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10-9-89 agenda • CITY OF RICHFIELD, MINNJSOTA Council Letter No. 232 Agenda, October 9, 1989 Issue Statement: Second reading of the rental licensing and point of sale ordinance. Background: The Richfield City Council has previously reviewed the feasibility of adopting the point of sale and rental property licensing ordinance. The ordinance would specifically require periodic inspection of rental housing and point of sale inspections of owner occupied property. This ordinance has been discussed at Study Sessions on April 6, 1987, May 4, 1987, and March 6, 1989. The ordinance was initially presented for first reading in consideration on June 8, 1987 and tabled at the second reading held on July 3, 1987. At the May 8, 1989 Study Session the Council approved the first reading of the ordinance. The Council commissioned a Committee representing a variety of city interests to review the ordinance and present a recommendation to the City Council. The Committee included representatives from the Chamber of Commerce, Citizens For Quality Community, a tenant, the HRA, a landlord, the League of Women Voters, and a number of general community • representatives. The Committee met on three separate dates including one public hearing. Testimony at that public hearing included support and opposition to the proposed ordinance. Based upon this hearing and the Committee discussion a revised ordinance was developed. The revisions included changes in the licensing procedure, renewal and transfer provisions, suspension and revocation requirements, penalties for falsification of licenses, application information, and classification of a provisional license and a number of other related changes. A copy of the revised ordinance is attached. The basic intent to the ordinance remains unchanged. Apartments would be required to be licensed. The City would inspect the apartments for compliance with existing property maintenance codes. Failure to comply with the maintenance requirements could result in forfeiture of the license, forfeiture of the license would eventually lead to the inability to rent the property. Owner-occupied homes would be required to be inspected at point of sale. Recommended Motion: Staff recommends approval of the second reading of this ordinance which will license rental properties, which would include apartments, multifamily residences, duplexes and point of sale inspections by building officials, transferring residence to a new owner. The ordinance would take affect on March 1, 1990. is The initial license fee for the ordinance is attached. Basis of Recommendation: 1. Property maintenance building code ordinances requiring licensing and point of sale inspections have been successfully implemented in a number of communities as a method to improve their overall level of property maintenance in their community. 2. Richfield residents have expressed support for property maintenance ordinances. This was evident by the community survey conducted by Decision Resources, Inc. 3. The Housing and Redevelopment Authority has recommended the adoption of this ordinance. The Richfield Chamber of Commerce has recommended adoption of the ordinance. The Committee established by the Council to review this ordinance has recommended adoption in the revised format attached. Alternative Recommendation: Council could decide to not implement the ordinance. Discussion/Decision Mode: This ordinance is presented for public hearing and second reading at the October 9, 1989, Council Meeting. U JDP:sae submitted, RespeYanager Jame osser City 0 SUMMARY OF THE PROCESS LEADING TO THE CONSIDERATION OF A PROPERTY MAINTENANCE ORDINANCE Reconsidering Feasibility of an Ordinance - HRA A property maintenance ordinance was considered by the City Council at several meetings in 1987. The matter was tabled and not brought up again until late 1988, when Richfield's Housing and Development Authority requested staff to look into the feasibility of such an ordinance. -- October 17, 1988 Housing and Redevelopment Authority Requested staff to report on the feasibility of a "Truth in Housing"-type ordinance for rental property. Report back in 90 days. Staff looked at the proposed property maintenance ordinance and reported back to the HRA. The HRA recommended its adoption. • -- January 17, 1989 Housing and Redevelopment Authority HRA Letter No. 6 As was the request of the Housing and Redevelopment Authority, staff reported back in 90 days and reviewed the "Truth in Housing"-type ordinance, BILL NO. 1987 - . Also, the 1988 City Survey indicated overwhelming support for the inspections of rental housing on a regular basis. The HRA recommended adoption of the ordinance. Reconsiderina Feasibilitv of Ordinance - Citv Council Because of the HRA's recommendation, and apparent community support, the council took up the matter again at a study session. The council requested staff to prepare the proposed ordinance for a first reading. -- March 6, 1989 City Council Study Session Letter No. 7 & Minutes The recent community survey, the HRA's recommendation and the success which other communities have experienced prompted the • Council to take up the proposed ordinance again. The City Council reviewed the property maintenance ordinance and considered the HRA's recommendation of its adoption. The . Council had considered such an ordinance several times before: at study sessions on April 6 and May 4, 1987, and at a council meeting where it was presented for First Reading consideration on June 8, 1987. The ordinance was tabled at the Second Reading on July 13, 1987. Council directed staff to prepare the ordinance for a First Reading, and to publicize the proposed ordinance in "Your City/Your Schools". Staff publicized the ordinance and received no unfavorable comments. First Reading of Ordinance - Committee Appointed A First Reading was held and public comment taken. The council felt additional consideration was needed and asked staff for potential committee candidates. -- May 8, 1989 City Council Council Letter No. 113 The First Reading of the proposed ordinance was held. Thirteen members of the public presented comments. The council voted to direct the City Manager to provide a list of • citizens for potential committee membership to study the ordinance. The established committee shall review the ordinance, receive input, review options and report to the City Council. The date for the Second Reading of the proposed ordinance was left unscheduled. Council reviewed and modified the list of candidates and approved committee membership of nine members. -- June 6, 1989 Property Maintenance Committee Memo to Committee Members (Enclosed) Committee members are: Thomas Harms, Committee Chair, Jane Butterfield, Pastor John Chell, Ken Kunz, Ernest Lindstrom, Matt Little, Bernie Mittelsteadt, Pat Rickert, George Seltz. A roster is also enclosed. Chairman Harms set the first meeting for Wednesday, June 6, 1989. First Meeting of Property Maintenance Committee - Process Set The process for considering the proposed ordinance was established at the first meeting of the Property Maintenance Committee. The Committee would review their charge and the • proposed ordinance at the first meeting. At the second meeting, the committee would solicit public testimony and request staff to provide responses. At the third meeting, the committee would review the comments and responses. • -- June 14, 1989 Property Maintenance Committee Members Meeting Number 1 (Minutes Enclosed) The committee reviewed the proposed ordinance as well as ordinances from other cities. Two other meetings were scheduled. The next meeting would be to invite interested persons to provide comments, the last meeting would be a working session to review the ordinance, taking into consideration the comments from the public testimony. A summary would then be prepared and circulated to the committee members. If a fourth meeting were necessary, another date would be set. There was a general consensus that some sort of inspection process was necessary. The largest area of disagreement was how the cost should be borne. T Second Meeting of Property Maintenance Committee - Public Comment Notices soliciting public comment were published in two editions of the Richfield Sun/Current. -- June 21 & 28, 1989 • Richfield Sun/Current Newspaper Notice of Next Meeting Seeking Public Testimony (Enclosed) Publication of notice to the public of the meeting on Wednesday, July 12, 1989, seeking public comment on the proposed ordinance. Members of the public gave testimony both in support of and opposition to the proposed ordinance. The Property Maintenance Committee requested staff to respond to questions and issues brought forth in the testimony. -- July 12, 1989 Property Maintenance Committee Members Meeting Number 2 (Testimony Summaries Enclosed) The committee received public testimony from eighteen interested parties. Summaries of their testimony are enclosed. The committee directed staff to respond to the concerns the witnesses brought up, and to forward those responses to the committee members. Witnesses were mailed a copy of the roster and the summaries of all the testimony. Committee members received the questions the witnesses raised and along with staff's response (also enclosed). • Article in Richfield Sun/Current 7Z2? .3- The subject of a property maintenance ordinance and the public's reactions received press coverage. -- July 19, 1989 Richfield Sun/Current Newspaper Article Reviewing the Public Testimony (Enclosed) The Richfield Sun/Current ran a five column article on the proposed ordinance and the witnesses who testified. The article also announced the third meeting date and time. Third Meeting of Property Maintenance Committee - Consideration of Comments and Responses The committee considered the public's concerns along with staff's responses. The committee review the ordinance section by section. -- August 9, 1989 Property Maintenance Committee Members Meeting Number 3 (Minutes Enclosed) The committee reviewed the witnesses comments and staff's responses. There was considerable debate about licensing versus registration, whether the ordinance would cover point- of-sale, and the fee structure. Discussion also included where a license should be displayed, what to do if ownership changed, and what to do with repeat offenders. Ernest Lindstrom sent a letter to Chairman Harms at City Hall and to the other committee members at their homes. Mr. Lindstrom wanted the ordinance amended to include: A point of sale certificate issued for single and two family homes; a registration requirement of detailed information with respect to ownership of apartment houses and rental homes, to be updated semiannually; giving the broadest possible inspection to both the fire and police departments for inspection of safety requirements. Reference was made to a letter from Paul Kaiser. Staff did not receive any letter from Mr. Kaiser. A memo from Leo M. Lehn was received by staff. Mr. Lehn is concerned about: treating apartment renters differently than other citizens; invading privacy rights; accurately justifying the cost of the program; and the lack of awareness of the proposed ordinance by other renters. A letter was received by Chairman Harms and city staff from John Hamilton, President of the Richfield Chamber of Commerce. The Chamber supports an ordinance providing for inspection and • licensing of rental property. • U The committee members wanted a complete packet of information to circulate through the committee before giving a final recommendation to the City Council. 0 CITY OF RICHFIELD Memorandum DATE: June 6, 1989 TO: Property Maintenance Committee Members Jane Butterfield Pastor John Chell Ken Kunz Ernest Lindstrom Matt Little Bernie Mittelsteadt Pat Rickert George Seltz FROM: Thomas Harms, Property Maintenance Committee Chair Thank you for agreeing to serve on the Property Maintenance Committee. The first meeting of this committee has been scheduled for Wednesday, June 14, 1989 at 7:00 p.m. An agenda for this meeting is attached. • I am looking forward to meeting with you. TH:eja cc: Jack Erskine, Director Public Safety 41 t PROPERTY MAINTENANCE COMMITTEE 6/14/89 - 7:00 P.M. CITY HALL CONFERENCE ROOM AGENDA I. INTRODUCTIONS II. STATEMENT OF PURPOSE (SEE MEMO) III. WORK PROGRAM AND SCHEDULE (TO BE DISCUSSED AT MEETING) IV. REVIEW PROPOSED RICHFIELD ORDINANCE V. COMPARISON AND CONTRAST - RICHFIELD ORDINANCE VI. NEXT MEETING • VII. ADJOURNMENT -,-/ 4/-- / POINT OF SALE AND RENTAL PROPERTY LICENSING-ORDINANCE COMMITTEE Meeting - June 14, 1989 ATTENDANCE: Thomas Harms, Chairman - Jane Butterfield Pastor John Chell Ken Kunz Ernest Lindstrom Matt Little Bernie Mittelsteadt Pat Rickert George Seltz City Staff: Jim Prosser, City Manager Pat Coughlin, Fire Chief Betsy Christensen, Health Administrator Linda Vukelich, Administrative Aide Meeting called to order at 7:05 p.m., Wednesday, June 14, 1989. Jim Prosser introduced the staff and thanked everyone for volunteering to be on the committee. Tom Harms called the meeting to order. He commented that the City Council is in the process of reviewing the ordinance regarding the inspection of rental property at the time of sale. An ordinance has been proposed and is attached. During the course of the first reading, the Council had raised doubts. The purpose of the committee which was then formed is to consider alternatives to the ordinance and whether an alternative is needed. This committee will review the ordinance and those of other communities. The second meeting will be to invite anyone who has interest to the meeting and allow them to speak for no more than five minutes; also, others from other cities. The third and final meeting will be a working session to review the ordinance and take into consideration the comments from the public hearing and the additions and deletions suggested. A summary of what the committee did and recommendations will be prepared and circulated to all of the committee and then sent to the Council. If the committee feels, after the third meeting, that another meeting is needed, they would just set a date for the meeting. Page Two - Meeting 6/14/89 Comment regarding meeting two. The staff will notify those interested (those people who have called or indicated to City Hall that they have an interest) and the committee will set as a panel to hear their opinions. It was recommended that the staff be sure to get to all others, including the single dwellings and duplex owners. Comment made that there is no money available to publicize the meetings other than in the paper or to other groups. City Manager Prosser mentioned that it has been put in Your City/Your Schools, articles also published regarding this in Sun Current. Question raised as to how many people have expressed an interested. Manager Prosser responded that approximately 20 people have asked to be informed of the open meeting. Question raised as to whether letters could be sent to interested/concerned people. It was indicated that there are approximately 115-120 apartment owners in the community, approximately 500 single homes, and 250 duplexes. That would mean approximately 500 letters. Prosser stated that this was discussed before and that the City feels that it is important that the people know what's happening and feel that they have taken good steps to se that this has been done. Bottom line is there is no money available for special mailings. This committee would not be in lieu of appearing before the Council, only to give them the opportunity to have input into the City meetings. • The feeling was expressed that this is just to bring some kind of united opinion before it goes back to the Council. Feel that these people would like to have some input to the Committee. Question from outsider present: If we sent out letters, how many would live outside of Richfield. Answer: We don't know, but we have no authority to send out any mailings. Motion was made to approve the agenda (schedule of meetings). Seconded and passed. Chairman asked for suggestions for dates for the second and third meetings. Since we set the date for the second meeting, we will send out letters to the interested people, publish an article in the Sun Current, and if this doesn't seem to be enough, we will print a display notice (as opposed to a regular notice). Discussion was held on the date of the second meeting and it will be Wednesday, July 12 at 7:00 p.m. in the Council Chambers. The final.meeting will be held on Wednesday, July 26 at 7:00 p.m. It was then decided to review the ordinance to get the general idea of what is trying to be accomplished and what alternative are available to handle this -- to define what the problems are. Page Three - Meeting 6/14/89 Jim Prosser indicated that several years ago, the City became aware that they were receiving increasing numbers of comments regarding property not being maintained. Careful examination of whether that was a valid perception was made. Chief Coughlin began to review the types of complaints and the number of complaints. Typical routine is to receive the complaint, Public Safety officer verifies and checks out against codes, communication sent to the owner/tenant and follow-up is made. It was observed that there was an increase noticed. More than double in the past five years. Greater number and greater variety of problems. Garbage homes have occurred in Richfield -- not observable from the outside, but someone from the outside reports the situation. As a result of this, we looked at other communities. Many communities across the country experience the same phenomena. The problems are not necessarily from willful neglect, but a variety of reasons involving the ability to maintain older homes. We asked them how to deal with the issue. The first thought was more aggressive enforcement of codes. Unless they can actually gain access to the property, there is no way to see what is occurring. Many of these communities had adopted an ordinance to inspect at the point of sale. Reaction was that while it was a significant amount of work, they observed a change because people became aware of the need to maintain because they knew they would have to be inspected at time of • sale. There were a few that didn't want to maintain so they sold out. They also became aware of the need to correct problems before they became bigger problems. Pat Coughlin explained what is looked for in the inspection. He explained that as Fire Chief, he administers the inspection area. The problem they ran into was the problem was big but they needed to be involved in it. They tried an increased inspection to see what could be spotted from the streets. They got ordinances from St. Cloud down to Rochester. Couldn't find a way to get people to complain faster, before the problem got beyond control. They look for: Every structure is built in accordance to building code and housing code says it should be maintained in accordance to the building code at the time the house was built. (1) Water heater has a temperature and pressure relief valve; (2) In the main structure, only require that it is maintained the way it was, for instance the floor. (3) Electrical system -- we look for extension cords, loose outlets, multiple outlets. If we see an electrical problem, we recommend that the inspector check. In an apartment, it is easy to find evidence of problems. It is mainly to keep the structure in the way it was built and check lifesaving areas. 0 Page Four - Meeting 6/14/89 • Jim Prosser said that the problem is not unique to Richfield. The proposed ordinance would be pro-action as opposed to reaction. It would help maintain property values. Non-homestead homes have doubled. They tend to be in the main stream of a city. Comments: Citizens for Quality Community -- One of the things we need to do is to achieve a crime-free, drug-free community. Crime fund and Neighborhood Watch publicize declining crime rate as well as the zeal of the community to wipe crime out. To inspect rental properties without increasing cost to taxpayers is a problem. We have landlords who wouldn't maintain property, but also tenants who will trash property and pay their rent so that the landlord can't do anything about it. The problem is that we need to deal with the question of how do we assist landlords when they have a tenant that is trashing a neighborhood. "I" think that we need to enforce the ordinance that no more than three unrelated families in one residence. The Ordinance: • Pat Coughlin explained the ordinance. City would require anyone that owns a rental property to apply for a license and condition is that every 18-24 months, City would go into the property and enforce the housing code. This would be a condition of maintaining the license. The fee would pay for the inspectors needed to maintain the inspections. The first year would generate about 1'h inspections per year. After the initial problems are found, it will go down a little bit. Licenses would have to be renewed annually. He indicated that we have worked closely with the landlords when the tenant is causing a problem. It is an insurance for the landlord in case the tenant has caused a problem. In addition, single family homes that are sold, the City would go in and inspect. It will take approximately 1h years to inspect all rental property. Question: What kind of information will you ask the owner. Answer: Street address so we can contact them, who they are, where they are. No question about who is in the property. This will be answered upon inspection. Question: Would it be helpful to ask it they have had housing violations in other cities? 0 Page Five - Meeting 6/14/89 • Answer: No. That could have been for a variety of reason. We give them a chance to build a track record here. _ If there is a violation of code, we could take the license. They will be notified and they can notify the tenant in case they want to be there. The whole idea is to educate them to maintenance of property. We would give them a time period to correct the problem and then inspect again. Question: What if the landlord has a bad tenant? Answer: Better to work primarily with the owner. We then will assist the landlord in getting an eviction for "creating a nuisance". We come in if the landlord feels there is a problem and this sometimes assists them in getting an eviction. Question: Have other communities experienced a legal challenge? Answer: Some cases where the landlord has refused to permit the inspection and a court order is needed. That is the typical type of legal action that has been taken. Don't have to get a search warrant. Question: What is the difference between the City of Minneapolis • has you register and come out periodically? Answer: Unless Minneapolis has changed, they only inspect on a complaint basis. Comment made that everyone in Minneapolis must be licensed but an inspection isn't required. Basic difference is that if someone violates a code, we have authority to pull the-license until problem is corrected. Registration would not allow this. Question: How would we staff? Answer: First we wanted to do with the staff we have, but we are running behind. Came up with two full-time positions when we figured it out. Prosser: If we are to hire, we can always pull it back. Coughlin: This is not a revenue producing function. All the costs are in the proposal. Question: Is it a condition of sale? Answer: They couldn't close on the property unless inspection is signed on the property. 0 ?J Page Six - Meeting 6/14/89 Question: Is the City subjecting itself to any legal problems if it says the property is O.K. and the new owner finds it isn't O.K.? Answer: There is no guarantee that a suit wouldn't be brought on the City. Our job would be to do the best job we can and the courts uphold this. Point was made that if we do find problems upon point of sale, we wouldn't stop the sale. We get either the seller or buyer to agree to correct the problem. The certificate must be signed. Once we find a violation, we have to follow-up to make sure it is corrected. Question: Did you feel that there were ordinances that already took care of this? Answer: To the contrary. Want to be sure that Police and Fire have the authority to go into and find problems. As neighborhoods deteriorate, crime usually goes up in those areas. The concern is how we get to the problem. It is felt the goal is to upgrade our community. Felt it is a key issue to making our community livable. Does it put a problem on the people who don't have a choice as to putting up with problems are causing a problem with the landlord. Prosser: About 20% are in good there are those in-between. We helped now before they get bad for the landlord and the tenant the 60%. It is necessary to ha, areas. shape, 201% in bad condition, and feel that those in-between can be -- before they become too costly can't live there. Will focus on ve the capability to get to these Comment: Rental property is not a profitable business. "I'm" willing to give up some of my rights to allow the Police and Fire to get into all of my homes. "I'm" afraid of the administrative part. I need to be convinced that licensing is the way to go. This is a key part of our community. Answer: There is a reporting provision in the ordinance (p. 5), requiring the City Manager to submit a report to the City Council on the regulatory activities relating to the ordinance. That would indicate that we are getting our money's worth. In order to have teeth to stop the problem, there must be a mechanism to have leverage to accomplish it. 10 -Aa Page Seven - Meeting 6/14/89 0 Comments There is approximately 8% vacancy rate in rental property. Can't rent "my" units in Richfield right now. If I don't have that revenue, how can I pay the taxes? What do you see is the answer? I see the need to have them inspected, but I don't need another tax. Prosser: Consideration as to where the costs should be borne. We could not find any community to indicate that there was a need to inspect. Couldn't identify from outside appearances or complaints. Our general effort here is to stay as lean as possible on staff. What we're telling you is there's no other way to get at this issue -- at the problem before it gets out of hand.. Where should the tax burden be borne? You may want to provide another recommendation other than the licensing. The revenues we receive from the State are necessary to have an ongoing program. Believe these are separate issues. Opposition would not be to the process of inspections, but rather as to who should bear the cost. Problem is the payment and we can't move from one to the other without taking both into consideration. Could probably make some changes in the language, but we need to focus on the cost. Prosser: If someone keeps having a problem, we reserve the right to come back to charge that person more. Question: Maybe the cost should be borne by the entire community instead of the owners. Answer: Can't with the present legislation. Comment: $50 can be charged on single family homes, I don't feel that is a problem. It is when you get to the apartment complexes. I'd be more inclined to subdivide these buildings. Answer: We're only talking about $7.50 per unit for inspection, plus $50 for the unit. Question: How much am I going to be hassled as an apartment owner? Answer: A notice will be sent out setting up a time for the inspection. 