City Council

MINUTES SPECIAL MEETING OF CITY COUNCIL CITY OF DEKALB August 22, 2012 The City Council of DeKalb, Illinois, held a Special Meeting on Wednesday, August 22, 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 Kristen Lash (arrived at 6:01 p.m.), Alderman Brendon Gallagher, Alderman Ronald Naylor, Alderman David Baker and Alderman Monica O’Leary (arrived at 6:20 p.m.). Absent was Alderman Tom Teresinski. 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 Director of Public Works – Engineering/Transportation, Jeff Birtell, I&T Technician and Diane Wright, City Clerk. Mayor Povlsen announced that Ald. Teresinski advised him he would not be able to attend the meeting. Ald. Lash arrived at 6:01 p.m. Mayor Povlsen gave an overview of the meeting and topics to be covered. B. CONSIDERATION ITEM: 1. SAFE AND QUALITY HOUSING ISSUES a. Crime-free Lease Addendum Requirement Mayor Povlsen stated that this would require that all leases have an addendum to the lease stating the tenant will not engage in any criminal activity. He added that it helps the landlord educate the tenant what is not acceptable and provides the landlord the ability to remove a tenant from a property. The Task Force recommended this addendum for all leases in the community, he said. Mr. Biernacki stated that staff concurs this be included in all residential leases. Additionally, he said, research of other municipalities who have this provision provides that in addition to requiring the addendum, a mandatory seminar on crime-free properties be conducted by the police and attended by the landlord. It would be a condition on the landlord renting the property. The training creates a partnership between the landlord and the community, he said. Our Police Chief has experience in this regard, he added. Chief Lowery stated that the mandatory training addresses issues such as what is contained in the Special Meeting August 22, 2012 Page 2 of 6 ordinance, what is legal and what resources are available to the landlord and how they can be used. Additionally, he said, it provides a more cohesive relationship between the police and landlords and allows them to communicate effectively. Also, he said, it gives them insight on why they (landlords) need to be aware of police initiatives and why prevention and environmental design features are important. It also provides an opportunity for the landlords to provide information to their tenants. Ald. Lash stated that there is a point person that landlords could communicate with in other cities and asked if that is available here. Mr. Biernacki stated the plan would be to have a liaison. He added he will elaborate on this when the staffing element is discussed. Ald. O’Leary arrived at 6:20 p.m. Ald. Naylor asked about compliance. He stated that the City has no rights regarding the addendum; it can be passed as a requirement of the lease; yet he questioned how it will be enforced. Mr. Biernacki stated that through the registration process, staff can determine if it is followed. He added that through the training provided, we can insure the leases have the addendum attached. Mr. Frieders added that landlords have requirements now that must be in the lease; the City has had discussions with landlords and they have honored requests regarding the Municipal Code. From a practical perspective, he added, compliance may be less of an issue because it gives landlords the right to deal with problems they may have with tenants. Ald. Lash asked if the crime-free addendum applies to all rentals, including single-family homes. Mr. Biernacki replied that it does. Mayor Povlsen stated that ten (10) communities were compared regarding housing, and of the ten, four (4) required the addendum. b. Chronic Nuisance Ordinance Enforcement Mayor Povlsen stated that the Task Force developed a plan of action regarding chronic nuisances. It involves the police visiting with the landlord on the first incidence and asking for a plan to remediate the nuisance. If another activity occurs in a certain period of time a mandatory meeting with the police would be held, and a corrective action plan would be developed. If within the same year another nuisance occurs in the same unit, the City can declare it a disorderly house and conduct an administrative hearing; the landlord may be fined. The Task Force recommends that the Code be amended to include this chronic nuisance enforcement. Mr. Biernacki stated that staff believes this program is needed and probably overdue. Also, there should be resources in the police department to inform the landlord about criminal activities on their property, he added, but this cannot be absorbed by current staffing in the police department. He stated that alternatives could include general taxation or development of a fee system (i.e. registration), or fines on ordinance violations. Staff is consistent with the Task Force’s recommendation, he said. Mayor Povlsen stated four of the ten communities surveyed have this chronic nuisance ordinance. Ald. Lash suggested changing the term “from one year” to “within the same lease”. Mr. Biernacki stated he will discuss it with staff. He added that staff will not have records of when landlords have new tenants and this could be difficult to administer. Ald. Lash said she would consider some taxation but has problem with raising taxes and added that Council cut $400,000 from the budget to boost a fund balance and she would like to see the use of some of those funds.  