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2020-01-02 Council Work Session PacketCITY OF MENDOTA HEIGHTS CITY COUNCIL WORK SESSION AGENDA January 2, 2020 4:00 pm Mendota Heights City Hall 1) Call to Order 2) Discussion Items a) Building Contractors b) Rental Housing c) Boards and Commissions Appointments d) Goals of the Council for 2020 3) Adjourn City Council Workshop - Memo DATE: January 2, 2020 TO: Mayor, City Council, and City Administrator FROM: Tim Benetti, Community Development Director SUBJECT: Discussion regarding City Licensing of Contractors (ref. Draft Ordinance No. 550) Introduction At its January 2nd workshop, the City Council will be asked to discuss a proposal to cease the City licensing of building contractors. Background At the December 3rd regular meeting, the City Council was asked to consider adopting Ordinance No. 550, which would amend City Code Title 3, Chapter 4 concerning Building Contractors and their licensing approval by the city. After brief discussion, the Council elected to table this ordinance to a future workshop meeting to discuss the proposed ordinance amendment. Note that the issuance of local contractor licenses for 2020 has been put on hold until the City Council makes a decision on this issue. The current City Code Section 3-4 (attached) provides for the licensing of building contractors who desire to work in the city. Currently, staff verifies all required documentation, which includes a general contractor licensing application and proof-of-liability insurance. Staff typically issues the license at the front service-counter without Council approval. Staff does not provide or perform a background check or verification on the contractors who seek a city license to work in the community. The State of Minnesota requires that residential builders, remodelers and roofers be licensed through the Department of Labor and Industry (DLI). The state has adopted contractor licensing requirements administered by the DLI to ensure that buildings are safe and healthy for those who occupy them, and that workers who construct them are qualified to perform said work. Additionally, electrical and plumbing work must be performed by state licensed contractors. According to the City’s building official Mike Andrejka, the DLI provides the background check of building contractors, and issues licenses to only those qualified or skilled to perform such work. The state issues licenses to qualified “building contractors” or “home remodelers” who contract directly with a homeowner to provide building construction services in more than one skill area (i.e. concrete, framing, dry-wall; finish carpentry, roofing, insulation, mechanicals, etc.). Any contractor who provides services in more than one special skill area must be licensed. Specialty contractors who page 2 provide only one "special skill" are not required to have a state license, except residential roofers. Commercial contractors are not required to be licensed by the state; but must be registered with the DLI. (please refer to the attached “What is residential building contractor [RBC] licensing?” handout). The DLI also provides training, classes and seminars for licensed contractors, especially when building codes are periodically revised and updated due to new standards, technologies or techniques of the building trades. Due to the current licensing and oversight already performed by the State of Minnesota, staff proposes the city not license building contractors beginning in 2020. The contactors license fee is $50.00/year, and is charged with every new city license application. Staff is recommending this fee be removed from the fee schedule. (Note: the anticipated revenues generated from contractor license fees was not included in the proposed budget for 2020). Staff feels that the State’s DLI is better qualified, staffed and experienced than is the City in registering and licensing contractors that work throughout the metro area and state. We do not feel that the City’s licensing of contractors improves safety, or provides any added measure of assurance to local residents regarding workmanship or quality issues. To have the City issue licenses with any expectation of those assurances is doing a disfavor to people who might hire those contractors. Recommendation The Council should discuss, and give direction as to whether the City should continue to license contractors for residential construction. City