0 Page Eight - Meeting 6/14/89 Chairman: There are opinions as to how this can be paid for. The committee could lay out for the Council what we feel are the options to pay for this: 1. The taxpayers 2. The licensing fee 3. Licensing fee/inspection fee 4. Separate between all of the above The consensus seems to be that everyone is in agreement that the inspections are needed, there may be a problem with some of the wording, but the money area seems to be the problem. Question: Could individual inspectors be set up outside of staff, approved by City, paid directly by the seller to the inspector. Would that have an impact on saving money? Answer: No. We would have to take a look at their quality control services capabilities, how they work with the public on these issues. It is hard to do with private contractors. We may still have problems but not these types. Comment: If you total up the list of inspections (page 9-11), you can see how many we would have to do and the cost. • Question: What do you do when 20 applicants come in with homes for sale and inspectors say they can't get to them in three weeks? Answer: We will not hold up a point of sale. The real estate people will work with us, though they may not be in agreement, and if they will let us know, we will work with them. Call for other topics. Chairman Harms: It may not seem that you accomplished what you wanted to, but I feel a great deal has been done. The goal is common and it was good to discuss this. We don't have an answer to the dollars and we can only layout something for the Council. Prossear': We can stay after the meeting to look at other ordinances. Comment: The next meeting with input from the people who have the problems will be helpful. We need to strengthen the hands of the landlord by getting the City in the act if the tenant is part of the problem. "I" think that it would be a key to this. r Page Nine - Meeting 6/14/89 Chairman: Wouldn't want to run up administrative costs by running to court to testify, but in the report maybe something could be included confirming the facts. As a practical matter, we ordinarily do what we can to assist the landlords in this type of issue. Prosser: Have seen this ordinance work in other communities. Getting input from other communities would be helpful. There is a general recommendation that this type of ordinance is helpful, but for various reasons might be political. Question: Is there a vehicle in the ordinance that if a person does not comply, that the City can hire an outside contractor to take care of the problem? Answer: Yes, but we would need to ask the attorney to answer. Question: Wouldn't it be good to have our attorney at the next meeting. Answer: Yes. Question: Can we go outside the community and have input at the next meeting? Answer: Yes. If you know someone whose opinion would be helpful, they could be there. Adjournment at 9:00 p.m. The next meeting will be on Wednesday, July 12, 1989. Attachments: Copy of Council Letter and Proposed Ordinance 0 4 ? CITY OF RICHFIELD, MINNESOTA Council Letter No. 113 Agenda May 8, 1989 Issue Statement: Frst reading rental licensing and point of sale ordinance. Background: The Richfield City Council has previously reviewed the feasibility of adopting a point of sale/rental property licensing ordinance. The ordinance would specifically require periodic inspections of rental housing and point of sale inspections for owner-occupied properties. The ordinance has been discussed at some length at study sessions on April 6 and May 4, 1987, and on .March 6, 1989. The ordinance initially was presented for first reading consideration on June 8, 1987, and tabled at the second reading held on July 13, 1987. At the March 6, 1989 Study Session, Council directed staff to: • Publicize the proposed ordinance in Your City/Your Schools which was accomplished in the last edition of that publication. • Bring back for first reading after that publicity had occurred. . The feedback to date related to that publication has been essentially nohe. Staff has received one anonymous letter supporting a more vigorous property maintenance ordinance. The primary reasons for recommending this ordinance for adoption include the following: 1. Property maintenance and building code ordinances have been successfully implemented in a number of communities as a method to improve the overall level of property maintenance in a community. 2. Richfield residents have expressed support for property maintenance ordinances. This was evidenced in the recent community survey conducted by Decisions Resources, Inc. 3. The Housing and Redevelopment Authority has recommended adoption of this ordinance. The concerns previously expressed to the City Council include the following: • There was a desire to decrease the cost of the inspections. • Several property owners indicated there was no need • for the ordinance since most multi-family units were generally well kept. • • Existing property maintenance ordinances are sufficient to respond to concerns. • Less frequent inspections for rental units would be sufficient to achieve the objective. Summary of responses provided to these objections included the following: • The estimate of cost to administer the program was based on experience of other communities. The actual cost of the program in Richfield may actually be less. Staff has developed a conservative estimate approach so that a fee may be set that would less likely require ap increase in the near future. Fee setting was developed on a conservative basis to avoid criticism that an unrealistically low fee was initially established in order to get the program implemented and then staff would plan to increase the fee after. • This ordinance generally enforces existing ordinances. Its primary purpose is to provide the city the necessary tools to inspect inside properties on a periodic basis. These inspections are more likely to cover maintenance problems before they become serious. Periodic inspections also are more likely to generate better overall maintenance for rental properties. Current inspections are limited to complaint responses, generally. • This ordinance would provide inspections of rental property on the average of every one to two years. Providing less frequent inspections would not provide optimum effectiveness. A significant portion of this maintenance inspection relates directly to general maintenance and housekeeping type issues.. Less frequent inspections may yield a situation where problems are more difficult to correct because they have not been addressed. Less frequent inspections also yield a result where once every three to four years the property owner fixes and corrects problems and then lets general maintenance slide until the next inspection. The most significant issue is the experience of other communities. That experience indicates that inspections of about every two years yield the results of improved property appearance. Designing a program that in some way rewards good • rental property owners by not requiring as frequent inspections is quite troublesome. First, it should be noted that those property owners that do not maintain • their property well are more likely to be inspected more frequently in any case. Second, designing a program that provides less frequent inspection for well-maintained property may sound good in theory, but is difficult to implement in practice. Specifically, the continuum for property maintenance is likely to indicate that a certain percentage of rental property owners do maintain their property very well, and a certain number are extremely lax. The most significant portion of,rental property would fall in- between these extremes. It is difficult to design standards that would be acceptable to those who fall into this immediate category. Staff and the Council could become embroiled in frequent controversies regarding qualifications to enter into this special category. • Number of inspections. Staff estimates that the number of inspections required is based on data provided by our Community Development Department. Their information lists 4,575 apartment units, 374 duplexes, and 500 non-homesteaded, single family homes in the city. Home sales in the city have averaged about 500 a year, with a range from 200-100. • Our-inspection experience with current building and fire inspection indicates that each apartment building and house will require 1.5 inspections. That is, for every two inspections that we perform, one will require that we do a follow-up inspection. For the apartment unit inspections, we will need 1.2 inspections. The annual total number of inspections required to enforce this ordinance will be approximately 7,549. Staff estimates that on an annual basis, it is estimated that approximately 2500 hours will be spent conducting inspections. This is based on the experience of St. Louis Park where they have a similar program and this ordinance is similar to the one in St. Louis Park. Staff is recommending that to operate this program with the assumption that inspectors will be devoting 20-30 hours per week doing the work, and the balance used for report writing, filing, training, lunch breaks, etc., two inspectors will be required to implement the program and one administrative clerk. e Program Costs. Nearly all of the programs cost is personnel cost. The annual salaries for the positions other communities who have similar programs. The amounts reflect the entire cost of each position; • i.e., salary plus all fringe benefits such as vacation, holidays, health, life, pension, etc. Also the amounts are based upon salary ranges from communities that use a similar system. Housing Inspectors (2) S 70,000 Clerical (1) 22,000 Administration, office supplies, forms, etc. 20.000 TOTAL $112,000 • Revenues. The revenues are based on the proposed fee schedule in the attachment. The schedule considers the time needed per inspection, point of sale (apart- ment building and rented houses will take the most time -- about 45 minutes); therefore, these occupancies have a higher fee than apartment units which will take less time. • Evaluation. Council has directed staff to propose an evaluation process for this ordinance. There are two approaches to the evaluation process that could be used. One could be as described in the letter from Decision Resources, Ltd., which is • attached. The other could be something much more simple to include that staff would simply keep track of the number of units inspected, the amount of violations that have occurred, the number of violations corrected within the time frame given, and then on reinspection in subsequent years, whether or not those violations continued to reoccur. It is staff's belief that once people get used to an ordinance similar to this, the violations would not reoccur, but that in fact people would begin complying and, as such, repeat violations would be 'less frequent. Recommendation: Staff recommends a first reading of an ordinance that will license rental properties to include apartments, multi-family residences, duplexes and an ordinance which provides for a point of sale inspection by city building officials prior to the transfer of the residence to a new owner and that the ordinances be scheduled for second reading, public hearing for June 12, 1989. Basis Of Recommendation: Council has previously directed staff to prepare this ordinance for first reading. In that direction, the Council also directed staff to publicize the proposed ordinance which was done in the last edition of Your City/Your Schools and staff has received no unfavorable comments as a result of that. The recent community survey indicates strong support for reconsideration of this particular ordinance. The HRA and the Council has also stated renewed interest in this ordinance. Alternative Recommendations: 1. The City Council could decide to do nothing; that is, leave the current ordinances in effect essentially meaning that staff could only do inspections based on complaints. 2. The Council could direct staff to research additional ordinances relate'd to this topic. Discussion/Decision Mode: The revised housing maintenance licensing ordinance has been submitted for first reading at the May 8, 1989 Council Meeting. Y 9er JDP:sae Respectf ly submitted, James Prosser Cit M a ??-?Y Description of Ordinance Provision lmtn Ctr Btn LPk Rich • PURPOSE STATEMENT general x x - specific - character & stability x - prevent adverse conditions x - set minimum standards x - prevent overcrowding x - reserve value of land/buildings x INTENT STATEMENT Permanent mode of protection x Raises revenue to defray costs x CERTIFICATE REGISTRATION REQUIREMENT x ADOPTION OF UNIFORM HOUSING CODE x x APPLICABILITY STATEMENT bldg used as residence (single family) x x x premises used as residence (single fam) x x accessory structure (single family) x x X bldg as residence (2 or more families) x x x rooming houses x x lodging/boarding houses x x house trailers x x other temporary housing x DEFINITIONS x x x x MULTI-FAMILY HOUSING Registration Requirement x x x x x form provided by city x x x x x name & address of owner x x x x telephone number of owner x x name & address of mutli-dwelling x x x x number of units x x x kinds of units x name & address of maintenance person x x name & address of owner's agent x x x other info as council requires x name/adrss/phone of vendee if K for d eed x x tenant inquiry/complaint process x # of bath/toilet facilities shared x height in number of stories x construction of exterior x total floor area of building x total area of off-street parking x Annual license registration x (form ) x Biannual license registration x (code )x FEES single family(*=at point of sale) $0 $25 $0 $35* $50 Description of Ordinance Provision lmtn 0Ctr NBtn PLPk ?Zich 7V 4)V' duplex-owner occupied (" it ") I $0 I $251 $0 1$35*1$50 duplex-not owner occupied(" " ") $361 $351 $0 $35* $50 apts/townhouses/multifamily Bloomington: $36 for first two units, $6 each add'1 Brooklyn Ctr: $20 per bldg. & $5 each add'1 unit New Brighton: $5.50 per unit with a $15 minimum St. Louis Pk: $30 for 1 - 2 bldgs $60 for 3 - 9 bldgs $120 for 10+ bldgs Richfield: $50 per bldg. plus $7.50 per unit ANNUAL INSPECTION FEES PER UNIT 3 - 5 units $6.00 6 - 10 units 5.50 11 - 20 units 5.00 21 - 40 units 450 . 41 - 100 units 4 .00 101 - 200 units 3.50 201 & more units 3.00 LATE FEE ON LICENSE Bloomington: $0 Brooklyn Ctr: 5% of fee per day New Brighton: 100% of fee after 30 days St. Louis Pk: 10% of fee per month • Richfield: 10% of fee per month Posting of License x x x x License transfer fee $10 $10 yes Revalidate Suspended License 50% 50% Revalidate Revoked License 100% 100% Discrimination Prohibition x Occupancy Register Required x Waiting Lists, Vacancies, Complaints x Posting to Prevent Occupancy x x Appeals Provision/Process x x Entry to Inspect x x x x Search Warrant x x Code Compliance Mandate x x x MINIMUM STANDARDS Toilet x x x Bathtub/shower stall x x x Kitchen sink x x x Garbage containers x x Garbage removal responsibility x x x Adequate ventilation x x . Number of electrical outlets per room x x x Heat in winter at 68 degrees F x x x x Lights in public walkways x x x Sound (weathertight/no rodents)structl re x x Description of Ordinance Provision lBlmtn to 6LPk Rich • 40 Sound interior Sound foundations Sound exterior walls Sound roof Sound windows, doors & frames Yards maintained Common areas maintained Open spaces maintained Parking facilities maintained Outside lights Snow plowing Snow shoveling Fire prevention Entrance door locks Security responsibility Security enforcement Screen & storm doors & windows Pest extermination Rodent harborage prohibition Rodent food prevention Sanitary fixtures & facilities Kitchen cabinets/shelves Kitchen counter/table Stove Refrigerator Lavatory sink Stairways, porches & balconies Handrails Access to unit Building entrance locks 1 window per habitable room 60 ampere, 3 wire electrical service 1 branch electric circuit per 600 sq ft Ceiling lights Light switches Rodent proofing Fence maintenance Accessory structure maintenance Safe building elements Functional facilities components Grading & drainage Service discontinuation prohibition Occupancy per sq ft One.family per dwelling unit Ceiling height Bathroom/sleeping room access Non-hazardous deficiencies exempt x I x x x x X x x x x x x x X X X x X X X X x X X X X x x x x X x x x x x x X x x X X X X x x X X X x x x X X X CORRECTION OF IMMEDIATE HAZARDS Heating systems Water heaters Electrical systems Plumbing systems • Structural systems x X X x - x x X X X x x X X X X X X X X X X X X X X X X Description of Ordinance Provision lmtn Ctr Btn LPk ich Refuse/garbage/waste I x x Infestation x Smoke detectors x Repair/replace to Code x Code enforcement x x Shared facilities x Hot water availability x Window specifications x x Bathroom windows x x Sanitary plumbing x Bathroom floor surfaces x Basement window screens x Basement space made habitable x Written notice of violations x x x Posting emergency telephone numbers x Securing vacated dwellings x Penalty for non-compliance x Public authority to remedy non-complian ce x Alternative sanctions i x ROOMING HOUSES License form provided by city I I x Display permit x Notice to city of succeeding ownership I x Annual permit x Appeals process i i x Written notice of violations x 1 toilet, sink & tub/shower per 8 pers. I x Bed linens ! ! x Sleeping room floor space x Egress X Maintenance i x ****If you have questions, suggestions or would like' additional information, please call Melanie Ault at Richfield City Hall, 869-7521. CITY OF RICHFIELD Is Proposed Property Maintenance Ordinance Meeting July 12, 1989, 7:00 p.m. - Public Testimony Received Order of Testimony: NAME ADDRESS PHONE Sid Sanford 7000 Portland 869-5576 Deborah G. Olsen 6901 Penn (rental address) Dorothy Lundquist 7225 Garfield (Lg Women Vtrs) 869-6829 Dean M. Akins P.O. Box 35383, Edina 55435 Dick Ziemer 6229 Xerxes 866-1932 Leo M. Lehn 6901 Penn 861-1935 Kaarin Erickson 2220 E. 66th, #2 Don & Mary Erickson 13660 Pennock Av., AV 55124 Betty Nordstrom 7141 Nicollet 866-5195 Prudence Meyer 8532 Park Knoll Cr,Blm,55438 944-3888 Duane W. Korum (letter) James D. Picha 7234 - 18th Av. 866-9259 Vern L. Luettinger 7045 - 14th Av. 869-0888 Deborah G. Olsen (see above) Edward Gerszewski 7426 - 12th Av. 866-6771 Stan E. Dzik 6837 Harriet Av. 866-7480 Paul M. Kaiser 7233 Sheridan Av. S. . Jane E. Schoewe 7601 Logan Av. S., #103 861-6919 Leon Lunas 7508 Bryant Av. S. 866-2015 (repeats) Dean Akins Dick Ziemer Ed Gerszewski Mary Erickson Sid Sanford Was concerned about what it would cost to enforce the ordinance, and the number of inspectors it would take. What kind of standards will be used? Minnetonka's ordinance has minimum standards for electrical, plumbing, etc. If this is what is in mind,'it will be necessary to hire professionals to do the inspecting, and that will be very costly. Q: What qualifications will there be for the inspectors? Q: What standards will appear in the Code? Q: Will the inspectors be licensed in each area? Since there are a lot of questions, the ordinance should be set aside until they are answered. There are a lot of potential conflicts with State law, and that means litigation is assured. . Senior citizens would oppose this ordinance. They would see it as a tax on them. Deborah G. Olsen Q: Why are we here? Q: How did the committee get appointed? Dorothy Lundquist Representing the Richfield League of Women Voters. Be aware that St. Louis Park has had timing problems in inspecting single family homes before closing dates. The League also looked at a community similar to Richfield, called Hazelcrest, Illinois. There, the problems were addressed.before they got too large to handle. Dean M. Akins Is from Excelsior. Has 13 buildings scattered throughout Richfield; 100+ units. Brought up Bloomington's property maintenance ordinance. There has been no change in inspections after the ordinance went into effect, except now it just raises money for the city. Bloomington charges the businesses, that way, it keeps the mill rate lower and charges someone else. Richfield, now, has as good or better inspections than Bloomington. Richfield should: 1) define the problem; 2) look at the problem, and 3) come up with a solution to solve the problem. What's wrong with the job the inspectors now are doing? Yes, we all want good housing. But! Don't' have 40 people pay for all of the apartments! If they charge with new inspectors, taxes should go down by getting rid of the current inspectors. • City inspectors, and fire inspectors, now inspect annually, plus each renter inspects the unit at the time of the initial showing. Don't make it a sham like Bloomington. Dick Ziemer Owns a double bungalow and lives in one--half. Q: Why pattern ourselves after St. Louis Park? He's not enamored with them; Richfield looks good. Single family dwellings are the problem, not the owner-occupied rentals. The proposed ordinance is discriminatory. The same Codes should apply to all properties. Why single out rental properties as some sort of stigma? Richfield already has a lot of codes on maintenance. The people who inspect with them - are they not doing a good job? Are they doing it poorly? There are flaws in the current ordinance. The problems are the eyesores, like tent campers parked on the grass, not the maintenance of buildings and yards.'-`The ordinance is just another tax and we've had it. The ordinance is getting too far into our personal lives. Leo Lehn Is a tenant. He contributes money in each month's rent which goes to the property tax bill. Private homes have problems. Tenants have low and/or fixed incomes. The price of the ordinance might get to be too much to live in the building. The situation does not exist (and it's stupid) to pay $500 a month • and be afraid to tell the landlord to fix something. There are a number of folks through there to inspect. Because of that, all is well and up to Code. This ordinance will sock it to 99% of the rental places for the 1$ that is the problem. He's not-going to let anyone in to inspect. The inspectors may come back to the property as salesmen, to rob the place, etc. Kaarin Erickson Has been a tenant since April, after finding a place that accepts kids. There have been many problems, like water leaking then mildewing because it isn't fixed, sewage leaking onto carpet, etc. The landlord won't fix the problems though he is there each month to collect the money. If an inspector were to go through there and fine the landlord, more power to him! Cars sit outside, grass has been cut only twice this year, a tree hasn't been cut... Don & Mary Erickson They own two Richfield properties and live in Apple Valley. The inspections already exist, and requiring more would only be a duplication. Richfield is only missing out on a money generator! The current Code covers Kaarin Erickson's problems. A mortgage company also inspects their properties each year too. Their tenants want to be left alone, and have no more inspectors. If there is a problem, they call the Ericksons and they come and fix. it. Richfield has a contract with Bloomington for townhomes and rooming house inspections? They've never seen a Bloomington person! (Ch. 3, subd.2) Richfield already has the ordinance inspections and the owners are already paying for it. They • already pay $1,000 per unit, and some are less than 400 sq. ft. If the ordinance is adopted, they may have to defer making improvements to their properties-because they will not be able to afford it. All lose in that situation. They have not raised their tenants rent in 2h years, yet taxes have risen, as have water bills, sewer, etc. The ordinance should look only at the properties that are the problems. Pinpoint those problems and issue citations. The inspections are already threatening. Betty Nordstrom She owns her own property, but favors the ordinance.' All around her are rental properties and she has trouble with them. They don't shovel snow, etc. Prudence Meyer Lives in Bloomington. Thinks that inspecting all properties every three years would be sufficient., and only those that need inspections. Then decide whether you need to go back, if things are not fixed, and go back the next year, or in two years. Piggyback the current inspections with the ones in the ordinance and reduce the amount of inspection. Give advance notice to landlords and tenants. Let the landlords be able to be with the inspector. That will give the landlords an opportunity to discuss any problems with the inspectors so the landlords know exactly what the inspectors are talking about. Fees should be spread over all taxpayers because all taxpayers benefit. The . ordinance fees are too high, higher than other cities. If the '.3/ feeling is that the fees will be set high so they do not have to be raised later, that should change. Fees should be set at what it now costs to do inspections, then let the fees raise as the costs raise. Inspectors should be experienced and not college interns. In Bloomington, she suspected they sent a college intern to a double bungalow, and not an inspector. The intern. did not know paint from stain. That intern did not want the landlord there so he could talk to the tenant about the problems. OK, she can understand that need, but the landlord wants to know what is wrong. Bloomington also did not inspect a neighbor who was worse off. Their excuse was that they could not get a hold of him. Therefore, an Advisory Group should be formed that works with the inspector, in an ongoing process, to improve the process each year, step it up, etc. It would also provide a means for more input. Jim Prosser CLARIFICATION The $70,000 salary is for two (2) people, and includes benefits. • Duane W. Korum (Letter read by Tom Harms.) If the ordinance is passed, it would be good and enforced. There is now deteriorating housing, loudness, lots of police calls, etc. The current ordinances do not go far enough. They do not address (chronic) behavior problems. A behavior ordinance is not unenforceable - St. Paul has an ordinance that landlords can't rent their properties if they rent them to drug dealers. Not all landlords are responsible people. The ordinance is a good value as seen through the tenant's eyes. James D. Picha Is a property owner. Backs the ordinance 100$. It helps the City, the staff, and is a good working tool. He is proud of Richfield, and agrees with the letter by Corwin. The money is a problem, but it just has to be dealt with. If you own the property, you have to face that. Vern L. Luettinger Is an HRA member, but not speaking on their behalf. Thinks it is necessary to have a Truth in Housing ordinance. He tried to get one before, got heat, and it did not go through. Knows of someone who bought a home, then was in tears because,,everything had to,be rewired, replumbed, etc. There are plenty of good landlords, and plenty of not-so-good tenants, and some apartment owners are in terrible shape. The HRA is helping to keep 100% occupancy in buildings, and the present inspectors should be there. The ordinance should be carried out and passed and gone one step further. The ordinance should cover all point of sale homes. Deborah G. Olsen Owns rental property in Richfield, lives in Edina. If a house needs to be gutted when the house is old, something is wrong with the house. The ordinance is discriminatory. All homes should be inspected. Why should some of the houses be exempted? You could • be selling dope! Sounds Chicago-y. She just doesn't like it. One or two inspectors would not be able to inspect all of the properties in one year. And they would need more secretaries, filing, desks, space, etc. than what is listed. It would be its own little bureaucracy within the City's bureaucracy. Next they will need computer data machines and follow up to make sure it gets done. The taxing is too hard. Jim Prosser CLARIFICATION The ordinance would enforce the current property Code. But currently, we do not have the ability to go inside units. The ordinance would include rental property, owner occupied rental property, and owner occupied single family homes at point-of- sale. Edward Gerszewski Is an owner of a double bungalow. Q: Why tax so high for rental properties? Q: Is the ordinance just a money making tool? Q: What do we get for it? Nothing says it is guaranteed yearly. A Brooklyn Park owner is supposed to get inspection yearly. All he gets is a piece of paper, and only inspected one out of three bungalows. Q: Why is there a hookup charge with vacancy? When a tenant • moves out and the property is vacant for a month, he has to pay $13 for a customer hookup charge for his water and sewer bill. There is no charge with Minnegasco. We all should have all homes inspected every year. The same things (maybe worse) could be going on in nonrental properties. Q by Committee to him: How often should inspections be done? his A: none, or as many as are done on your home. He does check out his tenants before he rents out to them. He pays $25 to a rental agency to make sure the tenants are drug- free, are decent, etc. Stan Dzik Backs the ordinance 100%. Backs Truth in Housing 100$. Buyers should have protection. Paul M. Kaiser Support's the point-of-sale portion of the ordinance. Does not like the interruption of the inspections. Should have current personnel work out interdepartmental politics. Jane E. Schoewe Is for the ordinance. She has no landlord experience but has tenant experience, both good and bad. Analogizes to passing seatbelt ordinance. She wore her seatbelt even if the law was not going to pass. Some landlords are good owners and have confidence in their renters. Some others need a push, and it may look like a law to them. All should be happy with the ordinance. Tenants will get what they can for their rent money. The ordinance should allow for less frequent inspections based on how • good the property looks. If it looks good, give them a year off, but give everyone a first go around. The ordinance should include a point of sale, too. Give advance notice to-landlords. and renters when the inspector will be out. Let the landlord go too so the landlord can know first-hand what the problems are. Only two inspectors? It may take more the first time through. More landlords should have been at tonight's meeting. Their absence says something about them. Leon Lunas Is on the Planning Commission. Saw an S&I which included a listing of complaints regarding renters complaining about their facilities. Review it and keep it in consideration. REPEATERS Dean Akins Bloomington's ordinance has not addressed their problems. Before you decide on a solution, define the problem! Yes, there is a problem with some bad landlords, but he does not know if Bloomington's ordinance solves the 3 or 10 bad landlords. The ordinance does not cover some of the things some folks want. Make the ordinance complaint based. If you get a number of complaints, come out, and fine the landlord. He should pay. Penalize that particular landlord. First you need the ordinance to inspect though. As in Bloomington, it would help him to register with the city the people who already files his maintenance manager purposes. There has been no denial o like entrance by inspectors even with are not working the ordinances. Give so. live in with the f access, notice. them the his building. He city for emergency but tenants don't Current inspectors authority to do Dick Ziemer Charge only the bad landlords. But be careful! Sometimes landlords are not informed of the problems, and the tenant might have done it! The landlord has to get rid of the bad tenant. The city could help by having an ordinance to let the landlord throw the tenant out after certain problems. The fees become a financial burden. Taxes cost more than 2 months rent for the other side of his bungalow, plus his side! He can't get a decent return on his investment. It is a good idea to know who owns the buildings, and he has no problem with registering the other resident. He does discriminate who he rents to because he has to live next to them. His one year lease specifies the number of people who can live there. There are loopholes in the current ordinances regarding: conduct, number of people occupying, parking, vehicles and exterior appearance. Ed Gerszewski Asked for the committee members' and staff's names (Mark Little not there tonight). Saw a lead paint program on TV. The 46 inspectors go in, there are kids dying of lead paint poisoning, and the inspectors did not have the proper tools. Mary Erickson She is still opposed, but if the inspector comes through, and she has a one year lease, and the inspector determines that she should get rid of her tenant, will the city assist with legal service? Landlords do not have as many rights as do tenants. Think about this. 9:05 pm Meeting Adjourned. 