CITY COMMISSION AGENDA ITEM

Department:	Planning & Development Services		Commission Meeting Date:  February 5, 2019
Staff Contact:	Brian Jimenez, Code Enforcement Manager
Recommendations/Options/Action Requested:
Adopt Resolution No. 7278, setting a public hearing date of March 19, 2019, pursuant to K.S.A 12-1750 et. seq., to consider ordering the fire damaged house structure (house) at 1116 New Jersey Street to be repaired or demolished by a specified date.
Executive Summary:		The one-story, yellow house is owned by Donald (Donnie) L. Mellenbruch Jr. and was owner occupied until June 3, 2018, at which time a significant fire occurred within an unfinished portion of the attic that rendered the house uninhabitable. On August 28, 2018, Keith Renz with Farm Bureau Services, submitted a check in the amount of $27,037.00 to the City’s Finance Department to comply with K.S.A. 40-3901 and Chapter 8, Article 3 of the City of Lawrence Code (Insurance Proceeds Fund) which requires fifteen percent of a covered claim to be submitted to the City when the final settlement exceeds seventy-five percent of the face value of the policy to ensure the damaged structure is either repaired or demolished.  The claim paid out by Farm Bureau was in the amount of $180,246.51. In mid-September, staff spoke to Renee Mellenbruch, the daughter and the power of attorney for Mr. Mellenbruch.  At that time, she was actively working on hiring a licensed contractor which she identified as Firesign Renovation LLC.  Staff visited the property and observed the interior of the structure to be gutted to the wood framing.  The roof was substantially compromised where the fire originated as most of the roof was covered by blue tarps. On October 10, 2018, a building permit application was submitted by Matthew Wilson of Firesign Renovation LLC with a project valuation of $171,300.33.    On October 26, 2018, the building permit was approved. Shortly thereafter, in early November, staff spoke with Mr. Wilson who advised he was ready to begin work as he had received the initial payment for the first phase of the project. On November 20, 2018, Mr. Mellenbruch initiated a temporary power service inspection at the property that was not approved as work had not been performed to establish the temporary power service. In early December, staff learned from Ms. Mellenbruch and confirmed by Mr. Mellenbruch that Firesign Renovation LLC had yet to begin work and could not be reached to determine why work had yet to commence.   Ms. Mellenbruch also advised that she was no longer the power of attorney for her father and would have no further involvement in regard to the house being rehabilitated. In an attempt to determine why construction had yet to commence, staff reached out to Mr. Wilson by phone and email but did not receive a response.  In early December, staff received two complaints from nearby neighbors advising staff of their concerns that construction had yet to begin which was creating a negative impact to the neighborhood due to the blighting influence that the fire damaged house presented.  Subsequently, staff visited the property weekly throughout the end of the year and into mid-January to determine if there were any improvements to the house.  Unfortunately, staff verified work had yet to begin as the roof remained open as the blue tarps continued to cover a substantial portion of the roof.  In addition, staff verified the interior of the house remained in the same condition as observed in September. On January 16, 2019, staff spoke to Mr. Mellenbruch and verified he was still unsuccessful in contacting Mr. Wilson. He advised he would like for the project to begin but he was in the process of finding another licensed contractor to hire.  Staff expressed their apprehension to Mr. Mellenbruch that the house would remain in its current condition without any improvements being made for the foreseeable future.  Due to this concern and staff receiving neighbor complaints, staff informed him the matter would be set for a public hearing in March, at which time a resolution would be presented to the City Commission for consideration, and if adopted, would declare the house as an unsafe or dangerous structure and would order the house to be repaired or demolished by a specified date. On January 24, 2019, staff re-visited the property to take pictures of the house to demonstrate the current conditions observed by neighbors. Staff is in agreement with the complainants that the state of the house is and will continue to be harmful to the neighborhood if left in its current condition.  Staff verified that the damaged roof is allowing precipitation to enter the structure as the framing and floor were wet. Due to the circumstances as described above, Resolution No. 7278 is presented for adoption to set a public hearing date of March 19, 2019, at which time any person having any interest in the property may appear and show cause why the house should not be condemned and ordered repaired or demolished as an unsafe or dangerous structure within a specific time period.
Strategic Plan Critical Success Factor		Safe, Healthy and Welcoming Neighborhoods
Fiscal Impact (Amount/Source):		If the City demolishes the structure, the insurance proceeds as identified above will be applied with any remaining funds to be released to Mr. Mellenbruch.  Should the demolition expenses incurred by the City exceed the insurance proceeds, a lien will be published as authorized by K.S.A 12-1756 in the amount equal to such expenses incurred by the city to demolish the damaged structure.
Attachments:		Resolution No. 7278 Pictures taken on January 24, 2019

Reviewed By: (for CMO use only)

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