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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. 1 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 2 Item 1. 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 3 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 4 Item 1. 5 Item 1. 6 Item 1. 7 Item 1. 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. 8 Item 1. Page 2 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. 9 Item 1. 10 Item 1. 11 Item 1. 12 Item 1. 13 Item 1. 14 Item 1. 15 Item 1. 16 Item 1. 17 Item 1. 18 Item 1. 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 19 Item 2. 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. 20 Item 3. 21 Item 3. 22 Item 3. 23 Item 3. 24 Item 3. 25 Item 3. 26 Item 3. 27 Item 3. 28 Item 3. 29 Item 3. 30 Item 3. 31 Item 3. 32 Item 3. 33 Item 3. 34 Item 3. 35 Item 3. 36 Item 3. 37 Item 3. 38 Item 3. 39 Item 3. 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. 40 Item 4.