HomeMy WebLinkAbout09-05-2023 City Council Work Session Packet
CITY COUNCIL WORK SESSION
Mayor
Amáda Márquez Simula
Councilmembers
Connie Buesgens
Kt Jacobs
Rachel James
Justice Spriggs
Interim City Manager
Kevin Hansen
City Hall—Shared Vision Room, 3989 Central Ave NE
Tuesday, September 05, 2023
6:00 PM
AGENDA
ATTENDANCE INFORMATION FOR THE PUBLIC
Members of the public who wish to attend may do so in-person, by using Microsoft Teams Meeting ID
278 254 427 462, Passcode pfepBS. For questions please call the Administration Department at 763-
706-3610.
CALL TO ORDER/ROLL CALL
WORK SESSION ITEMS
1. Discuss Residential Time of Sale Program. (30 Minutes)
2. Safe Streets For All Citywide Safety Action Plan Request For Proposal Discussion. (30
Minutes)
3. SRO Contract Discussion. (20 Minutes)
4. Overview of Proposed 2024 Budget. (25 Minutes)
5. City Council. (5 Minutes)
*Discussion Regarding Capturing Majority Decisions in Council Minutes.
ADJOURNMENT
Auxiliary aids or other accommodations for individuals with disabilities are available upon request when the request is
made at least 72 hours in advance. Please contact Administration at 763-706-3610 to make arrangements.
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ITEM: Discuss Residential Time of Sale Program
DEPARTMENT: Community Development BY/DATE: Mitchell Forney, 8/25/23
CORE CITY STRATEGIES:
X Healthy and Safe Community
_Equitable, Diverse, Inclusive, and Friendly
_Trusted and Engaged Leadership
_Thriving and Vibrant Destination Community
_Strong Infrastructure and Public Services
_Sustainable
BACKGROUND:
Municipalities in Minnesota are authorized under state statute to create city-based inspection requirements
for residential properties prior to sale. These inspections are generally referred to as “Truth in Housing
Inspections”, “Point of Sale Inspections” or “Time of Sale Inspections”. The inspections a re based upon
individual criteria for minimum housing codes that are selected by each city.
Time of Sale (TOS) inspections identify health and safety hazards which are established by the building code
and discretionary city standards. When establishing the minimum standards for the City of Columbia Heights,
the Building Official has recommended a TOS program that focuses on immediate hazardous items that are a
threat to the health and safety of residents. These hazardous items are outlined in the attached TOS program
outline prepared by the Building Official. If hazards are identified through the TOS process, the homeowner
(seller) or buyer will be responsible for correcting the issues. When crafting a TOS program, city’s must decide
a few base parameters that will guide the overall scope of the program. These decision points regarding the
running of a potential TOS program are highlighted below.
STAFFING:
Cities that require TOS inspections may choose to have city staff complete the inspections, or they may license
independent inspectors to complete the inspections. The following cities require an inspection by a city official
prior to sale of a home:
New Hope
Richfield
St. Louis Park
Bloomington
The following cities require an inspection by an independent home inspection contractor prior to sale of a
home:
Minneapolis
St. Paul
CITY COUNCIL WORK SESSION MEETING
AGENDA SECTION WORK SESSION ITEM
MEETING DATE 09/05/2023
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City of Columbia Heights - Council Letter Page 2
South St. Paul
Maplewood
Hopkins
Robbinsdale
When choosing between the two options for Columbia Heights, staff recommend that TOS inspections be
completed by City staff. According to data provided by local realtors, there has been an average of 300 homes
sold annually in Columbia Heights over the past three years. To inspect this many homes, the City would have
to hire one additional staff person in the Community Development Department. This individual would ideally
hold a Limited Building Official license and be capable of completing additional inspection work beyond the
TOS program. In addition to TOS inspections, the new inspector would track new businesses that enter the city
for code compliance (Business use Certificate of Occupancy), assist the Building Official with investigations of
illegal unpermitted work, and help with zoning code violation s.
