City of Port Huron 100 McMorran Boulevard Port Huron, Michigan 48060 June 24, 2016 Mr. John Barcume Mr. Todd Barcume 36001 Harper Clinton Township, MI 48035 RE: ADMINISTRATIVE RULING ON WHETHER RENTAL PROPERTIES, SHOULD BE DECLARED A PUBLIC NUISANCE UNDER CITY OF PORT HURON ORDINANCE SECTION 10-168(b) Mr. John and Todd Barcume, On June 15, 2016, a meeting was held to consider whether to declare certain rental properties a public nuisance under City of Port Huron Ordinance Section 10- 168(b). AAt that time, the undersigned: Director of Public Safety Michael Reaves, City Manager James Freed, and Building Official John Schmitt, the individuals charged with making such a determination under the ordinance met with you and your attorney, Dan Damman to consider the facts and give you an opportunity to rebut the facts and provide your position on the issue. Advance notice of the meeting and the purpose of the meeting was provided by letter dated May 23, 2016, and the police files at issue were made available to you. The Barcumes and their counsel were given an opportunity to respond to the information provided as each property under consideration. The Barcumes also put forth some ideas for future implementation that they felt might help in negating the nuisances at these locations. The undersigned have reviewed the information provided and looked at the evidence, and are now prepared to make a decision ‘The Standard The relevant portion of Port Huron City Ordinance Section 10-168(b), a section of the City’s Rental Certification Ordinance, provides as follows: ‘A rental certificate may be revoked if the property is declared a "public nuisance" by the City Manager, Chief of Police, and the building official, or their designee, under this subparagraph based upon the conduct and activities within a rented property. Evidence of repeated code violations, including blight, or multiple valid police calls or incidences, illegal activity or other activity that threatens the health, welfare or safety of the surrounding residents, whether the result of the activities of the owner, the agent, the tenants, or their guests, may constitute a public nuisance under this subparagraph, Maritime Capital of the Great Lakes®‘The Background Earlier this year, as a result of observations of City employees, Citizen complaints, and other information made available to the City as to the way in which John and Todd Barcume were managing rental properties owned or controlled by them, we began reviewing the large number of illegal drug issues and other police calls and blight complaints as to these properties. The Barcumes have over 100 rental homes in the City of Port Huron, the most of any landlord in the City, Since the City began maintaining computerized records of police calls starting in the 2007/2008 time frame, over 5,700 police calls for service have occurred at Barcume owned properties. Barcume properties have accounted for well over 50 police calls per week on average in the City during that time period, leading to an enormous use of police resources and expense to the City of Port Huron. Since the City created its blight enforcement unit, the number of blight tickets issued at Barcume owned properties is approximately 4 times the number of our second biggest landlord on a per address basis. Director David Haynes has indicated that Barcume properties have the highest rate for denied access forms returned for the city rental inspection program from tenants living in these properties. According to some tenants, they are told that an inspection could lead to criminal charges or calls to child protective services. The Barcumes have admitted that they do not make a good-faith effort to obtain permission for a rental inspection, but instead regularly encourage their tenants to complete the denial of access forms. Our review ultimately centered on eight (8) properties for consideration as to whether they should be declared a public nuisance under the ordinance. Each of these addresses has ‘multiple rental units, many with single bedroom units, and have been the subject of a shockingly high number of valid police calls and blight complaints. For example, these eight properties have had a total of 461 validated police calls from 2013 through mid-March, 2016, a period of slightly over three years. During this same time period, there have also been 59 blight violations at these 8 properties. They have also been the subject of 9 separate DTF drug raids for Meth, Heroin, or Cocaine. Every one of the properties has had at least one DTF drug raid where illegal drugs have been found -- except one. That one exception has had 101 valid police calls in the past 3 years to the property. Prior to the June 15, 2016 meeting, City Officials held a meeting on May 5, 2016 with John and Todd Barcume, and their attorney Dan Damman, to explain the ordinance and the planned upcoming hearing, and provide them with acess to the information gathered by the Police Department. During this meeting the specific properties of concern were listed for the Barcumes, and their attorney, along with a synopsis of the concerns for each address. Present at the meeting also included the President of the Port Huron Area Landlords Associations (PHLA), who also addressed background screening methods utilized by successful landlords in terms of locating good tenants. During that meeting, it was disclosed that the Barcumes do not utilize many of these methods. The Barcumes indicated that they average about five (5) evictions a ‘week, primarily for non-payment of rent, but also for tenants that are causing problems. The Barcumes also stated that the rental properties in question, because they are multi-unit homes with single bedroom units, attract tenants that inherently bring more problems than rentals of single family homes. When asked why he does not put the greater effort into pre-rental screening as opposed to the efforts at evicting tenants after a problem arises, John Barcume indicated that the way that they do business makes these properties exceedingly profitable, moreprofitable than the landlords that put more effort into tenant screening and rent a home as a single unit, He indicated that one of these rental homes has annual gross receipts of over $20,000 per year. ‘The Barcumes have also indicated that they do not always require security deposits and rent to individuals without a legitimate source of income. ‘The Barcumes have also made comments in the past to the effect that they choose to operate rentals in the City of Port Huron because it is more lax on landlords than other municipalities in Macomb County. Todd Barcume, who lives in Macomb County, has also indicated that he does not live in the City of Port Huron where he manages all of these rental units, because, in his opinion, Port Huron is no place to raise a family. 