Building Official Mike Andrejka will be in attendance at this January 2nd Workshop to answer questions or address any other concerns the council may have regarding contractor licensing. page 3 page 4 page 5 page 6 page 7 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY, MINNESOTA ORDINANCE NO. 550 AMENDING MENDOTA HEIGHTS CITY CODE TITLE 3, CHAPTER 4 CONCERNING BUILDING CONTRACTORS The City Council of the City of Mendota Heights, Minnesota, desires to not require building contractors to be licensed beginning in the year 2020. The City Council of the City of Mendota Heights hereby ordains: The City of Mendota Heights Code of Ordinances, Title 3, Chapter 4, relating to the Building Contractors is hereby deleted in its entirety. This Ordinance shall be in effect from and after the date of its passage and publication. Adopted and ordained into an Ordinance this third day of December, 2019. CITY COUNCIL CITY OF MENDOTA HEIGHTS Neil Garlock, Mayor ATTEST ________________________________ Lorri Smith, City Clerk page 8 What is residential building contractor (RBC) licensing? A building contractor or remodeler license is required for anyone who contracts directly with a homeowner to provide building construction services in more than one skill area. The goal of licensing is to ensure a higher level of professionalism and consumer protection. Homeowners who do not hire a licensed contractor have no protections. State licensing of residential building contractors began in 1992. Who needs an RBC license? Any individual or company that contracts directly with an owner of "residential real estate" to provide work in more than one special skill. An owner of residential real estate who builds or improves homes for resale or speculation. "Residential real estate" means a new or existing building constructed for habitation by one to four families and includes detached garages. What’s the difference between a residential building contractor license and a residential remodeler license? A residential remodeler can only perform work on existing structures -- they cannot build new homes or detached garages. A residential building contractor can perform all of the work that a residential remodeler can plus they can build new structures. Who does not need an RBC license? Subcontractors who do not contract with the homeowner, yet they must register with DLI through the Contractor Registration Program; Commercial contractors, yet they must register with DLI through the Contractor Registration Program; Employees of a licensed contractor; Contractors who work on residential buildings with more than four units; Material suppliers who do not install or attach the items they sell; Owners doing work on their own property (unless they are building or improving properties they own for purposes of resale or speculation); Architects or engineers doing work within the scope of their practice; Residential building contractors whose gross annual receipts* from their residential activities are less than $15,000 and have a Certificate of Exemption. "Gross annual receipts" are defined as the total amount derived from residential contracting or remodeling activities, regardless of where the activities are performed, and must not be reduced by cost of goods sold, expenses, losses or any other amount. page 9 What is a "special skill" area? A contractor who provides services in more than one special skill area must be licensed. Specialty contractors who provide only one "special skill" are not required to have a state license (except residential roofers). See the chart below for details about special skill categories: "Special skill" means one of the following eight categories 1. Excavation excavation trenching grading site grading 2. Masonry/concrete drain systems poured walls slabs and poured-in-place footings masonry walls masonry fireplaces masonry veneer water resistance and waterproofing 3. Carpentry rough carpentry finish carpentry doors, windows and skylights porches and decks (excluding concrete footings) wood foundations drywall installation (excluding taping and finishing) 4. Interior finishing floor covering wood floors cabinet and countertop installation insulation and vapor barriers interior or exterior painting ceramic, marble and quarry tile wallpapering ornamental guardrail and installation of prefabricated stairs 5. Exterior finishing siding soffit, fascia and trim exterior plaster and stucco painting rain