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HomeMy WebLinkAboutA002 - Staff Report, Rental Housing Prioritization, August, 2005 Staff Report Rental Housing Prioritization Process Improvement Prepared By Rental Housing Process Improvement Team August, 2005 Index Executive Summary Background ......................................................................4 Identification of Goals and Objectives ..................................4 Process ............................................................................4 Description of Customer Input Sessions................................4 Summary of Customer Input Sessions..................................5 Summary of Recommendations ...........................................6 Rental Housing Inspection Process Improvement Team (RHIPT) City Manager's Mandate .....................................................7 Applicable Legal Requirements for Rental Housing Inspections 7 Process Steps....................................................................7 Benchmarking & Best Practices ...........................................8 DataAnalysis ....................................................................9 Current Status .............................................................. 10 2004 Actual Inspections ................................................. 10 2004 Inspection Breakout............................................... 11 List of Major Owners .............................................................. 11 Rental Housing Authorized FTE ................................................ 12 Rental Housing Program Budget .............................................. 12 Alternative Development ........................................................ 13 Alternatives with Pro/Con Evaluation Alternative 1: Seek an extension of the three year inspection cycle to four years ......................... 14 Alternative 2: Use a self evaluation by rental housing owners or management firms.................................... 15 Alternative 3: Use a targeted prioritization............................ 16 Alternative 4: Utilize part-time help or interns to supplement existing staff efforts ...................................... 17 Alternative 5: Utilize the services of a private firm to conduct rental housing inspections ............................. 19 Rental Housing Priorifiz ation July 2005 v.4 `t 01712005 Page# 2 of 54 Results of March 21, 2005 Meeting with City Managers Three Consensus Decisions/Goals ......................................20 Detailed Recommendations .....................................................21 Changes Already Adopted .................................................24 Ancillary Recommendations ..............................................24 Appendix Appendix A ............ Rental Compliance Appendix B ............ Three Year Comparison of Cost for Current Registration Fee Levels Versus Private Inspections Appendix C ............ Large Landlord Meeting Appendix D ............ Tenant/Neighborhood Association Meeting Appendix E ............ Small-Medium Landlords Meeting Appendix F ............ Tenant Meeting Appendix G ............ Emailed Comments Appendix H ............ City Housing Codes Appendix I ............. Consolidated Comments Appendix J ............. Intern Program Rental Housing Prioritization July 2005 v.4 101712005 Page# 3 of 54 Rental Housing Improvement Team Process City Manager's Mandate: To meet increasing workloads with the same number of personnel, develop for City Council consideration a new inspection program for rental properties that would allow a variable frequency of inspections based on relative risk. Also, consider self inspections as a method for meeting our workload. Applicable Legal Requirements for Rental Housing Inspections Municipal Code Chapter 13 doesn't specify periodic inspections, but states, in Section 13.8 that a letter of compliance "shall be effective until thirty (30) days after a change in ownership or operation..."and goes on with "unless revoked for reasons in Section 13.11 which are not applicable to this discussion." The City has had a long term administrative policy of conducting rental housing inspections on a three year interval. No record or recollection can be found that the Council has adopted or passed a resolution regarding the interval for rental housing inspections. Iowa Code section 364.17 establishes that cities with population over fifteen thousand must adopt ordinance housing code ordinance that includes provision for"regular rental inspections, rental inspections upon receipt of complaints, and certification of inspected rental housing." The Iowa code does not establish an inspection frequency. For a complete listing of Iowa Code section 364.17 see Appendix H. Iowa Code section 562A.19 establishes that for non-emergency access to apartments for purpose of inspection whenever practicable a landlord must give the tenant at least 24 hours advanced notice. Process Steps Developmental Stage 1. Identify goals and objectives. 2. Identify data sources. 3. Identify team members. Team Meetings 4. Conduct educational meetings regarding process improvement team methodology. 5. Start team meetings. 6. Conduct benchmarking and collection of"best practices." 7. Presentation by Jason Van Ausdall of"The Building Inspectors". 8. Conduct all Inspection Division meeting to discuss Pro's and Con's of identified alternatives. 9. Team presentation of alternatives and recommendations to city managers. Customer Input 10. Recommend potential alternatives for discussion with customer focus groups. 11. Conduct customer input sessions. Decision Phase 12. Meet with city managers to develop final recommendations. 13. Prepare presentation for Council (if necessary). Rental Housing Priorifization Ally 2005 v.4 101712005 Page# 7 of 54 Benchmarking & Best Practices As part of the process, the RHIPT chose to benchmark or seek best practices of communities in Iowa. The following six communities were contacted by team members: 1. Ankeny 2. Cedar Falls 3. Cedar Rapids 4. Des Moines 5. Iowa City 6. West Des Moines Ankeny Ankeny has used private company inspections for over 20 years. They're in the process of looking at adding an in-house rental inspector in the next budget year. Ankeny utilizes two companies that the ownership groups can call to perform the inspections. The inspectors are required to be certified by the International Commission of Building Officials (ICBO) or the International Code Commission (ICC). An interesting component of this interview is that Ankeny is moving towards the adoption of the International Property Maintenance Code. Ankeny is on a three year inspection cycle. Although Building Official Jeff Junker reports that they are generally happy with the private inspections firms that they utilize, there are two drawbacks. 1. The perception of citizens who want a City employee to respond to complaints 2. There have been instances of poor communications between the City staff, landlords, and the private inspectors. Cedar Falls Cedar Falls is on a three year rotation and estimates they have about 4,300 rental units. They are currently four to six months behind in their inspection efforts. They utilize a part-time rental inspector. Cedar Rapids Cedar Rapids is moving from a seven year inspection cycle back to a five year rotation. One of the major activities currently going on in Cedar Rapids is the pursuit of unregistered rental units. They report finding 10 to 20 unregistered units per week. Cedar Rapids has five full-time housing inspectors and one full-time nuisance inspector. They could not say how many rental units the community has. Des Moines Des Moines reports that they have an estimated 10,000 rental units. They have 16 inspectors involved in rental housing inspections and nuisance complaints. Des Moines uses a two tiered inspection rotation. Three-plex units and above are on a two year inspection rotation. Single family units and duplexes are on a three year inspection rotation. Des Moines tried to offer a self inspection program at reduced inspection rates. The option was opposed by property owners and was defeated at council. Perd al Housing Prioritizration,hily 2005 vA 101712005 Page## 8 of 54 Iowa City Iowa City estimates they have 15,600 rental units. They utilize a split inspection rotation where multi-family units are inspected every two years. Single family units and duplexes are on a three year inspection rotation. Iowa City has five full-time housing inspectors that handle zoning, rental, and nuisance complaints. They are budgeted to add a sixth inspector in fiscal year '06. Iowa City performs re-inspections on life safety or fire items only. No re-inspections on maintenance issues are performed. Iowa City Inspection Division tried to implement a program where a property owner was able to skip one inspection period if the unit had a clean inspection. The rental property owners objected. The major complaint of the property owners heard at council was that they appreciated the inspectors' efforts and the inspectors provided them an in between agent of the landlord and tenants. West Des Moines West Des Moines has an estimated 6,830 rental units. The West Des Moines inspections staff utilizes two full-time rental inspectors. The rental inspectors also are utilized to conduct building, plumbing, electrical, and mechanical inspections. In West Des Moines, the Police Department handles nuisance complaints. There is no stated rental inspection interval in West Des Moines. The building official prioritizes rental inspections according to the current construction levels. Data Analysis Our Target Is A Three Year Inspection Cycle. The Inspection Division rental housing database report of August 2005, shows we have 11,069 rental dwelling units. This is the total number of single family, duplex, and apartment units currently registered with this office. Recent New Units Added 573 number of new rental units brought on line in 2002 29 number of new rental structures brought on line in 2002 336 number of new rental units brought on line in 2003 13 number of new rental structures brought on line in 2003 403 number of new rental units brought on line in 2004 18 number of new rental structures brought on line in 2004 1,312 total number of new rental units brought on line in last three calendar years 60 total number of new rental structures brought on line in last three calendar years 437 average number of new rental units brought on line in last three calendar years. 20 average number of new rental structures brought on line in last three calendar yea rs Rental Housing Prioritization,fuly 2005 v.4 101712005 Page## 9 of 54 Growth in Total Rental Units 11,069 11,000 - - - - 10,417 10,057 10,000 9,639 w 9,434 " 8,913 9,034 0 9,000 8,329 (u 8,000 — t'c 7,000 - Jan-98 Feb-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Feb-05 Aug-05 Classification Jan-98 Feb-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Feb-05 Aug-05 Single Family 928 940 941 912 916 923 946 944 911 Duplexes 1380 1398 1396 1415 1432 1448 1437 1431 1414 3-6 Apts 1314 1333 1317 1323 1314 1308 1303 1291 1298 7-20 Units 1609 1892 2003 2128 2467 2503 2725 2947 3100 Over20 Units 2781 2874 3003 3035 3111 3293 3485 3607 4150 Lodging/Boarding 274 274 209 176 150 123 121 156 155 Fraternity/Sorority 43 43 44 45 44 41 40 41 41 Total 8,329 8,754 8,913 9,034 9,434 9,639 10,057 10,417 11,069 Annual Increase in Rental Units 425 159 121 400 205 418 360 652 Net Increase in Rental Units for Last 3 112 Years Equals 467 Units Per Year Current Status At the start of summer 2005, 1,789 units out of a total of 10,417 were behind schedule. By the end of August 2005, all rental inspections are expected to be current. 