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HomeMy WebLinkAbout19-Community Development CITY OF SAN BERNARDINO REQUEST FOR COUNCIL ACTION From: M. Margo Wheeler, Director Subject: An Ordinance of the City of San Bernardino amending the Municipal Code to add Chapter 15.27 entitled "Crime-Free Rental Housing Program". Dept: Community Development Date: April 28, 2011 MCC Date: May 16,2011 Synopsis of Previous Council Action: 03/27/10 - Mayor and Common Council set goals for proactive public safety strategies, emphasizing cooperation by Code Enforcement, Fire and Police personnel to enforce safety regulations and standards and to engage the community in crime prevention. 04/18/11 - The Mayor and Common Council referred the matter to the Legislative Review Committee. 04/19/11 - The Legislative Review Committee heard input from staff concerning the establishment of the Crime Free Rental Housing Program Ordinance and the Inland Empire Apartment Association. The Legislative Review Committee requested Community Development work with the City Attorney's office in modifying the ordinance previously submitted and forward to full council. Recommended Motion(s): 1. That the Ordinance be laid over for final adoption. 2. That a Resolution establishing the annual fee as recommended be adopted at the time of ordinance adoption. 3. Authorize the Director of Finance to reinstate a Code Enforcement Officer II position that was deleted as part of the 8% budget reductions to staff the Crime-Free Rental Housing Program as outlined in the staff report from M. Margo e r, Director Community Development Department. M. Margo Wheeler, Director Contact Person: Margo Wheeler Phone: 5357 Supporting data attached: Staff Report Ward(s): Citywide FUNDING REQUIREMENTS: Amount: $104,146 Covered by Annual Inspection Fee Source: No impact to the General Fund Acct. Description: Finance: Council Notes: Agenda Item No. jq 05-/w-c3011 r4p Ut (!.fJU.t/Cf Pt.f16 CITY OF SAN BERNARDINO- REOUEST FOR COUNCIL ACTION STAFF REPORT Subiect: An Ordinance of the Mayor and Common Council of the City of San Bernardino adding Chapter 15.27 entitled "Crime-Free Rental Housing Program" to the San Bernardino Municipal Code. Backpround The Crime-Free Rental Program was developed by the Mesa Arizona Police Department in 1992, with the goal of reducing crime, drug, and gang activity in rental properties. The program sponsored by the International Crime-Free Association, and provides training or other assistance to local agencies in the administration of their programs. The program spread to more than 2,000 cities in the United States with successful programs causing an average reduction in crime between 75-90%. The purpose of the program is to gain the commitment of property owners, managers, tenants, and the community to maintain properties free of illegal or destructive activity and to promote a higher quality of life within each neighborhood. The City of San Bernardino initiated a crime-free multi-family rental program in 1995. However, that program was discontinued in 2008, because of budgetary constraints. Program participation was on a voluntary basis with program costs absorbed by the City. In recent months, there have been heightened requests from landlords, members of the community, including various neighborhood associations, for the return of a crime-free rental program. The previous program consisted of 3-phases for certification: 1. An 8-hour landlord training class 2. On-site property inspection utilizing tools of crime prevention through environmental design (CPTED) -locks, lighting, landscaping and cleanliness of the property 3. Tenant involvement through resident crime