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HomeMy WebLinkAboutReg 2022-10-17 Item 5D - Resolution - Residential Rental Business License and Inspection Program Fee ScheduleCOUNCIL AGENDA SYNOPSIS 4, Initials ITEM No. ZMeeting Date Prepared by Mayor's review Council review 10/17/22 NG 1908 ITEM INFORMATION STAFF SPONSOR: NORA GIERLOFF ORIGINAL AGENDA DATE: 10/17/22 AGENDA ITEM TITLE Rental Housing Licensing and Inspection Fee Resolution CATEGORY ❑ Discussion Mtg Date ❑ Motion Mtg Date 1. Resolution Mtg Date 10/17/22 ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs DCD ❑ Finance ❑ Fire ❑ P&R ❑ Police ❑ PW SPONSOR'S The resolution setting fees for rental housing licensing and inspections is due for renewal SUMMARY in 2023. Staff has suggested increases to partially cover the costs of providing this service. REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance I ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ DATE: 10/3/22 COMMITTEE CHAIR Delostrinos Planning & Community Dev. Planning Comm. Johnson RECOMMENDATIONS: SPONSOR/ADMIN. Department of Community Development COMMIFIEE Direct to full Consent COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 10/17/22 MTG. DATE ATTACHMENTS 10/17/22 Informational Memorandum dated 10/26/22 with attachments Planning and Community Development Committee Minutes from 10/3/22 39 40 W i City of Tukwila Allan Ekberg, Mayor 19oa INFORMATIONAL MEMORANDUM TO: Planning and Community Development Committee FROM: Nora Gierloff, Community Development BY: Lori Solberg, Rental Housing Program CC: Mayor Ekberg DATE: September 26, 2022 SUBJECT: Updated Rental Housing Licensing Fees and Program Update ISSUE Should Tukwila increase its rental housing licensing and inspection fees to adjust for inflation and staffing costs? BACKGROUND The City established the Residential Rental Business License and Inspection Program in 2010. This program was established to protect the public health, safety, and welfare by ensuring the proper maintenance of such housing, by identifying and requiring correction of substandard housing conditions, and by preventing conditions of deterioration and blight that could adversely impact the quality of life in the City of Tukwila. The licensing and inspection fees for 2023, 2024, and 2025 are due to be adopted at this time. DISCUSSION Briefing on the Rental Housing Licensing and Inspection Program: Tukwila Municipal Code Chapter 5.06 establishes regulations pertaining to rental housing licenses and inspection. All residential rental properties are required to obtain an annual rental business license and every 4 years pass a safety inspection performed by either a Code Enforcement Officer or a private inspector who meets specific qualifications. The city may also inspect units in response to complaints and audit inspections submitted by private inspectors when inspection reports are in question. As of August 31, 2022, the Rental Housing Program has 4,224 registered rental units and 529 active rental licenses (one license per property). A total of 79% of all registered rental licenses have up to date passing inspections, while 11% are due for their next inspection by September 30, 2022. Inspections ensure compliance with minimum health safety standards (See Attachment B). Fee Update for 2023, 2024, and 2025 Late fees were reimplemented in March of 2021 after being waived for all of 2020 due to the COVID-19 pandemic. Staff has found monthly late fees for overdue license renewals and inspections to be an effective tool to encourage compliance. As of August 31, 2022, 21 properties have yet to renew their 2022 rental license. Not including new rental licenses, 59 licenses are still due for inspection in 2022; 116 licenses are due for inspection in 2023. To increase revenue staff is recommending the City begin offering rental inspections for properties with up to 12 units. Currently, the City inspector is only an option for properties with 4 or fewer units. The current fee for a city inspection is $62 and it has only been raised $7 since 41 42 INFORMATIONAL MEMO Page 2 2017. Staff is proposing that it be raised to $75 in keeping with what other agencies and private inspectors charge and that thereafter it be increased by 5% on a yearly basis. We deliberately try to keep this inspection fee low as it only applies to small landlords. Additionally, staff is recommending that the residential rental business license fees for 2023- 2025 be increased by 5% per year over the next three years to keep up with the costs of administering the program. FINANCIAL IMPACT The proposed fee increases will help offset the programs' staffing costs while continuing to provide these necessary services. RECOMMENDATION The Committee is being asked to approve the resolution for 2023-2025 fees and forward this item as part of the consent agenda at the October 17, 2022 Regular Meeting. ATTACHMENTS Attachment A. Draft Residential Rental Licensing Fee Resolution Attachment B. Rental Housing — Inspection Checklist https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/Council Agenda Items/DCD/10-3 Rental_Housing_Fee_Resolution_Memo.docx 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. 