City Council - Regular Meeting

Heat. Heat. Heat. Heat. Heat. Heat. Heat. Heat. Heat.

Heat. Heat. We're going to focus in on some updates from the administration. So, thank you everybody for coming and I will quickly mic pass over over to you all to kind of take them off.

So, I'll just start and then I'm going to pass it to Katherine. Um, we have a lot this is a lot tonight. So, I'm just kind of warning you in advance. This is all um related to the BU Bureau of Building Standards and Safety, which you would have known as code enforcement before. Um and we're going to go through kind of each of the things we're talking about. I want to say before we start, this is a study session. As you know, nothing here is in stone. We have work to do with you. You'd have to make approvals here. So, both for your benefit and for the public's benefit, I don't want this to be construed as this is gospel now. It's not. We're bringing to you to say let's talk about this. We have some suggestions. Okay. So, with that, hand it to Catherine.

Awesome. So, um for some that don't know me, my name is Katherine Easterling. I'm the director of neighborhood and economic development, which I oversee our building standards and safety uh code enforcement. And so, today's uh presentation is really going to focus on our rental uh program transition, uh fee modernization, and then also uh any ordinance updates that will be uh be focused on those. And so jumping into slide two, um our executive summary, uh so the bureau uh is really proposing uh updates to our rental and mechanical inspection services. Uh we're really looking to improve this from our housing quality, strengthen property, um property maintenance, which is our code enforcement. You'll keep hearing me say property maintenance. We're looking to transition our phrasing from saying code enforcement to our property maintenance. Um, and then really looking at uh our enhanced cost recovery.

Do you I don't It's not changing. I don't know if you want the slides. I can. Let me try. Thank you. Sometimes that works and sometimes it does not. There it goes. Okay. Good.

Okay. Yeah. Okay. So, the um the proposed in-house uh rental registration uh program will be modernized through our rental registration fee increase. uh and that's proposed in uh the implementation of a proactive inspection cycle ensuring that all rental units are inspected and more and uh more frequently inspected when there are deficiencies that are identified. So the bureau is really looking also looking to bring in the mechanical inspection and this is also uh through a third party and we're really looking to really improve service quality coordination across our permitting uh department inspections and enforcement uh while also capturing revenue that has uh previously been uh or currently being outsourced. Slide three. So the Bureau of Building Safe uh standards and safety uh is led uh by our bureau chief Steve Yuker Yukaritz. Um so through the bureau I would say like it's we also have departments under there kind of like our public works. So we have property maintenance which is our code enforcement. We have our rental registration and inspection program and then we also have our buildings trade trade. So uh electrical in inspectors uh plumbing inspectors. So really kind of jumping into the background of our our study session here. We're really uh looking uh our focus is going to be on the rental program transition and fee modernization. And so the city uh and and the reason why we're kind of moving towards this is that we've received consistent uh feedback from our stakeholders. And so property owners, tenants, and um our staff uh and inspectors have provided continuous feedback on how we can improve this process. And the the high the feedback that was highlighted was um inspection consistency uh the responsiveness to complaints right because we don't own some of this process now uh that has uh been limited and then coordination across um our code enforcement efforts

and then the other is is that we don't really are don't have the ability right now to be able to capture some of this data because it lives in multiple places. So, this proposal is really a direct response from that feedback to really improve our accountability, strengthen our h housing quality, and then align uh with our ber neighborhood stabilization goals. As you know, we're going through some of these plans and looking at how we can be able to increase housing. And so, I think this is just part of that broader effort. And so, your role today, we're really looking to understand um feedback uh before we get to a formal action. So some of the rental program um the background of the rental program and then the challenges that uh that we're we're we're currently facing right now. So in uh 2006 uh the city very uh established the rental registration and inspection program and that was really to ensure uh safe and code compliant housing. Um and the city um from that uh from that that that uh program that was initiated in 2006. Uh the city also uh settled a lawsuit back in 2018 uh that provided some additional provisions on how and when inspections are um are being handled uh uh from the apartment association

and council. I I wanted to put that in there so that you're aware of that because I think as we're asking you to do some things we think you know I don't know I don't think anybody was on council then so we didn't know this either and so in doing our research we think it's important that you know that this was an issue back in 2018 and there was some work done. Okay. So looking at the background of the uh the the rental program and how the system is currently uh working today. So rental inspection services are delivered through a local third-party contractor building inspection uh underwriters BIOU. Um and so this it's always lived there. So we've never had the rental program inhouse. This has always been a third party uh contract. And so the the the city uh what the city owns in this process is is that there's 13,489 rental units. Um the city owns the licensing and uh the administrative process. So we are the ones that issue the licenses and then send out any type of invoicing is is provided in those administrative functions. And right now uh the BIU inspectors approximately inspect about 7 to nine uh properties uh uh or units per day. So where this this current uh model is falling short. So we're seeing uh it fall short in in these these five categories. So oversight, we have that limited control, which we talked a little bit about. Uh service de uh delivery, we have a little bit, we're limited in our ability to really prioritize complaints because this is a third party process. Uh and then again, back to that data part, right? We understanding where when inspections are being uh failed uh and really being able to use our our property maintenance, our code enforcement to be able to assist in some of these is is where we're we're we're lacking. And then also coordination. So they're dis have been disconnected from the broader enforcement strategy. And then additionally, uh we're unable to really recoup the the full program cost from a financial standpoint too. So currently um the the the current uh

program rental costs are so our annual contract for BIOU is 233 uh,270 uh which was paid out for 20 uh 25. Um this program also funds um two clerks and one rental um inspector which is which are city employees, right? So we have third party through BIOU that are doing the inspections and then we also have two clerks and an inspector uh that that uh that is funded through this program. We have technology costs that are here. There is a vehicle, office supplies, and some communication. So it really breaks down all of the uh the the costs that are associated with our rental program. So the rental revenue. So um for 2025 we brought in 485,465 and that's broken down from revenue and then also um reinspection. So if you failed an inspection there there will be a fee after a second failed inspection. And so there there's how you that that breakdown is what I will say in that rental revenue that 467750 that is not all of everyone paying on time. Some of that is recouped funds from previous years that have been um been received in 2025 as well.

