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Transmittal - 4/21/2023ERIN MENDENHALL DEPARTMENT of COMMUNITY Mayor and NEIGHBORHOODS Blake Thomas Director SALT LAKE CITY CORPORATION 451 SOUTH STATE STREET, ROOM 404 WWW.SLC.GOV P.O. BOX 145486, SALT LAKE CITY, UTAH 84114-5486 TEL 801.535.6230 FAX 801.535.6005 CITY COUNCIL TRANSMITTAL ________________________ Date Received: _________________ Lisa Shaffer, Chief Administrative Officer Date sent to Council: _________________ ______________________________________________________________________________ TO: Salt Lake City Council DATE: April 21, 2023 Darin Mano, Chair FROM: Blake Thomas, Director, Department of Community & Neighborhoods __________________________ SUBJECT: Dangerous and Boarded Buildings Permit Fee Increase STAFF CONTACT: Ken Anderson, Chief Building Official, Building Services Division, 801- 535-6624, Kenneth.Anderson@slcgov.com DOCUMENT TYPE: Ordinance RECOMMENDATION: Approve an increase to the boarding permit fees based on City Council’s Legislative Intent from November 2020 and adopt related code changes. BUDGET IMPACT: None. BACKGROUND/DISCUSSION: On November 17, 2020, the Council requested that the Administration propose a change in boarded building fees to capture the City’s full cost of both monitoring, boarding, and emergency services at those properties. The intent was to increase boarding building fees to recuperate the City costs related to the inspection and monitoring of dangerous and boarded buildings. COST ANALYSIS & FINDINGS The Finance Department conducted a cost analysis and found that each boarded building permit costs the City a total of $22,537 annually between Civil Enforcement and emergency services (i.e., Police and Fire). The City currently charges $902 for the initial year permit fee and $1,546 for subsequent years. Lisa Shaffer (Apr 21, 2023 14:59 MDT)04/21/2023 04/21/2023 COLLECTION OF FEES The City has some limitations in collecting fees. The City Attorney’s Office has advised that Civil Enforcement refer fees to the Collections team in Finance, which collects fees through Small Claims court. Small Claims court limits the amount sought to $15,000. It is the City’s practice to submit a maximum of $14,000 for collection, which leaves room for court fees and other costs to stay under the $15,000 threshold. Collection of these fees and the Small Claims process is cumbersome, and the higher fees could result in more instances of non-payment, placing a higher burden on Civil Enforcement and Finance staff. Any fees above $14,000 would add staff time to the tracking and collection of the fees because amounts over $14,000 would have to be submitted in multiple filings to the court. PROPOSAL Increase the Annual Fee The proposal is to increase the annual fee up to $14,000. This would result in the recuperation of approximately 62% of the actual City costs. The current fee structure has an initial year fee and an annual fee for subsequent years. The proposal is to amend the initial year fee and make it the same amount as the subsequent yearly fee. The purpose of this proposed change is to simplify the process of tracking and collecting unpaid fees. Increase the Administrative fees In addition to an increase in the annual boarding permit fees, this proposal requests an increase the administrative cost fee and the late penalty fee. The administrative cost fee is only charged when a City contractor performs boarding on private property, and serves as an effective way to penalize those property owners who are not involved in the boarding and maintenance of their property (See Exhibit A, Step 3). It is proposed to increase the administrative cost fee from $129 to $500. The late penalty fee is currently $25 for every thirty days in which the annual fees are not paid. An increase to $100 for this fee is recommended. Other proposed changes to the ordinance will further streamline the process of documenting and maintaining boarded buildings. Instead of requiring a “permit to board,” we’ll require a property owner to “register” their property as a boarded building and pay an annual registration fee. PUBLIC PROCESS: TBD EXHIBITS: A. BOARDED BUILDING PROCESS GRAPHIC SHEET B. ABANDONDED BUILDING COST ANALYSIS C. ORDINANCE – TRACKED CHANGES D. ORDINANCE – APPROVED AS TO FORM EXHIBIT A: BOARDED BUILDING PROCESS GRAPHIC SHEET VACANT/SECURE BUILDING An unoccupied building having all openings, such as windows and doors, secured against entry, where windows are fully glazed and the doors are secured by means of a lock. (Ord. 53-20, 2020) BOARDED BUILDING* A building in which accessible openings, such as windows and doors, are secured by a secondary means against entry. Examples of securing a building by a secondary means includes, but is not limited to, boarding and fencing. DEFINITIONS 18.48.030 ORDINANCE *ANNUAL FEES: IF A BUILDING MEETS THIS DEFINITION, THE PROPERTY OWNER IS REQUIRED TO PAY THE ANNUAL FEES. *BOARDED BUILDING: A BUILDING IN WHICH ACCESSIBLE OPENINGS, SUCH AS WINDOWS AND DOORS, ARE SECURED BY A SECONDARY MEANS AGAINST ENTRY. EXAMPLES OF SECURING A BUILDING BY A SECONDARY MEANS INCLUDES, BUT IS NOT LIMITED TO, BOARDING AND FENCING. BOARDING PROCESS COLLECTION OF ANNUAL FEES If unpaid within 30 days, the unpaid amounts are summited to Small Claims Court. Typically a judgment is awarded for any unpaid fees. BUILDING IDENTIFIED Building inspected to determine status. If the status is deemed Unsecured or Boarded Building* it will be inspected monthly, until the building becomes occupied. 