6/15/2020 - City Council - Work Session - MinutesSPRING PARK
On Lake xinnemnk
CITY OF SPRING PARK
WORK SESSION MINUTES
JUNE 15, 2020 - 6:00 PM
SPRING PARK CITY HALL
CALL TO ORDER - The work session was called to order by Mayor Rockvam at 6:00 p.m.
Council Members Jerome P. Rockvam, Mayor; Mark Chase; Jeff Hoffman; Pamela Horton; and
Present: Gary Hughes
Staff Present: Dan Tolsma, City Administrator; Al Brixius, City Planner; Mary Tietjen, City
Attorney; and Theresa Schyma, City Clerk
1. LONG-TERM RENTAL ORDINANCE DISCUSSION
City Administrator Tolsma discussed the proposed long-term rental ordinance, the State's
landlord/tenant handbook, and the rental escrow process. He stated that he has discussed rental
properties with Hennepin County and they do not license rental properties at all. He added that the
county only gets involved if there are children involved or if it is an extremely unsafe structure
which are separate issues from rental licensing.
City Administrator Tolsma asked City Attorney Tietjen if the proposed long-term rental ordinance
could only be applied to single-family properties.
City Attorney Tietjen responded that legally speaking yes, the City could only apply the proposed
long-term rental ordinance to single-family properties. However, in order to legally validate that
distinction you would need to have some factual justification such as if there is a concern for quality
of housing or if the majority of complaint calls have been about single-family properties. In her
experience many cities are focused more on bigger buildings because that is where the majority of
issues and complaints are but that is not every city.
Council Member Hoffman asked if the City has any data to support complaints and where they are
coming from.
City Administrator Tolsma responded that, other than the anecdotal examples, the City has never
kept a log of rental complaints. He stated that one of the differences that came up during the
Planning Commission review of the proposed ordinances was that multi -family building owners are
required to have inspections with their insurance companies. He stated that is one argument that
came up as to why they should be treated differently from single-family homes that operate as rental
properties.
Mayor Rockvam stated one of his concerns is that he doesn't see the difference between a multi-
family apartment building and one individual who owns and rents out 10-15 single-family homes.
City Administrator Tolsma responded that one general position that came out of the discussions at
the Planning Commission is that multi -family buildings were built for rentals and did not need to be
retrofitted. However, some of the single-family homes have been retro-fitted for rentals and that
sometimes even a building that was originally built as a garage has been converted into a rental unit.
Council Member Hoffman stated that he wanted legal advice regarding separating the ordinance
and only applying it to single-family rental properties. He stated that has walked the City and
knocked on doors. What he found was unsafe decks, peeling paint, and run-down conditions at
single-family rental properties.
City Attorney Tietjen stated that observations of the quality of the housing could be a basis for only
applying the proposed ordinance to single-family homes. She stated that there needs to be more of
a concerted effort to look at the inventory and really take stock of that. She added that if the City
was to move forward for only single-family rental properties then the City needs some sort of
summary report about the quality of housing stock.
Mayor Rockvam asked about the history of rental complaints.
City Administrator Tolsma responded that some complaints are due to a bad tenant -landlord
relationship. However, he has received several calls that are legitimate complaints throughout the
years including someone calling with standing sewage in the basement where their landlord is
refusing to help and they are unable to afford to stay anywhere else. There is definitely a range in
complaints from minimal to legitimate. He estimated that staff receives approximately three to five
complaints per year. However, he believes it is necessary to consider worst -case scenario including a
property that staff never receive a complaint on but it is a hazardous property and there are serious
concerns regarding tenant safety. There are hazardous rental properties in the City that are not up to
what most communities would deem a safe structure to be living in. The counter -argument is that it
was a free-market transaction. However, many cities do have rental ordinances as a proactive
approach to ensure rental properties are safe and keep quality housing stock in the city.
City Planner Brixius stated that most communities that he works for have long-term rental
ordinances when their cities have aging housing stock. This helps ensure that the properties are
maintained and livable. The Planning Commission process attempted to draft an ordinance that
would work for both tenants and landlords. There are built-in protections for the tenant against
landlord retaliation. Also, this would help resolve tenant issues in a more immediate manner.
