MEMORANDUM. From: Michael McMahon, Community & Economic Development Director

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1 COMMUNITY AND ECONOMIC DEVELOPMENT DEPARTMENT 1420 Miner Street Des Plaines, IL P: desplaines.org MEMORANDUM Date: March 23, 2017 To: Michael G. Bartholomew, MCP, LEED-AP, City Manager From: Michael McMahon, Community & Economic Development Director Subject: Ordinances Amending Chapters 17 and 18 of Title 4 and Chapter 8 of the Zoning Code to Regulate Short-Term Residential Rental Properties Issue: The Community and Economic Development Department has been directed to prepare ordinances modifying the City Code and the Zoning Code to license and regulate short-term rentals of residential properties. Analysis: Currently, Section 4, Chapter 17: Residential Properties Used for Rentals and the City s Zoning Code do not distinguish between long-term and short-term rental properties. There has been concern over the recent trend of property owners renting residential properties for short periods of time without obtaining a City Rental Property License. CED staff, working with the General Counsel s office, has prepared two ordinances (one pertaining to licensing and the other to zoning) that will regulate short-term residential rental properties. The ordinances under consideration will (i) repeal and replace the existing Sec of the City Code in order to more clearly differentiate between short-term and long-term rentals of residential properties; (ii) amend Sec of the City Code to add a $100 annual fee for short-term rental licenses; and (iii) add Short-Term Rental Property as a permitted accessory use in all of the City s residential zoning districts subject to certain conditions. The amended Sec of the City Code creates two categories of residential rental licenses based on length of the rental term: Long-Term Rental Property Licenses: For residential dwelling units rented for tenancies of 30 days or longer; and Short-Term Rental Property Licenses: For residential dwelling units rented for tenancies of less than 30 days. The City Code amendments establish new regulations for each category of rental properties. The long-term rental property regulations do not differ substantially from the current City Code requirements, but have been reorganized for clarity. Page 1 of 16

2 The new short-term rental property licensing regulations are summarized as follows: No residential property may be used as a short-term rental property for more than a total of 10 days (consecutive or non-consecutive) per calendar year. No short-term rental property may be rented for a period of less than 24 hours. No short-term rental property may be rented for multiple bookings during concurrent or overlapping periods of time. A separate short-term rental property license must be obtained for each short-term tenancy, even if the rental periods for the tenancies are consecutive. Applications must be submitted to the Director of Community and Economic Development no later than 14 days prior to the date the short-term rental period is to commence. The owner or operator of a short term rental property must complete the City s Crime Free Multihousing program prior to applying for a short-term rental property license. A short-term rental property license is valid only for the consecutive dates listed on the license application, but in no event will any short-term rental property license s term exceed 10 days. The Director of Community and Economic Development, or his designee, may require that a property that is the subject of a short-term rental property license application be inspected prior to the issuance of the license by a code official to determine whether the property meets all applicable requirements of the City Code pertaining to property maintenance, health and fire prevention and applicable rules and regulations adopted pursuant thereto, and all laws of the state regarding rental properties. The Director of Community and Economic Development may, at his or her discretion, deny an application for a short-term rental property license if the owner or operator of the property has been previously found guilty of violating Sections (E), 5-3-1(R), and/or of the City Code in connection with the rental property. A short-term rental property license fee of $100 must be paid for each short-term rental property license obtained. At its March 19, 2017 meeting, the City Council discussed regulating short-term residential rentals. A number of questions and concerns were raised, including questions regarding the scope of the City s authority to entirely ban short-term rentals of residential properties and the legal validity of various form of short-term rental regulations. The General Counsel s office is preparing a response to those questions which will be distributed to the City Council in the March 31, 2017 Friday update. Recommendation: For City Council consideration to adopt Ordinance M-8-17 amending the City Code regarding the licensing of Short-Term Rental Properties and Ordinance Z-8-17 amending the accessory use provisions of the City Zoning Ordinance regarding Short-Term Rental Properties. Attachments: Attachment 1: Ordinance M-8-17 Attachment 2: Ordinance Z-8-17 Page 2 of 16

