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2024-06-18 City Council Work Session PacketCITY OF MENDOTA HEIGHTS CITY COUNCIL WORK SESSION AGENDA June 18, 2024 at 5:00 PM Mendota Heights City Hall, 1101 Victoria Curve, Mendota Heights 1.Call to Order 2.Discussion a. I-35E Vegetation Removal b. Dodd Road Trail - Wesley Lane to Marie Avenue c. Short Term Rental Ordinance 3.Adjourn Alternative formats or auxiliary aids are available to individuals with disabilities upon request. Please contact City Hall at 651-452-1850 or cityhall@mendotaheightsmn.gov 2.a City Council Work Session Memo DATE: June 18, 2024 Mayor, City Council and City AdministratorTO: FROM: Ryan Ruzek, Public Works Director ACTION REQUEST: Staff is seeking direction from Council on next steps regarding the recent clearing of vegetation from MnDOT along the I-35E corridor. BACKGROUND: MnDOT maintenance recently mowed down most of the vegetation along the I-35E corridor. Residents reached out to the city regarding this vegetation removal and staff requested an official response letter from MnDOT. The majority of resident complaints are from the Eagle Ridge Drive neighborhood extending along the ramp from southbound I-35E to westbound Highway 62. This area has previously been identified as having excessive highway noise and is eligible for the MnDOT noise barrier program although a local 10 percent match is required. The attached letter highlights the noise barrier program as well as the Community Roadside Landscape Partnership. The landscape work may provide speedier relief to the residents and would not prevent the city from also pursuing a noise wall. A noise wall could potentially require upwards of $500,000 for the local match. The landscaping program will also have unbudgeted costs for the city as MnDOT would not allow this to be a volunteer planting event due to safety along this tight corridor. MnDOT may also not allow the desired vegetation to be installed but the city could at least see what type of planting plan MnDOT would allow. ATTACHMENTS: 1. MnDOT Letter SUBJECT:I-35E Vegetation Removal Page 1 Page 2 Page 3 Page 4 2.b DATE: June 18, 2024 TO: Mayor, City Council and City Administrator FROM: Ryan Ruzek, Public Works Director Lucas Ritchie, Asssitant City Engineer ACTION REQUEST: Staff is seeking direction from Council on pursuing a trail gap connection along the east side of Dodd Road between Wesley Lane and Marie Avenue. BACKGROUND: Previous Mendota Heights City Councils have reviewed the trail gap connection along Dodd Road between Wesley Lane and Mager Court in 2018 and 2019, at which time construction of the trail was determined not desirable due to concerns raised by residents and logistical challenges with easement acquisition. Trail plans were procured at this time from Wesley Lane to Marie Avenue and would still be applicable at which time the trail segment is deemed desirable. Staff will present a revised trail gap connection along Dodd Road extending further north to Marie Avenue from Wesley Lane. Advancements in infrastructure planning, as well as opportunities for external funding, suggest that the conditions may now be more favorable for the trail's construction. FISCAL AND RESOURCE IMPACT: Staff is estimating a total project cost of approximately $600,000 for this trail gap. The added costs are mainly due to a narrowing of the existing Dodd Road corridor and installation of storm sewer. ATTACHMENTS: 1.Engineers Estimate 2.Parcel Sketches and Preliminary Plans City Council Work Session Memo SUBJECT:Dodd Road Trail - Wesley Lane to Marie Avenue Page 5 Page 6 1 2 3 17047 165,400.00$ 200 970.26$ 0 -$ 4 17633 165,400.00$ 0 -$ 0 -$ 5 60100 270,500.00$ 1419 3,193.34$ 1292 5,815.07$ Language pertaining to lot variance at time of subdivision requirement 6 420282 156,600.00$ 403 75.08$ 0 -$ 7 26398 119,000.00$ 1709 3,852.02$ 447 2,015.04$ 8 58267 144,300.00$ 1377 1,705.09$ 1037 2,568.16$ 9 TOTAL 5108 9,795.79$ 2776 10,398.28$ Agrent Fee Description Unit Cost Units Total Cost Temporary Easement Only Parcels 4,000.00$ 2 8,000.00$ Permanent Easement Parcels 5,400.00$ 3 16,200.00$ Appraisal and Review Services 3,372.84$ 5 16,864.22$ 41,064.22$ EASEMENT COSTS*61,258.29$ * Includes temporary and permanent easements as well as ROW agent fees CONTINGENCY (10%)6,125.83$ Subtotal 67,384.11$ Construction Cost *473,000.00$ * Includes 10% Contingency Indirect Costs **57,000.00$ ** Includes 12% legal, engineering, administration, and finance. Subtotal 530,000.00$ Funding Source Total Project Cost 597,384.11$ Municipal State Aid (MSA) Street Funds 597,384.11$ Dodd Road Trail (Wesley Lane to Marie Avenue) Cost Estimate and Funding ESTIMATED CONSTRUCTION COST ESTIMATED EASEMENT ACQUISITION COST Parcel #Property SF Property Land Value Temporary Easement (SF) Temporary Easement Cost Permanent Easement (SF) Permanent Easement Cost Notes ESTIMATED RIGHT OF WAY AGENT FEES TOTAL No Easements Required Trail Previously Constructed Trail Previously Constructed Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 2.c DATE: June 18, 2024 TO: Mayor, City Council and City Administrator FROM: Sarah Madden, Community Development Manager SUBJECT: Short Term Rental Ordinance ACTION REQUEST: Staff will provide an overview of the revised Short Term Rental Ordinance. The City Council is asked to discuss the draft ordinance and provide comments. BACKGROUND: The City Council met at their May 21 Work Session to discuss the first draft of the Short Term Rental Ordinance. The City Council provided comments to staff to incorporate changes to the draft including: •Remove reference to the word "transient" when defining short term rental guests •Include a reference to the Building Code provisions when defining the standards forqualifications as a bedroom •Remove the 5-night minimum stay requirement and replace with a restriction of no rentalreservations more than 7 days per month (year-round) •Remove underage children from being exempt in occupancy calculations •Continue to limit the occupancy maximums to two persons per bedroom, but add in a maximum number of 5 bedrooms •Increase the minimum age of a rental occupant/guest to 25 Staff has also clarified the initial inspection language in the Enforcement section of the proposed ordinance. The draft Short-Term Rental Ordinance is included as an attachment to this report. The City Council is asked to review the draft ordinance and provide any additional comments. If the City Council is satisfied with the ordinance as presented, the next steps would be to schedule this Ordinance on a City Council meeting agenda for final adoption. City Staff will create a page on the City's website to City Council Work Session Memo Page 23 post the proposed Short Term Rental Ordinance and gather any written public comment. Following adoption of the ordinance, the web page will include information for short term rental operators, residents, and interested parties about the ordinance standards and application process. ATTACHMENTS: 1.Rental Housing 5A 2nd Draft Page 24 SECTION: 3-5A-1: Purpose And Scope 3-5A-2: Definitions 3-5A-3: General Licensing Provisions 3-5A-4: Conditions Of License 3-5A-5: Enforcement 3-5A-6: Exemptions 3-5A-1: PURPOSE AND SCOPE: It is the purpose of this chapter to assure that short-term rental of dwelling units in the City's R-1 one-family residential zoning district is conducted, operated, and maintained so as not to become a nuisance to the surrounding neighborhood or an influence that fosters blight and deterioration or creates a disincentive to reinvest in the community. The City recognizes that short-term rentals provide an opportunity for residents to use their property to generate supplemental income; and, when properly managed, short- term rentals have a minimal impact on surrounding properties. When not properly managed, short-term rentals have the capacity to generate noise, traffic, and trash beyond what is typically present in a residential neighborhood creating a nuisance. These issues can be especially acute when the owner of the property does not reside in the home. In order to promote the health, safety, general welfare, aesthetics, and image of the community, the City facilitates and regulates the use of residential properties for short-term rentals by requiring the licensure of short-term rentals. 3-5A-2: DEFINITIONS: For the purpose of this chapter, the following terms shall be defined as set forth below: BEDROOM: A habitable room within a single-family dwelling which is used, or intended to be used, primarily for the purpose of sleeping, but shall not include any kitchen or dining room. The room shall have a method of egress in addition to the primary entry door to the room in accordance with the Minnesota Residential Code. DWELLING: A building or one or more portions thereof occupied or intended to be occupied for residential purposes; but not including rooms in motels, hotels, nursing homes, boarding houses, tents and recreational vehicles, or attached multiple- family dwellings. DWELLING UNIT: A residential accommodation located within a dwelling that includes permanently installed cooking, sleeping, and sanitation facilities, designed or intended for use as living quarters for a single family. Dwelling units subject to this chapter are defined as being detached dwelling units in the R-1 one-family zoning district. OCCUPANT: A person who lives or sleeps in a dwelling unit. OWNER: Any person, operator, firm or corporation having a legal or equitable interest who is the recorded or unrecorded owner, or otherwise has control, of the dwelling unit. Page 25 PRIMARY RESIDENCE: A dwelling unit where the property owner: lives in the property for more than six months a year; is a resident of the state of Minnesota and fiels state income taxes in Minnesota; qualifies for Homestead tax classification as defined by MN Statutes 273.124 and as determined by the Dakota County Assessor; and uses the property address for their driver’s license, voting registration, and federal and state tax returns. RENT: To permit occupancy of a dwelling unit by a person other than the legal owner thereof, pursuant to a written or unwritten agreement, whether or not a fee is required by the agreement. SHORT TERM HOME RENTAL: The furnishing for consideration of lodging to tourist or transient guests in a dwelling or dwelling unit, where the renting or letting for occupancy is for a temporary period of time that is thirty (30) consecutive calendar days or less. SHORT TERM RENTAL GUEST: any person who, at their own expense or at the expense of another, exercises occupancy or possession, or is entitled to occupancy or possession, by reason of any rental agreement, concession, permit, right of access, option to purchase, license, time-sharing arrangement, or any other type of agreement for a period of thirty (30) consecutive calendar days or less. 3-5A-3: GENERAL LICENSING PROVISIONS: A. License Required: 1. No property shall be used as a short-term rental without a license issued by the City. The license once issued shall be valid for a period of one year from the date of issuance and must be renewed annually. This requirement applies to short term home rentals unless exempted pursuant to Section 3-5A-6. B. License Application: 1. Application for a license shall be made to the City upon a form furnished by the City. A person who has been issued a rental license shall give notice, in writing, to the city administrator, within five (5) business days of any change in the information contained on the license application. C. License Fees: 1. Licensing fees shall be prescribed as set forth in the City’s fee schedule, and maintained on file in the office of the city administrator. The required fees shall be submitted along with the application for a new or renewal license. Applications for a renewal license submitted after the license term expiration are subject to a penalty fee. D. License Terms: 1. All short term rental licenses shall be valid for a period of one calendar year, except as otherwise provided herein or in cases of suspension or revocation. 