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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />APRIL 19, 2016 <br />TITLE: <br />PUBLIC HEARING - ADOPTION OF THE <br />PROACTIVE RENTAL ENFORCEMENT <br />PROGRAM (PREP) ORDINANCE IN <br />CHAPTER <br />(STRATEGIC PLAN NO. 5,4E <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />T•-:• % <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1" Reading <br />❑ Ordinance on 2ntl Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO (,,3, PA // <br />FILE NUMBER <br />Adopt an ordinance for the Proactive Rental Enforcement Program (PREP) and the Gold Seal <br />Incentive Program with provision for adjustment of the annual rental housing inspection per unit <br />fee based on the Consumers Price Index. <br />DISCUSSION <br />The Proactive Rental Enforcement Program (PREP) was initially approved by the City Council in <br />1992 in response to a study prepared by community leaders. The study, entitled the "Mayor's <br />Task Force on Neighborhood Standards and Preservation ", proposed establishing a systematic <br />proactive rental inspection program to address poorly maintained rental properties that were <br />negatively impacting the quality of life of tenants and surrounding residents. <br />When the PREP program was initially approved, the rental housing industry requested a <br />provision be included that would reward rental owners who have displayed exemplary <br />maintenance and management practices, and who have not created service demands from <br />Community Preservation or the Police Department. This provision was labeled the "Gold Seal <br />Incentive Program ". An updated Gold Seal Incentive Program outline is attached hereto as <br />Exhibit 1. <br />The primary benefit for rental owners who can successfully complete a three stage qualification <br />process and receive Gold Seal recognition is an exemption from the annual fee which initially <br />was $17.50 per unit fee for a period of four years. The annual PREP per unit fee of $17.50 was <br />increased in 2013 to $21 due to increasing costs to administer the program. The increase in <br />revenue also reduced the amount of expenditures not funded by the PREP fee and were <br />accounted for in the Planning and Building Agency's operating budget. It is recommended that <br />the annual PREP per unit regulatory inspection fee be set at $25 which includes a $4 <br />administrative processing and information technology fee. <br />75B -1 <br />