Proposed changes to a South Lake Tahoe ordinance would exempt dwellings with vacation home rental permits from the city’s multifamily dwelling inspection program.

Multifamily dwelling inspections were started nine years ago to ensure that long-term rental units meet minimum health and safety standards. The program was not intended to apply to transient dwellings.

In an unintended consequence, some properties covered by the inspection program have one or more units with VHR permits. Those properties must get both a VHR permit and pay annual fees and be subject to inspections for the multifamily dwelling program.

City staff proposes to remove units with VHR permits from the inspection requirements. The change would currently affect only a half-dozen properties, according to the city. Additional amendments would allow inspections of properties with VHR permits if substandard housing complaints are made against them.

The ordinance changes cleared a first reading 4-0 Tuesday. Councilman Tom Davis did not vote. It comes up for a second reading March 18.

Council members also voted Tuesday to waive a $263 temporary use structure fee for El Dorado County’s plan to move its mental health department services out of South Lake Tahoe Senior Center.

Mental health operations will move temporarily into a trailer near the County Government Center on Johnson Boulevard. They will later move into a building the county is considering leasing and improving at 1900 Lake Tahoe Boulevard.

Council members applauded the long-requested move of mental health services out of the senior center.

“It’s a long time coming, lots of work by council, city and county staff,” Councilman Tom Davis said. “I’m sorry it took so long, but it will be resolved.”

In other business Tuesday, the City Council:

• Accepted up to $193,268 in grants from California Office of Emergency Services to help pay for the police department’s Domestic Violence Response Team.

• Accepted up to $106,366 in grants from California Board of State and Community Corrections to help fund the South Lake El Dorado Narcotic Enforcement Team.

• Accepted up to $60,971 in grants from the California Boating and Waterways Department for the city’s police boating safety program and budgeted for county boat property taxes up to $40,542 for a total program budget of $101,513.