0 r ." City of Richfield* 6700 Portland Avenue • Minnesota 55423 City Manager Mayor Council James D. Prosser Steve Quam Edwina Garcia Ivan Ludeman Martin Kirsch Michael Sandahl TO: Julie Holmquist, Editor. FROM: James D. Prosser, City Manager DATE: June 16, 1989 SUBJECT: Meeting Notice Enclosed is a copy of a meeting notice to be published in the July 5th edition of the Richfield Sun/Current. 0 -*?I'-Jx ? Telephone 869-7521 (612) An Equal Opportunity Employer i PA N E W S James D. Prosser City Manager 869-7521 Friday, June 16, 1989 FOR IMMEDIATE RELEASE 4 Property Maintenance Committee Seeks Comments The public is invited to present comments on a proposed property maintenance ordinance for the City of Richfield. Public testimony will be received by the nine-member Property Maintenance Committee on Wednesday, July 12, 1989 at 7:00 p.m. at the Richfield City Council Chambers, 6700 Portland Avenue South. The proposed ordinance is to adopt a point of sale/rental property licensing procedure. The ordinance would require periodic inspections of rental properties including apartments, townhouses and duplexes, as well as provide for point of sale inspections for owner-occupied properties. A? __3?1' 0 • 2A-Richfield Sun-Current-Wed., June 21, 1989 Meeting on controverisal ordinance set The public will have a chance to discuss a controversial city proposal at a meeting July 12. A proposed property maintenance ordinance is being studied by a committee ap- pointed by the City Council. Public testimony will be taken at 7 p.m. Wednesday, July 12, at the Richfield City Council chambers, 6700 Portland Ave. S. The proposed ordinance would allow city point-of-sale and ren- tal property inspections and licensing procedures. 4A-Richfield Sun-Current-Vbd., June 28, 1989 CO ity seeks comments . The public is invited to present comments on a proposed pro- perty maintenance ordinance for the city of Richfield. Public testimony will be received by the nine-member property maintenance committee at 7 p.m. Wednesday, July 12, at the Richfield City Council Chambers, 6700 Portland Ave. S. The proposed ordinance is to adopt a point of sale/rental pro- perty licensing procedure. The ordinance would require periodic inspections of rental properties including apart- ments, townhouses-and duplexes, as well as provide for point of sale inspections for owner-occupied properties. 0 opy ' S/ X42-29. Prooerty Mai?,teha„c Aadress Ym _ i C'r Y-38?'? ei4e c, . '' T a (? G fI ?. dry a me:5 -V... - So. ?-C-J? " r2-e /C-/ 1?1Gv a3 T -- j ?.. 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COMMITTEE RESPONSE TO QUESTIONS Public Testimony CITY OF RICHFIELD Proposed Property Maintenance Ordinance Meeting July 12, 1989 7:00 P.M. Sid Sanford Question: What standards will be used? Response: The City of Richfield has previously adopted the State's Uniform Housing Code. This code would be the basis of . inspections. Inspectors will be trained to administer that code. If the inspector identifies conditions that require a licensed inspector (electrical/plumbing), an additional inspection will be conducted by current, licensed, professional staff. Question: Cost? Response: The breakdown on the of this ordinance is attached. clarification, they can contact on our best estimate of cost to are within range of charges by cost and fees for administration Should anybody want the City staff. Fees are based administer the program. Our fees 3ther cities (see attached). 40 IS Page 2 Prop. Maint. Mtg. - 7/12/89 Dorothy Lundquist -- Representing the Richfield League of Women Voters Question: Timing problems for point of sale inspections. Support for "proactive" inspections. Response: The staff will meet with real estate agents to discuss a protocol which will permit timely inspection for point of sale. We concur that this ordinance will permit the City to help landlords and owners address problems before they become too costly to correct. is Dean M. Akins -- Is from Excelsior. Has 13 buildings scattered throughout Richfield; 100+ units. Question: Raise money for the City like it does for, Bloomington? Response: We will not comment on Bloomington's purpose, but only Richfield's. The revenue generated from the program will only pay costs to administer the program. No excess in revenues are anticipated. A separate cost/fee analysis can be prepared to demonstrate this fact, if directed by the City Council. .7 Page 3 • Prop.Maint.Mtg. - 7/12/89 Question: The ordinance is a solution to a problem that has not been identified. Response: The current ordinance permits us to conduct internal inspections on a complaint basis. The number of complaint generated inspections has increased dramatically over the past few years (additional statistical information will be furnished at the August 9 meeting). Staff experience indicates many more problems exist but are not identified. The proposed ordinance permits us to conduct proactive inspections. These inspections 40 will permit the owners to correct problems before they become too costly to repair. Generally, this type of ordinance has been recognized as a necessary element in a program to avoid urban blight within first ring suburbs. Question: It is currently a duplication of inspections. Response: The City conducts three general types of inspections: fire, HRA and complaint generated. Fire inspections are limited to common areas and exterior of buildings. No interior inspections of units are conducted. Fire inspections focus on fire code violations, such as: blocked fire exits, inoperable smoke detectors, etc. These inspections are conducted approximately once every one to two years. Page 4 Prop. Maint. Mtg. - 7/12/89 HRA inspections are conducted only on HRA units. These inspections are conducted approximately once a year. HRA inspections cover only 350 out 4,500 rental units. The proposed licensing ordinance would permit a more extensive inspection program than current City programs permit. Question: Why can't our current inspection staff perform these inspections? Response: The current building inspection staff consists of two • people. The chief building inspector is responsible for plan review for new construction and remodeling and general building inspection. The licensed electrical inspector conducts electrical inspections. Other specialist inspections (such as plumbing and mechanical) are conducted on a contract basis with employees from the City of Bloomington. Fire inspections and some minor building inspections are conducted by firefighters. The firefighters do not have sufficient available time to conduct additional inspections. The Code Enforcement Officer and the Community Service Officer (CSO) provide animal control service and conduct inspections for exterior code violations. They do not have time available to conduct interior inspections. C7 Page 5 • Prop. Maint. Mtg. - 7/12/89 Question: The proposed inspections will be duplicate of inspections by private insurance and mortgage companies. Response: Insurance and mortgage company inspections are generally limited to common areas. Those inspections often depend upon City inspections for more detailed building analysis. Dick Ziemer Question: The ordinance is discriminatory since it does not apply equally to owner-occupied property- 0 Response: The experience of staff is that generally there are fewer property maintenance problems with owner-occupied than rental properties. Our City attorney has advised us that the current ordinance structure is legal and not legally discriminatory. It should be noted that the owner-occupied portion of duplexes would be treated as single family and not rental. Question: Why single out rental properties for more frequent inspections? -? ` Page 6 Prop. Maint. Mtg. - 7/12/89 Response: (1) Experience indicates that tenants are not likely to contact the City regarding code violations for a variety of reasons. (2) Some tenants claim that the landlords are not responsive to correcting property maintenance problems. (3) Some tenants claim that they cannot readily contact their landlords regarding property maintenance problems. Question: Why doesn't the City use its Community Service Officers to perform inspections? 40 Response: Code Compliance Officer and Community Service Officers function reactively and proactively to animal control complaints and exterior maintenance complaints, such as long grass, junk cars and debris. The Code Compliance Officer and Community Service Officers are not trained building inspectors. Question: The City should concentrate its efforts on enforcement of other exterior appearance issues such as RV's, boats and camper parking. Response: Current ordinances do permit RV storage and parking in selected areas. Changes in the ordinances have been suggested to 0 the City Council. Page 7 Prop. Maint. Mtg. - 7/12/89 Leo Lehn Question: The cost of this ordinance is too high. Good landowners are being penalized unnecessarily. Response: For the vast majority of rental units, the cost of this ordinance will be $7.50 per unit, per inspection. It is true that some good landlords will pay for inspections which may be necessary for their units. However, there is no practical way to avoid this problem. Inspections are necessary to know that the units are properly maintained. Good landlords do benefit from the inspections because the community as a whole will be improved. Question: The inspectors may not be honest and may steal items from the apartments. Response: Inspectors will be screened by Public Safety staff and will be properly credentialed. In addition, tenants and/or landlords will be able to accompany the inspectors. Inspections will be conducted on an appointment basis. Kaarin Erickson - Tenant Question: This ordinance would require landlords to be more responsive. 111??- 4we Page 8 Prop. Maint. Mtg. - 7/12/89 Response: Yes, if the complaints of the tenant are related to property maintenance code issues. Don & Mary Erickson Question: Ordinance would be a duplicate. Response: Previously addressed. Question: Richfield has contract with Bloomington for some type of multiple family inspections. is Response: Contract is limited to hotel and motel establishments and doesn't include rental properties. Question: The ordinance should only look at problem properties. Response: Absent a complaint, the City does not conduct inspections of interior units for multiple family properties. This ordinance would provide the mechanism for that to occur. The ordinance would permit an opportunity to correct problems before they become unmanageable. r-I LJ Page 9 • Prop. Maint. Mtg. - 7/12/89 Question: Why are landlords spending $1,000/unit for taxes? Response: The City receives approximately 20% of property tax bill. The funds are used to provide police, fire, parks, road maintenance and other services. Betty Nordstrom Question: Generally supports the ordinance. Prudence Meyer Question: Suggests less frequent inspections. Response: Inspections will likely occur once every one to two years and our staff experience indicates that that frequency of inspection is required in order for property to be maintained. Question: Coordinate City inspections. Response: To the extent possible, City inspections, HRA and fire will be coordinated. Page 10 • Prop. Maint. Mtg. - 7/12/89 Question: Give advance notice of inspections. Response: Landlords will be advised of inspection schedule. Question: Permit landlords to accompany inspectors. Response: Landlords will be invited to accompany inspectors. Question: Cost of program should be borne by general taxpayers and not owner fees because entire community benefits. Response: There are insufficient general revenues to permit payment from general taxes. See attorney's report dated July 10, 1989. Question: Richfield proposed fees are higher than other cities. Response: Our analysis indicates that we are within range of other cities. Question: Inspectors should be experienced. Response: The City will hire qualified inspectors to conduct • these inspections. We do not intend to hire interns. 1? ?y • Page 11 Prop. Maint. Mtg. - 7/12/89 Question: Advisory Committee should be formed. E Response: The City will implement an evaluation component as part of our inspection program. Duane C. Korum Question: The ordinance should deal more with behavioral issues in rental property. Response: There are sufficient City ordinances and State Statutes that deal with these issues, including a recent Statute that specifically deals with drug dealing and landlords responsibilities. James D. Picha -- Not a rental property owner; a property owner that lives next to rental property Comment: Supports the ordinance. Vern L. Luettinger Question: Generally supports ordinance. Should cover point of sale. • 4V-J,-e ? Page 12 Prop. Maint. Mtg. - 7/12/89 Response: The ordinance does cover point of sale. Deborah G. Olsen Question: Ordinance is discriminatory Response: See previous response. Question: All homes should be inspected. Response: See previous response. Question: The proposal does not include sufficient staff. Response: An analysis indicates that our proposed staffing level is appropriate. Inspections will be conducted approximately once every one to two years. Staffing may need to be reexamined after a period of time. Edward Gerszewski Question: Is the ordinance a money-making tool? Response: No. Revenues will offset expenses. 0 Page 13 Prop. Maint. Mtg. - 7/12/89 Question: What do we get for it? Response: Inspections will occur about every one to two years. Reports will be provided to the landlords. Question: Why is there a hookup charge? Response: There is a charge for establishing a new water account and initial water meter reading. • Question: All homes should be inspected. Response: See previous response. Stan Dzik Comment: Supports the ordinance. Paul M. Kaiser Comment: Supports point of sale portion of ordinance. Jane E. Schoewe Question: Give advance notice to landlords. Response: Advance notice will be provided. 0 • Page 14 Prop. Maint. Mtg. - 7/12/89 Question: Permit landlords to accompany. Response: They will be permitted. Question: Ordinance should include point of sale. Response: It does. Question: Only two inspectors? • Response: Staff's opinion that that will be enough at this time. Question: Less frequent inspections. Response: See previous response. Leon Lunas Question: Listing of complaints regarding renters. Response: The property maintenance inspection activity report will be supplied at the August 9 meeting. Dean Akins Question: Limit ordinance to problem properties. 0 16?? _ 5-?; Page 15 Prop. Maint. Mtg. - 7/12/89 Response: (1) It's difficult to identify problem properties without conducting regular inspections of unit. (2) Limiting application of ordinance would compromise its primary purpose which is to prevent problems before they become too large to manage. (3) Problem properties will receive more frequent inspections. Should the problems not be corrected, the City will seek more appropriate legal actions. Question: Require tenants to be registered with the City. 0 Response: This provision would place a significant clerical burden on City staff with uncertain benefits. Question: Give current inspectors authority to enfoce the codes. Response: The ordinance would do so. Current inspectors will not be able to handle the additional inspections, however. Two additional inspectors are needed. Dick Ziemer Question: Charge only the bad landlords. 0 • Page 16 Prop. Maint. Mtg. - 7/12/89 Response: Previously covered. Question: Revise ordinance to place greater responsibility for maintenance with the tenants. Response: Current State law doesn't permit this type of provision. See attorney's letter dated July 10, 1989. Question: Current City ordinances should be strengthened. Response: City will review suggestions for modifying ordinances as appropriate. Mary Erickson Question: Will the City assist with evictions? Response: No. There are State laws to assist. 0 CITY OF RICHFIELD Proposed Property Maintenance Ordinance Meeting August 9, 1989 7:00 p.m. ATTENDANCE: Thomas Harms, Chairman Pastor John Chell Ken Kunz Ernest Lindstrom Matt Little Bernie Mittelsteadt Pat Rickert George Seltz City Staff: Jim Prosser, City Manager John D. Erskine, Director of Public Safety Betsy Christensen, Health Administrator John Dean, City Attorney Melanie Ault, Administrative Aide Linda Vukelich, Administrative Aide 110 The meeting was called to order at 7:00 p.m. Chairman Harms stated the purpose of this meeting was to review the proposed property maintenance ordinance, to consider the comments from the public hearing, and to consider suggested additions, deletions and changes. Ernie Lindstrom suggested the following changes: - The ordinance should include a point of sale inspection for individual and two-family homes. Page 2 • Prop. Maint. Mtg. - 8/9/89 - The ordinance should require registration instead of licensing. Registration should require disclosure of who's in charge of property, an occupancy registry, and incorporate penalty for failure to register. - If the authority is not already there, make sure that police and fire have the broadest power of inspection. He indicated the objections that were sighted at the open meeting seemed to be to frequency and cost of inspections. Mr. Lindstrom stated the changes would overcome many of the objections raised at that meeting. Chairman Harms stated that the difference in the point of sale inspection ordinance and the registration is the ability to revoke license if ordinance compliance is not achieved. Mr. Lindstrom suggested that inspections could be performed by independent contractors, avoiding the need to add City staff. Mr. Lindstrom stated that he has no strong feelings about outside inspectors, but thinks that $100 would be sufficient. Page 3 ql?, Prop. Maint. Mtg. - 8/9/89 Chairman Harms questioned whether the quality would be good for that price. Mr. Lindstrom emphasized the existing power of the police and fire to inspect. He indicated the difference is that a license ordinance would impose a requirement to obtain a license in order to rent your property. Chairman Harms said that there is nothing that says every building has to be checked every year. -. Matt Little asked if the registration Mr. Lindstrom is speaking of is a one-time regulation. Mr. Lindstrom responded that it would be annual. Chairman Harms indicated that he does not see the City needing to inspect every building every time they get a license. He would like the City to have the right to inspect because of the appearance, problems, and complaints or safety, but not require the City to inspect every apartment building and apartment unit annually. s Page 4 Prop. Maint. Mtg. - 8/9/89 Mr. Prosser said that under the registration system, the City wouldn't have authority to accomplish what the ordinance intended. The City currently does not have the capability to determine which units are problem units. In order to find the problem units, proactive inspections must be conducted. He indicated the registration suggested wouldn't accomplish this. He stated the licensing inspection would provide a regular, periodic inspection process to help assure maintenance of a building before there are problems that are too expensive to be corrected. Chairman Harms commented that there may be a long period of time between when a license is given and when that property is inspected. He felt that the ordinance should define that the license is conditional until the inspection. Then, if upon inspection the property is not in compliance, the license can be revoked. A committee member asked if it is possible to require the applicant to provide the name of someone that the police and fire can call to get the list of tenants. This would allow the police and fire to check with that person if names were required. • Page 5 Prop. Maint. Mtg. - 8/9/89 It was indicated that property owners could provide that information to the City. Mr. Prosser indicated that to maintain tenant information would be a time-consuming responsibility for the City. Mr. Lindstrom commented that he wasn't convinced that the property creates the problem, but that people do. He stated that if someone is willing to provide the tenant information, then he can't see why it is a burden to City Hall. • Mr. Prosser indicated that it would be necessary to update the information every month. Chairman Harms indicated that it would be good to have that information but the police would be the ones that need the information. Jack Erskine indicated that there are data privacy legal issues involved in having that information on individuals available. • Page 6 • Prop. Maint. Mtg. - 8/9/89 It was discussed that it is not a function of this inspection program to maintain lisst of tenants, but rather to look at getting registration information on who owns the property, etc. Mr. Erskine referred to the handout information. He emphasized the inspections listed on the front page are complaint-generated. Mr. Erskine stated that an aggressive approach by Public Safety in the last few months accounted for part of the increase in complaints. Increased publicity about property maintenance in • the Richfield Sun Current and Your City/Your Schools also generated more calls. Mr. Erskine noted that most of the complaints are exterior problems. A committee member asked, "what happens after you pull the license when there is a violation?" Mr. Prosser stated that in other communities, what typically happens is an inspection is undertaken and a number of areas are identified that need to be corrected. The owner is invited to be present during all inspections so that they are aware and see the Page 7 • Prop. Maint. Mtg. - 8/9/89 problem areas. Written notification would then be given with a time frame to correct the problem(s). If it is a life- threatening problem, then immediate action would be required and a reinspection date would be established. If a violation is not corrected or there is a refusal to correct, the City would initiate action regarding that property code item or process to revoke the license. Erskine stated that the staff would present the revocation recommendation to the City Council. If the Council upholds the • revocation, the property owner could not operate the building until they correct the problem(s) or sell the building. This could mean the people occupying the building would have to vacate. George Seltz stated that Mr. Sid Sanford, indicated that Minnesota Statute 326 requires certified electricians. He asked if the City would have to hire licensed inspectors. Mr. Prosser stated that the inspector would be trained to identify a potential electrical problem and refer it to the licensed electrical inspector. Mr. Prosser said that typical problems would be electrical extension cords under carpets, open outlet boxes. Page 8 • Prop. Maint. Mtg. - 8/9/89 Mr. Erskine indicated that a licensed electrical inspector is on the Public Safety staff. George Seltz indicated similar ordinances have provisions that allow the tenant or person in charge to refuse the inspection and asked whether such a provision should be included in this ordinance. John Dean said that the terms of the owner having the right to refuse an inspection is not covered in the present ordinance. He • recommended that no such provision be added. He stated that if the City encounters a situation like that, he has confidence that the police would get a search warrant. He indicated that the owner's right to enter would also be an available method. Mr. Seltz asked if failure to include the provision would invalidate the ordinance. Mr. Dean said that it would not. Mr. Seltz commented on Subdivision 9, Remedies, indicating that in some cases each day a violation would constitute a separate offense. 