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8.1. SR 06-06-2016 Eclty1� ,.,�� Request for Action River To Item Number Mayor and City Council 8.1 Agenda Section Meeting Date Prepared by General Business June 6, 2016 T.John Cunningham, Fire Chief Item Description Reviewed by Rental Dwelling Ordinance Scott Baumgartner, City Prosecutor Peter Beck, City Attorney Reviewed by Cal Portner, City Administrator Action Requested 1. Adopt,by motion, an ordinance regarding the licensing of rental dwellings. 2. Adopt,by motion, a resolution for summary publication of the ordinance. Background/Discussion The Council reviewed an updated rental dwelling licensing ordinance at the April 18, 2016,work session. To seek additional feedback on the proposed changes, Chief Cunningham presented an overview of the ordinance to the Apartment Coalition Meeting on April 21, 2016. No feedback or concerns have been brought forward. Since the April presentation to the Council, only a few minor changes have been made to the revised ordinance, specifically pertaining to Sec. 30-202, Repeat Nuisance Fee. At this time, staff is recommending striking that section of the ordinance to allow time to collect additional data based on the number of calls for service. Staff will bring back this section for further discussion towards the end of the year,which will include an analysis of the data collected and any foreseen concerns over workload. Chief Cunningham will present a summary of the changes. Financial Impact None, staff will be bringing back proposed changes to the fee schedule at a later date. Attachments ■ Ordinance ■ Resolution for Summary Publication ■ April 18, 2016, Staff Report POWERED 6T Template Updoted 4/14 INAWRE1 �jStfikethfoughs to be removed Underlines to be added City of Elk -�-� River Ordinance 16 - An Ordinance Repealing Chapter 30, Article III, Divisions I, IA, 2, and 3 and Replacing it with a New Ordinance Regarding Residential Rental Property Standards, and moving Chapter 30, Article III, Divisions 4 and 5 to Chapter 30, Article II as Divisions 3 and 4, respectively, the City of Elk River, Minnesota, City Code The City Council of the City of Elk River does hereby ordain as follows: SECTION 1. The language and content of the current Chapter 30,Article III,Divisions 1, 1A, 2, and 3, of the Elk River City Code is hereby repealed in its entirely and a new ordinance, 16- titled, Residential Rental Property Standards, shall be enacted as follows: CHAPTER 30-LAND DEVELOPMENT REGULATION ARTICLE III - RESIDENTIAL RENTAL PROPERTY STANDARDS DIVISION 1. —GENERALLY Sec. 30-151. - Purpose and Intent. (a) Purpose. The operation of residential rental properties is a business enterprise that gives rise to certain responsibilities. Operators are responsible to take reasonable steps, as may be necessary, to assure that the citizens of the City who occupy such units, and those residing near such units,may pursue the quiet enjoyment of the normal activities of life in surroundings that are: (1) Safe, secure and sanitary; (2) Free from crimes and criminal activity,noise,nuisances or annoyances; and (3) Free from reasonable fears about safety of persons and security of property. Further,it is the intent of this Article to regulate and provide for the inspections of Rental Dwellings to assure that such housing does not become a nuisance or blight to the neighborhood and does not create a disincentive to investment in the community. Sec. 30-152. - Scope of Article. (a) Generally. The provisions of this Article shall apply to all buildings or portions thereof used, or designed, or intended to be used, for residential rental purposes. URE Last Updated il7asch 2014 INATJ Stfikethfoughs to be removed Underlines to be added (b) Combination apallnient house-hotels. Where any building or portion thereof is used or intended to be used as a combination apartment house-hotel, the provisions of this Article shall apply to the separate portions as if they were separate buildings. (c) Roonainghouses and lodginghouses. Every roominghouse or lodginghouse shall comply with all the requirements of this Article for Rental Dwellings. (d) Additions, alterations or repairs. For additions, alterations, or repairs, see the building code. (e) Relocation of buildings. Buildings or structures moved into or within the City shall comply with the requirements in this Code and the building code for new buildings and structures. (f) Continuation of existing use. Rental Dwellings in existence at the time of adoption of the ordinance from which this Article is derived may have their existing use or occupancy continued if such use or occupancy was legal at the time of adoption of the ordinance from which this Article is derived,provided such continued use complies with and is subject to the terms of this Article. Sec. 30-153. - Definitions. The following definitions, and those contained in Section 30-1,will be used in interpreting and enforcing this Article. Agent. A person designated by the Owner of a Rental Dwelling to act on behalf of the Owner. City. The City of Elk River,Minnesota. Disorderly conduct- Disorderly Conduct shall be as defined by Minnesota Statutes, Section 609.72 (Disorderly Conduct) as amended. Major Life/Safety Issues. Hazardous conditions that,in the judgment of the Fire Chief or other code enforcement official,pose an imminent risk to the life and safety of Tenants and other occupants. Nuisance call. Any instance where law enforcement officers are called to a property in response to a valid complaint related to a violation of State or local laws or Ordinances. Tenant. Any person, excluding the Owner or Operator,living in a Rental Dwelling. Valid complaint. A violation that is visible at the time of inspection or proven by credible, substantial evidence to the satisfaction of the City. Wherever the terms "dwelling," "dwelling unit," "premises," and "structure," are used in this Article, they shall be construed as though they were followed by the words "or any part thereof'. URE Last Updated il7asch 2014 INATJ Stfikethfoughs to be removed Underlines to be added DIVISION 1A. - INTERNATIONAL PROPERTY MAINTENANCE CODE. Sec. 30-154. - Property maintenance code. The 2012 version of the International Property Maintenance Code, three copies of which are on file in the office of the City Clerk of the City of Elk River, being marked and designated as the International Property Maintenance Code as published by the International Code Council, Inc.,is adopted as the property maintenance code of the City for the purposes of this Article relative to the control of buildings and structures as herein provided; and each and all of the regulations, provisions,penalties, conditions and terms of said property maintenance code are hereby referred to, adopted, and made a part hereof, as if fully set out in this Article, with the additions,insertions, deletions and changes,if any,prescribed in Section 30-155 of this Division. Sec. 30-155. - Revisions to the International Property Maintenance Code. The following Sections of the International Property Maintenance Code are hereby revised: Section 101.1. Insert: City of Elk River Section 103.5. Insert: The current year fee schedule adopted by the City Council. Section 302.4: Insert: 8 inches. Section 602.3. Insert: October 15 to April 15 Section 602.4. Insert: October 15 to April 15 Sec. 30-156. - Conflict between codes. Where there is any conflict between the provisions of the International Property Maintenance Code and any other applicable code or ordinance enforced by or in the City of Elk River, the more restrictive provisions shall apply. Secs. 30-157-30-170. - Reserved. DIVISION 2. –ADMINISTRATION AND ENFORCEMENT Sec. 30-171. - Authority of Fire Chief; right of entry. (a) The Fire Chief is hereby authorized and directed to provide for the enforcement of all provisions of this Article. The Fire Chief shall have the power to render interpretations of this Article and to adopt procedures as he/she may deem necessary in order to apply the provisions of this Article. Such interpretations and procedures shall be in conformity with the intent and purpose of this Article. (b) Whenever necessary to make an inspection to enforce any of the provisions of this Article, or whenever the Fire Chief has reasonable cause to believe that there exists in any building or upon any premises subject to this Article a condition that constitutes a violation of this Code,including this Article, the Fire Chief, upon notice to the Owner or Operator,may enter such building or premises at all reasonable times to inspect the building or premises or to perform any duty imposed upon the Fire Chief by this Article;provided that if such building or premises is occupied, URE Last Updated il7asch 2014 INATJ Stfikethfoughs to be removed Underlines to be added he/she shall first present proper credentials and request entry, and if the building or premises be unoccupied,he/she shall first make a reasonable effort to