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