0 Page 9 Prop. Maint. Mtg. - 8/9/89 Mr. Dean said it may be a good idea to change the language in that area to include the fact that giving false statements is a misdemeanor. Pat Rickert stated that any appeal process should be a function of the City staff rather than going back to the City Council each time. Mr. Erskine indicated it is an infrequent occurrence for an appeal to go before the Council. • A committee member asked how many of the rentals the City has a problem with. Discussion was held regarding how many rental properties are problems. Mr. Prosser indicated that approximately 20% were problems; 60% are adequate, but have some problems that may develop into costly items if not corrected; and 20% with no problems. Mr. Erskine stated that most owners are very responsible and want the problems corrected as much as the City. E Page 10 • Prop. Maint. Mtg. - 8/9/89 Mr. Rickert asked what type of penalty the City can use to control the absentee property owner and repeat offender. Mr. Erskine responded: (1) Prosecute as a criminal offense (2) Prosecute as a civil case (3) License revocation. He indicated the staff understands the concern about the building staying vacant if the owner is put out of business. He stated most owners respond quickly when notified to correct problems. • Mr. Prosser indicated that no follow-up procedure is available right now. The city is looking at the development of some type of housing code. Mr. Rickert asked if the inspections would require substantial follow-up work. Mr. Erskine stated that the fee would cover this expense. Mr. Prosser said that it is built into the estimate cost of the program, especially during that first year. 0 Page 11 Prop. Maint. Mtg. - 8/9/89 Mr. Little stated that he noticed St. Louis Park has a sliding scale fee based on the number of buildings and also the number of units. He asked if there was consideration given to a sliding fee scale. Mr. Prosser said that St. Louis Park wasn't real satisfied with that basis. Ken Kunz said that the major concern of most building owners is the cost of $7.50/unit and $50/building. He indicated they would • like to have input to reduce the cost and a compromise of a two year inspection. Chairman Harms stated that the ordinance will be reviewed at this time and any suggested changes would be voted upon. Motion and second to amend Subdivision 2 to make registration required instead of license required. Mr. Lindstrom said that there would not be a requirement for a regular inspection, but Police and Fire would have authority to inspect buildings and to require them to submit same information. He suggested obtaining the name of the owner and tenants along is with the registration. Page 12 Prop. Maint. Mtg. - 8/9/89 Chairman Harms commented that the information about who owns the property can be obtained through the license application. He stated that if there is no license, there is no ability to inspect inside the buildings. He said there is a need to have the ability to revoke the license. Mr. Lindstrom said could make it a misdemeanor not to register so citation can be issued and secondly, the City can inspect whether license or registration. Mr. Kunz commented that it puts the burden on the landlord while it should also be as much the tenants responsibility. He supported the idea of identifying the tenants so that landlords have documentation for evictions. Mr. Prosser emphasized that this would be a change of philosophical view. John Chell asked if any other cities have approached,this through registration rather than licensing. Mr. Prosser said that Minneapolis does. is Page 13 Prop. Maint. Mtg. - 8/9/89 Rev. Chell said that he favors having as much information about tenants as possible but stated concern about the rights of tenants. He advocated increased inspections over the existing program. Chairman Harms said the fundamental advantage over registration is that a license can be revoked if there is a problem. Motion failed 2-7. Motion and second that in Subdivision 2 language be added to • indicate that the license issued is conditional, subject to inspection and if not in compliance with code, license will be revoked. Motion carried 8-1. Subdivision 3 (1): Motion and second to add "or legally constituted agent" following the word "owner" in the first sentence. Motion carried 9-0. 0 Page 14 Prop. Maint. Mtg. - 8/9/89 Subdivision 3 (2): Motion to add the requirement that application be subscribed and sworn (notary). After discussion, it was decided that it would be a violation if false statements are given on the application. Motion failed for lack of a second. Mr. Erskine indicated that there is a statute that makes it a misdemeanor for anyone giving false information at the time of application for a license. Q Chairman Harms recommended that the Council review the form of the application in connection with the ordinance itself. Motion and second that the following items be included as a part of the licensing requirements: A - Include names of partners B - Corporation shareholders names C - Names of officers of corporation D - Name of individuals charged with responsibility of maintenance and management of the premises and additionally, that an occupancy registry be 0 part of the registration. ?_. Page 15 • Prop. Maint. Mtg. - 8/9/89 Mr. Seltz questioned whether it was necessary to have the shareholders names and stated concern that the registry might be an invasion of privacy. Mr. Lindstrom felt the list of shareholders is a way of finding those who really own the property. Motion and second to amend the original motion to reflect that instead of filing a register of tenants, it require the name of someone who would maintain that information and who could be 0 called. Mr. Lindstrom indicated that he didn't want City Hall to be in charge of maintaining the registry but only retain it in a file to be updated by the owner. Bernie Mittelsteadt asked if this information would be available to the public. Mr. Prosser said that if this was available to the public, the City would be required by law to furnish the information to anyone, which may create some problems. The motion on the floor was called to a vote. 0 Motion carried 7-1 (one abstained). Page 16 • Prop. Maint. Mtg. - 8/9/89 Vote was then taken on the motion as a whole to include the amended portion. Motion carried 8-0 (one abstained). Subdivision 9: Motion and second to include the language that "any person who violates any provisions of this section or makes a knowingly false statement in the application will be guilty of a misdemeanor." I* Motion carried 9-0. Subdivision 3 (2): Motion and second to add language to indicate that making a false statement at the time of application an result in revocation of license. Motion carried 9-0. Mr. Mittelsteadt stated that before issuance of license, a building official will make sure it complies with the code. The conditional license is same as a final license except that if inspection is made while a conditional license, the license could 0 be revoked immediately. Page 17 • Prop. Maint. Mtg. - 8/9/89 John Dean suggested that staff could investigate a provision to make it clear that there is no mandate for early inspection. Subdivision 3 (4): Motion and second to have the staff make change in language to make it clear that there need not be inspections each year in order for licenses to be valid. Motion carried 9-0. . Subdivision 6: Motion to add the language that license should be conspicuously, prominently and publicly displayed in the building. Mr. Kunz said there could be a problem of the license being constantly knocked down or taken off. Mr. Prosser said that the City wants the license to be readily available. Motion failed for lack of a second. Subdivision 7 - FEES: Mr. Seltz remarked that landlords have problems with real estate taxes, costs to maintain the buildings and now the costs of this necessary and important ordinance. How do we do this without 0 burdening the landlord? Page 18 Prop. Maint. Mtg. - 8/9/89 Mr. Mittelsteadt asked the difference between what the City gets on taxes on non-homestead property vs. homestead property. Mr. Prosser said that non-homestead would pay more in taxes than homestead, but the City doesn't receive more. Mr. Lindstrom said the problems are largely in single family homes rather than multiple unit buildings. He suggested the use of the Police Auxiliary to perform inspections. Mr. Little said that fees are predicated on the staff estimates of cost and it's not a profit making ordinance. He asked how can we have passed everything else and not agree on the inspection fees. Mr. Prosser said the fees are based on an average of one inspection every year. Chairman Harms indicated that the real concern is the cost. If the committee favors the ordinance, there is a way to generate fees, either out of general tax or assessing the landlords. 0 Page 19 Prop. Maint. Mtg. - 8/9/89 Mr. Seltz commented that the ordinance is a benefit to the entire community and the cost should be passed on to the entire community. Mr. Prosser said the State limits our taxing ability. He indicated the City dos not have the tax capacity to support this program. Mr. Mittelsteadt commented that the Fire Department is currently conducting inspections. • Mr. Erskine responded that the Fire Department inspects for fire code violations and are not qualified to do other code violations. John Chell asked how it is to be monitored. Chairman Harms said that a subdivision of the ordinance requires the Council to receive a report on activities. Mr. Prosser added that the city would audit and do an analysis of charges to determine that fees are appropriate. 0 Page 20 16 Prop. Maint. Mtg. - 8/9/89 Mr. Prosser indicated the real issue is whether or not to try to pay for this out of general property taxes or a fee. He stated the fee has to be set to recover the costs of the service. Mr. Kunz said that the Brooklyn Center fees are for a two year license. Motion and second to use the Brooklyn Center fee schedule. Motion failed. • Chairman Harms indicated that he was against choosing fees from another city when the staff have proposed a schedule according to our needs. Subdivision 10 - REPORT: Motion and second that the report due date change from January 1, 1995, to January 1, 1992. Motion carried 9-0. 0 Page 21 Prop. Maint. Mtg. - 8/9/89 Part II, Subdivision 3 - ISSUANCE OF CERTIFICATE. A comment was made that when police and fire are in the building, they will look for other violations. It was recommended to City Council to have inspectors look for every violation. Mr. Erskine said that if the inspector observes violations not related to this ordinance, the city can return but may have to • get a warrant. Part I, Subdivision 1 (5) - "Housing Code": Motion and second to add the following words to end of sentence: "_...and shall also mean for the purposes of this section all other codes and regulations of the City pertaining to the use and occupancy of the licensed premises." Motion carried 9-0. The committee recommended to the City Council that consideration be given to a greater distribution of the program costs to be 0 born by the point of sale fee. xerl" Page 22 • Prop. Maint. Mtg. - 8/9/89 Chairman Harms stated that the staff will prepare a proposed ordinance that incorporates the committee's changes and prepare minutes of the meetings. These will be circulated to the members of the committee before submission to Council. If the committee wants to meet again to go over these things, it should. Otherwise, Chairman Harms will put a cover letter on these materials and circulate comments that the committee would like to include. After circulation, a single report will be prepared. Mr. Prosser indicated that the earliest possible Council meeting would be September 11th. It would most likely be the 25th of September. 0 RICHFIELD CHAMBER of COMMERCE 6637 LYNDALE AVENUE SO. RICHFIELD, MINN 55423 August 25 , 1989 Telephone: 866.5100 Mr. James Prosser city manager Richfield city hall 6700 Portland Ave. Richfield, Mn. 55+23 Dear Mr. Prosser: The board of directors of the Richfield Chamber of Commerce-at the board meeting of August 16, 1989,by unanimous vote, passed a motion in favour of the adoption by the city of Richfieldof an ordinance amendment that provides for the inspection and licensing of apart -ment buildings and rental,houses, both multiple family and single family. The Chamber of Commerce thinks that an. ordinance amendment of this nature will be effective in assuring a reasonable quality of maint -tainence of properties and will be a safeguard against the deterier ?t3on of the community. Cordially John Hamilton, President Richfield Chamber of Commerce JH/j k • • RICHFIELD CHAMBER of COMMERCE 6637 LYNDALE AVENUE SO. RICHFIELD, MINN 55423 August 25 1989 Telephone: 866-5100 Thomas H arms Chair, Richfield property maint. comm. 6+00 Morgan ave. So. Richfield, Mn. 55+23 Dear Mr. Harms: The board of directors of the Richfield Chamber of Commerce at the board meeting of August 16, 1989,by unanimous vote, passed a motion in favour of the adoption by the city of Richfieldof an ordinance amendment that provides for the inspection and licensing of apart -ment buildings and rental.houses, both multiple family and single family. The Chamber of Commerce thinks that an. ordinance amendment of this nature will be effective in assuring a reasonable quality of maint -tainence of properties and will be 'a safeguard against the deterior -Ation of the community. Cordially ? ohn amilton, President Richfield Chamber of Commerce J71 j k 0 SEP 26 '89 14:21 HOLMES & GRAVEN BILL NO. 1989 AMENDMENT TO CHAPM IV, PART III OF THE ORDINANCE CODE OF THE CITY OF RICHFIELD CITY OF RICHFIELD DOES ORDAIN; P. 2?? 9/25/89 Chapter IV of the Ordinance Code of the City of Richfield entitled "Building, Housing and Construction Regulations" is hereby amended in the fallowing respect: L The City Code is amended by adding new subsection 405.25 to read: . 405.25. INSPECTION AND LICENSING OF APARTMENT HOUSES AND RENT HO. Subd. 1. DEFINITIONS. For the purposes of this subsection and subsection 485.26 the terms ed wed herein have the following meanings: (1) "Apartment house" means a building containing three or more dwelling units. (2) "Apartment", "apartment unit" or "dwelling unit" means a room or group of rooms located within a building.and forming a single habitable unit with facilities which are used or intended to be used for living, sleeping, cooking and eating by persons other than the owner. (3) "Rental home" means a one or two-family dwelling which is occupied by persons other than the owner. (4) "Family" -means one or more persons 0 dwelling unit and living as a single, nonprofit housekeePpin g u uxnit?, as distinguished from a group occupying a hotel, club, fraternity or sorority house. The term "family" does not include a group of individuals, exceeding three in number, not related by blood, marriage or adoption. The term "family" includes necessary employees. (5) "Housing Code" means 'subsections 405.01 through 405.23 of this code together with the Uniform Housing Code as adopted by subsection 400.03 of this code, and shall also mean all other codes and regulations of the City pertaining to the occupancy and habitability of the licensed premises. (8) All other definitions contained in subsection 405.01, subdivisions 1-20 are incorporated in this subsection by reference and made a part hereof. n U SEP 26 '89 14:21 HOLMES & GRAVEN P.3 O " (7) "Owner" means, with respect to all matters involving the making of applications and the giving of notices$ the individuals or entities holding legal and equitable title to the premises, or the legally constituted agent designated by the Owner for such purposes. Subd. 2.' LICENSE REQIIIRED. (1) General Rule. It is unlawful for any person who is an owner of an apartment tt house or an owner of a rental home to operate such apartment house or rental home without first having obtained a license under the provisions of this subsection. (2) Exceptions . Apartment houses and rental homes which are existing and in operation prior to March 1, 1990 may continue to operate notwithstanding the requirement of paragraph (1) of this Subdivision, provided a complete application therefor has been submitted to the City prior to March 1, 1990 in accordance with paragraph (1) of Subdivision 3 of this subsection. Such operation may continue until a final determination is made by the City not to issue a license. Subd. 3. LICENSING PROCEDURE. 40 (1) lication: When Made. Prior to March 1, 1990, the Owner of an apartment house or owner of a rental home shall apply to the director of public safety for the license required by subdivision 2 of this subsection. Application shall be made on forms provided by the city and accompanied by the initial fee required by subdivision 7 of this subsection. The owner of an apartment house or rental home constructed after said date shall submit a license application prior to actual occupancy of any apartment unit or rental home. (2) Ac} lp ication: Contents. The application shall contain the following i orma on together with such other information as the director of public safety may require to assess compliance with the housing code and this subsection. (a) If the applicant is a partnership, the names and addresses of each partner, (b) If the applicant is a corporation, the names and addresses of the majority shareholder, and the names and addresses of the officers. - - = - - - (c) The names, addresses and telephone numbers of individuals responsible for the maintenance and management of the premises. (d) The names, addresses and telephone numbers of the individuals responsible for keeping and maintaining the tenant registers. 0 SEP 26 '89 14:22 HGLMES & GRAVEN P.4 (3)- Issuance of Licenses. - If the director of public safety • concludes as a result o t e ormation contained in the application and other information available to the director of public safety, that an apartment house or rental home appears to comply with requirements of the housing code and this subsection, the director of public safety shall issue the license. if the director of public safety concludes as a result of the information contained in the application and other information available to the director of public safety, that an apartment house or rental home appears not to be in compliance with the housing code and this subsection the director of public safety shall order an immediate inspection to determine compliance. If the immediate inspection discloses noncompliance, the applicant shall have a 60 day period from receipt of notice of noncompliance to correct the defects specified in the notice, .but only if the defects do not create an imminent hazard. The director of public safety may, in his discretion, authorize additional time for compliance. From the date that the director has ordered an immediate inspection, no occupancy of dwelling units then vacant, or which become vacant, is permitted until a license has been issued. Apartment units within an unlicensed apartment house for which a license application has been made and which units are determined, based upon a review of the application, and other information available to the director of public safety, to be in compliance with the housing code may be occupied provided that non-complying units within the apartment house do not create an imminent hazard to the health and safety of persons in occupied units. Such occupancy. may continue until a final determination on the granting or denial of the license is taken by the city. (4) Denial: _ _Aooeal. In. any instance where the director of public safety has denied an application for a license, the applicant may appeal the decision to the city manager by delivering to the manager a notice of appeal within ten (10) days of receipt by the applicant of notice of the director of public safety's decision. In the event the decision of the city manager sustains the decision of the director of public saf ety in whole or in part, the applicant may appeal such decision to the city council by delivering to the city clerk a notice of appeal within ten (10) days of receipt by the applicant of notice of the. city manager's decision. The decision of the city council or any decision by the director of public safety or the city manager which is not appealed in accordance with this paragraph shall be deemed a final determination by the city. Subd. 4. LICENSE: RENEWAL: TRANSFER. The term of a license granted under this subset on one year from the date of issuance. The licensee shall report to the director of public safety any material changes in the identity of the Owner, including a change in the majority shareholder or shareholders and officers in the case of corporations. The license must be renewed annually thereafter. The license is transferable upon application to. the director of public safety, and payment of the license transfer fee by the prospective owner, provided that the apartment house or rental home is in compliance with the housing code. The license shall 3 SEP 26 '89 14:23 HOLMES & GRAVEN P.5 terminate if renewal or application for transfer is not made within 30 days after transfer of ownership of the apartment house. Subd. 5. LICENSES: SUSPENSION: REVOCATION. A license issued or renewed un er his su ec on may 64 suspen upon a finding of noncompliance with this subsection by the director of public safety, and written notice to the licensee. Noncompliance shall include a determination by the director of public safety, following inspection, that the premises are in violation of the Housing Code. Upon faiLure of the licensee to comply with the notice of violation, the license may be revoked or suspended in the manner provided by subsection 1005.21 of this code. The license may also be revoked or suspended upon a finding that the licensee made a materially false statement in the application. Reinstatement of a suspended license shall be accompanied by an amount equal to 506 of the license fee. Issuance of anew license after, suspension or revocation shall be made in the manner provided for obtaining an initial license. . Subd.6. LICENSES: DISPLAY. Licenses issued under this subsection shall be displayed on the premises of the apartment house or rental home, wherever feasible and produced upon demand of a prospective tenant, the director of public safety or his . authorized representative. Except as otherwise provided in this subsection all provisions of subsections 1005.11 to 1005.23 of this code are applicable to licenses issued under this subsection. Subd.7. TENANT REGISTER. The licensee shall, as a continuing obligation o its license, maintain' a current register of tenants and other persons who have a lawful right to occupancy of apartments within the apartment house. In its application, the licensee shaIl designate the person or persons who will have possession of the register; and shall promptly notify the director of public safety of any change of the identity, address or telephone numbers of such persons. The register shall be available for inspection by the director of public safety, or his designate, at all times. Subd. 8. INSPECTION. The licensee shall permit the director of . public safety or his designate to enter upon the licensed premises for the purpose of conducting inspections to verify compliance with the housing code. Said inspections shall be made at such frequencies as the director of public safety shall, in his sole judgment, deem appropriate and necessary. Sabd. 9. FEES. The fees for licenses required by this subsection are in the amounts estaMhed in Appendix D of this code. A license fee, .or license transfer fee which is not paid on the date due shall be increased by a 106 penalty for each month or portion thereof during which said fee remains unpaid. Subd. 10. COMPLIANCE WITH MINNESOTA STATUTES. Nothing in this subsection is intended to mode y or abrogate the rights o tenants of apartments units or owners of apartment houses granted by Minnesota Statutes Sections 566.18 to 566.33. The . city manager may e-Fgnate, subject to city council approval, administrators to carry out the duties assigned by the court pursuant to said statutes. 4 SEP 26 '89 14:23 HOLMES & GRAVEN P.6 Subd. 11. REMEDIES. Any person who violates the provisions of this - subsection or who a materially false statement in the application, is guilty of a misdemeanor. In addition, the city may enforce the provisions of this subsection in any court of competent jurisdiction in law or equity. Subd. 12. REPORT. Prior to January 1, 19922 the city manager shall submit to the a tyy eounc:l a report on regulatory activities of the city undertaken pursuant to this subsection. The report shall include: the number of licenses granted; the number of rental homes, apartments and apartment units licensed; recommended amendments to the ordinance; recommended adjustments to city staff to ensure satisfactory enforcement; a summary description of enforcement activities undertaken to enforce the provisions of this subsection; and any other information or comments deemed by the manager to be appropriate. IL The eity code is amended by adding new Subsection 406.26 to read: 405.26. CERTIFICATE OP HOUSING MAINTENANCE COMPLIANCE FOR SINGLE ANIY w w A Y H MOS. Subd. 1. CERTIFICATE REQUIRED. (1) No single or two family structure or dwelling unit which is a part of a multiple dwelling located within the city may be voluntarily conveyed for consideration by deed or contract for deed after January 1, 1990, unless the person relinquishing ownership or the agent of such person has first applied for and secured a certificate of housing maintenance compliance. (2) This subsection shall not apply to any apartment house or rental home licensed under subsection 405.25 of this code, and shall have no effect upon the provisions of law or other ordinances related to the issuance of building permits. Subd. 2. APPLICATION AND DMPECTION. (1) Application for the certificate of housing maintenance compliance shall be executed upon forms provided by the city and accompanied by the initial fee established in Appendix D of this code. (2) Upon receipt of a properly executed application the director of public safety shall cause an inspection to be made of the premises to ensure that the structure is in compliance with applicable provisions of subsections 405.01 through 405.23 of this code (the housing maintenance code). Subd. 3. ISSUANCE OF CERTIFICATE. If the structure is in compliance with the req rements o the ou g maintenance code, a certificate shall be issued to the person relinquishing ownership or the agent thereof, stating that the structure has been inspected and is in compliance with the housing maintenance code. During the period of one year following 5 SEP 26 '89 14:24 HOLMES & GRAVEN P,7 ?l0 U Its issuance, a certificate may be accepted by the city in satisfaction of the • requirements of this subsection without the need for a second inspection. Subd. 4. OCCUPANCY PROHIBUED. The person relinquishing ownership or their d gnated agent sh obtain the certificate from the city prior to transfer of ownership. The prospective owner shall not occupy the structure prior to issuance of the certificate, except pursuant to subdivision 5. Subd. S. OCCUPANCY. A person may be granted permission to occupy a dwelling prior to issuance of the certificate upon the approval of the director of public saf ety. . The approval shall be based upon undue hardship or other extraordinary or exceptional circumstances, provided that no such occupancy constitutes an immediate hazard. Approval shall not be given until the prospective owner or designated agent has filed on forms. supplied by the city, a statement of intent to cornply with the housing maintenance code. Compliance dates in the statement of intent to comply shall be established by the director of public safety. Fad.ure to make the required corrections by the compliance dates shall constitute a violation of this code and shall render void any approval given pursuant to this subdivision. Subd. 6. ADDITIONAL INSPECTIONS. If following the issuance of a certificate, the ty finds by complaint or otherwise that the structure may be maintained in a substandard manner, a new inspection will be required in order to satisfy the requirements of this subsection. • Subd. 7. NO WARRANTY BY. CITY. By enacting and undertaking to enforce. t su ection neither t -fie city nor its council, agents or. employers warrant or guarantee the safety, fitness or suitability of any dwelling in the city, _and any representation to the contrary by any person is a misdemeanor.. Purchasers or occupants should take whatever steps they deem appropriate to protect their interests, health, safety.and welfare prior to purchase or occupancy of the dwelling, without reliance on this certificate. A warning in substantiaIIy the foregoing language shall be printed on the face of the. certificate. Subd. 8'. REPORT.. Prior to January 1,. 