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HomeMy WebLinkAbout2015 10 12 Public Hearings 500 Ordinance 2015-21, Second Reading, Code Enforcement Lien Reduction ProcedureCOMMISSION AGENDA ITEM 500 REQUEST: Informational Consent Public Hearings X Regular October 12, 2015 KS Regular Meeting City Manager Department The City Attorney requests that the City Commission consider Second and Final Reading of Ordinance No. 2015 -21 amending the manner in which applications for code enforcement lien reductions and satisfactions are considered by the City. SYNOPSIS: City code enforcement is primarily governed by Chapter 162, Florida Statutes. Chapter 162 provides for the imposition of penalties and fines for violations of the City Code which upon recordation in the Official Public Records of Seminole County,. Florida become liens against the personal and real property of the violator. The liens run against the land upon recordation. Ordinance No. 2015 -21 proposes to substantially modify the procedure and criteria regarding the processing of applications for code enforcement lien reductions and satisfactions. Particularly, the Ordinance streamlines the process by delegating the authority to grant code lien reductions and satisfactions to the City Manager subject to appeal to the City Commission. The criteria for considering lien reductions and satisfactions is based on the City's past several years of experience dealing with this issue during the foreclosure crisis. The City Commission recently reviewed the proposed changes as part of a more comprehensive code enforcement ordinance regarding special magistrates and directed the City Attorney to draft this Ordinance incorporating the changes as a standalone ordinance. CONSIDERATIONS: The enforcement of City Codes and ordinances is primarily governed by Chapter Public Hearings 500 PAGE 1 OF 4 - October 12, 2015 162, Florida Statutes. 2. In furtherance of this Chapter, the City has adopted code enforcement procedures which are codified primarily in Chapter 2, Article III, Division 2 of the City Code. 3. Pursuant to the City Code, the City imposes code enforcement fines and penalties against violators that if not paid, become liens against real and personal property owned by the violator. The liens run against the property and run in favor of the City Commission by law. 4. In 2001, the City Commission adopted procedures for handling the satisfaction or release of code enforcement liens. 5. The Ordinance proposes to delegate the authority for handling code lien reduction and satisfaction applications to the City Manager, subject to appeal to the City Commission. By delegating this authority, the City will be significantly streamlining the current process. Under the current process, applications are required to be presented to the Code Enforcement Board for a recommendation to the City Commission. Thus, the current process requires at least two public meetings after the City Manager and staff have evaluated the application and formulated a written staff recommendation. 6. Under the proposed procedural change, lien reduction and satisfaction applications will be decided by the City Manager. Unless the applicant appeals the decision to the City Commission, the City Manager's decision will be final. It is estimated that this process could potentially reduce the time required to process an application by 30 to 60 days. 7. In addition, during the recent foreclosure crisis in Florida, the City has had the opportunity to handle numerous lien reduction and satisfaction applications. During this time period, the City Manager, in consultation with the City Attorney's office and staff, has developed administrative factors to assist with processing these applications. The Ordinance proposes to clarify, enhance and codify the factors to guide the City Manager's decision making related to these applications going forward. The factors will be as follows: (1) The amount of any administrative and out -of- pocket costs incurred by the city which are directly associated with the underlying code enforcement case and lien including, but not limited to, code enforcement staff and attorney time, postage, advertising and recording costs, and other city expenses related to any measure taken by the previous code board or special magistrate or city to abate a nuisance caused by the violation; (2) The gravity and number of the violation(s); (3) The amount of the requested reduction; (4) Whether the Applicant was responsible for the violation which caused the lien; (5) Whether the Applicant is or will be a bona fide purchaser of the subject property and is filing or has filed for a homestead exemption evidencing a desire to reside within the City on a non - transient basis, or whether the property is or will be acquired for investment or other purposes; (6) Whether the Applicant acquired the subject property with knowledge of the subject lien; (7) The time in which it took to bring the property into compliance; Public Hearings 500 PAGE 2 OF 4 - October 12, 2015 (8) The accrued amount of the code enforcement fine or lien as compared to the current market value of the property; (9) With respect to a speculator, non - homestead purchaser of the subject property, the accrued amount of the code enforcement fine or lien as compared to the investment/profit that will be gained as