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11/16/2020 - City Council - Work Session - MInutesI -la SPRING PARK On Lake 911innetonka CITY OF SPRING PARK WORK SESSION MINUTES NOVEMBER 16, 2020 — 6:00 PM SPRING PARK CITY HALL (Work Session discussion times are approximate) 6:00 — ZONING CONSIDERATIONS FOR SHORT-TERM RENTAL DISCUSSION Brixius wants to make the council aware there is an application for 3946 Shoreline Drive to be rezoned to commercial. He said the applicant has been told this will be postponed to December so that the council has an opportunity to review this. Brixius said this is a residential property that will be changed to C-1 commercial which will allow a broad range of uses. He said at the last work session he outlined the option of adopting an Interim Use permit. Brixius refers to materials in the packet showing the city has statutory authority to do this. He said the difference between interim use and conditional use is that interim use can have a time duration or a date specific attached to it. He also provided sample ordinances using the administrative process. He said it would follow almost identical to conditional use process. Brixius said regarding the geographic application he suggests it not be allowed on the interior lot but on the lot that abuts to the adjoining commercial district. He said other things to be looked at would be the previous short-term rental ordinance and look at physical and operational standards to be the same. Any violations could be grounds for termination. A determination needs to be made whether this is appropriate for the city. Brixius favors interim use over a change in zoning. He said a zoning change is a permanent use. Hughes asks about rentals in the future. Brixius said it depends upon the City's comfort. They would include conditions for operations. Brixius said some of the things that could be looked at is if the property is sold, would the use continue or terminate with the sale. He said other conditions could include nuisance complaints, or there could be a test timeline with a review. Rockvam said he likes the interim use part and the way he understands it with interim use you would go with the individual and not with the property. Brixius said that would be a condition. iBrixius said with council permission, he would contact the present owner and ask him to withdraw this zoning request because he doesn't believe changing the zoning on this one property to commercial is in the best interest of the neighborhood or the city and then tell him we will process an interim use permit language and he will apply for that. Rockvam asked if the property owner made an application to change the zoning and Brixiue confirmed. Horton asked if we do that for him, she wonders about others. She asks if this is a special case and Brixius said he would look to the council for that direction. He said as of now, short-term rental is a prohibited use. He would set up criteria, where is it located, corner lot, proximity to neighborhood, those physical features would have to apply for others. Brixius said this would be taken to planning commission. Rockvam wonders if this proposal would require a public hearing and Brixius said yes. Rockvam is concerned about the arbitrary part of it. He said this one is different from say Lafayette Lane or Black Lake Road. He said it's still a concern. Brixius acknowledges this may not be popular. If there is an exception that's going to be made, there may be others requesting exceptions be made. Rockvam asked about the test period and Brixius said it could be set for two years with a renewal date. Rockvam doesn't like the rezoning idea. He's not in favor of spot zoning. Tolsma illustrated on an overhead map other properties that could potentially look at something like this. Rockvam said a few years ago the council allowed those who have lakeshore can rent dock space and they don't have to have parking, bathrooms, etc and 0 sometimes people come in off the boats at night and they might be disturbing. He said this went ahead without any hearings. He said he would be in favor of seeing this happen and thinks it would be a real plus. Hoffman worries they are affording rights and opportunities to one individual and this is in an R-1 district. He believes in fairness for everyone. (Difficulty hearing Hoffman due to microphone and facemask.) Tolsma refers to the overhead map again and there are quite a few properties that could potentially argue same or similar situations as what's being proposed. Brixius is looking for a direction to proceed and he will be in touch with applicant. Rockvam repeats that if we adopt this short-term rental situation, it could potentially apply to others. Brixius said depending upon physical conditions such as adjacent to commercial property, additional physical conditions such as keeping them out of residential neighborhoods those other sites wouldn't qualify. Brixius asked if this should move to the Planning Commission and Rockvam agrees. Brixius said he will also give them the option to say no. 2. 6:20 — TRAIL SNOW PLOWING DISCUSSION — OA Rockvam said this is an annual occurring discussion. Tolsma said this comes up every year and there is a standard response. He said what's different this year is the City of Orono is • going to maintain their part of the trail going through their city. Rockvam asks if Mound is doing it and Tolsma said he doesn't think so. Rockvam said well maybe if Orono and Spring Park does it, maybe Mound would do it. Hoffman wonders about Minnetonka Beach. He said he's in favor of it. He said a lot of people use that trail and it can be icy and treacherous. Rockvam said he'd be in favor of trying it for a year. Hughes asked about restrictions from snowmobiles and Hoffman said it already is. Hoffinan wondered if Orono would plow it for us. Tolsma said he could ask Orono and he's pretty sure Larson would plow it too. Hoffman asks about some numbers so there aren't any big surprises. Tolsma said he'll get an estimate from Larson and he'll check on Minnetonka Beach too. Rockvam said to get a quote from Orono too. Hughes asks about battery operated items on the trail. 3. 