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2009-27081 ResoRESOLUTION NO. 2009-27081 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, SETTLING VARIOUS LIENS ON PROPERTIES IN THE CITY OF MIAMI BEACH PURSUANT TO A DISCUSSION AND RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECTS COMMITTEE ON MAY 5, 2009. ,WHEREAS, the City Commission has directed that the Administration make a concerted effort to review and resolve outstanding liens on properties in the City of Miami Beach; and WHEREAS, a specific series of recommendations for settlement of liens consistent with the direction of the City Commission was discussed by the Finance and Citywide Projects Committee on May 5, 2009 and a recommendation in support of the proposed lien resolutions was approved by the Finance and Citywide Projects Committee and forwarded to the City Commission for action; and NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the liens identified in Attachment "A" (which is attached hereto), as reviewed and recommended to be released by the Finance and Citywide Projects Committee at their meeting on May 5, 2009, are hereby approved to be released and that the City Manager be authorized to execute any and all documents necessary to release the liens listed. PASSED and ADOPTED this 3rd day of June 2009. Ma r A ~A Matti Herrera Bower ' W~ CI CLERK ~•~E~'~~'!'~~®~'~ Robert Parcher F:\cmgr\$ALL\BOB\LiensVariousPropertiesReso6-3-09.doc F~~4 ~ Lfa~it~~~ 8 F~ Ir~~?~~ e~rszrp~ ~w ti4~ 0 s 3 n COMMISSION ITEM SUMMARY Condensed Title: A Resolution settling various liens on properties in the City of Miami Beach pursuant to a discussion and recommendation of the Finance and Citywide Projects Committee on May 5, 2009. Ke Intended Outcome Su orted: Ensure compliance with code within reasonable time frame. Supporting Data (Surveys, Environmental Scan, etc.): N/A Issue: Shall the Mayor and City Commission approve the Resolution? Item Summa /Recommendation: At the May 5, 2009 Finance and Citywide Projects Committee meeting, the members of the Committee had a detailed discussion on outstanding liens on properties in the City of Miami Beach and an initiative being undertaken by the Administration to improve procedural practices for the resolution of liens, as well as to resolve most of the liens. At the May 5, 2009 Finance and Citywide Projects Committee meeting, the Administration described how outstanding liens in the City were being analyzed so as to provide for both full compliance, as well as resolution of the subject liens. Those liens which in the aggregate for any given property exceeded $400,000 have been identified and analyzed in detail by the Administration. This group of liens was the first undertaken and are the largest and among the oldest liens on properties in the City. In each case, the liens have been evaluated to determine if the lien has an appropriate factual and legal basis and to determine if the property in question is in compliance. In the analysis, the Administration was able to identify a number of common categories for which recommendations for settlement/resolution were made to the Finance and Citywide Projects Committee. The two categories of liens for which Commission approval is required are those liens that were associated with tenant violations and for which the tenant is no longer in business. For these liens, a dismissal of the lien in its entirety is recommended because of the extraordinary circumstances associated with the properties and the City's inability to collect from the tenant cited. A property that has liens associated with failure to obtain a 40 year recertification is also recommended for dismissal as the building no longer exists. There are eight (8) liens that fall into the out of business and/or recommended dismissal category and are identified in the attached Exhibit by address, a brief description of the nature of the violation and also a brief description of the rationale for recommending dismissal of the lien. It is recommended that the City Commission approve dismissal of the liens as indicated on the attached Exhibit per the recommendation of the Finance and Citywide Projects Committee and the analysis and due diligence for each of the respective properties undertaken by the City Administration. Financial Information: Source of Funds: Amount Account OBPI Total Financial Impact Summary: Cit Clerk's Office Le islative Trackin Robert C. Middaugh, Assistant City Manager Sign-Offs: Department Director Assi City Manager City anager R JMG T:\AGENDA\2009\June 3\Consent\IiencommSu -3-09.doc m MIAMIBEACH uC/ AfiEIyDA ITEM C~ DATE ^d m MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the City mmission FROM: Jorge M. Gonzalez, City Manager DATE: June 3, 2009 SU6IECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, SETTLING VARIOUS LIENS ON PROPERTIES IN THE CITY OF MIAMI BEACH PURSUANT TO A DISCUSSION AND RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECTS COMMITTEE ON MAY 5, 2009. ADMINISTATION RECOMMENDATION Adopt the Resolution. ANALYSIS At the May 5, 2009 Finance and Citywide Projects Committee meeting, the members of the Committee had a detailed discussion on outstanding liens on properties in the City of Miami Beach and an initiative being undertaken by the Administration to improve procedural practices for the resolution of liens, as well as to resolve most of the liens. Two (2) specific recommendations were made by the Finance and Citywide Projects Committee for the consideration of the full City Commission. The Committee recommended that the City Code be amended to provide that the time of jurisdiction for any City Code violation case be extended for the Special Master from its current one (1) year from the time of imposition of a fine to three (3) years from the date of compliance for a violation. Further, that the Special Master be empowered to establish a maximum fine or a cap on the fines to be incurred by any one property for a specific violation. The Ordinance amending the jurisdiction time for the Special Master, as well as the Special Master's ability to impose a maximum fine is contained in a separate item on this agenda. The