Tenant Criminal Background Check Program Funding11 111111111111111 11111111111111111111111111
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Tenant Criminal Background Check Program Funding
DATE: September 27, 2011
Dubuque
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All-America City
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In 2010 in response in part to a Safe Community Task Force recommendation, the City
of Dubuque passed an ordinance mandating that landlords do background checks on
prospective tenants. In order to more easily facilitate these checks, the City decided to
provide a free service for landlords which would allow them to obtain nationwide
background checks on prospective tenants for their rental properties. Prior to that the
Dubuque Police Department could only provide free checks of local arrest records, and
would also reimburse landlords for nationwide checks they did on their own. The free
local checks were used fairly regularly by some landlords but very few landlords
submitted for reimbursement for doing nationwide checks.
After much research and negotiation, Rental Services, Inc. (RSI) of Arvada, CO. was
chosen to provide the nationwide criminal background checks and the program became
operational and was made available to local landlords on July 1, 2011. Under the terms
of the contract the City has with RSI, the City pays $8.00 for each criminal background
check they provide.
As part of the planning process for the program, approximately $10,000 was determined
to be available for landlord tenant checks during FY 2012. As of September 26, 2011,
1,475 tenant checks have been obtained from the vendor at a cost of $8.00 per check
for a total expenditure of $11,800.
Chief of Police Mark Dalsing recommends that an additional $38,300 be allocated for
continued criminal background check fees through the rest of Fiscal Year 2012. Budget
Director Jennifer Larson has indicated that funding is available, and has identified the
Spahn and Rose lease of the former city garage facility as the source of those funds.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Mark M. Dalsing, Chief of Police
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THE CITY OF
DUB MEMORANDUM
Masterpiece on the Mississippi
September 27, 2011
TO: Michael C. Van Milligen
City Manager
FR: Mark M. Dalsing
Chief of Police
RE: Tenant Criminal Background Check Program Funding
INTRODUCTION
This memo will discuss the free criminal background check service provided by the City
of Dubuque to Dubuque landlords doing background checks on prospective tenants, as
required by City Code. In the initial months of the program we have experienced high
demand for the service resulting in a corresponding depletion of the budgeted funds
allocated for the service.
BACKGROUND
In 2010 in response in part to a Safe Community Task Force recommendation, the City
of Dubuque passed an ordinance mandating that landlords do background checks on
prospective tenants. In order to more easily facilitate these checks, the City decided to
provide a free service for landlords which would allow them to obtain nationwide
background checks on prospective tenants for their rental properties. Prior to that the
Dubuque Police Department could only provide free checks of local arrest records, and
would also reimburse landlords for nationwide checks they did on their own. The free
local checks were used fairly regularly by some landlords but very few landlords
submitted for reimbursement for doing nationwide checks.
After much research and negotiation, Rental Services, Inc. (RSI) of Arvada, CO. was
chosen to provide the nationwide criminal background checks and the program became
operational and was made available to local landlords on July 1, 2011. Under the terms
of the contract we have with RSI, we pay $8.00 for each criminal background check
they provide us.
As part of the planning process for the program, approximately $10,000 was determined
to be available for landlord tenant checks during FY 2012. As of September 26, 2011,
1,475 tenant checks have been obtained from the vendor at a cost of $8.00 per check
for a total expenditure of $11,800.
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DISCUSSION
$5,000.00 was budgeted for each of fiscal years 2011 and 2012 to cover expenses
related to background check fees. At the end of FY 2011, $4,717 of the FY 2011 funds
remain and are hoped to be carried over to supplement the FY 2012 appropriated
funds, providing a total of $9,717 to cover FY 2012. Based on usage of the service to
date, we will deplete the budgeted funds for background checks by the end of
September.
Based on the first approximate three months since the service started, demand for the
background check service is averaging approximately 500 background checks per
month. If the demand for the background check service remains at this pace, we will be
conducting approximately 6000 checks for the year. At our fee of $8.00 per check, this
will require an additional funding amount of approximately $38,300 to cover projected
use of the service, based on current experience of the demand for the service.
Going into this new program we really didn't know what type of response we were going
to receive or the numbers of requests the ordinance would garner. While we anticipate a
reduction in the number of checks per month as landlords get accustomed to the
service and tenants settle for the winter season, we will need to be prepared in case the
demand continues.
With the current use data, and data compiled over the next few months, the Department
will be able to provide a more accurate assessment of the program and will address it in
upcoming budget documents. Based on this data we will also be able to re- negotiate
with RSI or negotiate with other vendors to get the best deal when our one -year contract
with RSI expires.
Throughout this process the City has worked closely with landlords, especially the
Dubuque Area Landlords Association, to explain changes brought about by Safe
Community Task Force recommendations, including the new background check
ordinance. The Dubuque Police Department has received positive feedback from
landlords about the free service. Several landlords have commented that the turnaround
time on receiving the completed background checks is very fast and have described it
as, "impressive," and, "phenomenal," noting that wait time as been as short as 5
minutes. Landlords have also expressed appreciation to the City for working so closely
with landlords and providing the service for free. Landlords have also noted that the
service has helped them in their tenant screening process, and that they have not heard
of another city that provides such a service to its landlords.
RECOMMENDATION
Based on the above analysis of the use of the criminal background check service by
local landlords, I would recommend that an additional $38,300 be allocated for
continued criminal background check fees through the rest of FY 2012.
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Budget Director Jennifer Larson has indicated that funding is available, and has
identified the Spahn and Rose lease of the former city garage facility as the source of
those funds.
ACTION REQUESTED
Review of this memo and consideration of additional funds being allocated to cover an
anticipated additional expense of $38,300 related to the criminal background check
service provided to landlords.
cc: Jennifer Larson, Budget Director
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