Item T3BOARD OF COUNTY COMMISSIONERS
County of Monroe A
Mayor Heather Carruthers, District 3
f
Tine Florida Keys (, S �� Mayor Pro Tem George Neugent, District 2
t� ) ��` ��
�' Danny L. Kolhage, District 1
David Rice, District 4
Sylvia J. Murphy, District 5
County Commission Meeting
November 22, 2016
Agenda Item Number: T.3
Agenda Item Summary #2264
BULK ITEM: No DEPARTMENT: County Attorney's Office
TIME APPROXIMATE: STAFF CONTACT: Steve Williams (305) 289 -2584
9:45 a.m.
AGENDA ITEM WORDING: Approval of a mediated settlement agreement for Circuit Court
case no.: 14- CA- 415 -P, styled Monroe County v. Gilbert L. Sanchez and Dalia Sanchez, regarding
real property located at 224 Tarpon Street, Tavernier, Florida.
ITEM BACKGROUND:
"Lawyers are the only persons in whom ignorance of the law is not punished." — Jeremy Bentham.
While the 18 century philosopher may not have been contemplating Code Compliance appeals
when he coined the phrase, it appears to be quite relevant in a code case that allowed a $15,000 fine
to become a $2,000,000 lien.
On August 5, 2010 a vacation rental inspection conducted by the Code Compliance Department at
224 Tarpon Street in Tavernier confirmed that the property was being rented as a short term rental
for less than 28 days and case number CE10080044 was opened by the Code Compliance
Department. A Stipulated Agreement was entered into on January 27, 2011 between the property
owners and Monroe County Code Compliance. The property owners admitted to the violations and
agreed to pay a one -time fine in the amount of $2,000.00. per the final order signed by Special
Magistrate. The property owners Gilbert and Dalia Sanchez were to immediately cease and desist all
vacation rental activity including the advertising and /or holding out of the property for any period of
less than 28 days. The property owners gained compliance and paid the one -time fine as ordered.
This case remains open for lack of payment of costs of prosecution which currently totals $360.89. A
lien was filed on March 3, 2011 for the lack of payment.
On September 9, 2011 Code Compliance again received a complaint regarding the use and the
advertisement of the subject property for periods of less than 28 days and case number CE11090038
was opened by the Code Compliance Department. The violations were cited as repeat violations for
rental of less than 28 days and advertising for rentals of less than 28 days. The case was scheduled
for a Special Magistrate hearing on May 31, 2011. The property owners did not appear at the hearing
and did not contest the violations. However, their attorney was present at the hearing only to argue
that the violations were not irreparable and irreversible in nature and therefore did not require a one-
time fine in the amount of $15,000.00. After the hearing, the Special Magistrate found the property
owners in violation of two repeat violations, ordered the property owners to immediately cease and
desist all vacation rental activity including advertising and or holding out the property for any period
of less than 28 days and imposed a daily fine in the amount of $1,000.00 per day per violation.
Additionally, the Special Magistrate found the violations to be irreparable and irreversible in nature
and ordered a one -time fine in the amount of $15,000.00. This case was not compliant at the time of
the compliance date ordered by the Special Magistrate. The compliance inspection was conducted on
June 25, 2012.
The property owners appealed the Order on July 2, 2012 requesting that the appellate court reverse
the final order by the Special Magistrate based on a finding that renting a home for less than 28 days
is not "irreparable or irreversible ". The County argued that violations of the vacation rental codes
are irreparable and irreversible in nature because of the effect the illegal activity has on the
surrounding neighborhood. The County also pointed out that the property owners did not deny or
contest the violations. The Circuit Court, sitting in its appellate capacity, ruled in favor of the County
by affirming the Special Magistrate's Order. The property owners filed an appeal of the Circuit
Court's Appellate Opinion to the 3 rd DCA on October 24, 2013. Following review of the appellant's
petition for writ of certiorari and the responses and reply, the petition was denied on July 2, 2014.
Court - ordered mediation was held on October 5, 2016 and the Sanchez's were represented by new
counsel. For the first time, the County heard the Sanchez's explanation of the history of events that
led to the large accumulated fines. What became abundantly clear during mediation discussions is
that the Sanchez's were not kept apprised of the legal peril and financial risk they were placed in
during the course of their appeals of their cases. In fact, they assert they were expressly informed by
their counsel not to attend Code hearings and appeals arguments before the Court. It is their position
that if they had known the full depth and breadth of their exposure and the situation, they would
have simply paid the relatively small $15,000 fine and come into compliance. It is only upon the
advice of their counsel that the fine went unpaid and the fines began to accrue to such vastly large
sums.
