COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 050665

Amending Chapter 56, Code of Ordinances, by repealing Sections 56-541, 56-542 and 56-543, and enacting in lieu thereof, new sections of like subject matter regarding fees to recover costs associated with processing dangerous buildings cases and estimating revenue and increasing appropriations.

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. That Chapter 56, Code of Ordinances of the City of Kansas City, Missouri, is hereby amended by repealing Sections 56-541, Recovery of costs, 56-541, Administrative fee, and 56-543, Dangerous buildings resulting from insured casualty, and enacting in lieu thereof new sections of like number and subject matter, to read as follows:

Sec. 56-541. Recovery of costs.

(a) The costs incurred by the city in administering the provisions of this article and costs incurred in vacating, closing and securing, repairing or demolishing a dangerous building, shall be certified by the director of neighborhood and community services to the director of finance as a special assessment represented by a special tax bill against the real property affected.

(b) No special tax bill shall be issued if the building or structure is demolished, secured or repaired by a contractor pursuant to an order issued by the city and such contractor files a mechanic's lien against the property where the dangerous building is located. The contractor may enforce this lien as provided in RSMo 429.010 to 429.360.

(c) No special tax bill shall be issued when federal funds are being used which are subject to a prohibition of recovery by a special assessment process. The proof of such exception shall be the burden of any person asserting it.

(d) The special tax bill from the date of its issuance shall be deemed a personal debt against the owner and shall also be a lien on the property until paid. The tax bill shall be payable within sixty (60) days after the date of issuance without interest, and thereafter with interest from the date of its issue until paid at either the minimum rate of nine (9) percent per annum or the rate payable on ten-year United States treasury notes as established at the last auction before the particular assessment is certified to the director of finance plus two (2) percent, whichever is greater. The city may initiate actions to collect against the owner if payment in full is not received within sixty (60) days. The lien may be enforced by any method appropriate for the enforcement of special assessments generally.

(e) The special tax bill may be paid in installments over a period of not more than ten (10) years. When payments are current, the interest rate for installments on tax bills shall be either the minimum rate of nine (9) percent per annum or the rate payable on ten-year United States treasury notes as established at the last auction before the particular assessment is certified to the director of finance plus two (2) percent, whichever is greater. When payments are not current, the interest rate shall be two (2) percent higher. Should any such installment become delinquent, the whole unpaid amount shall become due.

Sec. 56-542. Administrative fee.

The charge for administering the provisions of this article shall include the actual cost of repair, demolition, water service cut, sewer capping, boarding and all other necessary security measures, and a charge for the administrative costs associated with processing the dangerous building case. The director of neighborhood and community services will calculate the administrative costs on an annual basis and set the fee accordingly, but the fee shall not be higher than $1,500.00.

Sec. 56-543. Dangerous buildings resulting from insured casualty.

(a) If there are proceeds of any insurance policy based upon a covered claim payment made for damage or loss to a building or other structure caused by or arising out of any fire, explosion or other casualty loss, and if the covered claim payment for such damage or loss exceeds 50 percent of the face value of the policy on such building or other structure, then the insurance carrier for such building or structure shall pay 25 percent of such insurance claim proceeds to the Kansas City treasurer, who shall hold such money in an interest bearing account. If a bill or special tax assessment is issued by the city for the expenses of administering the provisions of this article and expenses of demolition, repair, cleaning debris and rubbish, and/or closing of such building or as a dangerous building pursuant to this article, such shall be paid from the moneys held by the city treasurer, and if there is any excess, such shall be paid by the city treasurer to the insured.

(b) If within 30 days of the receipt of such insurance moneys the city has not instituted legal proceedings by issuance of the order provided for at section 56-535 or by taking emergency measures as provided for at section 56-540, then the city treasurer shall release such proceeds and any interest which has accrued on such proceeds to the insured.

(c) If such building or structure is repaired or demolished pursuant to this article as attested to by the director of neighborhood and community services without cost to the city, then any insurance proceeds paid to the city treasurer and any interest thereon shall be paid to the insured.

(d) When the city takes bids from independent contractors for demolition of a building, bidders shall deduct any salvage value materials the building or structure may have from the cost of demolition in arriving in their bid amount. Should city employees do the demolition, the actual cash value of salvaged materials shall be deducted from the special tax bill for such demolition. In no case will the net cost of demolition be increased in order to effect salvage of materials.

(e) Upon presentation of satisfactory proof that the insured has removed or will remove debris and repair, rebuild or otherwise make the insured premises safe and secure, the director of neighborhood and community services shall issue a certificate within 30 days after receipt of such satisfactory proof to permit covered claim payment to the insured without deduction payable to the city treasurer as herein provided in this section. It shall be the obligation of the insured or other person making claim to provide the insurance company with such certificate.

Section 2. That the revenue in the following account of the General Fund is
hereby estimated in the following amount:

06-1000-570000-465350 Dangerous Buildings Administrative Fee $150,000.00

Section 3. That the appropriation in the following account of the General
Fund is hereby increased by the following amount:

06-1000-572340-A Dangerous Buildings $150,000.00

_____________________________________________

I hereby certify that there is a balance, otherwise unencumbered, to the credit of the appropriation to which the foregoing expenditure is to be charged, and a cash balance, otherwise unencumbered, in the treasury, to the credit of the fund from which payment is to be made, each sufficient to meet the obligation hereby incurred.

___________________________________

Wanda Gunter

Acting Director of Finance

Approved as to form and legality:

___________________________________

Abby Pennell

Assistant City Attorney