19927 the city manager shall submit to the c? eo'ty uncil s report on the regulatory activities of the city undertaken pursuant to this subsection. The report shall include: the number of certificates issued; recommended amendments to the ordinance; recommended adjustments to city staff to ensure adequate enforcement; a summary description of enforcement activities undertaken to enforce the provisions of this section; and any other information or comments deemed by the manager to be appropriate. Subd. 9. REMEDIES. Any person who violates the provisions of this subsection, or who makes a knowingly false statement in the application, is guilty of a misdemeanor. In addition, the city may enforce the provisions of this section in any court of competent jurisdiction in law or equity. i M. This ordinance is effective on March 1, 1990. t RC145-938 6 • Inspection Fee Schedule for Rental Licensing and Point of Sale Ordinance Type Number Fee Revenue %Apartment Buildings 200 $50.00 $ 4,000.00* (the building itself, laundry, storage, furnace rooms, cor- ridors, stairs) Apartment Units 4575 7.50 34,312.00 Duplexes 374 50.00 18,700.00 1-Family 500 50.00 25,000.00 1-Family 500 50.00 25,000.00 (Point of sale) TOTAL $107,012.00 • *The first four apartment units would be included in this fee, so that am ount is deducted here and included in the next figure. I1 SEP 26 '89 14:21 HOLMES & GRAVEN P.2 9/25/89 BILL NO. 19$8 AMENDMENT TO CHAPTER IVf PART III OF THE ORDINANCE CODR OP THE CITY OF RICHFIELD CFTY OF RICHFIELD DOES ORT?AINi Chapter IV of the Ordinance Code of the City of Richfield entitled "Building, Housing and Construction Regulations" is hereby amended in the following respect: L The City Code Is amended by adding new subsection 405.25 to read: . 405.25. INSPECTION AND LICENSING OF APARTMENT HOUSES AND RENTA HO . Subd. 1. DEFINITIONS. For the purposes of this subsection and subsection 405.26 the terms de med herein have the following meanings= (1) "Apartment house" means a building containing three or more dwelling units. • (2) "Apartment", "apartment unit" or "dwelling unit" means. a room or 'group of rooms located within a budding and forming a single habitable unit with facilities which are used or intended to be used for living, sleeping, cooking and eating by persons other than the owner. (3) "Rental Home" means a one or two-family dwelling which is occupied by persons other than the owner. (4) "Family" .means one or more 'persons occupying a dwelling unit and living as a single, nonprofit housekeeping unit, as distinguished from a group occupying a hotel, chub, fraternity or sorority house. The term "family" does not include a group of individuals, exceeding three in number, not related by blood, marriage or adoption. The term "family" includes necessary employees. (5) "Horsing Code". means subsections 405.01 through 405.23 of this code together with the Uniform Housing Code as adopted by subsection 400.03 of this code, and shall also mean all other codes and regulations of the City pertaining to the occupancy and habitability of the licensed premises. {$) All other definitions contained in subsection 405.01, subdivisions 1-20 are incorporated in this. subsection by reference and made a part hereof. SEP 26 189 14:21 HOLMES & GRAVEN P.3 C (7) "Owner" means, with respect to all matters involving 'the making of applications and the giving of notices, the individuals • or entities holding legal and equitable title to the premises, or the legally constituted agent designated by the Owner for such purposes. Subd. 2. LICENSE RERUIRED. (1) General Rule. It is unlawful for any person who is an owner of an apartment house or an owner of a rental home to operate such apartment house or rental home without first having obtained a license under the provisions of this subsection. (2) Exce tions. Apartment houses and rental homes which are existing and in operation prior to March 1, 1990 may continue to operate notwithstanding the requirement of pari agraph (1) of this Subdivision, provided a complete application therefor has been submitted to the City prior to March 1, 1990 in accordance with paragraph (1) of Subdivision 3 of this subsection. Such operation may continue until a final determination is made by the City not to issue a license. Subd. 3. LICENSING PROCEDURE. (1) . Application: When Made. Prior to March 1, 1990, the owner of an apartment house or owner of a rental home shalt apply to the director of public safety for the license required by subdivision 2 of this subsection. Application shall be made on forms provided by • the city and accompanied by the initial fee required by subdivision 7 of this subsection. The owner of an apartment house or rental home constructed after said date shall submit a license application prior to actual occupancy of any apartment unit or rental home. (2) ieation: Contents. The application shall contain the following information together with such other information as the director of public safety may require to assess compliance with the housing code and this subsection. (a) If the applicant is a partnership, the names and addresses of each partner, (b) If the applicant is a corporation, the names and addresses of the majority shareholder, and the names and addresses of the officers. -. -- - - = - -- - (c) The names; addresses and telephone numbers of individuals responsible for the maintenance and management of the premises. (d) The names, addresses and telephone numbers of the individuals responsible for keeping and maintaining the tenant registers. .7 SEP 26 '89 14:22 HOLMES & GRAVEN P.4 W- Usuance of Licenses. If the director of public safety concludes as a result o e orrnation contained in the application and other information available to the director of public safety, that an apartment house or rental home appears to comply with requirements of the housing code and this subsection, the director of public safety shall issue the license. If the director of public safety concludes as a result of the information contained in the application and other information available to the director of public safety, that an apartment house or rental home appears not to be in compliance with the housing code and this subsection the director of public safety shall order an immediate inspection to determine compliance. If the immediate inspection discloses noncompliance, the applicant shall have a 60 day period from receipt of notice of noncompliance to correct the defects specified in the notice, .but only if the defects do not create an imminent hazard. The director of public safety may, in his discretion, authorize additional time for compliance. From the date that the director has ordered an immediate inspection, no occupancy of dwelling units then vacant, or which become vacant, is permitted until a license has been issued. Apartment units within an unlicensed apartm ent 'house for which a license application has been made and which units are determined, based. upon a review of the application, and other information available to the director of public safety, to be in compliance with the housing code may be occupied provided that non-complying units within the apartment house do not create an imminent hazard to the health and safety of persons in occupied units. Such occupancy , may continue until a final determination on the granting or denial of the license is taken by the city. (4) Denial' &2-.al. In any instance where the director of public safety hashed an application for a license the applicant may appeal the decision to the city. manager by delivering to the manager a notice of appeal within ten (10) days of receipt by the applicant of notice of the director of public safety's decision. In the event the decision of the city manager sustains the decision of the director of public safety in whole or in part, the applicant may appeal such decision to the city council by delivering to the city clerk a notice of appeal within ten (10) days of receipt by the applicant of notice of the. city manager's decision. The decision of the city council or any decision by the director of public safety or the city manager which is not appealed in accordance with this paragraph shall be deemed a final determination by the city. Subd. 4. LICENSE: RENEWAL: TRANSFER. The term of a license granted under this subsection Is one year from t e date of issuance. The licensee shall report to the director of public safety any material changes in the identity of the Owner, including a change in the majority shareholder or shareholders and officers in the case of corporations. The license must be renewed annually thereafter. The license is transferable upon application to the director of public safety, and payment of the license transfer fee by the prospective owner, provided that the apartment house or rental home is in compliance.with the housing code. The license shall • 3 SEP 26 '89 1423 HOLMES & GRAVEN P.5? terminate if renewal or application for transfer is not made within 34 days after transfer of ownership of the apartment house. • Subd. S. LICENSES: SUSPENSION: REVOCATION. A license issued or renewed un er s su a on may suspen upon a finding of noncompliance with this subsection by the director of public safety, and written notice to the licensee. Noncompliance shall include a determination by the director. of public safety, following inspection, that the premises are in violation of the Housing Code. Upon failure of the licensee to comply with the notice of violation, the license may be revoked or suspended in the manner provided by subsection ' 1005.21 of this code. The license may also be revoked or suspended upon a finding that the licensee made a materially false statement in the application. Reinstatement of a suspended license shall be accompanied by an amount equal to 50% of the license fee. Issuance of anew license after suspension or revocation shall be made in the manner provided for obtaining an initial license. . Subd. 6. LICENSES: DISPLAY. . Licenses issued under this subsection shall' be displayed on the premises of the apartment house or rental home, wherever feasible and produced upon demand of a prospective tenant, the director of public safety or his authorized representative. Except as otherwise provided in this subsection ail provisions of subsections 1045.11 to 1005.23 of this code are applicable to licenses issued under this subsection. Subd. T. TENANT REGISTER. The licensee shall, as a • continuing obligation o its cease, maintain a current register of tenants and other persons who have a lawful right to occupancy of apartments within the apartment house. In its application, the licensee shall designate the person or persons who will have possession of the register; and shall promptly notify the director of public safety of any change of the identity, address or telephone numbers of such persons. The register shall be available for inspection by the director of public safety, or his designate, at all times. Subd. 8. INSPECTION. The licensee shall. permit the director of . public safety or his designate to enter upon the. licensed promises for the purpose of conducting inspections to verify compliance with the housing code. Said inspections shall be made at such frequencies as the director of public safety shall, in his sole judgment, deem appropriate and necessary. Subd. •9. FEES. The fees for licenses required by this subsection are in the amounts estal shed in Appendix D of this code. A license fee, or license transfer fee which is not paid on the date due shall be increased by a 10% penalty for each month or portion thereof during which said fee remains unpaid. Subd. 10. COMPLIANCE WITH MINNESO'T'A STATUTES. Nothing in this subsection is intended to moll y or abrogate the iqgfig o tenants of apartments units or owners of apartment houses, granted by Minnesota Statutes Sections 566.18 to 566.33. The . city manager may e?gnate, iu_ jec to city council approval, administrators to carry out the duties assigned by the court pursuant to said statutes. 4 I SEP 26 '89 14:23 HOLMES & GRAVEN P. 6 A ( ,? Subd. 11. REMEDIES. Any person who violates the provisions of this ' subsection or who makes a materially. raise statement in the application, is guilty of a misdemeanor. In addition, the city may enforce the provisions of this subsection in any court of competent jurisdiction in law or equity. Subd. 12. REPORT. Prior to January 1, 1992, the city manager shall submit to the a ty couneil a report on regulatory activities of the city undertaken pursuant to this subsection. The report shall include: the number of licenses granted; the number of rental homes, apartments and apartment units licensed; recommended amendments to the 'ordinance; recommended adjustments to city staff to ensure satisfactory enforcement; a summary description of enforcement activities undertaken. to enforce the provisions of this subsection; and any other, information or comments deemed by the manager to be appropriate. IL The city code is amended by adding new Subsection 405.26 to read: 405.25. OF Subd. 1. CERTIFICATE REQUIRED. (1) No single or two family structure or dwelling unit which is a. part of a multiple .dwelling located within the city may be voluntarily conveyed for consideration by deed or contract for deed after January 1, 1990, unless the person relinquishing ownership or the agent of such person has first applied for and secured a certificate of housing maintenance compliance. (2) This subsection shall not apply to any apartment house or rental home licensed under subsection 445.25 of this code, and shall have no effect upon the provisions of law or other ordinances related to the issuance of building permits. Subd. 2. APPLICATION AND INSPECTION. (1) Application for the certificate of housing maintenance compliance shall be executed upon forms provided by the city and accompanied by the initial fee established in Appendix D of this code. (2) Upon receipt of a properly executed application the director of public safety shall cause an inspection to be made of the premises to ensure that the structure is in compliance with applicable provisions of subsections 445.01 through 405.23 of this code (the housing maintenance code). Subd. 3. ISSUANCE OF CERTIFICATE. ' If the structure is in compliance with the req cements o the u g maintenance code, a certificate shall be issued to the person relinquishing ownership or the agent thereof, stating that the structure has been inspected and is in compliance with the housing maintenance. code. During the period of one year following 5 SEP 26 '89 14:24 HOLMES & GRAVEN P.? Its Issuance, a certificate may be accepted by the city in satisfaction of the requirements of this subsection without the need'for a second inspection. Subd. 4. OCCUPANCY PROHIBITED. The person relinquishing ownership or their de grated agent sfiall a air the certificate from the city prior to transfer of ownership. The prospective owner shall not occupy the structure prior to issuance of the certificate, except pursuant to subdivision 5. Subd. S. . OCCUPANCY. A person may be granted permission to occupy a dwelling prior to issuance of the certificate upon the approval of the director of public safety. The approval shall be based upon undue hardship or other extraordinary or exceptional circumstances, provided that no such occupancy constitutes an, immediate hazard. Approval shall not be given until the prospective owner or designated agent has filed on forms supplied by the city,,- a statement of intent to comply with the housing maintenance code. Compliance dates in the statement of Went to comply shall be established by the director of public safety. Failure to make the required corrections by the compliance dates shall constitute a violation of this code - and shall render void any approval given pursuant to this subdivision. Subd. 6.' ADDITIONAL INSPECTIONS. If following the issuance of a certificate, the ty finds by complaint or otherwise that the structure may be maintained in a. substandard manner, a new inspection will be required in order to satisfy the requirements of this subsection. • Subd. 7. NO WARRANTY BY. CITY. By enacting and undertaking to enforce. t subsection neither the city nor its council, agents or. employers warrant or guarantee the safety, fitness or suitability of any dwelling in the city, .and any representation to the contrary, by any person is a misdemeanor.. Purchasers or occupants should take whatever steps they deem appropriate to protect their interests, health, safety.and welfare prior to purchase or occupancy of the dwelling, without reliance on this certificate. A warning in substantially the foregoing language shall be printed on the face of the. certificate. Subd. 8. REPORT.. Prior to January. 1,. 199% the. city manager shall submit to the c?'t'ty""-douncil a report on the regulatory activities of the city undertaken pursuant, to this subsection. The report shalt include; the number of certificates issued; recommended amendments to the ordinance; recommended adjustments to city staff to ensure adequate enforcement; a summary description of enforcement activities undertaken to enforce the provisions of this section; and any other information or comments deemed by the manager to be appropriate. Subd. 9. REMEDIES. Any person who 'violates . the provisions of this subsection, or who makes a knowingly false statement. in the application, is guilty of a misdemeanor. In addition, the city may enforce the provisions of this section in any.court of competent jurisdiction in law or equity. M. 'I'ltis ordinance is effective on March 1, 1990. RC145-838 6 LIST OF PEOPLE WHO SPOKE AT THE 9/25/89 CITY COUNCIL MEETING ON ' THE CREDIT UNION REZONING ISSUE. KEN COLMARK 6512 21ST AVE. SO. MICHELLE MCDONALD ATTORNEY REPRESENTING 2224-2228 E. 66TH ST. ESTELLE OBERMEYER OWNER OF 2224-2228 E. 66TH ST. RICHARD ANDERSON 6524 23RD AVE. SO. GEORGE WILHARM OWNER OF 6517-19 22ND AVE. SO. SHERRY SPICZYNSKI 6529 STANDISH AVE. SO.. DENISE LEEZER 2224 E. 66TH ST. JEAN ASLESON 6511 20TH AVE. SO. JOHN KENEALEY 6400 BLAISDELL AVE. SO. MIKE GALLAGHER 6313 20TH AVE. SO. JUDY BERGREN 6506 23RD AVE. SO. LAWRENCE WOZNICZKA 6744 WENTWORTH AVE. SO. DICK FRANZMEIER 7532 GARFIELD AVE. SO. RICHFIELD CREDIT UNION 0 LIST OF PEOPLE WHO SPOKE AT THE 9/25/89 CITY COUNCIL MEETING ON Is THE CREDIT UNION REZONING ISSUE. KEN COLMARK 6512 21ST AVE. SO. MICHELLE MCDONALD ATTORNEY REPRESENTING 2224-2228 E. 66TH ST. ESTELLE OBERMEYER OWNER OF 2224-2228 E. 66TH ST. RICHARD ANDERSON 6524 23RD AVE. SO. GEORGE WILHARM OWNER OF 6517-19 22ND AVE. SO. SHERRY SPICZYNSKI 6529 STANDISH AVE. SO.. DENISE LEEZER 2224 E. 66TH ST. JEAN ASLESON 6511 20TH AVE. SO. JOHN KENEALEY 6400 BLAISDELL AVE. SO. MIKE GALLAGHER 6313 20TH AVE. SO. JUDY BERGREN 6506 23RD AVE. SO. 0 LAWRENCE WOZNICZKA 6744 WENTWORTH AVE. SO. DICK FRANZMEIER 7532 GARFIELD AVE. SO. RICHFIELD CREDIT UNION E CITY OF RICHFIELD, MINNESOTA Council Letter No. 230-A Agenda, October 9, 1989 Issue Statement: Second reading consideration of an ordinance to rezone the property located at 2232-2236 East 66th Street to "C-2" general commercial district. Background: Richfield Credit Union has requested the rezoning of 2232-2236 East 66th Street to "C-2" general commercial district, in order to allow the construction of a financial institution. Currently, the eastern two parcels are vacant and a small single family home is located on the western parcel. Petitions in favor of the rezoning have been submitted; however, a number of property owners have also expressed opposition to the rezoning. The Planning Commission recommended approval of the Credit Union request on July 25, 1989. On September 25, 1989 the City Council gave first reading to an ordinance rezoning the Credit Union property and scheduling the second reading and public hearing for October 9, 1989. Approval • given on the first reading was conditioned upon an opinion by the City Attorney considering the sufficiency of the petition which initiated the rezoning in this case. The City Attorney's written opinion, which is attached, indicates that the petition was insufficient. The petitioner, Richfield Credit Union, was advised of this insufficiency. The Credit Union has submitted a petition with additional signatures to satisfy the ordinance requirements. Recommended Motion: Conduct a public hearing for an ordinance to rezone the property at 2232-2236 East 66th Street to "C-2", general commercial district and approve second reading of the ordinance. Basis of Recommendation: 1. The Planning Commission voted 7-1 to recommend approval. (The Council letter dated September 25, 1989, incorrectly stated a 7-0 vote.) 2. Two of the three lots have been vacant for some period of time as residentially zoned property. 3. The 66th Street corridor has been planned as a medium density buffer across the entire city. Changes that have occurred on 66th Street in the past several years have all increased density or intensity of use. Some of these changes west of Cedar include the chiropractic office and the doll museum west of 18th Avenue and the apartment building at the Mount Calvary Church. The CDP building and the City liquor store also influence the change. 4. The site is located immediately west of MAC property. To the south are athletic fields and southwest is the golf course of the City. To the west of the site are two fourplexes and to the north is a single family home owned or optioned by the Credit Union. The Richfield Evangelical Free Church is located just west of TH77 on 66th Street. In the next block, there are two commercial buildings that housed NECO and North Star Bumper Exchange. At least part of this is now for lease. Mike's Frame Service was approved at 1916 E. 66th Street in 1985 but does not appear to be in business at this time. The next several blocks on 66th include apartment buildings and two single family residences. The remainder of NFT is generally single family. A proposal to permit a heating/air conditioning business as a home occupation at 20th Avenue and 65th Street was rejected in 1989. 5. On 66th Street east of TH77, there are several different zoning designations. The westerly two blocks are zoned commercial and the remainder is MR, MR-2 and single family residential. The two lots west of the subject site are zoned MR-2. • 6. Several plans and developments impact this area. The mega mall will substantially increase traffic on TH77 and the state has a plan in progress looking at needed changes to accommodate such. The Transportation Guidelines for the City show 66th Street and Standish Avenue.as a minor arterial. This is less than a half block from the subject site. The various airport studies have no short term effect on this property. Such proposals as the N-S runway and the Met Council chairman's statement that the whole City could be taken for the airport are totally rejected by the City as unfounded. The TH77/New Ford Town Study Area plan suggests non residential use for NFT but has not been officially adopted by the City Council. The present Comprehensive Plan indicates a medium density buffer use for this area. That does not include C-Z uses. 7. A special survey form has gone out to all residents of NFT and the results should be available in the next several weeks. Expressed sentiment at the public meetings and by phone and letter to planning staff has been directed in large part against aircraft noise and its impact on the living environment. 8. Current noise exposure maps indicated that the subject site is in the 70-74 Ldn category. (Ldn means the day-night average level, or the 24-hour equivalent continuous sound \S level from midnight to midnight, obtained after the addition of 10 dBA to sound levels measured from 10 p.m. to 7 a.m.) Single family, multiplex with individual entrances and mobile homes are considered to be incompatible uses in such noise zones. Office, commercial and retail is considered consistent provided noise reduction is built in during construction. 9. Buffering and screening is provided on the north and west sides of the property including an 8 foot privacy fence. There are numerous mature trees on the site in variable condition. Applicant proposes to maintain as many trees as possible and adding considerable plantings and shrubs on all sides of the property. Staff has approved the landscaping plan. 10. Objectors have noted that there will be increased traffic at the end of 66th Street and immediately adjacent to the apartment building. At this time, the only use of this deadend road are the ball fields and archery range which are heavily used only in the summer. Applicant has indicated that most of their business is carried on through the mails and that people who transact business in person will probably continue, in large part, to utilize the facility at Central School because of its convenience to school personnel. The Central School site will stay open. The parking lot will be located to the east along the MAC side and the only traffic along the apartment . building will be to the drive-up windows which are located at the southwest corner of the building. An 8 foot fence and other landscaping is provided as a buffer but cannot totally screen all noise. A tenant with a young child living in the apartment building suggested that a safety hazard may be created because her child plays in the south yard of the apartment building in the absence of any playground on the property. Consideration should be given to using an open weave type fence near the sidewalk in place of the proposed solid four feet high fence at this location even though there is ten feet between the fence and the curb cut. Alternative Recommendation: Do not give second reading consideration to the proposed rezoning ordnance. The denial would be based on the fact that most of the properties on the block are single family residential uses. Therefore, the proposal would be incompatible with the neighborhood and the existing Comprehensive Plan. '10 Discussion/Decision Mode: Second reading and public hearing is scheduled 1989. Notice was published and mailed to the owners per requirements. Ci JDP:sae r1 U for October 9, adjoining property submitted, . Prosser s SEP 28 ;89 11:02 HOLMES & GRAVEN MEMORANDUM • TO: Mayor and Council Members FROM: BBD DATE: September 27, 1989 RE: Richfield Credit Union Petition to Rezone Property P. .2 At the September 25, 1989 City Council meeting I was directed to render my legal opinion based upon the following facts: 1. Richfield Credit Union ("Applicant") is the owner of three contiguous tracts of land having street addresses of 2232, 2234 and 2236 East 66th Street (the "Land"). 2. The Land is currently zoned "R": and was so zoned when neanired by Applicant. 3. The Applicant wishes to construct a building on the Land to house its activities. The proposed use may be conducted only in the C-2 districts of the city. 4. The Applicant has tiled a petition seeking to rezone the Land from R to C-2. 