1029 Chestnut Street A review of the rental units at 1029 Chestnut Street showed 86 valid police calls at that location. between 2013 and early 2016. These calls included 19 domestic complaints and 25 disorderly Persons complaints, as well as a Drug Task Force (DTF) raid in which Heroin was recovered and suspect(s) arrested in 2015. Additionally there have been 7 code or inspections violations on this property. For comparison purposes, the home at 1037 Chestnut Street has had 5 police calls for service in the same amount of time. 1122 Howard Street A review of the rental unit at 1122 Howard Street showed 59 valid police calls since 2013. This location also showed at least one drug arrest in 2014 for Meth, and two separate drug raids by the DTF, including one in 2015 involving Meth, and one in 2016. There have been a total of 5 code or inspections violations on this property, and the rental certification for this property is also expired, As a comparison, the home at 1126 Howard Street has had 3 calls for police service within the same time period 827 Pine Street A review of the rental unit at 827 Pine Street showed 49 valid police calls for service at this location since 2013, which included a strong armed robbery complaint in 2014. Additionally, there have been 3 DTF narcoties trafficking raids at this location — 1 in 2012 for Heroin, 1 in 2013 for Cocaine, and another in 2015 Meth. There have been 7 code or inspections violations at this property. Asa comparison, the property at 829 Pine Street has not had a single police response in the same time period. 1217-9" Street A review of the rental unit at 1217 9" Street showed 54 valid police calls for service since 2013 ‘There has been a prior notification of a public nuisance complaint in 2015, and two (2) DIF narcotics raids — 1 in 2013 for Heroin and another in 2016 for Meth. There have been 8 code orinspections violations at this property. As a comparison, the property located at 1218 9" street has had 0 calls for police service in the same time period. 2726 Sturges Street A review of the rental unit at 2726 Sturges showed 18 valid police calls since 2013. There has been 2 DIF Narcotics raids, with 1 in 2015 for Meth and another in 2016. There has been 11 code or inspections violations at this property, and the rental certification has expired for this property. As a comparison, the home at 2720 Sturges Street shows 0 police calls since 2013. The owner admitted to re-renting this location to a known narcoties trafficker. 1725 10" Street A review of the rental property at 1725 10 Street shows 76 valid police calls since 2013. These calls include a neighborhood public nuisance complaint in 2014, and a DTF narcotics raid in 2013 for Heroin. This location has located 44 Domestic / Disorderly complaints since 2013. There have been 11 code or inspections violations at this property. As a comparison, the home at 1721 10" Street shows 17 calls for police service in the same time period. 904 Griswold Street A review of the rental unit at 904 Griswold Street shows 18 calls for police service since 2013. Additionally there have been 2 DTF Narcotics raids — with 1 in 2015 for Meth and another in 2016 for Meth after the initial tally of the calls. Additionally a tenant possessed Heroin after a criminal arrest in 2016. There have been 2 code and inspections violations at this property, and the rental certification has been expired. As a comparison, the home at 903 Oak Street, the home immediately behind the subject home, shows 0 calls for police service in the same time frame. 1002 9" Street / 834 Pine Street A review of the rental property at 1002 9" Street / 834 Pine Street shows 101 calls for police services since 2013. At least 14 of those validated calls were for domestic disturbances, and at least 1 overdose. There have been 5 code or inspections violations at this property. As a comparison, the home at 823 Pine Street shows only 6 calls for police service in the same time period. Determination Based upon the above facts, and reviewing the standard set forth in Port Huron City Ordinance Section 10-168(b) the undersigned unanimously agree that the following eight properties clearly meet the definition of a “public nuisance” under the Ordinance, and are hereby declared as such. 1029 Chestnut Street, 1122 Howard Street 827 Pine Street, 1217 9th Street 2726 Sturges Street 1725 10th Street awaene7. 904 Griswold Street 8. 1002 9" Street/834 Pine Street Each of these properties has had an excessive number of valid police calls and multiple blight violations requiring excessive use of City resources. Each has had evidence of significant deleterious activities occurring on the premises (including dangerous drug activities) that are a threat to the neighborhood, the health, welfare or safety of the surrounding residents, and the peaceful enjoyment of the homes of those who live nearby. Under Section 10-168(b), “a rental certificate revoked under this subparagraph shall be revoked for a minimum period of at least 12 months”. As a result of the finding of a “public nuisance”, ALL rental certifications for each of the listed properties are hereby revoked for a period of twelve (12) months, beginning 45 days after the date of this letter to allow the property owners(s) to complete the vacation of each rental property. Given the Barcumes’ statement that the problems are largely the result of the fact that the properties are multi-unit homes, at the conclusion of the twelve (12) month period, the property owner(s) may re-apply for a single (1) rental certification for each property, regardless of the number of units at the property. Appeal Rights Section 10-168(b) provides that “Any property owner who wishes to challenge a finding of a public nuisance under this subparagraph may utilize the procedure set forth in Section 10-167 to appeal said finding.” The appeal process set forth in Port Huron City Ordinance Section 10-167 (Copy attached) must be initiated by filing an appeal within ten (10) days of receipt of this decision. Michael Reaves Director of Public Safety Chief of the Police and Fire Departments I -City of Port Huron