In staff’s opinion, keeping the inspections in house ensures the quality of inspections. As highlighted in the
attached star tribune article “More Minnesota home buyers are skipping an inspection, but should they?”
there are very little to no qualifications to become a home inspector. The article goes on to state: “Becoming a
real estate agent in Minnesota involves testing, licensing and continuing education. None of that is required to
become a Minnesota home inspector. Unlike in other states, in Minnesota th ere is no exam to pass and no
state board to oversee or regulate home inspectors. Several for-profit companies offer educational
coursework and training to become a home inspector but there is no law that would prevent someone from
starting a small business as a home inspector without any formal schooling.” While there are certifications a
home inspector could receive, it is very easy to be underqualified within the industry especially compared to a
staff member with a Limited Building Official license.
If the new position is approved by the Council, funding for a new inspector would be provided by permit
revenue generated by the TOS program, and a general fund levy contribution to cover the expected permit
revenue shortfall. Right now, staff expect that the program will generate $50,000 annually in permit revenue.
The expected salary and benefit package of the inspector position is estimated at $110,000. This means that
the general fund will need to provide approximately $60,000 to fund the position in year one.
IMPLEMENTATION
Depending on the severity of items identified in the inspection program there is only one pathway to
remediating possible hazards. The building official would like to focus soley on health and safety issues. If an
immediate hazard exists, it must be corrected, and if the dwelling is occupied, corrective action must be taken
by the owner or the owner’s agent. If the dwelling is vacant, it cannot be occupied until all hazards are
corrected. If the owner/seller cannot or will not undertake corrective action, the buyer may elect to assume
the immediate hazards identified in the Time-of-Sale Housing Evaluation Report. A buyer intending to assume
the hazards must first obtain written consent from the City of Columbia Heights Building Off icial by signing, in
person, a Hazard Correction/Responsibility form.
The responsible party or their contractor(s) must obtain the necessary permits from the City of Columbia
Heights and ensure all permits are closed prior to occupancy. To enforce this process/hold liability over the
improvements, the program can require an escrow, equal to the valuation of the improvements, be held by
the title company to ensure the items are fixed. Alternatively, the city could enter into a contract to fix the
items with both parties, but enforcement of the improvements would be more costly. Whereas, holding the
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Item 1.
City of Columbia Heights - Council Letter Page 3
funds in escrow would allow for all parties to complete the necessary improvements. Staff does not
recommend that the City act as escrow agent for the transactions. The title company that is closing the sale of
the property will be responsible to show proof of the e scrow agreement.
Home Sales Included
When deciding what properties to include in the TOS program, there are a few options. The first option would
be to apply the program to all single-family, two-family, condominiums, and townhomes offered for sale.
Multi-family rental buildings of four or more units would be excluded. Staff believes this option to be the best
route for Columbia Heights, as it gives staff an opportunity to see a larger percentage of the City’s housing
stock firsthand. This option also opens the door to catching more unlicensed contractors and home flippers
who are often profiting from unpermitted and structurally deficient work. Finally, this option would also
provide a minimum amount of security for all new residents, and most importantly those that are choosing to
forgo an inspection from a private home inspector.
The second option would still apply to the same residential structures but would only be applied to homes
that had sold within the last five years, or any home that previously held a rental license. The intent of
narrowing the focus in this manner would be to home in on illegal house flipping.
Sewer Inspection Required
Of the 12 cities that requires point of sale inspections, only two require sewer inspections as a part of their
time of sale inspections. Staff recommend that a sewer inspection be required alongside the TOS inspections.
Many other cities require sewer inspections prior to sale to cut down on surprise costs to buyers while also
preventing Inflow and Infiltration (I&I) to the sewer line, ultimately saving the City money. This part of the
program will require a sewer line to be televised and for proof of the televising to be submitted to the building
official and the buyer. Unlike the rest of the p rogram, the sewer inspection will not be required to be fixed or
held in escrow but up to the buyer and seller to negotiate.
CONCLUSION:
Staff thought it was timely to bring this topic back to the council for discussion , as a large piece of the program
(extra staffing) is a part of Community Developments 2024 Budget request. Staff’s recommendation for the
layout of the program can be found in attachment #2, the Time of Sale Program Outline. Any changes
recommended by the Council can be made before formal adoption of the program and 2024 budget.