5. The petition was signed by Applicant and contained the signatures of a number of the owners of property within 300 feet of the Land. However, the petition was not signed by the owners 5096 of the property located within 300 feet of the Land. SEP 26 '89 11:02 HOLMES & GRAVEN P.3 Richfield Mayor and Council Members September 27, 1999 Page 2 6. Subsection 545.11 subdivision 4 of the Richfield Ordinance Code reads in relevant part: Subd. 4. Initiation. An amendment to this code may be initiated by the council, planning commission, or by the petition of the owners of not less than fifty percent of the land proposed to be rezoned and by the ownon. of at least fifty percent of the land within three hundred feet of the land proposed to be rezoned. Properties owned by federal, state, municipal entities or other political subdivisions shall be excluded from any computation of the percentage of landowners necessary for rezoning petitions initiated by landowners. The question posed is whether the petition for rezoning is defective for failure to comply with the requirements of the above quoted ordinance. Discussion Under any clear reading on the ordinance the petition is defective for • failure to contain the requisite signatures. The petition can survive only if it is determined that the requirement, itself, is improper. A. Statutory Authority. Minnesota Statutes, Section 462.557 subd. 4 contains the grant or authority to cities to amend their zoning regulations. That section reads in relevant part: Subd. 4. Amendments. An amendment to a zoning ordinance may be initiated by the governing body, the planning agency, or by petition of affected property owners as defined in the zoning ordinance. (emphasis supplied) Subsection 545.11 subd. 4, in effect, defines affected property owners to mean the owners of the land sought to be rezoned and the owners of land within 300 feet of the land sought to be rezoned. Consequently, the city has, in accordance with the authority granted it is the statute, defined the area of land affected by rezonings. SEP 28 '89 1103 HOLMES & GRAVEN. P>4 Richfield Mayor and Council Members September 27, 1989 Page 3 B. Delegation. If the requirement that the petition must be signed by the owners of at least -50% of the land within 300 feet of the land sought to be rezoned is seen as a delegation of the council's legislative power, then the requirement is improper. It is a well settled principle in zoning law that a council may not base its land use decisions on either the objections or the support of the neighborhood. (See, for example, Minnetonka Congregation of Jehovah's Witnesses v. Svee, 226 N.W.2d 306 (197.5)) The Minnesota Supreme Court has twice had the opportunity to examine petition requirements which are similar in nature to the provision contained in the Richfield Code. • In the first case, State v. City of Minneapolis, 97 N.W.2d 273' (1959) the could voided a statutory "consent" provision which had been used by Minneapolis in consideration of zoning matters. The provision required that rezoning initiated by petition must include the written consent of the owners of 2/3rds of the property within 100 feet of the property to be rezoned. The court's decision is contained in the following language from the opinion: We are of the opinion that the consent clause of S 462.18, as a prerequisite to the exercise of the city council's legislature authority to amend the comprehensive zoning ordinance, constitutes an unlawful delegation of power to impose restrictions on real property, and renders this provision of the statute invalid...; and that it is an unreasonable exercise of the police power to rest control of property uses in the hands of the owners of other property." In the second cases O'Brien v. City of St. Paul, 1?3 K.W.2d 462 (1969), the court took the opposite position and upheld a nearly identical provision contained in the St. Paul ordinances. The court in O'Brien took the position that restrictions on i the use of land imposed through zoning benefit the surrounding property, and that SEP 28 '89 11:03 HOLMES & GRAVEN P•5 Richfield Mayor and Council Members September 27, 1989 Page 4 the consent merely serves as an indication by the owners of surrounding property of their willingness to waive those benefits if the property is rezoned. Consequently, according to the O'Brien court: "(The ordinance provisions] do not vest in adjoining property owners the power to legislate or impose restrictions but confer the right to waive restrictions which have already been established by the city." The Minnesota Supreme Court has had no further opportunity to consider "consent" ordinances since the O'Brien decision. The Court did, however, in Luger v. City of Burnsville, 295 N.W.2d 609 (1980) make the following observation: "The [United States Supreme Court) in City of Eastlake distinguished earlier cases in which it held that legislature power may not be delegated 'to a narrow segment of the community' such as those whose property abutted city streets or those who owned . property within 400 feet of a proposed variant land use." Whether this suggests that our court might overrule O'Brien in the next case to come before it is sheer speculation. It is also very difficult to articulate any meaningful distinction between the two cases which our court has decided on this topic. As one commentator described it "some challenges have been successful, some not." The O'Brien case articulated several factors which were important to the decision. 1. The consent requirement was authorized by statute. 2. The _property owner seeking rezoning purchased the land under its existing zoning classification with no expectation that it could be changed. 3.- The consent requirement was a precondition to consideration of the petition rather than a condition placed upon actual approval. ? l put great reliance on that factor. It really does not seem to have much to do with the "consent - waiver" issue. C. onclusion On the basis of the foregoing, it is my legal opinion that the provision contained in subsection 545.11 subdivision 4 of the Code requiring that owner initiated petitions for rezoning be signed by the owners of 5096 of the land sought to be rezoned and the owners of $096 of the land within 300 feet Is valid and enforceable. Consequently, it is further my opinion that the Credit Union petition, which does not contain the requisite number of signatures is defective as an owner initiated petition for rezoning. It is important to note, however, that this opinion does not touch on the merits of a rezoning of the Land, nor should it be construed to preclude consideration of rezoning following a proper initiation in accordance with the provisions of subsection 545.11 subdivision 4. RC160-1 RICHFIELD CHAMBER of COMMERCE 6637 LYNDALE AVENUE SO. RICHFIELD, MINN 55423 Telephone: 866.5100 TO: Mayor Quam, Counciloersons and City Manager FROM: John Kenealey, Executive Secretary RICHFIELD CHAMBER OF COMMERCE DATE: September 25, 1989 The Board of Directors of the Richfield Chamber of Commerce passed a resolution at their September 20th meeting recommending the approval of the rezoning of three lots at 2232-2236 East 66th to general commercial zoning to permit the construction of a new facility by Richfield Schools Credit 'Union. It is the position of the Chamber of Commerce that tPits would permit a logical and reasonable development of this property. • 61?hn Kenealey Executive Secretar Richfield Cham bee of Commerce JK:ks 0 - I %, 0-// 1 REQUEST FOR REZONING FROM MR-2 TO C-2 FOR PURPOSE OF ZONING CHANGE Street Address: 2232-2236 East 66th Street Legal Description: Lots 12, 13 and 14, Block 7, New Ford Town, together with the South 1/2 of the vacated alley accruing thereto. We, the undersigned, being owners of land within 300 feet of the land described above, do hereby concur in this rezoning request. Signature of .l Address n \J Zvi. *For purposes of determining i' number of signatures to intit; signatures may not be removed returned to the Planning Divi; 6SJ3s4 E petition contains the proper ate the rezoning process, once a petition is signed and aion. 5 REQUEST FOR REZONING FROM MR-2 TO f'-2 FOR PURPOSE OF ZONING CHANGE Street Address: 2232-7236 66th StrpPt RAR Legal Description: hots 12, 13 and 14, Block 7, New Ford Town, together with the South 1/2 of the vacated alley accruing thereto. We, the undersigned, being owners of land within 300 feet of the land described above, do hereby concur in this rezoning request. Signature of Owners* Address 's a- 33 Sl 1] *For purposes of determining if petition contains the proper number of signatures to intitate the rezoning process, signatures may not be removed once a petition is signed and returned to the Planning Division. REQUEST FOR REZONING FROM mg-2 TO C-2 FOR PURPOSE OF 7CNIN(, CHA TC7: Street Address: 2212-2211 66th Strp-pt RaGt Legal Description: Lots 12, 13 and 14, Block 7, New Ford'Town, together with the South 1/2 of the vacated alley accruing thereto. We, the undersigned, being owners of land within 300 feet of the land described above, do hereby concur in this rezoning request. Signature of Owners* a. 0 Address t-oo- L< >? C 516 *For purposes of determining if petition contains the proper number of signatures to intitate the rezoning process, signatures may not be removed once a petition is signed and returned to the Planning Division. U H ? aW U ON J M N N 0 N N N N M N = W P1 fZ G Nf IpNt15 ?' I > ? O Ne N - M N N N N M N ?Y = 7nt 09037 'JAW Yt033 401401 I i •. ^'•, .'::. ..• ?i - -. A rl fl 46 4,41 40191 ?-?? •,?,••,?:•,••,'?••.• ? ?-?---? I Y. tl vlrl r?l ? :.?+„?..r,„?r.,''?.r.,•.?..,r.,l?,.?.:? !?.-...? ? 401401 44 cl ------- - ---- - At 21 "a Ol 101117 ' _ •'•,••••• -- 100i 3 sn?wnlo7 ??? ? ? II •: ;.}•. ?- i o9r71117 ??? _ ? I tnawmp7 Vol 7IYI I ?.-. C= 7140 tI ONt1rt0 I -. ..-- 3At ONt11Y0. - j Owtlrt0 II 3AT Owt1A400. Y'f AV HSIGN S 401 ? J ^. Ylr M 1011117 IEE It • MO1 11,7 r.$ 1A1. -- 1 r' S WZ ,r _- ' 4040= Sw3A31S ?° -•- 1 I ,r, 'S '3AV aN 043AI1S ]AV 13110711 7At 13110011 1130SItL ( _?' I 11 3 0 111140 w1Y041NI4 I•'????? 1 111.041N34 IYn40f1111 ?-_?. ? AYn YS111. INYSt31..:?? . _ _ - - - - S '3Ad 1SLZ - -_ = lwtst31a awwwo ONtYO 1314040.1 ' 131rrtw 0131lYt9 3AV w71400,t C.[\- 1NtAN: ---Sid. , -`= =-- `\, N71Y01t 11 T ,[?, \ \ >v, ?C 1, 1NtA400 .013 1NOIna Lmpt3w ?Ort4019 _ -- )rd - - lOloYwnN 110MY 1 p, t9 wt9YOw __ - 1.9row Y3A110 = 1.11 M0147M Z 403A110 ]AV fthle ]AT Wall* NI3no 113SSnY ___ -i. --•-•? w73no Ntp1Y311S _. - - - ? Nt 01Y7M$ StwoM1 it St MOl.n I- - _- _ _ wOwl Lftj)hllA MYnOwSt4 3At 53:40771 -- - - - - - - - - 3Ar S311N1v N N N N N N N N N , -. „ ,A N N N _ N N P G O V O J ? W O ..P1 . . _ . . ? ? ? w O- - J a 2232 E. 66th ST. COMPREHENSIVE DEVELOPMENT PLAN INSTITUTIONAL ® MIXED LAND USE El DMEDIUM DENSITY/BUFFER El PARKS SINGLE FAMILY RESIDENCE N •• • •" ?• ?•:.?* .a E. 6380 ST. I I I I I I I I I I i I I i 1 I I ? I aT E. 65T H ST I rn N 6. I 61J > > I > c Y` I v ii t t E. 66TH ST. T 1 ( 1 1 1 T. i 1 H 4t ? > 1 N 3 > 0 1 Q r W p? 66 z 1 0 Eld Mll I 4 1 ?.Y .r l ?. 1 ? 1 COMMERCIAL WJVACANT 19 QUASI-PUBLIC F• :.4 1 1 1 I 1 I I 1 1 I 2232 E. 66th ST. LAND USE 0 APARTMENTS El PARKS DUPLEX Q? SINGLE FAMILY RESIDENCE N T. • • N y a S a C U a a I ? ?D r A I H m I 1 I r I -i,? I I _ I I r--- I I i I I I '11,~1; l• 'I R?s?, rri > I Nf 1 N a I W . o I a - a W r O? ? O N = 0 1 ?_ 1 34 s, I i I-- N ? N ?- I V' -V AL 66TH ST. 2232 E. 66th ST. ZONING ® C-2 GENERAL COMMERCIAL 1 INDUSTRIAL El R RESIDENCE E. 63RD ST. I { I I I I 64TH ST. lkft I I xx ?Y I ? I 1 Y I ? I y 5TH ST. I H N H W I W ' Q { Q Q S " I m Q W U ME E. 66TH ST. T El MR MULTIPLE DWELLING '? MR-1 2 FAMILY RESIDENCES EIMR-2 3-16 UNIT RESIDENCES N i i -- 1 1 f V1 Q Uf 1 V7 t/f LLI l UJ% 04 z 2 l 'S '3AV Pa£Z aZ 1N3W18VdV llNn 9 1N3W1HVdV llNll 4 "S "3AV HSIONVIS 1N3W1HVdV 11Nn b m 1N3W1HVdV llNn v m ION301S38 AIIWV3 3I9NIS -- { 3ON30IS38 AIIWV3 319NIS 1NVOVA 'S "3AV PuZZ 1N3W18VdV IINn 91 1N31N1HVdV iINn 91 'S '3AV istZ 30N90IS38 AIIWV3 3I9NIS 1N3W1HVdV llNn St 'S '3AV 410Z 3snOH38VM ON1011f19 IVIO83WWOO 1NVOVA 'S '3 AV 416t HOdnHO 3383 IVOI13JNVA3 013138 18 r m Cw 0?o _Q ?] W W (L J L.L 0 Lu LL J J Wtm z J O? w O U LL J O O w m u Q S U it 2232 E. 66th ST. PETITION SIGNATURES PROPERTY OF OWNERS WHO SIGNED PROPERTY OF OWNERS WHO DID NOT SIGN LD 1=?b 24 116 2 \GA? u? 23 o? o `` 3 22 21 20 1 , 19 7 16 ff e 17 ski 16 1 ;0 15 11 Y 14 v :2 0 13 „n z 2 `I\ to v 22 N 1 o 3 21 ??• 4 2o 5 ?. 191d. ?r1???1 Jam. . • 241 g5, o fy) 2 23±a?1o 3 22 ?J) 4 21 5 20Cg1 18 6 17 16 10 j .) I s 11 ?5) 14 of ?? i2 0 (441 13 Lrl ° 2 41)4 1?4)23 3? (yp) 22 l 4 ?aq) 21 X11) 5 v# T 20 6 v t 9 1061) 7 18 Vgtt ?101? 8 17 ?t"): to -)s --y 1 I 4 1 t "- z 1 771 4 ? 5? 6 r ?\ 7 ZJ ..5 8 I .Z 9 IO r ? ° 12 V-- STREET ? I wi J23 2 °i 22•x'\ 21 t',4? 4 20'`4)1 1 5 t9 i ?ti .? 10 I 1 12 , .?{???}. .(X..?• 7 i::' r-; 17fq), N t3 16 1 ?) 9 0 15 i[ M rt: ? ?v I bv.b 11 12 R 1e ? J 1 • 2 ??? ? - 2-2 - o l 2J 1 H 6'?w ,. J%1to J 7 4 17 ? 6 ?, ? N Go r10 1 11 12 l3 ' i4\ Go ?"-,10 *? I I i2 I3 24 .r ? 22 %J ?o / Q j e- • ,Li w CITY OF RICHFIELD, MINNESOTA • Council Letter No. 231 Agenda, October 9, 1989 Issue Statement: First reading consideration of an amendment to the Zoning Ordinance which would permit transitional activities in the C-3 district. Background: The City Council created and adopted a new C-3 high density commercial zoning district on June 22, 1987. The general goals cited at that time included the following: - Creating a favorable environment to foster the growth of appropriate businesses. - Minimizing or eliminating the conflicts between the residential and commercial areas. - Broadening the tax base providing for economic growth and employment opportunities. Most of the buildings in the district became nonconforming and limitations were imposed on the expansion of such structures. Similarly, existing uses which rely on outdoor storage were made • nonconforming uses and could not be expanded to occupy additional land area. The C-3 district has been effective in helping to attract a potential developer to the area. It is, however, recognized that an extended period of time may still be required to fully develop the entire area. In the interim, it is necessary to permit businesses to remain viable. To that end, activities with respect to the land, structures or uses would be permitted which would not have the effect of either delaying the transition or increasing the public costs. Control over such activities is necessary to avert any adverse impact. Recommended Motion: Approve first reading of an amendment to the Zoning Ordinance to add: Transitional Activity Permits - C-3 District and schedule the public hearing and second reading for the November 13, 1989 City Council meeting. Basis of Recommendation: 1. The Planning Commission reviewed and, with revisions, recommended the amendment permitting transitional activities in the C-3 district. 2. The City Attorney suggested the proposed amendment and has reviewed and clarified the changes in the recommendation of the Planning Commission. . 3. The proposed permit system defines the allowed activities, imposes controls, allows the imposition of conditions as well as time limitations and provides for revocation. 4. Certain property owners and business interests have requested the ability to further utilize properties in ways that would not impede long term development. Alternative Recommendation: 1. The City Council could decide not to adopt the amendment permitting transitional activities on the basis that the existing C-3 district requirements have been effective in controlling use of property. 2. The City Council could modify the amendment setting time limits or scope of activity. 3. The City Council could refer the amendment back to the Planning Commission with instructions. Discussion/Decision Mode: The next Council meeting which will allow the proper legal notice to be published for the public hearing and second reading is November 13, 1989. Respec u ly submitted, 0 JDP:sae James 0. Prosser City M 11 • SUBJECT: Transitional Activity Permits - C-3 District 1. At SS520.31, subd. 3, add a new paragraph (g) which would read: (g) uses permitted in accordance with the terms of a current and valid Transitional Activity Permit issued pursuant to subsection 520.55. 2. Add a sentence to SS520.33 to read: The expansion of a nonconforming structure permitted in this subsection shall not require the issuance of a Transitional Activity Permit under subsection 520.55. 3. (Change the title of subsection 520.33 to "Nonconforming Structures.") 4. Add subsection 520.22 as follows: 520.55 Transitional Activity Permits Subd. 1. Purpose. The City Council recognizes that the development potential within the C-3 district may require an extended period of transition to be fully realized. The • City Council further recognizes that it may be appropriate and desirable to permit, subject to the conditions and limitations of this subsection, the owners of lands within the C-3 district to engage in certain activities with respect to the land, the structures or the uses during the transition period which will both permit commercial enterprises within the C-3 district to remain viable but which will not have the effect of either delaying the transition or increasing the public costs connected with such transition. This subsection is intended to establish the circumstances under which certain transitional activities may take place and to set forth the regulations, limitations and conditions applicable to such activities. Subd. 2. Transitional Activities. The extension or expansion of a nonconforming use or structure or the development or a nonconforming parcel shall be referred to as transitional activities. Subd. 3. Permit Required. It shall be unlawful for the owner or occupier of any land within the C-3 district to engage in any transitional activity without having first obtained a permit to do so. It shall be unlawful for the owner or occupier of such land to engage in any transitional activity in contradiction to the terms and conditions of any issued • transitional permit. • Subd. 4. Application for a Transitional Activity Permit shall be made to the director on forms provided by the City and shall contain or be accompanied by the following: (a) a site plan drawn to scale showing the dimensions of the parcel and the dimensions and locations of all structures; (b) in instances where the site is to be utilized in connection with a use or structure located on a contiguous parcel, the site plan shall contain the same detail for the contiguous parcel; (c) the proposed uses; (d) the proposed modifications, alterations, renovations or improvements to be made in connection with the transitional activity, and the estimated cost of each; (e) the time for completion of all modifications, alterations, renovations or improvements; (f) evidence of ownership or interest in the property; (g) estimated change in market value; 0(h) location and description of any signs proposed to be located on the site; and (i) the fee specified in Appendix D of this Code. Subd. 5. Public Hearing. The provisions of subsection 520.35, subd. 5 shall be applicable to public hearings concerning the issuance of Transitional Activity Permits. Subd. 6. Criteria and Standards. A Transitional Activity Permit shall not be granted unless the City Council makes the following findings: (a) the transitional activity is in connection with an existing use or structure allowable in the district as either a permitted or nonconforming use or structure; (b) the transitional activity will maintain the continued vitality and economic success of the applicants business during the transition period of the C-3 district; (c) the transitional activity will not have an adverse impact upon development of land within the C-3 district in the manner intended for the district under the . City's land use regulations or its comprehensive plan; • (d) the transitional activity will not materially increase the potential public cost of development within the C-3 district. (e) the transitional activity will be compatible with surrounding uses, will have no adverse impact upon surrounding properties, and will be in full compliances with all standards and requirements contained in this code applicable to sites and structures in C-2 districts. Subd. 7. Duration of Permit. Any Transitional Activity Permit granted by the City Council shall state on its face the expiration date of such permit. A request for a new Transitional Activity Permit may be made during the last six months of an existing Transitional Activity Permit. The request shall be in the form of the application as required by Subd. 4. of this subsection and shall be reviewed and subject to all the requirements for Transitional Activity Permits contained in this subsection. Subd. 8. Conditions. In approving a Transitional Activity Permit, or any extension thereof, the Council may place conditions and limitations upon the permit which, in the Council's discretion will assure: 0 (a) that the transitional activity will be compatible with surrounding uses; (b) that the activity is merely of a transitional nature and will not impede the orderly development of the C-3 district; and (c) that the public costs occasioned by the ultimate development of the C-3 district will not be materially increased as a result of the transitional activity. Subd. 9. Revocation. The City may revoke any Transitional Activity Permit granted under this subsection. The procedure to be followed in considering such action shall be the same as the procedure described in Subsection 545.09,.subdivision 7 of this code. Subd. 10. Permit Not Assignable. The right to engage in Transitional Activities shall be the personal right of the permittee names on the permits; and may not be transferred or assigned to another even though such other person or entity may succeed to permittee's interest in the land. The permit shall terminate upon such transfer or assignment, and permittee's successor in interest in the land shall not engage in any transitional activity until such successor has obtained a new Transitional Activity Permit. • P89-3-0023D 77 ? CITY OF RICHFIELD, MINNESOTA Council Letter No. 230 Agenda October 9, 1989 Issue Statement: 40 Second reading consideration of an ordinance to rezone the property located at 2232-2236 East 66th Street to "C-2" general commercial district. Background: Richfield Credit Union has requested the rezoning of 2232-2236 East 66th Street to "C-2" general commercial district, in order to allow the construction of a financial institution. On September 25, 1989, the City Council gave first reading to an ordinance rezoning the Credit Union property and scheduling the second reading and public hearing for October 9, 1989. The approval given at first reading was conditioned upon an opinion by the City Attorney concerning the sufficiency of the petition which initiated the rezoning in this case. The City Attorney's written opinion, which is attached, concludes that the petition would require signatures from owners of 50% of the land within 300 feet of the land proposed to be rezoned. The petitions submitted as of October 6, 1989 represent only 49.6% of the.land within 300 feet of the proposed area to be rezoned. Consequently, the City Council at this time lacks the authority to give second reading to the proposed ordinance. The Credit Union has been informed of the insufficiency of its petition. The Credit Uniion has stated that they may have an additional signature on a petition prior to Council action on October 9, 1989. Recommended Motion: Adopt the opinion of the City Attorney as attached. Basis of Recommendation: The City Attorney in an opinion dated September 27, 1989 states that "the Credit Union petition, which does not contain the requisite number of signatures is defective as an owner initiated petition for rezoning". Alternative Recommendation: The petitioners stated that they would present the Council with an additional signature at the Meeting on October 9, 1989. The attached letter (230-A) is presented if additional signature are presented. Discussion/Decision Mode: Legal notice of a public hearing was published in the Sun Current and notices were mailed to property owners within 350 feet as required. If the opinion of the City Attorney is adopted by the Council, then the City Council will not be in a position to give second reading to the ordinance and, consequently, there will be no purpose served by a public hearing. Re fully submitted, Jam s . Prosser Cit anager ' SEP 28 '89 11:02 HOLMES & GRAVEN P.2 MEMORANDUM 0 TO: Mayor and Council Members FROM: JBD DATE: September 27, 1989 RE: Richfield Credit Union _ Petition to Rezone Property At the September 25, 1989 City Council meeting I was directed to render my legal opinion based upon the following facts: 1. Richfield Credit Union ("Applicant") is the owner of three contiguous tracts of land having street addresses of 2232, 2234 and 2236 East 68th Street (the "Land"). 2. The Land is currently zoned "R": and was so zoned when aeouired by Applicant. 3. The Applicant wishes to construct a building on the Land to house its activities. The proposed use may be conducted only in the. C-2 districts of the city. 4. The Applicant has filed a petition seeking to rezone the Land from R to C-2. 5. The petition was signed by Applicant and contained the signatures of a number of the owners of property within 300 feet of the Land. However, the. petition was not signed by the owners 5096 of the property located within 300 feet of the Land. 0 SEP 28 '89 11:02 HOLMES & GRAVEN P.3 10 ON Richfield Mayor and Council Members September 27, 1989 Page 2 8. Subsection 545.11 subdivision 4 of the Richfield Ordinance Code reads in relevant part: Subd. 4. Initiation. An amendment to this code may be initiated by the council, planning commission, or by the petition of the owners of not less than fifty percent of the land proposed to be rezoned and by the owners. of at least fifty percent of the land within three hundred feet of the land proposed to be rezoned. Properties owned by federal, state, municipal entities or other political subdivisions shall be excluded from any computation of the percentage of landowners necessary for rezoning petitions initiated by landowners. The question posed is whether the petition for rezoning is defective for failure to comply with the requirements of the above quoted ordinance. Discussion Under any clear reading on the ordinance the petition is defective for • failure to contain the requisite signatures. The petition can survive only if it is determined that the requirement, itself, is improper. A. StatutorX Authority. Minnesota Statutes, Section 462.357 subd. 4 contains the grant or authority to cities to amend their zoning regulations. That section reads in relevant part: Subd. 4. Amendments. An amendment to a zoning ordinance may be initiated by the governing body, the planning ageney, or by petition of affected property owners as defined in the zoning ordinance. (emphasis supplied) Subsection 545.11 subd. 4, in effect, defines affected property owners to mean the owners of the land sought to be rezoned and the owners of land within 300 feet of the land sought to be rezoned. Consequently, the city has, in accordance with the authority granted it is the statute, defined the area of land affected by rezonings. . y SEP 28 89 11:03 HOLMES & GRAVEN Richfield Mayor and Council Members September 27, 1989 Page 3 P. 4- B. Deletration. It the requirement that the petition must be signed by the owners of at least 50% of the land within 300 feet of the land sought to be rezoned is seen as a delegation of the council's legislative power, then the requirement is improper. it is a well settled principle in zoning law that a council may not base its land use decisions on either the objections or the support of the neighborhood. (See, for example, Minnetonka Congregation of Jehovah's Witnesses v. Svee, 226 N.W.2d 306 (1.975)) The Minnesota Supreme Court has twice had the opportunity to examine 0 petition requirements which are similar in nature to the provision contained in the Richfield Code. In the first ease, State v. City of Minneapolis, 97 N.W.2d 273 (1959) the could voided a statutory "consent" provision which had been used by Minneapolis in consideration of zoning matters. The provision required that rezoning initiated by petition must include the written consent of the owners of 2/3rds of the property within 100 feet of the property to be rezoned. The court's decision is contained in the following language from the opinion: We are of the opinion that the consent clause. of S 462.18, as a prerequisite to the exercise of the city council's legislature authority to amend the comprehensive zoning ordinance, constitutes an unlawful delegation of power to impose restrictions on real property, and renders this provision of the statute invalid...; and that it is an unreasonable exercise of the police power to rest control of property uses in the hands of the owners of other property." In the second case, O'Brien v. City of St. Paul, 173 N.W.2d 462 (1969), the court took the opposite position and unheld a nearly identical provision contained in • the St. Paul ordinances. The court in O'Brien took the position that restrictions on the use of land imposed through zoning benefit the surrounding property, and that 7 SEP 28 '89 11:03 HOLMES & GRAVEN P.5 b . Richfield Mayor and Council Members September 27, 1989 Page 4 the consent merely serves as an indication by the owners of surrounding property of their willingness to waive those benefits if the property is rezoned. Consequently, according to the O'Brien court: "[The ordinance provisions] do not vest in adjoining property owners the power to legislate or impose restrictions but confer the right to waive restrictions which have already been established by the city." The Minnesota Supreme Court has had no further opportunity to consider "consent" ordinances since the O'Brien decision. The Court did, however, in Lutter v. City of Burnsville, 295 N.W.2d 809 (1980) make the following observation: "The [United States Supreme Court] in City of Eastlake distinguished earlier cases in which it held that legislature power may not be delegated 'to a narrow segment of the community' such as those whose property abutted city streets or. those who owned property within 400 feet of a proposed variant land use." Whether this suggests that our court might overrule O'Brien in the next case to come before it is sheer speculation. It is also very difficult to articulate any meaningful distinction between the two cases which our court has decided on this topic. As one commentator described it "some challenges have been successful, some not." The O'Brien case articulated several factors which were important to the decision. 