3 CITY OF DES PLAINES ORDINANCE M AN ORDINANCE AMENDING CHAPTERS 17 AND 18 OF TITLE 4 OF THE DES PLAINES CITY CODE TO REGULATE SHORT-TERM RENTALS OF RESIDENTIAL PROPERTY. WHEREAS, the City of Des Plaines is a home rule municipal corporation in accordance with Article VII, Section 6(a) of the Constitution of the State of Illinois of 1970; and WHEREAS, Title 4 of the City Code of the City of Des Plaines, as amended ("City Code"), regulates business activities located within the City; and WHEREAS, Chapter 17, titled Residential Properties Used for Rentals, of Title 4 regulates the rental of residential property within the City ( Rental Regulations ); and WHEREAS, City staff and residents have expressed concerns regarding the increasing prevalence of short-term rentals of residential properties in the City; and WHEREAS, to address potential issues of public safety, negative impacts on neighborhood cohesion, and decreases in the availability of affordable housing in the City, the City Council has determined that is necessary and appropriate to regulate short-term rentals, specifically rentals of less than 30 days, of residential properties ( Short-Term Rentals ); and WHEREAS, the City Council desires to amend its Rental Regulations to regulate the use of residential properties for Short-Term Rentals and clarify existing regulations for longer-term rentals; and WHEREAS, the City Council has determined that it is necessary and in the best interest of the City to amend Title 4 of the City Code as set forth in this Ordinance; NOW, THEREFORE, BE IT ORDAINED, by the City Council of the City of Des Plaines, Cook County, Illinois, in the exercise of its home rule powers, as follows: SECTION 1: RECITALS. The foregoing recitals are incorporated into, and made a part of, this Ordinance as the findings of the City Council. SECTION 2: REPEAL AND REPLACEMENT OF CHAPTER 17. Chapter 17, titled Residential Properties Used for Rentals, of Title 4, titled Business Regulations, is hereby repealed and replaced in its entirety with a new Chapter 17, as set forth in Exhibit A attached to and, by this reference, made a part of this Ordinance. SECTION 3: FEE SCHEDULE. Section 1, titled Fee Schedule, of Chapter 18, titled Schedule of Fees, of Title 4, titled Business Regulations, is hereby amended to read as follows: Attachment 1 Page 3 of 16

4 4-18-1: FEE SCHEDULE: * * * Chapter G G G Residential Properties Used for Rentals Multi-family dwelling unit long-term rental property license fee Single-family attached dwelling unit longterm rental property license fee Single-family detached dwelling unit long-term rental property license fee Annual $20.00 Annual $50.00 Annual $ G Short-term rental property license fee Per License $ SECTION 4. EFFECTIVE DATE. This Ordinance shall be in full force and effect from and after its passage, approval, and publication in pamphlet form according to law. [SIGNATURE PAGE FOLLOWS] 2 Attachment 1 Page 4 of 16

5 PASSED this day of, 2017 APPROVED this day of, 2017 VOTE: Ayes Nays Absent ATTEST: MAYOR CITY CLERK Published in pamphlet form this day of, 2017 Approved as to form: CITY CLERK Peter M. Friedman, General Counsel DP-Ordinance Amending City Code Chapter 17 of Title 4 re Residential Properties Used as Rental Property 3 Attachment 1 Page 5 of 16

6 EXHIBIT A CHAPTER 17 RESIDENTIAL PROPERTIES USED FOR RENTALS : LICENSING: : REGISTRATION OF GROUP HOMES: : CRIME FREE MULTIHOUSING PROGRAM: : LICENSING: A. Definitions: DWELLING UNIT: A room or group of contiguous rooms that include facilities used or intended to be used for living, sleeping, cooking and eating, and that are arranged, designed or intended for use exclusively as living quarters. MULTIPLE FAMILY DWELLING UNIT: A dwelling unit of within a residential building that is offered as a rental property, including: 1. an apartment; or 2. a condominium unit where more than one unit in the building is under common ownership; but not including a unit in a duplex, or a group, row, or townhouse. SINGLE-FAMILY ATTACHED DWELLING UNIT: A dwelling unit that is offered as a rental property in a residential building containing multiple dwelling units, each of which has primary ground floor access to the outside and are attached to each other by party walls without openings, including townhouses, duplexes, and row houses. SINGLE-FAMILY DETACHED DWELLING UNIT: A house that is offered as a rental property and is entirely surrounded by open space on the same lot. OPERATOR: The owner or the designated managing agent or representative of the owner who is engaged in the business of renting or leasing a rental property. OWNER: Any person or entity that holds legal title and/or equitable title to a rental property. RENTAL PROPERTY: Any residential property, including single-family detached dwelling units, single-family attached dwelling units, or multiple family dwelling units, that is held out for rent, in return for the right to occupy or use the property of another, and is not owner occupied. 4 Attachment 1 Page 6 of 16

