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HomeMy WebLinkAboutItem #11 Second Reading of Ordinance - Amending City Code Section 7-9 to Provide for Negotiated Settlement of Code Enforcement Fines and Liens through an Administrative Process ocoee florida AGENDA ITEM COVER SHEET Meeting Date: September 15, 2015 Item # 1 1 Reviewed By: Contact Name: Doug Gaines Department Director: Contact Number: 407-905-3100, ext. 1503 City Manager: Subject: Public hearing and second reading for amending City Code Section 7-9 to provide for negotiated settlement of code enforcement fines and liens through an administrative process. Background Summary: Staff presented information regarding possible administrative mechanisms to address the continuing issue of property owner requests for reductions in code enforcement fines and satisfaction of liens. The consensus of the City Commission at that time was for staff to return with a draft ordinance to implement an administrative negotiated settlement process based on the following general outline: Eligible Properties- 1. Code lien was filed by the city more than 12 months prior to the application date. 2. Property is presently in full compliance and fine accumulation has ceased. 3. All other property owned by the same entity is in compliance with city codes. Fine Payment Process- 1. Outstanding fines can be reduced to the lesser of: a. The amount of the original fine reduced by 85%; b. 15% of the current market value of the property; or c. $5,000. 2. Reduced fines exceeding $1,000 may be paid with 50% down and the remaining balance paid over the following 12 months using equal or variable monthly payments. 3. The lien will remain in place until the reduced fine is paid in full. Upon receipt of final payment, a Satisfaction of Lien document will be filed by the city with the Orange County Clerk of the Court. 4. If any required payment is not timely made or the property ceases to be in compliance with city codes, the City Manager has the option of ending the fine reduction process, at which time the fine will revert to the original amount for the subject property. 5. Any property owner who is not satisfied with the negotiated settlement reached through the administrative process may appeal to the City Commission for a reduction in fine and satisfaction of lien. After October 1 of each year, staff may mail notices to qualifying property owners advising them of the administrative fine reduction program. At other times, property owners may elect to use the administrative process in order to resolve outstanding code enforcement fines and liens. Any property owner seeking a reduction in fines and a release of lien through the administrative process must file an 1 application using a form provided by the city. All such applications will be reviewed by code enforcement staff and presented to the City Manager for review and acceptance into the fine reduction program. As drafted, the proposed changes to the City Code allow the City Manager to make modifications to the basic process or to waive one or more requirements for unusual circumstances and property conditions. As stated in the proposed ordinance, the intent is to "accomplish compliance with the City Code as economically as possible for all parties." It is expected that any settlement of fines would seek to recover city costs plus impose a penalty amount reflecting the severity and duration of non-compliance. Issue: The City Commission seeks to amend Section 7-9 of the City Code in order to allow for an administrative negotiated settlement process to reduce code enforcement fines and issue a Satisfaction of Lien for properties successfully completing the negotiated settlement process. Recommendations: Staff recommends that the City Commission adopt the proposed ordinance amending Section 7-9 of the Code of Ordinance of the City of Ocoee. The first reading was held on September 1, 2015. Attachment: Proposed ordinance. Financial Impact: The city could experience a slight to moderate increase in fine payments, particularly with regard to those vacant properties with longstanding and/or high accumulated fines. Type of Item: (please mark with an "x") Public Hearing For Clerk's Dept Use: X Ordinance First Reading Consent Agenda Ordinance Second Reading X Public Hearing Resolution Regular Agenda Commission Approval Discussion&Direction Original Document/Contract Attached for Execution by City Clerk Reviewed by City Attorney N/A Reviewed by Finance Dept. N/A 2 ORDINANCE NO. 2015- AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA, AMENDING SECTION 7-9 OF THE CITY OF OCOEE CODE, RELATING TO ESTABLISHING AN OPTIONAL PROCESS FOR RESOLVING CODE ENFORCEMENT FINES AND LIENS; PROVIDING FOR SEVERABILITY; PROVIDING FOR CODIFICATION; AND PROVIDING AN EFFECTIVE DATE. WHEREAS the City Commission of the City of Ocoee, Florida, (the "City Commission") desires to amend Section 7-9 of the City of Ocoee Code to establish a means for negotiation and resolution of code enforcement fines and liens (the "Ordinance"). NOW,THEREFORE, BE IT ENACTED BY THE CITY COMMISSION: Section 1. Authority. The City Commission has the authority to adopt this Ordinance pursuant to Article VIII of the Constitution of the State of Florida and Chapter 166, Florida Statutes. Section 2. Section 7-9. Section 7-9, relating to administrative fines and other code enforcement matters, is hereby amended, as shown (strikethrough portions indicate existing language to be removed, underlined portions indicate new language to be added): 7-9. - Administrative fines; costs of repairs; liens; settlements. A. If the Code Inspector notifies the Board of a failure to comply with a compliance order of the Board by the date set in the order, the Board may issue an order requiring the violator to pay a fine not to exceed $250 for each day the violation continues past the date set by the Board for compliance, and in addition, the fine may include all costs of repairs pursuant to Subsection C of this section. B. If the Code Inspector notifies the Board and the Board so finds that a repeat violation has been committed, the Board may issue an order requiring the violator to pay a fine not to exceed $500 for each day the repeat violation continues, beginning with the date the repeat violation is found to have occurred by the Code Inspector, and in addition, the fine may include all costs of repairs pursuant to Subsection C of this section. C. In addition, if the violation is a violation described in § 7-6D