2004 Actual Inspections Staff produced reports show the total number of rentals inspected during the calendar year starting Jan 1, 2004, through Dec 31, 2004, to be: 3,610 = Number of rental units inspected 1,009 = Number of rental structures inspected Rental Housing Prioritization July 2005 v.4 101712005 Page# 10 of 54 2004 Inspection Breakout Rental Units If we inspected 3,600 rental units in calendar year 2004 Then we can inspect 1,800 units in one half(six months) of a year Then we can inspect 300 units in one twelfth (one month) of a year Then we can inspect 75 units in one week Then we can inspect 15 units in one day Rental Addresses/Structures If we inspected 1,600 rental addresses in calendar year 2004 Then we can inspect 270 addresses in six months Then 44 addresses in one month Then 11 addresses in one week Then 2 addresses in one day List of Major Owners 6,029 Number of rental units owned by 35 companies Major Rental Dwelling Owners (by # of units) Owner Number of Addresses Units Tsai 18 18 Lowman 19 19 Gen'I Prop 20 20 Marty 19 23 Sulzberger 8 24 Gaylon 20 26 Litzel 20 26 Robinson 36 40 Larson 8 42 Ogilvie 22 43 Grove 27 44 Newbury Mgmt 33 48 Hall 29 60 Sorenson 9 62 Mid-Land Mgmt 11 74 Cornwell/Frisk 34 77 Lincoln Manor 12 96 Wandrey 9 102 Cornwell 71 103 First Prop Mgmt 15 117 Sterling Univ 12 144 Randall 24 152 Wuestenberg 16 173 Arkae 30 188 Triplett 107 190 Jensen 23 195 Martin 117 262 Friedrich 133 283 Furman 64 293 Dayton Park 17 294 Total Prop Mgmt 42 374 Haverkamp 19 402 Prof Prop Mgmt 92 485 Cochrane 71 593 Hunziker 87 937 35 Owner/Manager Groups 1294 6029 1,300 Number of rental addresses owned by 35 companies Rental Housing Priorifization July 2005 v.4 101712005 Page;# 11 of 54 Rental Housing Authorized FTE Mike Fry Rental Housing Inspector 1.0 FTE Gayle Hornung, Principal Clerk 0.45 FTE Russ Scott, Deputy Chief 0.20 FTE Firefighter 0.15 FTE Authorized FTE Level 1.80 FTE Rental Housing Program Budget 04/05 05/06 Personnel Services & Employee Benefits $127,257 $133,577 Internal Services 8,598 7,350 Contractual, Commodities, Capital 2,951 4,849 Total Program Budget $138,806 $145,776 Rental Housing Prioritization.duty 2005 v,4 101712005 Page# 12 of 54 Alternative Development Over the last year, the RHIPT held a series of meetings to discuss alternatives. The alternatives can be broken down into five major classifications. The alternatives listed below became the starting points for discussion in the public input sessions. 1. Seek an extension of the three year inspection cycle to four years. 1.1 Extend all rental units inspection cycle to a longer period. 1.2 Extend the cycle for single family dwellings to four years, keep multiple family structures at three years. 2. Use a self evaluation by rental housing owners or management firms. 2.1 Stop conducting rental housing inspections, utilize self inspections for all rental units. 2.2 Utilize self inspections for a portion of the rental housing units (determined by age of occupancy). 2.3 Utilize self inspections for a portion of the rental housing units (determined by history of infractions). 2.4 Utilize self inspections for a portion of the rental housing units (determined by ownership group). 3. Use a targeted prioritization. 3.1 Prioritize the inspection frequency by ownership group based upon history of infractions. 3.2 Prioritize the inspection frequency by type of occupancy. 3.3 Prioritize the inspection frequency by age of occupancy. 4. Utilize part-time help or interns to supplement existing staff efforts. 4.1 Hire a part-time inspector. 4.2 Utilize interns for summer inspections. 5. Utilize the services of a private firm to conduct rental housing inspections. 5.1 Utilize outside/private rental housing firms for all rental inspections including rental housing related complaints. 5.2 Utilize outside/private rental housing firms for all rental inspections, but handle nuisance complaints with City staff. 5.3 Utilize outside/private rental housing firms for a prioritized set of rental units, but handle nuisance complaints with City staff. R€ntrai Housing Priorifization,fuly 2005 v.4 10,-7/2005 Page# 13 of 54 Alternative Pro/Con Evaluation The RIHPT and customer input sessions developed the following lists of Pro/Con discussion items for each of the alternatives. 1. Seek an extension of the three year inspection cycle to four years. 1.1 Extend all rental units inspection cycle to a longer period. 1.2 Extend the cycle for single family dwellings to four years, keep multiple family structures at three years. Pro: Easily implemented Does not require additional involvement of any personnel. Is cost neutral Since no legal requirements or ordinances are in place, this would be easily implemented Annual requirements for units to be inspected would decrease from 3,800 to 2,850. A partial implementation of this alternative would be to extend out the period from the time the certificate of occupancy is issued to five years before the first inspection is necessary for a letter of compliance. By adopting an alternative where single family dwellings are inspected on a four year cycle and multi-families on a three year cycle, we are acknowledging the hazards associated with living in a multiple occupancy dwelling. Con: If a first five years with no inspection alternative is adopted, it only postpones the problem's reoccurrence. This is in effect a temporary solution. If a four year rotation is selected, the 2,850 annual inspections still represents a considerable work load during the period where we are at historically high construction levels. By inspecting 2,850 units per year, we will be at the same level of rental inspections we were in 1998. Since rental housing inspections staffing levels have not changed in over 25 years, construction levels have gone up, and additional levels of responsibility have been assigned to the Inspection Division, we will still be operating at a higher workload than we were in 1998. Four year inspection cycles make our inspection intervals at the high end of the communities we benchmarked. 2. Use a self evaluation by rental housing owners or management firms. 2.1 Stop conducting rental housing inspections, utilize self inspections for all rental units. 2.2 Utilize self inspections for a portion of the rental housing units (determined by age of occupancy). 2.3 Utilize self inspections for a portion of the rental housing units (determined by history of infractions). 2.4 Utilize self inspections for a portion of the rental housing units (determined by ownership group). Pro: Easily implemented and administered Evaluation tools, such as shown in Appendix A, are easily developed. Spot checks could be utilized to monitor success. Con: It is not the age of the occupancy that often determines the number of violations found. It is more often related to the occupants' activities and the effort put forth in the maintenance of the structure. Good data may not exist to make the determination as to which owner or structure with a history of infractions should receive a high or low priority rating. This system may work for some owners and/or property managers and not others. The determination which ownership or management group should receive longer deferments may be viewed as arbitrary and subjective. Other communities who have tried this have reported a low confidence in its accuracy. Rental Housing Priorifrzation July 2005 v,4 101712005 Page# 15 of 54 3. Use a targeted prioritization. 3.1 Prioritize the inspection frequency by ownership group based upon history of infractions. 3.2 Prioritize the inspection frequency by type of occupancy. 3.3 Prioritize the inspection frequency by age of occupancy. Pro: Could be used to shorten the frequency for problem structures, owners, and management groups Well suited to the 35 owner or management groups that control over 6,000 of the 10,419 rental units Con: Good data may not exist to the make the determination as to which owner or structure should receive a high or low priority rating. The determination of which ownership or management group should receive longer deferments may be viewed as arbitrary and subjective. Current database application will not handle this type of application. If process favors large ownership or management groups, a perception of favoritism can result. Rental Housing Prioritization dirty 2005 v.4 101712005 Page# 16 of 54 4. Utilize part-time help or interns to supplement existing staff efforts. 4.1 Hire a part-time inspector. 4.2 Utilize interns for summer inspections. Pro: Could be used as a short burst to catch up the 1,789 units that are past due Relatively low cost as compared to hiring additional staff Very flexible in the utilization of part-time help By using student interns, we could help reach the Council goal of uniting the community. Would help the student community become involved in ownership of their neighborhoods and in the resolution of problems there-in Con: Increased cost not in current or next year's budget Staff does not have additional time to closely supervise the intern inspectors. Cost Estimates (For detailed cost estimates see appendix I) Summer 2005 Program Costs Cost per day for 1 summer temporary employee $131.44 Estimated Cost for 2 summer temporary employees $18,050 Projected Per Increase in 05/06 Unit Fiscal Year 04105 05/06 05/06 With Costs Registration Interns for Fees Interns Single Family Dwellings $16.92 $17.14 $0.22 $17.89 $0.75 Duplexes $12.62 $12.84 $0.22 $13.59 $0.75 3 to 6 unit apartments $12.22 $12.44 $0.22 $13.19 $0.75 7 to 20 unit apartments $11.42 $11.64 $0.22 $12.39 $0.75 Over 20 unit apartments $10.92 $11.14 $0.22 $11.89 $0.75 Lodging and Boarding Houses $11.72 $11.94 $0.22 $12.69 $0.75 Fraternity and Sorority Houses $60.00 $60.22 $0.22 $60.97 $0.75 Rental Housing Priorifizcation July 2005 v.4 101712 05 Page# 17 of 54 2005 ISU School Year Program Costs Two part time student inspectors would cost a total of $13,896 per academic year. Hours Available for a Student Part Time Employee Start on own inspections Sept 1, 2005 # of work hours per week that 2 PT students work 27 ( 12 hours per week per student 6 hours one Saturday per month) # of total hours per month 108 Employee cost per hour (wages and expenses) $14.30 Cost per week for 27 hours $386.10 Cost Per Month $1,544.00 Cost per academic year $13,896.00 The recently completed summer program added $0.75 per unit to the annual rental registration fees. Hiring two part time student inspectors for academic year 05/06 would add $1.25 per unit to the annual rental registration fees. Projected Per Unit Per Unit Fiscal Fiscal Increase in Fiscal Costs Costs for Year Fiscal Year Year 05/06 Year for Academic 05/06 04/05 Registration 05/06 Summer Year With Fees Interns Interns Interns Single Family Dwellings $16.92 $0.22 $17.14 $0.75 $1.25 $19.14 Duplexes $12.62 $0.22 $12.84 $0.75 $1.25 $14.84 3 to 6 unit apartments $12.22 $0.22 $12.44 $0.75 $1.25 $14.44 7 to 20 unit apartments $11.42 $0.22 $11.64 $0.75 $1.25 $13.64 Over 20 unit apartments $10.92 $0.22 $11.14 $0.75 $1.25 $13.14 Lodging and Boarding Houses $11.72 $0.22 $11.94 $0.75 $1.25 $13.94 Fraternities and Sororities $60.00 $0.22 $60.22 $0.75 $1.25 $62.22 Rental Housing Prioritization Aly 2005 v.4 10/7/2005 'rage# 18 of 54 S. Utilize the services of a private firm to conduct rental housing inspections. 5.1 Utilize outside/private rental housing firms for all rental inspections including rental housing related complaints. 5.2 Utilize outside/private rental housing firms for all rental inspections, but handle nuisance complaints with City staff. 