1 2 4 3 6 BOARDING REQUEST Initial 10-day notice sent, requesting boarding or securing of the building. If not completed within 10 days, the City sends a contractor to board the property. COST RECOVERY FOR BOARDING Bill sent to property owner for contractor cost, plus administrative fee. If unpaid within 30 days, the City will place a lien on the property. Contractor Cost: $500+ Administrative Fee: $129 Proposed Administrative Fee: $500 CONTINUED MONITORING Property inspected monthly to monitor status. If the status is deemed Unsecured the process restarts. Annual Boarding Fee assessed for buildings that remain boarded longer than 4 months (start date based on the initial 10-day notice). ANNUAL FEES Bill sent to property owner for Annual Boarding Fees. Initial Permit Fee (first year): $902 Annual Fee (after the first year): $1,546 Proposed Annual Fee (every year): Up to $22,537 (recommended $14,000) 5 OVER 4 MONTHS EXHIBIT B: ABANDONDED BUILDING COST ANALYSIS SALT LAKE CITY CORPORATION Community and Neighborhoods/Building Services/Civil Enforcement COST JUSTIFICATION FOR ABANDONED BUILDING BOARD UP FEES Dec‐21 Summary Note 1: Replacement Cost and Maintenance on Fleet Vehicles 10,689$                            Note 2: Unbilled General Fund Administrative Fees 40,587                              Note 3: Unbilled CAN Administrative Costs 126,649                            Note 4: Operating Costs 11,047                              Note 5: Direct Labor and Unbilled Building Costs 185,973                            Total Annual Expenditures 374,944$                          Less Admin Fee Total Cost 10,629$                            364,315$                          Number of Fees Collected ‐ FY21 32                                     Annual cost per permit 11,385$                            FY22 CFS Abandoned Buildings Annual Fees Initial Year 849$                                 Subsequent years 1,456$                              Annual fully loaded cost per permit exceeds CFS Rates. Cost justified. Summary Note 1:Replacement Cost and Maintenance on Fleet Vehicles Depreciation Annual Vehicle Period Depreciation   Count Est. Cost (months) Costs 10 vehicles 463,013$                           70.4 8,409$                             Cost % to allocate Annual maintenance costs 21,395$                             0.11 2,280                               10,689$                           (Cost data per Denise Sorenson ‐ Fleet) Note 2: Unbilled General Fund Administrative Fees  $ Allocated Derived Fees per FY2021 to Departments Percentage $$ All City Depts (except IMS)2,201,186$                        1.09% 23,986$                            IMS Admin 1,160,682                          1.09% 12,648                              Risk Management 362,738                             1.09% 3,953                                Total Admin Fees 3,724,606$                        40,587$                           Note 3: Unbilled CAN Administrative Costs  $ Allocated Derived to Departments Percentage $$ CAN Administrative Costs ‐ FY2021 ‐ 0600100 915,588$                           1.09% 9,977$                              Building Services Admin Costs ‐ FY2021 ‐ 06005000 382,424                             30.51% 116,672                            Total Administrative Costs 1,298,013$                        126,649$                         CAN Dept General Fund FTE's 176                                     Building Services 59                                        Civil Enforcement Cost Center FTE's 18                                        % Civil Enforcement Performing Abandoned Building Duties 11% % CAN Performing Abandoned Building Duties 1.09% % Building Services performing Abandoned Buildings 3% Note 4: Operating Costs $ to be Derived FY201X NonPersonal Services Operating Costs allocated Percentage $$ 0601400 Civil Enforcement 103,679$                           11% 11,047$                            11,047$                           Note 5: Direct Labor and Unbilled Building Costs Job Title Hours Spent per Year Annual Cost FTE Costs CIVIL ENFORCEMENT OFFICER II 33 89,373$                             0.02                                 1,816.0$                           