Special Meeting August 22, 2012 Page 3 of 6 Ald. Naylor stated he generally concurred with the ordinance. However, he added, it seems the process is very detailed and appears it is too minutely defined and places an onerous burden on staff, particularly the police department. Perhaps, he suggested, making the dates more general. Also, he said, the process should be expedited with two strikes rather than three. Mr. Frieders replied that the third strike includes an escalation by the City and involvement of the property owner. If changing to two strikes, the first strike means the landlord may not have enough time to mitigate the problem or deal with the tenant, he said. Mayor Povlsen added that landlords have stated they do not want to be responsible for the actions of certain tenants. Ald. Naylor stated, however, that neighbors want these types of issues taken care of immediately. Ald. Naylor asked about complaints about excessive noise from animals. Mr. Biernacki replied it is addressed. Ald. Gallagher thanked the Mayor, Task force and staff for their work on the issue. He added that three strikes seem fair in that there might be some extraneous circumstances that need to be addressed. c. Registration/Licensing Mayor Povlsen stated the City has a current registration program but is not aware how accurate and updated it is. The Task Force recommends not only registering three or more units (current process) but registration of all rental properties which includes a one-time registration with a $3 charge per unit. He added that the Task Force was opposed to switching this from a registration to a licensing requirement. Mr. Biernacki stated that this is a small change to include all rentals. There would be no annual reoccurring update unless information has changed by the landlord. The effectiveness of the entire program hinges on this question, he said. Staff believes this should be an annual and reoccurring licensing program with an appropriate fee attached. It would apply the caveat that it could be revoked due to non-compliance, it provides incentive to comply and the fee is necessary if we are to fund the enforcement efforts, he said. There has been input about the use of volunteers for enforcement, training, and licensing, he said. He stated that while he is grateful for the assistance, volunteers will be able to complete the process when they have the time. It is not their daily job; they are not part of City staff that is answerable to his office or the Police Chief. Staff believes annual licensing requirement with a fee is necessary, he said. Mr. Frieders stated the Council has policy questions to decide, but when it comes to enforcement with respect to registration, licensing and inspection, there are a number of issues regarding the use of outside volunteers. He added that it is important to use consistent standards and have a small cadre of people who are trained and have the same standards. From a practical perspective in the event something goes awry, staff hopes for compliance, but if the City has to go to court, he said, he will need a witness he can compel to be there and rely on their appearance. The City could run into problems with part time volunteers. The testimony viewed by the court must be professional and objective. Additionally, he said, he would have concerns about testimony from a competing property owner because it could cloud our enforcement efforts. He added that he recommends that Council allocate appropriate resources. Mayor Povlsen stated that of the ten communities surveyed, four of the communities require annual licensing and four require annual registration with fees attached. Ald. O’Leary stated that all the commissions are made up of volunteers. She asked that a group of volunteers be appointed. Mr. Frieders replied that currently all licensing applications are done by City staff, as well as enforcement. He added he would be concerned that it would be impractical to use volunteers to administer this type of registration and certainly with regard to enforcement efforts. Special Meeting August 22, 2012 Page 4 of 6 Ald. Baker stated that the current registration process has worked and believes there was major compliance by the landlords. He stated he received a