So that's not that's not annualized. That's that's just what that's what was taken in. Correct. Yeah. Is there a way of over we can look into what we can we can also take the number. We know how many rental units there are. I mean, at least the ones that are registered with us, right? And we can multiply that by the number that is current and give you that. That was a question I had. Um, what is the requirement for a landlord to be registered? Um, is it just as long as they are renting to someone or if they live on the property, do they get away with

if they live on the property themselves? It says in the ordinance there to provide proof of that, they're supposed to certify. But if they or I think a family member are living in the property, they don't have to register. Right now too, we'll talk about this. Currently, section 8 properties do not have to register or they do have to register, but they don't have to be inspected. Correct. We would like to change that. In speaking with the housing authority, they told us they don't have a problem with section 8 being inspected. So, and then housing authority properties. So, their public housing units, they are not registered with us or inspected by us. Those are totally done by the housing authority. So, those are the only exceptions. Yeah. And the one for relatives, like if you own the house and your mom lives there, they just ask the return registration just asks you to send in a letter saying my mom lives there. Just affirming that.

And therefore, it's not out for rent. It's like literally I own my mom. So what quantifies the relative nephew's sister-in-law's cousin? I think the ordinance is like basically immediate close family. So it can't be like your second cousin twice removed but I think you know your kids, your stepkids, your wife, uh mom, parents, like that kind of thing. But it's on the it's on the landlord to send us the note to tell us that. See what I'm saying? Yeah. Yeah.

So, looking at some of the trends. So, um the unpaid rental fees are increasing, right? So, 2023 we saw about 54,000 and that has jumped to 75,000. Uh there was a big push back in 2018. So, you can see that some of the uh unpaid fees were up to 300,000. So there was a big push through our rental program to be able to look at some of these unpaid uh rental fees and recoup some of those too. So there has been direct action with that and then also this um additional inspections, unpaid balances are are also rising too. So that reinspection after that second time we're seeing those um increase.

It was interesting for us to do some research um in 2018 council and Mayor Shamber attacked this same issue. They tried to tighten up the program. Many of the same things we're talking about now. at that time it was that there were so many unpaid so they try to tighten up at least the enforcement of the registration but it was interesting to see that was eight years ago and here we are still having the same conversations they they did their best and certainly helped with the registration but they didn't they didn't go the inspection route because we cannot just continue with the same conversation correct so I'm pleased to see that you're presenting this tonight because it's not it's no longer a problem it's crisis.

Are we also able to make sure that if you're getting the license, you don't owe back water and sewage bills because a lot of citizens mention that. Yeah. So, actually, if you remember the garbage collection fee that was implemented that was 14 $1,43 and some one of the revisions to the ordinance that we made, we inserted if the for rental registration purposes, if they are behind on their garbage and water, we added that to the list of things that will disqualify them from a rental license. It's in the ordinance. Yeah. Okay. But it's relatively new.

Yeah. cuz I I remember that there's a long list of landlords and specifically LLC's that owe the city a lot of money and I feel like they get away with it because nobody wants to turn them off or you know, right? So, because it was passed, I think the spring of last year, we it's it's one of those things. So, now those people who have one or twoear licenses, it's going to you start seeing it this year and probably next year see that being enforced, right?

So, what are we proposing? So we are proposing to transition into a fully in-house rental in inspection program service model. So what that would look like is really a centralized intake inspection and then enforcement functions would all live within the city. Uh and that really helps with clear lines of accountability uh and really performance management. Um and so we're also going to hoping to see that it's going to be some improved coordination with our neighborhood and economic uh development priorities too. So what we're proposing as far as staffing and so um right now as I stated that there is two rental clerks and then there's one inspector. We're proposing in addition to those we would be uh adding uh an additional rental clerk uh three rental inspectors, right? And then um one assistant bureau chief uh to be able to manage this this full program. And so rental in inspector responsibilities really look at interior rental uh tenant generated inspections. Um so if a tenant calls and says, "Hey, um my my power's off." And then someone would be able to go in to do inspections. Um rental license compliance inspections. So to make sure you have your license, we would go out and inspect. And then short-term rental inspections and compliance and section 8 units as uh the mayor just added as well. And again that is a new uh part of that uh the rental program.

So there'll be three rental clerks. Is that correct? Yeah, there'll be so in total in totality there would be three rental clerks. There would be four inspectors and then assistant bureau chief that would be man managing uh that right now. We also want to say out loud we have to talk to the union about this as we go further here because currently our code enforcement officers are ASME members. Um, I think there's been some very preliminary conversation with them to let them know what we're thinking about, but I just want to say that out loud that we also need to have a conversation with ASME as we're as we're adding or changing employees and those are just estimated base pay not to include benefits what's before us at

that. So in that in that part, no that those are just the actual base pays of of each kind of letter grade from from there. Gotcha. Yes. So, the proposed inspection strategy is really going to focus on high-risisk units. Um, so we're going to st for standard properties, we're going to be inspecting every two years. High-risk uh properties are going to be inspected annually. Um, and then also new ownership inspection uh prior to the issuance of a license. And uh I'm sorry. No, go ahead. I'm just going to ask a question after.