2. In order to be issued a license the applicant must submit the following application materials: i. Name and address of the short term rental property and the property owner. ii. Name, address, and phone number of a local agent authorized to be the emergency contact for the property and accessible at all times, and Page 26 to make or order repairs or services for the property if in violation of City or State Codes, if the person is different than the owner. iii. Number of bedrooms. iv. Maximum number of occupants. v. Signed agreement that the City has permission to access exterior areas of the property when responding to a reported violation of the standards in this section in order to ascertain if a violation has occurred. vi. Verification that there are not any unresolved Code Enforcement or Property Maintenance cases. vii. Affidavit of Residency to verify primary residence: Applicants for short term rental licenses are required to sign an affidavit of residency attesting that the home is their primary residence and acknowledging that subsequent discovery of non-residency shall be ground for revocation of the license. viii. Listing services where the short term rental is advertised. ix. Such other and further information as the City Council may require if applicable. E. License Issuance: 1. The City shall issue a short term rental license if real estate taxes and municipal utility bills for the dwelling unit have been paid, and the City has no record of unresolved complaints regarding the property subject to the rental license. The short term rental license must be in compliance with all standards of this Chapter. F. Renewal Of License: 1. A licensee may continue to rent a dwelling unit after the expiration date of the rental license provided that the owner has filed with the city administrator, on or before the expiration date, the appropriate renewal license application and license fee, and provided that the City has no record of unresolved complaints regarding the property subject to the rental license. G. Transfer Of License: 1. A short term rental license shall not be transferable to another person or to another dwelling unit. Each license shall automatically terminate upon the sale or other conveyance of the property to an unlicensed person or entity. 3-5A-4: CONDITIONS OF LICENSE: All short-term rental unit owners and operators must comply with the following: A. Performance Standards: 1. The maximum occupancy within the short term rental dwelling unit shall be two persons per bedroom 2. The short term rental dwelling unit shall have a maximum of five bedrooms. 3. Short term rental reservations may not be made more often than seven days per month. 4. The maximum number of vehicles that may be parked overnight on the property shall be consistent with the Property Maintenance Code. Vehicles in garages shall not be counted towards total number of vehicles. Page 27 5. The owner of a short-term rental dwelling unit must provide sufficient waste collection containers and service for the short term rental dwelling unit in order to meet the demand of the unit’s occupants. The owner shall be solely responsible for ensuring that waste is properly collected, stored, and made available for regular collection. Waste may not be stored outside of approved containers. All waste containers must be stored, screened, and collected in accordance with Section 12-5-8 of this Code. 6. Listings advertising the property’s availability for rent must state the license number, maximum occupancy permitted by the license, and the maximum number of vehicles that may be parked overnight on the property. 7. Ensure that all short-term rental dwelling units have working smoke detectors and carbon monoxide alarm(s) in every bedroom and on all habitable floors. Additionally, each unit shall have at least one properly maintained and charged fire extinguisher located in an easily-accessible location which is clearly marked and which is made known to the temporary occupants. 8. Provide and post the following information in a conspicuous place within each short-term rental dwelling unit: i. Emergency contact information for the short term rental dwelling unit owner; ii. Emergency contact information for the short term rental dwelling operator, of applicable; iii. The street address of the short term rental dwelling unit; iv. A Floor Plan of the short term rental dwelling unit indicating exits, escape routes, and the location of all fire extinguishers; v. The maximum occupancy limits of the short term rental dwelling unit; and vi. A parking map showing all allowable parking locations serving the property 9. A guest registry of the short term rental dwelling unit must be kept by the owner that includes the following information: a record of the dates the unit was rented, the number of guests during the rental periods, and the amount of rent paid by the guests in connection with the rental of the short term rental dwelling unit. This record shall be kept by the owner for at a minimum of five years. 