5.3 Utilize outside/private rental housing firms for a prioritized set of rental units, but handle nuisance complaints with City staff. Pro: Would free up existing inspectors to focus on building construction, life safety, and zoning issues Multiple options in firms interested in this type of work The one firm that made a presentation was very flexible in its approach. Private firms may offer Saturday inspections. Many smaller owners or managers would appreciate an option for a Saturday inspection. A decrease in costs to owners and management groups may be possible. This alternative may be cost neutral to owners and management groups with the City still able to derive some revenue for administration of the program. Some firms offer an extension of inspecting for zoning compliance in addition to rental inspections. Con: Does not eliminate all need for administrative services within the Inspection Division Could distance the communications between the Inspection staff and the owners or management groups Could increase cost to ownership groups Financial Implications In the next fiscal year 05/06, the Inspection Division budget for rental housing as adopted is $145,776. The majority of which, $133,576, is salary and benefits for the 1.8 FTEs assigned to the rental housing program. Of the 1.8 FTEs, 1.15 FTE is used for conducting actual inspections and .65 for administrative duties. By using an example received from "The Building Inspectors", and comparing it to the rental registration fees charged in fiscal year 04/05, we can see that in some types of rental occupancies, the cost to the owners will increase and in others it will decrease. (Please see Appendix B for details) For example purposes, if we use 04/05 City of Ames rental registration rates and current charges for private inspections, we would anticipate that our present system would bring in $411,726. If it were changed to a private inspection program, the owners and management firms could expect to pay $351,060. The difference of $60,666 could be used as either a selling point to the owners and ownership groups of making this transition, or we could keep the transition cost neutral and use the balance to offset the administrative costs the City would incur. Without reducing one full-time FTE, the Inspection Division will incur additional costs if private firms are utilized. The additional cost of the one FTE would have to be folded into the permit cost for building and structural enforcement. Remit Housing Priorifizration July 2005 u.4 101712005 Page# 19 of 54 Results of March 21, 2005 Meeting with City Managers Three Consensus Decisions/Goals were established after the RHIPT met with the City Manager in March. 1. Short Term Catch-up - The intern option should be pursued immediately. Cost estimates to be at city managers by Tuesday 29 March, 2005. Goal is to present to Council by Tuesday 12 April, 2005. CAF due by Thursday 7 April, 2005. 2. Medium Term Program Changes - Produce cost estimates and prepare for meetings with customers. Present to city managers results of customer visits. This will go along parallel to the short term efforts. Three customer service meetings are to be scheduled. Customer visits should include tenants and two meetings with owner/management groups divided into: One meeting of managers and a separate meeting with owners. or One meeting with small to medium owners/managers with a separate meeting for large owner/managers. 3. Long Term - What could be developed to reward property owners who work with neighborhood associations and maintain their properties? Rental Housing Prioritization July 2005 v,4 10/712005 Page# 20 of 54 Detailed Recommendations Recommended Administrative Changes 1. The building official is to produce, evaluate, and distribute a quarterly analysis of the rental housing inspection program. The analysis will include: 1. The number of rental inspections conducted. 2. The number of rental inspections due during the period being evaluated. 3. The number of rental inspections conducted broken out by inspector. 4. The number and list of outstanding re-inspections. 5. A listing of past due properties. 6. The total number of rental units 7. The number of rental units due next quarter. 8. A list of the units due next quarter. 9. Further analysis as requested. 2. All written communications regarding rental inspections need to be clarified to enhance effective communications. All written communications with clients are to be a standard form and format. All communications are to follow the guidelines established in the "Footsteps" manual. When the rental unit inspection scheduling letters are sent, a punch list will be provided to the landlords/managers in order for them to facilitate corrective action prior to the inspection's occurrence. (Appendix A is the punch list) Inspectors will utilize a standardized form that parallels the one provided to the landlords/managers. (Appendix A is the inspector's list currently used) 3. The use of part time employees for rental inspections should continue. The department has moved forward with the use of a summer "intern" program during the summer of 2005. The priority for the summer full time temporary employees has been to assist the Inspections staff to address the 1,789 units that have not been inspected within the last three years. The use of temporary employees had multiple concerns during customer input sessions held with property owners and managers. Concerns were expressed about the objectivity of using student inspectors. Others were concerned about adequate training and consistency of temporary or part time employees. As of August 16, 2005, not a single complaint has been received about the intern inspectors. In fact, quite the contrary, we have received compliments on the inspections conducted by our interns. 4. Options to improve the rental housing database should be explored. The rental housing database was written over 15 years ago and is inadequate and inflexible. A new database with expanded query options should be developed. It needs to be available to the Inspection Division, Ames Police Department, and Ames Fire Department. It needs to be able to be queried and modified easily when needed. Should the analysis prove changes are warranted applicable costs would be a part of next fiscal years budgetary process. 5. A process improvement team should be established to explore in-field technologies for use by the rental inspections staff. During the team's investigation of alternatives, including the privatization of the rental housing program, a private contractor made a presentation. Their firm uses in field personal computers or palm devices and produces printed reports to the property owner or manager. The Rental Housing Prioritization duly 2005 v.4 101712005 Page# 21 of 54 information is automatically entered in their database, thus reducing the amount of clerical time necessary to input handwritten reports. By updating the database and utilizing in field technologies, we will reduce the additional burden placed upon clerical staff to maintain our information gathering system. 6. Establish responsibility and accountability for the rental inspection program. Consolidate the rental inspections to fewer team members. Use clerical resources for scheduling and inspectors for inspections. For the past several years, the rental inspections have been conducted by all inspectors within the division. By focusing one full time employee inspector and .4 of a full time clerical employee we can focus the division's efforts. Due to the increased number of units, additional part time help is necessary. Recommended Ordinance Changes 1. The frequency of inspections should be determined by the last inspection conducted and should vary in length from one to four years. The current practice is to inspect each occupancy every three years. The resources available to conduct inspections should target the occupancies that manifest the greatest need. The City should establish a sliding schedule with one year to four year cycles for inspections. The inspection cycle would be determined by the results of the last inspection conducted. The history of the most recent inspection is believed to be the best indicator of the need for future inspections. Inspectors would set the next inspection date at the completion of each inspection cycle. The inspectors' criteria for the length of the inspection cycle needs to be identified and objective. For example: One year cycle issued for: Issuance of a restricted certificate of occupancy Conviction of over occupancy Fraternities and Sororities Two year cycle issued for: Life safety violations including broken doors, ceiling, wall, and floor penetrations Repeated/multiple violations of small infractions Property complaints with verification by Inspections staff of maintenance issues below neighborhood standards Three year cycle issued for: Dwellings with minor violations Multiple family dwellings without sprinkler systems Four year cycle issued for: Single family dwellings with no violations Multiple family dwellings with no violations and code compliant sprinkler systems 2. Cancellations and no shows for appointments should count as the first free inspection. Rental units are inspected twice without additional charge. Normally the initial inspection and, if necessary, the first re-inspection are free. If the manager/owner does not show up for the scheduled re-inspection or is unavailable for the scheduled date then we incur lost time. Failure to make the scheduled time should constitute the first free inspection. The owner/managers need not incur any additional cost due to this change. The new Rent of,Housing Priori€iz<a#ion duly 2005 v.4 101712005 Page## 22 of 54 written materials sent in advance give adequate information to prepare for a successful first inspection. If an owner/manager is not available for the first free inspection, they can still pass without additional costs on the second free inspection. Additional inspections are $40 each. 3. All letters of compliance should include an expiration date. If the letter of compliance expiration date has expired, then the rental unit is not in compliance with the ordinance and is not a legal rental unit. Failure to appear for scheduled inspections will result in a certified letter stating the units are no longer in compliance and cannot be rented. 4. Condominiums and townhouses should be charged the same annual rental registration fee as freestanding single family rental dwellings. Many condominiums that in the past were apartments have been converted and are now legally registered as individual units. The City could consider charging an individual unit cost to each condominium rather than the lower per unit cost of an apartment complex. By charging condominiums and townhouses the same annual rental registration fees, we would address the issue of fairness and place condominiums on the same schedule as freestanding single family rental dwellings. Recommended Current Year Budget Changes 1. Hire part time employees that are resident student renters. The estimated annual program costs of $31,946 will increase annual rental registration fees by $2.88 per rental unit. Expand the hours and periods when rental inspections can be conducted. With the historic high in construction going on within our community, we would normally not conduct rental housing inspections during the summer. Initially, property owners and managers expressed difficulties with conducting rental housing inspections during the summer months. Summer represents a busy time for landlords, managers, and Inspections staff that have dual responsibilities for conducting other types of inspections. Due to the success of the intern program, our recommendation has changed. In fact, our description of the intern program should change to utilizing part-time help throughout the year. Although there are difficulties conducting rental inspections during the summer, many property owners have been cooperative in the endeavor. Also, the interns provide us an opportunity to address additional needs within the department during times where rental housing work is unavailable. The interns have proved useful on special projects and could be used to increase enforcement of zoning issues. Benefits of an "intern" program: The use of part-time staff helps reach the Council goal of connecting our community with each other and the City government. It also helps reach the goal of strengthening our residential neighborhoods. Part-time staff can be used to perform routine inspections. Part-time staff can make more time available for full-time staff to investigate complaints. Part-time staff could be used to extend flexibility to landlords and managers to conduct inspections later in the day and on Saturdays. Rental Housing Prioritizafion July 2005 v.4 101712005 Page# 23 of 54 Changes Already Adopted 1. Immediate steps were taken to address the inspection of all 1,789 units with a compliance date of 1999, or older. 2. A summer intern program started 17 May 2005. 3. An expiration date has been added to the letters of compliance sent when a unit has passed inspection. 4. All written communications have been reviewed and rewritten in the style explained in the "Footsteps to a Great Impression." The "Footsteps" manual establishes communications styles that enhance the delivery of the message. 