Um the GIS system that we have, are we going to be putting the information that we acquire? Okay. Yes, we're we're really and we'll talk a little bit about technology, but we're really trying to use that GIS in every department now. So, yes, we we'll get there. It's taken us a minute, but we'll get there. Um, and I'm glad this is just a starting

point for discussion because which I agree with all of it, but I will say that there has to be a component and there are rubrics uh that this is uh enforced equally across the board cuz I'm not sure that that occurs right now. And I'm always going to be upfront with the race problem that we have here. And I don't think that it's just indigenous to other cities. I think it's a real thing here, too. Agree. In our departments, authorities, boards, and commissions. And I think consistency helps when we have a checklist, when we're very clear about what we expect and we go through that. That helps us avoid those kinds of concerns. Um, yes, that's what I'm saying. Wonderful.

So, moving into the enforcement framework. So, when violations are identified during our inspections, uh we're we're recommending uh when a temporary uh for a temporary license and and revocation. So, you would receive a 10 a 10-day warning notice when uh there has been a violation and then uh the property owner receives 30 days to complete those repairs. So, if they fail to comply with that, these are kind of the listed of what we are recommending. So, revocation of your rental license properties uh is posted uninhabitable and if repairs aren't uh completed, a citation will be uh filed with the district judge. And Mr. Horton, I think this helps. Again, this is consistent and clear. And by the way, this is already in the ordinance. This enforcement activity, this timeline is already written in your ordinance. There's no change here. This is just us, and I say this all the time because I've heard Councilman Flores say this. It's just us actually enforcing it. That's what we have to do. It's in the ordinance. We have to go out and do it. So we would revoke the rental license. We could pro the property uninhabitable if the violations are that severe and we could file with the district justice. When we file with the district justice, as the solicitor has advised us, that's now public record. So someone who's renting could find out in the public record if their landlord had violations filed with the district justice. So it does provide that level of transparency as well. Uh again I might add uh because all of the provisions are there uh but the humanity uh isn't always counted in the equation and I don't think I'm one that happens to know that it's not enforced uh you know in an equitable manner and some uh some people are um don't have the disposal that others have.

Yes. Yeah. So, and I think that a rubrics of this is one thing. Uh, but I think that oversight oversight oversight is uh is is why we're here. And we also can work with owners, you know, and I our property maintenance um and our bureau chief has been very clear. If owners are in contact with us to say, "We're working on it. We've achieved this. We're working on that." We can we can give some grace there. But if we're being ignored, if there's nothing happening, then we have to be very clear about

agree. Agreed. But it's and it's imperative that there is a a um a way of mitigating or helping and it's not just u punitive in nature. Uh because we do have a housing crisis and I think all of our we have the the same aim of providing quality uh safe affordable housing for all of our residents. So thank you again. Absolutely.

So, moving into um where we're moving with our property maintenance. So, uh currently our property uh maintenance has eight zones. We are proposing uh reducing the zones from 8 to six and then really focus on exterior enforcement of the properties based on complaints and then ongoing uh presence in the zone. Um standardizing our process for quality of life ticketing and then modernizing tools to ensure efficiency and effect and accountability. And then again, a continued use of that $1,400 uh garbage sewer fee uh for excessive trash and debris. And

and we put this in here just because I think it's important because I think like you, we hear all the time, code enforcement, code enforcement, code enforcement. This is property maintenance. This is exterior. This is if someone calls and complains or as they're out in their zones, they're seeing trash and debris. They're seeing exterior issues. They'll continue to do that work in their zones. And then we're going to beef up the rental inspection which is inside going inside the property and doing the inspections. We just want to be really clear with you. It's all of these things needing to be tightened up.

I did add in here the uh the organizational chart of how what we're proposing. So the highlighted are the uh the people that we are in addition we're going to be adding to the program. So, um, from the rental side, the rental clerk, rental inspector, uh, and and then, uh, you'll see later down in our, uh, presentation, we'll talk about our mechanical inspection inspector, too. So, moving into our proposed rental, uh, registration fee structure. So, currently, uh, rental registration and inspections, um, is a $40 fee. So, um, per unit. Per unit. Per unit. Sorry about that. I just got that bill. yesterday. Oh, did you?

Yeah, they did went out in April. Yes, that's correct. So, so um and then also we're we're we're proposing reduced inspection frequency um through the deficiency free clause. So, currently, uh if you have a property that has had two inspections that had zero deficiencies, you then would move to a 4-year inspection cycle. Um and what we're seeing is that that large of a gap can create some of the blight, some of the issues that we're having. And so keep keeping a consistent inspection schedule for all properties is where we're we're looking to move towards. And so the current fee schedule, if you pay before May 15th, it's 40. It steps up um between May and June. And then after June, there's an $80 per unit um cost.

So right now it's you can have a four-year gap. Correct. We're project we're requ $30, too. So it's like you did well and then that fee structure came down too even if you paid late. So and we're suggesting that you remove that but that's for you to have a conversation about and decide. I mean you can see the benefit. It's it's an incentive for the owners to keep the properties up. They get they can go to a larger a larger timeline between their inspections. The problem is it's very confusing for our rental clerks because it's hard to remember who's on a two-year cycle, who's on a four-year cycle, what you and that can be that can cause things to fall through the cracks. So that's a decision point for all of you at some point.

So our proposed uh rental regist registration inspection fee uh we would be moving from 40 to $55. Uh and then there's a step up uh per unit uh for paying later. And then additionally uh to reduce the uh the amount of reinspections, late cancels, no shows, uh that that uh fee would be stepped up to $150. What we have seen is that sometimes landlords will just not show for those inspections. You know, BIU will schedule it and they won't show and then it just kind of goes into the record as a no-show and nobody goes back and nothing happened. So, when we bring it in house, it would be our intent because we can have better data, you know, collection and tracking that we would say if you don't show, we're going to charge you $150 and we're going to make another appointment. We're going to keep at this until we actually get in there.

These are per unit. Correct. I think that that's uh great too and I think that it speaks to a lot of it is out of town landlords and property maintenance uh uh management businesses. Yeah.

