Agenda - Council Work Session - 08/08/2023

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CC Work Session Meeting Date: Primary Strategic Plan Initiative: 2. 2. 08/08/2023 Create a positive image for residential neighborhoods, business districts and key corridors. Information Title: Discussion of rental license fees and rental license renewal schedule, as it relates to the proposed crime -free housing and rental housing inspection programs. Purpose/Background: As part of the proposed Crime -Free and Rental Housing Inspection Programs, it has been discussed that the fees collected from rental licenses will cover the costs of staff inspections/enforcement (police and planning), planning inspection vehicle and equipment. Currently, the city has 474 rental licenses. Each license is valid for a term of 3 years. The cost for a rental license is $25 for 3 years, which is the lowest license fee in the metro area. The majority of communities have a yearly renewal with a much higher license fee. Staff is recommending an increase in fees and to require a yearly renewal rather than a renewal based on a 3 year cycle. The goal of the Ramsey rental license fee is to cover the implementation of crime -free housing (multi -tenant, police department managed) and rental inspection programs (multi -tenant and single-family rentals, planning department managed). Although Ramsey does not have a formal program in place, the Code Enforcement Officer spends a vast amount of staff time addressing complaints about rental properties through inspections and bringing the properties into compliance with city codes. Attached is a spreadsheet outlining current fees collected for the rental licenses and what could be collected if fees were increased. Currently, for a 3 year licensing cycle, $15,850.00 is collected. Staff proposes to increase the fee, as shown on the spreadsheet. If fees were increased to the proposed amount, fees collected for a 3 year licensing cycle would be approximately $199,600.00 over a span of 3 years or if the City Council chose to approve a yearly rental license, the amount collected each year would be the same ($199,600.00). The proposed fees for the program include the yearly wage for a full-time Rental Housing Inspector at approximately $94,000, initial cost of $30,000 for an inspection vehicle, and costs associated with equipment (desk and vehicle computer, cell phone, etc). Not included in the fees is the part-time work of police department staff needed for the crime -free housing program, in which the Police Chief will need to determine the actual costs. Timeframe: Proposed fees will be added to the 2024 Fee Schedule for formal adoption by the City Council in December 2023, becoming effective January 1, 2024. Funding Source: Rental license fees will be generated to assist with the cost for program implementation (staff inspections/enforcement, vehicle, equipment). Responsible Party(ies): Community Development Planning Division and Polic Department Outcome: