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City Council

Regular Meeting

DeKalb, IL · October 10, 2012

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Minutes

MINUTES SPECIAL MEETING OF CITY COUNCIL CITY OF DEKALB October 10, 2012 The City Council of DeKalb, Illinois, held a Special Meeting on Wednesday, October 10, 2012 at 6:00 p.m. in the Council Chambers of the DeKalb Municipal Building, 200 South 4th Street, DeKalb, Illinois. Notice was given and the meeting was called pursuant to the provisions of Chapter 2, Section 2.05 of the Municipal Code of the City of DeKalb, Illinois. Mayor Povlsen called the meeting to order at 6:00 p.m. A. ROLL CALL: City Clerk Wright called the roll and the following members of City Council were present: Mayor Kris Povlsen, Alderman David Jacobson, Alderman Tom Teresinski, Alderman Kristen Lash, Alderman Brendon Gallagher, Alderman Ronald Naylor, Alderman David Baker and Alderman Monica O’Leary Also present were: Mark Biernacki, City Manager, Dean Frieders, City Attorney, Gene Lowery, Police Chief, Eric Hicks, Fire Chief, T.J. Moore, Public Works Director; Joel Maurer, Assistant Direct of Public Works – Engineering/Transportation; Jeff Birtell, I&T Technician and Diane Wright, City Clerk. B. APPROVAL OF AGENDA – ADDITIONS/DELETIONS MOTION Ald. Teresinski moved to approve the Agenda; seconded by Ald. Lash. Motion carried on voice vote. Mayor Povlsen declared the motion passed. Mayor Povlsen stated the first meeting regarding these topics was held in December 2010 and much input has been provided since that time. He thanked the Task Force, DeKalb Area Rental Association (DARA) and staff for their work. Additionally, he said, outside consultants were utilized, and other communities were visited in order to have as much data as possible. We are in almost total agreement, he said, with the exception of deciding on licensing or registration. He added that staffing needs also must be discussed. He stated he doesn’t want the costs placed on “the backs” of landlords. C. REPORT ON CITY STAFF/DARA MEETING RESULTS Mr. Biernacki stated that staff was directed to determine staffing needs. He added that he has met with DARA several times, and it was agreed that the crime free lease addendum be a requirement, along with the crime free training component, and the disorderly house/chronic nuisance ordinance, subject to changes as follows. The City would be given authority to prohibit rental of problem properties while fees, penalties, etc. are pending. Additionally, the City would be given authority to conduct interior inspections of the property and implement a restitution component where the City could recover certain costs and allow for additional fines and penalties. Licensing is no longer being considered, he added. The sidewalk inspection program (Level II) would be a routine inspection of all residential buildings on a cyclical basis. The disagreement is whether registration is annual or a one-time component where the landlords are only required to re-register if the owner or property management changes. Staff recommends annual registration. DARA still opposes any fees; in lieu of fees, they suggested a vehicle sticker requirement for all vehicles registered in the City. This would require significant staff research, Mr. Biernacki said. Mr. Biernacki stated that staff suggests the sidewalk inspection be implemented on a three-year cycle; 3,000 in year one, 3,000 in year two and the remaining 3,000 in year three. In the initial years the workload will be higher than in subsequent years, he said. Each of the three (3) inspectors would be responsible for inspecting 1,000 buildings per year. Regarding program cost recovery; he suggested that one-half be borne by the General Special Meeting October 10, 2012 Page 2 of 4 Fund and the other half by program fees. It is recommended that the rooming houses be eliminated from this program in that they are already licensed and inspected, and the 180 Housing Authority units also be eliminated. D. STAFFING, COST RECOVERY AND IMPLEMENTATION PLAN FOR THE PROPOSED NEW HOUSING ORDINANCES. Mr. Biernacki stated that instead of a decentralized staffing effort from various departments, staff recommends that a “Housing Registration and Inspection Bureau” be implemented as part of the Police Department with