And I think that there has to be a provision because the property manager tends to hide behind, well, it's the landlord and it has to be something enforcable on the property manager because more often than not, it's not that unit just that unit, it's units and a lot of units under that property management, multiple landlords, but your business is property management. uh and it's and you shouldn't be allowed to just shred your shoulders uh and put it off on the landlord. Okay. And and finally and a a a land owner or landlord property manager aside uh should be required uh to come and set eyes on his property. Uh, and I don't know how often or frequently, but you shouldn't just be allowed to just, you know, uh, not come and see your property or physically inspect your property, uh, without a a u in a we can't have you not coming here four, five, 10 years, not knowing what you're what you're renting out to our people. So,

well, you guys will craft the ordinance when that So, you know, I would say to you, you can decide what you want to

We going to be talking to So part of that uh that that inspection uh the proposed inspection fee again it's going to be eliminating the reduced frequency the deficient fee inspections and then also get on that everyone gets on that cycle of every two years and then significant violations are inspected annually. Uh I did want to also show a a pure city analysis because I don't want to just say that we there's we we came up from an arbitrary number right so we're looking at um cities that are similar to ours. Reading, Ellentown, Lancaster, Harrisburg. Uh you can see the differences in how their inspection process is. Some have been tied to lead safe. Some are um have an inspection uh fee as well as a registration fee, but it is uh right in line with uh our peer cities as well. Um, Miss Sterling, do do you happen to are are these all in-house cities of like size or are they are they subcontracting out uh their parts of their program?

I don't know. I I'm I'm we didn't gather that information, but I think that's a good point to to understand fully is whether that's an outsource or is this in-house because if it's in-house, they might be able to provide even further more input. We are going to Allentown um all of a group of us to to meet with those departments in the beginning of May. So that's a great question. We can see how they do it as well. I was excuse me. I I was talking to a tenant um this week and they had to pay for the inspection fee. Wouldn't it go to the landlord instead of the tenant? It should be

It should go to the landlord. Yeah. H did the landlord give them the bill or do you know? Um the way it was explained to me, it was a part of uh the contract that the tenant pays the $40 inspection. Really? Like it's in the lease. You're saying the way it was explained to me. Wow. Yeah. You should send her down here with a copy of her lease just so we could just for Yeah, just so we could further understand for for research purposes, right? For research purposes. Thank you.

And I I do want to say I think we all know this. We really understand that not every landlord in the city of area is a bad landlord. We have good landlords. We have people investing in the city. We want that. We want people to buy properties and take care of them and provide this housing. What we are simply looking to do is consistently enforce and make sure that the ones that aren't doing it right do it right and keep our people safe. We're not targeting anyone. We want to honor the good work. And I think we do that by not by making sure we're enforcing where it's not happening. So, okay. Um, so I wanted to provide a a cost comparison of where we're currently at versus where we're looking to go towards. And so you can see our rental revenue, uh, our BIOU contract was where that 233 is our, um, city of Erie salaries. So these salaries are with benefits, um, incorporated into those as well. Um and then it breaks down into some of these, you know, some of the soft costs that that are associated or overhead costs that are associated. And then with our proposed uh rental revenue, we're looking at from so from that 40 to that 55 that is uh that is looking at it as if everyone paid on time. So that that that's just giving a a a current baseline. Um our salaries and then again those same same costs there. I will say that um so management salaries are not incorporated into this um into this estimate um and then also some of these costs are also uncovered into

what does that mean management salaries what managers correct right and that and that's a budgeted position that we'll have anyway so that wouldn't be fac factored into this specifically it would just be factored into our budget and you're in the position that you currently but when we're trying to allocate costs here's why this is important. This program has to be revenue neutral.

We have to show that we're not making money on this. Okay. So, what we're trying what we're saying right now is if you look at these numbers as they exist, it looks like we're making $114,000 a year on this program. But when we go back and dig a little further, we can allocate a portion of Katherine's salary, for example, to this program. She's spending a lot of time overseeing this program. So we think there's just more costs we can allocate so that we can get to that revenue neutral number.

Well, I was going down that path cuz you know in her current position uh assuredly her scope of work would would uh and so that speaks directly to scope of work. And so I just want to be real clear when I see management salaries not included uh is that a new position or and so pardon my ignorance for asking. Uh but also and I want my colleagues to know that the uh software isn't cheap, technology isn't cheap. It's necessary and and a lot of these steps in my opinion are necessary because it speaks directly to oversight. And I don't think we have oversight that we should have currently

and we have more work to do on this. Again, we can't we can't show $114,000 profit. So we we need to go back and we need to make sure and find out what other costs. this was just a these are the big ones. We'll go back and if it ends up that you know no it's not revenue neutral then we'll say okay we need to bring that rental fee back down because we can't be overcharging but you will see what Catherine didn't say is we're losing money right now. Right now we're we're in the red 132,000 how we're doing it right now. We can't continue that for sure.

Not and certainly most assurely not for the quality of project uh product that that we're getting. Correct. Yeah. I I agree. I was on council in 2018, so I um remember that. And the problem is is we uh do have to make sure that people pay on time. And uh I know the girls are have uh since they've been um in charge of that department have been working really hard with that. Much better. Yes. Yes.

So some key takeaways. Um so right now the rental registration program brought in about uh $485,000 uh dollars. Um existing revenue does not support the program operations. Uh and if we're once we get to a place if if you guys approve to uh to transition from BIOU, we're really looking at improving service quality efficiency uh within our our staff and then improving uh some of these outcomes um that would really allow us to have that in a full in-house uh model.

