Rental License and Inspector Fees, Budget Request for InspectorCopyrighted
March 7, 2019
City of Dubuque Action Items # 1.
ITEM TITLE: Rental License and Inspection Fees, Budget Request for
Inspector
SUMMARY: A) RESOLUTION (with New I nspector) Approving the
increase in fees for the Rental Licensing and Rental
Inspection Program
SUGGESTED DISPOSITION:
OR
B) RESOLUTION (without New I nspector) Approving the
increase in fees for the Rental Licensing and Rental
Inspection Program
Suggested Disposition: Receive and File; Adopt
Resolution Either A or B
ATTACHMENTS:
Description Type
New Inspector Request and Fee Change Staff Memo Staff Memo
Resolution with New Inspector Approved Resolutions
Resolution without New I nspector Position Resolutions
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Alexis M. Steger, Housing & Community Development Director
DATE: March 4, 2019
Dubuque
All -America City
2007 • 2012 • 2013
RE: Fiscal Year 2020 Request for New Inspector Position & Rental License
and Inspection Fee Increases
Background
The Housing & Community Development Department requested an additional inspector
position (1.0 FTE) in the Fiscal Year 2020 budget. This memorandum provides
additional information supporting the need for this request, and a means for funding the
position through rental license and inspection fee increases.
Discussion
The tiered inspection program was adopted July 1, 2018 as a way for the City to focus
inspection time and effort on properties that are in poor condition with property owners
who are not working on improving those conditions. With the Fiscal Year 2019 budget,
an additional inspector position was created to support the new tiered system and start
working towards a 5 -year inspection schedule for all rental property in Dubuque.
Although the lack of inspectors available for general rental housing inspections has
slowed the progression of the 5 -year inspection cycle, a much more important piece of
data has been shown to make a significant impact on the inspection divisions ability to
maintain a 5 -year cycle.
Calendar year 2018 regular cycle inspection information was run in January 2019, and it
showed a first inspection fail rate of 95% per structure in calendar year 2018. Data
provided to the City Council in March 2018, showed a 5 -year cycle might be possible
with the addition of one inspector position. However, this data did not take into account
this high of a fail rate, the use of priority category designation of owners/agents, and the
high number of complaint inspections/condemnations experienced.
The efficiency of inspections has been evaluated through observations, time tests and
process mapping. The following table shows the average time typical inspections take
an inspector. A multi -family unit may take less time, while a single-family structure may
take significantly more time, therefore an average must be used. This time includes
scheduling, mailing notices, travel time, time inspecting the unit, time inspecting
common space/exterior, report writing and follow-up with owner/agent.
Initial Inspection
1 -Hour
Complaint Inspection
1 -Hour
First Re -Inspection
1 -Hour
Second & Subsequent Re -Inspections
4 -Hours — 2 Days
Second and subsequent re -inspections involve citations, court appearances, additional
notifications and certified mailings, condemnations, relocations, and many other
administrative tasks that consume at a minimum 4 -hours. However, these tasks can
take as long as two days' worth of work. In 2018. Just over 55% of units required a
second re -inspection.
Experience has shown that many owners/agents are in the unit being inspected for the
very first time when the inspector shows up on-site. No pre -inspection check was
completed by the owner. To incentivize owners/agents to complete the maintenance
required and check a unit prior to city inspectors showing up on-site, a change to the
inspection fee structure is being proposed.
Budget
Currently, the initial inspection fee is $50 and the first re -inspection is free. The
proposed change will make the initial inspection free and all re -inspections would be
$85. To strengthen the effort to have units pass initial inspection, the Housing &
Community Development Department will provide additional information to landlords on
how to pre -check the most commonly failed items on an inspection. This information will
be accessible on the Cities website and will be mailed with each inspection notice.
Additionally, the Code Enforcement Division of the Housing & Community Development
Department is to maintain a 91% self-sufficiency rate. In the proposed Fiscal Year 2019
budget, a Community Development Block Grant subsidy of just over $109,000 is
required to meet the 91% rate, making the actual self-sufficiency rate 73%. In an effort
to meet the 91% self-sufficiency rate, an increase to the Dwelling/Rooming Unit
Licensing Fees of $5.00 is also proposed. The chart below shows the FY 2019 rental
license and inspection fee schedule and the proposed fee schedule.