prevention training From 1995 to 2008, 275 property owners completed Phase 1 of the certification and approximately 180 properties participated in Phase 2 site inspections. Once all three phases of the program were completed, the Police Department would issue a program sign that was posted on the property and intended to give current and prospective tenants a level of comfort that the property owner has taken precautions to make the property safe, clean, and hopefully crime-free. The previous program was initially run by the San Bernardino Police Department with a program coordinator and the on-site inspections conducted by a Community Service Officer 1. Because of budget issues, all positions and operational costs were eliminated from the Police Department's budget in FY 2008-09. Analvsis The Code Enforcement Division currently participates with the Fire Department in the Multi- Family Rental Program with a focus on enforcing the City's property maintenance codes. 1 However, the program does not address criminal activity or crime prevention education. The Crime-Free Rental Program would add new services provided by City staff that focus on community relations, crime prevention, and education to foster safer-healthier neighborhoods. Therefore, staff proposes implementing this additional initiative that relates to the Council's safe community goal that includes a proactive strategy to improve the community. Staff researched more than 200 California cities with active crime-free programs. Most have an incentive based voluntary program. However, some cities require one or more portions of the program to be mandatory as a condition of maintaining the business license. These portions include the 8-hour class, or the Crime-Free Lease Addendum. Survey results found that: I. The City of San Diego makes the program mandatory for properties with 10 or more police cal1s for service within a 90-day period. 2. The City of Fontana mandates participation for al1 new rentals. 3. The City of Oceanside has a mandatory program that prohibits drug activity on rental properties. 4. The City ofVictorville instituted a mandatory program for al1 rental properties (multi- family, single-family, rooms for let). Failure to participate in the program is a misdemeanor and can include suspension or revocation of the business license. 5. The City of Hemet is currently developing a mandatory crime-free program for all rental property types under the program name Hemet ROCS. This program, if approved, would mandate completion ofal1 three phases of the crime-free program. 6. In March 2009, the City of Montclair passed an ordinance titled Illegal Drugs, Violent Crime, and Gang-Related Crime Eviction Program that requires property owners to evict tenants involved in specified criminal activity. Failure of the property owners to evict problem tenants can result in criminal prosecution or other remedy. Voluntary programs require that the majority of program costs be absorbed by the City, lacks participation from all owners, minimizes community involvement, and fails to meet the City's crime prevention and safety goals. If the program remains voluntary, the City would lack thc ability to enforce crime free standards. Voluntary programs with an incentive typical1y waive all or a portion of an owner's business registration fee. Currently owners ofrental housing must pay a business registration fee that is based on income. Owners whose income is less than $25,000 pay a flat business registration fee of $60.00. The City Clerk's Office estimates that over 50% of property owners pay more than $60.00 with an average business registration fee being in the $80-$100 range. A voluntary program with an incentive would cause the City to absorb the entire cost of the program, and may also result in a loss of revenue if fee reduction were to be established as an incentive. 