a result of the purchase or sale of the property and the reduction or satisfaction; (10) Any previous or subsequent code violations pertaining to the property unless an order finding a violation is under appeal at the time of determination; (11) Any previous or subsequent code violations of the Applicant pertaining to other properties owned within the city, unless an order finding a violation is under appeal at the time of determination; (12) Any relevant information contained in any title policy required to be submitted to the city under this section; (13) Any financial hardship; (14) Any other mitigating circumstance which may warrant the reduction or satisfaction of the penalty or fine; and (15) Any other administrative review criteria relevant to whether it is equitable to reduce or release a lien which are adopted by the city manager, in writing, and are intended to be applied to all applications on a uniform basis. 8. The City Manager will be required to make the decision in writing and will either approve, approve with conditions, or deny the applications. To the maximum extent feasible, the City Manager shall collect, at a minimum, all administrative and out -of- pocket costs incurred by the City related to the lien. 9. Decisions of the City Manager may be appealed to the City Commission by filing a notice of appeal within 30 days of the decision and paying a $100 non - refundable filing fee. 10. The City Commission previously considered the substantive provisions of this Ordinance at its last meeting when it considered the special magistrate ordinance. The City Commission directed the City Attorney to incorporate the substantive provisions in a standalone ordinance. That ordinance is presented for consideration in this agenda item. 11. The City Commission passed the Ordinance on first reading on September 28, 2015. The legal advertisement was published in the Orlando Sentinel on October 1, 2015 at least 10 days prior to this meeting. FISCAL IMPACT: None. However, the proposed streamlined process could reduce the amount of staff and board time required to process lien satisfaction applications. COMMUNICATION EFFORTS: This Agenda Item has been electronically forwarded to the Mayor and City Commission, City Manager, City Attorney /Staff, and is available on the City's Website, LaserFiche, and the City's Server. Additionally, portions of this Agenda Item are typed verbatim on the respective Meeting Agenda which has also been electronically forwarded to the individuals noted above, and which is also available on the City's Website, LaserFiche, and the City's Public Hearings 500 PAGE 3 OF 4 - October 12, 2015 Server; has been sent to applicable City Staff, Media/Press Representatives who have requested Agendas /Agenda Item information, Homeowner's Associations/Representatives on file with the City, and all individuals who have requested such information. This information has also been posted outside City Hall, posted inside City Hall with additional copies available for the General Public, and posted at five (5) different locations around the City. Furthermore, this information is also available to any individual requestors. City Staff is always willing to discuss this Agenda Item or any Agenda Item with any interested individuals. RECOMMENDATION: The City Attorney and City Manager recommend that the City Commission adopt Ordinance No. 2015 -21 on Second and Final Reading. ATTACHMENTS: Ordinance 2015 -21 (8 Pages) Legal Advertisement in Orlando Sentinel (1 page) Public Hearings 500 PAGE 4 OF 4 - October 12, 2015 ORDINANCE NO. 2015 -21 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, SEMINOLE COUNTY, FLORIDA; REVISING THE PROCEDURE FOR SATISFYING AND RELEASING CODE ENFORCEMENT LIENS; PROVIDING FOR THE REPEAL OF PRIOR INCONSISTENT ORDINANCES AND RESOLUTIONS; PROVIDING FOR INCORPORATION INTO THE CODE; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Winter Springs is granted the authority, under Section 2(b), Article VIII, of the State Constitution, to exercise any power for municipal purposes, except when expressly prohibited by law; and WHEREAS, Chapter 162, Florida Statutes, provides that a municipality may adopt various code enforcement systems giving designated code enforcement boards or special magistrates the authority to impose administrative fines and other noncriminal penalties to provide an equitable, expeditious, effective and inexpensive method of enforcing any code and ordinance in force in such municipality; and WHEREAS, in accordance with Chapter 162, Florida Statutes, and the City's municipal home rule powers, the City's code enforcement board and /or special magistrates impose code enforcement fines and penalties that become liens against real and personal property; and WHEREAS, the City desires to amend the City's administrative procedure for handling the satisfaction and release of code enforcement liens in order to streamline the process and establish more detailed objective criteria for considering applications for the satisfaction and release of such liens; and WHEREAS, the City Commission of the City of Winter Springs, hereby finds this Ordinance to be in the best interests of the public health, safety, and welfare of the citizens of Winter Springs. NOW, THEREFORE, THE CITY OF WINTER SPRINGS HEREBY ORDAINS AS FOLLOWS: Section 1. Recitals. The foregoing