Loading...
HomeMy WebLinkAboutReg 2018-11-05 Item 4J - Resolution - 2018-2020 Residential Rental Business License and Inspection Program Fee ScheduleCOUNCIL AGENDA SYNOPSIS \--2005 Initials MeetingDate .Prepared by Mayorr review Council review 11/05/18 KS (/‘ ITEM INFORMATION ITEM No. 4.J. STAFF SPONSOR: KIA SHAGENA ORIGINAL, AGENDA DATE: 11/5/18 AGENDA ITEM Tmi Updating the Rental Housing Licensing Fee Schedule CXIEGORY E Discussion Mtg Date 0 Motion Mg Date 11 Resolution E Ordinance Mtg Date E Bid Award A ItgDate E Public FJearing Mt Date 111 Other Mg Date Mtg Date 11/05/18 SPONSOR Council EMayor FIR DCD Finance [Fire LTV [1]1)&-R [Police P12' Court SPoNsoit'S The revised rental housing license fee schedule reflects inflation in staff costs, higher fees SummARy for larger complexes and new fees for late rental inspections. RiNiit,WED BY El C.O.W. Mtg. CDN Comm E Finance Comm. 0 Public Safety Comm. [1] Trans &Infrastructure Arts Comm. E Parks Comm, E Planning Comm. DATE: 10/23/18 COMMITTEE CHAIR: KRULLER RECOMMENDATIONS: SPONSOR/ADMIN. CONIMITTEI Department of Community Development Unanimous Approval; Forward to Regular Mtg. Consent COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/05/18 MTG. DATE ATTACHMENTS 11/05/18 Informational Memorandum dated 10/11/2018 Resolution in final form Minutes from the Community Development and Neighborhoods Committee of 10/23/18 143 144 ity of Tu wlla Allan Ekberg, Mayor TO: FROM' BY: CC: T Community Development and Neighborhoods Committee Jack Pace, DCD Director Kia Shagena, Code Enforcement Officer Mayor Ekberg DATE October 11, 2018 SUBJECT: Updated Rental Housing Licensing Fees ISSUE Should Tukwila increase its rental housing licensing fees and inspection rate to adjust for inflation in staff costs? BACKGROUND Salaries for represented employees will likely increase in 2019 and 2020 by gay/© of the CPI-W (June 2017-2018)„ The CPi-W for that period is 3,6% and benefit costs have increased by an even higher percentage. DISCUSSION As of October 4, 2018, The Rental Housing Program has 3962 registered rental units, 1482 of those units have passed inspections in 2018, and 91 of all registered units have up to date passing inspections. Nearly 400 units have been added to the Rental Housing Program in 2018. With an increase in units there is increased demand on staff, Staff has found monthly late fees for overdue license renewals to be an effective tool, Currentiy, there is a flat $20 per unit late inspection fee for all inspections that are past due, Staff has found that a flat fee for late inspections does not create a sense of urgency in property owners to have their units inspected once they are already late. Staff proposes to replace the flat fee with a monthly late fee per unit for overdue inspections, Residential Rental Business License fees for single family homes and all licenses with four or fewer units will remain unchanged for 2019 and will increase by five dollars in 2020. 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 revised resolution and consider this item at the Nove ber 5"h Regular Meeting consent agenda, ATTACHMENTS Draft 'Residential Rental Licensing Fee Resolution. 145 146 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. 1895. 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 eight 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 2016; 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 2018 LICENSE 2019 LICENSE 2020 LICENSE Annual Residential Rental Business License: ........._ Property with one, two, three or four units $ 70.00 $ 70.00 $ 75.00 Property with 5 to 20 units $185.00 $190.00 $195.00 W:\Word Processing \Resolutions\Residentia Rental Licensing fee schedule 10-12-18 KS:bjs Page lof 2 147 DESCRIPTION Property with 21 to 50 units Property with 51 or more units 2018 LICENSE $235.00 2019 LICENSE 240.00 305,00 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 renewed before March 1 Penalty fee if a new unit is leased before a license and inspection is obtained Inspection fee per unit (City inspector) Re -inspection fee per unit (City inspector) Late fee per unit if Inspection Checklist is not submitted by September 30 of the ear it is due Late fee per unit, per month, if Inspection Checklist is not submitted by September 30 of the ear it is due Hearing Examiner appeal fee Section 2. Rep December 1, 2018. $ 10.00 $ 50.00 $ 55.00 $ 55.00 $20 00 10 00 $50,00 $ 55.00 55,00 10.00 $330,00 $340.00 aler. Resolution No. 1895 is hereby repealed, effective $50.00 60.00 $ 60.00 10.00 $340.00 Section 3. Effective Date. This resolution and the fee schedule contained herein sha I be effective as of December 1, 2018. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, VVASHINGTON, at a Regular Meeting thereof this day of ATTEST/AUTHENTICATED: 2018. Christy O'Flaherty, M C, City Clerk Verna Seal, Council President APPROVED AS TO FORM BY: Rachel B. Tur in, City Attorney Filed with the City Clerk: Passed by the City Council: Resolution Number: W:\Word Processing\Resolutions \Residential Rental Licensing fee schedule 0-12-18 148 Page 2 of 2 City of Tukwila City Council Community DevelopmentNeighborhoocs Committee COMMUNITY DEVELOPMENT & NEIGHBORHOODS COMMITTEE Meeting Minutes October 23, 2018 - 5:30 p.m. - Hazelnut Conference Room, City Hall Councilmembers: Kate Kruller„ Chair; Kathy Hougardy Staff: David Cline, Jack Pace, Nora Gierloff, Rachel Bianchi, Robert Eaton, Ka Shagena„ Laurel Humphrey CALL TO ORDER: Chair Kruller called the meeting to order at 5:30 p.m. I. PRESENTATIONS IZ USINESS AGENDA A. Interagency A reement: Lake to Sound Trail Staff is seeking Council approval of an interagency agreement with King County to design, construct, operate and maintain Lake to Sound Trail, Segment A, within the City of Tukwila boundary. Once complete, the trail will be a 16-mile route connecting the south end of Lake Washington to the Puget Sound in Des Moines, Segment A will add 1.1 miles from Renton's Black River Riparian Forest connecting to the Green River Trail in Tukwila. The portion in the City of Tukwila is located primarily in Fort Dent Park. Councilmember Hougardy noted that removal of illegal encampments is listed in both City and County responsibilities and asked staff to be aware of this. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 5, 2018 "'EGULAR CONSENT AGENDA. B. Interlocal A eement: Hearin Examiner Services Staff is seeking Council approval to renew an interlocal agreement with the City of Seattle for hearing examiner services through December 31, 2020. Tukwila has contracted with Seattle for these services since 2005 and this arrangement has proven to be efficient and cost effective. There agreement includes an updated hourly rate from $115 to $125 with no increase to support services or travel time. UNANIMOUS APPROVAL, FORWARD TO NOVEMBER 5, 2018 REGULAR CONSENT AGENDA. c. Resolution: Updating Rental Housing Fees Staff is seeking Council approval of a resolution that would update rental housing licensing fees. The Rental Housing Program has 3962 registered rental units with 91% up to date on inspections. Nearty 400 units have been added to the program this year. The fees are proposed to be updated as shown below: 149 Community Development& Neighborhoods Minutes October 23,„2018 DESCRIPTION Annual Residential Rental Business License: Property with one, two, three or four units Property with 5 to 20 units Property with 21 to 50 units Property with 51 or more units 2018 LICENSE 2019 LICENSE 70,00 70.00 $185.00 190.00 235.00 $240.00 $285.00 $295,00 License fees for units rented for the first time on or after July lst of each year reduced by 50%. Late fee per month if existing license is not renewed 10,00 $ (100 before March 1 Penalty fee if a new unit is leased before a lice se and inspection is obtained Inspection fee per unit (City inspector) Re -inspection fee per unit (City inspector) $ 50.00 $ 55,00 $50,00 55.00 $ 55.00 Late fee per unit if Inspection Checklist is not submitted by September 30 of the year it is due $20 00 Late fee per unit, per month, if Inspection Checklist is not submitted by September 30 of the year it is due Hearing Examiner appeal fee 55,00 0.00 2020 LICENSE 75,00 $195.00 $245,00 are 0.00 $50,00 $ 60,00 $ 60.00 $ 0, 00 330 00 340.00 $340,00 Council ember Hougardy asked about the justification being tied to salary adjustments since costs could be passed along to renters. Staff pointed out this progra was always intended to run with a cost recovery model, In addition, the program does not apply to Section 8 or units run by the Housing Authority. UNANIMOUS APPROVAL. FORWARD TO NOVEM1: ER 5, 2018 REGULAR CONSENT AGENDA, MISCELLANEOUS Chair Kruller raised the topic of non -City inspectors, as Council President Seal has recently shared concerns about the quality of services provided by certain individuals. The Rental Housing inspection Program requires owners with five or more units to hire a non -City inspector who meets certain qualifications and who is pre -approved by the City. Owners with fewer than five units may use a non -City or a City inspector. Staff noted that they when they became aware of quality issues with one particular individual, that person was discontinued as a preapproved inspector and notified by letter. Poor inspections create liability for property owners, as evidenced in a recent roof cave-in situation. Chair Kruller asked if there were ways for the City to hold the inspectors more accountable and to be more involved in the process. Councilmembers Idan and Hougardy agreed they would like to see more accountability and for the City to have a better sense of how inspectors are performing. The Comrnittee requested that staff seek input from the City Attorney and return with options. RETURN TO COMMITTEE. 150