2013. 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 12 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 due to inflation since the last fee review in 2020; and WHEREAS, the cost to administer the licensing program increases in proportion to the number of units per site; and WHEREAS, the continued renewal of Residential Rental Business Licenses and up-to-date rental inspections are critical to maintaining safe and healthy rental housing; 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: CC: \Legislative Development\Residential Rental Licensing fee schedule strike-thru 9-23-22 NG:bjs Review and analysis by Barbara Saxton Page 1 of 3 43 RESIDENTIAL RENTAL BUSINESS LICENSE AND INSPECTION FEES DESCRIPTION 2022 LICENSE 2023 2024 2025 LICENSE LICENSE LICENSE Annual Residential Rental Business License: Property with one, two, three or four units $-77„00 $ 80.00 $ 84.00 $ 88.00 Property with 5 to 20 units $-211-00 $208.00 $218.00 $229.00 Property with 21 to 50 units $25.2-90 $260.00 $273.00 $287.00 Property with 51 or more units $314-:00 $324.00 $340.00 $357.00 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 $0-00 $ 10.00 $ 10.00 $ 10.00 Penalty fee if a new unit is leased before a license and inspection is obtained $ 50-00 $ 50.00 $ 50.00 $ 50.00 Rental Inspection fees (City inspector): Inspection fee per unit, first 4 units {City inspector} $--62.00 $ 75.00 $ 79.00 $ 83.00 Additional unit inspections up to 12 units $ 35.00 $ 37.00 $ 39.00 Re -inspection fee per unit {City inspector} $--62,00 $ 35.00 $ 37.00 $ 39.00 Late fee per unit, per month, if Inspection Checklist is not submitted by September 30 of the year it is due $-= 0.00 $ 10.00 $ 10.00 $ 10.00 Hearing Examiner appeal fee $340.00 $340.00 $340.00 $340.00 Section 2. Repealer. Resolution No. 2013 is hereby repealed in its entirety as of 11:59 PM on December 12, 2022. Section 3. Effective Date. This resolution and the fee schedule contained herein shall be effective as of 12:00 AM on December 13, 2022. CC: \Legislative Development\Residential Rental Licensing fee schedule strike-thru 9-23-22 NG:bjs Review and analysis by Barbara Saxton Page 2 of 3 44 PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2022. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Thomas McLeod, Council President APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Resolution Number: Office of the City Attorney CC: \Legislative Development\Residential Rental Licensing fee schedule strike-thru 9-23-22 NG:bjs Review and analysis by Barbara Saxton Page 3 of 3 45 46 POST INSPECTION COMMENTS / REQUIRED CORRECTIVE ACTIONS HAZARDS - Check all hazards that apply. Plumbing system hazards found- IPMC 504.3 Mechanical equipment improperly installed and maintained- IPMC 603.1 Combustion air supply is inadequate for fuel burning equipment - IPMC 603.5 Unit does NOT have electrical service provided by utility-IPMC 604.1 Electrical system hazards found- IPMC 604.3 Other hazards found - IPMC 108 Describe hazard: Fire doors are blocked, obstructed, or inoperable-IPMC703.2 Inadequate emergency egress from one or more habitable spaces- IPMC 702.4 Doors, bars, grilles, grates over emergency escape openings are NOT readily operable from inside, without keys or special knowledge - IPMC 702.3 & 702.4 Missing/inoperable Smoke detector(s): Detectors required for each story; each bedroom; immediately outside each sleeping area - IPMC 704 Missing or inoperable Carbon monoxide detector(s): Detectors required for each story; immediately outside each sleeping area - RCW 19.27.530 One or more bedroom under 70 sq ft- IPMC 404.4.1 ✓ NC -PTS COMMENTS CITY OF TUKWILA OFFICIAL RENTAL INSPECTION REPORT DATE OF INSPECTION: INSPECTOR NAME (PRINTED): REINSPECTION REQUIRED? Y / N REINSPECTION DUE DATE: INSPECTOR SIGNATURE: For each hazard present add 25 points to Final Inspection Score CITY OF TUKWILA Property Owner: Rental Address: Property Name: Unit #: Bedrooms: Rental Housing Program - Inspection Report and Checklist UNIT DOES NOT PASS IF INSPECTION RESULTS EQUAL 25 POINTS OR MORE Bathrooms: Dwelling Type r Single-family r Condominium r Duplex C Triplex r Fourplex r Apartment w/5+ units C Accessory Dwelling Unit r Studio/Efficiency Unit FILE # Inspection Results PASS/ FAIL (CIRCLE ONE) Final Inspection Score RENTAL HOUSING INSPECTION CHECKLIST oo DIRECTIONS: If code standard is not met the inspector will mark the applicable section with the appropriate point value based on the severity of the violation. Severity levels are defined as minor, moderate, or severe (except where only a single score option is provided). The inspector will mark NA if not applicable and will add inspection notes to support ratings. Sections left blank indicate compliance with the referenced standards. Total score shall be calculated based on assigned non-compliance