7 LONG-TERM RENTAL PROPERTY: A rental property that is held out for rent for a period of 30 or more consecutive days. SHORT-TERM RENTAL PROPERTY: A rental property or portion thereof, that is held out for rent, for overnight lodging, for a period shorter than 30 consecutive days. Notwithstanding the foregoing definition, the regulations contained in this chapter 17 may limit the number of days during which a property may be used as a short-term rental property. The term short-term rental property shall not include hotels, motels, or bed and breakfast establishments. B. License Required for Long-Term Rental Property: No person may utilize a single-family detached dwelling unit, a single-family attached dwelling unit, a multiple family dwelling unit, or any portion thereof, as a long-term rental property unless that person first obtains and maintains a current and unrevoked long-term rental property license issued by the department of community and economic development, for such rental property or portion thereof. 1. Conditions for long-term rental property licenses: a. License Term: No license shall be granted for a period longer than one year and each license shall expire on December 31 following the date of issuance. b. Inspection Required: The director of community and economic development, or his designee, may at his discretion require that a property that is the subject of a long-term rental license application be inspected prior to the issuance of the license by a code official to determine whether the rental property meets all applicable requirements of the City Code pertaining to property maintenance, health and fire prevention and applicable rules and regulations adopted pursuant thereto, and all state statutes and regulations regarding rental properties. c. The owner or operator of the rental property must complete the City s crime free multihousing program prior to applying for a long-term rental property license. C. License Required for Short-Term Rental Property: No person may utilize a single-family detached dwelling unit, a single-family attached dwelling unit, a multiple family dwelling unit, or any portion thereof, as a short-term rental property unless he holds a current and unrevoked short-term rental property license issued by the department of community and economic development, for such rental property or portion thereof. 1. Conditions for short-term rental property licenses: a. No rental property may be used as a short-term rental property for more than a total of ten (10) days per calendar year. The rental periods totaling no more than ten (10) days may be consecutive or non-consecutive. 5 Attachment 1 Page 7 of 16

8 b. No short-term rental property may be rented for a period of less than 24 hours. c. No short-term rental property may be rented for multiple bookings during concurrent or overlapping periods of time. d. A separate short-term rental property license must be obtained for each short-term tenancy, even if the rental periods for the tenancies are consecutive. e. License applications must be submitted to the director of community and economic development no later than 14 days prior to the date the short-term rental period is to commence. f. The owner or operator of the property to be rented must complete the city s crime free multihousing program prior to applying for a short-term rental property license. g. A short-term rental license is valid only for the consecutive dates listed on the license application during which the property will be used as a shortterm rental property, but in no event will any short-term rental property license s term exceed ten (10) days. h. The director of community and economic development, or his designee, may require that a property that is the subject of a short-term rental license application be inspected prior to the issuance of the license by a code official to determine whether the property meets all applicable requirements of the City Code pertaining to property maintenance, health and fire prevention and applicable rules and regulations adopted pursuant thereto, and all laws of the state regarding rental properties. 2. Short-term rental property license denial. The director of community and economic development may, in his sole and absolute discretion, deny an application for a short-term rental property license if the owner or operator of the rental property has been previously found guilty of violating Sections (E), 5-3-1(R), and/or of the city code in connection with the subject property. D. Application Form: No short-term or long-term rental property license shall be issued unless the owner or operator has first made an application therefor on an application form provided by the department of community and economic development. Every application for a short-term or long-term rental property license must include the following: 1. The property owner's name, address and phone number. If the property is owned by a partnership, firm, or corporation, the application must include the name, residential address, and phone number of each designated operator. If the property is in trust, the application must contain the name, residential address, and phone number of the trust and each of the trustees. Post office boxes will not be accepted. 6 Attachment 1 Page 8 of 16