And I can just talk through that. So this is just if you know as we see it. So I do want to say we are meeting with the apartment association. We're going to do the same presentation with them. I'm I'm going to their meeting in May. So, we're going to be presenting this all to them so that they have an opportunity to to hear it from us and and provide feedback. So, we'll do that. We'll ask you for some feedback over the next month. Hopefully, if if that feels comfortable for you, you know, if if you're moving in this direction with us, hopefully we can get some ordinance changes proposed in June. We do need to give BIU 90 days notice to terminate their contract. So as soon as you give us the go- ahead, we would terminate with BIOU and then we'll, you know, probably spend the summer months or whenever, you know, you're ready developing the processes and then if we could, if we keep on that timeline, we could have this all in house by September.

Uh, someone from council going to be attending uh or one of the road trip. I would with you because I I think that it would be beneficial to the landlord association or to Allentown? To Allentown. Yeah. I I volunteer you for the land owners. So I that's what I was like I will take all of you. I don't want that smoke, man. I would Yeah, we can absolutely talk and and and but I would be happy. We can send you the information. Absolutely. If you'd like to join us. Great. Great. So our proposed uh uh rooming house fee modernization.

So that's the end of rental. Now we're moving to the next thing. Okay. The next thing before we move on, I think so I think There's some creativity around here too uh with the possibility of of what we could do um to what councelor Horton had also mentioned uh with with the equity around being able to invest in some of these properties and then holding landlords accountable so that we're not we're not labeling places uninhabitable because that's going to put us in another crisis. I I can quickly see where this goes in a really great effort putting a lot of people out on the streets very quickly. Um but with some of this funding as you're kind of looking at this um and then as we're talking with some of the MDJs and as we're developing this ordinance thinking about ways that we could create a fund um that could that could maybe fix some of these things and people

and I want to remind you you just looked at CDBG dollars. You know we got our allocation today. Um, I think where we are right now with that works, but next year when when that comes around again, you could really ask us to say, "Nope, we want you to create a rehabilitation fund with a lot of those dollars. I mean, we we could do that and that was would be something we could discuss with you." So, the dollars are there. It's just how we decide to spend them. Uh, the dollars used to be spent in such fashion when I was when I was a kid. Uh and then been um here lately we're paying for road repairs, things of that nature. Agreed. And so the the matrix has to change.

It's unsustainable. And I think us as fiduciary uh com electeds like being being in that that component it we have looking at these numbers we are doing a genuine disservice by keeping this outsourced. Um, and I think that we are we are not living up to what all of us ran ran on. And I know I mean just um just some of the platforms and which you ran on to admin um mayor is is this is 132,000. I I I totally agree. I mean this has been one of my anything anytime anything is outsourced you lose a lot. You lose you not only lose control, you lose money and the quality of service,

right? Quality of service, quality of life, doesn't matter what it is, whether it's rental or other things that have been outsourced through the years. Um, and I think this is wonderful. Um, I was looking at the two vehicles that are will be needed. Is there any way I mean maybe you can look into it. um your grant department might be able to work in of course looking Yes. you know because I know we're passing next week there's vehicles Yep. And LSA the state funds have been used for vehicles in the past and they just gave us some code enforcement vehicles. So yes, we could absolutely look at that. Yes. Yes.

Um and I do want to say to your point, Dr. Titus, a lot of us did run on this. I think we all know this is important. This is like the lowhanging fruit as far as I'm concerned. Like this is like step one, tightening up the rental issue. then we can move on to home ownership conversations and then you know then we can move on to larger developments. But this is like the lowhanging fruit. Let's just get this done. I just see the faces and hear the voices especially from the last public meeting uh hearing that we had. I can't unhear and I can't unsee. And it the fact that they had to come down here and bear themselves so so publicly. Um I think that this this just shows that again I know this is the first step but that that we're listening and we're taking action. So, I appreciate

this is uh in a sense uh lowhanging fruit, but it's probably the most important piece of what we'll do because I'm coming from a human services

uh uh body uh and quality of life matters and not just in the cute rhetorical uh sayings or things. It actually matters in terms of life expectancy. Uh and so we we it's morally imperative uh that we do this without delay. And I will say this and I I try not to speak uh too much more going through the session to allow for my colleagues to interact, but council we this is great, but we have a responsibility some stuff that we need to do too. And I'm glad that we're growing all growing in the same direction. Uh but it can't just be a document presented in front of us and everybody without discussion say yay. Uh cuz I'm hoping we all continue that way. But no one should be able you no one should vote on something that they don't understand. And and uh this can get really really tricky really really fast. to your point about uh being putting people on the streets. Uh and it all it all has to work together. I'm glad this is a first step, but it's a very very important step and it's not one to be taken lightly.

I also did look um on Allentown's program. Interestingly, they require the license to be displayed in the unit. That's in their ordinance. Um, they also require that the they call it the tenant landlord obligations. Sounds very much to our tenant bill of rights be uh displayed in every unit. So again, there's a couple more things as you reconsider an ordinance that you might want to consider. I can send you some of the information about what they do. And you'll have to build in an educational marketing component for this too because we our term is our our intent is to educate uh the the landlord too. It's not to be punitive. Uh but it is to pull you up and hold you accountable. And there has to be there has to be some grace. I I don't want to say grace in there cuz they've been given certainly enough grace. If anyone needs grace, it's the residents living in uninhabitable uh dwellings currently. Uh but they they're they have to be brought up really really quickly because we're going to be expecting to hold them to the standard really really quickly.

Okay. All right. So we'll move on then. Is that okay? From rental to rooming house hotel. I had to clarify for this for myself. So go ahead.