locate the Owner or other person having charge or control of the building or premises and request entry. The Owner of the premises shall notify Tenants of the time and purpose of the inspection. The Tenant shall make the premises accessible to the Fire Chief. If such entry is refused, the Fire Chief shall have recourse to every remedy provided by law to secure entry. The notice requirements of this Section shall not apply if the Fire Chief has reasonable cause to believe that a violation of the requirements of this Article is creating a Major Life/Safety Issue which must be addressed without delay. Sec. 30-172. - Appeals. When a person to whom a compliance order is directed by the Fire Chief alleges that such compliance order is based upon an erroneous interpretation of this Article or upon a misstatement or mistake of fact, such person may appeal the order as set forth in Article VI,Division 2, subdivision II of this Chapter. Sec. 30-173. - Inspections. (a) Generally. All buildings or structures within the scope of this Article, and all construction or work for which a permit is required, shall be subject to inspection by the building official in accordance with and in the manner provided by this Article and the Building Code. (b) Response to complaints. The Fire Chief shall respond to Valid Complaints of violations of this Article. A Valid Complaint may be cause for a complete inspection of a unit or building. If an inspection is to be made, the Fire Chief shall notify the Owner/Tenant of the inspection. If there are violations, the Fire Chief shall notify the Owner/Tenant to correct the problem which prompted the Valid Complaint. An Owner may request an advisory inspection of a unit. Sec. 30-174. - Inspection fee. Inspection fees under this Article shall be as established by resolution. The inspection fee shall apply to all inspections other than the initial license inspection, to follow up for corrections. Secs. 30-175-30-190. - Reserved. DIVISION 3. - RENTAL DWELLING LICENSE AND REQUIREMENTS Sec. 30-191. - License Required. (a) License. No person,firm, or corporation shall operate a Rental Dwelling unit without first having obtained a Rental Dwelling License to do so from the City as provided for in this Article. Each Rental Dwelling License shall be issued annually and expire one year after its issuance. Rental Dwelling License renewal applications for the URE Last Updated il7asch 2014 INATJ Stfikethfoughs to be removed Underlines to be added following year shall be filed on or before thirty (30) days prior to the expiration of the then current license. Sixty (60) days prior to the expiration of a Rental Dwelling License, the City shall notify the Operator of the upcoming renewal deadline within which to file the Rental Dwelling License renewal application. (b) Exceptions from rental licensing. (1) Rental property which is licensed as a Nursing Home or Boarding Care home by the State of Minnesota Department of Health shall be exempt from the license required under this Article. This exception shall not apply if no services are provided to the Tenants,or the services are incidental to,or independent of, the landlord/Tenant relationship. Notwithstanding the licensure requirements of such facilities, said facilities must register with the City. (2) State licensed residential facilities. Notwithstanding the licensure requirements of such facilities, said facilities must register with the City. (3) A single family dwelling or a dwelling unit in a duplex occupied by the Owner for a minimum of six (6) consecutive months per calendar year. (4) A residential property owned by a 'snowbird'where the property is rented to another person for a period of less than 120 consecutive days while the Owner is residing out of the State of Minnesota. The Owner must occupy the property during the remainder of the year. (5) A single family residential property that has been sold on a contract for deed or has been sold as "rent to own" so long as the purchaser occupies the property and the sale document used to memorialize the sale is in the form of a uniform conveyancing blank or is recorded with the Sherburne County Recorder's office and a copy is provided to the City upon request. (6) A single family residential property that is occupied by the Owner and two or fewer Tenants where the Owner and the Tenants share all living space within the dwelling. (7) Single family residential property that is owned by a member of the armed services who is on active duty and the property is rented to another person during the time of active duty. The Owner must provide the City with a copy of the Owner's military orders upon request, and must occupy the property when not on active duty as the Owner's primary residence. Sec. 30-192. - Application for License. (a) The Owner or the Owner's Agent shall submit a written application for a Rental Dwelling License on forms provided by the City. URE Last Updated il7asch 2014 INATJ Stfikethfoughs to be removed Underlines to be added (b) Prior to issuance or renewal of a Rental Dwelling License, the following information shall be submitted: (1) Name, address and phone number of the Owner. (2) Name, address and phone number of the property manager if different from the Owner. (3) Name, address and phone number of the Agent. (4) The street address and property identification number of the property. (5) Description of the number of units and number of bedrooms in each unit offered for rent. (6) An acknowledgement that the Owner or Agent has received a copy of this Ordinance. (7) A description of the procedure through which Tenant inquiries and complaints are to be processed. (8) Certification to the City that there are no delinquent utility fees due upon the parcel of land to which the Rental Dwelling License application relates. (9) A blank copy of any written lease to be used for Tenants including the following lease addendums: a. Crime Free/Drug Free Addendum. b. Lead Free informational materials for pre-1978 properties, including all information as may be required by Federal law. Section 30-193. - Agent Required. Any Owner who does not live in the state shall appoint, on the Rental Dwelling License application, an Agent residing within fifty (50) miles of the Rental Dwelling upon whom the City may serve notices pertaining to the licensed Rental Dwelling. Section 30-194. - Initial License Issuance. No Rental Dwelling License shall be issued under this Ordinance unless the Rental Dwelling and its premises conform to the Ordinances of the City and laws of the State. An inspection of the Rental Dwelling shall be conducted prior to issuance of an initial Rental Dwelling License. Section 30-195. - Fee. URE Last Updated il7asch 2014 INATJ Stfikethfoughs to be removed Underlines to be added To obtain a Rental Dwelling License required by the provisions of this Division, a person shall pay to the City the fee established by resolution. Section 30-196. - Renewal of License. (a) All renewed and new Rental Dwelling Licenses shall be valid for a period of up to one (1) year. (b) All Rental Dwelling License renewal applications and required fees shall be submitted to the City on an annual basis and prior to the issuance of a renewed Rental Dwelling License. (c) Information on the Rental Dwelling License renewal form must be updated to reflect current conditions. (d) No Rental Dwelling License shall be renewed under this Ordinance unless the Rental Dwelling and its premises conform to the Ordinances of the City and laws of the State. An inspection of the Rental Dwelling may be conducted prior to issuance of a renewed Rental Dwelling License. Section 30-197. - Transfer of License. A Rental Dwelling License is nontransferable and shall automatically terminate within thirty(30) days of closing on the sale of the licensed building unless,within thirty(30) days of said closing,the new Owner applies for and is granted a Rental Dwelling License for said building in accordance with this Article. Section 30-198. - Inspections of Rental Dwellings —generally. (a) New licenses. Upon receipt of a properly executed new application for a Rental Dwelling License and receipt of the appropriate fee,the Fire Chief shall conduct an initial inspection of the premises to assure compliance with the City Code. (b) License renewal. Any Rental Dwelling may be re-inspected after a renewal application is filed to determine compliance. The Fire Chief, at his/her discretion,may determine that a renewal inspection of a premise may be deferred based on results of previous inspections,in conjunction with criteria and processes as established by the Fire Chief and approved by the City Administrator. Previous inspections must indicate the premise (1) has not received notice of City Code violations for property maintenance; (2) meets or exceeds rental compliance criteria; and (3) has not required corrections for Major Life/Safety Issues. (c) Additional inspections. The City may inspect any Rental Dwelling