carrying systems, including gutters and down spouts 6. Drywall and plaster installation taping finishing interior plaster painting wallpapering 7. Roofing 8. General installation specialties page 10 roof coverings roof sheathing roof weatherproofing and insulation repair of roof support system, but not construction of new roof support system Roofers are required to obtain a license. Contact the Department of Labor and Industry for further information. garage doors and openers pools, spas and hot tubs fireplaces and wood stoves asphalt paving and seal coating exterior plaster and stucco ornamental guardrail and prefabricated stairs page 11 DATE: January 2, 2020 TO: Mayor & City Council FROM: Mark McNeill, City Administrator Tim Benetti, Community Development Director SUBJECT: Proposed Ordinance No. 548 - Amending City Code Section 3-5 Concerning Rental Housing Licensing Introduction At the workshop meeting of January 2nd, the City Council will be asked to discuss the City’s rental housing license requirement, contained in Ordinance 548. Background At the November 19, 2019 regular meeting, the City Council was asked to consider adopting proposed Ordinance No. 548, which would essentially delete in its entirety City Code Title 3, Chapter 5 Rental Housing. The deletion of this section would remove the licensing requirements of rental dwellings or housing in the city, and further would eliminate any annual licensing fees for such units. After brief discussion, the council elected to table this ordinance to a future workshop meeting to discuss the proposed ordinance amendment. During the council discussion at the Nov. 19th meeting, it was stated that this rental housing ordinance was brought forward due to some issues at a specific location a number of years ago. The City then revised the nuisance ordinance and also passed this rental housing ordinance. The intent of the ordinance was to provide regulations for the licensing of rental dwellings in the city, including registering rental homes; establishing conduct of tenants and nuisance issues; establishing criteria for the suspension and/or revocation of licenses; and allowing staff to inspect the rental dwelling. The current City Code, Section 3-5 (attached) provides for the licensing of rental housing units in the R-1 One-Family Residential districts in the city. The City has not registered rental housing units in the R-1 Zone since 2017. At that time, Mendota Heights had 32 dwellings registered as rental units. Those were issued to those property owners who applied for them; there was no systematic way of determining who would need to apply so that they could be contacted and advised to take action. It should be noted that the units were not being inspected by the City prior to the issuance of the licenses. As a result of this decision, the City also deleted the $75 annual licensing fee from the fee schedule. page 12 Number of Non-Homestead Properties--A check of Dakota County Assessor records indicates that of the 5234 properties in Mendota Heights, 4157 are registered as “Homestead” (owner-occupied) in the city, but an additional 1,077 properties are Non-Homestead. Acknowledging that most of the non-homesteaded properties are because the owner has their primary residency in other states for tax purposes, non-homestead dwellings can also be a group home, or a rental (income) home. AirBnBs--Since 2017, city staff has received a small number of calls from residents complaining of neighbors renting out personal homes as an Airbnb or similar short term rentals. Since the city stopped licensing (or inspecting) rental dwellings in 2018, the city usually does not follow-up on these complaints, but has referred the complainants to the police department on any issues related to vehicle parking or late-night noise/disturbing the peace violations. A check of Airbnb’s official website appears to show four (4) homes registered or offered for short-term rental/leasing in the city. Some neighboring and metro cities have separate rental housing and inspection programs and ordinances, such as South St. Paul, Northfield, Burnsville, Brooklyn Center, Brooklyn Park, Coon Rapids, Prior Lake, Eden Prairie and Roseville. Some of these cities have also enacted “short-term rental” regulations for Airbnb’s, VRBO’s and similar. In most cases, these cities that have rental programs or ordinance have a number of staff dedicated to the management and inspection of