Awesome. So uh background on the rooming house. Uh so how the system really works today is that uh there's an annual license required for all rooming houses. uh and they're sub subject to regular inspections uh property maintenance standards and then also life safety requirements as well. And so this must meet additional operational standards including occupancy uh limits, minute uh minimum space requirements and then uh maintenance of shared or common areas as well. So right now what we're proposing is that uh the uh the ones that are in the black right the 1 through 4 150 plus are already established uh uh fees. the 25 through 49 rooms uh we're looking to establish at $300. So we're looking to update the rooming housing rooming house license uh to reflect the current conditions. So establishing a new category that 25 to 49 uh and then also implement uh a late fee of two times uh the license cost which is very similar to uh how we're doing the rental program too.

And again this is for any hotel so they this is the fee that they they would pay annually correct annual fee. Yep. Can you explain the just so I fully understand that tiering how it goes from the the 10 to 24 the 20 because it looks like it jumps from 250 to 300 but then goes back down to 200 to 2 to 4 increases. So if you look what we're saying is one to four rooms is going to go to $100. Then you have 200 250 300. Yeah we weren't we in the red we didn't have one before. So you don't you didn't have a comparable. Thank you. I was like is that how are you okay I see where I see what my brain just did there but thank you. Yeah. Okay. So that's that's it on rooming houses. Any questions on that? Okay.

All right. So looking at our quality of life fee modernization. Again, background from that um this was established to really address uh persistent neighborhood concerns uh related to our property maintenance and safety and then also nuisance conditions that were affecting our our residents. And so it's in response to um the ordinance was really in in response to respond to blight violations and public safety issues and then improve neighborhood viability and and hold property owners accountable for ongoing maintenance and um and compliance issues. So where we're looking to move uh the quality of life penalty increase. So quality life number 25 which is working without a permit and then quality life number 26 is working without a license. So this is cond

I I know I lied. No, just go back to quality of life where it says uh under bullet point 123 which says hold property owners accountable for ongoing maintenance and compliance. I think there council that's an opportunity for us to embed language to include property managers. Uh also uh because that's the back and forth right there. Well, okay. Well, my I'll send the letter to the owner. They don't respond. But uh and I don't think I would do Freda justice if we don't say that we should add businesses as uh you know to be included like

they are included but we're saying property owners not just residential but I I hear you and agree with you cuz she's very she's totally passionate about the fact that the businesses don't get held to the same standard standard of accountability say I would say legally that businesses are people under the constitution of Psylvania. vain in the US. So hence they would be responsible for their property that's in their name. But you're right, we I think her point is often that we don't enforce correctly and we are working on it. But yes, agree heard.

So really what Katherine is proposing here is just a increase in the number 25 and 26. So right now if you read your quality of life ordinance, there's all kinds of things in there. Each one is a different fee. Usually they're around $100. We are suggesting that we increase just the ones about working without a permit and working without a license. This is a big jump from $100 to a thousand. And the reason we're suggesting that to you is we're having a lot of issues with work going on in the city of Ari without permits and without licensed professionals. And so this is this is a reaction to a real issue that we're seeing. Now, I want to say out loud, I don't think we do a terribly good job of informing the public of our process for how to secure a permit and how to secure a license. So, you you'll see I put on the bottom there that we would delay enforcement of this until our permit and license processes are reviewed, revamped, and clearly communicated on our website. We don't want to penalize people without telling them the rules. So, we want to do that. But then once we tell them the rules, what we want is your support to say if they break those specific rules, it's a larger fine.

I would request that we also like around as we're updating these that we also are linking like where and zoning they can also because that's something that I'm talking with a lot of those young especially the brand new business owners uh they they they went through the permitting process and only to realize

it doesn't fit but they were granted every permit you know I mean so the two systems are not working together. We completely agree and we've tried to say over and over that you should start any project through zoning, but we haven't said it enough. You know, people need a lot of time. We we completely agree that this is on us. It is we are not being clear right now. We need to be clearer. But again, once we're clear, we just want you to be aware that we're going to ask you to increase significantly increase this because it's a danger when people are out there working without permits and without licenses is putting our residents at risk. Yeah.

And there's a lot of uh businesses that I've spoke with, not a lot, but a few that I've spoke with over the years that they won't do work within the city anymore because it's such a hassle to get a permit to do any work in the city. And yeah,

and this is where modernization comes in. Like we need to go to a fully online system. And I really cannot tell council how much work, not me, but for certainly Lori on my staff is putting into this to find a software that works to make this all modernized and online. That's where it needs to go. We're going to get there and be clear, but you're you're right. It's right now we we need to do better ourselves. And the biggest and largest piece of it is we don't uh we can't hold anybody else accountable unless we hold our our contractors accountable or and right now under the current system that's not we don't have any accountability. We don't have any data to your point and software is going to be costly but it's essential uh and so just look at look at those costs. I wanted to uh add uh here also that uh the the uh quality of life um provisions in the in the um what is it landlord tenant uh document or whatever. We'll have to go back and see where all of that stuff inter any in intersectionality. Uh what I was searching for I lost my train of thought was the process. there has to be a checklist uh in a in the education process for even the smaller developers cuz that's one of the that's pretty much the issue I I want to discuss with you afterwards is people don't understand the process from the large developer or the big developer and we should have a rubrics or a checklist uh that says or that people if you embark upon this this is how this goes and this is the timeline of it all we should hold them to it and it is a education component uh to that, not just to the landlord association, but to those new and enterprising developers.

Absolutely. And and you know, again, we wanted to bring you all of these at once, but we understand some of them you won't act on until we have that's okay with us, but we just want you to be aware of the direction we're going. We have work to do in this area for sure. Okay. Right. Mechanical.

