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Home My WebLink AboutCOW 2016-10-10 Item 3B - Resolution - 2017-2018 Residential Rental Business License Fee Schedule (Includes December 2016)COUNCIL AGENDA SYNOPSIS Initials Meetin g Dale Prepared by Ma is rei)i en) Council review 10/10/16 NG -IfffW Q-1— F-1 Ordinance All ,g Date 10/17/16 NG ❑ Other Mtg Dale SPONSOR ❑ Council [:] Major E].HR Z DCD [:] Finance ❑ _Fire [:] TS ❑ P&R ❑ Police ❑ J)Ijvl SPONSOR'S The revised rental housing license fee schedule reflects inflation in staff costs, higher fees summ'\Ry for larger complexes and new fees for late renewals and rentals prior to licensing. lki,'VIEWFID BY ❑ cow Mtg. Z CA&P Cmte ❑ F&S Cmte ❑ Transportation Cmte [-] Utilities Cmte ❑ Arts Comm. ❑ Parks Comm. F-1 Planning Comm. DATE: 9/26/16 COMMITTEE CHAIR: QUINN RECOMMENDATIONS: SPONSOR /ADMIN. Department of Community Development Comm "I"T' " Unanimous Approval; Forward to Committee of the Whole & Consent COST IMPACT / FUND SOURCE Exi)i�"NDI'rUitt;1 Rl,'(2Ulm,"D Amot.Wi' BUDGETED APPROPRIA'T'ION REQUIRED I I I I ITEM NO. 21 STAFF NOP-4 GIERLOFF I ORIGINAL Ac3 11?NDA DATE: 10/10/16 A(,,j,"Nl),\ I'n,"m TjTj,i-;1 Updating the Rental Housing Licensing Fee Schedule CATI,"GORY Z Discussion Aftg Date 10110116 ❑ Motion Alig Date Z Resolution Aftg Date 10117116 F-1 Ordinance All ,g Date F-1 WdAxard All ,g Dale [:] Public Hearing Alig Date ❑ Other Mtg Dale SPONSOR ❑ Council [:] Major E].HR Z DCD [:] Finance ❑ _Fire [:] TS ❑ P&R ❑ Police ❑ J)Ijvl SPONSOR'S The revised rental housing license fee schedule reflects inflation in staff costs, higher fees summ'\Ry for larger complexes and new fees for late renewals and rentals prior to licensing. lki,'VIEWFID BY ❑ cow Mtg. Z CA&P Cmte ❑ F&S Cmte ❑ Transportation Cmte [-] Utilities Cmte ❑ Arts Comm. ❑ Parks Comm. F-1 Planning Comm. DATE: 9/26/16 COMMITTEE CHAIR: QUINN RECOMMENDATIONS: SPONSOR /ADMIN. Department of Community Development Comm "I"T' " Unanimous Approval; Forward to Committee of the Whole & Consent COST IMPACT / FUND SOURCE Exi)i�"NDI'rUitt;1 Rl,'(2Ulm,"D Amot.Wi' BUDGETED APPROPRIA'T'ION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 10/10/16 MTG. DATE ATTACHMENTS 10/10/16 Informational Memorandum dated 9/19/16 Resolution in Draft Form (Resolution updated after CAP, shown in shaded text) Minutes from the Community Affairs and Parks Committee meeting of 9/26/16 10/17/16 21 22 City of Tukwila Allan Ekberg, Mayor TO: Community Affairs and Parks Committee FROM: Jack Pace, DCD Director BY: Nora Gierloff, Deputy DCD Director CC: Mayor Ekberg DATE: September 19, 2016 SUBJECT: Updated Rental Housing Licensing Fees ISSUE Should Tukwila increase its rental housing license fees and inspection rate to adjust for inflation in staff costs? BACKGROUND The CPI -W for 2015-16 is 2% and staff benefit costs have increased by an even higher percentage. Residential rental licensing fees have not increased since 2014. DISCUSSION Staff is suggesting additional categories in the rental business license fee table. Currently properties with 1-4 units pay $60 and 5 or more units pay $175. However the staff costs for license review increase with the number of units because every unit has a separate inspection report that must be reviewed and logged. We have 42 complexes in the City with more than 20 units. Currently there is no late fee charged when an owner does not renew a license and there is no penalty when a unit is rented prior to licensing and inspection. This is a concern because there could be life safety issues that should be addressed prior to a tenant moving in to a unit. Staff is recommending incentivizing prompt renewals and proactive licensing with new fees. FINANCIAL IMPACT The proposed fee increases will keep pace with the City's costs to provide these necessary services. RECOMMENDATION The Council is being asked to approve the resolution and consider this item at the October 10, 2016 Committee of the Whole meeting and subsequent October 17 Regular Meeting consent agenda. ATTACHMENT Draft Residential Rental Licensing Fee Resolution 23 24 DRAFT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ADOPTING A RESIDENTIAL RENTAL BUSINESS LICENSE AND INSPECTION PROGRAM FEE SCHEDULE; AND REPEALING RESOLUTION NO. 1849. WHEREAS, the City has adopted a Residential Rental Business License and Inspection Program, pursuant to Tukwila Municipal Code Chapter 5.06; and WHEREAS, the program has significantly improved the condition of the City's