these rental units in their cities; the City of Mendota Heights does not have the staff to provide a large number of rental inspections. The City Attorney also made staff aware of a rental licensing program that has recently been enacted (December, 2019) by the City of Bayport. While a reading of its ordinance does raise some questions as to implementation, that ordinance is being included in the packet so that the Council can see what at least that other community has done. Action Required The City Council should discuss and share any concerns or issues that it has should the City decide to move forward in deleting City Code Sec. 3-5 regarding Rental Housing, including the need to license said units in the city. page 13 page 14 page 15 page 16 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY, MINNESOTA ORDINANCE NO. 548 AMENDING MENDOTA HEIGHTS CITY CODE TITLE 3, CHAPTER 5 CONCERNING RENTAL HOUSING The City Council of the City of Mendota Heights, MN, desires to not require the licensing of rental housing units in the city’s R-1 one-family residential zoning district in our city. The City Council of the City of Mendota Heights hereby ordains: The City of Mendota Heights Code of Ordinances, Title 3, Chapter 5, relating to the Rental Housing is hereby deleted in its entirety. This Ordinance shall be in effect from and after the date of its passage and publication. Adopted and ordained into an Ordinance this nineteenth day of November, 2019. CITY COUNCIL CITY OF MENDOTA HEIGHTS Neil Garlock, Mayor ATTEST ___________________________ Lorri Smith, City Clerk page 17 page 18 page 19 page 20 page 21 page 22 page 23 page 24 page 25 page 26 page 27 page 28 page 29 page 30 page 31 page 32 page 33 DATE: January 2, 2020 TO: Mayor and City Council FROM: Mark McNeill, City Administrator SUBJECT: Boards and Commissions Appointments Comment: Introduction: At its workshop of January 2nd, the Council will be asked to confirm the selection process for the appointments of Boards and Commissioners, and also to consider the candidates for the newly approved Historic Pilot Knob Task Force. The Council should set a date for interviews of prospective candidates. Background: The following individuals have terms which are expiring as of January 31, 2020. Planning Commission Michael Noonan – has now completed three full consecutive terms John Mazzitello – reappointment Parks-Rec Commission David Miller – has now completed three full consecutive terms Bob Klepperich – reappointment ARC Jim Neuharth - reappointment Kevin Byrnes - reappointment Gina Norling – reappointment The past practice for Mendota Heights has been to reappoint individuals to the Planning Commission and the Parks and Recreation Commission, unless they have “termed out” by serving three consecutive full terms. The announcement of the availability of vacancies for these two boards have been posted on the City’s website, in social media, and in the electronic Friday News newsletter. The deadline for application is January 6th. page 34 There have been no limits on appointments to the Airport Relations Commission, nor on the Traffic Safety Committee. The TSC is not recognized in the Code, but has been providing the review of traffic safety-related issues since 2005. A list of all members of the various commissions, and their terms of appointment is attached. The Council should determine if it wants to make any changes in the appointment process for 2020. Recommendation: The Council is asked to discuss and give direction to staff as to whether it wants to see any changes as to the structure of the Boards and Commissions or their appointment processes, and also to set the date for interviews for candidates to be considered for appointment in 2020. Mark McNeill City Administrator page 35 PUBLIC INFORMATION CITY OF MENDOTA HEIGHTS 2020 COMMISSION APPOINTMENTS / TERMS OF EXPIRATION PLANNING COMMISSION ( 3 yr terms)(Code 2-1-2: Members limited to 3 consecutive Current Term Initial Name Expires App't Brian Petschel 1/31/2022 1/1/2016 Michael Toth 1/31/2022 8/15/2017 Andrew Katz 1/31/2022 2/5/2019 Michael Noonan 1/31/2020 2/1/2011 John Mazzitello 1/31/2020 7/18/2017 Mary Magnuson 1/31/2021 3/1/2011 Patrick Corbett 1/31/2021 1/16/2018 PARKS-RECREATION COMMISSION (3 yr terms)(Code 2-2-2: Members limited to 3 consecutive Current Term Initial Name Expires App't Patrick Cotter 1/31/2021 7/16/2019 Pat Hinderscheid (chair)1/31/2021 2/1/2012 David Miller 1/31/2020 