if it falls within one or more of the following criteria: (1) The Rental Dwelling has been abandoned by the Owner or the Owner cannot be found. URE Last Updated il7asch 2014 INATJ Stfikethfoughs to be removed Underlines to be added (2) Water,gas, or electric services to such Rental Dwelling has been discontinued as a result of nonpayment for more than thirty (30) continuous days. (3) The Rental Dwelling is on a parcel of land that is on the County's delinquent tax list. (4) The City has probable cause to believe that there exists within such Rental Dwelling one or more violations of the requirements of this Article. (5) The Owner has,within the preceding six (6) months,renewed a Rental Dwelling License after suspension or revocation. (6) The Rental Dwelling is the sub)ect of a pending notice of the City's intent to suspend or revoke the Rental Dwelling License. (7) A Tenant or neighboring property owner files a formal complaint with the City relative to the condition of the Rental Dwelling or premises. (d) Access for Inspections. (1) The Fire Chief shall be authorized to make or cause to be made inspections to determine the condition of Rental Dwellings and premises in order to safeguard the health, safety,morals,and welfare of the public. (2) The Fire Chief shall be authorized to enter any Rental Dwelling or premises at any reasonable time for the purpose of performing his/her duties under this Article. (3) The Owner,Operator,or Tenant of every Rental Dwelling and premises,or the person in charge thereof, shall give the Fire Chief free access to such Rental Dwelling and premises on which it is located at all reasonable times for the purpose of such inspection,examination, and survey. (e) Refusal of access for inspection. If the Owner, Operator,person in charge, or Tenant shall refuse to consent to the inspection, an administrative search warrant may be obtained: (1) Where there is probable cause to believe a violation exists within the particular structure; or (2) Where a determination has been made to conduct periodic inspections of certain areas of the City to assure ongoing compliance with this Article relative to Mayor Life/Safety Issues. (t) Emergency Conditions. No administrative search warrant is needed where an emergency condition exists which endangers persons or property and insufficient URE Last Updated il7asch 2014 INATJ Stfikethfoughs to be removed Underlines to be added time is available to obtain the warrant and protect such endangered persons or property. (g) Sub)ect to Tenant's Right to Privacy. Entry under this Section is sub)ect to Minnesota Statutes, Section 50413.211 (Residential Tenant's Right to Privacy) as amended. (g) Costs of Obtaining Warrant. If the City finds it necessary to obtain an administrative search warrant to enter the property for inspection due to the Owner, Operator,person in charge,or Tenant's lack of cooperation, said person or persons may also be charged with all costs of obtaining the warrant,including court costs and attorney's fees. Section 30-199. - License Suspension, Revocation, Denial and Non-Renewal. (a) Process for consideration of license suspension,revocation,denial or non-renewal. (1) No action will be taken by the City Council to revoke, suspend, deny, or not renew a Rental Dwelling License without a public hearing and written notice of that hearing is sent to the Owner and affected Tenants a minimum of ten (10) days prior to the hearing. (2) The City Council shall give due regard to the frequency and seriousness of the violations, the ease with which such violations could have been cured or avoided and good faith efforts to comply. (3) The City Council shall issue a decision to revoke, suspend, deny or not renew a Rental Dwelling License only upon written findings. (4) Upon a decision to revoke, suspend,deny or not renew a license,no new application for the same facility will be accepted for a period of time specified in the City Council's written decision,not exceeding one (1) year. Such new applications shall be accompanied by a reinstatement fee as required by this Article. (5) The City Council may suspend, revoke, deny or not renew a license for part or all of a facility. (6) A written decision to revoke, suspend,deny or not renew a Rental Dwelling License or application for part of a facility shall specify the part or parts of the facility to which it applies.Thereafter,and until a Rental Dwelling License is reissued or reinstated,no Rental Dwellings becoming vacant in such part or parts of the facility may be re-let or occupied. a. Revocation, suspension, denial or non-renewal of a Rental Dwelling License shall not excuse the Owner from compliance with all terms of this Article for as long as any units in the facility are occupied. URE Last Updated il7asch 2014 INATJ Stfikethfoughs to be removed Underlines to be added b. Failure to comply with all terms of this Article during the term of revocation, suspension,denial or non-renewal is a misdemeanor and grounds for extension of the term of such revocation or suspension or continuation of non-renewal,or for a decision not to reinstate the license,notwithstanding any limitations on the period of suspension, revocation,denial or non-renewal specified in the City Council's written decision. (b) Suspension. 1. The City Council may suspend a Rental Dwelling License under the following circumstances: a. Failure to correct deficiencies noted in notices of violation within the time specified in the notice. b. Failure to pay any Rental Dwelling License,inspection or reinstatement fee required by this Article. C. Any other violation of the Building Code or the property maintenance, zoning,environmental or utility chapters of the City Code. d. Any specific provisions of the City Ordinances that include suspension as a remedy (i.e. nuisance calls, etc.). 2. Additional standards related to suspension of a Rental Dwelling License: a. A reinstatement fee as established by the City Council shall be paid prior to reinstatement of a Rental Dwelling License that has been suspended. b. In addition to the reinstatement fee, the City may issue a citation for the applicable violations. C. While under suspension, the Owner cannot lease the affected unit and/or facility to a new Tenant. d. The suspension shall be for a period of up to six (6) months unless otherwise regulated by this Article. (c) Revocation. 1. The City Council may revoke a Rental Dwelling License under the following circumstances: a. When an Owner has not complied with reinstatement criteria. URE Last Updated il7asch 2014 INATJ Stfikethfoughs to be removed Underlines to be added a. When it is found that an Owner has given false statements on any application or other information or report required by this Article to be given by the applicant or Owner. b. When it has been determined through an inspection that Major Life/Safety Issues exist on the property. C. When the Owner or Agent has been convicted of a crime related to the type of business licensed and failure to show,by competent evidence,rehabilitation and present fitness to perform the duties of the business. d. Operating or allowing the rental property to be used in such a manner as to constitute a breach of the peace, a menace to health, safety, and welfare of the public or a disturbance of the peace or comfort of the residents of the City,upon recommendation by the Police Chief. e. Failure to schedule and/or allow rental or building inspections of the licensed premises, for the purpose of ensuring compliance with Rental Dwelling License requirements, City Code requirements, State building codes, or other applicable State or Federal law. f Real estate or personal property taxes on the business have become delinquent and the Owner and the applicant are the same person or entity, or have any common ownership where they are a different person or entity. g. Failure to actively pursue the eviction of Tenants who have violated the provisions of the Crime Free Lease Addendum. h. Any specific provisions of the City Ordinances that include revocation as a remedy (i.e. nuisance calls, etc.). i. Other good cause as determined by the City Council. 