5. The use of clerical time to make and schedule rental housing inspections rather then individual inspectors making their own appointments has started. Ancillary Recommendations During team meetings, recommendations related to the subject of rental housing inspection prioritization were identified and are listed as follows: 1.1. The Inspections staff could utilize more help in the enforcement of zoning ordinances. One possible alternative would be to educate public works employees in zoning ordinances. This would provide additional street level observations and could make zoning enforcement more proactive. 1.2. Inspection Division staff believes that the enforcement of junk car removal could become more effective if conducted by the Police Department. 1.3. Mitigation of neighborhood complaints in the campustown area regarding junk could be enhanced if free cleanup days were provided during three transition periods: 1.3.1. End of ISU academic year 1.3.2. End of lease year (end of July, first week of August) 1.3.3. Start of ISU academic year Rental Housing Prioritization July 2005 v.4 10/7I2005 Page# 24 of 54 Appendix A RENTAL COMPLIANCE INSPECTION REPORT & NOTICE OF VIOLATIONS Inspection Address: Property Owner: Address: No. of Buildings: No. of Units: No. in Violation: Inspection Date: Type of Inspection: Regular ❑ Re-Inspection ❑ Complaint ❑ Re-Inspection Date: EXTERIOR: 1. Sidewalks/Patio: 7. Walls/Ceilings: 11. Electrical ❑ Abrupt change in elevation ❑ Paint peeling ❑ Improper outdoor wiring over 1/2" needs replaced ❑ Damaged, holes ❑ Overhead line too low Broken needs to be ❑ replaced ❑ Deteriorated ❑ Main panel lacks disconnect 2. Steps: S. Steps: ❑ Openings in main panel ❑ ❑ Water meter lacks jumper Rise/run uneven ❑ Rise/run uneven ❑ ❑ Needs guard railing ❑ Inadequate head room Circuits not identified ❑ Needs hand rail ❑ Lacks railing ❑ Exposed wires Broken needs to be ❑ Dangerous treads ❑ Connections not in ❑ replaced junction box ❑ Outlet(s) not wired 9. Mechanical: properly 3. Deck: ❑ Furnace unsafe ❑ Open outlet(s)/box(s) ❑ Unsafe, deteriorated Need GFCI outlets within ❑ Flues lack fire stops ❑ ❑ Lacks railing/balusters 6' of sinks ❑ Deteriorated flue pipe Light in closet needs El Place balusters less than ❑ Improper gas piping ❑ P 4" apart rotection ❑ Laundry lacks gas line 4. Garage: shutoff 12. Smoke Detectors: Range/Oven lacks gas line ❑ Missing ❑ Deteriorated, dangerous ❑ shutoff ❑ Inoperative ❑ Exposed wiring ❑ Appliances need ❑ Open outlet(s)/box(s) independent gas line Dryer flex pipe greater 13. Fireplace/Stove ❑ House door not fire rated ❑ than 6' ❑ Too near combustibles INTERIOR: 10. Plumbing: 5. Doors: ❑ Unacceptable "S"type Comments: ❑ Glass broken/damaged traps ❑ Screen missing ❑ Unacceptable "Drum" traps ❑ Knob missing ❑ Inoperable fixture ❑ Latch/jam split ❑ Spout below level of ❑ Lacks closure fixture rim ❑ Incorrect water heater relief valve or piping 6. Windows: ❑ Extend relief piping to ❑ Broken within 6"of floor ❑ Pane Missing ❑ Screen missing or torn INSPECTOR ❑ Lacks basement egress window M L. 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O W 41 � L O U m � c ++ O U Q E 'c 0 O N Ln u) Ln 0 0 0 O i0 m m o It It 00 It "I- z II > c U Z O O N •L y1 m c Q O w Ln Cto 10 i N O 1- , i O O O i , i N V U .0U L u L E O O R V O L Z U) cn Ct Ln t0 N m 0) O 1-4 N M It It 00 Q Ln Ln Ln Ln Ln m 0 0 0 t0 0 m m 00 L ^' t y.� to Gl Ln Ln Ln Ln Ln Ln Ln Ln Ln Ln Ln Ln Ln n '� it •E 0 C C C C c c C C C C C C C L c c 41 U E E E E E E E E E E E E E E r�o V O anana0-C La- annnn ¢ c' � � L Q Q Q Q Q Q Q Q Q Q Q Q Q E l30 Lin uL�i u i L i Lin � 0 � mm w - 0 m 0 c c� Appendix C Large Landlord Meeting Tuesday March 29, 2005 Conference Room 135 City Hall 3 p.m. to 4:45 p.m. Present: Mary Thompson (Furman Property Management), Gary Hunziker(Hunziker Property), Diane Borcherding (Friedrich's), Paula Shriver(Shriver Properties), Chris Martin (MPM Inc), Brad Stehr(Total Property), David Happe (Ev Cochran &Assoc), Curt Stoecher(Jensen Property Management), Gary Denner(Professional Property Management), Thad Brown (Haverkamp Property), Todd Wuestenberg (Haverkamp Property), Todd Petersen (Jensen Design Building), Chief Petersen, Deputy Chief Scott, David Brown Building Official, Craig Hageman Inspections and Kathy Toms Inspections Agenda Item 1: Call to Order The meeting started at 3 p.m. in City Hall Conference Room 135. Agenda Item 2: Functions of the City of Ames Inspections Division David Brown, Building Official, gave an overview of the Inspections Division. Agenda Item 4: City Council Goals Chief Petersen presented the City Council goals (commercial revitalization, connecting our community with each other and the City government, strengthening our residential neighborhoods and developing affordable housing opportunities)to the group and explained the Excellence Through People program. Agenda Item 3: Goals of the Rental Housing Program Chief Petersen explained the goals of the Rental Housing Program. Agenda Item 5: Status of the Rental Housing Program Chief Petersen showed where we are currently at with inspections on our three-year cycle (the Council has not adopted a resolution regarding the interval for inspections, however we have an administrative policy of three years)and that we would need to do 5589 rental unit inspections in 2005 to be current. Agenda Item 6:Proposed Changes to the Rental Housing Program Chief Petersen discussed that six communities in Iowa were used as benchmarks for how inspections were done as well as frequency of inspection. Ames was in the middle with inspections on a three-year cycle. The following five alternatives were identified by City of Ames staff: (handouts provided) 1. Lengthen inspection cycle from 3 to 4 years 2. Self evaluations 3. Targeted prioritizing 4. Part time/interns supplementing staff(2 will be hired this summer) 5. Private firm Cost effects for each of the five alternatives were given on a per unit increase. The rental-housing program is paid 100% by rental fees collected. Agenda Item 7: Customer Input Discussion on self-inspection: Landlords liked self-inspections with the landlords being held accountable. Discussion on prioritization: Rental Housing Pr€oritization,Italy 2005 vA 10,171200 5 Page# 30 of 54 Would the basis be the track record of the owner/manager group or the size of the building? The group agreed it was the track record not the size that mattered. That spot-checking would allow better use of City resources. That each landlord is accountable to his or her own insurance providers. Discussion Question: Do you feel newly built units should have a longer cycle before their first inspection? Group felt that age of building was not as important as the owner/manager or the type of tenants. They agreed that tenant type was very subjective. Discussion on Private firm inspections: There was a concern of consistency and not seeing the inspectors they know as well as the increased cost. The landlords felt they have a good working relationship with the City of Ames inspectors and do not want to lose that. They suggested charging $40 fee for first time re-inspection instead of a free one or charging per hour fee instead of per unit fee. No one in the room favored private inspections Discussion on Intern program: There were several concerns noted by this group including June, July and August being their busiest times; the intern's knowledge and consistency. Chief assured them that it was happening this summer. They would be trained for a week, then go with a City of Ames inspector for another week and that they can also do zoning and some other work with data analysis. The interns could be students in criminal justice, social work or public administration. Therefore, there would be a career incentive. There was also a concern about power going to their head. They feel that they are getting quality inspections now and that they enjoy the working relationship they have with the inspectors. Group Conclusions • There is not a tie between the age of the building and the condition of the property. It is the owner/manager that controls the condition, with some realizing it can be the tenant group. However, it is too subjective to label occupants as good or bad. • They did not feel that the size of the building mattered as much as the track record of the owner/manager group. • Prioritizing must be data driven and start forward instead of City or landlords going back into inspection records. • They liked the personal service and consistency of City inspectors. • They did not like the idea of using Interns o They especially did not like the use of interns during June, July and August. o Some were skeptical of the intern's ability to provide same service that receives from City Inspectors. • They felt private companies were expensive, could take longer to do the inspection, and might not have the relevant history and knowledge of Ames codes. They liked knowing whom they are dealing with as opposed to the unknown. • Did not ask for monetary reward but realized time is money. They were more concerned about time as a reward for good inspections • Why should 80% of good managers/owners be paying for the 20% poor owner/managers? They felt spot-checking the 80% and inspecting every unit in the 20% could better use resources. Rental Housing Prioritization July 2005 v.4 101712005 Page#1 31 of 54 Group Recommendations: • Use a system of rewards and penalties. Rewards: longer inspection cycles, random sampling instead of inspecting every unit. Penalties: revoke Letter of Compliance, charging for the first re-inspection and looking at charging per hour instead of per unit would work as a deterrent also increase the frequency of inspection to two years. • Agreed that random sampling must be data driven starting with the current inspections in 2005.. • Some are doing self-inspections now before the City inspector comes. Have 2-year self- inspections for those receiving passing inspections with every other cycle spot-checked by the City inspector. • Do not have interns inspect their units in their busiest months of June, July and August. Rental Housing Prioritization July 2005 v.4 101712005 Page# 32 of 54 Appendix D Tenant/Neighborhood Association Meeting Wednesday March 30, 2005 Conference Room 135 City Hall 4 p.m. to 6 p.m. Present: Sharon Guber, Stephen Ringlee, Gloria Betcher, Gary Fox, Alex Gaylon, Barbara Pleasants, Tony Borich, Bert Schroeder Agenda Item 1: Call to Order The meeting started at 4:10 p.m. in City Hall Conference Room 135. Agenda Item 2:Functions of the City of Ames Inspections Division Chief Petersen presented the functions of the Inspection Division. He also explained our problem is too many units to inspect on a three year cycle. Agenda Item 4: City Council Goals Chief Petersen presented the City Council goals (commercial revitalization, connecting our community with each other and the City government, strengthening our residential neighborhoods and developing affordable housing opportunities)to the group and explained the Excellence Through People program. Agenda Item 3: Goals of the Rental Housing Program Chief Petersen explained the goals of the Rental Housing Program. Agenda Item 5: Status of the Rental Housing Program Chief Petersen showed where we are currently at with inspections on our three-year cycle (the Council has not adopted a resolution regarding the interval for inspections, however we have an administrative policy of three years)and that we would need to do 5589 rental unit inspections in 2005 to be current. Agenda Item 6:Proposed Changes to the Rental Housing Program Chief Petersen discussed that six communities in Iowa were used as benchmarks for how inspections were done as well as frequency of inspection. Ames was in the middle with inspections on a three-year cycle. The following five alternatives were identified by City of Ames staff: (handouts provided) 6. Lengthen inspection cycle from 3 to 4 years 7. Self evaluations 8. Targeted prioritizing 9. Part time/interns supplementing staff(2 will be hired this summer) 10. Private firm Cost effects for each of the five alternatives were given on a per unit increase. The rental-housing program is paid 100% by rental fees collected. Agenda Item 7: Customer Input Ideas from group: Charge $40 for