Loading...
HomeMy WebLinkAboutCity Council - 02/19/2013 - Workshop APPROVED MINUTES CITY COUNCIL WORKSHOP & OPEN PODIUM TUESDAY, FEBRUARY 19, 2013 CITY CENTER 5:00—6:25 PM, HERITAGE ROOMS 6:30—7:00 PM, COUNCIL CHAMBER CITY COUNCIL: Mayor Nancy Tyra-Lukens, Council Members Brad Aho, Sherry Butcher Wickstrom, Kathy Nelson, and Ron Case CITY STAFF: City Manager Rick Getschow, Police Chief Rob Reynolds, Fire Chief George Esbensen, Public Works Director Robert Ellis, Community Development Director Janet Jeremiah, Parks and Recreation Director Jay Lotthammer, Communications Manager Joyce Lorenz, City Attorney Ric Rosow, and Recorder Lorene McWaters Workshop - Heritage Room H Council Member Case was absent. I. POINT OF SALE INSPECTIONS Building Official Kevin Schmieg presented a PowerPoint on the proposed point of sale (POS) inspections programs. Schmieg noted that the average age of a single family home in Eden Prairie is 28 years, and 25 years is the age at which major maintenance issues begin to arise. The POS inspections program concept was introduced to the City Council in 2006 as a part of the City's proactive property maintenance codes program. An informational Council Workshop on POS inspections was held in 2012, and the City Council asked staff to draft an ordinance that would include program details and address concerns voiced by area realtors. Any dwelling (single-family, two-family and multiple-family) for sale in Eden Prairie would be included in the POS inspection program. Schmieg said staff recommends requiring POS inspections at the time the home is listed for sale; however, the process would allow for the buyer and seller to negotiate responsibility for required repairs. Posting of the inspection report would be required during showings and open houses. Schmieg said items included in the inspections would be similar to those currently included in the exterior maintenance code and the rental inspection code. Items requiring repair or replacement include inadequate sanitation; structural, electrical, plumbing and mechanical hazards; and exterior maintenance deficiencies. Schmieg said the intent is not to require homes to be brought up to the current building code, but to address major maintenance and life safety issues. An appeals process would be included. Some realtors have also asked for a cap on the value of repairs based on a set percent of property value. Schmieg said he has some concerns with a cap when there may be life safety issues involved. Realtors have also asked that banks be required to comply with the process. Council Member Aho asked if having a POS inspection program would open the City up to liability. Schmieg said he does not believe it would,because the stated purpose of the program is to protect the public welfare, not individual owner-occupants. City Council Workshop Minutes February 19, 2013 Page 2 Mayor Tyra-Lukens asked how much the program would cost. Schmieg said there are several ways the program could be implemented. If the program is completely in-house, the City would have to hire two additional inspectors and provide clerical support at a cost of about$167,000 per year. If the program is completely outsourced, there would still be clerical costs of about$65,000 to $70,000. Schmieg said staff prefers a combination approach that offers the seller the option of using either a City inspector or an outside inspector. Outside inspectors would be tested and licensed by the City to ensure quality and consistency. He said Bloomington uses the combined approach, and it works well for them. If the wait for a City inspector gets too long, the seller can choose to use an outside inspector. The cost of the combined approach would be between $83,500 and $146,000. He said much of the cost of the program would be covered by the proposed inspection fee, which would be about$150-$170. Mayor Tyra-Lukens said she would like to see the program pay for itself. Council Member Aho said he spoke to a representative of the Minneapolis Board of Realtors during his campaign, and that individual indicated their organization is not in favor of POS inspection programs. Chief Esbensen said City staff has met with realtors from each of the local agencies, and has crafted the proposed ordinance to address concerns and ensure that the program is not a hindrance to housing sales. He said over time, the program will benefit all realtors by maintaining the value of housing stock in Eden Prairie. He said his staff will reach out to the Minneapolis Board of Realtors to explain the proposed program and identify their specific concerns. II. RENTAL INSPECTION PROGRAM UPDATE Assistant Chief Tom Schmitz provided an update on the rental housing inspection program. He said there was more than $4 million in property and content loss due to fires in multi- family units from 2003-2006,prior to implementation of the program. From 2007 to 2012, there was slightly more than $500,000 in property and content loss due in multi-family units. He said much of the decrease in damage is attributable to the rental housing inspection program. In 2006, the City hired a full-time fire inspector, Rick Hammerschmidt, whose primary responsibility has been to develop and implement the rental housing inspection program. Initial inspections targeted high occupancy non-sprinklered building, followed by senior multi-family dwellings, and moving on to all other rental units. The program is designed to provide access to properties on a regular basis, with about 25% of rental housing stock being inspected each year. The program covers 34 multi-family rental complexes with 5,382 individual units and about 846 single-family rental units. Staff estimates there are about 100 single family rental units that are not currently licensed. The annual cost for the fire inspector is $99,000. In 2012, $96,500 in rental license fees was collected. Two part- time fire fighters assist with data entry and Building Department staff manages the licensing process. Open Podium - Council Chamber III. OPEN PODIUM IV. ADJOURNMENT