1. The consent requirement was authorized by statute. . 2. The.property owner seeking rezoning purchased the land under its existing zoning classifieation with no expectation that it could be changed. 3.- The consent requirement was a precondition to consideration of the petition rather than A condition placed upon. actual approval. so put great reliance on that factor. It really does not seem to have much to do with the "consent waiver" issue. C. Conclusion On the basis of the foregoing; it is my legal opinion that the provision contained in suNection 545.11 subdivision 4 of the Code requiring that owner initiated petitions for rezoning be signed by the owners of 50% of the land sought to be rezoned and the owners of 50% of the land within 300 feet is valid and enforceable. Consequently, it is further my opinion that the Credit Union petition, which does not contain the requisite number of signatures is defective as an owner initiated petition for rezoning. It is important to note, however, that this opinion does not touch on the merits of a rezoning of the Land, nor should it be construed to preclude consideration of rezoning following a proper initiation in accordance with the provisions of subsection 545.11 subdivision 4. i RC160-1 r l 0 RICHFIELD CHAMBER o1 COMMERCE 6637 LYNDALE AVENUE SO. RICHFIELD, MINN 55423 Telephone: 866-5100 TO: Mayor Ouam, Councilpersons and City Manager FROM:. John Kenealey, Executive Secretary RICHFIELD CHAMBER OF COMMERCE DATE: September 25, 1989 The Board of Directors of the Richfield Chamber of Commerce passed a resolution at their September 20th meeting recommending the approval of the rezoning of three lots at 2232-2236 East 66th to general commercial zoning to permit the construction of a new- facility by Richfield Schools Credit Union. It is the position of the Chamber of Commerce that this would permit a logical and reasonable development of this property. John Kenealey Executive Secretar Richfield Chamb of Commerce JK:ks 11 REQUEST FOR REZONING FROM MR-2 TO C-2 FOR PURPOSE OF ZONING CHANGE • Street Address: 2232-2236 East 66th Street Legal Description: Lots 12, 13 and 14, Block 7, New Ford Town, together with the South 1/2 of the vacated alley accruing thereto. We, the undersigned, being owners of land within 300 feet of the land described above, do hereby concur in this rezoning request. Signature of Owners* Address ,!19 / ?r3 ? 3 ??? WPD ie? 6 6-13 spa d ? -5 k • *For purposes of determining if petition contains the proper number of signatures to intitate the rezoning process, signatures may not be removed once a petition is signed and returned to the Planning Division. J W</-g REQUEST FOR REZONING FROM MR-2 TO C'_2 FOR PURPOSE OF zCNTNG cHANm Street Address: 2212-2236 66th StrPPt Past Legal Description: Lots 12, 13 and 14, Block 7, New Ford-Town, together with the South 1/2 of the vacated alley accruing thereto. We, the undersigned, being owners of land within 300 feet of the land described above, do hereby concur in this rezoning request. Signature of Owners* Address \-V 01 *For purposes of determining if petition contains the proper number of signatures to intitate the rezoning process, signatures may not be removed once a petition is signed and returned to the Planning Division. &)2 i Ll REQUEST FOR REZONING FROM mg-2 TO r_2 FOR PURPOSE OF 20NTNC; CgANC;E Street Address: 2212_2216 66th st-rF-?et RaSt Legal Description: Lots 12, 13 and 14, Block 7, New Ford'Town, together with the South 1/2 of the vacated alley accruing thereto. We, the undersigned, being owners of land within 300 feet of the land described above, do hereby concur in this rezoning request. Signature of Owners* 0 V.1 n Co Sl A.' C50 Address *For purposes of determining if petition contains the proper number of signatures to intitate the rezoning process, signatures may not be removed once a petition is signed and returned to the Planning Division. N N N ? N N N Mj ?1 f2 W z NSIONYLS U It 12 f }- J W N it 7?7I I N N N N N N N N M402 I_ Lr a v ?_ W_ v/61 J_ x w ea w? ?IOll3lO"Ol : • • • •• • • • _ _ _ •'r. :•11?:Jr??1?.... _ _ _ _ _- _ _ _ _ _ _ - O!13a9N01 3AY Yt03]?-(_ M trz^-ti?•t __ _ - - - - - u 'a _ - - - - 44 91 r"'__ `?Y i?+•±Y ;i'•'i'•.• .?> _ _ _ __ -ter. I 41 91 YI it '1.3..J?_ a•..••?.•:•,.?i?,?:tyy;:.?:yti?t.•. •y'••?.?•. ••.••.: ???--?_????? 1Il Y1 S1 41 v I ; j+' '?'?'.'?.•v,•,., ,111 ` Yl it lam. ?. ??", ,• ? ?' ???- ? 11 Vl fl 44 21 41 1 46 '1. 41 OI I F^^r: , 4+ O1 101113 i i C , •3^? -- 1011,13 snannioo MY1d r. _. \ -. MYtd 0Nt1M?0 ? r _.-. , 3AT ON/11YOd , ONt 1"10 I •- 3A1 ONt11mod 09:AVHSIGNIS' 41s vlr ?; ¦ 1 YI NO1N113 tl NOI NII] 04 ? I =-, ? ?uZ SN3A312S 'Ir SN3A31S 'JA GNZ7, 3At 1311021" 3At 13110]114 113 0 5 1119 11 3 0 51119 N1YOM 1143" ? I' `- ? •?i 14190"1143" AYn951111 •'''' - - - _ - r e - -_ j'Atln9Sllld 1Nts131e •' S 3At/ 1SlZ 1N1S131d ON1tl0 131YYtN 131 YYvN Li 0,131juvo 3A1 31toNAl 3At 3190NA1 N]Iral1 a ?..4f ???=-\ 14]1x011 J / xta103 V i xta103 N 1NOdn0 Imodne NOStl3w3 1N0w3Ya , -..• - 1 •'?•1 ?•,? ,--fir-i NOSY3w3 OYIYIO ::. - 17 loloemn ONIAMI S3wR r^r __ _ _ I- I ?: S3w1f xONII N 1001 N10YOw 141901 NO1M3N I -^I _- I?^r^?. I^ Y3All0 •? -_-_. ?`_^_- --_ __ -._- ^-• ? ? 1!I NOl M3N 03A110 3A1 NN3d ._ - -- -- __ - _ __ ?- ?• N33n0 3A1 NN3d 113SSnY N33n0 1135Sn" Nt01Y3w5 Y 34S 51w0141 ii _ -- - - StwONi NOldn .?- 1N3JNIA ; -- --- -_--- `--?--, 1N3JNIA 144$n91451M ]n1 S7xY3x 3At S3xdlx -Z z 0 2232 E. 66th ST. COMPREHENSIVE DEVELOPMENT PLAN ® MIXED LAND USE E3 MEDIUM DENSITY/BUFFER SINGLE FAMILY RESIDENCE E. 66TH ST. N Q U • • INSTITUTIONAL El PARKS N i i 4 ` N W O J W c? z O a?a d I vs T ? 1 1 Q =:1 v. COMMERCIAL VACANT QUASI-PUBLIC 2232 E. 66th ST. LAND USE ® APARTMENTS El PARKS DUPLEX SINGLE FAMILY RESIDENCE N T. N y Q S Q C W U v I H W I W Q ? H h _ I I I I i I I 74,E E. 66TK ST. T ti ti • • vi W , N < ? W 3 > O ? Q J ? W pt W 2 O r W --- 0-F l O N i i f ? V: r- 2232 E. 66th ST. ZONING ED C-2 GENERAL COMMERCIAL I INDUSTRIAL a R RESIDENCE 6 I M-j I I I E2A ?x ( Y t < Y ?( ! OEM" N W 1 Q Q Q W U t%ft El MR MULTIPLE DWELLING El MR-1 2 FAMILY RESIDENCES El MR-2 3-16 UNIT RESIDENCES 4 N I I 1 N N 1 N N I N W 1L7 LLI ?: LLJ 1 W H 1 ••::: LL. I N N ??• •'•• • ' 2 1 . . . Z I I I I I I 1 E. 66TK ST. -4' CITY OF RICHFIELD, MINNESOTA Council Letter No. 229 Agenda October 9, 1989 • Issue Statement: Award of Contract for 1989 Storm Sewer Improvement Project at 66th Street/Fourth and Fifth Avenues. Background: On October •2, 1989, a formal bid opening was held for this project with the following results: S.M. Hentges & Son, Inc. $65,000 F.F. Jedlicki 65,180 Brown & Cris, Inc. 69,074 J.P. Norex, Inc. 72,635 The engineer's estimate on this project was $67,000. The estimate takes into account the fact that this is a small storm sewer job, and late in the construction year for this work. The project calls for a new pipe to be installed to Milner Pond from the low spot in the alley south of 66th Street between Fourth and Fifth Avenues. The present arrangement of pipes in 66th Street allows occasional flooding in the alley. This site was a priority area in the recent storm water drainage study. This project was bid earlier this fall along with the work on Newton Avenue, north of 66th Street. Hennepin County rejected • our plan to open cut 66th Street. So, the pipe is proposed to be jacked (tunneled) under 66th Street. Easements are needed from 6401 Fourth Avenue and 6600 Fifth Avenue to perform the work. The property owners have been contacted. Recommended Motion: Approve an award of contract to S.M. Hentges & Son, Inc., in the amount of $65,000. Basis of Recommendation: 1. S.M. Hentges & Son, Inc. submitted the lowest responsible bid. 2. The work is a priority as previously directed by the City Council. Alternative Recommendation: None. Discussion/Decision Mode: This item is on the October 9, 1989 Council agenda. Staff is asking for approval at this time in order to facilitate timely completion of this project. City Ma ag Respe f submitted, James D. Prosser JDP/sdr E CITY OF RICHFIELD, MINNESOTA Bid Opening October 2, 1989 11:00 A.M. Storm Sewer Installation, Street Reconstruction and Appurtenant Work Bid No. 89-24 Pursuant to requirements of Resolution No. 1015, a meeting of the Administrative Staff was called by Thomas P. Ferber, City Clerk, who announced that the purpose of the meeting was to receive, open and read aloud, bids for storm sewer installation, street reconstruction and appurtent work, bid no. 89-24, as advertised in the official newspaper on September 13, 1989. Present: Thomas Ferber, City Clerk Donald Fondrick, Community Services Director Cheryl Krumholz, City Manager Representative CJ The following bids were submitted and read aloud: VENDOR BID TOTAL SECURITY F.F Jedlicki, Inc. 5% Bid Bond $65,180.00 Eden Prairie, MN Brown & Cris, Inc. 5% Bid Bond $69,074.00 Lakeville, MN J.P. Norex, Inc. 5% Bid Bond $72,635.00 Chanhassen, MN S.M. Hentges & Sons, Inc. 5% Bid Bond $65,000.00 Shakopee, MN The City Clerk announced that the bids would be tabulated and considered at the October 9, 1989 City Council Meeting. Thomas P. Ferber City Clerk 0 CITY OF RICHFIELD, MINNESOTA Council Letter No. 228 Agenda, October 9, 1989 • Issue Statement: In July, 1985, the City Council passed an ordinance which changed the way the city reviewed zoning ordinance variance requests. The ordinance created a Committee of Hearing Examiners which constituted a special committee of the Board of Adjustments and Appeals. The hearing examiners were given the power to make variance decisions, although a denial could be appealed to the City Council. Prior to this ordinance change, variances were reviewed by the Planning Commission and then granted or denied by the City Council acting as the Board of Adjustments and Appeals. Connie Murray and Vern Luettinger were=,appointed by the Council to act as hearing examiners. The ordinance creating the hearing examiner process has been extended annually. Extension Background: of Hearing Examiner process for reviewing variances. A resolution providing for an additional extension is attached to this Council letter. This process is one of the items being currently reviewed as part of the comprehensive review of the Zoning Ordinance by the Planning Commission which started in August. • Recommended Motion: Adopt the attached resolution extending the hearing examiner process for one year. Basis of Recommendation: The hearing examiner process has worked well from staff's perspective, allowing routine variance matters to be handled expediently. Alternative Recommendation: Not pass the resolution and allow the process to revert back to the previous process requiring Planning Commission and City Council approval. Discussion/Decision Mode: This matter is scheduled for Council action on October 9, 1989. Without Council action, the variance process will revert back to the previous process requiring Planning Commission and City Council action. y submitted, Resra?nager Jamosser • Cit JDP:sae J-v • RESOLUTION NO. RESOLUTION EXTENDING HEARING EXAMINER PROCESS FOR ZONING ORDINANCE VARIANCE REVIEW WHEREAS, the City Council of the City of Richfield, Minnesota established a hearing examiner process for zoning ordinance variance review; and WHEREAS, this process expired on September 12, 1989; and WHEREAS, the City Council of the City of Richfield, Minnesota has reviewed the process and determined that the hearing examiner process has worked well and it is desirable to continue it. NOW, THEREFORE BE IT RESOLVED by the City Council of the • City of Richfield, Minnesota that the hearing examiner process established in Section 545.01 - 545.07 of the ordinance is hereby extended for an additional one year period and will expire at the end of this additional year unless the City Council, by resolution, extends it for an additional period or periods. Passed by the City Council of the City of Richfield, Minnesota this 9th day of October, 1989. Steven J. Quam, Mayor ATTEST: Thomas Ferber, City Clerk U ??? CITY OF RICHFIELD, MINNESOTA Council Letter No. 227 Agenda, October 9, 1989 Issue Statement: Authorization to enter into Third Party Agreements to implement Community Development Block Grant for H.O.M.E. and GMDCA Child Daycare programs. Background: Third Party Agreements have been prepared by Hennepin County which are required by HUD in each instance where a local unit of government has an agency other than itself implement a CDBG activity. Before Hennepin County may disperse any Year XV CDBG funds, the agreement must be signed between Hennepin county, the recipient, and the City of Richfield. Recommended Motion: Execute the attached Third Party Agreements. Basis Of Recommendation: The Year XV CDBG Program has previously been approved by the City Council in the amount of $34,100, and the execution of the Third Party Agreements would allow Hennepin county to disperse the funds. Alternative Recommendation: None Discussion/Decision Mode: The resolution must be acted upon at the October 9, 1989 meeting to meet Hennepin County processing deadlines. Respectfully submitted, Jam Prosser Cit anager JDP:sae 0 • ATTACHMENT TO HOME-GMDCA served through 1989)_ Day Care - 9 Families served January 1, - September 1989. (approximately 9 families were anticipated to be served through 1989). The following is a summary of those served by the H.O.M.E. and Day Care programs. H.O.M.E. - 122 Households served January 1, - June 30, 1989. (approximately 178 households are anticipated to be r? U THIRD PARTY AGREEMENT URBAN HENNEPIN COUNTY • COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM This agreement made and entered into by and between the City of Richfield (City) and the Greater Minneapolis Day Care Association (Provider). WITNESSETH: WHEREAS, the City is a cooperating unit in the Urban Hennepin County Community Development Block Grant Program (CDBG) by virtue of a joint coopera- tion agreement executed between the City and Hennepin County pursuant to MSA 471.59, and WHEREAS, the City has executed a subrecipient agreement with Hennepin County which allocates $20,000 from the Year XV (FY 1989) Urban Hennepin County CDBG program for the purpose of supporting the activity as identified in Exhibit 1, attached and a part of this agreement, hereinafter referred to as "activ- ity. NOW THEREFORE, in consideration of the mutual covenants and promises contained in this Agreement, the parties hereto mutually agree to the following terms and conditions: 1. The Uniform Administrative Requirements in 24 CFR 570.502 issued by • the United States Department of Housing and Urban Development (HUD), shall apply to activity. 2. The Provider shall be responsible for procurement of all supplies, equipment, services, and construction necessary for implementation of the activity. Procurement shall be carried out in accordance with the OMB Circular A-110. The Provider shall prepare, or cause to be prepared, all advertisements, negotiations, notices, and documents; enter into all contracts; and conduct all meetings, conferences, and interviews as necessary to insure compliance with the above described procurement requirements. 3. The Provider shall be responsible for carrying out any acquisi- tions of real property necessary for implementation of activity. The Provider shall conduct all such acquisitions in its name and shall hold title to all properties purchased. The Provider shall be responsible for preparation of all notices, appraisals, and documen- tation required in conducting acquisition under the latest appli- cable regulations of the Uniform Relocation Assistance and Real Property Acquisition Act of 1970 and of the CDBG Program. The Provider shall also be responsible for providing all relocation notices, counseling, and services required by said regulations. 4. The Provider shall comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 as required under 24 CFR 570.606(a) • and HUD implementing regulations at 24 CFR Part 42; the requirements ?J-C_:3 in 24 CFR 570.606(b) governing the residential anti-displacement and relocation assistance plan under section 104(d) of the Housing and • Community Development Act of 1974 (the Act); the relocation require- ments of 24 CFR 570.606(c) governing displacement subject to section 104(k) of the Act; and the relocation requirements of 24 CFR 570.606(d) governing optional relocation assistance under Section 105(a)(11) of the Act, as pertaining to the activity. 5. The Provider shall maintain records for the expenditure of all CDBG funds it receives, such records to be maintained in accordance with OMB Circular A-110 and A-122, as applicable. All records shall be made available, upon request of the City for monitoring by the City. The City shall have authority to review any and all procedures and all materials, notices, documents, etc., prepared by the Provider in implementation of activity, and the Provider agrees to provide all information required by any person authorized by the City to request such information from the Provider for the purpose of reviewing the same. 6. The Provider shall take all necessary actions required to implement activity and to comply with any related requests by the City, it being understood that the City has responsibility to Hennepin County for insuring compliance with such requirements. The Provider also will promptly notify the City of any changes in the scope or character of activity. 7. The Provider does hereby agree to release, indemnify, and hold 0 harmless the City from and against all costs,. expenses, claims, suits, or judgments arising from or growing out of any injuries, loss or damage sustained by any person or corporation, including employees of Provider and property of Provider, which are caused by or sustained in connection with the tasks carried out by the Provider under this Agreement. 8. The City agrees to provide the Provider with CDBG funds in such amounts as agreed upon in this Agreement to enable the Provider to carry out activity. It is understood that the City shall be held accountable to Hennepin County for the lawful expenditure of CDBG funds under this Agreement. The City shall therefore make no payment of funds to the Provider and draw no funds from Hennepin County on behalf of a Provider, prior to having received from the Provider a request for reimbursement including copies of all documents and records needed to insure that the Provider has complied with all appropriate requirements. 9. The City shall be responsible for the preparation of all requests to Hennepin County for HUD wage rate determinations on activity. The Provider shall notify the City prior to initiating activity, including advertising for contractual services which will include costs likely to be subject to the provisions of Federal Labor Standards and Equal Employment Opportunity and related implementing regulations. Aj?,,e4( ? 10. The City agrees to provide technical assistance to the Provider in the form of oral and/or written guidance and on-site assistance . regarding CDBG procedures and project management. This assistance will be provided as requested by the Provider, and at other times, at the initiative of the City, when new or updated information concerning the CDBG Program is received by the City from Hennepin County and deemed necessary to be provided to the Provider. 11. In accordance with the provisions of 24 CFR 85.43, suspension or termination of this.Agreement may occur if the Provider materially fails to comply with any term of this Agreement. This Agreement may be terminated for convenience in accordance with 24 CFR 85.44. The Agreement may be terminated with or without cause by either party hereto by giving thirty (30) days written notice of such termination. CDBG funds allocated to the Provider under this Agreement may not be obligated or expended by the Provider following such date of termination. Any funds allocated to the Provider under this Agreement which remain unobligated or unspent following such date of termination shall automatically revert to the City. 12. Any material alterations, variations, modifications or waivers of provisions of this Agreement shall only be valid when they have been reduced to writing as an amendment to this Agreement approved by Hennepin County through its Office of Planning and Development and properly executed by the authorized representatives of the parties. All amendments to this Agreement shall be made a part of this Agreement by inclusion in Exhibit 2 which shall be attached at the time of any amendment. • 13. All data collected, created, received, maintained or disseminated for any purpose by the Provider in the performance of this Agreement is governed by the Minnesota Government Data Practices Act, Minne- sota Statutes, Chapter 13, and all other statutory provisions governing data privacy, the Minnesota Rules implementing such act now in force or hereafter adopted, as well as federal regulations on data privacy. 14. During the performance of this Agreement, the Provider agrees to the following: In accordance with the Hennepin County Affirmative Action Policy and the County Commissioners' Policies Against Discrimination, no person shall be excluded from full employment rights or participation in, or the benefits of, any,program, service or activity on the grounds of race, color, creed, religion, age, sex, disability, marital status, affectional/sexual preference, public assistance status, ex-offender status, or national origin; and no person protected by applicable federal or state laws against discrimination shall otherwise be subjected to discrimination. 15. The effective date of this Agreement is July 1, 1989. The termina- tion date of this agreement is December 31, 1990, or at such time as activity is satisfactorily completed prior thereto. Upon expira- tion, the Provider shall relinquish to the City all program funds unexpended or uncommitted for the activity. 0 16. Any program income as a result of the activity shall be returned immediately to the City upon receipt and the provisions of 24 CFR • 570.504 shall apply. 17. Any real property acquired or improved as a result of activity, in whole or in part, using CDBG funds in excess of $25,000 shall either be: a. Used to meet one of the national objectives in 24 CFR 570.208 until five years after expiration of this Agreement; b. Disposed of in a manner that results in the City being reimbursed in the amount of the current fair market value of the property less any portion of the value attributable to expenditures of non-CDBG funds for acquisition of, or improvement to, the property. 18. The following standards shall apply to real property acquired or improved as a result of activity, in whole or in part: a. The Provider shall inform the City at least thirty (30) days prior to any modification or change in the use of the real property from that planned at the time of acquisition or improvements, including disposition. b. The Provider shall reimburse the City in an amount equal to the current fair market value (less any portion thereof attribut- able to expenditures of non-CDBG funds) of property acquired or improved as a result of activity that is sold or transferred for a use which does not qualify under the CDBG regulations. Said reimbursement shall be provided to the City at the time of sale or transfer of the property. 19. The Provider agrees to provide City with an annual audit report consistent with OMB Circular A-110, Uniform Requirements for Grants to Universities, Hospitals and Non-Profit Organizations and OMB Circular A-122 Cost Principles for Non-profit organizations. a. The audit report is to be provided to City on July 1 of each year this Agreement is in effect and any findings of non- compliance affecting the use of CDBG funds shall be satisfied by Provider within six (6) months of the provision date. b. The audit may not be paid from CDBG funds. C. City reserves the right to recover from Provider the full amount of any CDBG funds found to be improperly expended or otherwise disallowed. 20. The Provider shall comply with the general condition of 24 CFR 570.200, particularly sections; (f) (Means of Carrying Out Eligible Activities); and (j) (Constitutional Prohibitions Concerning Church/State Activities). 21. The Provider as appropriate shall comply with the Lead-Based Paint notification, inspection, testing and abatement procedures estab- lished in 24 CFR 570.608. Provider, having signed this Agreement, and the City of Richfield having duly approved this Agreement on , 19 _, and pursuant to such approval the parties hereto agree to be bound by the provisions herein set forth. IN TESTIMONY WHEREOF, the parties hereto have set their hands and affixed their seals this day of 1989. Upon proper execution, this Agreement will be legally valid and binding. CITY OF STATE OF MINNESOTA By Mayor and Its 0 PROVIDER By Its ?- tt- and _ Its THIRD PARTY AGREEMENT URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM EXHIBIT 1. STATEMENT OF WORK The following activity shall be carried out by the Provider under the terms of this Agreement and the details and processes set forth below: 1. ACTIVITY: Child Day Care 2. LOCATION: ADDRESS: Citywide CENSUS TRACT: 3. NUMBER: 084 4. BUDGET: $20,000 5. BENEFIT: L/M (Limited Clientele) 6. DESCRIPTION: • Provide child daycare assistance for Section 8 income eligible households utilizing a sliding fee scale through an agreement with the Greater Minneapolis Day Care Association. 