2 Proposed Crime-Free Rental Housing Program Staff recommends that the Crime-Free Rental Housing Program be mandatory for all multi- family rental properties with the possibility of phasing all single-family rental properties into the crime-free model. Successful programs increase community participation, provide accountability for property owners, lower maintenance costs, and the proven crime prevention methods and program phases improve public safety for tenants, property owners, and the community. The City has approximately 860 apartment complexes with more than 17,000 rental units. The program will consist of three phases; an 8-hour training class, inspection of the properties to verify implementation of Crime Prevention through Environmental Design (CPTED) elements, and maintenance of CPTED standards plus active participation in the Neighborhood Watch Program. Phase One: Training (Mandatory) Property owners and managers receive trammg from various City departments on crime prevention techniques, fire prevention, health and safety concerns, information regarding CPTED standards, the benefits of tenant screening, crime-free lease addendum, and monitoring or responding to criminal activity occurring on rental properties. Courses would be held once a month for the first year of the program, and scheduled as needed for subsequent years. (See attachment for course breakdown). The property owners are provided with a checklist of CPTED standards. Phase Two: Inspection/ Contact Information/ Lease Addendum (Mandatory) Following training, the property owners have 30-days to bring their rental units into compliance by implementing a Crime-Free Lease Addendum for all new tenants and the property owner shall provide the program coordinator with direct and immediate contact information for the property owner, managers, and/or a local responsible party for the property. Following the 30-days, the property owners will be required to have the properties inspected to confirm implementation of CPTED standards. Each property will be allotted one inspection as part of the annual fee with each subsequent inspection requiring an additional fee. A certificate will be issued to the owner upon completion phase 1 and phase 2. Phase Three: CPTED Standards & Active Participation (Voluntary) Requires a crime-free commitment from the property owners and management to maintaining the rental properties to the CPTED criteria and shall continue with an annual re-certification in the program. An additional incentive for property owners would be participating or hosting a National Night Out event, establishing a Neighborhood Watch Program, or gathering tenants to further educate and strengthen the community through contact and communication to accomplish the goal of fostering safer-healthier neighborhoods. If the property owner completes all three phases, the property will qualify to receive certification signage. If at any time a property owner who has completed all three phases of the program falls from compliance, the property shall have the certification status revoked. Failing to comply would also include any rental property that has ten or more calls for service from the Police Department, Fire Prevention, or Code Enforcement Divisions. Service calls may be based on 3 individual departments or accumulative within a one-year period. As a mandatory program, the City would be able to enforce City ordinances for property owners who fail to participate in the program with