Yeah. So the mechanical and inspection and uh inspector transition. So currently our um our commercial mechanical inspection services are also delivered through BIOU. So the city currently oversees the issuance of the permits um and residential mechanical inspections as well. So you can see that disjointed where residential inspections are done within the city whereas it is uh commercial is done uh through BIOU. Um and then all the licensing and administrative functions also live within the city as well. Uh what we're proposing is bringing BIOU um the commercial mechanical inspection services inhouse which really provides a a better um opportunity for us to have better service quality stronger enforcement and then again that that cost recovery uh right now. So, uh, if you can see the little chart in the bottom, so the in 2025 we had 356 issued, uh, permits for commercial, which brought in at about 41,000, uh, almost $42,000. And then from the residential side, there was about 77, um, issued permits, uh, and about 27,000. Uh, additionally, what we're we're we're we're seeing is that because it is in-house and this is also in addition to uh what our inspectors are doing is that we believe that the residential uh there's there's opportunity for growth there just because of that disjointed uhness right there. So, and it goes back to what we just talked about. It's confusing for people why you have to go to BIU for one of these, but everything else is within the city. That's why just this is the last bit. We just want to bring it in house so we have all of these trades inspectors in house doing the work. So um what we're proposing is one uh mechanical inspector uh we would look at the salary range is is is around 72 between 72 and 75,000. Uh so that revenue that was brought in was about 69,000 and then our cost that we paid to BIOU for 2025 was about 30,389.

So there is a difference in this uh and and what that cost looks like. But again, once we have that full complement, we believe we're going to see um this increase because one, there's going to be someone there that's enforcing uh these uh inspections and permits as well. So, um will that lend itself to that 114,000 in the black that we are? Is that a separate account?

That would be second that that would be for the rental program and this would just be separate. The other the other issue we have, just so you're all aware, you know, our we have our building inspector, electrical, plumbing, and then, you know, want to move with the mechanical. What we hear from our our trades inspectors is they're the only ones of their kind. So, for example, Sam Santana is our electrical inspector. When Sam is out, I mean, if he misses a day of work, there's a huge backlog now for him. He was telling me he went to Disney with his family and he basically was up at 5:00 a.m. every day trying to get through this because when he's out, there's no backup. BIU provides some backup for us in some of these areas, but the the more we take from them, I think the less likely that's going to happen. So, we've also talked to Steve about maybe finding someone who had a couple of these specialties so they could provide some backup to one another, having them kind of crosscertified would also be helpful, but at least as a start to get the mechanical in, and then hopefully try to get them to be able to back each other up because right now it's very difficult for each of these inspectors because they're the only one of their kind. Great. All right. So, um I did want to uh just bring out uh what is changing and what's going to be uh staying the same and what those ordinance impacts look like. So, rental licensing requirement is still going to stay the same uh going to be the same. And then the buy inspection structure is still going to be there. So, we're still going to maintain the 2-year inspection cycle. It's just removing some of those other um deficiencyfree uh clauses. So, what uh what could change? So, um the city's going to assume assume the inspection um for the rental for rental units. Uh we're going to be updating our enforcement framework and then the also the updated fee structures for our rental inspection or quality of life in our rooming houses. We talked about implementation. So, at some point we'll need council to act with ordinance on the fee schedule changes. We talked about the amendments of the ordinance. we mentioned off, you know, give us the okay to go ahead with some of the

staffing and then give us the okay to terminate the contract from from BIOU. So, that was a lot. We got through it all. Um, have some time for questions if you'd like. I just want to thank you for sitting with us through this. I know it's a lot of information, but there's a lot that needs to be done. I want to thank Miss Eastern and you'll start with the administration, but Katherine, I want to thank you because I know the work uh that you had to put into this up to this point and I know it's just a tip of the iceberg and I don't ever want uh want you to feel unappreciated cuz I know what we're about to embark upon. Uh and it's not it's not a small thing. It's a necessary thing. Uh and I think it speaks well. It bodess well uh for all the citizens um in Erie whether you're a landlord uh or a renter or a homeowner because everybody wants the same thing in life and that's you know good quality life. Uh area does hasn't always provided uh that uh in an equitable fashion or manner. Uh I know that there will be uh uh cries out from this part of the city or that part of the city about uh level of enforcement or equality of enforcement. I know that the racial equity part of it is going to be I know the economic development part of it. But most of all, thank you for for instruct, you know, inserting or suggesting these fee increases and citizens. Oh, it's another fee. It's another fee. It's another fee. But this isn't one being passed on through a tax or levied on anyone. This is something you shouldn't be allowed to just take take take from the city. In a lot of the instances, the landlords uh and and I'll come to the landlord meeting and say that to them, too. I was just being facitious, but I'm not scared of them either. Uh we need to hold them to a

higher standard. And they've they've fell short in the same manner that we have fell short. Uh, so everybody just needs to own up on it and see what we can do to fix it. But I know that pushing this to this point, to this document, I can just imagine the work you and your team put into this. Um, I just want to say one quick thing. These are not taxes. These are fees. Huh? These are fees, not tax. Oh, that's what I said. I just want to make sure it's clear with everyone watching that as well.

Yeah. And I I do want to say thank you for saying that, Councilman Horton. I want to thank Katherine and her team. This was something we talked about I think like the first week and when we were in office and it's taken this long because it's such an enormous amount of work and so she and Steve and the whole team really want to thank her. This is this is the fruit of all of that. It's been months but I think it's been worth it.