five (5) people: Program Coordinator, Office Associate and three (3) Inspectors. He added that the estimated annual cost of salaries, benefits, and ongoing staffing costs are $454,000. Also there is a one-time initial cost estimated at $135,000 including computers, phones, and vehicles. Based on assumption that one -half of the costs are borne by General Fund and the other half by program fees, $227,000 would be divided between the two sources. Mr. Biernacki discussed the options presented and noted that in Option 1 approximately $25 would be charged per unit per year as a registration fee. Option 2 (per building) has a flat fee of $75 with additional charges per unit in the multi-family buildings. Regarding the timeline for implementation, Mr. Biernacki stated that the ordinances could be adopted in November; Program Coordinator and Office Associate to be hired in January 2013. The other staff hires and training phases would occur throughout 2013, he said. He noted that Staff and DARA agreed to all terms except the manner of funding. Mr. Biernacki stated that it is clear and DARA agrees that from a property maintenance point of view, there are as many issues in the owner-occupied buildings. Therefore, it is recommended that all residential buildings be included, he said. Ald. Baker asked if everyone agrees to the interior inspections. Mr. Biernacki replied that if there is a problem property – it gives the staff authority to inspect on the 3rd strike. Mr. Frieders added the three strikes are in the disorderly housing ordinance – the 3rd strike is when all remedies have been invoked. If there are recurring issues and they aren’t cooperating with the City and not taking any steps to properly manage properties, it is an issue that needs to be addressed aggressively, he said, and added that he believes both staff and DARA agrees to this. The offenses are listed in the disorderly housing ordinance, he said. Ald. Baker stated some of the landlords do not even live in DeKalb; Mr. Biernacki replied that either the landlord or local property manager has to complete the training. The proposal is for all rental units – when you start eliminating some it loses its impact, he said. If they can’t attend one-day training, it means they cannot come to inspect their property, he added. Ald. O’Leary raised a concern that after a certain number of strikes, the City will enter a house without warrant. Mr. Biernacki stated the proposal is agreeable to both staff and DARA. This addresses problem landlords without affecting the majority, he said. Mr. Frieders added that all the options discussed are enforceable including the inspections. Also, he said, there are so many steps before the final step is taken. He added he has no concerns it would not be enforceable. Ald. O’Leary asked what problem is in DeKalb that this is needed. Mayor Povlsen stated that the process began because the one complaint received is property maintenance with the behavior of some landlords not taking care of properties. Problems seen are in high density rental areas, he said. Ald. Jacobson stated that it is easy to define problems but to send an army of staff at a price we cannot afford is difficult. He noted there are three basic issues: property maintenance issues which lead to property management and crime issues. He added we already have tools to utilize: code enforcement and police, and doesn’t see the need to add more. Ald. Teresinski stated he could not disagree more with Ald. Jacobson. The recent crime data and deterioration of housing stock and increase in calls are all indicative of long term systemic decline, he said. He added that he appreciates the effort to deal with the problems identified. Throwing police in the situation is naive – it is a short term band-aid to the problem that exists, he said. He Special Meeting October 10, 2012 Page 3 of 4 also suggested implementing a 3-strike program with code enforcement element. If a landlord isn’t taking care of code issues, that should be taken care of also, he said. All major universities already have it in place. Ald. Lash agreed almost completely with Ald. Teresinski and added that placing the issue under disorderly house doesn’t make sense. Mr. Biernacki stated this comes from compromise and wasn’t component of 3rd strike. Mr. Frieders added that by the time