2. Additional standards related to revocation of a Rental Dwelling License: a. A reinstatement fee as established by the City Council shall be paid prior to reinstatement of a Rental Dwelling License that has been revoked. b. In addition to the reinstatement fee, the City may issue a citation for the applicable violations. URE Last Updated il7asch 2014 INATJ Stfikethfoughs to be removed Underlines to be added C. While under revocation, the Owner cannot extend the lease of an existing Tenant and cannot lease the affected unit to a new Tenant. d. The revocation shall be for a period of up to one (1) year. Section 30-200. - Display of License; Fees. Rental Dwelling Licenses issued under this Article must be conspicuously posted in a frame with a transparent cover in a public corridor or front entrance of Rental Dwellings with four or more units. All Owners must produce a copy of the Rental Dwelling License upon demand of a prospective Tenant or City official. (a) License Fees. (1) Fees Established and Due Date. Rental Dwelling License fees and reinstatement fees shall be set by the City Council and shall be due with submission of a new or renewal application. (2) Filing Due Date and Penalty. If a renewal application is made less than thirty (30) days before the beginning date of the renewal license period applied for, then the fee shall be accompanied by an additional amount equal to one hundred percent (100%) of such license fee.The additional amount shall be a penalty for a late application. In no case shall there be a lapse in the Rental Dwelling License period. (b) Reinspection Fees. (1) An initial inspection shall be required at the time of application, the cost of which shall be included in the Rental Dwelling License application fee. Any re-inspections to verify compliance with a previously noted violation will be conducted at no charge if all violations have been remedied. If violations remain;inspections are necessitated by a valid complaint; or subsequent re- inspections are necessitated as a result of a previous unsatisfactory inspection, a fee, as set by the City Council, may be charged. (2) The reinspection fee shall be billed directly to the Owner. Reinspection fees shall be increased by fifty percent (50%) to cover administrative costs if not paid within thirty (30) days after initial billing. (3) The City Administrator,with the recommendation of the Fire Chief, shall have the authority and discretion to waive re-inspection fees. URE Last Updated il7asch 2014 INATJ Stfikethfoughs to be removed Underlines to be added Section 30-201. - Conversion of a Single-Family Residential Property From Owner- Occupied to Rental. Conversion Fee. A one-time fee,in addition to the annual Rental Dwelling License fee,will be charged for a single family dwelling or single family attached dwelling (townhouse) that is converted from owner-occupied to rental property. Section 30-202. - Reserved. Section 30-203. - Trash Removal for Rental Properties. (a) Rental properties must have regularly scheduled recycling and trash pick-up. (b) If the trash and/or recycling has not been removed within seven (7) days of the normally scheduled pick-up,the trash may be removed by the City under emergency abatement procedures. (c) If the lack of trash and/or recycling removal becomes a recurring problem,refuse service will be authorized by the City and will be assessed on the property's utility bill. Section 30-204. - No Retaliation. No Owner shall evict,threaten to evict,or take any other punitive action against any Tenant who,by reason of good faith,calls City officials related to public safety or property maintenance concerns. This Section shall not prohibit the eviction of Tenants from a Rental Dwelling for unlawful conduct of a Tenant or invitee for violations of any rules,regulations,or lease terms other than a prohibition against contacting City officials. Section 30-205. - Summary Action. When the conduct of any Owner or their Agent,representative, employee or Tenant or the condition of their Rental Dwelling is detrimental to the public health, safety and general welfare as to constitute a nuisance, fire hazard, or other unsafe or dangerous condition and thus give rise to an emergency, the City shall have the authority to summarily condemn or post for no occupancy such area of the Rental Dwelling. Section 30-206. Severability Clause. If any Section, subsection, sentence,clause or phrase of this Article is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Article. Section 30-207. Violations and Penalties. Any person violating any provision of this Article is guilty of a misdemeanor and upon conviction shall be subject to the penalties as set forth in Minnesota Statutes. Sections 30-208 through 30-220. - Reserved. URE Last Updated il7asch 2014 INATJ Stfikethfoughs to be removed Underlines to be added SECTION 2. The language and content of the current Chapter 30,Article III,Divisions 4 is hereby moved to Chapter 30,Article II,Division 3, of the Elk River City Code. SECTION 3. The language and content of the current Chapter 30,Article III,Divisions 5 is hereby moved to Chapter 30,Article II,Division 4, of the Elk River City Code. SECTION 4. That this ordinance shall take effect upon adoption and be published as provided by law. Passed and adopted by the City Council of the City of Elk River this 6th day of June,2016. John J. Dietz,Mayor ATTEST: Tina Allard, City Clerk URE Last Updated il7asch 2014 INATI City of Elk River Resolution 16- A Resolution of the City of Elk River Approving Notice of Summary Publication of Ordinance #16- , An Ordinance Repealing Chapter 30, Article III, Divisions I, IA, 2, and 3 and Replacing it with a New Ordinance Regarding Residential Rental Property Standards, and moving Chapter 30, Article III, Divisions 4 and 5 to Chapter 30, Article II as Divisions 3 and 4, respectively, the City of Elk River, Minnesota, City Code WHEREAS, on June 6, 2016, the Elk River City Council adopted Ordinance 16- , which repealed Chapter 30,Article III,Divisions 1, 1A, 2, and 3,replacing it with a New Ordinance Regarding Residential Rental Property Standards, and Moving Chapter 30,Article III,Divisions 4 and 5 to Chapter 30,Article II as Divisions 3 and 4,respectively. The Residential Rental Properties Standards Ordinance establishes that the operation of residential rental properties is a business enterprise that gives rise to certain responsibilities. Operators are responsible to take reasonable steps, as may be necessary, to assure that the citizens of the City who occupy such units, and those residing near such units,may pursue the quiet enjoyment of the normal activities of life in surroundings that are: (a) Safe, secure and sanitary; (b) Free from crimes and criminal activity,noise,nuisances or annoyances; and (c) Free from reasonable fears about safety of persons and security of property. Further,it is the intent of this Article to regulate and provide for the inspections of Rental Dwellings to assure that such housing does not become a nuisance or blight to the neighborhood and does not create a disincentive to investment in the community. WHEREAS, a copy of the full text of the ordinance is available for inspection by any person at the office of the Elk River City Clerk, 13065 Orono Parkway NW, during regular business hours. Passed and adopted this 61h day of June 2016. John J. Dietz,Mayor ATTEST: Tina Allard, City NATUREJ EGty1� ,.,�� Request for Action River To Item Number Mayor and City Council 9.5 Agenda Section Meeting Date Prepared by Work Session Aril 18, 2016 T.John Cunningham, Fire Chief Item Description Reviewed by Rental Dwelling Ordinance Scott Baumgartner, City Prosecutor Peter Beck, City Attorney Reviewed by Cal Portner, City Administrator Action Requested Review and comment on revised ordinance pertaining to rental dwelling property standards. Background/Discussion In 1996, the City Council adopted an ordinance pertaining to the inspection and licensing of rental dwellings in the city. Over the past year, staff and the city's attorneys have reviewed the existing ordinance,which included an analysis of rental programs/ordinances in other cities, case law and court rulings, and applicability of the existing ordinance to modern-day Elk River. The result of this review was a recommendation to bring forward a new ordinance that is much more thorough. Staff will present a summary of the changes and is looking for feedback. A final version of the updated ordinance will be brought back at a later meeting for adoption. Financial Impact None. Any proposed changes to the fee schedule will be brought back at a later date for consideration. Attachments ■ Recommended (new) ordinance ■ Existing ordinance POWERED 6T Template Updoted 4/14 INAMIRE1 Revised Ordinance CHAPTER 30-LAND DEVELOPMENT REGULATION ARTICLE III-RESIDENTIAL RENTAL PROPERTY STANDARDS DIVISION 1.- GENERALLY Sec. 30-151.-Purpose and Intent. (a) Purpose. The operation of residential rental properties is a business enterprise that gives rise to certain responsibilities. Operators are responsible to take reasonable steps, as may be necessary,to assure that the citizens of the City who occupy such units, and those residing near such units, may pursue the quiet enjoyment of the normal activities of life in surroundings that are: (1) Safe,secure and sanitary; (2) Free from crimes and criminal activity,noise,nuisances or annoyances; and (3) Free from reasonable fears about safety of persons and security of property. Further,it is the intent of this Article to regulate and provide for the inspections of Rental Dwellings to assure that such housing does not become a nuisance or blight to the neighborhood and does not create a disincentive to investment in the community. Sec.30-152.