CR 10-103 Rental License Registration Fees and Rental Re-inspections�m
September 21, 2010 Council Report 2010-103
RENTAL LICENSE REGISTRATION FEES & RENTAL RE -INSPECTION FEES
Proposed Action
Staff recommends the following motion: Move to approve Resolution 2010-059 increasing the established
fees for Rental License Registration and Rental Re -Inspections per City Code Section 407.
Overview
The purpose of City Code Section 407 is to assure that rental housing in the City is decent, safe and
sanitary and is operated and maintained so as to not become a nuisance to the neighborhood. The
operation of rental dwelling units is a business enterprise that entails certain responsibilities. The City
believes that providing for public health, safety and welfare to its citizens mandates the existence of a
rental dwelling unit license and inspection program to maintain minimum standards.
City Code allows the Rental License Registration Fees and Rental Re -Inspection Fees to be set by the
adoption of a resolution. Resolution 2010-059 revises the following:
• Rental License Registration Fees
• Rental Re -Inspection Fees
The fees as proposed, if adopted, should generate an estimated $18,000 - $20,000 per year to defray the
City's administrative costs of the Rental Inspection Program.
Primary Issues to consider
• Why are the fees being changed
Supporting Documents
• Analysis of the Issues
• Resolution 2010-059
a Q
Christopher P. Kearney, Bui ding Official
Financial Impact: Plus $18,000 to $20,000 Budgeted: Y/N Source:
Related Documents (CIP, ERP, etc.):
Notes:
Council Report 2010-103
Page 2
• Analysis of the Issues
Why are the rental license registration fees being changed?
The license fee revision is proposed for the following reason:
• With the responsibility of administering the rental licensing and inspection program, there are
costs involved. The new rental inspection program has had a very positive impact on rental
dwellings since it went into effect in January 2008 and the program shall continue. Although the
current fee schedule is helping defray part of the program cost, the revised fees will help sustain
the program and cover most of the administrative costs.
• Compared to rental license registration fees around the metro area the proposed fees are well in
line with what is being charged in other cities. See chart below.
City
Rental License
Fee Per
Building Per Year
Rental License
Fee Per Unit
Per Year
Re -Inspection
Fees
Brooklyn Center
200.00
18.00
100.00
Golden Valley
100.00
20.00
unknown
St. Louis Park
155.00 * * *
10.00
130.00
Minneapolis
65.00
19.00
100.00 + 50% if
30 days late after invoiced
Shoreview
100.00
7.50
50.00
Blaine
100.00
10.00
60.00
Proposed
Hopkins Fees
50.00
7.50
50.00
75.00 (2"d re -inspection)
Doubles Previous Amount
* * * Includes one inspection
If the proposed resolution is adopted, the city probably would not revisit the rental license registration fee
schedule for three years.
Why are the rental re -inspection fees being changed?
The rental re -inspection fee revision is proposed for the following reason:
• To move the landlords and tenants towards compliance in a more timely fashion, the re -inspection
fee could be increased from $35.00/re-inspection to $50.00/re-inspection. If compliance is not met,
the re -inspection fee doubles every time after the first re -inspection. Re -inspection fees are not
automatically charged as each case is different and has to be looked at on an individual basis.
Alternatives
Alternative #1: Approve Resolution 2010-059
Alternative #2: Do not Approve Resolution 2010-059
Staff recommends Alternative #1
CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO: 2010-059
• REVISING RENTAL DWELLING LICENSE FEES
• ESTABLISHING RENTAL DWELLING INSPECTION FEES.
• REVISING RENTAL DWELLING RE -INSPECTION FEES.
WHEREAS, the City Council has enacted City Ordinance Section 407, which assures that rental
housing in the City is decent, safe and sanitary; and
WHEREAS, the City Council has determined that regular inspections ensure that the City's rental
housing stock is decent, safe and sanitary; and
WHEREAS, the City Council desires to establish increased fees to fund the inspectors who perform
the annual rental license and the periodic rental license inspections; and
WHEREAS, the City Council. desires to establish increased fees for multiple re -inspections of
unresolved rental property deficiencies to defray the costs of multiple inspections
NOW, THEREFORE, BE IT RESOLVED that the City Council adopts the following fees for the
annual rental license and the periodic rental license inspections and re -inspections:
Cost/Building Cost/Dwelling Unit
Annual Rental License Fee
1 $50.00 $7.50
Cost/Building
Cost/Dwelling Unit Inspected
Periodic Inspection Fee - Initial
Inspection
$65.00
$20.00
First Re -inspection
$50.00
$50.00
Second Re -inspection
$75.00
$75.00
Each Additional Re -inspection
Double The
Previous Amount
Double The Previous Amount
Final Compliance Inspection
1 $0.00
$0.00
Cost/Building
Cost/Condo Unit
Periodic Inspection Fee - Initial
Inspection Per Condominium
$0.00
$45.00
First Re -inspection Condo
$50.00
$50.00
Second Re -inspection
$75.00
$75.00
Each Additional Re -inspection
Condominium
Double The
Previous Amount
Double The Previous Amount
Final Compliance Inspection 1 $0.00 $0.00
Adopted by the City Council this 21" day of September, 2010
Gene Maxwell, Mayor
ATTEST
Terry Obermaier, City Clerk