we are at strike 4 we are dealing with a landlord problem; they are not resolving problems with their own property. The good property managers will resolve the issues on their own and the City will not be involved in the process, he said. When a property goes to the last step, it is good indication there are underlying property maintenance issues. When you get to 4th strike it is obvious there is not only problem with a tenant, but with the landlord and property as well, he said. Ald. Lash stated she does not deny it is a landlord problem; but believes it should go under property maintenance. Ald. Teresinski stated he would want separate consideration that has severity with inspection aspects. Mr. Biernacki stated that staff doesn’t want to shut down entire complex because of one issue in one unit. However, we have had issues with one complex and perhaps then all units would need to be looked at. Mr. Frieders added that there has to be some level of staff discretion on how these would be pursued. This isn’t intended to be used as a trap – we will only use the tool when a landlord is doing nothing with the strikes, he said. Ald. Naylor stated he concurred with Ald. Teresinski. He noted that real property maintenance issues not being addressed to maintain property and would like to see something similar for property maintenance. With a licensing aspect, the City can prohibit the right to rent more expeditiously, he said. Mr. Frieders stated that there are some properties that have long standing histories of code violations, and some choose to ignore the administrative hearing process and fines. We are looking at worst offenders and will continue to do so, he added. Ald. Gallagher suggested that out-of-state landlords utilize the cell phones for training. He added that he supports Option 2A which is the most fair of all proposals, he said. Additionally, he said, he supports annual registration. The initial plan of five staff is ambitious, he said, but noted that the City cannot put this “on the backs of the staff now.” In the beginning it seems costly, but will improve the rental stock. We need to fix the housing stock and the process will vet out the bad landlords and improve the City as a whole, he said. Ald. Jacobson stated that we have a problem and have to find a way to fix it, but someone sitting in an office in City Hall will not fix it. He added that he lives in one of the worst neighborhoods and understand there is a problem. There are staffing issues in police, code, and clerical at this time, he added. He suggested empowering the departments to make the decisions and allow them to fix the global staffing issues instead of creating another separate department. Ald. Baker suggested that the Program Coordinator also inspect and perform his own clerical duties. Mr. Biernacki stated he does not know at this time if three inspectors will be enough. It is in initial years that violations will be found, he said. He noted that if Council wants this to be effective, this is his recommendation along with that of staff. Ald. Baker stated that we need more police. If the neighborhoods aren’t safe people will not want to live here and will move out. He agreed with Ald. Jacobson that efforts should not be duplicated. Mr. Biernacki stated that one-half of one full time employee is involved in property maintenance now. We need to add resources to the issue, he said. Also, he said, if Council wants to get at least 1/3 of the town done every three years this is what is needed. If Council wants ¼ done then reductions can be made. Ald. Baker stated that the purpose of registration is that the landlord can be contacted, and only needs to be done one time to get email addresses. He added that all these costs will be borne by the tenant. Mr. Biernacki stated that is a major policy issue for Council and added that he proceeded with the assumption Council wanted ½ by General Fund and ½ by fees. Special Meeting October 10, 2012 Page 4 of 4 Mayor Povlsen stated that it appears we have majority of Council wanting to move forward and that would be my recommendation. Ald. Naylor concurred with the Mayor and added he would like to see licensing implemented more expeditiously, and wants to see property maintenance with similar impact as in the nuisance ordinance, but will support staff’s recommendation. He