-Scope of Article. (a) Generally. The provisions of this Article shall apply to all buildings or portions thereof used, or designed, or intended to be used, for residential rental purposes. (b) Combination apartment house-hotels. Where any building or portion thereof is used or intended to be used as a combination apartment house-hotel, the provisions of this Article shall apply to the separate portions as if they were separate buildings. (c) Roominghouses and lodginghouses. Every roominghouse or lodginghouse shall comply with all the requirements of this Article for Rental Dwellings. (d) Additions, alterations or repairs. For additions, alterations, or repairs, see the building code. (e) Relocation of buildings. Buildings or structures moved into or within the City shall comply with the requirements in this Code and the building code for new buildings and structures. (f) Continuation of existing use. Rental Dwellings in existence at the time of adoption of the ordinance from which this Article is derived may have their existing use or occupancy continued if such use or occupancy was legal at the time of adoption of the ordinance from which this Article is derived,provided such continued use complies with and is subject to the terms of this Article. Revised Ordinance Sec. 30-153. - Definitions. The following definitions, and those contained in Section 30-1,will be used in interpreting and enforcing this Article. Agent. A person designated by the Owner of a Rental Dwelling to act on behalf of the Owner. City. The City of Elk River, Minnesota. Disorderly conduct. Disorderly Conduct shall be as defined by Minnesota Statutes, Section 609.72(Disorderly Conduct)as amended. Major Life/Safety Issues. Hazardous conditions that,in the judgment of the Fire Chief or other code enforcement official,pose an imminent risk to the life and safety of Tenants and other occupants. Nuisance call. Any instance where law enforcement officers are called to a property in response to a valid complaint related to disorderly conduct. Tenant. Any person, excluding the Owner or Operator,living in a Rental Dwelling. Valid complaint. A violation that is visible at the time of inspection or proven by credible, substantial evidence to the satisfaction of the City. Wherever the terms "dwelling," "dwelling unit," "premises," and"structure," are used in this Article,they shall be construed as though they were followed by the words"or any part thereof'. DIVISION IA.-INTERNATIONAL PROPERTY MAINTENANCE CODE. Sec.30-154. -Property maintenance code. The 2012 version of the International Property Maintenance Code, three copies of which are on file in the office of the City Clerk of the City of Elk River, being marked and designated as the International Property Maintenance Code as published by the International Code Council, Inc., is adopted as the property maintenance code of the City for the purposes of this Article relative to the control of buildings and structures as herein provided; and each and all of the regulations,provisions,penalties, conditions and terms of said property maintenance code are hereby referred to, adopted, and made a part hereof, as if fully set out in this Article, with the additions, insertions, deletions and changes, if any,prescribed in Section 30-155 of this Division. Sec.30-155. -Revisions to the International Property Maintenance Code. The following Sections of the International Property Maintenance Code are hereby revised: Section 101.1. Insert: City of Elk River Section 103.5. Insert: The current year fee schedule adopted by the City Council Section 302.4. Insert: 8 inches Section 602.3. Insert: October 15 to April 15 Section 602.4. Insert: October 15 to April 15 Revised Ordinance Sec.30-156. -Conflict between codes. Where there is any conflict between the provisions of the International Property Maintenance Code and any other applicable code or ordinance enforced by or in the City of Elk River, the more restrictive provisions shall apply. Secs.30-157-30-170.-Reserved. DIVISION 2.–ADMINISTRATION AND ENFORCEMENT Sec.30-171.-Authority of Fire Chief; right of entry. (a) The Fire Chief is hereby authorized and directed to provide for the enforcement of all provisions of this Article. The Fire Chief shall have the power to render interpretations of this Article and to adopt procedures as he/she may deem necessary in order to apply the provisions of this Article. Such interpretations and procedures shall be in conformity with the intent and purpose of this Article. (b) Whenever necessary to make an inspection to enforce any of the provisions of this Article, or whenever the Fire Chief has reasonable cause to believe that there exists in any building or upon any premises subject to this Article a condition that constitutes a violation of this Code,including this Article, the Fire Chief,upon notice to the Owner or Operator, may enter such building or premises at all reasonable times to inspect the building or premises or to perform any duty imposed upon the Fire Chief by this Article;provided that if such building or premises is occupied,he/she shall first present proper credentials and request entry, and if the building or premises be unoccupied, he/she shall first make a reasonable effort to locate the Owner or other person having charge or control of the building or premises and request entry. The Owner of the premises shall notify Tenants of the time and purpose of the inspection. The Tenant shall make the premises accessible to the Fire Chief. If such entry is refused, the Fire Chief shall have recourse to every remedy provided by law to secure entry. The notice requirements of this Section shall not apply if the Fire Chief has reasonable cause to believe that a violation of the requirements of this Article is creating a Major Life/Safety Issue which must be addressed without delay. Sec.30-172.-Appeals. When a person to whom a compliance order is directed by the Fire Chief alleges that such compliance order is based upon an erroneous interpretation of this Article or upon a misstatement or mistake of fact, such person may appeal the order as set forth in Article VI, Division 2, subdivision II of this Chapter. Sec.30-173.-Inspections. (a) Generally. All buildings or structures within the scope of this Article, and all construction or work for which a permit is required, shall be subject to inspection by the building official in accordance with and in the manner provided by this Article and the Building Code. Revised Ordinance (b) Response to complaints. The Fire Chief shall respond to Valid Complaints of violations of this Article. A Valid Complaint may be cause for a complete inspection of a unit or building. If an inspection is to be made,the Fire Chief shall notify the Owner/Tenant of the inspection. If there are violations,the Fire Chief shall notify the Owner/Tenant to correct the problem which prompted the Valid Complaint. An Owner may request an advisory inspection of a unit. Sec.30-174.-Inspection fee. Inspection fees under this Article shall be as established by resolution. The inspection fee shall apply to all inspections other than the initial license inspection, to follow up for corrections. Secs.30-175-30-190.-Reserved. DIVISION 3.-RENTAL DWELLING LICENSE AND REQUIREMENTS Sec. 30-191. -License Required. (a) License. No person,firm or corporation shall operate a Rental Dwelling unit without first having obtained a Rental Dwelling License to do so from the City as provided for in this Article. Each Rental Dwelling License shall be issued annually and expire one year after its issuance. Rental Dwelling License renewal applications for the following year shall be filed on or before thirty (30) days prior to the expiration of the then current license. Sixty (60) days prior to the expiration of a Rental Dwelling License, the City shall notify the Operator of the upcoming renewal deadline within which to file the Rental Dwelling License renewal application. (b) Exceptions from rental licensing. (1) Rental property which is licensed as a Nursing Home or Boarding Care home by the State of Minnesota Department of Health shall be exempt from the license required under this Article. This exception shall not apply if no services are provided to the Tenants, or the services are incidental to,or independent of,the landlord/Tenant relationship. Notwithstanding the licensure requirements of such facilities,said facilities must register with the City. (2) State licensed residential facilities.Notwithstanding the licensure requirements of such facilities, said facilities must register with the City. (3) A single family dwelling or a dwelling unit in a duplex occupied by the Owner for a minimum of six(6)consecutive months per calendar year. (4) A residential property owned by a'snowbird'where the property is rented to another person for a period of less than 120 consecutive days while the Owner is residing out of the State of Minnesota. The Owner must occupy the property during the remainder of the year. (5) A single family