5:30 — ENFORCEMENT POLICY DISCUSSION — Tolsma directs the council to the third paragraph of the document and said this was established 5-7 years ago because of limited staff resources, enforcement actions should be limited to complaint generated. He said that's how it's being handled right now. Rockvam said if active violations are visible, it shouldn't take a formal complaint in order to act on it. Rockvam said for example when driving down Northern Avenue most people comply with the no boat canopy structure for storage allowed and he said there is one that still does this. He believes everyone should be treated the same. Horton asked about complaints requiring name, address and phone number and yet going further on the form for Data Privacy it can by anonymous. Teitjen said complainant information can be confidential. Hoffman thinks the name and address information is for follow up. Tolsma said when the form was drafted there were some issues with complaints regarding properties in Mound and Navarre. So, the request was to verify that this was a Spring Park property. He agreed that complainant information is always kept confidential. 7:41 Hoffman speaking and inaudible. Tolsma said it's grey area. He said as an example, a refrigerator with a door on it sitting in a yard, the city doesn't wait for a complaint to take care of that. If a property has four vehicles stored on a property and only three are allowed, the city doesn't proactively go after the violator. • Hoffman wonders if they should add that and said right now there is a not a specific based on an ordinance violation. Tolsma said item #3 is a catchall and gives the language to enforce. Rockvam said there has been a lot of time spent on outdoor storage language and he feels it's important to keep the community looking nice. He said there are too many people who Eve here who want things to look nice and they don't want to live next door to a junk property. , Hoffman said regarding number 3, do we or don't we need to add code and ordinances to the language. Teitjen said she thinks that's implied but it could be added to make it more clear. Hoffman doesn't want someone to be able to say we are picking on them but not the neighbor. He said they should be able to point to the fact that it's in the enforcement policy. Tolsma said it could be changed to read "Upon observation of a suspected violation of the City's codes and ordinances..." Tolsma said a fourth could be added to read "City staff would make an effort to ...." He thinks an attempt could be made to look at every property on an annual basis. It could be a simple drive -by. A thorough inspection of every property could not be done but it could be said the city will drive down every street and look at every property on an annual basis. 4. 6:40 — UTILITY BILLING DISCUSSION Tolsma has a handout. Tolsma explains the calculations. Rockvam wonders what the problem is and Tolsma explained regarding Lord Fletchers Apartments the owner feels he is being charged unfairly because he is being charged one base unit per apartment. Rockvam asks about a motel and Tolsma said they would probably be billed in the same manner as an apartment. Is Tolsma further explains different scenarios of billing. He said when researching this some cities apply the base fee per SAC unit and he explained a SAC unit is a determination the Met Council uses. He said if an apartment building has a washer and dryer in the unit, that is considered a SAC unit. He said if there is a common laundry room, then each apartment is considered 8/10ths of one SAC unit. Tolsma also used comparisons with single family homes and the number of occupants. Rockvam said he appreciates what has been researched based upon one complaint. Rockvam said the sewer and water is an enterprise fund and as things wear out and need repair or replacement, the enterprise fund covers that. He said this has been looked at extensively and a past member of the council was very proactive about fairness for apartment dwellers. He said there were some adjustments based upon that. He said if the goal is to have everybody pay the same amount per 1000 gallons of water you would have to go to a usage base system where there is no minimum base quarterly charge. The argument about a quarterly minimum is because it's considered the privilege of having water and sewer available. He said the desire is to have it be equitable. Horton wonders why a single dweller potentially has a higher cost than a multi -dweller residence. Tolsma explained that is an indication of how the base fee can affect properties • differently. He said you could have a five person household use no water and would still pay the base fee. 4 Hughes asks about the Lakeview Lofts and if every unit has their own water shut off and • Rockvam said he thinks that's right. Tolsma said they may have their own shut off but they're still billed based upon how many units they have. Tolsma said no apartments in Spring Park have individually metered units but some new buildings in other cities do. Tolsma said the SAC method could be a compromise and could be the best approach. He doesn't think the overall financial impact would be that significant. Tolsma said each apartment building would have to undergo a SAC calculation so in the case of Lord Fletchers Apartments the 88 units would be reduced to 70 because they have a common laundry. Hoffman said he's in favor or recalculating the SAC measurement but he would be curious to know the net result of that. Tolsma said one neighboring city has notoriously high water bills and Rockvam said a lot of times it's due to bond payments. Tolsma said he could probably calculate this quickly. Tolsma said when the rates were adjusted in 2017 they included three phased in increases with the last phase taking effect in 2021. He said it will then have to be reviewed annually. Hoffman said depreciation of assets need to be looked at too. Rockvam said he believes the depreciation schedule is plugged into everything right now and Tolsma confirmed. Hoffinan • said replacement costs for depreciation purposes should also be reviewed frequently due to cost increases going beyond what has been factored. 4. 6:50 — ADJOURN Dan Tolsma, City Administrator Approved at C� meeting. Wendy Lewin, Acting City Clerk 5