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Fee Schedule FY 2019 FY 2020
Initial Inspection
$ 50.00 $
1st Re -Inspection $
$ 85.00
2nd and Subsequent Re -Inspection $ 70.00 $ 85.00
Structure License
$ 30.00 $ 30.00
Dwelling Unit License
$ 20.00 $ 25.00
Rooming unit License
$ 10.00 $ 15.00
To add an additional inspector in Fiscal Year 2020:
Recurring Costs $85,041
Non -Recurring Costs $24,587
Recurring Revenue $40,356
Total Net Cost $69,272
The non-recurring costs for the additional inspector include a mid-sized car ($20,910),
computer ($2,275), smartphone ($350) and a tablet ($1,052). The non-recurring
equipment purchases are being recommended to be paid from other general fund
revenue sources identified in the revised budget recommendation memo from the City
Manager.
Additional Revenue from Rental Inspection Fee Changes: $45,135
Additional Revenue from Rental License Dwelling/Rooming Unit Increase: $56,430
Total Additional Revenue from Fee and License Increase $101,565
The additional revenue will cover the recurring cost of the additional inspector ($44,685)
and reduce the amount of Community Development Block Grant funds used for rental
inspections ($56,880).
Community Development Block Grant (CDBG) funds subsidize rental inspections. The
fiscal year allocation for CDBG funding has not been received by the city, and therefore
the CDBG budget is only a projection of resources available. Implementing the above
fee changes allows the code enforcement division to be closer to 91 % self-sustaining
and will free up CDBG resources to be used in other community development activities
if the allocation of funds is not reduced from the current budget projections.
Fiscal Year 2019 adopted budget had a recommended fee increase to the rental license
structure fee of $5.00. This increase was adopted by the City Council in the final Fiscal
Year 2019 budget; however, was not adopted by a City Council resolution. The
resolution attached adopts the Fiscal Year 2019 Budget approved increase to the rental
license structure fee.
3
The following table shows General Housing Inspections percent self-supporting prior to
the additional full-time inspector and fee and license increases and then the revised
FY20 Budget Recommendation with the additional full-time inspector and fee and
license increases:
General Housing Inspections
Expense:
FY 20
Recommended
FY20
New Inspector
Fee/License
Incr.
FY 20
Revised
Employee Expense
$497,928
$ 85,041
$ 582,969
Supplies and Services
$ 85,958
$ -
$ 85,958
Machinery and Equipment
$ 20,910
$ 24,587
$ 45,497
Total Expense
$604,796
$109,628
$ 714,424
Revenue:
Rental Licenses
$334,325
$ 56,430
$ 390,755
Inspections
$ 82,000
$ 74,835
$ 156,835
Fines/Miscellaneous
$ 36,323
$ 10,656
$ 46,979
Total Revenue
$452,648
$141,921
$ 594,569
Community Development Block Grant
$109,536
$ -
$ 52,656
Net Cost Without CDBG
$152,148
$ 119,855
Net Cost With CDBG
$ 42,612
$ 67,199
Percent Self -Supporting Without
CDBG
74.84%
83.22%
Percent Self -Supporting With CDBG
92.95%
90.59%
Recommendation
This memo provides information for the Fiscal Year 2020 Budget Hearing on March 7th,
2019. I respectfully request the adoption of the attached resolution increasing the rental
licensing and inspection fees and approval to add an additional inspector position to the
Housing & Community Development Department.
Cc: Jennifer Larson, Budget Director
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RESOLUTION NO. 90-19
RESOLUTION APPROVING THE INCREASE IN FEES FOR THE RENTAL LICENSING AND
RENTAL INSPECTION PROGRAM
Whereas, the Housing and Community Development Department is requesting an increase in
the rental licensing and inspection fees in order to self -sustain the General Housing Code
Enforcement Division; and
Whereas, the effective date of rental licensing structure fee is March 7, 2019, and the
effective date of all other rental licensing and inspection fees is July 1, 2019; and
Whereas, the following increase in the licensing and rental fees are hereby proposed:
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the rental licensing fees for structures will be increased from $25 to $30
effective March 7, 2019; and
Section 2. That the rental licensing fees for dwelling units and rooming units will be changed
effective July 1, 2019 as follows:
Dwelling Unit be increased from $20 to $25;
Rooming Unit be increased from $10 to $15; and
Section 3. That initial inspection fees be reduced, effective July 1, 2019, as follows:
Dwelling Unit Inspection be reduced from $50 to $0;
Rooming Unit Inspection be reduced from $30 to $0;
Section 4. That the penalty fees, effective July 1, 2019, will be as follows:
First Re -Inspection fee increase from $0 to $85;
Re -Inspection fee for 2nd and subsequent re -inspections increase from $70 to $85;
Passed, approved and adopted this 7th day of March 2019.
Attest:
• e.
Kevin/S. Firnstahl, City Clerk
Roy D. Buol, Mayor