I've been here a couple months. I spoken to my colleagues. I know Jasmine what what's your she's really passionate about this. I spoke to Marilyn and who walk on treadmill. She's really passionate about this and I know that Kathy is as well. I'm sure my other colleagues are too and and um and we have the means to do it now. Is do you have the political will? Uh and there will always be naysayers, but this this has to happen. So, um, as someone who participated in an administration who, you know, we didn't quite enforce and go the route that I felt as though would have benefited home, um, well, city residents who are renters. Um, I remember when my inspector came through and all he checked was if the fire alarm had batteries and I thought that that was interested. He was in and out in under 10 minutes. Um, so I'm happy that we're going a different route. I'm appreciative of the um presentation your team put together, Miss Katherine, and I'm looking forward to the enforcement aspect. As you know, I sat through a lot of meetings with you and your team and I said I want enforcement and I'm sorry that after four years of being on council and not seeing that I'm for that because I feel as though if you let them get away with an inch, they take a mile. And I don't know if there's an opportunity to insert a escrow program here or a place to hold people's money in escrow, but we tell people they can do that. They don't really have, you know, it's just writing on a piece of paper as far as I'm concerned. Where do they put their money in escrow if we don't have

There was a discussion about doing that with the county. What? We talked about that. Remember that something about if we wanted to do that, we could work with the county. We'll get back to you. We did talk about you're saying where to put their rent if they're withholding it for violations, right? Because right now there's and that and that is and that's the type of intersectionality in the in the part in the cooperation I was suggesting that's needed between all three taxing bodies cuz somewhere near the school district has a role too.

There is part of the rules of civil procedure. If they have sued at the district judge level, they can pay the rent to the prothonetary's office and as that moves through the court system, the proonetary then can release some of that to the landlord, but not the whole part of it. So, there is something like that in the court system already. I don't think it's exactly what you guys are saying, but there is something if you're in the litigation process. For someone who's not in the litigation process, that wouldn't apply. Residents wouldn't know that. That's all that's all rent speak. That's all landlord speak. That's all lawyers speak to. And I don't know if it if we'd be able to tap in because we already have a fire escrow. Yep.

Where if you have a fire at your house and till everything's solved, we hold the money here from the insurance company in escrow and then when everything's settled, um, you know, the owner gets the money from. So maybe we could do it something like that.

But we don't necessarily have to, uh, to recreate the wheel or anything. If there's a process, similar process, I think it's just conversations to be had because it speaks directly. Okay, we're zoning and we're we do what we do municipalitywise, but but there are human services and it directly impacts people and they have a direct role to pay to play in this. And I think that uh with the administration there now and the council uh as composed now, you will probably find a willing partner. And so this is really all quite timely and necessary.

And I will say to your point, tenant education, landlord education also has to come. So again, when we think about what's next, what's next, we we can't lose sight of that. We do need to do they both both deserve education on again on our processes and how things work. And that's kind of the next step that I think we all have to work.

And I think another component that as we update some of these ordinances to and I know some of these conversations have have because I've been part of some of them have already started. uh but our district district judges as we change this making sure that they're part of because they are a critical component of this entire process and bringing them in from the beginning I think would be really helpful. Um, one of the things that I would also love to see and I know that this is a lift for the administration, but as the the the landlords are and I think that this gives this is kudos for them as well too, but as they impass like their inspections that there be a registration where yes,

they can show like when they're going to show the department look like we've passed, we're on, you know, here's our here's our get to a place where we have a database online that shows everybody that's in our system that's passed. We're not going to be punitive. We wouldn't show the ones that haven't, but you could check to see if yours has. We'll get there. Again, we ask council for some patience and we'll probably ask you for some money software at some point as well. But yeah,

I would say that such a list is like so the the landlords rent their property out. It's part of a business. So to be might be a selling point to say, look, I'm current on my everything and I've passed all the inspections. That's a business selling point. So it's a win-win for everybody. Do the property maintenance um manager or people who are employed by us and they can report to their supervisor as to is that all documented what um we're getting we're getting there too. I mean I think what we're finding with our property maintenance each of them does it a little differently and that's okay. Some of them have relationships with residents and they're talking with them often and they're trying to get them in compliance. So we're we're having conversations with them about but we do need to get to a place where everything's documented and I think giving them a tool to do that and having that right now it's it's not completely consistent. Let me say it that way. And I think we need to we need to get there but working with them so they can use their system but just document what they're doing.

Yeah. I know on uh my first year on council, we invested quite a big amount of money into the GIS system and we got tablets and we got a lot of the software started. But then as the years progressed, um we figured out that some people do things by paper, some people do things where they're writing in a journal and it's not a consistent process. So maybe we need to, you know, get a process together and a minimal requirement on what we expect. And I think one of in that too is just like um we just we we didn't go in depth because I think it's still being fleshed out as is the administration's also looking at reszoning some of these too so that maybe that those are a little bit more equitable and that um

new zones for for property maint and we can bring that to you when it's completed. So, I guess leaving here today, action steps, you know, if if you're if you like what you heard, if you think these are the right things, we'll ask you to, you know, discuss and then hopefully, you know, if you need our assistance, we can help with the ordinances or whatever. But obviously, these are your you'll need now to enact the things that you want. So, we'll ask you

I'll request our clerks also help pull some of these ordinances from the comparable cities so that we can also have some language that we can be pulling from as well. I I think um be my school background being in the force in in the enforcement of the school the more systems you put in place the more like fish are coming. So right now we don't have that many fish coming right but when you put these system in place so the people that are handling this you have to be make sure that they can handle it they're ready. Yeah. You know what I'm saying? So like you can enforce it but now you were telling you weren't really catching kids with hoods on. Now you got 10,000 of them. Can the people that have to handle it, are they, you know, that's something that

it's a great point. It's a great point and I will say, you know, we came to you with what we think is the minimum number of inspectors and clerks. That's not to say that once we get this going, we wouldn't come back to you and say, you know what, you're right. We need somebody else. I just want to reserve the right to come back to you. We think we can handle it with what we have, what we've proposed. But it's a great start. Well, you started by educating me. I have to learn the verbiage, the proper verbiage, and quit saying code enforcement and say property management and or mechanical in mechanical building inspector, rental inspector, property maintenance, property m Yeah. So bear with me. No, it's everyone. I think it's imperative that we all start using that verbiage because that's part of the education process.

Thank you. Thank you. Thank you all for the work that you have done here. Great. Thank you. Appreciate it. Thanks everyone. That didn't take long. No, that was

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