first re-visit, Provide landlords with inspections check list Discussion of Alternative 1: Extend the years between inspections: Group believed that the inspection cycle should be based on the quality of the landlord/property manager using a deficiency rating system/past track record and then the cycle could be extended if passed or shortened if they did not. The Neighborhood Association members agreed that safe housing for renters was important and they were concerned with non-professional landlords. Concerns included escape routes in older houses and using the appropriate watt bulbs. They asked about retrofitting sprinklers in multi-family units. Chief Petersen explained that retrofitting sprinklers in fraternities and sororities would be discussed this year, but not in multi-family units. Rental Housing Prioritizration.hrty 2005 v.4 10/7/200 5 Page# 33 of 54 As a whole, there was no support for this option. Some were concerned that three-year inspections were not frequent enough for life safety issues in student housing. Question: Are the majority of rental programs self-funded? No, for example Sioux City is 80% funded. Question: Can the Letter of Compliance be pulled for those with dings so they can no longer rent? Chief responded that the staff levels are not such that this has been done and our past philosophy has been to gain landlord's compliance. Suggestion: Involve renters in the inspection process. Renters are usually a high source of complaints and we ask them to write a letter to their landlord and the cc City of Ames Inspections. Suggestion: Encourage Government of Student Body to fund an off campus housing position that could work on behalf of student renters. The group felt that perhaps the reason the neighborhood association and student's had grown apart was the elimination of an off-campus person. In the 1970's this position held up student's grades if the landlord had a problem with the student. Discussion of Alternative 2: Self-evaluations There was not a lot of support for this alternative. It was suggested involving the renter in this process and having them submit an evaluation of their unit. The group was concerned by the training needed to accurately fill out an evaluation form, the level of student interest, and making sure a resident filled out the evaluation. • It was suggested that landlords post rules in rental units. • The group felt that there was an information/learning gap with renter's needing to learn to be good renters and felt it was the City's job to teach them how to be responsible tenants. Chief explained that the Ames Fire Department is part of freshmen orientation. • How would landlords be educated to complete self evaluation forms so the data was accurate and meaningful? The inspector's would need to do random inspections to verify that accuracy. • Felt that if used self-inspections they would not be in lieu of a City inspection but as a way to decrease man-hours. • Could be used as a perk for those who have a good clean record of inspections. Discussion of Alternative 3:Prioritization The group felt that this could be a reward for good inspections but felt the size of the landlord was not the determining factor. • How powerful is the threat of an inspection?Which motivates people? • If landlords receive a positive inspection and are able to do self-inspections will they keep up their good record or will they slack? • Penalize landlords/property owners with poor inspections by increasing inspection frequency to two years. Reward those with good inspections by decreasing inspection frequency to 4 years and send out self-inspection forms at a two-year interval with random sampling. • Discussed tenants doing an evaluation. Implementation concerns. If GSB funded a position then they could assist students in how to complete the evaluation forms. Concerns that students would not be educated/informed. Suggestion to use letters to inform the renters about the program and then a simple 1-page evaluation and a self addressed stamped envelope. Felt this would also help tenants know whom to complain to. Funding for this could come from charging for first re-inspections. • Increase to a 4 year cycle if"clean" inspection and decrease to a 2 year cycle if "problem" inspection. Abate the cost for a"clean" inspection while charging $40 for first re-inspection. • Feel that the goal is safe rental housing for tenants. Landlords/property manager's should know the code, know the rules and that ignorance is no excuse so pay the penalty. Rental Housing Prioritization July 2€05 v.4 1017/2005 Page# 34 cal 54 • Talked about complaints and 1/3 do not have any basis. Discussion on should landlords/property managers be penalized due to their tenants? Felt luck of the draw on tenants. If the complaint is substantiated what role do student evaluations have? Could be unmotivated. • The Neighborhood Association representatives felt that it's a renter issue and not solely a student issue. • Discussion on property maintenance and aesthetics. Currently we do not have a City Code on property maintenance, it would have to be adopted by Council. There is an International Property Maintenance code that could be adopted by Council. • Discussion on who handles nuisance parties and illegal parking. The answer was the police department. Discussion on Alternative#4:Interns They discussed the City and GSB jointly funding an ombudsman office of off campus housing. Peer to peer interaction and this could take the burden off of the neighborhood associations who don't enjoy calling in complaints. • Shared concerns of using interns: landlords are busier in the summer, educating them would take time, possible"power trips". • Shared benefits of using interns: help resolve complaints, do drive bys to target properties with maintenance issues, look for unregistered rentals, and catching up on rental units that are behind on. • We have committed to using two interns this summer with Council approval. Using ISU students should help achieve a Council goal of bringing the community together; therefore, we cannot use retired building inspectors. • Group suggested we consider following a Des Moines procedure: landlords there cannot evict tenant without a current letter of compliance. Discussion on Alternative#5 Private Inspectors Discussion on the cost: landlord's cost would see the most increase with this option and Inspections would not reduce staff. • The outside company would have staff trained on our City of Ames ordinances/amendments. The landlord would pay the company and City of Ames would issue the Certification of Occupancy. • This alternative could be used in combination of two and four year inspections. • This alternative could be used to catch up the approximately 1800 units with the interns • Concern: this could disconnect the community that we're trying to join together Group Conclusions: 1. Who does the inspections is not a big issue to this group. 2. Tenant safety is a big concern to this group. 3. This group felt the term student was not synonymous with bad tenants/neighbors. 4. Landlords need to be provided a checklist of what to expect during inspections. 5. Interns will need a checklist during inspections. 6. The group did not support self-evaluations. 7. The group felt ignorance was not an excuse for avoiding penalties. 8. Perhaps it's time for Ames to rethink fees as you've shown Ames to be on the low end. Rental Housing Prioritization,1uty 2005 v.4 10/7/2005 Page# 35 of 54 Group Recommendations 1. Involve tenants in evaluating their landlords. 2. GSB and City Council co-fund an off campus ombudsman. 3. Do not just lengthen the inspection cycle for all to 4 years. 4. Consider requiring retrofit sprinkler systems in multi-family units. 5. Base inspection cycle on quality of landlord/property management's past track record and if good extend cycle one year and if deficiencies shorten the cycle. Use a prioritization system. 6. Charge $40 re-inspection fee for first re-inspection. Would even support reduction in fees for quality inspections. 7. City of Ames should be responsible for teaching tenants how to be good tenants through education. Rental Housing Prioritization July 2005 v.4 101712005 Page# 36 of 54 Appendix E Small-Medium Landlords Meeting Monday April 4, 2005 Conference Room 135 City Hall 3:00 p.m. —4:35 p.m. Present: Tim Babcock (Babcock Construction), Jim Zehr (General Property), Lori Sulzberger, Lad Grove (Grove Real Estate), Mark Hanson (Horizon Properties), Keith Arneson (Horizon Properties), Jo Bauman (Rainbow Properties), Mike &Toni Robinson (MTR Properties) Agenda Item 1: Call to Order The meeting started at 3:00 p.m. in City Hall Conference Room 135. Agenda Item 2: Functions of the City of Ames Inspections Division Chief Petersen presented the functions of the Inspection Division. He also explained our problem is too many units to inspect on a three year cycle. Agenda Item 4: City Council Goals Chief Petersen presented the City Council goals (commercial revitalization, connecting our community with each other and the City government, strengthening our residential neighborhoods and developing affordable housing opportunities)to the group and explained the Excellence Through People program. Agenda Item 3: Goals of the Rental Housing Program Chief Petersen explained the goals of the Rental Housing Program and the City's Excellence Through People program. Agenda Item 5: Status of the Rental Housing Program Chief Petersen showed where we are currently at with inspections on our three-year cycle (the Council has not adopted a resolution regarding the interval for inspections, however we have an administrative policy of three years)and that we would need to do 5589 rental unit inspections in 2005 to be current. Benchmarking six cities similar to Ames yielded some comparison data. Question: Why would interns be used in the summer for inspections when it's our busiest time? The room was in agreement. Chief explained the need to catch up, but stated there would be other assignments for interns as well. Question: Looking at your presentation there has not been a new FTE added in the last five years, why wouldn't that be the answer? Discussion on rental housing fees: what fees have been, how fees are used and the cost of adding a new inspector with wage, benefits, car, gas etc. Net registration fees in the past four years have decreased. The increase in revenue has gone into the City's General Fund and has not been used to hire a new inspector. Agenda Item 6: Proposed Changes to the Rental Housing Program Chief Petersen discussed that six communities in Iowa were used as benchmarks for how inspections were done as well as frequency of inspection. Ames was in the middle with inspections on a three-year cycle. The following five alternatives were identified by City of Ames staff: (handouts provided) 11. Lengthen inspection cycle from 3 to 4 years 12. Self evaluations 13. Targeted prioritizing 14. Part time/interns supplementing staff(2 will be hired this summer) 15. Private firm Rental Housing Prioritization,fuly 2005 v.4 101712005 Page# 37 of 54 Cost effects for each of the five alternatives were given on a per unit increase. The rental-housing program is paid 100% by rental fees collected. Agenda Item 7: Customer Input Discussion of Adding FTE or lengthening inspection cycle • Some support given to adding FTE • Some support given to extending inspection cycle to four years. They felt if years can't be extended past four years then consider using fee increases. Question: Did your cost projections use the same rate of growth? Chief stated that construction may slow down, however, based it on 12,000 rentals. • Questioned the cost of adding FTE as they would also do construction inspections and bring in revenue there • Discussion on number of inspections per inspector and compared Ames with Sioux City. The average is about one inspection per hour. Discussion of Intern Program The City will hire two interns for this summer to help catch up the approximately 1800 rental unit inspections. Other duties for interns this summer would involve zoning, unregistered rentals and rental inspections. Intern qualifications would include looking at their major: community planning, fire