point values assigned to each violation and severity level. An inspection does not pass if there is a total of 25 or more non-compliance points (NC -PTS). INTERNATIONAL PROPERTY MAINTENANCE CODE (IPMC) STANDARD Windows and frames in good repair-IPMc 305.3 Floor surface in good repair-IPMc3os.4 Wall surface in good repair - IPMC305.3 No visible mold, mildew, or signs of moisure of leaks -UPMC 504.1 Adequate source of heat - IPMC 602.3 & 602.5 No evidence of insect or rodent infestation/harborage- IPMC 302.5&309 Functional lighting fixtures - IPMC 402.2 & 402.3 Two separate & remote electrical outlets per room -IPMC 605.2 Minimum of 1 openable, approved -size window facing directly to the outdoors- IPMC 402.1 & 403.1 Stove vent properly connected and functional- IPMC 302.6 & 403.4 Has a clear path of not less than 3' clearance between counterfronts and appliances or walls - IPMC 404.2 Has kitchen sink, cooking stove, refrigerator, and counter space- IPMC 404.7&502.1 1 grounded -type receptable or GFCI: laundry, kitchen, garage, basement-IPMc 605.2 Hot and cold water to all plumbed fixtures- IPMC sos.1 Clothes dryer exhaust vented properly to exterior- IPMC 403.5 Water heater correctly installed- IPMC 505.4 Door for privacy, in good repair, securely attached - IPMC 503.1 Separate bathroom with toilet, sink, & tub/shower- IPMC 404.4.3 Bathroom/toilet room properly ventilated (openable screened window or functional mechanical fan) -UPMC 403.2 Has at least one electrical receptacle-IPMc6os.2 INSPECTION NOTES: 2 1 EXTERIOR STRUCTURE / EXTERIOR PROPERTY INTERNATIONAL PROPERTY MAINTENANCE CODE (IPMC) STANDARD 'ase V e ,c, QsoQ Qty of aeca ete QQ' e+` e+'`• 4 ..(C•t` 6' 5e, 4' Surfaces in good repair- IPMC 304.2 1 2 3 Address numbers 4" tall & visible from the street-IPMC304.3 1 Strutural members in good repair- IPMC 304.4 3 10 25 Foundation walls in good repair- IPMC 304.0 3 10 25 Exterior walls in good repair-IPMc 304.6 3 10 25 Roof and drainage in good repair- IPMC 304.7 2 10 25 Decorative features in good repair- IPMC 304.8 1 Overhang extensions in good repair- IPMC 304.9 2 10 25 Stairways, decks, porches, balconies in good repair- IPMC 304.10 3 10 25 Handrails and guardrails firmly fastened- IPMC 304.12 2 10 25 Chimneys and towers in good repair- IPMC 304.11 3 10 25 Exterior doors in good repair; deadbolt locks operable by knob; deadbolt throw not less than 1 inch - IPMC 304.15 2 10 25 Clean, safe & sanitary/no uncontained debris- IPMC 302.1 1 5 10 Approved waste containers w/tight fitting lids- IPMC 308 1 5 10 Sidewalks/driveways free of hazards- IPMC 302.3 1 3 5 No weeds in excess of 12 inches- IPMC 302.4 1 3 10 No evidence of insect or rodent infestation/harborage- IPMC 302.s&309 3 10 25 Accessory structures in good repair- IPMC 302.7 3 10 25 No junk vehicles/repair outside garage - IPMC 302.8 1 5 10 Free from graffiti - IPMC 302.9 1 3 5 No standing water or erosion- IPMC 302.2 2 Swimming Pools, Spas & Hot Tubs - Clean, sanitary, in good repair- IPMC 303.1 1 5 10 Swimming Pools, Spas & Hot Tubs - Enclosure 60" high, w/self-closing latch- IPMC 303.2 3 10 25 INSPECTION NOTES space for additional inspection notes on back. ADDITIONAL INSPECTION NOTES City of Tukwila City Council Planning & Community Development Committee Meeting Minutes October 3, 2022 - 5:30 p.m. - Hybrid Meeting; Hazelnut Conference Room & MS Teams Councilmembers Present: Cynthia Delostrinos Johnson, Chair; Kathy Hougardy, De'Sean Quinn Staff Present: Laurel Humphrey, Nora Gierloff, Nancy Eklund, Derek Speck Chair Delostrinos Johnson called the meeting to order at 5:30 p.m. BUSINESS AGENDA A. Proposed 2023-2024 Budget: Urban Renewal (Fund 302) Staff provided an overview of the proposed budget. Committee Recommendation Discussion only. Forward to October 10, 2022 Committee of the Whole. B. Resolution: Residential Rental Housing Biz. License & Inspection Program Fee Schedule Staff is seeking Council approval of a resolution setting an updated fee schedule for the *Program. Committee Recommendation Unanimous approval. Forward to October 17, 2022 Regular Meeting Consent Agenda. C. Resolution: Consolidated Permit Fee Schedule Staff is seeking Council approval of a resolution adopting an updated consolidated permit fee schedule. Committee Recommendation Divided Recommendation with Councilmembers Delostrinos Johnson and Quinn in favor of removing the special permit fee for residential remodels up to $20,000 and Councilmember Hougardy in favor of retaining it. Forward to October 24, 2022 Committee of the Whole. D. Grant Agreement: Middle Housing Evaluation Staff is seeking Council approval to accept a $130,000 grant from the Washington Department of Commerce to support analysis for and development of the Comprehensive Plan including an exploration of allowing additional housing types in single family zones. Committee Recommendation Unanimous approval. Forward to October 10, 2022 Committee of the Whole. II. MISCELLANEOUS The meeting adjourned at 6:40 p.m. CDJ Committee Chair Approval 51