recitals are hereby fully incorporated herein by this reference as legislative findings and the intent and purpose of the City Commission of the City of Winter Springs. Section 2. Amendment of Section 2 -61.5 of the City Code. Section 2 -61.5 of the Code of Ordinances of the City of Winter Springs, Florida, is hereby amended, as follows {proposed additions to existing City Code text are indicated by underline and deletions are indicated by s eeUt }. Sec. 2 -61.5 Application for satisfaction, reduction; or release of code enforcement liens. City of Winter Springs Ordinance No. 2015 -21 Page 1 of 8 (a) Where a certified copy of an order iMposing,_a penalty_ or fine, as described in this division has been recorded in the public records of Seminole CountL Florida and has become a lien against the land and/or property _of the violator, such violator, or the violator's successors or assignswho has an ownership interest in the encumbered property (collectively the "Applicant ") may apply for a satisfaction, reduction, or release, of such lien as follows: fD Upon full payment by the Applicant of the fine or malt irn osed in accordance with this-division , the city manager is hereby authorized to execute and record on behalf of the city a satisfaction of lien in the public records of Seminole Count Florida. The Applicant shall be res ponsible for a 'n a[1 costs of recordin . U on re uest for a reduction or release of a fine or malt irn osed in accordance with this division, the Applicant shall submit a written application to the city manager or designee. The application for reduction or release of lien shall be in written form typed or handwritten by the Applicant and shall be submitted to the cit mans er or des nee. The application shall be executed under oath and sworn to in the presence of a notary public, and shall include, but may not be limited to. the following: W A copy of the order imposing a lien upon the property including the code enforcement case number: Q The date upon which the Applicant_ brought the subject property into compliance with the Code; QJ The factual basis upon which the Applicant believes the application for release or reduction of lien should be granted; The terms u on which the release or reduction of lien should be granted, The reasons, if any. compliance was not obtained prior to the order of penalty or fine beina recorded; The reduction in penalty or fine sought by the Applicant; A statement verifying_ whether the Applicant was issued any title policy or policies for the sub'ect property encumbered by the lien after the date the lien was recorded in the public records of Seminole County, Florida. if such a policy or policies were issued to the Applicant, a copy of any such title policy shall be submitted with the a lication• U Any other information which the Applicant deems pertinent to the request, including but not limited to the circumstances that exist which would warrant the reduction or satisfaction of the penalty or fine. tc} The Applicant shall submit, at the time of application. payment to the city in the amount, necessary to reimburse the city for its costs associated with recording the order imposing a venalty or fine and the requested reduction or release of lien. These costs are nonrefundable, without regard for the final disposition of the application. City of Winter Springs Ordinance No. 2015 -21 Page 2 of 8 Upon receipt of the qpylication for reduction or release of lien and paMent provided above, the city manager or designee shall confirm through the code enforcement department that the violation which resulted in the order imposing penally or fine has been brow ht into compliance. If the violation has been brow ht into com liance and there is no current code violation upon the property in question, the city manager shall review and consider the application. Additional information shall also be recluired to su ort the application if the city manager deems such information is relevant and necessary to make a fmal decision on the a lication. The city commission hereby delegates to the city manager the authority to review and consider applications for release or reduction of liens and make determinations as provided herein fe The city manager shall review and consider the following factors in making a determination to reduce or release the lien: W The amount of any administrative and out -of- pocket costs incurred by the city which are directly associated with the underl in code enforcement case and lien including, but not limited to, code enforcement staff and attorney time, postage, advertising and recording costs and other city expenses related to apy measure taken by the code enforcement board or special magistrate or city to abate a nuisance caused by the violation; 0 The gravity and number of the violations The amount of the requested reduction; f4l Whether the Applicant was responsible for the violation which caused the lien; Whether the Applicant is or will be a bona fide urchaser of the subject ro ert and is filing or has filed for a homestead exemption evidencing a desire to reside within the City on a non- transient basis or whether the 12merty is or will be acquired for investment or other purposes; Whether the A licant acquired the subject property with knowled e of the subject lien; The time in which it took to bring the property into