2/1/2010 Bob Klepperich 1/31/2020 1/17/2017 Daniel Sherer 1/31/2022 2/1/2019 Stephanie Meyer 1/31/2022 2/1/2019 Steve Goldade 1/31/2022 1/17/2017 Student Rep AIRPORT RELATIONS COMMISSION (3 yr terms)(Code 2-4-2: No limit to # of terms)Current Term Initial Name Expires App't Sally Lorberbaum 1/31/2022 2/1/2007 Jim Neuharth 1/31/2020 2/1/2011 Kevin Byrnes 1/31/2020 2/1/2011 Gina Norling 1/31/2020 3/1/2011 David Sloan (Chair)1/31/2021 2/1/2006 Arvind Sharma 1/31/2021 2/3/2015 William Dunn 1/31/2021 2/1/2006 Current Initial Term App't NDC4 CABLE COMMISSION (2 yr terms)(Res 2016-103 No Term Limits) (need Res to a Expires Mickey Kieffer (Appt by Res 2017-10)1/31/2021 2/15/2005 Joel Paper (Appt by Res 2017-10)1/31/2021 2/1/2017 page 36 NOC REPRESENTATIVES (2 yr terms)(Res 2005-27 sets term limit to 5-two year terms) Jay Miller, Representative 6/25/2021 2/1/2017 Liz Petschel, 1st Alternate 6/25/2021 6/4/2019 David Sloan, 2nd Alternate 6/25/2021 3/15/2011 Cheryl Jacobson, 3rd Alternate 6/25/2021 6/4/2019 Dakota Communications Center (2 year terms) Ultan Duggan, Representative 12/31/2020 Liz Petschel, 1st Alternate 12/31/2020 2/1/2017 Lower Mississippi River Watershed (No fixed term per JPA, Sec 6, serves at pleasure of Council) Mary Jeanne Schneeman Citizen Rep 1/1/2009 Jill Smith Alternate 2/1/2012 Dakota County East West Transit Study Policy Maker Team No appointments at this time. Initial Traffic Safety Committee (formed in 2005)App't Liz Petschel Council Representative 2/16/2016 Kelly McCarthy Police Rep Ryan Ruzek Public Works Rep Dave Dreelan Fire Rep John Mazzitello Planning Commission Rep 1/2/2019 Jonathan Ehrlich Citizen Rep 6/20/2017 Initial Dakota County Sheriff's Citizen Advisory Board App't Liz Petschel Council Representative (Appointed by Sheriff)2/1/2017 Term Initial Dakota County Broadband Board (2 year terms)(Created Jan 2018)Expires App't Mayor Garlock Council Representative 1/31/2020 2/7/2018 Joel Paper Alternate Rep 1/31/2020 2/7/2018 Initial Beyond the Yellow Ribbon Comm (Formed June 18, 2019)App't (With WSP, Mendota, Lilydale) Mayor Garlock Council Representative 6/18/2019 page 37 page 38 page 39 DATE: January 2, 2020 TO: Mayor and City Council FROM: Mark McNeill, City Administrator SUBJECT: Goals for 2020 Comment: Introduction: The Council is asked to identify goals for the City to pursue in 2020. Background: In January, 2019, following the November elections, the City Council held a “retreat” in the City Council Chambers to set goals and objectives for the ensuing two years. That retreat was with the participation of staff. All total, there were identified some 46 separate tasks. However, after unsuccessful attempts at scheduling a follow-up meeting to discuss further, the prioritization and adoption of the goals upon which to focus the City’s efforts were never established. Further discussion was needed to decide which would be pursued, and in what priority. A summary of the 46 steps, and a progress report on some of those that have been pursued is attached. As it is unlikely that the January 2nd workshop meeting will provide sufficient time to address each of the 2019 tasks, I recommend that each of the Councilors bring 3 items—either new, or a continuation of 2019 tasks--which they would like to see the City address in 2020. The adopted 2020 budget should be kept in mind. The 15 tasks would be shared that the workshop; it is anticipated that results should be more manageable. The 2020 goals and priorities can be established from those. Action Required: Each Councilor should identify up to three items which should be addressed by the City in 2020. page 40 Preliminary 1/29/19 2019-2020 City of Mendota Heights GOALS AND OBJECTIVES ENHANCE GOVERNANCE City Council • Update and implement Council rules to improve meeting efficiency and effectiveness. • Increase civility at Planning and City Council Meetings Citizen Comment presentation reminder • Strengthen Youth Understanding of Government • Conduct a community wide survey Unscientific POLCO survey closed 12/15. Approximately 150 responses. Boards and Commissions • Update process for City Council interaction with Commissions Joint meeting held with Parks/Rec Commission 7/19 • Explore creation of an IT Commission Utilization of LOGIS meets IT needs • Explore creation of a Natural resources commission or committee. Steering Committee being formed to help Nat Res Plan update in 2020. Commission/Committee to follow? • Consider