administrative citations, civil penalties, or other legal remedy. A mandatory program offers many benefits including requiring owners to include the Crime-Free Lease Addendum that provides owners additional legal options for tenant eviction against tenants that allow or conduct certain prohibited activities (gang, drug, or other specified criminal behavior). An Ordinance can also mandate that an owner have an on-site manager for properties with a specified number of units (more than 10) and require owners to provide 24-hour contact information. With mandatory requirements, the City then has additional enforcement tools to require compliance, especially with problem owners. The implementation of the program requires changes to the municipal code including authorization of the program, requirements for participation, requirement of the Crime-Free Lease Addendum, and contact information for property owners. Proposed Cost of the Program The proposed program would transfer costs to property owners, therefore, not affecting the general fund. In order to fund the mandatory program, an ordinance amending the San Bernardino Municipal Code and fee resolution are required. Exa mole I Property Type # of Properties 1st Year Fee Multi-Family (4 - 90 units) 822 $150 Annual Total: $123,300 Exa mole II Property Type # of Properties 1st Year Fee Multi-Family (91-199 15 $170 units) Annual Total: $2,550 Ex amole III: Property Type # of Properties 1st Year Fee Multi-Family (200+ units) 23 $185 Annual Total: $4,255 4 Fiscal Impact The following costs are estimates that compare the cost of the previous program with the costs of the new program, with current staffing of one Code Officer II position serving as the program coordinator. Previous Proe.ram Personnel Costs Coordinator CSO I Salary & Benefits $85,278 $51,084 $136,362 Total Operating Costs Total Program Cost Total Cost $15,300 $151,662 Salary & Benefits $81,966 Total Operating Costs Total Program Cost Total Cost $81,966 $22,180 $104,146 The following charts represent the current minimum fees for multi-family properties (4 or more units). The Crime-Free Rental Program fees at $150 per property, with the potential for a sliding scale based on number of units and inspection time. Current Fees (Minimum) Business Registration (income based) Multi-Family Reutal Insp. (4-units) $ 60 $ 178.85 Total Current Fees $ 238.85 Staff Recommendation Proposed Fees (Minimum) Business Registration (iucome based) Multi-Family Fire Inspection Program (4-units) Crime-Free Rental (per complex) Total Estimated Fees $ 60 $ 178.85 $ 150 $ 388.85 I. That the Ordinance be laid over for final adoption. 2. That a Resolution establishing the annual fee as recommended be adopted. 3. Authorize the Director of Finance to reinstate a Code Enforcement Officer II position that was deleted as part of the 8% budget reductions to staff the Crime-Free Rental Housing Program as outlined in the staff report from M. Margo Wheeler, Director Community Development Department. 5 Attachments: A - Proposed Annual Fee B - Estimated Program Cost C - Ordinance D - Top 25 Surveyed Cities by Population E - Top 25 Surveyed Cities Program Comparison F - 8-Hour Course Description G - Copy of Crime-Free Lease Addendum H - CPTED Inspection I - Crime-Free Program Comparison 6 ') Crime-Free Rental Housing Program. Estimated Program Cost and Proposed Inspection Fee Cost Analysis Worksheet 4-90 Units DepartmentJOivisJon Fund Account User Foe Doseriotion ~- Date Code Compliance Crime-free Rental Hausinv Prowam 03/31/2011 Description of sorvice, demand, subsidy, and other comments: rireCl cosls Personnel Costs Labor Rates SlrJljl1t Time Irlrge Total Direct DepL ~r