report from the City Clerk’s office that approximately 6,000 units are registered. He agreed that volunteers should be utilized. He added that he envisioned that if the volunteers see problems, they would report them to code enforcement. Fines should be enforced, he said, on property owners who are not compliant with registration and enforcement. Ald. Jacobson stated that registration is a compliance issue; licensing is an enforcement issue. He added that there are enforcement procedures in place now; the City is simply not using them. We have seen the Liquor Commission make the Code very vague, and in some cases, unenforceable, he said. We have some great solutions, he said, but he doesn’t see the need to change the process. He suggested finding cheap and easy options to take advantage of. Ald. Gallagher asked the City Clerk if there is a registration process in place. Ms. Wright replied it is a one-time registration for three units or more. Ald. Gallagher stated that there is a process in place now. Mr. Biernacki stated that staff envisions a cyclical schedule to register units. Ald. Gallagher stated that a timeline be given for new landlords to register. Additionally, he said the economy is not favorable. He added that registration is the way to proceed; not licensing. Regarding volunteers, he said, the City could use DeKalb Area Landlords Association (DARA) to provide information to new landlords. Mayor Povlsen asked Ms. Wright how many landlords have registered lately; she estimated that approximately fifteen (15) have registered in the last six (6) years. Ald. Lash stated that you must have consequences and raised concerns about how it will be paid and what are the resources. She then added an annual registration is something she can support; but annual inspections not necessary. She added her other concern regarding licensing is the process used for a license revocation. Mr. Frieders stated the enforcement process could be through the administrative hearing officer; the process has not yet been designed. Ald. Lash stated that she hoped revocation would be the absolute last step to take. Mr. Frieders replied that he believes any program would be designed that way. Also, it would have an impact on existing tenants and not punish innocent third parties. An extensive process would have to be in place, he said. Mr. Frieders added there could be a notification process to the tenants; no action would be taken to force the tenant out, and they would move after the lease expires. Mr. Biernacki added that Attorneys Klein, Thorpe and Jenkins suggested a due process sequence of events that addresses these issues. Mayor Povlsen asked how many rooming house licenses have been revoked; Ms. Wright replied there have been no revocations in the six years she has been in the Clerk’s office. Mr. Biernacki added that revocation hearings have been held and have resulted in compliance. Ald. Lash reiterated her concern about licensing. Ald. Naylor stated it is unreasonable to expect existing staff to take on these issues. He added that registration is paramount in order for this to be successful. Additionally, he said, licensing is critical. Fees must come from somewhere and he is a firm believer that those who use must pay, he said. He added that he supports staff’s recommendation. We do not know how many rental properties are in DeKalb, he said. This must be included in the program, he said in order for the City to insure compliance. Ald. Baker asked about clarification on security deposits. Illinois law gives the landlord thirty  Special Meeting August 22, 2012 Page 5 of 6 days to comply to return the security deposit. Mr. Frieders stated that our ordinance does differ from state law. Ald. Baker stated that if 6,000 are registered with three or more units, he was sure that we are close to compliance, and doesn’t understand there is a problem. He asked Ms. Wright if there were larger buildings that registered; she answered affirmatively that one building could contain sixty units and they complete one registration form. He added he believes the registration works and people do comply. He added that this proposal means the addition of ten (10) new staff. Mr. Biernacki clarified he is not recommending ten (10) additional staff. Ald. Jacobson asked how many rental units are estimated in DeKalb. Mr. Biernacki replied 9500. Ald. Jacobson asked how many landlords are in DeKalb. Mr. Biernacki could not give an estimate. Ald. Jacobson estimated 3500 are not registered and added that the City has a good percentage rate of registrations. Mr. Biernacki said we have no idea if the registration is accurate at this time. He added that there are estimates of 1600 single family homes rented and 1200 duplexes currently in DeKalb. Ald. Jacobson asked what would be tied to licensing. Mr. Biernacki replied chronic nuisances and code