residential property that has been sold on a contract for deed or has been sold as "rent to own" so long as the purchaser occupies the property and the sale document used to memorialize the sale is in the form of a uniform conveyancing blank or is recorded with the Sherburne County Recorder's office and a copy is provided to the City upon request. Revised Ordinance (6) A single family residential property that is occupied by the Owner and two or fewer Tenants where the Owner and the Tenants share all living space within the dwelling. (7) Single family residential property that is owned by a member of the armed services who is on active duty and the property is rented to another person during the time of active duty. The Owner must provide the City with a copy of the Owner's military orders upon request, and must occupy the property when not on active duty as the Owner's primary residence. Sec. 30-192. -Application for License. (a) The Owner or the Owner's Agent shall submit a written application for a Rental Dwelling License on forms provided by the City. (b) Prior to issuance or renewal of a Rental Dwelling License, the following information shall be submitted: (1) Name, address and phone number of the Owner. (2) Name, address and phone number of the property manager if different from the Owner. (3) Name, address and phone number of the Agent. (4) The street address and property identification number of the property. (5) Description of the number of units and number of bedrooms in each unit offered for rent. (6) An acknowledgement that the Owner or Agent has received a copy of this Ordinance. (7) A description of the procedure through which Tenant inquiries and complaints are to be processed. (8) Certification to the City that there are no delinquent utility fees due upon the parcel of land to which the Rental Dwelling License application relates. (9) A blank copy of any written lease to be used for Tenants including the following lease addendums: a. Crime Free/Drug Free Addendum. b. Lead Free informational materials for pre-1978 properties, including all information as may be required by Federal law. Section 30-193. Agent Required. Any Owner who does not live in the state shall appoint, on the Rental Dwelling License application, an Agent residing within fifty (50)miles of the Rental Dwelling upon whom the City may serve notices pertaining to the licensed Rental Dwelling. Section 30-194. Initial License Issuance. No Rental Dwelling License shall be issued under this Ordinance unless the Rental Dwelling and its premises conform to the Ordinances of the City and laws of the State. An inspection of the Rental Dwelling shall be conducted prior to issuance of an initial Rental Dwelling License. Revised Ordinance Section 30-195. Fee. To obtain a Rental Dwelling License required by the provisions of this Division, a person shall pay to the City the fee established by resolution. Section 30-196. Renewal of License. (a) All renewed and new Rental Dwelling Licenses shall be valid for a period of up to one(1)year. (b) All Rental Dwelling License renewal applications and required fees shall be submitted to the City on an annual basis and prior to the issuance of a renewed Rental Dwelling License. (c) Information on the Rental Dwelling License renewal form must be updated to reflect current conditions. (d) No Rental Dwelling License shall be renewed under this Ordinance unless the Rental Dwelling and its premises conform to the Ordinances of the City and laws of the State. An inspection of the Rental Dwelling may be conducted prior to issuance of a renewed Rental Dwelling License. Section 30-197. Transfer of License. A Rental Dwelling License is nontransferable and shall automatically terminate within thirty (30)days of closing on the sale of the licensed building unless,within thirty(30)days of said closing,the new Owner applies for and is granted a Rental Dwelling License for said building in accordance with this Article. Section 30-198. Inspections of Rental Dwellings—generally. (a) New licenses.Upon receipt of a properly executed new application for a Rental Dwelling License and receipt of the appropriate fee, the Fire Chief shall conduct an initial inspection of the premises to assure compliance with the City Code. (b) License renewal. Any Rental Dwelling may be re-inspected after a renewal application is filed to determine compliance. The Fire Chief, at his/her discretion,may determine that a renewal inspection of a premise may be deferred based on results of previous inspections,in conjunction with criteria and processes as established by the Fire Chief and approved by the City Administrator.Previous inspections must indicate the premise(1)has not received notice of City Code violations for property maintenance; (2)meets or exceeds rental compliance criteria; and(3)has not required corrections for Major Life/Safety Issues. (c) Additional inspections. The City may inspect any Rental Dwelling if it falls within one or more of the following criteria: (1) The Rental Dwelling has been abandoned by the Owner or the Owner cannot be found. (2) Water,gas, or electric services to such Rental Dwelling has been discontinued as a result of nonpayment for more than thirty (30) continuous days. (3) The Rental Dwelling is on a parcel of land that is on the County's delinquent tax list. (4) The City has probable cause to believe that there exists within such Rental Dwelling one or more violations of the requirements of this Article. Revised Ordinance (5) The Owner has,within the preceding six (6)months,renewed a Rental Dwelling License after suspension or revocation. (6) The Rental Dwelling is the subject of a pending notice of the City's intent to suspend or revoke the Rental Dwelling License. (7) A Tenant or neighboring property owner files a formal complaint with the City relative to the condition of the Rental Dwelling or premises. (d) Access for Inspections. (1) The Fire Chief shall be authorized to make or cause to be made inspections to determine the condition of Rental Dwellings and premises in order to safeguard the health,safety,morals,and welfare of the public. (2) The Fire Chief shall be authorized to enter any Rental Dwelling or premises at any reasonable time for the purpose of performing his/her duties under this Article. (3) The Owner, Operator, or Tenant of every Rental Dwelling and premises, or the person in charge thereof, shall give the Fire Chief free access to such Rental Dwelling and premises on which it is located at all reasonable times for the purpose of such inspection, examination and survey. (e) Refusal of access for inspection. If the Owner, Operator,person in charge, or Tenant shall refuse to consent to the inspection, an administrative search warrant may be obtained: (1) Where there is probable cause to believe a violation exists within the particular structure; or (2) Where a determination has been made to conduct periodic inspections of certain areas of the City to assure ongoing compliance with this Article relative to Major Life/Safety Issues. (f) Emergency Conditions.No administrative search warrant is needed where an emergency condition exists which endangers persons or property and insufficient time is available to obtain the warrant and protect such endangered persons or property. (g) Subject to Tenant's Right to Privacy. Entry under this Section is subject to Minnesota Statutes, Section 50413.211 (Residential Tenant's Right to Privacy) as amended. (h) Costs of Obtaining Warrant. If the City finds it necessary to obtain an administrative search warrant to enter the property for inspection due to the Owner, Operator,person in charge, or Tenant's lack of cooperation, said person or persons may also be charged with all costs of obtaining the warrant,including court costs and attorney's fees. Section 30-199. License Suspension, Revocation,Denial and Non-Renewal. (a) Process for consideration of license suspension,revocation, denial or non- renewal. (1) No action will be taken by the City Council to revoke, suspend, deny, or not renew a Rental Dwelling License without a public hearing and written notice of that hearing is sent to the Owner and affected Tenants a minimum of ten(10) days prior to the hearing. Revised Ordinance (2) The City Council shall give due regard to the frequency and seriousness of the violations,the ease with which such violations could have been cured or avoided and good faith efforts to comply. (3) The City Council shall issue a decision to revoke, sus end, deny or not renew a Rental Dwelling License only upon written findings. (4) Upon a decision to revoke, suspend,deny or not renew a license,no new application for the same facility will be accepted for a period of time specified in the City Council's written decision,not exceeding one(1) year. Such new applications shall be accompanied by a reinstatement fee as required by this Article. (5) The City Council may suspend, revoke, deny or not renew a license for part or all of