The Benld City Council voted unanimously Monday night to adopt an ordinance governing the operation of short-term rentals, popularly known as Airbnbs, within the city limits, accepted the city’s annual audit, and again tabled making final payment on a recently completed water tower painting project.

Council members spent several minutes of discussion hammering out details of the Airbnb ordinance, before approving a final version. City Attorney Rick Verticchio said had prepared a draft ordinance but needed the council to reach a final decision on several details. Reacting to news reports regarding Airbnb issues in St. Louis, some aldermen had suggested a licensing fee of as much as $1,000 annually to discourage the practice of short-term rentals. If the council did not intend to limit licensing by making it cost-prohibitive, Verticchio said, a decision would be needed regarding the city’s intent.

“I don’t know what the goal is,” Verticchio said.

“It’s mainly to get a handle on it so we know where they are,” Ald. Dustin Fletcher said.

Ald. Jerry Saracco suggested requiring a minimum of a two-night stay.

The ordinance was approved on a motion by Ald. Fletcher, seconded by John Balzraine.

Provisions of the new ordinance include:

• A mandatory $100 annual license for each person operating one or more Airbnbs.
• An initial housing inspection at a cost of $75, plus an annual $50 inspection thereafter for each property offered for short-term rental.
• Units must be rented a minimum of two nights with a maximum of 14 nights to be considered short-term rentals.
• A hospitality tax of four percent or $25 per night, whichever is less.
• A minimum of $500,000 in liability insurance with the city named as secondary insured.

Fletcher commented that short-term rentals are becoming a more prevalent practice, particularly for former residents who want to monetize a spare house in the city. The new ordinance will require a monthly report from operators to document the number of renters and the amount of revenue resulting from the rentals.

CITY AUDIT

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Following a brief presentation by Kara Evans of Scheffel Boyle CPAs, the council voted unanimously to accept the city’s annual audit and financial statement. The auditors rendered a “clean opinion” on the city’s financial practices, finding no material errors or weaknesses in how the city accounts for its expenditures and financial resources.

Evans noted a slight decrease in cash reserves from the previous fiscal year, which was somewhat offset by returns earned on investments. While property tax revenue and state payments remained stable for the year, donations were down from the previous couple of years. Likewise, motor fuel tax disbursements to the city were down from the previous two years or so.

Total expenditures declined slightly, primarily due to the fact the city was not required to tear down any derelict buildings. Meanwhile, the city was able to realize some income from the sale of two properties acquired by the city through condemnation proceedings. The city entered into a new loan to purchase a tractor but paid down a loan taken out to purchase a backhoe, resulting in a total secured debt that is relatively unchanged from a year ago.

Evans also noted the Frank Bertetti Benld Public Library Board has continued to meet its commitment to invest 50 percent of all donations.

PAYMENT TABLED

After a brief discussion with Justin Vonder Haar of HMG Engineers, the council again tabled action on approving a final payment of $19,200 to Neuman Company Contractors due to continuing issues with a telemetry sensor that monitors the water level in the city’s water storage tower. The sensor reportedly hasn’t worked correctly since Neuman completed a painting and repair project on the tower. Last month, the council approved payment of $72,018 but withheld the retainer pending the company’s successfully repairing the issue.

“They thought they fixed it but they didn’t,” Mayor Jim Kelly said. Kelly said the company is expected to return with a third party to help pinpoint and repair the problem. “We’ve got the money but we’re going to hold onto it.”

The council rejected Vonder Haar’s suggestion that the city approve the payment pending resolution of the sensor issue.

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“I don’t want to authorize payment because we could pay it and then, two weeks later, it could stop working again,” Ald. Sarraco said.

Vonder Haar also reported on progress being made toward completing a survey of lead water service lines to Benld homes. The state-funded survey is expected to document the number of homes whose water is delivered through lines contaminated with lead. At some point in the future, grant funds are expected to be made available to help replace the lines with non-toxic materials.

Vonder Haar said fliers regarding the survey are expected to be mailed to local residents in two or three weeks. In the meantime, he said city officials could help by using social media and other resources to increase public awareness of the project.

“Any public awareness you can do will be greatly appreciated,” he said.

POLICE ISSUES

City Attorney Verticchio said he would talk to Police Chief Jared DePoppe after Ald. Fletcher complained he had called for a police officer to ticket an unlicensed solicitor, claiming to represent a local electrical utility. Fletcher said the officer who responded, however, refused to write a citation, presumably because no state laws were broken.

“What good does it do to have them if they’re not going to write ordinance violations?” Fletcher asked. “We need to get things clarified.”

Additionally, Ald. Saracco complained that Gillespie is still not providing the City Council with an accounting of the amount of time spent in Benld on patrol.

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Verticchio said he would discuss both issues with DePoppe, noting the contract for police services specifically obligates Gillespie Police to write ordination violation citations.

NUISANCE PROPERTIES

On a motion by Ald. Balzraine, the council voted unanimously to declare 500 North Sixth Street a public nuisance, which authorizes the city to seek legal action to clean up the property. The property recently was foreclosed, making the mortgage holder responsible for abating the nuisance, according to Verticchio.

No specific action followed a 20-minute executive session to discuss litigation, but Verticchio updated the council in open session about several pending cases. He reported that he expects the court to give permission to the city to clean up a property at 407 North Fourth Street but that police will probably be needed to remove squatters who reportedly moved into the house.

The council somewhat reluctantly accepted a bid of $11,000 from a neighbor to purchase a nuisance property at 306 North Seventh Street. Verticchio said the city had wanted 12,750 to fully recoup legal costs and the cost of clean-up. Seeing that no other offers have been received, he recommended accepting the bid and absorbing the $1,750 loss.

“I don’t know that we have many other options,” Ald. Saracco commented.

In a related matter, the council accepted a bid of $1,000 from Melvin West to purchase a city-owned parcel at 408 South Main Stree.

LEASE AGREEMENT TABLED

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The council tabled action on renewing a lease on the building currently serving as the city’s post office on Central Avenue. The current lease doesn’t expire until 2025, but the building owner wants to renew the lease for five years, along with an option to renew for two more five-year terms. Accepting the new terms would essentially obligate the city through 2040.

City aldermen opted to refer the issue to Verticchio for further research and recommendation. Among the issues the council wants resolved is a provision in the contract requiring the city to pay the company that drafts the lease.

OTHER ACTION

In other action, the council:

• Renewed the city’s liability insurance policy with the Illinois Municipal League’s Risk Management Association. The policy is basically a shared risk program involving municipal enrollees from throughout the state. By pooling resources, RMA is expected to keep rates relatively low. The premium for the new policy is increased by about eight percent.
• Voted to purchase an electronic digital transit at a cost of about $800.
• Agreed to purchase rock and culvert to resupply the city’s inventory.
• Approved a business for Cindy’s Decor and More, a home-based business operated by Cindy Crites.

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