rental housing stock over the past six years; and WHEREAS, the City is authorized to impose fees for services rendered; and WHEREAS, the fees for this program are intended to offset most of the cost of providing this service-, and WHEREAS, the costs to administer the program have increased since the last fee review in 2014; and WHEREAS, the cost to administer the licensing program increases in proportion to the number of units per site, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. Residential Rental Business License and Inspection Program fees will be charged according to the following schedule: RESIDENTIAL RENTAL BUSINESS LICENSE AND INSPECTION FEES DESCRIPTION 2016 LICENSE 2017 LICENSE 2018 LICENSE Annual Residential Rental Business License: Property with one, two, three or four units $60.00 $&5_:00 L70-00 Property with 5 to 20 units $175,00 1180.00 $185.00 WAWord Processing\Resolutions\ResidentiaI Rental Licensing fee schedule 9-27-16 NG:bjs Page 1 of 2 25 DESCRIPTION 2016 2017 2018 LICENSE LICENSE LICENSE Property with 21 to 50 units $175.00 1230.00 1235.00 Property with 51 five-or more units $175.00 I280.00 $285.00 License fees for units rented for the first time on or after July 1st of each year are reduced by 50%. Late fee per month if existing license is not $ 0.00 $10.00 $10.00 renewed by Marrah-34 before March 1 Late -Penal t,y fee if a new unit is leased before $ 0.00 $50.00 $50.00 a license and inspection is obtained Inspection fee per unit (City inspector) $50.00 $55.00 55.00 Re-inspection fee per unit (City inspector) $50.00 $55.00 $55.00 � Hearing Examiner appeal fee t $300.00 1 $330:_00 1 $330.00 1 Section 2. Repealer. Resolution No. 1849 is hereby repealed, effective December 1, 2016. Section 3. Effective Date. This resolution and the fee schedule contained herein shall be effective as of December 1, 2016. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 12016. ATTEST/AUTH E NTI CATE D: Christy O'Flaherty, MMC, City Clerk Rachel B. Turpin, City Attorney Joe Duffie, Council President Filed with the City Clerk: Passed by the City Council: Resolution Number: WAWord Processing\Resolutions\ResidentiaI Rental Licensing fee schedule 9-27-16 NG:bjs 26 Page 2 of 2 • . f 1 • City Council Community Affairs and Parks Committee COMMUNITY AFFAIRS AND PARKS COMMITTEE Meeting Minutes September 26, 2016 - 5:30 p.m. - Hazelnut Conference Room, City Hall Councilmembers: De'Sean Quinn, Chair; Kathy Hougardy, Thomas McLeod Staff: David Cline, Rick Still, Robert Eaton, Nora Gierloff, Vicky Carlsen, Gail Labanara, Jack Pace, Laurel Humphrey CALL TO ORDER: Committee Chair Quinn called the meeting to order at 5:30 p.m. I. ANNOUNCEMENT II. BUSINESS AGENDA A. Staff is seeking Council approval of a 'resolution that would update and adopt a consolidated permit fee schedule for Public Works and for Land Use. The proposal increases rates to reflect the increased costs of providing development review services, including flat land use fees increased at the same rate as City labor and benefit costs, and a 3% pass- through of credit card fees as a surchargeto the applicant. The pass through charge represents an average and would not be applicable to debit cards. The proposal also includes a reduction in fees for temporary sign permits, which has been found to be barrier to small business compliance with the sign code. Committee members supported the proposal while asking that it be made clear to applicants that the increased rates is simply to cover the additional costs to the City. UNANIMOUS APPROVAL. FORWARD TO OCTOBER 10, 2016 COMMITTEE OF THE WHOLE. B. Resolution: Residential Rental Business License and Inspection Program Fee Schedule Staff is seeking Council approval of a resolution that would update and adopt the fee schedule for the Residential Rental Business License and Inspection Program. The proposal includes an increase to adjust for inflation, additional categories for properties of varying unit size, and the addition of a late feeforthe license renewal. Because there is no penalty for renting a unit prior to licensing and inspection, there could be life safety issues that should be addressed. Initiating a late fee could incentivize prompt renewals and licensing. The Committee discussed the appropriate amount for the late fee and ultimately agreed with the staff recommendation, while suggesting the late fee start on March 1 rather than 31. UNANIMOUS APPROVAL. FORWARD TO OCTOBER 10, 2016 COMMITTEE OF THE WHOLE. 27