City Council Minutes 06-25-2007 Special
Special Council Meeting Minutes: 6/25/07
MINUTES
SPECIAL MEETING - MONTICELLO CITY COUNCIL
Monday June 25, 2007 - 6 p.m.
Members Present:
Clint Herbst, Wayne Mayer, Tom Perrault, Brian Stumpf and Susie
Wojchouski.
Members Absent:
None
1. Call to Order.
The workshop session began at 6 p.m. The purpose of the workshop was to address issues
raised at a previous Council meeting relating to the rental property licensing ordinance.
TemDorarv Landlords - Examples of these would be banks that had foreclosed on properties
or executors of estates where the property was being rented until it could be sold. It was
noted that in a foreclosure the borrower retains possession for a six month redemption period.
An exemption could be given for that six month period but if the rental continues beyond the
six month period then a license would be required.
Bad Tenants - This issue was raised by a landlord who said he could not evict his tenant
during the winter months. Legal counsel, Tom Scott said he is not aware of any statute or
regulation that states a tenant cannot be evicted in the winter. Clint Herbst said the tool for
the landlord is the letter of non-compliance from the City. The landlord can then take the
tenant who is in non-compliance to court. Brian Stumpf said it was not the City's goal to
physically stop tenants from their bad behavior but to give the landlord the means to take care
of it. If the landlord is working with the City to correct non-compliance no adverse license
action goes against their permit. Tom Scott stated the landlord needs to have in their lease the
provisions outlined in the ordinance.
Brian Stumpf expressed concern about the need to send out three notices. DJ Hennessey
stated the three notices covered three different occurrences. Brian Stumpf also questioned the
revocation of the license ifthere are three violations in a three month period. He felt it should
be a longer period of time such as three violations in a twelve month period. He also felt it
should be three notices per tenant. Staff stated in that situation then it would be necessary for
staff to track tenants rather than the property owner. Susie Wojchouski felt the three strikes
is per unit rather than three strike applying against all the units in the complex. Staff
concurred.
Susie Wojchouski questioned the complaint process. The tenant has to notify the property
owner of the non-compliance prior to the City going out there to inspect the site. lithe
violation does not exist the tenant pays the inspection fee. Susie Wojchouski asked about
tenant complaints and what fees are charged. DJ Hennessey stated if the landlord has been
notified by the tenant of the non-compliance but has not corrected it the tenant is not charged
for the inspection. Otherwise inspection fees are $50/hour with a minimum of one hour.
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Special Council Meeting Minutes: 6/25/07
Inspection from other entities such as HUD or MHF A were also discussed. In developments
financed by HUD or MHFA there are required inspections. Owners of those types of units
questioned the need for an additional inspection by the City as it just adds to the cost of
inspections that the landlord must pay. Clint Herbst felt the most intensive inspection list of
the various agencies involved is what should be followed. John Bergstad representing Cedar
Crest Apartments submitted some examples ofHUD inspection documents. Clint Herbst
believes that initiating the rental housing licensing ordinance will be a big undertaking that
will have to be handled by existing staff as more personnel will not be added. Allowing
inspections by other entities such as HUD or MHFA to be used as the inspection for the rental
property license would ease some of the work load of staff as well as reduce duplication of
services. He suggested that stafflook at the inspection reports ofHUD and MHFA and see
what is being covered. If the inspections cover the essentially the same items the City's
licensing inspection would cover, the Council felt a HUD or MHF A inspection could be
accepted in lieu of the City having to do the inspection. The HUD or MHF A inspection
would have to be done within six months of the licensing process.
The City's inspections should being focusing on those properties not inspected by other
agencies. Clint Herbst felt those inspections done by other agencies and the information they
contained should be passed along to the City. The City should be working with other
inspecting agencies to eliminate duplication but yet assuring all items are covered in the
inspection process. Tom Scott asked about the HUD inspectors and was told they are federal
or state employees (depending on what agency did the funding). There was some discussion
whether the inspections of the other agencies could be done so as to coincide with the
licensing time frame of the City.
Gary Anderson cautioned saying there are residential units that are government financed and
these units are some of the worse problem areas. Jeff O'Neill agreed that in lieu of a City
inspection the City could accept a written inspection from HUD as long as it was done within
six months of the City's licensing period.
The fees proposed to be charged under this ordinance were reviewed. Clint Herbst felt the
fees were too high. DJ Hennessey talked about the Star Program which gives a reduced rate
to those landlords who meet certain criteria set forth in the program.
Brian Stumpf asked if there are liability issues if something occurs after an inspection has
been done. Tom Scott stated generally there is not any City liability. Clint Herbst said getting
the ordinance up and going will be a huge undertaking and staff should focus on that. If after
a period of time staff finds they need to re-inspect HUD inspected homes it can be done.
John Bergstad said that in HUD inspections each year a random number of units and the
common area is inspected. The landlords cannot tell the HUD inspectors what to inspect or
which units to inspect. John Bergstad said if the landlord doesn't respond to the issues listed
in the inspection report, they could lose funding. He also said the manager for the complex
inspects the units every six months so they do in-house inspections as well.
Clint Herbst felt that non-homestead property should be the focus of staff. Tom Scott asked if
homestead property would be exempt from the licensing procedure. Clint Herbst suggested
having everyone who is a renting a home sign up with the City and if the property is
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Special Council Meeting Minutes: 6/25/07
homesteaded there would be no charge. Should the homestead property status change and the
City is not notified the property owner should be highly penalized. Clint Herbst felt it was
important to get this process started as soon as possible with the realization that the ordinance
may change once it has been in operation.
The initial inspections required by the ordinance will take considerable staff time. Clint
Herbst asked how this was going to be scheduled. Do they start in one area and then work
through another area? Is there a late fee established if the property owner doesn't apply for a
license? The fee proposed was $60 but Council felt it was too high. Susie Wojchouski asked
about bonding of employees. Gary Anderson said city staff would ask the owner or manager
to make arrangements with the City to have a representative of the landlord with the city
inspector when the inspection is done. John Bergstad said the landlord has to give tenant
written notice of an inspection. Gary Anderson indicated the Council will periodically get a
green sheet report on the licensing activities.
Tom Scott asked about the August I st license application deadline and whether it should be
moved back to September I st. John Bergstad asked how much lead time the City would give
them on inspection notices.
Workshop closed at 6:45.
D eu.u"" ~S~Y----
Recording Secretary l.\
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