9 2. If the rental property is operated or managed by a person besides the owner, the operator s name, address, and phone number. If the operator is a business entity, the application shall contain the name of the business entity, business address, phone number, and the name of a responsible representative. 3. An affirmation by the owner and, if applicable, the operator of the rental property that the owner or operator has completed the city s crime free multihousing program. 4. A written declaration by the owner and, if applicable, the operator that they agree to inspections of the rental property in compliances with to section and B(1)(b) and C(1)(h) of this code. 5. Additional short-term rental property application form requirements: a. Applicants must include the dates during which the rental property will be used as a short-term rental property. b. Applicants must list all prior dates during the previous license year during which the rental property was used as a short-term rental property. E. License Fee: No rental property license shall be issued unless the complete application form is accompanied by payment of a license fee. License fees are set forth in section of this title. F. Transferability: No short-term or long-term rental property license may be transferred to another owner or operator, or to another rental property. Each person holding a rental property license must give notice in writing to the department of community and economic development within twenty four (24) hours after having transferred or otherwise disposed of the legal control of any licensed rental property. Such notice shall include the name and address of the person or persons taking title or control of such rental property. G. Record Of Repairs And Changes: Every owner or operator of a short-term or long-term rental property must keep or cause to be kept an accurate record of all repairs, alterations, and equipment changes relating to the provisions of this code or to any rules and regulations pertaining thereto, and of all corrections made as the result of inspections by the code official. When requested, the owner or operator shall make such record available to the director of community and economic development. Every owner and operator subject to this section shall be notified that such record may be used in administrative or judicial proceedings pursuant to the provisions of this code. The department of community and economic development, upon issuance of a license, shall advise the licensee of the necessity for such recordkeeping and the manner in which such record shall be kept. H. Notice Of Violation: Whenever, upon inspection of a licensed rental property, or upon inspection of the records required to be kept by subsection G of this section, the director of community and economic development finds that conditions or practices exist which are in violation of any provision of any code adopted by the city or of any applicable rules and 7 Attachment 1 Page 9 of 16

10 regulations adopted pursuant thereto, the director shall serve the owner with notice of such violation in the manner hereinafter provided. Such notice shall state that unless the violation(s) cited is corrected within a reasonable time period, the rental property license may be suspended or revoked. I. Reinspection: At the end of the time the director of community and economic development has allowed for correction of any violation cited, the code official shall re-inspect the rental property and if he determines that such condition(s) has not been corrected, the director of community and economic development may issue an order suspending the rental property license. J. Rental License Suspension and Revocation: 1. The director of community and economic development may suspend a rental license under any one of the following conditions: a. If the rental property constitutes a nuisance residential property as defined in subsection E of this chapter. b. If criminal activity is occurring on the premises of the rental property and the owner or operator has failed to initiate eviction proceedings and take steps to terminate the responsible tenants lease. c. If the rental property owner or operator was given a notice of violation pursuant to subsection H of this section and failed to correct the violation(s) listed therein pursuant to subsection I of this section. d. If the rental property owner or operator is found by a court or administrative tribunal to have violated ordinance regarding property maintenance, health, or fire protection of the city in connection with the licensed rental property. e. If a condition of extreme hazard to health or safety is found to exist in the rental property, the code official may immediately suspend the license and declare the rental property uninhabitable. 2. Notice of Suspension: The director of community and economic development must give written noticed by certified mail to the property owner and operator if a longterm rental property license is suspended or revoked. The notice shall inform the property owner that he is entitled to a hearing and reinspection pursuant to subsection J.3 of this section, state the deadline for filing the appeal, and state the reason(s) for the suspension. 3. Appeal, Suspension And Revocation of License: Any person whose license for a long-term rental property has been suspended or revoked shall be entitled to a hearing through the administrative hearings program and a reinspection to demonstrate compliance. 8 Attachment 1 Page 10 of 16