science, architectural, sociology, criminal justice, and being an ISU student. This program goes along with the City Council goal of connecting our city. Funding for this year will come from the General fund and funding for the second half would come from an increase in rental fees (.75 cents per unit)The group felt that interns should be provided with a checklist so that it does not take more time to do the inspection and have uniform inspections. Some felt students might be more thorough than the City of Ames inspectors as they feel City inspector's just spot check. They would also like to have this checklist provided on our web site with the web site listed on appointment letters. They would like the opportunity to provide feedback on the intern program after it is completed. Suggested a comment card and a synopsis of the summer program. Their fear was that this would be a perpetuating position. Their other concern was that they did not want interns inspecting the building they lived in or even those their landlord owned. Question: Could the interns work on a semester basis instead of landlord/property manager's busiest time of July and August? Answer: This year will be during the summer months and will evaluate the program to see if feasible for school year. Question:What is your timeline to make a decision on these options? Chief stated that the interns will happen this summer and that hopes are to finish input sessions and have a decision in six to eight weeks. Discussion of Self-evaluations: Most of the group could see this as part of another alternative instead of as a stand- alone option or as a reward. (self-evaluation one cycle and City inspector the next) If there were anomalies then those rentals would have inspections more frequently. Small landlords did not feel comfortable doing self-evaluations and felt that it would take more of their time. The group also had interest in electronic interfacing for their self-inspection. Rental Housing Prioritization July 2005 v.4 1017I2005 Page## 38 of 54 Discussion on prioritization: • The group did not agree if a new building was safer than an older building. • Common infractions that the City inspectors find included: smoke detector not working, over riding the fire doors, doorways broken, holes in drywall • Group felt that if there was a $40 charge per re-inspection some leeway should be given as they realize even the best landlords may get a ding for a battery. Set up a system where less than two dings = $0 charge if more than two dings $40. At times inspectors let them fax receipt for fire extinguisher instead of coming back out. Not a consensus on dropping the free re-inspection. • Those with more infractions should be inspected more frequently. If poor do on a two- year cycle along with increased fees. If good do on a four year cycle. • Believe could be fee based as they realized those that need multiple inspections have an additional cost to them in money and in time spent. • Performance based once past due inspections are made. Results could have people on 2-3 or 4-year inspection cycle. Discussion on privatization: The group liked this option the least. Group Conclusions • The group did not like the idea of private inspectors. • The group did not like interns for rental inspections during July and August, but would be open to using interns during the school year. They wanted the chance to provide and receive feedback on the intern program. • The group did not agree as to the safety of old vs. new buildings. • Most felt the $40 re-inspection fee should be charged for the first re-visit with the exception of a"get by for free"type pass for 1-2 dings. Liked the ability to fax in fire extinguisher receipts. • If the inspection cycle can't be inspected past four years they agreed increase fees for the"bad" rental units. • Prioritization should be performance based. • Self-inspection should be performance based. • Some landlords/property managers did not feel comfortable doing self-inspections. Group recommendations • Liked a hybrid of self-inspections/prioritization based on performance. Could see having units that would be inspected in two, three or four years based on performance. • Provide inspection checklist on the website as well as include the website address on Inspection letters to landlords/property managers. • Look at the ability to electronically interface self-inspections. • Use fees as basis reward/penalty. Charge $40 re-inspection fee starting with the first one except for those with 1-2 dings who would qualify for a free re-inspection. Split registration fees where the annual fee would be dropped but there would be an inspection fee. If you were inspected on two-year cycle you paid more than if you were inspected on a four-year cycle. Rental Housing Prioritization July 2005 v.4 101712005 Page# 39 of 54 Appendix F Tenant Meeting Monday, April 11, 2005 Conference Room 135 City Hall 5:30 p.m. —7:00 p.m. Present: Sue Stupp, Ryan Haaland, Brent Mayhew, Nick Behr, Chief Petersen, Deputy Chief Scott, David Brown Building Official and Kathy Toms Inspections Agenda Item 1: Call to order The meeting started at 5:30 p.m. in Conference Room 135 City Hall. Agenda Item 2 Functions of the City of Ames Inspection Division Chief Petersen gave an overview of the Inspections Division and the City of Ames Excellence Through People program. Agenda Item 4 City Council Goals Chief Petersen presented the City Council goals (commercial revitalization, connecting our community with each other and the City government, strengthening our residential neighborhoods and developing affordable housing opportunities)to the group. Agenda Item 3: Goals of the Rental Housing Program Chief Petersen explained the goals of the rental-housing program. Agenda Item 5 Status of the Rental Housing Program Chief Petersen showed where we are currently at with inspections on our three-year cycle (the Council has not adopted a resolution regarding the interval for inspections, however we have an administrative policy of three years)and that we would need to do 5589 rental unit inspections in 2005 to be current. Agenda Item 6 Proposed Changes to the Rental Housing Program Chief Petersen discussed that six communities in Iowa were used as benchmarks for how inspections were done as well as frequency of inspection. Ames was in the middle with inspections on a three-year cycle. The following five alternatives were identified by City of Ames staff: (handouts provided) 16. Lengthen inspection cycle from 3 to 4 years 17. Self evaluations 18. Targeted prioritizing 19. Part time/interns supplementing staff(2 will be hired this summer) 20. Private firm Cost effects for each of the five alternatives were given on a per unit increase. The rental-housing program is paid 100% by rental fees collected. Agenda Item 7 Customer Input Discussion on interns • This will happen this summer because the budget allows it, the City Council goal of one community and the need to get caught up exists. • Would like this to go on during the school year • They liked involving students. o Felt that interns should not inspect their own units (owned by the owners where they live) o that personality was important as well as communication. o They did not feel that age but, power, bias were concerns. • They suggested having interns work non-traditional hours; 3-7pm during the week or Saturdays. Re ntaJ Housing Prioritization duty 2005 v.4 101712005 Page# 40 of 54 Discussion on lengthening inspection cycle • This group was not in favor of lengthening the cycle 5, 6 or 7 years. Their concern was that multi family should have a shorter inspection cycle than a single family. • The group stated that by itself as an option lengthening the cycle from 3 to 4 years is not unreasonable, but other options may be better. • Use the 4-year cycle as a reward for landlords/property managers with a good track record. Question: What determines whether a rental passes or fails? Answer: The minimum housing standards are the safety guidelines. Items looked include stairwell, staircase, smoke detectors/alarm/extinguisher, windows, and locks. Do not look at aesthetics but are concerned with rubbish, old appliances;we are concerned for tenants' safety. Question: New buildings must follow the 2003 IBC and 2003 IRC so wouldn't they already be at safety standards? Answer: Yes, and when a new building is completed an inspection is done to issue a Certificate of Occupancy but a rental inspection is not done until the building is three years old. Question:Would you as tenants have a problem skipping one rental cycle inspection and instead inspecting new buildings at 6 years? Answer: The ownership group is more important than the age of the building. One tenant stated living in a new building currently but did not think the quality was good. Discussion on self-evaluation This is not their first choice as it's hard to verify, hard to collect accurate data and would take more time. This group was skeptic on the landlord's ability to be honest. They felt the only way this would work would be with sampling and then wondered what the acceptable margin of error would be. They suggested having the tenant(s)do the evaluation. Which led to questions as to whether all tenants would take the time, would they be vindictive? Chief Petersen stated that when the City does surveys only about 20% are returned. He also stated landlords were not very receptive of tenants completing evaluations. Suggestion was to compare results which would add a step to the process instead of streamlining the process. Discussion on prioritization This could be done by building type or building age. They felt that it should be done by the results of your next inspection. If good reward with 4 years, if poor down to 2 and if average keep at 3 years. The 2, 3,4 year cycles would be an incentive to focus on life safety. Discussion on privatization The group said no. Discussed cost sharing the savings with the landlords if there was any. Chief Petersen shared that the landlords did not favor this option. Question to tenants: Why did you rent the place you live at now? Answers: Location, price, number of roommates, upkeep. Discussion on ombudsman: This group did not like. They want to keep private and school life separate. They currently use legal services. Their suggestion was to hold a workshop showing how to be a good apartment dweller and how to select the appropriate living space for you. Rental Housing Prioritization July 2005 v.4 101712005 Page# 41 cat 54 Group Conclusions: • Did not favor self-inspections • Look at expanding interns throughout school year as well as non-traditional inspection hours • Use inspection cycle as reward/punishment. • Adding an additional FTE was second choice to using interns • Oppose university playing a role ie the ombudsman • Felt multi-family needed shorter inspection cycles than single-family residences. • Some concern that landlords/property managers are only in compliance during the inspection. • They did not feel that ISU interns would have a bias, they would be able to communicate with landlords/property managers, would not be intimidated and their age would not be a factor. Group Recommendations • Combine prioritization with interns. • Extend inspection cycle to 4 year for good units, leave at 3 for okay units and decrease to 2-year cycle for poor units. • Use interns during the school year and use non-traditional inspection hours like 3-7 p.m. during the week and Sat. inspections Rental Housing Prioritization Judy 2005 v.4 101712005 Page## 42 of 54 Appendix G Emailed Comments: Sharon Gruber: Sorry I haven't gotten back to you, Clint. I have to take care of a health concern right now, but please understand that the many previous years of "encouraging" landlords, managers, tenants to "do the right thing" only resulted in very temporary "abatements" until the inspector left. The recent enforcement of city codes has resulted in continual compliance by most. What I'm saying is, whatever your recommendation to City Council, do not reduce the level of enforcement regarding initiating inspections/consequences including denial/removal of Letter of Compliance and fines. Thank you, Sharon Guber Lad Grove: I had to leave the meeting early, so did not get to