CIVIL ENFORCEMENT OFFICER I 2004 83,143.1                            1.23                                 102,599                            SENIOR CIVIL ENFORCEMENT INSPE 688 107,642.4                          0.42                                 45,576                              OFFICE FACILITATOR II NON UNIO 57 76,774.8                            0.04                                 2,695                                SENIOR SECRETARY 21 56,795.3                            0.01                                 734                                   CIVIL ENFORCEMENT SUPERVISOR 87 113,211.8                          0.05                                 6,065                                BUILDING SERVICES MANAGER 174 135,513.4                          0.11                                 14,520                              HOUSING/ZONING LEGAL INVES UNI 51 117,329.6                          0.03                                 3,685                                Total Direct Salaries 174,005$                         Unbilled Building Costs est. 260 square feet per employee $24 per square feet costs (per Prop Mgt) $6,240 Number of FTE 1.92 11,968                             Total Direct Labor and Unbilled Building Costs 185,973$                         Note 7: Full Time Equivalent (FTE) Information CAN General Fund FTE's (FY22 Adopted Budget Staffing Document, Less 3 employees paid out of 1/4 cent Sales Tax Transportation Fund) 176                                   Building Services 59                                     Civil Enforcement Cost Center FTE's (per Civil Enforcement Manager)18                                     Note 8:Hours:  1,624 annual base hours was computed as follows:      Total Hours Available Annually (40 hours x 52 weeks)2,080                                     Less: Vacation (2.77 hours X 52 weeks or 3 weeks per year)144                                        Less: Sick (0.77 hours x 52 weeks or 1 week per year)40                                          Less: Breaks (260 days per year x 0.50 hours)130                                        Less: Holidays (8.0 hours x 12 days per year)96                                          Less: Meetings/ Training (estimate)46                                          Annual Work Hours Average FTE 1,624                                FTE Equivalent Performing Abandoned Building Duties X 1.92                                  Total Annual FTE Hrs Equivalent 3,114                                Note 9:% of costs allocated to Abandoned Buildings for Civil Enforcement (Cost Center) and for CAN (Department) Total FTEs in CAN (Less 3 employees paid out of 1/4 cent Sales Tax Transportation Fund)176.00                              TOTAL FTEs in Civil Enforcement 18.00                                Time Study FTEs for Abandoned Buildings 1.92                                  % of Civil Enforcement working on Abandoned Buildings 11% % of CAN working on Abandoned Buildings 1.09% EXHIBIT C: ORDINANCE – TRACKED CHANGES SALT LAKE CITY ORDINANCE No. ___ of 2023 (Amending Chapter 18.48, Article II Related to Boarding or Temporarily Securing Buildings; Amending the Consolidated Fee Scheduled Related to Boarding or Temporarily Securing Buildings) An ordinance amending Salt Lake City Code Chapter 18.48 Article II, and also amending those portions of the Salt Lake City consolidated fee schedule related to boarding or temporarily securing buildings. WHEREAS, on May 17, 2011 the Salt Lake City Council (“City Council”) adopted Ordinances 2011-23, 2011-24 and 2011-25 to authorize and create the Salt Lake City consolidated fee schedule; and WHEREAS, the City Council desires to update portions of the Salt Lake City Code related to boarding or temporarily securing buildings , and to also update the corresponding portions of the Salt Lake City consolidated fee schedule; WHEREAS, it is now proposed that the Salt Lake City consolidated fee schedule be amended to update fees related to boarding or otherwise temporarily securing buildings as shown in the attached Exhibit A; and WHEREAS, the City Council finds (i) the fees and fee information set forth in Exhibit A is necessary, reasonable, and equitable in relation to regulatory and service costs incurred by the City; and (ii) adoption of this ordinance reasonably furthers the health, safety, and general welfare of the citizens of Salt Lake City. NOW, THEREFORE, be it ordained by the City Council of Salt Lake City, Utah: SECTION 1. That Salt Lake City Code Section 18.48.205 shall be, and hereby is, amended to read as follows: 18.48.205: REGISTRATION: A. Registration Required: Registration is required to board a building. In the case where the city causes the boarding work to be done pursuant to Section 18.48.245, the city will register the property on which the building is located and will bill the record owner the