staff, the lien will continue to encumber the property. GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this Executive Summary. LEGAL CONSIDERATIONS: The code enforcement lien was recorded one day before the lis pendens was filed, and this lien is valid. If the Board accepts this offer (over staff's recommendation), a time limit for payment should be made a condition of the acceptance. This item is legally sufficient for Board action. -JW RECOMMENDATION: That the Board reject the settlement offer described herein, as detailed in the attached settlement letter dated March 10, 2010. PREPARED BY: Marlene Serrano, Operations Manager Item Number: Item Summary: Meeting Date: Agenda Item No. 10A April 13, 2010 Page 3 of 5 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS 10A Recommendation to reject an offer to settle (and release) a $131,000 code enforcement lien for payment of $15,000 in the Code Enforcement Action entitled Board of County Commissioners vs. Richard Carter, Case No. 2007 -060653, relating to property known as 196 Briarcliff Lane, Naples, Florida. (Diane B. Flagg, Director, Code Enforcement, CDES) 4/13/20109:00:00 AM Date Prepared By Marlene Serrano Community Development & Environmental Services Manager - Code Enforcement Operations Code Enforcement 3/17/201011 :06:42 AM Date Approved By Nick Casalanguida Transportation Division Director - Transportation Planning Transportation Planning 3/18/20104:58 PM Date Approved By Diane B. Flagg Community Development & Environmental Services Director - Code Enforcement Code Enforcement 3/18/20105:11 PM Approved By Date Judy Puig Community Development & Environmental Services Operations Analyst Community Development & Environmental Services 3/23/20104:42 PM Approved By Date Jeff Wright County Attorney Assistant County Attorney County Attorney 3/24/2010 3:43 PM Date Approved By OMS Coordinator County Manager's Office Office of Management & Budget 3/29/20108:25 AM Date Approved By Jeff Klatzkow County Attorney 3/30/2010 8:45 AM Date Approved By Leo E. Ochs, Jr. County Managers Office County Manager County Managers Office 4/4/20101:19 PM 8URT.SAUNDERS~GRA Y~ROBINSON.COM March 10,2010 Agenda Item No. 10A STABILE BUlLDIN6Ipril 13, 2010 5551 RIDGEWOOD OR'VE Page 4 of 5 SUITE 101 FORT LAUDERDALE NAPLES, FL 14108 JACKSONVILLE TEL 239-598-3601 KEY WEST FAX 239-598-3164 gny-robinson.com UXEUND MELBOUR.NE MIAMI NAPLES ORLANDO TALLAHASSEE TAMPA GRAY/ROBINSON ATTORNEYS AT LAW 239-598-3601 HAND DELIVERY Board of County Commissioners 3301 E. Tamiami Trail, 3rd Floor Naples, FL 34112 Re: Settlel11ent Proposal for 196 Briarcliff Lane, Case # 2007-0606653 Dear Commission Members: We represent JP Morgan Chase Bank d/b/a Washington Mutual Bank ("Bank"), current owner of the above referenced property. We are requesting on behalf of the Bank a reduction in the Code Enforcement fines that have been levied on this property and provide as follows the justification for the Board of County Commissioners' consideration. On October 19, 2007, a Special Magistrate imposed a $250 per day fine on the above property because of various violations associated with the pool area of the home. The owner of the property at that time was Mr. Richard Carter who took no action to abate the violations. On January 25, 2008, the Bank filed a notice of lis pendins on the property and acquired the property through foreclosure on February 24, 2009. On March 26,2009, the Bank learned of the pool violations and immediately took action to abate the violations. The property was in full compliance on April 3, 2009, just one week after the Bank learned of the violations. The Bank expended approximately $2000 to make the necessary repairs. By that til11e, the fines had reached $ ] 3 I ,000. The objective in all code enforcement actions is to obtain compliance in order to protect the public health, safety and welfare. The Bank acted in a responsible way in correcting the code violations immediately upon learning of the violations. Though the bank understands that a certain amount of the fines will have to be paid to ensure that county taxpayers do not incur any expense in the elimination of the code violations, it is our belief that requiring the Bank to pay a high fine as punishment is not warranted under these circumstances. The Bank at all times acted responsibly and corrected the violations immediately upon learning ofthel11. GRA VROBINSON PROFESSIONAL ASSOCIATION Agenda Item No. 10A April 13, 2010 Page 5 of 5 Board of County Commissioners March 10,2010 Page 2 The Bank proposes that in addition to the costs to correct the violations, that the Bank should pay to the county fifteen thousand dollars ($15,000) to settle in total the fines for the code violations in Case No. 2007-060653. This will ensure that the county taxpayers have not incurred the costs associated with this code enforcement action. It will also send the proper message that when code violations are corrected in a timely fashion, consideration will be given to reducing the fines significantly. Thank you for your consideration of this request. Sincerely, Gray Robinson, A- Burt 1. aunders \7'260. # 22282 vi