Div TOlal8urclened "~l1(S bv ;vl.llL:ltI0r Position l.JbUl stiller Is LJtorCosl o.'crhaad LaborCos~Hr Position per l,nl: ~:ost "er Code Compliance Officer II 34.15 10.25 44.40 4.4395 48.83 2 9767 Tolal Burdened Personnel Costs per Unll of Service 9767 Material & Rental Costs '\ j Descnplion CoslEach Quantity l~eqUlred UllirCosl Regular MaiJinas 0.42 1 0.42 Tolal Other costs per Unit of Servir.6' 0.42 Other Costs (ECluipmont, facility rental, part.t1me labor w/o benefits) Dp.scnf):ion CuslEach CJuillltityRequireu Ul1ilCost Vehicle Expense 40 40.00 100 40.00 rotal Other costs per Unit of Ser\lice 40.00 Comoarlsons to roposed ee More (Less) than S.B. Jurisdiction Fee per Unit Dollars Percentaae San Bernardino n/a nla Riverside 000 000 0.0% Ontario 000 0.00 0.0% p F T'Jr"ls'''.'''.~D''et:I:::';SI_J...18...Q9 C", ',\-"t" Ce" &A'1m", RoJ."'li;:'>'.'". 2219 1f-i(l.2B .~'~I S"r.l(e L"Sl:t;'''1 Recommended Fee _~50.QO ...~_..-,._".,."" ----1Q.2Jl '.'_"".'''!'-''''''''-~,,'-I ____.1Jl..O '~e ." .~,~~ ,. 1 "0 no ATTACHMENT "A" ) Crime-Free Rental Housing Program - Estimated Program Cost and Proposed Inspection Fee Cost Analysis Worksheet 91-199 Units Q~pJrtmentJDivision Fund Account User Foe OescriDtion - Date .-- Code Compliance Crime-Free Rental Housing Program 03iJl <ZU 1 , Description of service, demand, subsidy, and other comments: rreCI custs Personnel Costs Labor Rates S~;]glll ["I1C Fnrge fol.:ll[),rect :Jept. ~r DIV Total3JriJel1eu IlolofSby Imal,alJd Position Liter BeneHs l3borCost o.cmea(j L;JoorCusVHr Position pelurut C()~t ~ijr Code Comnliance Officer II 34.15 10.25 44.40 4.4395 48.83 225 109.88 Total BurtJeneu Personnel Costs per Unit of Service 109.88 Material & Rental Costs Ull~cription CoslEach OuanbtyRtlqUlred UnitCosl Regular Mailinas 0.42 1 0.42 Total Other costs per Unll of Service: 0.42 Other Costs IEauioment, facilitv rental, <art-time labor wlo benefits) DescnpllOll Cost Eacl1 Quantity Required UMCOSI Vehicle EXDcnse 40 40.00 1.00 40.00 Total Other costs per Unit of Service 40.00 Comnarisons to Pronosad Fee More (Less) than 5.B. Jurisdiction Fee per Unit Dollars Percentaae San Bernardino n/a nfa ~:'erside 000 0.00 0.0% Ontario 000 000 0,0% - T ,;t<l' S~""CC u""ct Cv~1 15030 ':'I').','i",le ';en .!.. A~r"'" '>,'le41l';ur',. 24.15 T ~,I,;~r"(.eC:'''U'''1 17J JS Recommended Fee 17n 00 ------""'..."0, ___,Ll.5 ',r' ".,..;.,nr,Jt __Jl.OO "" ,. "'''~ I..,,'~ "'" 1 70 (;(1 A rTACHMENT "A" ) Crime-Free Rental Housing Program - Estimated Program Cost and Proposed Inspection Fee Cost Analysis Worksheet 200+ Units Department/Division Fund Account User Foe Doscription Oalo Code Compliance Crime-Free Rentai Housing Program U331:2~11 Description of service, demand. subsidy, and other comments: I D,,"ct 'costs Personnel Costs Labor Rates Slra'g/1! TIn1~ ~Wl\lll TolalDircct Dopt, orOl~ TotillAurdefled Hew, hy T~!all.Jtlu Position ,-Jbor Benefits Laboreost Ovtllhtlild LaborCosf/Hr Pos,~o.;ll Def Unit Coslpar Code Compliance Officer II 34.15 1025 44.40 4.4395 48.83 2.5 122.09 Total13urdened Personnel Costs per Unit of ServicE!: 122.09 Material & Rental Costs ) :lescflpLon CoslEaCh Quantity Required lJnilCcsl Regular Mailings 0.42 1 0.42 Totar Other costs per Unit of Service 0.42 Other Costs (Equipment, facilitv rental, art.time labor w/o benefits) DascriOllon Cost Each QUClllbty f~aqLJi'Btl Un;tCOSI Vehicle Expense 40 40.00 1.00 40.00 Total O:her cosls per Unit of Service 40.00 Comparisons to Prooose ee More (less) than S.B, Jurisdiction Fee per Unit Dollars Percentaae San Bernardino nla nla Riverside 0.00 0.00 0,0% Ontario 0.00 0.00 0.0% .- dF T"'il- s,>"''''~ n",,,,, :>SI-----1fl2...5J C:I',- ....',~.. ';tjl' &- A~n1,,, R>l'e'ti;'!;,:"'. 