compliance, The accrued amount of the code enforcement fine or lien as compared to the current market value of the_propggL With respect to a speculator, non - homestead purchaser of the subject vropgg the accrued amount of the code enforcement fine or lien as com ared to the investment/profit that will be gained as a result of the purchase or sale of the property and the reduction or satisfaction, LUO Any previous or subse uent code violations ptrtaining to the property unless an order finding a violation is under appeal at the time of determination; LUI Any previous or subse uent code violations of the A licant ertainin to other properties owned within the Oty., unless an order finding a violation is under Weal. at the time of determination; Any relevant information contained in an title policy required to be submitted to the city under this section; Any financial hardship; 14 Any other miti atin circumstance which may warrant the reduction or satisfaction of the penalty_ or fine; and City of Winter Springs Ordinance No. 2015 -21 Page 3 of 8 15 Any other administrative review criteria relevant to whether it is e uitable to reduce or release _a lien which are adopted by the city manager, in writing, and are intended to be applied to all applications on a uniform basis. ,Lf The city manager mgy, in writing, approve, approve with conditions, or deny the qpylication to reduce or release of lien. To the maximum extent feasible the city mana er shall collect, at a minimum, all administrative and out -of- pocket costs incurred by the city as specified in subsection e 1 . if the cit y mana era roves the a lication and the approval is conditioned upon the Applicant paying a reduced penalty, fine, or any other condition the satisfaction or release of lien shall not be prepared or recorded until the conditions laced by the city, mana er have been satisfied. The Applicant shall have thirty 30 days in which to com 1 with the conditions irn osed by the -city manager or _submit a written _appeal as provided herein. Failure of the Applicant to comply or timely appeal will result in the automatic denial of thg- mlication and the original amount of the fine including casts shall be automatically reinstated. After the appeal time period has run or is waived by the Applicant, in writing, the city manager may, for good cause showD, grant additional time in the form of a written estoppel letter to a closing agent for purposes of facilitating a pending g losin of f the subject property!. If the application is denied, or if the application is automatically denied due to the failure of the Applicant to comply with the conditions imposed by the cif manager or timely appeal, the Ap2licant shall thereafter be barred from a lying for a subsequent reduction or release of lien for a period of one year from the date of denial. During the one -year eriod the lien may only be satisfied and released a on full a ent of the fine or enalt imposed in accordance with this division. Lil The Applicant may appeal the city manager's decision to the city commission, b filing a written appeal within thi 30 days of the date of the decision with the city clerk. The notice of appeal shall state the decision that is.beipZ a ealed the g. rounds for Weal, and a brief summary of the _ relief being sought. A nonrefundable filing fee of $100 shall accompany the notice of appeal. Upon submittal of a timed appeal and filing „fee, the city mana gr shall place the a eal of the determination Won the a ends of the next regglarly scheduled city commission meeting to the extent practicable. The city commission shall render a final decision on the a lication based upon the swom a lication and determination of the city manager and any_ other relevant information or testimony provided to the city commission at the meeting by the Applicant, 61y manager or any other interested party. Any decision made by the city commission pursuant to this section shall be deemed final and not subject to any further administrative review by the city.- The Applicant shall have thirty (30) days in which to comply with any decision of or condition imposed by the city commission or the Ltpplication shall be deemed automatically denied and thereafter the Applicant shall be barred from a 1 'n fora sub sM uent reduction or release_ of lien_ for a period of one year from the date of the city commission's decision. During the one-year period, the lien may only be satisfied and released upon full payme nt of the fine or p�gnalty im osed in accordance with this division. City of Winter Springs Ordinance No. 2015 -21 Page 4 of 8 When a lien is satisfied as a result of reduced payment or release as ordered by the city manager or city commission the city mana er is hereby authorized to execute and record in the public records of Seminole County, _Florida, a _satisfaction of lien on behalf of the city. Under appropriate circumstances determined by the city manager or city commission to be in the best interests of the cit the cit mana er oE_gjty commission ma a rove an application conditioned upon a partial release of lien that releases a city lien from a specific piece of propegy. However, the lien will remain in effect and will encumber an other properties which are subject to the lien pursuant to law. Partial releases of lien may also be authorized by the city manager or city