a facility. (6) A written decision to revoke, suspend,deny or not renew a Rental Dwelling License or application for part of a facility shall specify the part or parts of the facility to which it applies. Thereafter, and until a Rental Dwelling License is reissued or reinstated,no Rental Dwellings becoming vacant in such part or parts of the facility may be re-let or occupied. a. Revocation, suspension, denial or non-renewal of a Rental Dwelling License shall not excuse the Owner from compliance with all terms of this Article for as long as any units in the facility are occupied. b. Failure to comply with all terms of this Article during the term of revocation,suspension,denial or non-renewal is a misdemeanor and grounds for extension of the term of such revocation or suspension or continuation of non-renewal,or for a decision not to reinstate the license,notwithstanding any limitations on the period of suspension,revocation,denial or non-renewal specified in the City Council's written decision. (b) Suspension. I. The City Council may suspend a Rental Dwelling License under the following circumstances: a. Failure to correct deficiencies noted in notices of violation within the time specified in the notice. b. Failure to pay any Rental Dwelling License,inspection or reinstatement fee required by this Article. C. Any other violation of the Building Code or the property maintenance,zoning,environmental or utility chapters of the City Code. d. Any specific provisions of the City Ordinances that include suspension as a remedy (i.e.nuisance calls, etc.). 2. Additional standards related to suspension of a Rental Dwelling License: a. A reinstatement fee as established by the City Council shall be paid prior to reinstatement of a Rental Dwelling License that has been suspended. b. In addition to the reinstatement fee, the City may issue a citation for the applicable violations. Revised Ordinance C. While under suspension,the Owner cannot lease the affected unit and/or facility to a new Tenant. d. The suspension shall be for a period of up to six (6) months unless otherwise regulated by this Article. (c) Revocation. I. The City Council may revoke a Rental Dwelling License under the following circumstances: a. When an Owner has not complied with reinstatement criteria. b. When it is found that an Owner has given false statements on any application or other information or report required by this Article to be given by the applicant or Owner. C. When it has been determined through an inspection that Major Life/Safety Issues exist on the property. d. When the Owner or Agent has been convicted of a crime related to the type of business licensed and failure to show,by competent evidence,rehabilitation and present fitness to perform the duties of the business. e. Operating or allowing the rental property to be used in such a manner as to constitute a breach of the peace, a menace to health, safety and welfare of the public or a disturbance of the peace or comfort of the residents of the City,upon recommendation by the Police Chief. f. Failure to schedule and/or allow rental or building inspections of the licensed premises, for the purpose of ensuring compliance with Rental Dwelling License requirements, City Code requirements, State building codes, or other applicable State or Federal law. g. Real estate or personal property taxes on the business have become delinquent and the Owner and the applicant are the same person or entity, or have any common ownership where they are a different person or entity. h. Failure to actively pursue the eviction of Tenants who have violated the provisions of the Crime Free Lease Addendum. i. Any specific provisions of the City Ordinances that include revocation as a remedy (i.e.nuisance calls, etc.). j. Other good cause as determined by the City Council. 2. Additional standards related to revocation of a Rental Dwelling License: a. A reinstatement fee as established by the City Council shall be paid prior to reinstatement of a Rental Dwelling License that has been revoked. b. In addition to the reinstatement fee, the City may issue a citation for the applicable violations. Revised Ordinance C. While under revocation,the Owner cannot extend the lease of an existing Tenant and cannot lease the affected unit to a new Tenant. d. The revocation shall be for a period of up to one(1)year. Section 30-200. Display of License; Fees. Rental Dwelling Licenses issued under this Article must be conspicuously posted in a frame with a transparent cover in a public corridor or front entrance of Rental Dwellings with four or more units. All Owners must produce a copy of the Rental Dwelling License upon demand of a prospective Tenant or City official. (a) License Fees. (1) Fees Established and Due Date. Rental Dwelling License fees and reinstatement fees shall be set by the City Council and shall be due with submission of a new or renewal application. (2) Filing Due Date and Penalty. If a renewal application is made less than thirty (30) days before the beginning date of the renewal license period applied for, then the fee shall be accompanied by an additional amount equal to one hundred percent(100%) of such license fee. The additional amount shall be a penalty for a late application. In no case shall there be a lapse in the Rental Dwelling License period. (b) Reinspection Fees. (1) An initial inspection shall be required at the time of application, the cost of which shall be included in the Rental Dwelling License application fee. Any re-inspections to verify compliance with a previously noted violation will be conducted at no charge if all violations have been remedied. If violations remain;inspections are necessitated by a valid complaint; or subsequent re-inspections are necessitated as a result of a previous unsatisfactory inspection, a fee, as set by the City Council, may be charged. (2) The reinspection fee shall be billed directly to the Owner. Reinspection fees shall be increased by fifty percent(50%) to cover administrative costs if not paid within thirty (30) days after initial billing. (3) The Fire Chief shall have the authority and discretion to waive re- inspection fees. Section 30-201. Conversion of a Single-Family Residential Property From Owner- Occupied to Rental. Conversion Fee. A one-time fee,in addition to the annual Rental Dwelling License fee,will be charged for a single family dwelling or single family attached dwelling (townhouse) that is converted from owner-occupied to rental property. A conversion fee will not be required for single-family rentals that are managed by a professional property management company that is licensed by the City. The City must be notified of any change in management during the Rental Dwelling License term. Section 30-202. Repeat Nuisance Fee. During the term of the Rental Dwelling License, and any renewal,whereby nuisance calls related to the property occur in any consecutive twelve(12) month period following the first nuisance call,the following shall apply: (a) After a second police call reporting a nuisance on the property, the Owner will be notified of the calls. Revised Ordinance (b) Upon a third nuisance call, the Owner will be notified by mail,with a copy to the Tenant, and must respond within ten(10) days from the date of the letter with a written report of actions taken to abate further nuisances on the property. If the Owner fails to respond, the Owner will be assessed a nuisance fee. (c) Upon a fourth nuisance call, or if the nuisance fee is not paid from the third call within ten(10) days of being issued, the City Council may consider suspension of the Rental Dwelling License. (1) If the City Council suspends the Rental Dwelling License, the Owner must pay a reinstatement fee as established by the City Council. (2) The suspension may be for a period of up to three(3)months. (d) If another nuisance call occurs,following the action taken in subpart(c), the City Council may consider revocation of the Rental Dwelling License. (1) The revocation may be for a period of up to one(1)year. (e) The nuisance fee shall be as established by the City Council. For purposes of this Section, second, third and subsequent nuisance calls shall be those which: (1) Occur at the same Rental Dwelling; or (2) Involve Tenants at the same Rental Dwelling; or (3) Involve guests or invitees at the same Rental Dwelling; or (4) Involve guests or invitees of the same Tenant; or (5) Involve the same Tenant. (g) Postponing Rental Dwelling License Action. No adverse Rental Dwelling License action shall be imposed where: (1) the nuisance calls occurred during pending eviction proceedings (unlawful detainer) or within thirty (30) days of notice given by the Owner to a Tenant to vacate the Rental Dwelling unit. However, adverse Rental Dwelling License action may proceed when the Owner fails to diligently purse the eviction process; or (2) the calls are placed by a Tenant for police or emergency assistance pursuant to Minnesota