11 a. A hearing to contest the revocation may be scheduled by sending a written appeal with grounds thereof pursuant to section of this code within 14 days of the date of the notice of suspension. If no appeal is made within 14 days following the date of the notice of suspension, the license will be deemed revoked. b. Any person whose license has been suspended may, within 14 days following the date of the notice of suspension, request a reinspection for the purpose of demonstrating that the violation or violations cited in the notice have been corrected. 4. Reinstatement of License: If, upon reinspection, the code official finds that a licensed long-term rental property, in connection with the notice issued is now in compliance with this code, and with applicable rules and regulations issued pursuant thereto, the code official shall reinstate the long-term rental property license. K. Penalty: Any person violating any of the provisions of this section shall be fined as set out in the general penalty in section of this code for each offense. A separate offense shall be deemed committed on each day during or on which a violation occurs or continues : REGISTRATION OF GROUP HOMES: A. Definition: For the purposes of this section, "group home" shall mean a living arrangement certified by a community mental health or developmental services agency where eight (8) or fewer persons with a mental illness or with a developmental disability reside together under the supervision of the agency. A group home shall be equivalent in all respects to a "community-integrated living arrangement" as defined in the community-integrated living arrangements licensure and certification act. B. Registration Required; Application: Group homes that are licensed by the state of Illinois pursuant to the community-integrated living arrangements licensure and certification act shall be exempt from the licensing requirements of this chapter, and any other licensing provisions of this title, but shall be required to register as a place of business in accordance with the processes set forth in chapter 1 of this title. In addition to the application requirements set forth in chapter 1 of this title, any person seeking to operate a group home in the city will be required to provide proof that they hold a current and valid license to operate the group home issued by the state of Illinois. C. Exemption From Business Registration Fee: Any state licensed group home seeking to register its place of business shall be exempt from any registration fee otherwise charged by the city : CRIME FREE MULTIHOUSING PROGRAM: All owners and operators of rental properties shall comply with the provisions of this crime free multihousing program. An owner may designate an operator to come into compliance on the owner s behalf. However, the owner remains responsible for compliance with this program. 9 Attachment 1 Page 11 of 16

12 A. Attendance: All owners or designated operators of a rental property shall attend and complete the city of Des Plaines crime free multihousing program seminar. The owner or designated operator shall attend the seminar prior to obtaining or being issued a city of Des Plaines residential rental property license. B. Time Limit: An operator shall be considered an agent of the owner. If a new operator is hired, the new operator shall have three (3) months after hiring to provide certification for the completion of the crime free multihousing program seminar. C. Record Of Attendance: The crime free multihousing coordinator, as designated by the chief of police, shall provide the director of community and economic development with a list of owners, agents and/or designees who have attended the city of Des Plaines crime free multihousing program seminar, with the date of attendance and verification that the owner, agent, or designee has complied with this section. D. Crime Free Lease Addendum: Any owner, or designated operator of a rental property must utilize a crime free lease addendum or have a clause in the lease similar to a crime free lease addendum for any leases executed after January 1, The crime free multihousing coordinator shall provide, at no cost, samples of the crime free lease addendum and shall review any clauses within actual leases with the city s legal division to determine if the clause is substantially similar to the crime free lease addendum. The purpose of the clause is intended to make criminal activity (not limited to violent criminal activity or drug related criminal activity engaged by, facilitated by or permitted by the renter, member of the household, guest or other party under the control of the renter) a lease violation. Violation of the clause shall be grounds to initiate an eviction proceeding as specified in the Illinois Compiled Statutes forcible entry and detainer statutes. For the purposes of this section, proof of criminal violation shall be by a preponderance of the evidence. E. Nuisance Residential Rental Property: It is hereby declared a nuisance and to be declared against the health, peace and comfort of the city for any property owner, agent, or operator to allow or permit the following: 1) the rental of a dwelling unit, or residential building within an apartment community or governed by a homeowners' association to a tenant who allows any of the following offenses to occur relating to the tenant, member of the tenant household, guest or other party under control of the tenant to occur: murder, kidnapping, aggravated kidnapping, prostitution, solicitation of prostitution, pandering, child pornography, storage or manufacture of harmful materials, criminal housing management, possession of explosives, unlawful use of weapons, sale of firearms, gambling, keeping a gambling place, concealing a fugitive, violation of the Illinois controlled substances act, violation of the cannabis control act or commission of any two (2) or more of any other crimes under the state of Illinois or under the federal government not specifically listed above; 2) the short-term or long-term rental of a dwelling unit, or residential building within an apartment community or governed by a homeowners' association to a tenant who allows said property to be deemed a chronic nuisance property as set forth in title 5, chapter 4 of this code. 10 Attachment 1 Page 12 of 16