commission to account for any funds paid to the cit y to reduce the amount owned on the lien. In addition nothin herein shall rohibit the city manager from releasing a lien, in whole or part, which was recorded in error by the city or foreclosed by a su erior lien or mortgage in a judicial proceeding. The ci manager ma im ose an administrative charge to release a lien recorded in error or foreclosed to recover the city's costs associated with the subject lien. An application shall not be re uired to release a lien recorded in error. of lien. the Gity code; arA�ar- pr-opetly ef the vielaler-, sueh violator- may as apply for- a sa4sCae-tim er- release of sueli lien of lien. City of Winter Springs Ordinance No. 2015 -21 Page 5 of 8 the Gity code; d. The tents faefie be Wen 4be if which anti. t or release off-lim should to the granted; e. > any, fine being r-eEArded; eaffiplianee was iiet obtaifted prior- order- ef penalty OF City of Winter Springs Ordinance No. 2015 -21 Page 5 of 8 f�adable, 3 r The , „„& r denial of the appliea4ien for satisfaefien er- release ef lien. er- lien. e. acemed ameiia+ Ofthe ede r-ee en4 °r fine has been bfeuglit into if the vielatim has been br-ati& into oi: eamplianee. Mp r lien, the pr-evide vielatar- with an lien, eity staff-. > 3 r The , „„& r denial of the appliea4ien for satisfaefien er- release ef lien. er- lien. 3 City of Winter Springs Ordinance No. 2015 -21 Page 6 of 8 The , „„& fi" er- lien. e. acemed ameiia+ Ofthe ede r-ee en4 °r ; City of Winter Springs Ordinance No. 2015 -21 Page 6 of 8 Y Mp City of Winter Springs Ordinance No. 2015 -21 Page 6 of 8 fine, ) the satisfaetion or- release of lien shall flot be prepared of r-eeefded uf4ij the eendition(s) plaeed by the have been � � Section 3. Repeal of Prior Inconsistent Ordinances and Resolutions. All prior inconsistent ordinances and resolutions adopted by the City Commission, or parts of prior ordinances and resolutions in conflict herewith, are hereby repealed to the extent of the conflict. Section 4. Incorporation Into Code. This Ordinance shall be incorporated into the Winter Springs City Code and any section or paragraph, number or letter and any heading may be changed or modified as necessary to effectuate the foregoing. Grammatical, typographical, and like errors may be corrected and additions, alterations, and omissions, not affecting the construction or meaning of this Ordinance and the City Code may be freely made. Section 5. Severability. If any section, subsection, sentence, clause, phrase, word or provision of this Ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, whether for substantive, procedural, or any other reason, such portion shall be deemed a separate, distinct and independent provision, and such holding shall not affect the validity of the remaining portions of this Ordinance. Section 6. Effective Date. This Ordinance shall become effective immediately upon adoption and execution by the Mayor pursuant to the City Charter. ADOPTED by the City Commission of the City of Winter Springs, Florida, in a regular meeting assembled on this 1261 day of October, 2015. ATTEST: Andrea Lorenzo- Luaces, City Clerk Charles Lacey, Mayor City of Winter Springs Ordinance No. 2015 -21 Page 7 of 8 7%- =-ow:' ........ . ...... SETME-Mur.. ILL. Section 3. Repeal of Prior Inconsistent Ordinances and Resolutions. All prior inconsistent ordinances and resolutions adopted by the City Commission, or parts of prior ordinances and resolutions in conflict herewith, are hereby repealed to the extent of the conflict. Section 4. Incorporation Into Code. This Ordinance shall be incorporated into the Winter Springs City Code and any section or paragraph, number or letter and any heading may be changed or modified as necessary to effectuate the foregoing. Grammatical, typographical, and like errors may be corrected and additions, alterations, and omissions, not affecting the construction or meaning of this Ordinance and the City Code may be freely made. Section 5. Severability. If any section, subsection, sentence, clause, phrase, word or provision of this Ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, whether for substantive, procedural, or any other reason, such portion shall be deemed a separate, distinct and independent provision, and such holding shall not affect the validity of the remaining portions of this Ordinance. Section 6. Effective Date. This Ordinance shall become effective immediately upon adoption and execution by the Mayor pursuant to the City Charter. ADOPTED by the City Commission of the City of Winter Springs, Florida, in a regular meeting assembled on this 1261 day of October, 2015. ATTEST: Andrea Lorenzo- Luaces, City Clerk Charles Lacey, Mayor City of Winter Springs Ordinance No. 2015 -21 Page 7 of 8 Approved as to legal form and sufficiency for the City of Winter Springs only: Anthony A. Garganese, City Attorney First Reading: September 28, 2015 Legal Ad Published: October 1, 2015 Effective Date: October 12, 2015 City of Winter Springs Ordinance No. 2015 -21 Page 8 of 8 4� S s c J ,1 u 3 L� 4 -� ;'ts�i " " +'s I • • II � Jf __ If W V agq�g Mg r D nrya rYE � Vii` Ep 5 G :Jq, m S4 :ro 3� Tp �F az a on '1 u W. jiV1 'Rwom=-I oC-1 —f LL_6pG���CC� t4 iO Q ✓V�6Ca S°3 �i ,� cC —m�E W�S�g LC m -va y4`W�b Dim cLLn UA�OO a LimcWa� ^.. 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