ATTACHMENT(S):
1. “More Minnesota home buyers are skipping an inspection, but should they?” Article
2. Time of Sale Program Outline
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City of Columbia Heights | Community Development
590 40th Avenue NE, Columbia Heights, MN 55421 ▪ Ph: 763-706-3670 ▪ Fax: 763-706-3671 ▪ www.columbiaheightsmn.gov
Time-of-Sale (TOS) Housing Inspection Program
Scope:
In the current housing market home buyers are faced with bidding wars for limited hosing stock
and a growing number of home buyers are opting to forgo home inspections in order to make
their offers appear hassle-free. This proposal is intended to provide an additional layer of
oversight to catch hazardous conditions that could lead to costly repairs. The Time-of-sale
housing inspection program will also be used to catch and track people illegally flipping homes
in the city.
The Time-of-Sale (TOS) Housing Inspection Program provides potential purchasers with
information about the condition of a dwelling and requires the correction of immediate hazards
or assumption of hazards by the new buyer.
A Time-of-Sale Housing Inspection must be completed, and a Time-of-Sale Housing Evaluation
Report must be filed with the City of Columbia Heights for all single and two-family dwellings,
condominiums, townhouses and mobile homes offered for sale. Multi-family rental buildings of
four (4) or more units are not included. A Time of Sale Inspection application will need to be
filled out, the fee paid before an inspection can be scheduled.
Immediate Hazardous Items:
Nine items not meeting current codes or standards have been identified as immediate hazards
which are conditions or defects likely to cause injury to a person or property if not corrected.
1. Heating systems that are unsafe due to burned out or rusted heat exchangers; burned out,
rusted or plugged flues; no vent; connection with unsafe gas supplies; or incapacity to
adequately heat the living space. (requires certification from a licensed contractor may be
omitted if appliances have been replaced recently)
2. Water heaters that are unsafe due to burned out or rusted heat exchangers; burned out,
rusted or plugged flues; no vent; connection with unsafe gas supplies; or lack of
temperature and pressure relief valves. (requires certification from a licensed contractor
may be omitted if appliances have been replaced recently)
3. Electrical systems that are unsafe due to dangerous overloading; damaged or deteriorated
equipment; improperly taped or spliced wiring; exposed uninsulated wires; temporary
distribution systems; ungrounded systems; or extension cords used with permanent
appliances (e.g., garage door openers and window unit air conditioners). (requires
certification from a licensed contractor)
4. Plumbing systems that are unsanitary due to leaking waste systems, fixtures or traps; lack
of an operating toilet; lack of washing and bathing facilities; cross connection of
municipal water supply with fixtures or sewage lines; or the lack of water.
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5. Structural systems, including walls, chimneys, ceilings, roofs, foundations, floor systems
or decks which are not capable of carrying imposed loads.
6. Exterior roofs, walls, chimneys and foundations that are not weather tight and water tight
to the extent that it creates an immediate hazard.
7. Abandoned fuel tanks.
8. Refuse, garbage, human waste, decaying vermin or other dead animals, animal waste,
vermin infestation or other materials rendering residential building and structures
unsanitary for human occupancy.
9. Lack of properly located and operational smoke detectors.
Correcting Hazardous Conditions or Buyer Assumes Hazards:
When hazardous items are identified by the TOS Evaluator, a TOS re-inspection must be
scheduled with the City of Columbia Heights to follow up and determine whether the hazardous
condition has been corrected.
If an immediate hazard exists, it must be corrected, and if the dwelling is occupied, corrective
action must be taken by the owner or the owner’s agent. If the dwelling is vacant, it cannot be
occupied until all hazards are corrected.
If the owner / seller cannot or will not under take corrective action, the buyer may elect to
assume the immediate hazards identified in the Time-of-Sale Housing Evaluation Report. A
buyer intending to assume the hazards must first obtain written consent from the City of
Columbia Heights Building Official by signing, in person, a Hazard Correction/Responsibility
form.
Proof of a financial guarantee in the form of a cash escrow at least equal to the determined
valuation of repairs must be posted with an attorney, closing company or Title Company to
ensure the completion of the necessary corrections. The minimum escrow amount is $500. The
city is does not hold escrow checks.
The owner or the owner’s contractor(s) must obtain the necessary permits from the City of
Columbia Heights and the dwelling is subject to City of Columbia Heights re-inspection of all
open permits prior to occupancy.