added that he believes it will take the five people to implement and manage the program. He noted that this is one step toward many efforts the City is dealing with. He added that he supports Option 2B. Ald. Teresinski also supported Option 2B. Ald. Lash stated her preference is Option 1. Mr. Biernacki stated that staff will prepare the ordinances for the November 13 meeting for first reading. F. ADJOURNMENT MOTION Ald. Gallagher moved to adjourn the meeting; seconded by Ald. Lash. Motion carried on voice vote. Mayor Povlsen declared the meeting adjourned at 7:24 p.m. Mayor Povlsen declared the meeting adjourned. DIANE K. WRIGHT, City Clerk Approved by City Council October 22, 2012

Agenda

CALL AND NOTICE SPECIAL MEETING OF THE CITY COUNCIL October 10, 2012 6:00 p.m. A special meeting of the City Council of the City of DeKalb, Illinois, is hereby called for Wednesday, October 10, 2012 at 6:00 p.m., in the City Council Chambers, of the DeKalb Municipal Building, 200 South 4th Street, DeKalb, Illinois. A. ROLL CALL B. APPROVAL OF AGENDA – ADDITIONS/DELETIONS C. REPORT ON CITY STAFF/DARA MEETING RESULTS D. PROPOSED STAFFING, COST RECOVERY AND IMPLEMENTATION PLAN FOR THE PROPOSED NEW HOUSING ORDINANCES. E. ADJOURNMENT This notice is given and this meeting is being called pursuant to the provisions of Chapter 2, Section 2.05 of the Municipal Code of the City of DeKalb, Illinois. Dated: October 4, 2012 _________ DIANE K. WRIGHT, City Clerk CM Memo #012-093 DATE: October 3, 2012 TO: Mayor City Council FROM: Mark Biernacki, City Manager SUBJECT: City Staff/DARA) Meeting Results and Staffing and Implementation Plan for the Proposed New Housing Ordinances At the last special meeting, the City Council directed staff to prepare information and alternatives on how to staff and implement the various new housing ordinances that are under consideration. Since then, the Police Chief, City Attorney, and the City Manager have met with representatives of the DeKalb Area Rental Association (DARA) on October 2nd to try and come up with a compromise set of ordinances that are acceptable to the parties. I. City Staff/DARA Meeting Results A. The following was agreed to:  Crime Free Lease addendum required  Crime free training required by all initially, then on the same three year cycle that property sidewalk inspections are conducted.  Disorderly House/Chronic Nuisance ordinance is agreeable as written subject to changes as follows.  Registration (not licensing) is agreed to, provided the chronic nuisance/disorderly house ordinance is re-drafted so that after the third (3rd) strike, the City would be given the authority to prohibit the rental of the problem property while fees, penalties, recovery of costs, etc. are still pending. The City would also be given the authority to conduct interior inspections of the property, institute a charge-back/restitution component wherein the City could recover extraordinary costs for police and other public safety services, and allow for the imposition of additional fines and penalties.  Sidewalk exterior inspection program is agreed to as written. B. The following was not agreed to:  The parties were not able to come to agreement on the method to fund the resources needed to implement these housing programs. DARA still opposes an annual program. They are still proposing a one- time registration program with nominal fees and are proposing an annual vehicle sticker program. Staff will research the efficacy of a vehicle sticker program in the coming weeks, but will not have that information in time for the October 10th special meeting. C. It is likely that additional meetings with City staff and DARA will be held in advance of the October 10th special meeting. Staff will report on any changes in the above items at that time. II. Proposed Staffing, Cost Recovery and Implementation Plan. A. This information has been prepared using the following assumptions (results can be modified if the Council desires the use of alternative assumptions):  Adoption of the Crime Free Lease Addendum Requirement along with mandatory training as noted above;  Adoption of the Chronic Nuisance/Disorderly House ordinance as noted above;  Adoption of a Registration ordinance requiring annual re-occurring applications and fees;  Adoption of a “sidewalk” inspection program of all