second recommendation of the Committee was to support the settlement of a number of liens described further below. Recommended Lien Settlements At the May 5, 2009 Finance and Citywide Projects Committee meeting, the Administration described how outstanding liens in the City were being analyzed so as to provide for both full compliance, as well as resolution of the subject liens. Those liens which in the aggregate for any given property exceeded $400,000 have been identified and analyzed in detail by the Administration. This group of liens was the first undertaken and are the largest and among the oldest liens on properties in the City. In each case, the liens have been evaluated to determine if the lien has an appropriate factual and legal basis and to determine if the property in question is in compliance. In the analysis, the Administration was able to identify a number of common categories forwhich recommendations for settlement/resolution were made to the Finance and Citywide Projects Committee. One category of lien was identified as requiring further action on a part of the Administration to insure compliance. For these liens compliance had not yet been achieved and the Administration is in the process of undertaking an effort to contact each individual property owner to advise them of their lien status and that they must contact the City within a period of thirty (30) days in order to discuss resolution. Those property owners failing to contact the City will be reviewed in detail to ascertain the nature of the violation, any efforts undertaken by the property to achieve compliance and any other circumstances which can be identified before pursuing the City's legal remedies, which may include foreclosure. As with the other settlement categories, properties that contact the City and come into compliance will be evaluated to determine if settlements can be recommended. At that point in time, the properties in this category will be brought to the attention of the Finance and Citywide Projects Committee for a subsequent recommendation. Another category of liens for which no immediate action is required by the City Commission was condominium properties which had achieved compliance and had violations thatwere of a minor and non-life safety nature. For these properties, the Committee recommended that the City recover those costs associated with writing the violation and moving it through the City's system, currently estimated at approximately $2,000 per property, as an offer of settlement. In ali cases this will result in a very substantial reduction of the respective lien as an offer of settlement for the property. Once a settlement has been acknowledged and agreed upon with the property owner, it will be bought to the City Commission attention for approval. A category of liens that also requires no immediate action by the City are those liens which currently are in foreclosure. A number of the properties with outstanding liens in the City are currently in some level of foreclosure activity and as such the City is barred from collecting the lien as most of the liens are subordinate to mortgages. !n al! of these cases the City lien is in a secondary position to the lending institution associated with the respective property. Only one of these properties has been identified as a neighborhood nuisance property and it is being addressed directly by the City's respective enforcement agency to bring it to an improved and safe status. The two categories of liens for which Commission approval is required are those liens that were associated with tenant violations and forwhich the tenant is no longer in business. For these liens, a dismissal of the lien in its entirety is recommended because of the extraordinary circumstances associated with the properties and the City's inability to collect from the tenant cited. A property that has liens associated with failure to obtain a 40 year recertification is also recommended for dismissal as the building no longer exists. There are eight (8) liens that fall into the out of business and/or recommended dismissal category and are identified in the attached Exhibit by address, a brief description of the nature of the violation and also a brief description of the rationale for recommending dismissal of the lien. The Administration has embarked on the next group of liens that are valued between $200,000 and $400,000 and is currently building background files on each respective property to identify and categorize for the Finance and Citywide Projects Committee 2 consideration a future series of recommendations. In this manner, the Administration expects to systematically work through the outstanding inventory of liens such that they are significantly reduced in the months ahead. As indicated earlier, the Administration is also implementing procedural changes at different points in the lien process to assure that property owners are correctly identified, receive contact from the City regarding the violation associated with their property and that appropriate and timely follow-up occurs on behalf of the respective enforcement agencies of the City. This will help assure full knowledge of the violation and that all necessaryfollow-up inspections have been made relative to the violation on the property. These administrative procedures should significantly reduce the number of liens that reach a significant size and eventually an unreasonable burden on any individual property within the community. Taken together with the recommended Ordinance changes under a separate agenda item, the overall lien process in the City of Miami Beach should be made significantly more user friendly and compliance oriented, resulting in less misunderstanding and impacts on the property owners in the City of Miami Beach. CONCLUSION It is recommended that the City Commission approve dismissal of the liens as indicated on the attached Exhibit per the recommendation of the Finance and Citywide Projects Committee and the analysis and due diligence for each of the respective properties undertaken by the City Administration. 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