Sewer Line Inspection:
As part of this program the seller is required to have the sewer line of the house televised. Proof
of the inspection must be submitted to both the building official and any potential buyer of the
property. Unlike other hazards or corrections, proof of escrow is not required but the required
repairs follow the same assumption of responsibility outlined above.
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ITEM: Safe Streets For All Citywide Safety Action Plan Request For Proposal Discussion.
DEPARTMENT: Engineering BY/DATE: City Engineer / August 29, 2023
CORE CITY STRATEGIES: (please indicate areas that apply by adding an “X” in front of the selected text below)
X Healthy and Safe Community
_Equitable, Diverse, Inclusive, and Friendly
_Trusted and Engaged Leadership
_Thriving and Vibrant Destination Community
X Strong Infrastructure and Public Services
_Sustainable
BACKGROUND:
The City of Columbia Heights has been awarded a federal grant for development of a citywide safety action
plan through the Safe Streets for All (SS4A) program funded by the Federal Highway Administration (FHWA).
The focus of the citywide safety action plan will be to significa ntly reduce or eliminate roadway fatalities and
serious injury crashes within Columbia Heights.
To help with developing the citywide safety action plan, the City will hire a qualified consultant to complete
the project. A request for proposal (RFP) document will be prepared by the City to outline the requirements
and expectations of the project in order to solicit competitive bids or proposals from potential consultants.
SUMMARY OF CURRENT STATUS:
The Council has approved the SS4A grant agreement between the City of Columbia Heights and FHWA at the
August 28, 2023 City Council meeting. Once FHWA returns a fully signed copy of the grant agreement to the
City as well as providing approval of the National Environmental Policy Act (NEPA) document required for
federally funded projects, the City will be able to get started on developing the citywide safety action plan.
Preparing a RFP document is the next step in finding a consultant to help with completing the project.
STAFF RECOMMENDATION:
Staff is requesting feedback and thoughts from the Council on any items that should be included in the RFP
document to ensure that the City receives well-considered and comprehensive proposals from qualified
consultants.
RECOMMENDED MOTION(S):
MOTION: None – discussion only.
CITY COUNCIL WORK SESSION MEETING
AGENDA SECTION WORK SESSION ITEM
MEETING DATE SEPTEMBER 5, 2023
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CITY COUNCIL WORK SESSION MEETING
AGENDA SECTION WORK SESSION ITEM
A MEETING DATE SEPTEMBER 5, 2023
ITEM: School Resource Officer Contract Discussion.
DEPARTMENT: Police BY/DATE: Lenny Austin, 8/30/2023
CITY STRATEGY: (please indicate areas that apply by adding a bold “X” in front of the selected text below)
_Safe Community _ Diverse, Welcoming “Small-Town” Feel
_ Economic Strength _Excellent Housing/Neighborhoods
_Equity and Affordability _ Strong Infrastructure/Public Services
_Opportunities for Play and Learning _Engaged, Multi-Generational, Multi-Cultural Population
ATTACHMENT(S):
SRO Program Contract Between CHPD and CHPS for January 1, 2023 through December 31, 2023.
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CITY COUNCIL MEETING
AGENDA SECTION WORK SESSION ITEM
A MEETING DATE SEPTEMBER 5, 2023
ITEM: Overview of Proposed 2024 Budget
DEPARTMENT: Finance BY/DATE: Joseph Kloiber, Finance Director/Aug 30, 2023
CITY STRATEGY: (please indicate areas that apply by adding a bold “X” in front of the selected text below)
_Safe Community _ Diverse, Welcoming “Small-Town” Feel
X Economic Strength _Excellent Housing/Neighborhoods
X Equity and Affordability X Strong Infrastructure/Public Services
_Opportunities for Play and Learning _Engaged, Multi-Generational, Multi-Cultural Population
BACKGROUND:
A PowerPoint presentation on this topic will be shown at the work session, followed by a discussion facilitated
by the Finance Director. The presentation will be based on pages 2-4 from the City Manager’s 2024 Proposed
Budget distributed to the City Council on August 28nd. Copies of that document are also available within the
Finance Department section of the City website.
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