10.No short term rental dwelling unit may be rented to any person who is under the age of 25. The person who rents the unit must provide a telephone number to the owner or operator and must be accessible to the owner or operator by telephone during the short term rental period. 11.If the short term rental dwelling unit includes a swimming pool, spa, or hot tub, the owner or operator must post a sign near the pool, spa, or hot tub indicating that it is not licensed or inspected by the State or the county. 12.The short term rental dwelling unit must have a visible house number that can be easily seen from a public street during the day and at night. 13.Comply with all applicable city, state, and federal laws, ordinances, and regulations. Page 28 14.Remit all applicable local, state, and federal taxes, including, but not limited to applicable lodging tax. 15.The city must be provided with accurate and up to date information regarding the name and contact information for the short term rental dwelling unit owner and operator, if applicable. If the owner or operator’s contact information changes, updates must be filed with the city within 30 days of the date of the change. B. Conduct On Licensed Premises: 1. Disorderly Conduct: It is the responsibility of the owner to ensure that persons occupying the licensed premises conduct themselves in such a manner so as not to cause the premises to be disorderly or constitute a nuisance. The owner or operator of the short-term rental dwelling unit is responsible to ensure that the property remains in compliance with the City’s nuisance regulations. 3-5A-5: ENFORCEMENT: The application for a short term rental license will be reviewed by the City Administrator or their designee.. A. Inspections: 1. The City Administrator or their designee shall conduct inspections of the short term rental dwelling unit to determine the compliance with the applicable provisions of this code. An inspection is required prior to the initial issuance of the license. The City may conduct inspections of the short term rental dwelling unit upon submittal of a license renewal application. The code official or designated representative may enter, examine, and survey at all reasonable times all short term rentals and premises after obtaining consent from an owner or occupant of the premises. B. Violations: 1. It shall be unlawful for a person, firm or corporation to be in conflict with or in violation of any of the provisions of this Section or other provisions of this Code. 2. The code official shall serve a notice of violation on the licensee. If the notice of violation is not complied with, the code official shall institute the appropriate proceeding at law or in equality to restrain, correct or abate such violation, or to require the termination of the unlawful occupancy of the structure in violation of the provisions of this chapter or of the order or direction made pursuant thereto. 3. A short term rental license may be revoked or suspended for violations of this section. 4. The imposition of the penalties herein prescribed shall not preclude the city attorney from instituting appropriate action to restrain, correct or abate a violation, or to prevent illegal occupancy of a building in violation of this section, structure or premises, or to stop an illegal act, conduct, business or utilization of the building, structure or premises. 5. The property owner of record shall be responsible for any city costs in enforcing the provisions of this chapter including inspection fees, or other Page 29 fees, charges or penalties that are imposed as permitted by law. C. License Suspension Or Revocation, Or Refusal To Renew: 1. In the event of any potential health or safety violations, the code official may suspend the license until the violation is corrected. 2. If a property with a short term rental receives three notices of violation within a 365-day period, its short term rental license shall be revoked. The license may be revoked after a single violation if the violation is not immediately corrected pursuant to a notice of violation. 3. No person who has had a permit revoked under this Section shall be issued a short term rental license for one year from the date of revocation. D. Appeal: The licensee may appeal the occupancy limit, parking limit, denial, suspension, or revocation to the City Council. The licensee must file with the city clerk a notice of appeal within ten days of an issuance, denial, suspension, or revocation. The Council shall consider the appeal at a regularly scheduled council meeting on or after 15 days from service of the notice of appeal upon the City Clerk by the licensee. Hearing on the appeal shall be open to the public and the licensee shall have the right to appear and be represented by legal counsel and to offer evidence in behalf of licensure. At the conclusion of the hearing, or as soon thereafter as practicable, the Council may order: 1. The denial, suspension, or revocation of the license. 2. The denial, suspension, or revocation by the code official be lifted and the license be returned to the licensee. 3. Additional terms, conditions and stipulations to be imposed on the licensee to mitigate problems. 3-5A-6: EXEMPTIONS: A. This Chapter does not apply to: 1. Hotels, motels, bed and breakfasts, nursing homes, or state licensed residential care facilities. 2. Individual sleeping rooms within an otherwise owner-occupied residence, or rentals where the owner is present for the duration of the rental. Page 30