express my thoughts. First I think that the concept of having student interns from ISU to do inspections is a bad idea. It is good public relations, but terribly inefficient. You will have to train the interns, then you will have to supervise them to get consistency, and about the time they become dependable and proficient they will be gone and you will start the process over. You would be much better off, if you hired permanent part time persons to do the extra inspections on an as needed basis. There are an abundance of semi-retired or under employed qualified persons in this town that would do that kind of work for $10 to $15 dollars per hour and you would not have to pay them insurance benefits, vacation pay, etc. It is a much better solution to your problem. The time period for inspections should be spred to 4 or 5 years between routine inspections. Complaints and Property transfers will generate additional inspections and will probably alert you to the properties that need more frequent inspections. You said that your inspectors, inspect about one property per hour. That is a very low performance rate. When we inspect my properties, we inspect them all in about 3 hours, so that is about 12-14 per hour. Inspections are like every type of work, efficiency depends on the personel and the expectations of the boss. It would seem to me that the reason that Rental Housing Inspections was put under the jurisdiction of the Fire Department is so that you can utilize some of the on duty firemen at the fire station as inspectors. They should be able to do the inspections, instead of playing cards and watching TV. They are already on the payroll, so they can perform the additional function without any additional expense to the city. Many of them already have side jobs of businesses that they work at on their two days off. Rental Hoijsing Prioritization,/city 2005 v.4 10/7/2005 Page# 43 of 54 Appendix H 364.17 City housing codes. 1. A city with a population of fifteen thousand or more may adopt by ordinance the latest version of one of the following housing codes before January 1, 1981: a. The uniform housing code promulgated by the international conference of building officials. b. The housing code promulgated by the American public health association. c. The basic housing code promulgated by the building officials conference of America. d. The standard housing code promulgated by the southern building code congress international. e. Housing quality standards promulgated by the United States department of housing and urban development for use in assisted housing programs. 2. Every city with a population of fifteen thousand or more which has not adopted another housing code under this section by January 1, 1981, is subject to and shall be considered to have adopted the uniform housing code promulgated by the International Conference of Building Officials, as amended to January 1, 1980. A city which reaches a population of fifteen thousand, as determined after July 1, 1980, has six months after such determination to comply with this section. 3. A city which adopts or is subject to a housing code under this section shall adopt enforcement procedures, which shall include a program for regular rental inspections, rental inspections upon receipt of complaints, and certification of inspected rental housing, and may include but are not limited to the following: a. A schedule of civil penalties or criminal fines for violations. b. Authority for the issuance of orders requiring violations to be corrected within a reasonable time. c. Authority for the issuance of citations pursuant to sections 805.1 to 805.5 upon a failure to satisfactorily remedy a violation. d. Authority, if other methods have failed, for an officer to contract to have work done as necessary to remedy a violation, the cost of which shall be assessed to the violator and constitute a lien on the property until paid. e. An escrow system for the deposit of rent which will be applied to the costs of correcting violations. f. Mediation of disputes based upon alleged violations. g. Injunctive procedures. The enforcement procedures shall be designed to improve housing conditions rather than to displace persons from their homes. h. Authority by ordinance to provide that no rent shall be recoverable by the owner or lessee of any dwelling which does not comply with the housing code adopted by the city until such time as the dwelling does comply with the housing code adopted by the city. 4. A city which is subject to the uniform housing code or which adopts another housing code under this section may provide reasonable variances for existing structures which cannot practicably meet the standards in the code but are not unsafe for habitation. 5. Cities may establish reasonable fees for inspection and enforcement procedures. 6. Cities with populations of less than fifteen thousand may comply with this section. 7. A city may adopt housing code provisions which are more stringent than those in the model housing code it adopts or to which it is subject under this section. [C24, 27, 31, 35, 39, § 6327 - 6451; C46, 50, 54, 58, 62, 66, §413.1 - 413.125; C71, 73, 75, 77, 79, §413.1 - 413.11, 413.13 - 413.125; C81, §364.17] 83 Acts, ch 101, §81 Rental Housing Prioritization July 2005 v,4 101712005 Page## 44 of 54 Appendix I Consolidated Report of Customer Input Sessions Regarding Prioritization of Rental Housing Inspections Four Meetings Were Conducted: Large Landlord/Manager Group Tuesday March 29, 2005 Tenant/Neighborhood Association Group Wednesday March 30, 2005 Small-Medium Landlords Group Monday April 4, 2005 Tenant Group Monday April 11, 2005 Five Alternatives Were Presented: 1. Lengthen the rental inspection cycle to four years (possibly longer). 2. Utilize self evaluations conducted by the landlord or manager. 3. Targeted prioritization of inspections. a. By age of structure b. By type of construction c. By type of occupancy d. By ownership group e. By history of previous inspections 4. Utilize part-time interns to supplement inspection staff 5. Utilize a private firm to replace all or part of the rental inspection services provided by the City. Rental Housing Prioritization Judy 2005 u.4 101712005 Page#45 of 54 Consolidated Comments Alternative 1: Lengthen the rental inspection cycle to four years (possibly longer). Comments from large landlord/manager group: This group would support lengthening the time between inspections. A four or five year inspection cycle is acceptable to this group. Comments from tenant/neighborhood association group: This group believed that the inspection cycle should be based on the quality of the landlord/property manager. They suggest using a deficiency rating system or past track record when deciding what cycle should be used. The cycles could be extended for a good inspection record and shortened to two years for a poor inspection record. There was no support for the option of extending the inspection cycle from this group. Some expressed a concern that three years was too long. Comments from small-medium landlords group: Some support was expressed for adding an additional full-time employee to the rental inspection effort. Some support was expressed for extending the inspection cycle to four years. Lengthening the inspection cycle should be tied to the history of past inspections and may be supplemented by the use of self inspections. Spot checking during the mid cycle could determine whether a complete check should be made. Comments from tenant group: This group does not favor lengthening the inspection cycle. The concern was expressed that multi-family units should have a shorter inspection cycle than single-family units. Some support was expressed for lengthening the inspections cycle from three to four years conditional upon sampling or self-evaluations being a part of the extensions. They expressed that there are better alternatives than lengthening the inspections cycle. Rental Housing Pi brlfi zatlo n.July 2005 v.4 1017,12005 Page#46 of 54 Alternative 2: Utilize self evaluations conducted by the landlord or manager. Comments from large landlord/manager group: The landlords like self inspections with the landlords being held accountable. The group agreed it was the track record, not the size of the ownership group, that matters. Spot checking would allow better use of City resources. The age of the building is not as important as the owner/manager group. The type of tenancy is not a good predictor of the need for inspections. Relying on the type of tenant will be very subjective. This group did not like the idea of renters being able to fill out self inspections. Comments from tenant/neighborhood association group: There was a lot of support for this alternative if the renter had a role in the process. The group was concerned about the necessity of training needed to accurately fill out an evaluation form since renters do not understand the City ordinances. There was concern about the level of student interest in making sure the occupant was the one filling out the form. This group does not support self evaluations by owners/managers. This group advocated a reasonable rate increase such as $6/unit/year to fund an additional FTE. Comments from small-medium landlords group: There is considerable doubt about the effectiveness of self inspections. Small landlords did not feel comfortable doing self evaluations in that they do not know the codes. Small landlords feel that it will take more time for them to conduct self inspections than to assist a City inspector. Comments from tenant group: Concerns were brought forward regarding difficulties in verifying the data, the collection of accurate data, and that this alternative would actually take more time. The group was skeptical on the landlords' ability to be honest. Self evaluations would have to be spot checked. Suggestions were made to have both renters and landlords fill out self evaluations and then for Inspections staff to compare the results. Concerns were expressed about the difficulty of conducting this and the amount of time that it would consume. Rental Housing Prioritization,July 2005 v.4 101712005 Page#47 of 54 Alternative 3: Targeted prioritization of inspections. Comments from large landlord/manager group: Large landlords would choose, as the basis for prioritization, the track record of the owner/management group. There is not a tie between the age of the building and the condition of the property. It is the owner/manager that controls the condition with some influence being from the tenant group. It is too subjective to label occupants as good or bad. The type of tenant should not dictate the length of the inspection cycle. If prioritization is used, it must be data driven and start forward instead of the City or the landlords going back to their inspection records. This group did not ask for a monetary reward but realized time is money. They are more interested in reducing their time commitment as a reward for previously good inspection records. Comment "Why should 80% of good managers/owners be paying for the 20% poor managers/owners?" They felt spot checking of good managers/owners and inspecting every unit in poorly managed addresses was a possible solution. They recommended using a system of rewards and penalties. The rewards should be longer inspection cycles and random sampling instead of inspecting every unit. Another recommendation may be to use a combination of self inspections every two years and spot inspections every four years unless spot inspections reveal problems warranting inspection of all units. Comments from tenant/neighborhood association group: Penalize landlords/managers with poor inspection records by increasing the frequency to two years. Reward those with good inspections by decreasing the inspection frequency to four years. Then send out self inspection forms at two year intervals with random sampling. Abate the cost for a clean inspection while charging $40 for the first re-inspections. Comments from small-medium landlords group: The group did not agree that a new building is safer than an older building. If a charge to conduct re-inspections is implemented, some leeway should be given as even the best landlords may get a ding