yearly registration fee pursuant to Section 18.48.215 is not required to obtain a boarding permit. B. Form Of PermitRegistration Process: Registration of a property on which a boarded structure is located must be donePermits for boarding a building must be applied for on a form provided by the building official or designee. The form shall specify the following: 1. The address of the structure to be boarded or temporarily secured; 2. The type of building; 3. For residential structures, the number of dwelling units; 4. For nonresidential buildings, the number of square feet of all building faces at ground level; 5. The name, address, and telephone number of a person authorized to act as an agent for the owner for performing the owner's obligations under this article, who lives within forty (40) miles of Salt Lake City; and 6. Whether the property has the required external water source for landscaping, if landscaping is required. SECTION 2. That Salt Lake City Code Section 18.48.210 shall be, and hereby is, amended to read as follows: 18.48.210: RESERVEDINITIAL FEES: For the first year of any boarding, at the time of filing the application, the applicant shall pay the fees shown on the Salt Lake City consolidated fee schedule for each structure. SECTION 3. That Salt Lake City Code Section 18.48.215 shall be, and hereby is, amended to read as follows: 18.48.215: YEARLY REGISTRATION FEES: A. Annual Fee: Upon registration and oOn or before each yearly anniversary of the date the property was registered pursuant to this articleissuance of a boarding permit, a property owner desiring to maintain a boarded building shall pay the annual boarding registration fee shown on the Salt Lake City consolidated fee schedule. B. Late Penalty Fee: A late feepenalty as shown on the Salt Lake City consolidated fee schedule of twenty five dollars ($25.00) shall be assessed by the city for each thirty (30) days, or any portion thereof, in which the boarding registrationannual fees have not been paid up to amounts allowed by state law. C. Failure tTo RegisterObtain Permit: Boarding a building before registeringobtaining a permit pursuant to this article shall result in a fine of up to twenty five percent (25%) of the boarding registration application fee specified in the Salt Lake City consolidated fee schedule. D. Collection oOf Fees: If the property owner fails to pay either the initial boardingregistration fees or the annual boarding fees , the city may take legal action to collect any amounts owed. SECTION 4. That the Salt Lake City Consolidated Fee Schedule shall be, and hereby is, amended, in pertinent part, to reflect the fees set forth in the attached Exhibit A, and that a copy of the amended Salt Lake City Consolidated Fee Schedule shall be published on the official Salt Lake City website. SECTION 5. That a revised copy of the Salt Lake City Consolidated Fee Schedule that reflects the amendments set forth in the attached Exhibit “A” shall be published on the official Salt Lake City website. SECTION 6. That this ordinance shall become effective on the date of its first publication. Passed by the City Council of Salt Lake City, Utah t his ___ day of ____________ 2023. ______________________________________ CHAIRPERSON ATTEST: _________________________ CITY RECORDER Transmitted to Mayor on ____________________________. Mayor’s Action: _________ Approved. ____________ Vetoed. _______________________________________ MAYOR (SEAL) Bill No. _______ of 2023. Published: __________________ Ordinance amending boarded building code and associated fees APPROVED AS TO FORM Salt Lake City Attorney’s Office Date:___________________________ By: ____________________________ Katherine D. Pasker, Senior City Attorney EXHIBIT A Service Fee Additional Information Section Boarding and Abatement work Boarding administrative costs $500 Plus actual costs 18.48.100 Boarding Registration Fee $6,000 Per Parcel 18.48.215 Late Penalty for Registration Fee Nonpayment $100 Per 30 days (or any partial month) until paid 18.48.215 Other Abatement administrative costs $129 Plus actual costs for weeds abatement and other abatement work. 18.48, 9.16, 21A.20 EXHIBIT D: ORDINANCE – APPROVED AS TO FORM SALT LAKE CITY ORDINANCE No. ___ of 2023 (Amending Chapter 18.48, Article II Related to Boarding or Temporarily Securing Buildings; Amending the Consolidated Fee Scheduled Related to Boarding or Temporarily Securing Buildings) An ordinance amending Salt Lake City Code Chapter 18.48 Article II, and also amending those portions of the Salt Lake City consolidated fee schedule related to boarding or temporarily securing buildings. WHEREAS, on May 17, 2011 the Salt Lake City Council (“City Council”) adopted Ordinances 2011-23, 2011-24 and 2011-25 to authorize and create the Salt Lake City consolidated fee schedule; and WHEREAS, the City Council desires to update portions of the