7. GENERAL REQUIREMENTS: Requirements with an "X" are applicable to this activity. [ J Supplemental Agreement [ J Non-Profit Agency [ ] Public Agency [ ] Other An agreement must be executed with any other agency providing a service or implementing an activity on behalf of Provider. Said agreement must contain all pertinent sections contained in Third Party Agreement and such other requirements as are identified herein. [X] Schedule Activity must be implemented in a timely manner and completed by December 31, 1990. %_-2e-C- / ? W2 -! v [X] Environmental Review Record • Per 24 CFR Part 58 Subpart E the environmental review status for this activity has been determined as follows: [ j Exempt (EX) [ J Categorically Excluded (CE) [X] Categorically Excluded/Exempt (CE/EX) [ ] Assessment Required (AR) [ ] Funds Released (FR) Date: [ ] Labor Standards/Equal Employment Opportunity All construction projects of $2,000 or more and financed in whole or part with federal funds shall comply with the provisions of the Davis-Bacon Act (prevailing wage), the Contract Work Hours and Safety Standards Act and the Copeland (Anti-Kickback) Act. All federally funded or assisted construction contracts or subcontracts of $10,000 or more shall comply with Executive Order 11246, Equal Employment Opportunity, as amended, and the regulations issued pursuant thereto, 41 CFR Part 60. [ ] Procurement Standards and guidelines are established in 24 CFR Part 85.36 for the • procurement of supplies, equipment, construction and services for federally assisted programs. All procurement shall be made by one of the following methods. The method used shall be adequately documented and contracts shall contain standard conditions as appropriate. - Small Purchase. (Informal Method) To be followed for the purchase of services, supplies or other property costing in the aggregate not more than $25,000. If small purchase procurement is used, written price or rate quotations must be obtained from an adequate number of qualified sources. - Competitive Sealed Bids. (Formal Advertising) To be followed when the purchase/s, costing in the aggregate, exceeds $25,000. Sealed bids shall be publicly solicited and a firm fixed-price contract is to be awarded to the lowest responsible bidder. This method is preferred for soliciting construction bids. - Competitive Proposals. This method is normally used when more than one source submits an offer, and either a fixed-price or cost- reimbursement type contract is awarded. This method is typically used for procuring professional services. [ ] Uniform Relocation Assistance and Real Property Acquisition The standards described in 49 CFR Part 24 shall apply to activity that involves the acquisition of real property or the displacement of persons, including displacement caused by rehabilitation and demolition. [ ] Residential Antidisplacement and Relocation Assistance • All occupied and vacant occupiable low-moderate income dwelling units demolished or converted to another use as a direct result of activity shall be replaced and relocation assistance shall be provided to each displaced low-moderate income household in accordance with the Urban Hennepin County CDBG Program Anti-displacement and Relocation Assistance Policy, pursuant to Section 104(d) of the Housing and Community Develop- ment Act of 1974, as amended. [ ] Property Management The standards described in 24 CFR Part 570.505 Subpart J shall apply to all real property which was acquired or improved in whole or in part using CDBG funds in excess of $25,000. These standards apply for a period. of five (5) years after the termination of this agreement. [X] Low and Moderate Income Using the applicable Section 8 income limits established by HUD, it shall be demonstrated that a low- and moderate-income activity so indicated in 5. Benefit, above, meets one of the four criteria of 24 CFR Part 570.208, relating to: [ ] Area Benefit [X] Limited Clientele • [ ] Housing [ ] Job Creation or Retention [ ] Prevention or Elimination of Slums and Blight It shall be demonstrated that a slum and blight activity so indicated in 5. Benefit, above, meets one of the following criteria: [ ] Area Determination. The boundaries of the slum or blighted area must be defined and meet the requirements of 24 CFR Part 570.208 (b)(1)• [ ] Spot Basis. The specific conditions of blight or physical decay not located in a slum or blighted area must be described. [ ] Urgent Community Need It shall be demonstrated that an urgent need activity, so indicated in 5. Benefit. above, is designed to alleviate a recent (within 18 months) condition which poses a serious and immediate threat to the health or welfare of the community. [ ] Other Requirements 0 ? THIRD PARTY AGREEMENT URBAN HENNEPIN COUNTY 0 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM This agreement made and entered into by and between the City of Richfield (City) and the South Hennepin Human Services Council (Provider). WITNESSETH: WHEREAS, the City is a cooperating unit in the Urban Hennepin County Community Development Block Grant Program (CDBG) by virtue of a joint coopera- tion agreement executed between the City and Hennepin County pursuant to MSA 471.59, and WHEREAS, the City has executed a-subrecipient.agreement with Hennepin County which allocates $14,100 from the Year XV (FY 1989) Urban Hennepin County CDBG program for the purpose of supporting the activity as identified in Exhibit 1, attached and a part of this agreement, hereinafter referred to as "activ- ity. NOW THEREFORE, in consideration of the mutual covenants and promises contained in this Agreement, the parties hereto mutually agree to the following terms and conditions: 1. The Uniform Administrative Requirements in 24 CFR 570.502 issued by the United States Department of Housing and Urban Development (HUD), is shall apply to activity. 2. The Provider shall be responsible for procurement of all supplies, equipment, services, and construction necessary for implementation of the activity. Procurement shall be carried out in accordance with the OMB Circular A-110. The Provider shall prepare, or cause to be prepared, all advertisements, negotiations, notices, and documents; enter into all contracts; and conduct all meetings, conferences, and interviews as necessary to insure compliance with the above described procurement requirements. 3. The Provider shall be responsible for carrying out any acquisi- tions of real property necessary for implementation of activity. The Provider shall conduct all such acquisitions in its name and shall hold title to all properties purchased. The Provider shall be responsible for preparation of all notices, appraisals, and documen- tation required in conducting acquisition under the latest appli- cable regulations of the Uniform Relocation Assistance and Real Property Acquisition Act of 1970 and of the CDBG Program. The Provider shall also be responsible for providing all relocation notices, counseling, and services required by said regulations. 4. The Provider shall comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 as required under 24 CFR 570.606(a) and HUD implementing regulations at 24 CFR Part 42; the requirements in 24 CFR 570.606(b) governing the residential anti-displacement and relocation assistance plan under section 104(d) of the Housing and Community Development Act of 1974 (the Act); the relocation require- ments of 24 CFR 570.606(c) governing displacement subject to section 104(k) of the Act; and the relocation requirements of 24 CFR 570.606(d) governing optional relocation assistance under Section 105(a)(11) of the Act, as pertaining to the activity. 5. The Provider shall maintain records for the expenditure of all CDBG funds it receives, such records to be maintained in accordance with OMB Circular A-110 and A-122, as applicable. All records shall be made available, upon request of the City for monitoring by the City. The City shall have authority to review any and all procedures and all materials, notices, documents, etc., prepared by the Provider in implementation of activity, and the Provider agrees to provide all information required by any person authorized by the City to request such information from the Provider for the purpose of reviewing the same. 6. The Provider shall take all necessary actions required to implement activity and to comply with any related requests by the City, it being understood that the City has responsibility to Hennepin County for insuring compliance with such requirements. The Provider also will promptly notify the City of any changes in the scope or character of activity. 7. The Provider does hereby agree to release, indemnify, and hold harmless the City from and against all costs, expenses, claims, 40 suits, or judgments arising from or growing out of any injuries, loss or damage sustained by any person or corporation, including employees of Provider and property of Provider, which are caused by or sustained in connection with the tasks carried out by the Provider under this Agreement. 8. The City agrees to provide the Provider with CDBG funds in such amounts as agreed upon in this Agreement to enable the Provider to carry out activity. It is understood that the City shall be held accountable to Hennepin County for the lawful expenditure of CDBG funds under this Agreement. The City shall therefore make no payment of funds to the Provider and draw no funds from Hennepin County on behalf of a Provider, prior to having received from the Provider a request for reimbursement including copies of all documents and records needed to insure that the Provider has complied with all appropriate requirements. 9. The City shall be responsible for the preparation of all requests to Hennepin County for HUD wage rate determinations on activity. The Provider shall notify the City prior to initiating activity, including advertising for contractual services which will include costs likely to be subject to the provisions of Federal Labor Standards and Equal Employment Opportunity and related implementing regulations. C. rjyJ, ?.z 10. The City agrees to provide technical assistance to the Provider in the form of oral and/or written guidance and on-site assistance regarding CDBG procedures and project management. This assistance will be provided as requested by the Provider, and at other times, at the initiative of the City, when new or updated information concerning the CDBG Program is received by the City from Hennepin County and deemed necessary to be provided to the Provider. 11. In accordance with the provisions of 24 CFR 85.43, suspension or termination of this Agreement may occur if the Provider materially fails to comply with any term of this Agreement. This Agreement may be terminated for convenience in accordance with 24 CFR 85.44. The Agreement may be terminated with or without cause by either party hereto by giving thirty (30) days written notice of such termination. CDBG funds allocated to the Provider under this Agreement may not be obligated or expended by the Provider following such date of termination. Any funds allocated to the Provider under this Agreement which remain unobligated or unspent following such date of termination shall automatically revert to the City. 12. Any material alterations, variations, modifications or waivers of provisions of this Agreement shall only be valid when they have been reduced to writing as an amendment to this Agreement approved by Hennepin County through its Office of Planning and Development and properly executed by the authorized representatives of the parties. All amendments to this Agreement shall be made a part of this Agreement by inclusion in Exhibit 2 which shall be attached at the time of any amendment. 13. All data collected, created, received, maintained or disseminated for any purpose by the Provider in the performance of this Agreement is governed by the Minnesota Government Data Practices Act, Minne- sota Statutes, Chapter 13, and all other statutory provisions governing data privacy, the Minnesota Rules implementing such act now-in force or hereafter adopted, as well as federal regulations on data privacy. 14. During the performance of this Agreement, the Provider agrees to the -following: In accordance with the Hennepin County Affirmative Action Policy and the County Commissioners' Policies Against Discrimination,.no person shall be excluded from full employment rights or participation in, or the benefits of, any program, service or activity on the grounds of race, color, creed, religion, age, sex, disability, marital status, affectional/sexual preference, public assistance status, ex-offender status, or national origin; and no person protected by applicable federal or state laws against discrimination shall otherwise be subjected to discrimination. 15. The effective date of this Agreement is July 1, 1989. The termina- tion date of this agreement is December 31, 1990, or at such time as activity is satisfactorily completed prior thereto. Upon expira- tion, the Provider shall relinquish to the City all program funds unexpended or uncommitted for the activity. 0 16. Any program income as a result of the activity shall be returned immediately to the City upon receipt and the provisions of 24 CFR 570.504 shall apply. 17. Any real property acquired or improved as a result of activity, in whole or in part, using CDBG funds in excess of $25,000 shall either be: a. Used to meet one of the national objectives in 24 CFR 570.208 until five years after expiration of this Agreement; b. Disposed of in a manner that results in the City being reimbursed in the amount of the current fair market value of the property less any portion of the value attributable to expenditures of non-CDBG funds for acquisition of, or improvement to, the property. • 18. The following standards shall apply to real property acquired or improved as a result of activity, in whole or in part: a. The Provider shall inform the City at least thirty (30) days prior to any modification or change in the use of the real property from that planned at the time of acquisition or improvements, including disposition. b. The Provider shall reimburse the City in an amount equal to the current fair market value (less any portion thereof attribut- able to expenditures of non-CDBG funds) of property acquired or improved as a result of activity that is sold or transferred for a use which does not qualify under the CDBG regulations. Said reimbursement shall be provided to the City at the time of sale or transfer of the property. 19. The Provider agrees to provide City with an annual audit report consistent with OMB Circular A-110, Uniform Requirements for Grants to Universities, Hospitals and Non-Profit Organizations and OMB Circular A-122 Cost Principles for Non-profit organizations. a. The audit report is to be provided to City on July 1 of each year this Agreement is in effect and any findings of non- compliance affecting the use of CDBG funds shall be satisfied by Provider within six (6) months of the provision date. b. The audit may not be paid from CDBG funds. C. City reserves the right to recover from Provider the full amount of any CDBG funds found to be improperly expended or otherwise disallowed. 0 20. The Provider shall comply with the general condition of 24 CFR 570.200, particularly sections; (f) (Means of Carrying Out Eligible Activities); and (j) (Constitutional Prohibitions Concerning Church/State Activities). 21. The Provider as appropriate shall comply with the Lead-Based Paint notification, inspection, testing and abatement procedures estab- lished in 24 CFR 570.608. Provider, having signed this Agreement, and the City of Richfield having duly approved this Agreement on 19 _, and pursuant to such approval the parties hereto agree to be bound by the provisions herein set forth. IN TESTIMONY WHEREOF, the parties hereto have set their hands and affixed their seals this day of , 1989. Upon proper execution, this Agreement will be legally valid and binding. CITY OF STATE OF MINNESOTA By Mayor and Its PROVIDER South Hennepin Human Services Council By = - - _ Its Executive "Director and i V k-6t?N-4) Its Board Cha'jr 0 THIRD PARTY AGREEMENT URBAN HENNEPIN COUNTY • COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM EXHIBIT 1. STATEMENT OF WORK The following activity shall be carried out by the Provider under the terms of this Agreement and the details and processes set forth below: 1. ACTIVITY: Household and Outside Maintenance for Elderly (H.O.M.E.) 2. LOCATION: ADDRESS: Citywide CENSUS TRACT: 3. NUMBER: 086 4. BUDGET: $14,100 5. BENEFIT: L/M (Limited Clientele) 6. DESCRIPTION: • Provide routine home maintenance/repairs and homemaker services through the H.O.M.E. program to the elderly and handicapped. This is a program of the South Hennepin Human Services Council. 7. GENERAL REQUIREMENTS: Requirements with an "X" are applicable to this activity. [ ] Supplemental Agreement [ ] Non-Profit Agency [ ] Public Agency [ ] Other An agreement must be executed with any other agency providing a service or implementing an activity on behalf of Provider. Said agreement must contain all pertinent sections contained in Third Party Agreement and such other requirements as are identified herein. [X] Schedule Activity must be implemented in a timely manner and completed by December 31, 1990. 0 .?2 e-/,/, [X] Environmental Review Record • Per 24 CFR Part 58 Subpart t the environmental review status for this activity has been determined as follows: [X] II II II II (CE/EX) [ ] Labor Standards/Equal Employment Opportunity All construction projects of $2,000 or more and financed in whole or part with federal funds shall comply with the provisions of the Davis-Bacon Act (prevailing wage), the Contract Work Hours and Safety Standards Act and.the.Copeland (Anti-Kickback) Act. All federally funded or assisted construction contracts or subcontracts of $10,000 or more shall comply with Executive Order 11246, Equal Employment Opportunity, as amended, and the regulations issued pursuant thereto, 41 CFR Part 60. [ ] Procurement Standards and guidelines are established in 24 CFR Part 85.36 for the procurement of supplies, equipment, construction and services for • federally assisted programs. All procurement shall be made by one of the following methods. The method used shall be adequately documented and contracts shall contain standard conditions as appropriate. - Small Purchase. (Informal Method) To be followed for the purchase of services, supplies or other property costing in the aggregate not more than $25,000. If small purchase procurement is used, written price or rate quotations must be obtained from an adequate number of qualified sources. - Competitive Sealed Bids. (Formal Advertising) To be followed when the purchase/s, costing in the aggregate, exceeds $25,000. Sealed bids shall be publicly solicited and a firm fixed-price contract is to be awarded to the lowest responsible bidder. This method is preferred for soliciting construction bids. - Competitive Proposals. This method is normally used when more than one source submits an offer, and either a fixed-price or cost- reimbursement type contract is awarded. This method is typically used for procuring professional services. [ ] Uniform Relocation Assistance and Real Property Acquisition The standards described in 49 CFR Part 24 shall apply to activity that involves the acquisition of real property or the displacement of persons, including displacement caused by rehabilitation and demolition. • Exempt (EX) Categorically Excluded (CE) Categorically Excluded/Exempt Assessment Required (AR) Funds Released (FR) Date: [ ] Residential Antidisplacement and Relocation Assistance All occupied and vacant occupiable low-moderate income dwelling units demolished or converted to another use as a direct result of activity shall be replaced and relocation assistance shall be provided to each displaced low-moderate income household in accordance with the Urban Hennepin County CDBG Program Anti-displacement and Relocation Assistance Policy, pursuant to Section 104(d) of the Housing and Community Develop- ment Act of 1974, as amended. [ ] Property Management The standards described in 24 CFR Part 570.505 Subpart J shall apply to all real property which was acquired or improved in whole or in part using CDBG funds in excess of $25,000. These standards apply for a period of five (5) years after the termination of this agreement. [X] Low and Moderate Income Using the applicable Section 8 income limits established by HUD, it shall be demonstrated that a low- and moderate-income activity so indicated in 5. Benefit, above, meets one of the four criteria of 24 CFR Part 570.208, relating to: [ ] Area Benefit [X] Limited Clientele [ ] Housing • [ ] Job Creation or Retention [ ] Prevention or Elimination of Slums and Blight It shall be demonstrated that a slum and blight activity so indicated in 5. Benefit, above, meets one of the following criteria: [ ] Area Determination. The boundaries of the slum or blighted area must be defined and meet the requirements of 24 CFR-Part 570.208 (b)(1). [ J Spot Basis. The specific conditions of blight or physical decay not located in a slum or blighted area must be described. [ ] Urgent Community Need It shall be demonstrated that an urgent need activity, so indicated in 5. Benefit. above, is designed to alleviate a recent (within 18 months) condition which poses a serious and immediate threat to the health or welfare of the community. [ ] Other Requirements 0 CITY OF RICHFIELD, MINNESOTA Council Letter No. 226 Agenda October 9, 1989 • • 0 Issue Statement: Payment to the League of Minnesota Cities Insurance Trust Administrator in excess of $5,000. Background: The City purchases general liability insurance from the League of Minnesota Cities Insurance Trust with GAB Business Services as Administrator. The City's insurance policy has a $50,000 deductible for liability claims. In 1986, the City significantly reduced its premium by having a large deductible. The premium savings and additional monies have been used to create a Self- Insurance Fund to cover payments made which are under the deductible as claims arise. On June 2, 1988, a single motorcycle accident occurred at the intersection of First Avenue and 68th Street. The passenger, Todd Pullium, died as a result of personal injury sustained during the course of the accident. The estate filed a suit claiming the City caused the accident to occur by failing to post a sign warning that First Avenue ended in a T intersection. The City's insurance carrier and legal representation settled the claim in the amount of $1,000. The settlement was based on a purely economic basis. The cost to defend and adjudicate the claim would have been more costly than the nominal settlement. In addition to the settlement cost, the City incurred $5,546 in defense costs. Since the settlement and defense costs fall within our deductible limit, the City is directly responsible for this payment. Recommended Motion: Approve the payment to GAB Business Services in the amount of $6,546.00 Basis of Recommendation: 1. The City's insurance policy provides that the Insurance carrier shall, at its discretion, investigate, settle, or defend any claim or suit against the City. The insurance carrier and its attorneys have settled this claim. 2. Funding is provided for defense or payment of claims costing less than the $50,000 deductible. Alternative Recommendation: None. Discussion/Decision Mode: This item is on the October 9, 1989 regular City Council meeting consent calendar. ully submitted, Resp 7? I Jame . Prosser City nager RECEIVED SEP 2 61989 ?"2.,8 0 DYER A CENTURY OF SERVICE it 7 - Z ?- g? INSURED: C(ty of Rf 40eld CLAIMANT: Vdd PaWOM GAB FILE NO.: 5652,7- (i?QZ DATE OF CLAIM: 6- 2,- WE HAVE CONCLUDED THE SETTLEMENT OF THE ABOVE CLAIM(S) WHICH OCCURRED TO rjOdd Pat (AA PLEASE BE ADVISED THAT THE CONTRACT THAT YOU HAVE WITH THE LEAGUE OF MINNESOTA CITIES TRUST DOES HAVE A DEDUCTIBLE ON THE INVOLVED CLAIM(S). • PLEASE ISSUE A DRAFT FOR $ ? 7 60 6 PAYABLE TO GAB BUSINESS SERVICES.INC. AND FORWARD IT TO OUR OFFICE. SHOULD YOU HAVE ANY QUESTIONS. PLEASE CONTACT OUR OFFICE. SINCERELY. A W ?ooa 0 ADJUSTER GAB Business Services Inc 9531 West 78th Street Suite 220 Eden Prairie, Minnesota 55344 Telephone 612-942-9818 Branch Office d?f? o Ravel ???f ?'Nc(? ?R?? caPi ?S AT Ty (1 006 ( 00 ?r 516, 60 ??1 U CITY OF RICHFIELD, MINNESOTA • Council Letter No. 225 Agenda October 9, 1989 Issue Statement: Adoption of a resolution to increase residential refuse hauler license fees and authorization for the Mayor and City Manager to enter into contracts with residential waste/recyclables collectors. Background: Hennepin County reimburses cities for up to 80% of recycling expenses. Richfield has chosen to participate in the recycling grants program as long as Hennepin County continues to subsidize municipal programs and as long as Richfield residents are paying into the county recycling fund. Given our current program and corresponding high participation rates, Richfield will qualify for 80% reimbursement. Contracts with service providers are necessary in order to receive Hennepin County funding. As indicated during the April Study Session and May Public Hearing, the City will enter into contracts with the residential waste haulers to partially reimburse them for recycling expenses. The proposed contract would reimburse haulers $1.85 per household per month (HH/M) and the term of the proposed contract would be July 1 through • December 31, 1989. The $1.85 HH/M amount falls mid-range among rates paid by other Hennepin County municipalities. Without reimbursement by the City, these costs would be passed directly to residents and Richfield would not be able to take full advantage of the County's recycling grant program. Haulers are aware that in order for them to receive the $1.85 HH/M, they must contribute the portion for which the City will not be reimbursed. On the basis of each household per month, this amounts to: 370 covers City's portion of collection costs + 100 (for one year) covers City's portion of container costs 470 HH/M TOTAL These fees would be in addition to the "per truck" license fee charges currently in place and would be accounted for separately. The 470 HH/M will be retroactive to July 1, 1989. We will try to work out an arrangement whereby payments would be due approximately the same time as reimbursement payments would be made to haulers. Periodically, license fees will need to be adjusted due to changes in Hennepin County funding. Recommended Motion: Adopt the attached resolution increasing residential haulers license fees by 470 per household per month and authorize the Mayor and City Manager to enter into contracts with residential waste haulers. 0 Basis of Recommendation: • County recycling monies can only be distributed to haulers through the cities. Hennepin County requires cities to have contracts with recyclables collectors in order to receive reimbursement for collection expenses. Without a reimbursement to haulers, Richfield residents would pay more for trash collection service and the City would not be taking full advantage of the County's grant program. Alternative Recommendation: 1. Council could choose not to increase license fees and have the City incur that portion of recycling expenses not reimbursed by Hennepin County; however, the City has no identified funding source at this time. 2. Council could choose not to increase license fees and not to participate in the County's recycling grant program; however residents would continue to pay into the County's recycling fund and receive no benefits in return. Discussion/Decision Mode: Adoption of the resolution is recommended at this time so that tonnage documentation as well as invoices can be compiled and processed in a timely manner. • JDP/sdr Respectf ly submitted, James Prosser City M nagger 0 RESOLUTION NO. RESOLUTION INCREASING LICENSE FEES FOR RESIDENTIAL WASTE HAULERS WHEREAS, Richfield will participate in Hennepin County's recycling grants program as long as the County continues to subsidize these programs and as long as Richfield residents must pay into the recycling fund; and WHEREAS, Hennepin County reimburses cities for up to 80% of recycling expenses, the majority of recycling costs being collection service; and WHEREAS, in order for the City to receive grant money to reimburse recyclables collectors, it must incur that portion of expenses not reimbursed by Hennepin County; and WHEREAS, the City will pass these costs to recyclables collectors through an increase in license fees. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Richfield as follows: 1. That retroactive to July 1, 1989, license fees for residential waste haulers be increased by 47(? per household per month. 2. That the funds generated by the license fee increase be used solely to cover the City's share of recycling expenses. 3. That any change in County funding policy will affect the City's reimbursement amount thereby requiring a review of the license fee. PASSED by the City Council of the City of Richfield this 9th day of October, 1989. Steven J. Quam Mayor ATTEST: Thomas P. Ferber City Clerk ?--1 L_J