26 !J lHB fl/ T.)'d; S~:"";~ C','lI..,"1 Recommended Fee .. ",,~ ~,. 111500 _:L5} _',LQO liFi ~t1 ".~~,,,~,, '.. " ,.,. "'j", '-',"'1 ATIACHMENT "A" ) 1((llkLllt,.ro.:<,;l1i<.:IlIUltil..'..:rlJ - .;()uJI bl,l ., .~\ >);) ~,~ ,~ 2 ';;1)!Ij : I ~ I. f- I I I [ Crime F~ee Rental Housing Proyram . EstImated Program Cosfs and Revenue J-~O UNlfS 1',,,,1],'11 :,'p.'it.:p 1'1l11..: I h\li:r~ I \lllllUJ ",i1~llV 1ICi,.LltIllClIl I \\,:rh.;,.J Ih1urh I{.l,<: llel\e/its \. Bc'II~'lih ru/;!l F..lillmlt> l'll,t I'~r ,\p;&rllll~nl ('ulIIpl...., l~~tjll1.11l'd jm',,~ rc\<:nLll', b;lS.:tJ (,ll} S2;; ,\11-1<.\ \Iith J. pr,)pl\sl'd 1'<:0.: \lf5(51) per ,lpJltllU':1\1 ;':"Illpk.\ and a <:,,[k~t1ol1 raIl' \.If luu"'o S 123.300 r\)p Sll'p I I 8 \'ear I T Ie Ycar 2 ') ./ Staff<:(lSIS It ul positions .\nnuiI .'Saarv l'lldilS uta ost rotal Cust CoJ..: hll\Jr..:cmell! tJllict:r J/ I 61,! 15 20.851 SI.%6 S(l,()(l~ ISuhlot:11 c~1. \laffrmt I I I I 81,966 86,064 SIan-un (usts - NUllc M&O - Ikparll11l'l1tJ.1 inh:rn;ll ~l'f\ Io.:e ,'liJrg:.:s. laDer, [)(lslal!e, el,,;, ....s,,;al:iling bv .'i(~;) III y....ar;; ~.I97 :-;.11()(1 "1&0. City\\iJc mll'rIlJ.1 s,,;f\ II.:C ..:harges, pap:.:r, '()slal.!c, d..:. <.:scal<lting bv 5",6 III 'r"cilr:2 13,(IIU 14,(J~J fotal cslimatt'lInroflr:lIll etlsl 104,1-16 109,353 1,'ll\\\j,k lhc:r11t'.hl 1'-;III1\,tl....! ("''it II!.!! ATTACHMENT "B" ) ) \'",kl.n/;nn:Jlll'll[lllli..:<.:rIJ , IlL;l:, ~! I,,~j I ~5 ~2 ';1]41) 5111:1, " ::1 - I --------j I Crirne Fre'~ Rentoll Housing Proyr;llll' Estiln,lIcd Program Costs and Revenue 91-199 UNITS i'."lll,'11 r"p Sllop 111l1~ (h,'llI-S f \l1llU<l1 S;llal\ Ikp,1l11ll1.:1l1 lh..:rh.:ad r j"lId\ I.'.~ltc lkndlts \\.lh"lldits r,,[;l1 ~>\llmatc ("usll'u .\partUli'1I1 (Ul11llllo.\ 1',llJ) r<.:\,'lll1';. ti,! >Ill J.\<.'rago.: ll(Sf1(1 \IF]{'s II,1lh ;l 1..:<.'.1t ji I jl) Pl'! aparllllcm l'nrnplt'~ Jnd ,l ~',>llt'ctiull rato.:0f 1111)% S 129,000 s Top Step IS 1 II YClIr I T Ie \'earl T Ie , IJt <':\hls ;ru }\lSllluIlS Wlua . Jar\' cncllts ola u.\1 ilia ust ('(ld~ hlli-lr":l.:f11l.:II( Ot1ic..:r /1 1 ()1,lJ5 20,S51 X' .9()() ~6,lJ(l-l I SulJlulJI t'st. slaff cn.~t I I 1 1 81,966 86,06-1 S[;.tn-tln ..:,lslS - ~\\IK M&O - DcpJrlmclltaJ into.::mal 'icr....i.:c d1argcs, InaDcr, D\)Slal'C, t'tc, \'scalalin" bv 5% in Year 2 S,[97 X.(j(}6 I\l&() - CitywjJ~ internal ser....ice charges, papcr, J\bla 'c, ctc..l;:scal;tlinJ! bv Y!'o in Yt';tr 2 [J.n] 14,6SJ Total r,\(imatr(] Ilrut.::ram cost 104,146 109,353 l':I\I\i,k lJ\nlh.'1\1 1-,11111.\:1.:,: l " ,~\ 11!.l! ATTACHMENT "B" ) ) .. .' '-,-, \. ,d~ ["1l!l\[~','J\l'.:1I1 ( )tli~':f II 2 , (d,ll) ~(j,.'\5 I .._~ S' )I,I.tO ~(l 'Ill 1';'11 i ~ Crime Free Rental Housing Program. Estimalltd Program Costs Jnd Re',lt1I1UlI 200+ UNITS I"''illl''ll i'llp .\1-:1' li'l1<': I!lPlIrSJ \nll'111 'i lhn I!Ollrl,l{,Llt: Ikl'olftJl1<':llt Ikl" riB ',\.Ikndib (h..:d,',u rut,,1 ~~lilH.lh' ("\II'l'r\I'MIII\l'llf ('\llllpl", lutall<':\ <.:nulC. foc ~1l1 >1\ ICrag..: llf .:'.'lI\1FR', \\ Ilh 11 ko: .11 '; 1 ,'1~ per ,lp~lrtl11L'nl <':\)l11pk\ and a (ulkcll\1I1 rat<.:<lfllIUQa S ",25S Top Step Year t Year 2 Stall" CllSI~ If ofnOSltions Annual Salary Bendits TlllalCosl TlllalCu'il Code [nforl'CJIlCIlI Ofli..:l.'r II I 61.1 15 20,SS] HI,l)()o i\6.064 ISuhtulaJ 1;"1. slaffcns[ I I I I 81.966 86,06./ Start-un ..:,)~ts . 1\. 'Ile M&()- Departmental illtl2mal 'ilCrvicl'chargl's, Janel", 11l1sta~e. dc, ..:s.;a\J!inl' hv ~o/;) in '{car 2 S,197 X,(106 r.1&O - CitywiJ~ intcrnal scrvi~c <:harg~s, papcr, D(lSlJI!.<:, dc, ~scalaljJlI!. b~ 5~o ill YL'ar 2 13,983 J.U.l~J r()tall'~[illlatl'd tinier-am cost I04,1~6 109,353 -j 1 ('Jt~ \\ IJC (ht'rhCJd [,11];1,11:.:,1 (.'.;t I,HJ.I~ ATTACHMENT "8"