violations. Ald. Jacobson stated the City would be taking a license away from a landlord because of the behavior of the tenant. Ald. Lash stated if the landlord has continual problems it should be an option. Ald. Jacobson asked if we have the ability to condemn buildings. Mr. Biernacki replied the City does if there are major code violations. Mr. Biernacki stated he sees no problem in licensing this any differently than rooming houses and the City has been successful in administering that. He added that staff is only aware of problems based on complaints. Ald. Gallagher stated we have 95% compliance. He added he supports the phase-in registration and use of DARA and water bills for information. Ald. Gallagher asked Ald. Naylor if he is a landlord and if he is registered; Ald. Naylor replied affirmatively to both questions. Ald. Lash stated that as a renter the water bill is sent to her; Mr. Biernacki replied a copy is sent to the owner. She stated that much of the information cannot be current on the landlord registration; it was implemented ten years ago and many things may have changed She added that she concurs with the recommendation to include single family and duplex owners. d. Rental Property Inspection Mayor Povlsen stated that the Task Force and staff are close on this issue. Currently we have inspections via complaint only. The Task Force recommends continuing with the complaint process in addition to a sidewalk inspection process. These are possible violations that can be viewed by the inspector from the perimeter of the property. Mr. Biernacki stated that eight out of the ten communities surveyed perform some sort of inspections. The Task Force suggests that we begin the sidewalk inspection program as viewed from the street or common areas. There are four levels of inspections staff has looked 1) complaint only; 2) sidewalk inspection; 3) levels one and two plus common areas; and 4) inspections of some of the dwelling. Staff concurs with Task Force to implement level two, sidewalk inspection. There is a public safety issue that must be addressed, he said. Our Fire Chief reports that on calls, almost without exception fire staff observes some level of life safety concerns. If that occurs in every instance where we respond, it must be assumed that it occurs in more buildings than that, he said. He added that the process be moved into level 3 after 2017 Staffing depends on how many buildings are done each year, Mr. Biernacki said. The question for Council, he said, is how many buildings Council wants inspected each year. Staffing would depend on the cyclical nature of the inspections, he added. Carbondale inspects ¼ of the units Special Meeting August 22, 2012 Page 6 of 6 every year, he said. Mayor Povlsen reiterated that eight of the ten communities have inspections of the common areas and four inspect the units. Ald. O’Leary suggested implementing level two and removing 2017 from the table to allow the new Council to decide at that time. Mayor Povlsen stated that is a Council policy decision. Ald. Baker added that he is leery of binding a future Council. Ald. Gallagher stated he sends pictures to the Building Supervisor of violations which get handled immediately. He added he supports the sidewalk inspection. Chief Hicks stated the majority of the landlords are very good; however, many are absentee landlords. Ald. Gallagher suggested using smart phone for scans and complaints and sending them to staff and landlords. Ald. Naylor stated this is critical to implement as recommended by staff; and is an ongoing battle, he said. The neighborhoods are being impacted by the rental units, he added. The problems will not go away, he said, and the City must be proactive in dealing with these issues. Also, he said, he would expedite some of these issues. He agreed these are not the best of economic times but it is vital to the community. He added he supports licensing and the inspection process in that he wants his rental properties to be in compliance and believes it is critical that all are. The City must devise the revenue and fee schedule, he said that is equally distributed among all the units. The only way to get the issues corrected is to implement some unpopular things, he said. Mayor Povlsen stated there will be a meeting on September 19 and perhaps it will be a Public Hearing. He stated the only contentious issue he heard is licensing. He added the next step after hearing from the public and getting direction from Council is getting recommendations from the City Manager. He thanked the Task Force, landlords and staff for their efforts. 2. Other Business NONE. C. ADJOURNMENT; MOTION Ald. Lash moved to adjourn the meeting; seconded by Ald. Jacobson. Motion carried on voice vote. Mayor Povlsen declared the meeting adjourned at 8:10 p.m. DIANE WRIGHT, City Clerk Approved by City Council September 10, 2012