Furthermore, the landlord is protected from tenants who are trying to cause unfounded issues in
order to delay paying rent. This process can be managed in a fair and equitable fashion.
Council Member Chase asked if there were any concerns that, if this ordinance passes, the City
would even have the capacity to work with this ordinance.
City Administrator Tolsma responded that the vast majority of the work would be conducted by
MNSPECT, the City's building official. MNSPECT already provide rental inspection services in
other communities and have the number of staff to take care of the inspections. City Hall staff
would certainly have some increased time needing to be spent on general issues regarding rental
properties but the time-consuming portion of the process would be conducted by MNSPECT.
Mayor Rockvam stated that if the City is concerned with substandard housing then maybe the City
should begin buying some of these dilapidated properties in order to demolish and resell.
City Planner Brixius stated that some of his other cities have developed a scattered site
redevelopment approach in order to purchase dilapidated properties.
Council Member Hughes said that the State already has a process to deal with landlord/tenant
issues so he is not in favor of any sort of long-term rental ordinance in the City.
Council Member Hoffman stated that he is in favor of looking into purchasing dilapidated
properties but that can take time, especially when trying to find willing sellers. He stated that is why
he is in favor of a proposed rental ordinance for single-family properties.
Mayor Rockvam restated his earlier concern about separating the ordinance, that he doesn't see the
difference between a multi -family apartment building and one individual who owns and rents out
10-15 single-family homes.
Council Member Hoffman responded that the difference is multi -family buildings get inspected by
insurance companies.
City Planner Brixius added another difference is that these single-family rentals occur in owner -
occupied neighborhoods and having a problem landlord in a single-family rental could be more
impactful to the neighborhood than a multi -family property.
Council Members Chase, Hoffman, and Horton are in agreement that they are not in favor of a
long-term rental ordinance for multi -family properties but are in favor of exploring the option of a
long-term rental ordinance that would only apply to single and two-family residential rental
properties in the City.
Mayor Rockvam and Council Member Hughes are not in favor of a long-term rental ordinance for
both single-family and multi -family properties in the City.
The City Council consensus was that entire council is in favor of starting a redevelopment fund and
purchasing dilapidated properties in the City.
City Planner Brixius stated he would provide Council with a proposed redevelopment plan, prepare
an ordinance prohibiting short-term rental properties, and prepare an ordinance that would examine
opportunities to apply a long-term rental ordinance only to single and two-family rental properties.
City Administrator Tolsma stated that these items would be reviewed at one more work session in
order to iron out the details and then the updated, proposed ordinances should be ready for a
Council vote.
2. CODE ENFORCEMENT UPDATE/DIRECTION
City Administrator Tolsma stated that the Council was provided a confidential update on the court
proceedings regarding some nuisance properties in the City.
City Attorney Tietjen added that some of the impediment has been due to the court system being
delayed due to COVID-19. She stated that things are moving forward and there is the potential of
agreements with some of the property owners.
City Administrator Tolsma wanted direction from the Council about how they would like staff to
handle any new nuisance complaints that come into City Hall. He stated that these are very
uncertain and difficult times so he wanted to know if staff should continue the same process
regarding nuisance complaints. Each property owner's situation is different but asked if staff should
pursue complaints or offer a grace period due to the difficult times we are in and that some owners
may have legitimate reasons.
The Council consensus was that staff should keep to the defined procedures regarding nuisance
complaints.
Council Member Chase added that during the course of the process, staff would find out if there
are legitimate concerns and they could alter their approach on an individual basis.
3. COVID-19 PREPAREDNESS PLAN
City Administrator Tolsma discussed the proposed COVID-19 Preparedness Plan that the City is
required to adopt before June 29. He asked Council if they had any questions or feedback.
The Council did not have any questions or feedback regarding the proposed plan.
4. ADJOURN — The work session was adjourned by unanimous consent at 7:02 p.m.
Date Approved: July 6, 2020
Dan Tolsma, City Administrator Theresa Schyma, City Clerk