The civil action was filed on June 9, 2014. The property owners gained compliance on code case
CE11090038 on September 19, 2014 for violation 130 -83(B) (accruing fines of $1,000 per day for
840 days) and June 8, 2016 for violation 134- 1(K)(1) (accruing fines of $1,000 per day for 1461
days) for a fine of $2,316,000.00 and a one -time fine of $15,000.00 plus costs of $1,108.30 and costs
of $360.89 for code case CE10080044, totaling $2,317,469.019.
On October 5, 2016 the parties mediated the case and a tentative agreement was reached and
conditioned upon approval of the BOCC. The parties agree to an amended fine to $25.00 per day, for
1,461 days, which equals $36,525.00 and a one -time fine of $15,000.00. The County's hard costs
remain to be determined (however they are approximately $1,469.19 to date), and will be paid by
Defendants. The Defendants will pay the one -time fine of $15,000.00 and the County's hard costs
within 30 days of execution of the agreement. The fine of $36,525.00 will be paid in twelve (12)
equal installments, beginning sixty (60) days after the execution of the agreement (October 5, 2016).
The total settlement figure will be $51,525.00 plus the hard costs.
PREVIOUS RELEVANT BOCC ACTION:
On March 18, 2014 the BOCC approved the filing of an action in Circuit Court.
CONTRACT /AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATION: Approval of mediation agreement.
DOCUMENTATION:
Mediation Agreement (Gilbert & Dalia Sanchez)
FINANCIAL IMPACT:
Effective Date:
Expiration Date:
Total Dollar Value of Contract:
Total Cost to County:
Current Year Portion:
Budgeted:
Source of Funds:
CPI:
Indirect Costs:
Estimated Ongoing Costs Not Included in above dollar amounts:
Revenue Producing:
Grant:
County Match:
Insurance Required:
Additional Details:
If yes, amount:
REVIEWED BY:
Steve Williams
Completed
Bob Shillinger
Completed
Kathy Peters
Completed
Board of County Commissioners
Pending
10/28/2016 11:56 AM
10/28/2016 1:09 PM
10/28/2016 4:54 PM
11/22/2016 9:00 AM
IN THE CIRCUIT COURT OF THE SIXTEENTH JUDICIAL CIRCUIT
IN AND FOR MONROE COUNTY, FLORIDA
Board of County Commissioners, of
Monroe County, Florida
a political subdivision Case No.: 14 -CA -P -415 -P
of the State of Florida
Plaintiff,
V.
Gilbert L. Sanchez, and
Dalia Sanchez
Defendants
MEDIATION AGREEMENT
THIS ACTION having come to mediation as agreed to by all counsel and being
heard by Mediator EUGENE KYLE, ESQ. on the 5th day of October, 2016, at 10:00 a.m.
the parties hereby stipulate and agree to the following matters and/or issues:
The parties agree to an amended fine of $25.00 per day, for 1,461.00 days, which
equals $36,525.00, and a one -time fine of $15,000.00. The County's hard costs remain to
be determined, and will be paid by Defendants. The Defendants will pay, in addition to
the $15,000.00 down payment, the County's hard costs, all within thirty (30) days of
execution of this agreement. The remainder of the fine, which is $36,525.00, will be paid
in twelve (12) equal installments, beginning sixty (60) days after the execution pf this
agreement.
All parties hereto understand and agree that Plaintiff's counsel will present the
above terms as a settlement option to the Plaintiff, and that the validity of this agreement
is subject to the approval of the Board of County Commissioners. If it is not so approved
as an acceptable settlement, then this agreement shall be null and void.
The parties further agree:
There is good and valuable consideration for this agreement.
2. The parties have entered into this agreement knowingly, freely, and
voluntarily, having determined that they have adequate information upon
which to make informed decisions and having decided that it is in their best
interests to amicably resolve this action.
3. The Mediator has given no legal advice to either party.
4. Time is of the essence.
5. Each party will cooperate with the other and execute any documents necessary
or convenient to the effectuation of this agreement.
6. Except as may otherwise be specifically stated herein, this is the entire
agreement between the parties to this date. There are no promises or
understandings except as set out herein. Any prior understandings are
repudiated.
7. Neither party is under coercion or duress. Neither has been forced into this
agreement or threatened in any way.
8. Neither party knows of any fact or circumstance, which would cause this
agreement to be void or unenforceable.
9. Each party intends to be bound by this agreement and provides that it is
binding on their heirs, beneficiaries, successors and assigns.
10. This agreement is effective upon signing.
All matters raised at the Mediation Conference remain privileged and
confidential, unless otherwise agreed to by all parties and ordered by the Court.
Dated this `) day of October, 2016.
Sign ature_ ffPPlaintiff s Counsel, Steven Williams, Esq.
Z
Signature of Defendant's Counsel, Robert ' on; Jr. , Esq.
Signature of Defendant, Dalia Sanchez