Salt Lake City Code related to boarding or temporarily securing buildings, and to also update the corresponding portions of the Salt Lake City consolidated fee schedule; WHEREAS, it is now proposed that the Salt Lake City consolidated fee schedule be amended to update fees related to boarding or otherwise temporarily securing buildings as shown in the attached Exhibit A; and WHEREAS, the City Council finds (i) the fees and fee information set forth in Exhibit A is necessary, reasonable, and equitable in relation to regulatory and service costs incurred by the City; and (ii) adoption of this ordinance reasonably furthers the health, safety, and general welfare of the citizens of Salt Lake City. NOW, THEREFORE, be it ordained by the City Council of Salt Lake City, Utah: SECTION 1. That Salt Lake City Code Section 18.48.205 shall be, and hereby is, amended to read as follows: 18.48.205: REGISTRATION: A. Registration Required: Registration is required to board a building. In the case where the city causes the boarding work to be done pursuant to Section 18.48.245, the city will register the property on which the building is located and will bill the record owner the yearly registration fee pursuant to Section 18.48.215. B. Registration Process: Registration of a property on which a boarded structure is located must be done on a form provided by the building official or designee. The form shall specify the following: 1. The address of the structure to be boarded or temporarily secured; 2. The type of building; 3. For residential structures, the number of dwelling units; 4. For nonresidential buildings, the number of square feet of all building faces at ground level; 5. The name, address, and telephone number of a person authorized to act as an agent for the owner for performing the owner's obligations under this article, who lives within forty (40) miles of Salt Lake City; and 6. Whether the property has the required external water source for landscaping, if landscaping is required. SECTION 2. That Salt Lake City Code Section 18.48.210 shall be, and hereby is, amended to read as follows: 18.48.210: RESERVED SECTION 3. That Salt Lake City Code Section 18.48.215 shall be, and hereby is, amended to read as follows: 18.48.215: YEARLY REGISTRATION FEES: A. Annual Fee: Upon registration and on each yearly anniversary of the date the property was registered pursuant to this article, a property owner desiring to maintain a boarded building shall pay the annual boarding registration fee shown on the Salt Lake City consolidated fee schedule. B. Late Penalty: A late penalty as shown on the Salt Lake City consolidated fee schedule shall be assessed by the city for each thirty (30) days, or any portion thereof, in which the boarding registration fees have not been paid up to amounts allowed by state law. C. Failure to Register: Boarding a building before registering pursuant to this article shall result in a fine of twenty five percent (25%) of the boarding registration fee specified in the Salt Lake City consolidated fee schedule. D. Collection of Fees: If the property owner fails to pay the registration fees, the city may take legal action to collect any amounts owed. SECTION 4. That the Salt Lake City consolidated fee schedule shall be, and hereby is, amended, in pertinent part, to reflect the fees set forth in the attached Exhibit A, and that a copy of the amended Salt Lake City consolidated fee schedule shall be published on the official Salt Lake City website. SECTION 5. That a revised copy of the Salt Lake City consolidated fee schedule that reflects the amendments set forth in the attached Exhibit “A” shall be published on the official Salt Lake City website. SECTION 6. That this ordinance shall become effective on the date of its first publication. Passed by the City Council of Salt Lake City, Utah this ___ day of ____________ 2023. ______________________________________ CHAIRPERSON ATTEST: _________________________ CITY RECORDER Transmitted to Mayor on ____________________________. Mayor’s Action: _________ Approved. ____________ Vetoed. _______________________________________ MAYOR (SEAL) Bill No. _______ of 2023. Published: __________________ Ordinance amending boarded building code and associated fees APPROVED AS TO FORM Salt Lake City Attorney’s Office Date:___________________________ By: ____________________________ Katherine D. Pasker, Senior City Attorney March 28, 2023 EXHIBIT A  Service Fee Additional Information Section   Boarding and Abatement work    Boarding administrative costs $500 Plus actual costs 18.48.100   Boarding Registration Fee $6,000 Per Parcel  18.48.215     Late Penalty for Registration Fee Nonpayment $100 Per 30 days (or any partial month) until  paid  18.48.215   Other Abatement administrative costs $129 Plus actual costs for weeds abatement  and other abatement work.  18.48, 9.16,  21A.20