13 CITY OF DES PLAINES ORDINANCE Z AN ORDINANCE AMENDING THE ACCESSORY USE PROVISIONS OF THE CITY ZONING ORDINANCE REGARDING SHORT-TERM RENTAL PROPERTY. WHEREAS, the City is a home rule municipal corporation in accordance with Article VII, Section 6(a) of the Constitution of the State of Illinois of 1970; and WHEREAS, the "Des Plaines Zoning Ordinance of 1998," as amended ("Zoning Ordinance"), is codified as Title 12 of the City Code of the City of Des Plaines, as amended; and WHEREAS, City staff and residents have expressed concerns regarding the increasing prevalence of short-term rentals of residential properties in the City; and WHEREAS, to address potential issues of public safety, negative impacts on neighborhood cohesion, and decreases in the availability of affordable housing in the City, the City Council has determined that is necessary and appropriate to regulate short-term rentals, specifically rentals of less than 30 days, of residential properties ( Short-Term Rentals ); and WHEREAS, the City desires to amend the City Code of the City of Des Plaines, as amended ( City Code ) and the Zoning Ordinance to regulate the use of residential property as Short-Term Rental Property; and WHEREAS, on March 6, 2017, the City Council heard the first reading of Ordinance M , which amends the City Code to require the owner or operator of a property used as a Short- Term Rental Property to obtain a license ( Short-Term Property License Requirements ); and WHEREAS, Chapter 8, titled Accessory, Temporary and Specific Use Regulations, of the Zoning Ordinance sets forth the accessory uses permitted by the Zoning Ordinance ( Accessory Use Regulations ); and WHEREAS, the City desires to amend the Accessory Use Regulations to permit Short- Term Rental Property in all Residential Districts, subject to certain regulations and the Short-Term Property License Requirements ("Zoning Amendment"); and WHEREAS, a public hearing by the Planning and Zoning Board ( PZB ) to consider the Zoning Amendment was duly advertised in the Journal on February 10, 2017, and held on February 28, 2018; and WHEREAS, the PZB voted to recommend approval of the Zoning Amendment by a vote of 5-0, which recommendation the PZB forwarded in writing to the City Council on March 1, 2017; and 1 Attachment 2 Page 13 of 16

14 WHEREAS, the City Council has considered the factors set forth in Section E, titled "Standards for Amendments," of the Zoning Ordinance; and WHEREAS, the City Council has determined that it is in the best interest of the City to adopt the Zoning Amendment as set forth in this Ordinance; NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Des Plaines, Cook County, Illinois, in the exercise of its home rule powers, as follows: SECTION 1. RECITALS. The recitals set forth above are incorporated herein by reference and made a part hereof. SECTION 2. FINDING OF COMPLIANCE. The City Council finds that consideration of the Zoning Amendment has complied with the provisions of Section of the Zoning Ordinance. SECTION 3. ACCESSORY, TEMPORARY, AND SPECIFIC USE REGULATIONS. The City Council amends Chapter 8, titled Accessory, Temporary, and Specific Use Regulations, of the Zoning Ordinance to add a new section , titled Short- Term Rental Property, as follows: : SHORT TERM RENTAL PROPERTY In addition to conforming to the general regulations for accessory uses and structures set forth in section , "Accessory Uses And Structures," of this chapter, short-term rental property, as defined in section of this code, may be allowed in all Residential (R) Districts provided that: A. The owner or operator of a property used as a short-term rental property must obtain a short-term rental property license in accordance with section of this code; B. No short-term rental property may be rented for a period of less than 24 hours. C. No short-term rental property may be rented for multiple bookings during concurrent or overlapping periods of time. 2 Attachment 2 Page 14 of 16

15 SECTION 4. SEVERABILITY. If any paragraph, section, clause or provision of this Ordinance is held invalid, the remainder shall continue in full force and effect without affecting the validity of the remaining portions of the Ordinance. SECTION 5. EFFECTIVE DATE. This Ordinance shall be in full force and effect from and after its passage, approval and publication in pamphlet form according to law. [SIGNATURE PAGE TO FOLLOW] 3 Attachment 2 Page 15 of 16

16 PASSED this day of, 2017 APPROVED this day of, 2017 VOTE: Ayes Nays Absent ATTEST: MAYOR CITY CLERK Published in pamphlet form this day of, 2017 Approved as to form: CITY CLERK Peter M. Friedman, General Counsel [NOTE: Deleted Language is Struck Through. New Language is Bolded and Double Underlined.] 4 Attachment 2 Page 16 of 16