housing units (both rental and owner occupied) on a three (3) year cycle where one-third (1/3), or 3000 buildings, would be inspected in year one, 3000 buildings in year two, and the remaining 3000 buildings in year three;  One half of this program’s costs would be borne by the City’s General Fund using funds already provided in the 5 year financial plan (along with some lesser, to-be- identified sources of funds). The other half of this program’s costs would be recovered by annual fees collected at the time of registration; and,  The Housing Authority’s 180 units in the three (3) buildings that they own and the ninety (90) privately-owned rooming houses that exist in our community would be exempt from the new registration and inspection programs (they are already regulated through other federal and local programs). B. Instead of a decentralized effort with staff from various departments playing a role in this program’s implementation, it is proposed that there be created a “Housing Registration and Inspection Bureau” and make it a part of the Police Department. This Bureau would be staffed with five (5) people as follows:  One (1) Program Coordinator who would provide overall supervision, landlord/police liaison services, and crime free training;  One (1) Office Associate who would provide clerical and office support, record keeping, and data control; and,  Three (3) Inspectors, each of which would be responsible for inspecting 1000 buildings each year, conducting follow-up inspections, attending court and administrative hearings, conducting general City-wide property maintenance enforcement tasks, etc. C. This program would be implemented in stages throughout the 2013 calendar year. This plan, options on cost recovery, and other material and data are outlined in more detail in the various attachments to this memo. Attachments C: Department Heads Staffing Plan For the Implementation of New Housing Related Ordinances Position 1 - Program Coordinator $123,000 (salary & benefits) crime free training, policellandlord liaison, supervision 1 - Office Associate I $ 56,000 (salary & benefits) clerical, record keeping, support 3 - Inspectors/CSO's $200,000 ($66,000 each/salary & benefits) Total Ongoing Annual Staffing Costs $379,000 Annual office costs (phones, gas, maintenance, postage, etc. $ 75,000 Total Annual Cost $454,000 EguipmentlMiscellaneous Hardware/Software $ 25,000 Office EquipmentlPhones $ 30,000 Vehicles (4 @ $20,000 each) $ 80,000 Total Initial One-Time Start-Up Cost $135,000 Staffing Plan for New Housing Ordinance 09-25-12 COST FOR HOUSING PROGRAM EFFECTIVE 1/1/13 HOUSING/CRIME FREE COORDINATOR FICA MEDICARE INSURANCE IMRF SALARY (CITY) (CITY) (CITY) 21.83-JAN CLOTHING HRLY RATE TOTAL 41.03 80,000.00 4,960.00 1,160.00 18,519.17 17,464.00 550.00 122,653.17 (FAMILY) BU ILDING INSPECTOR I FICA MEDICARE INSURANCE IMRF SALARY (CITY) (CITY) (CITY) 21.83-JAN CLOTHING HRLY RATE TOTAL 20.64 40,253 .85 2,495.74 583.68 13;707 .94 8,787.42 550.00 66,378.62 (SINGLE + 1) 3 inspectors 199,135.87 OFFICE ASSOCIATE I FICA MEDICARE INSURANCE IMRF SALARY (CITY) (CITY) (CITY) 21.83-JAN CLOTHING HRLY RATE TOTAL 16.62 32,401.20 2,008.87 469 .82 13,707.94 7,073 .18 55,661.01 (SINGLE +1) 1 GRAND TOTAL 377,450.061 Cost Recovery Plan For the Implementation of New Housing Ordinances A. One half of the Annual Program Costs would be Covered by Fees $454,000 2 $227,000 Option 1 (per unit method) 9114 $ 24.90 per unit per year Option 2 (per building method) Single Family Rentals 1548 x $75 $116,100 or x $50 $ 77,400 Duplexes 475 x $75 $ 35,625 or x $50 $ 23,750 Multi Family Building 558 x $75 $ 41,850 or x $50 $ 27,900 plus $5.26/Unit $ 33,425 plus $15.42/Unit $ 97,950 $227,000 $227,000 B. One half of the Annual Program Cost would be Covered by General Fund $454,000 2 $227,000 • The City's 5 year financial plan identifies funds for the implementation of new housing ordinances in the General Fund conti ngency line item, as follows: FY - 2013 $150,000 FY - 2014 - 2017 $ 190,000 (average is budgeted in each of the four years) • Difference between the $227,000 and these budgeted funds could be absorbed by other General Fund sources. Cost Recovery Plan-New Housing Ordinances 09-26-12 Proposed Implementation Timeline for New Housing Ordinances November, 2012 • Ordinances adopted January, 2013 • Hire