of this chapter, the Board shall notify the City Commission, which may make all reasonable repairs which are required to bring the property into compliance and charge the violator with the reasonable cost of the repairs along with the fine imposed pursuant to this section. Making such repairs does not create a continuing obligation on the part of the city to make further repairs or to maintain the property and does not create any liability against the city for any damages to the property if such repairs were completed in good faith. D. If a finding of a violation or a repeat violation has been made as provided in this chapter, a hearing shall not be necessary for issuance of the order imposing the fine. E. In determining the amount of the fine, if any, the Board will consider the following factors: (1) The gravity of the violation. (2) Any actions taken by the violator to correct the violation. (3) Any previous violations committed by the violator. F. - - : :. . . - . -- .. - . .. . -• - . City policy is to accomplish compliance with the City Code as economically as possible for all parties. Therefore, after a property owner has been properly noticed of a violation but prior to a hearing before the Board, the City Manager or designee is authorized to enter into negotiations and a settlement agreement with the violator. Failure of the violator to comply with the settlement agreement or a recurrence of the violation shall result in prosecution of the original violation as well as the repeat violation, if applicable. The City Manager or designee shall establish the perimeters to be followed for settlement negotiations. Pre-hearing settlement negotiations shall not be grounds for continuing or otherwise delaying a hearing on the violation unless agreed to in writing by both parties. G. Following the hearing before the Board, a A certified copy of an order imposing a fine, or a fine plus repair costs, may be recorded in the official county records and will thereafter constitute a lien against the land on which the violation exists and on any other real or personal property owned by the violator. Upon petition to the Circuit Court, such order shall be enforceable in the same manner as a court judgment by the sheriffs of Florida, including execution and levy against the personal property of the violator, but such order shall not be deemed to be a court judgment except for enforcement purposes. A fine imposed pursuant to this chapter shall continue to accrue until the violator comes into compliance or until judgment is rendered in a suit filed pursuant to this section, whichever occurs first. A lien arising from a fine imposed pursuant to this section runs in favor of the City Commission, and the City Commission may execute a satisfaction or release of a lien entered pursuant to this section, unless otherwise provided herein. After three months from the filing of any such lien which remains unpaid, the Board may authorize the City Attorney to foreclose on the lien or to sue to recover a money judgment for the amount of the lien plus accrued interest. No lien created pursuant to the provisions of this part may be foreclosed on real property which is a homestead under § 4, Article X of the State Constitution. The money judgment provisions of this section shall not apply to real property or personal property which is covered under § 4(a), Article X of the State Constitution. H. After an order assessing a fine against a violator has been issued and compliance has been achieved, nothing herein shall prohibit the Board, City Commission, or City Manager or designee from reducing, eliminating, satisfying, or otherwise settling the assessed fine or lien. The City Manager or designee shall establish the procedures to be followed for reducing, eliminating, satisfying, or otherwise settling the assessed fine or lien and for recording satisfaction thereof in the official county records. ICI. The lien will be automatically extinguished 20 years after the date the certified copy of the order imposing a fine is recorded, unless within that time an action is commenced pursuant to § 7 9G of this chapter in a court of competent jurisdiction. In an action to foreclose on a lien or for a money judgment, the prevailing party is entitled to recover all costs, including a reasonable attorney's fee, that it incurs in the action. The City Commission shall be entitled to collect all costs incurred in recording and satisfying a valid lien. Commencement of an action pursuant to § .7-9G of this chapter will not cause a continuation of the lien as against creditors or subsequent purchasers for valuable consideration without notice, unless a notice of lis pendens is recorded. J. The Clerk is authorized and empowered to issue certified copies of the Board's records. J: K. Actions for money judgments under this chapter may be pursued only on fines levied after October 1, 2000. Section 3. Severability. If any clause, section, or other part of this Resolution shall be held by any court of competent jurisdiction to be unconstitutional or invalid, such unconstitutional or invalid part shall be considered as eliminated and in no way affecting the validity of other provisions of this Resolution. Section 4. Codification. It is the intention of the City Commission that the provisions of this Ordinance shall become and be made a part of the Code of Ordinances of the City and that sections of this Ordinance may be renumbered or relettered and the word 'ordinance' may be changed to 'chapter', 'section', article', or such other appropriate word or phrase in order to accomplish such intentions. Regardless of whether such inclusion in the Code is accomplished, sections of this Ordinance may be renumbered or relettered and the correction of typographical errors that do not affect the intent may be authorized by the City Manager, without need of public hearing, by filing a corrected and recodified copy of the same with the City Clerk. Section 5. Effective Date. The Annual Rate Resolution shall take effect immediately upon its passage and adoption. PASSED AND ADOPTED this day of , 2015. APPROVED: ATTEST: CITY OF OCOEE, FLORIDA Beth Eikenberry, City Clerk John Grogan, Mayor (SEAL) ADVERTISED ON READ FIRST TIME READ SECOND TIME AND ADOPTED BY THE OCOEE CITY COMMISSION UNDER AGENDA ITEM NO. AT A MEETING HELD ON . FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, FLORIDA. APPROVED AS TO FORM AND LEGALITY THIS DAY OF , 2015. SHUFFIELD, LOWMAN &WILSON, P.A. By: City Attorney