for a battery. A two to four year span for rental inspections based upon the history of the building would be supported by this group. Owner/managers on a two year cycle should be charged a higher rate than persons on a three or four year cycle. Comments from tenant group: Prioritization could be done by building type or building age. They felt the best method was a two to four year cycle dependent upon the previous inspection results. Rental Housing Prioritization.July 2005 vA 10/7/200.5 Page#48 of 54 Alternative 4: Utilize part-time interns to supplement inspection staff Comments from large landlord/manager group: Several concerns were noted by this group regarding the use of interns. Of special concern was the use of interns during their busy time of the year in June, July, and August. Concerns were expressed about the interns' knowledge and consistency. Concern was expressed about power going to their heads. They feel they are getting quality inspections now and they enjoy the working relationship they have with the City's inspectors. No one from this group expressed any support for the use of interns. Comments from tenant/neighborhood association group: There were a couple landlords represented in this group who expressed that they are busier during the summer. Educating the interns will take time. There are concerns about the possibility of"power trips" by student interns. Overall, this group could see the use of interns during the school year if properly educated, and if good supervision was in place. Moderate to strong support for the use of interns was expressed. Interns will need a checklist during inspections Comments from small-medium landlords group: This group felt that interns should be provided with a checklist. This would reduce time needed for the intern to conduct the inspection and help consistency. Some thought that interns may be more thorough and take more time than an experienced City inspector. This group would like to have an opportunity to provide feedback on the intern program. Although some support for an intern program was expressed as a temporary way of catching up, this group does not want to see it long term. Interns should not be allowed to inspect units they live in or other units owned by their landlords. Comments from tenant group: The use of interns was this groups best alternative. The second option would be adding employees to the City staff. Suggested that the intern program be conducted during the school year. Strongly supported involving students in rental housing inspections. Felt that interns should not inspect their own rental units or those of the owner's where they rent. Felt that the interns' personality was important, as well as, good communication skills. They do not fear any age bias or age related problems, but are concerned about the interns' use of their powers or the interns starting with a bias. They suggested having interns work non-traditional hours; for instance, 3-7 PM during the week and on Saturdays. Rental Housing Prioritization July 2005 vA 101"Tt200 5 Page#i 49 of 54 Alternative 5: Utilize a private firm to replace all or part of the rental inspection services provided by the City. Comments from large landlord/manager group: The large landlord group was concerned with consistency. They were concerned about losing the relationship and not seeing the inspectors they have grown to know. They were worried about costs rising in the future (no guarantees of future cost control). Several landlords felt they have a good working relationship with the City of Ames inspectors and do not want to lose that. They suggested charging a $40 fee for first time re-inspection. No one from this group favored private inspections. Based upon experiences from some in this group in other communities, they felt that private companies were expensive and could take longer to do the inspection. There was a concern that firms will low ball their way into the community and increase rates later. Support was expressed for the low rental registration rates that exist currently in this city. Comments from tenant/neighborhood association group: This method could disconnect the community that we are trying to join together. This alternative could be used to catch up the approximately 1800 unit inspections we are behind. Who does the inspections is not a big issue to this group. Comments from small-medium landlords group: This group does not want a private company. Private companies increase the cost for rental inspections of single-family units and small apartment buildings. Comments from tenant group: This group did not like the idea of using a private company. Thought this type of program was in need of an official enforcement agent. Renta/Housing Ptiorifization July 2005 v.4 10/7/200 z Page 4 50 of 54 Ideas Generated in the Group Meetings 1. Do away with the free re-inspection and charge if re-inspections are necessary. This could possibly be on a sliding scale, where if there was only one item to re-inspect, nothing was charged; but, if there are two or three, a $30-$40 charge would occur. 2. A letter of compliance should be revoked if units are failing inspections. This could be done for some degree of severity, repeated failure to pass inspections, and/or repeated complaints. 3. A cooperative position should be established at ISU to fund an ombudsman position for off- campus housed students. Possibly this could be joint funded through ISU, Government of Study Body, and the City of Ames rental inspection program. 4. Post on the Inspection Division's area on the City's web site the checklist for rental inspections form. 5. Interns could work non-traditional hours; for instance, 3-7 PM during the week and on Saturdays. Rental Housing Prioritization July 2005 v.4 101712005 Purge#51 of 54 Appendix J Public Works has provided us a framework to cost estimate the program. Public Works' temporary employees are paid the standard $0.26 per mile and provide their own transportation. Hourly wages range between $11 and $13 per hour. Table 1 represents the cost per day for an intern: Salary and Mileage Costs Per Intern Per Day Average Number of Miles per day 40 Cost Per Mile for Mileage $ 0.26 Expenses for Mileage Per Day $ 10.40 Hourly Rate $13.00 $ 12.00 FICA (6.2%) 0.81 $ 0.74 Medicare (1.45%) 0.19 $ 0.17 Worker's Comp (1%) 0.13 $ 0.12 $14.13 Per Hour # of Hours Paid Per Day 8 8 Salary Per Day $113.04 $ 96.00 Vehicle Expenses Per Day $ 10.40 $ 10.40 Total Variable Costs Per Intern Per Day $ 131.44 $ 114.40 Estimated cost per hour $14.30 Summer 2005 Temporary Employee Costs The ISU academic calendar allows us to calculate an estimate of 66 available work days for each intern: Number of Workdays Available for a Summer Intern Start May 16, 2005 Training 5 days 5 Start on own inspections May 23, 2005 # of work days in May (May 23 to May 31) 6 # of Work Days in June 22 # of Work Days in July 20 # of Work Days in August (ends August 17th) 13 School resumes 22 August # of days inspecting 61 # of days on payroll 66 By first establishing the goal for the number of inspections we want to accomplish we can move to the calculation of the number of interns necessary. Second, we need to estimate the average number of inspections we can expect per day. The number of inspections per day is affected by factors including: the owner/managers' preparations and maintenance program, the type of structures, and the proximity of the units. Since we have a wide variation in the number of units inspected per day, a range was developed. Table 3 shows that we expect a summer intern to inspect somewhere in the range of 800 to 1,160 units. Table 3 Low Medium High Average Number of Units Inspected Per Day 13 16 19 # of days inspecting 61 61 61 # of Inspections Completed 793 976 1159 # of Inspectors to complete 2000 Inspections 2.5 2.0 1.7 Rental Housing Prioritization July 2005 v.4 101712005 Page#52 of 54 # of Inspectors to complete 3000 Inspections 3.8 3.1 2.6 The current estimate of 11,069 units means during an average year 3,689 units need to be inspected. In 2004, 3,600 units were inspected. Rental records show 1,789 units were overdue for inspections at the start of summer 2005. 5,478 = Number of rental units required to be inspected in 2005 to catch-up to three year cycle (3,689 units due in 2005 + 1,789 units past due = 5,589). Several factors are influencing the Inspection Division's abilities to conduct rental inspections. Construction levels in the City remain at historic highs. By committing to a dedicated plans examiner, less time is available for inspections. Revenue levels are exceeding projections. A goal of interns conducting a minimum of two thousand summer inspections was recommended. As such, a two intern program would fit into the center of Table 3 projections. Table 4 shows the estimated cost for a two intern summer program: Startup Costs $400 Cell Phones ( $50/month, 3 month rental) $150 Salary and Mileage Costs Per Intern Per Day $131 Number of Paid Days 66 Number of Interns 2 Total for 2 Interns for Summer $18,050 One option to pay for this intern program would be to utilize the increase in current year revenues to offset current year expenses. Program costs incurred after 1 July, 2005, can be included in the fiscal year 05/06 rental housing registration fees. Table 5 shows current year revenue projections: 04/05 04/05 YTD 03/04 04/05 Revenue Adopted YTD Adjusted Increase Fire Department $1,082,875 $817,752 $768,749 $1,074,828 -$8,047 Building Safety $752,171 $518,070 $502,019 $897,992 $145,821 Health $39,580 $31,166 $30,118 $39,580 $0 $1,874,626 $1,366,988 $1,300,886 $2,012,400 $137,774 Since startup costs occurred in the last fiscal year, and one half of the 66 day intern work period occurs in each fiscal year, The estimated costs follow: Fiscal Year 04/05 $9,225 Fiscal Year 05/06 8,825 Total $18,050 The $8,850 was added to the 05/06 rental registration fees. If the growth in units continues as expected and 400 additional units come on line, the rental rates will show only a slight increase. This pilot program has both great aspects and some anticipated issues. On the Pro side: The program helps facilitate the Council's goals. It provides fast relief to the continued growth of past due inspections. It is relatively low cost to other identified alternatives. On the issues side: Rr nial Housing Prioritization July 2005 v.4 101712005 Page#53 of 54 It has many assumptions. Some owner/managers may not want summer inspections. Some inspections will need to occur prior to the actual month in which their three year rotation falls. Projected Per Increase in 05/06 Unit Fiscal Year 04/05 05/06 05/06 With Costs Registration Interns for Fees Interns Single Family Dwellings $16.92 $17.14 $0.22 $17.89 $0.75 Duplexes $12.62 $12.84 $0.22 $13.59 $0.75 3 to 6 unit apartments $12.22 $12.44 $0.22 $13.19 $0.75 7 to 20 unit apartments $11.42 $11.64 $0.22 $12.39 $0.75 Over 20 unit apartments $10.92 $11.14 $0.22 $11.89 $0.75 Lodging and Boarding Houses $11.72 $11.94 $0.22 $12.69 $0.75 Fraternity and Sorority Houses $60.00 $60.22 $0.22 $60.97 $0.75 Revenue Generated $138,823 $145,785 $154,641 ISU Academic Year 2005/6 Temporary Employee Costs Hours Available for a Student Part Time Employee Start on own inspections Sept 1, 2005 # of work hours per week that 2 PT students work 27 ( 12 hours per week per student 6 hours one Saturday per month) # of total hours per month 108 Employee cost per hour (wages and expenses) $14.30 Cost per week for 27 hours $386.10 Cost Per Month $1,544.00 Cost per academic year $13,896.00 Projected Per Unit Per Unit Fiscal Increase in Costs Costs for Year Fiscal 05106 Fiscal for Academic 05/06 Year Registration Year Summer Year With Fiscal Year 04/05 Fees 05/06 Interns Interns Interns Single Family Dwellings $16.92 $0.22 $17.14 $0.75 $1.25 $19.14 Duplexes $12.62 $0.22 $12.84 $0.75 $1.25 $14.84 3 to 6 unit apartments $12.22 $0.22 $12.44 $0.75 $1.25 $14.44 7 to 20 unit apartments $11.42 $0.22 $11.64 $0.75 $1.25 $13.64 Over 20 unit apartments $10.92 $0.22 $11.14 $0.75 $1.25 $13.14 Lodging and Boarding Houses $11.72 $0.22 $11.94 $0.75 $1.25 $13.94 Fraternities and Sororities $60.00 $0.22 $60.22 $0.75 $1.25 $62.22 Rental Housing Prioritization,July 2005 v.4 101712005 Page#54 of 54