establishment a junior parks and recreation commission P/R Commission has discussed community engagement options. ENHANCE COMMUNITY ASSETS AND SERVICES Community and Economic Development • Consider implementation of a hotel lodging tax for business development Discussed with Chamber of Commerce for use in promoting local hotel/motels • Develop and agreed upon vision for key development/redevelopment areas Village Lots Tentative Purchase Agreement with Grand Real Estate Advisors Bourne site Unsolicited proposal received 12/19 • Conduct a business retention survey • Implement Comp Plan 2040 Update local zoning and subdivision ordinances. Comp Plan submitted to Met Council 12/19) page 41 • Prepare for 2020 Census, and findings. Internal Staff Issue • Address lack of cell coverage in Mendota Heights 5G Towers installed in 2019 along MH Road in Industrial area. Prelim plans for tower in Curly addn, but not currently active. Develop a Sense of Community • Develop new opportunities for residents to get together and congregate. a. Investigate an expansion of previous or existing events: Spring—Park Celebration In conjunction with Scott Patrick 5K Summer--Expand Nite to Unite to be a City-wide event Continuation of current event. Increased 2020 budget for Wed evening Mendakota Concert series Autumn—Halloween Bonfire OK to continue as long as site is available Winter—Holiday lighting events Tree by private party; Menorah Lighting in 2019 • Research city participation in and designation as a Yellow Ribbon city/program --Mayor Garlock completed 7/19 • Work with the newly formed Mendota Heights Foundation—Waiting for 501.c.3 designation • Plan regular communications with public and private partners • Seek additional partnerships with other jurisdictions ENHANCE INTERNAL CITY SERVICES Human Resources • Audit personnel files and establish file checklist and order for records requirements and access to information. Internal Staff Issue • Review and update personnel policies Internal Staff Issue Public Safety • Conduct emergency operation center drills –table top exercise Police conducted drill in 2019; second with County assistance in Q3 or Q4, 2020 • Conduct active shooter training with the Fire Station, PD and school. Police and School have completed; need to include Fire • Develop process for citizen input in the PD activities, initiatives and goals. Citizen Committee formed. Also use POLCO survey? Enhance Parks and Recreational Opportunities page 42 • Reimagine park space to maximize usage. Commission has discussed small changes at Valley Park courts and Friendly Hills rink • Improve offerings of adult summer activities in the summer time. Dependent on budget; Commission has discussed • Review annual maintenance and improvement package for Skate park 2020 Budget provided $10,000; top priority for Commission • Create additional athletic fields Adopted and modified Field Use Policy to improve efficiency • Explore establishment of a regional sporting venue—include green space City Facilities • Conduct a formalized space needs assessment for Police Department Budgeted FY 2020 • Conduct formalized space needs assessment for upstairs of City Hall—Budgeted FY 2020 • Develop a plan for renovation and updating of City Hall equipment and space. Follow- up from space needs assessment (above) • Explore changing business hours at City Hall. Completed—5/19 ENHANCE EXTERNAL CITY SERVICES Transportation • Plan and Implement Regional solutions for Dodd Road and Delaware Dependent on MNDOT and Dakota County • Examine Dodd, Wagon Wheel Trail and Pagel Intersection Discussed with Council submitting proposal for MNDOT funding; chose to wait until 2021 cycle, for 2022 Natural Resources and Environmental Sustainability • Update the Natural Resource Plan. Budgeted $75,000 for FY 2020 • Join Green Steps cities and consider first requirements to achieve status Research complete—ready for Council consideration • Protect Surface Water Quality Ongoing • Educate Residents About Airport Noise ARC Issue OTHER TASKS: • Improve Internal Technology Internal Staff and LOGIS Issue • Develop Fire Station Community room and City Hall meeting room reservation policy Internal Staff recommendation by July, 2020 • Implement Rec on the Go programming in partnership with the City of West St. Paul Successful start in 2019; looking to expand in 2020 • Provide quarterly reports from fire, police and public works on needs and concerns. page 43