Agenda - Public Works Committee - 01/17/2012

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Councilmember Backous noted staff has more background in these issues to make the judgment and the Council can review, after the fact, to keep an eye on the process. He felt the policy should include a process for staff to handle emergency situations. Chairperson McGlone asked if that is an option if there is a public health issue. He noted the process could be expedited if the property owner proves they have exhausted all other financing avenues, waives the public hearing, and agrees to a 25% surcharge. City Engineer Himmer stated the policy can be drafted to circumvent the Council process should there be an imminent health concern, the property owner waives the public hearing and assessment, proves they have exhausted all other funding mechanisms, and agrees to the 25% surcharge. If the property owner will not waive the public hearing, then the full process would be required. Public Works Director Olson explained if the property owner is not willing to make the correction or follow the process, the Building Official has the right to condemn the house. The Committee discussed whether assessments are paid in full at the time of ownership transfer. City Attorney Goodrich advised that assessments can follow the property if the buyer is willing to assume those costs. City Engineer Himmer raised the option of offering incentive such as reimbursing a percentage of the surcharge if the property owner finds alternative financing and pays the City back. Councilmember Backous stated the City needs to insure the property covers all costs incurred and he did not support the City turning into a bank with a complicated process. The Committee discussed different terms and percentage of discounts that would cover the City's costs while still offering an incentive for the property owner to find alternate financing. Councilmember Wise supported a shorter payback term and higher discount. The Public Works Committee reached consensus to recommend offering a 5% discount on the surcharge if a lump payment is received within the first 2-5 years. City Engineer Himmer agreed because if waiving the assessment process, the City's costs will be minimal. Chairman McGlone suggested some of the restoration items be offered to the property owner in an effort to keep down costs. City Engineer Himmer recommended that be left to staff's discretion through negotiation instead of making it part of the policy. He asked whether the Committee supported a minimum or maximum requirement for proving financial ability. Public Works Committee / December 13, 2011 Page 3 of 7