Statutes, Section 50413.205 (Residential Tenant's Right to Seek Police and Emergency Assistance) as amended. (h) An action to deny,revoke, suspend, or not renew a Rental Dwelling License based upon a violation of this Section may be postponed or discontinued at any time if it appears that the Owner has taken appropriate measures which will prevent further nuisance calls. Section 30-203. Trash Removal for Rental Properties. (a) Rental properties must have regularly scheduled recycling and trash pick-up. Revised Ordinance (b) If the trash and/or recycling has not been removed within seven(7)days of the normally scheduled pick-up,the trash may be removed by the City under emergency abatement procedures. (c) If the lack of trash and/or recycling removal becomes a recurring problem,refuse service will be authorized by the City and will be assessed on the property's utility bill. Section 30-204. No Retaliation. No Owner shall evict,threaten to evict, or take any other punitive action against any Tenant who,by reason of good faith,calls City officials related to public safety or property maintenance concerns. This Section shall not prohibit the eviction of Tenants from a Rental Dwelling for unlawful conduct of a Tenant or invitee for violations of any rules,regulations,or lease terms other than a prohibition against contacting City officials. Section 30-205. Summary Action. When the conduct of any Owner or their Agent,representative, employee or Tenant or the condition of their Rental Dwelling is detrimental to the public health, safety and general welfare as to constitute a nuisance, fire hazard, or other unsafe or dangerous condition and thus give rise to an emergency,the City shall have the authority to summarily condemn or post for no occupancy such area of the Rental Dwelling. Section 30-206. Severability Clause. If any Section,subsection,sentence, clause or phrase of this Article is for any reason held to be invalid,such decision shall not affect the validity of the remaining portions of this Article. Section 30-207. Violations and Penalties. Any person violating any provision of this Article is guilty of a misdemeanor and upon conviction shall be subject to the penalties as set forth in Minnesota Statutes. Sections 30-208 through 30-220. Reserved. Existing Ordinance DIVISION 3. - RENTAL DWELLING LICENSE Sec. 30-191. - Required. No person shall operate a rental dwelling in the city without having first obtained a license for that dwelling unit from the fire chief If the license is denied, no occupancy of dwelling units then vacant or which become vacant is permitted until a license has been issued. Dwelling units within an unlicensed building for which a license application has been made may be occupied provided that it does not create a hazard to the health and safety of persons in occupied units. (Code 1982, § 1007.06(4)(A); Ord. No. 06-10, 10-2-2006) Sec. 30-192. - Application. (a) The owner of any rental unit within the city shall apply to the fire chief for a rental dwelling license in the manner prescribed in this section. (b) Application shall be made on forms provided by the city and accompanied by a fee in an amount set by resolution of the city council. (c) Applicants shall provide all the information requested on license applications, including but not limited to the following: (1) All owners of rental dwellings shall provide telephone access numbers to be used in emergency situations, including emergency maintenance and repair. This requirement shall be a condition precedent to the issuance of any rental license. (2) The applicant shall provide such other information as the application shall require. (d) Failure to complete, in full, the required license application shall be grounds for denial of the license. (e) No person shall give or submit false information on a license application or any renewal thereof. (Code 1982, § 1007.06(B); Ord. No. 06-10, 10-2-2006) Sec. 30-193. - Inspection of premises. Upon receipt of a properly executed application for a rental dwelling license, the fire chief shall cause an inspection to be made of the premises to ensure that the structure is in compliance with the requirements of this Code, including this article. The owner shall be given notice of this inspection. (Code 1982, § 1007.06(C); Ord. No. 06-10, 10-2-2006) Sec. 30-194. - Issuance. Page 1 Existing Ordinance If the rental dwelling is in compliance with the requirements of this article, a license shall be issued to the present owner or agent of the owner which shall state that the structure has been inspected and is in compliance with the requirements of this article. If the city finds that the circumstances of occupancy following the issuance of the license involve possible Code violations, substandard maintenance or abnormal wear and tear, the city may again inspect the premises as provided by this article. (Code 1982, § 1007.06(D); Ord. No. 06-10, 10-2-2006) Sec. 30-195. - Fee. To obtain a license required by the provisions of this division, a person shall pay to the city the fee established by resolution. (Code 1982, § 1007.06(4)(J); Ord. No. 06-10, 10-2-2006) Sec. 30-196. - Renewal. (a) Each license issued under this division shall be renewed annually with the fire chief. (b) Annual renewal shall be made by filling out the required renewal form and mailing the form together with the required registration fee to the fire chief. Renewal may be approved only when no change in the ownership, operation, agency, or type of occupancy as originally licensed has been made, and where an inspection has been completed and passed within the last calendar year. (Code 1982, § 1007.06(4)(A), (4)(G); Ord. No. 06-10, 10-2-2006; Ord. No. 07-01, 1-16-2007) Sec. 30-197. - Transfer. A license issued under this division is transferable upon application to the fire chief and payment of a license transfer fee by the prospective owner, if the licensed premises are in compliance with this article. The license shall terminate if application for transfer is not made within 30 days after transfer of ownership of the dwelling unit. The amount of the transfer fee shall be set by resolution of the council. (Code 1982, § 1007.06(4)(F); Ord. No. 06-10, 10-2-2006) Sec. 30-198. -Posting. Licenses issued under this division shall be conspicuously displayed on the rental premises wherever feasible. The licensee shall promptly produce the license upon demand of a prospective tenant or the fire chief or his authorized representative. (Code 1982, § 1007.06(4)(E); Ord. No. 06-10, 10-2-2006) Sec. 30-199. - Suspension or revocation. Page 2 Existing Ordinance A license issued or renewed under this division may be revoked or suspended upon finding of noncompliance with the provisions of this Code, including this article. Application for reinstatement of a suspended license shall be accompanied by an amount equal to 50 percent of the new license fee. Issuance of a new license after suspension or revocation shall be made in the manner provided for obtaining an initial license. Revocation and suspension procedures shall be those prescribed in section 38-35. (Code 1982, § 1007.06(4)(I), Ord. No. 06-10, 10-2-2006) Secs. 30-20030-220. - Reserved. Page 3 Rental Dwelling Ordinance City Council June 6, 2016 Previously Presented on April 18, 2016 Ordinance background  Adopted in 1996  Minor revisions and changes (mostly fee structure)  Requirement that all rental dwellings be inspected and licensed (including single family homes)  Program is consistent with other municipalities in Minnesota  International Property Maintenance Code (2012) Statistics  300+ single family rental dwellings registered  147 in 2013  64 multi-unit rental dwellings  1,300+ individual units  2015:  1,700+ rental inspections  $35,274 license fees Ordinance revision (Chapter 30, Article III)  Analysis of existing program, ordinance, and procedures  Recent case law and court rulings  Comparison of other cities  Legal review  Hawkins & Baumgartner, P.A. (prosecutor)  Beck Law Office (city attorney)  Campbell Knutson, P.A. Summary of major changes  Exemptions from rental licensing  Owner-occupied  Snowbirds (rented less than 120 consecutive days)  Contract for deed or sold as “rent to own”  Member of armed services on active duty  Crime/drug free addendum requirement  Agent required on rental properties where owner doesn’t live in the state Summary of major changes, continued  Clarifying renewal process  Renewal inspection exemption process  Provisions for obtaining an administrative search warrant  Provisions for re-inspection fees  Conversion fee Changes since April 18 work session  Defer implementation of repeat nuisance process and fees  Evaluate calls for service (6 months)  Moving two sections (to Article II)  Division 3 (Substandard Buildings)  Division 4 (Dwelling Unit Standards) Actions requested  Adopt, by motion, an ordinance regarding the licensing of rental dwellings  Adopt, by motion, a resolution for summary publication of the ordinance.