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Resolution 2001-316 RESOLUTION 2001-..2l.2.. RESOLUTION AUTHORIZING THE DIRECTOR OF THE CODE ENFORCEMENT DEPARTMENT, AS DESIGNEE OF THE COUNTY ADMINISTRATOR, TO UTILIZE A COLLECTION AGENCY FOR THE COLLECTION OF CODE ENFORCEMENT LIENS; TO COMPROMISE AND SETTLE CODE ENFORCEMENT LIENS MEETING SPECIFIED CRITERIA AND NOT EXCEEDING $15,000; TO EXECUTE SETTLEMENT AGREEMENTS EFFECTUA TING SUCH COMPROMISE AND SETTLEMENT OF LIENS; TO EXECUTE AND RECORD SA TISFACTIONS OF UEN AND SATISFACTIONS OF JUDGMENT IN CERTAIN CIRCUMSTANCES; AND TO PERFORM SUCH ACTS NECESSARY TO THE SETTLEMENT OF CODE ENFORCEMENT UENS. 16A 7 WHEREAS, Article VIlI, Section I, Fla. Const., provides the Board of County Commissioners (hereinafter "Board") as the governing body of Collier County, with powers of self-government as is 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: (I) 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 Administrator 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, Part I, Fla. Stat., the Collier County Code Enforcement Board 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, 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 may authorize the Office of County Attorney to foreclose the lien or to sue to recover a money judgment for the amount of the lien in the event the finellien remains unpaid three months after recording of the Order Imposing FinelLien; and 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 effecti ve 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 16A 7 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 Director of Code Enforcement should, under certaIn specified conditions, have authority to compromise code enforcement fines/liens where such compromise is in accordance with specific criteria determined to be reasonable by this Board and in the best interest of the County, and to enter into agreements on behalf of the County memorializing the terms for such compromise and settlement; 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. NOW, THEREFORE, having found that the collection and compromise 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, BE IT HEREBY RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that: l. Utilizing the most cost-effective means of enforcing and collecting code enforcement fines and liens imposed by the Collier County Code Enforcement Board 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 the 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; and C. The Code Enforcement Board has authorized the Office of County Attorney to foreclose the lien, sue to recover a money judgment, or to petition the circuit court for post-judgment enforcement proceedings; and D. The Office of County Altorney, after conducting a title scarch and reviewing the file, has dctermined that the collection proceedings described in Section 1.C. above are not cost effective, likely to result in recovery, legally available to thc County, or otherwise recommended. 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-five per cent of the recovery. Under no circumstances may the Collection Agent negotiate the lien amount to be recovered without the Director's written consent or instruction. 4. The Director of the Code Enforcement Department may compromise and settle those code enforcement liens which meet specific criteria set forth herein, and may execute and record certain documents necess,'ry in the execution of this authority. 4.1 Before a code enforcement lien can be compromised pursuant to this Section, all the following conditions must be met: A. Fine/lien amount is fixed and no longer accruing on a periodic basis. 2 16A 7 B. Underlying violation(s) resulting in the fine/lien has been abated or corrected by the violator. C. The fine/lien amount does not exceed $15,000. D. The violator has not committed previous or subsequent violations. E. Payment of the full lien amount would impose a severe financial hardship on thc violator. 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 finellien. G. After excluding any portion of the fine/lien payable to a collection service, the portion of the lien to be collected does not amount to less than twenty- five percent (25%) of the original lien. For example, the collection agency is attempting to collect $10,000 lien. The Director agrees to accept $5,000. After accounting for 30% of $5,000 to the collection agency, the County collects only $3,500 ($5,000 - $1,500 = $3,500). $3,500 still exceeds 25% of the original lien amount of $10,000. H. The conditions of Section 2 have been met. 4.2 Any liens totaling more than $15,000, can only be compromised and satisfied with the approval of the Board of County Commissioners. 4.3 The Director may approve and execute any agreements on behalf of the County which are necessary to memorialize the terms of a compromise and settlement of a code enforcement lien in accordance with this Section. These terms may include periodic payments by the violator in lieu of a lump sum payment so long as these payments do not extend beyond twelve (12) months. The Office of County Attorney may assist the Director in preparing said agreements and shall approve all such agreements as to form and legal sufficiency. This authority is limited to only those individual liens totaling less than $15,000, and which otherwise meet the criteria set forth in this Section. 4.4 Once a code enforcement lien has been compromised and full payment of the compromised amount has been received by the County, as verified by the Director, or staff, the Director may prepare and execute on behalf of the County a Satisfaction or Release of Lien. Office of County Attorney shall approve the executed Satisfaction or Release as to form and legal sufficiency prior to recording. After approval by the Office of County Attorney, and within thirty (30) days of full payment, the Director, or her/his delegate, shall effectuate recording of the releasing instrument. Each satisfaction or release shall refer to this Resolution by number as authority for its execution by the Director of Code Enforcement. 4.5 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 exccute 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. 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 delegate, 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 3 16A 7 the County and a more cost-effective means of collecting a code enforcement lien. The determination 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. 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 THA T this policy shall become effective immediately upon the adoption of this Resolution. +- This Resolution is hereby duly adopted on this / I - day of September, 2001, after motion, second and majority vote favoring its adoption. .' nA.rtD;:q~ ~ I?,.~ 1 . ,A nEST:' . v .~ :- ...bWI9irrE.' BR,OCK,Clerk BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLO ,,' . -. ", :'-'. ,. ';11- _ . .~]~':'.~~)J.C-- . \.,'. .' '. '" . ..' ," : ,Deputy Clerk . ,~~~s't ..J:S . to . tbi 1 run . S S'lgn.~,ur.. tift 1';. Ellen T. Chadwell, Assistant County Attorney 4