Program Coordinator and Office Associate February - April, 2013 • Crime free training for owners of Cycle 1 rental units (representing approximately 3200 rental units) May 1, 2013 • Registration or licensing application and fees due from Cycle 1 rental unit owners May, 2013 • Hire Inspectors June - July, 2013 • Begin "sidewalk" inspection program June - August, 2013 • Crime Free training for owners of Cycle 2 rental units (3200 units) September 1, 2013 • Registration or licensing application and fees due for Cycle 2 rental unit owners October - December 2013 • Crime Free training for owners of Cycle 3 rental units (3200 units) January 1,2014 • Registration or licensing application and fees due for Cycle 3 rental unit owners Proposed Implementation Timeline New Housing Ordinances 09-26-12 CITY OF DEKALB RESIDENTIAL UNITS & BUILDINGS UNITS Housing Type Rental Owner TOTAL Single Family 1,548 6,085 7,633 Two Family 1,217 267 1,484 Multi-Family 6,349 6,349 TOTAL 9,114 ° 6,352 15,466 BUILDINGS Housing Type Rental Owner TOTAL Single Family 1,548 6,085 7,633 Two Family 475 267 742 Multi-Family 558 558 TOTAL 2,581 ° 6,352 8,933 FY2012 - 2016 General Fund Expenditure Projections FY 2011 FY 2012 FY 2012 FY2013 FY2014 FY2015 FY2016 FY2017 Actual Budget Estimate Proiection Projection Proiection Proiection Pro'edion 1 8384 TOWING 3,825 3,500 3,500 3,500 3,500 3,500 3,500 3,500 1 8385 TAXES, LICENSES, & FEES 15,397 2,000 14,646 2,000 2,000 2,000 2,000 2,000 1 8386 TREE PLANTING/FORESTRY 28,580 32,000 45,000 32,000 32,000 32,000 32,320 32,966 1 8387 WEATHER SERVICES 4,649 5,500 5,000 4,500 4,500 4,500 4,500 4,500 1 8399 CONTRACTUAL SERVICES, NEC 67359 162150 162,450 171,500 173,215 174,947 176,697 178,464 TOTAL CONTRACTUAL SERVICES $1,119688 $1 336,237 $1301304 $1313,530 $1308873 $1314,488 $1 321,097 $1,326021 1 8450 CONTRACTED SERVICES 224,589 464,100 517,795 411,960 416,080 417,120 419,205 423,397 1 8471 SU RETY BONDS & IN SURANCE 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 ~ ~ 1 8481 UTILITY TAX REBATE 15,720 0 0 0 0 0 0 0 1 8497 CONTINGENCIES 36871 120,000 134,104 375,000 196250 186,250 196250 188213 TOTAL OTHER SERVICES $327180 $634 100 $701 899 $836,960 $662,330 $653,370 $665,455 $661,610 1 8510 OFFICE FURNITURE & EQPT 4,418 3,300 1,970 1,800 1,800 1,800 1,800 1,800 1 8515 EOP EQUIPMENT 3,044 3,000 4,200 8,500 8,500 8,500 8,500 8,500 1 8540 MCHNRY, IMPLTS, & MJR TOOLS 20,443 22,000 20,767 19,400 19,400 19,400 19,400 19,400 1 8580 TELEPHONE & RADIO EQPT 32080 8400 10918 5,575 5,575 5,575 5,575 5,575 TOTAL EQUIPMENT $59,985 $36700 $37,855 535,275 $35,275 $35,275 $35,275 $35275 1 9032 TRSF TO CAP ITAL PROJS FUND 704,000 200,000 200,000 398,500 125,000 100,000 100,000 100,000 1 9033 TRSF TO PUBLIC SAFETY BLDG FUND 10,358 200,000 200,000 0 350,000 350,000 350,000 350,000 1 9034 TRSF TO FLEET FUND 0 200,000 200,000 155,000 155,000 155,000 155,000 155,000 1 9036 TRSF TO DEVELOPMENT SERVICES 450,787 0 0 0 0 0 0 0 1 9046 TRSF TO ECONOMIC DEV. FUND 28,808 17,150 17,150 0 0 0 0 0 1 9047 TRSF TO WORKERS COMPENSATION 767,000 711,914 7 11,914 0 0 0 0 0 1 9048 TRSF TO AIRPORT FUND 2,140,000 250,000 250,000 328,750 328,750 328,750 328,750 200,000 1 9050 TRSF TO EQUIPMENT FUND 0 0 0 2,000 2,000 50,000 50,000 50,000 1 9061 TRSF TO TRANSPORTATIO N FUND 0 5,313 1,992 1,556 1,000 ',000 1,000 1,000 1 9220 TRSF TO GEN FUND DEBT SRV 294286 ',011,100 1012,083 1,011 680 998000 998,000 998000 998,000 TOTAL TRANSFERS OUT 54,395239 $2,595477 $2593,139 $1897,486 $1 ,959,750 $1,982,750 $1,982750 $1,854,000 TOTAL ALL EXPENDITURES $31,579,459 $30,137,880 $29,756,307 $29,591,367 $29,798,700 $30,521,417 $31,298,459 $31,922,595 Page 1 of Biernacki, Mark From: Shelly Perkins [sperkins@dekcohousing.com] Sent: Tuesday, September 25,20121:17 PM To: Biernacki, Mark Subject: RE: unit count We have 180 Public Housing Units within the City. 150 at Golden Years, 14 at Lewis Court and 16 at Garden Estates. From: Biernacki, Mark [mailto:Mark,Biernacki@CITYOFDEKALB,com] Sent: Tuesday, September 25,20121:15 PM To: Shelly Perkins Subject: unit count Hi Shelly, Can you remind me again how many apartment units the HA owns in the City? I'm trying to calculate per unit registration fees for the new housing programs and need to net out these units from the totals if we end up exempting them from the program. Thanks Mark 9/2512012