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06/28/2004 - City Council Special~~_ ~ - ~~. ..5~ - ~ ~~ TO: FROM: DATE: SUBJECT: MEMO City of Eagan HONORABLE MAYOR AND CITY COUNCIL CITY ADMII~TISTRATOR HEDGES JUNE 25, 2004 SPECIAL CITY COUNCIL WORKSHOP /JUNE 28, 2004 A Special City Council Workshop is scheduled for Monday, June 28 at 5:30 p.m. in the Eagan Room of the Eagan Municipal Center. As the attached agenda indicates, the Council Workshop is scheduled from 5:30-7:00 p.m., following which Mayor Geagan has asked that the City Council meet in a retreat setting in the Municipal Center lunch room to catch up on goals, etc. In order to provide enough advanced notice to the Airport Relations Commission (ARC), please note that the ARC is scheduled to meet with the City Council at the July 13 Council Workshop. Upcoming workshop items for July and August include the Civic Arena budget, the City logo, a joint meeting with the Gun Club WMO and other advisory commissions, research/findings on the Flow Rider, land use issues associated with fireworks sales, City technology policies, sister city relationships, Cedar Grove Redevelopment updates, Dakota County Public Safety Radio System, and continued updates regarding the 2005 budget. If any member of the City Council has questions pertaining to the items scheduled for the June 28 Council workshop, please feel free to contact me. City Administrator Agenda Information Memo June 28, 2004 Eagan City Council Workshop III. MASSAGE THERAPIST LICENSING ACTION TO BE CONSIDERED: (1) To provide direction to staff confirming the existing regulation or to direct preparation of an ordinance amendment regarding the licensing of massage therapists and massage therapy establishments. (2) To provide direction to staff regarding the investigation and licensing fees for massage therapists and massage therapist establishments. FACTS: • At the February 17, 2004 City Council Listening Session after an appeazance by Dave and Margie Ragsdale, owners of Keep in Touch of Eagan, staff was directed to survey other cities and coordinate information regazding the licensing of massage therapists and massage therapy establishments. • The State Legislature gave some consideration to State wide licensing of certain massage therapy activities; consequently, the scheduling of this item was held pending State action. The Legislature adjourned without taking any action on this issue that staff is aware of. • There is a wide disparity in what other cities charge to investigate and license these activities, if they do so, for the purpose of providing regulation. • Eagan's fees appear to be reasonable based on the actual cost of providing these services and a reduction will likely result in a subsidy. • Staff is suggesting that it maybe appropriate to consider not licensing individual massage therapists but to continue licensing the establishments. • The Ragsdales will be contacted informing them that this item is on the agenda. ATTACHMENTS: • Enclosed on pages ~_ through ~_ is a copy of a memo from Director of Administrative Services VanOverbeke summarizing the research and staff discussion regazding this issue. FROM: Director of Administrative Services VanOverbeke DATE: May 25, 2004 SUBJECT: Massage Therapy Licenses Background Resulting from an appearance by Dave and Margie Ragsdale, owners of Keep in Touch of Eagan, at the February 17, 2004 City Council listening session, staff was directed to coordinate information and survey other cities regarding the licensing of massage therapists and massage therapy establishments. Eagan first began licensing both massage therapists and massage therapy establishments through the adoption of an ordinance amendment in 1989. In response to changing conditions, primarily the acceptance and widespread use of massage therapy, and requests from practitioners, the ordinance has been amended a number of times over the years. The annual license fees for massage therapists and massage therapy establishments as well as the investigation fees for each first time applicant have been set through the adoption of the City's annual fee schedule. I believe the City policy position has been that the licensing of the therapists and establishments met the appropriate standard of providing for the public health and welfare of the community. It has logically followed that, if a City license is to be issued, the issuance should be approved only after an appropriate investigation of the individuals and establishments requesting to be licensed. The dollar amount of the license and investigation fees has been based on the City's desire to collect fees that recover the City's costs while remaining somewhat consistent with fees in other communities as a benchmark. In Eagan these massage therapist and massage therapy establishment fees have not been arbitrarily set at levels to attempt to control or financially restrict access to the practice of massage therapy. Previously, at the request of the Ragsdales at the June 10, 2003 Special City Council Meeting, the therapist background investigation fee was reduced from $200 to $100 and the annual therapist license fee was reduced from $50 to $25. Also included in the motion was the action to not change the initial business license fee, the annual business license fee, the business background check fee, or the initial therapist license fee. Comparative Data The following table illustrates Eagan's current license and investigation fees for massage therapists and massage therapy establishments as compared to 13 other cities roughly comparable to Eagan in population. This is the same list of cities previously used for comparison in the review of liquor license fees. 3 Massa a Thera ist Massage Therapy Establishment Cit License Background Investi ation License Background Investi ation A le Valle - - - - Blaine - - - - Bloomin ton 22.75 - - - Brookl n Park - - - - Burnsville 100.00 100.00 - - Coon Ra ids 35.00 35.00 3,350.00 1,675.00 Eden Prairie - - - - Edina - - 250.00 1,500.00 Lakeville 25.00 100.00 - - Ma le Grove 75.00 75.00 75.00 - Minnetonka 50.00 - 300.00 300.00 PI mouth 25.00 50.00 6,600.00 500.00 St. Louis Park - - 125.00 - Ea an 25.00 100.00 300.00 300.00 Average Fee- Calculated Including Eagan 44.72 76.67 1,571.43 855.00 Conclusion Given the relatively small number of cities in this group that license massage therapists and massage therapy establishments along with the wide variation in fees, the survey information may not be as instructive as one would hope. Unfortunately, as we have already seen, it also allows the selective gathering of information from particular cities to demonstrate a particular point in reviewing both the "license° and "not license" question and the related fees. In reviewing the information in the table it seems that the Eagan fees have been set at reasonable levels in that they cover the City's costs, are not so high as to discourage entry into this business, and are comparable to other cities that have chosen to be involved in this particular regulatory process. have met and reviewed this information with Deputy City Clerk McGarvey and Police Chief Therkelsen and we have concluded that on the one extreme it would probably be more appropriate from the City's perspective to discontinue licensing thereby eliminating the license and investigation fees than to further lower the rates and subsidize the regulation through tax dollars or other revenues. However, as a middle ground position, the Police Department feels strongly that the City should continue to investigate and license the massage therapy establishments. That would continue requiring massage therapy to take place in those or specifically exempted locations (primarily medical facilities) and could continue to provide for temporary off-site permits for therapists employed by a licensed establishment. Not licensing the therapists and licensing the establishments in this manner would make the background, qualifications and related professional standards of the therapists the responsibility of the massage therapy establishments without City control or enforcement. Any potential illegal activities would be covered by other ordinances or by State laws. Please let me know, if there is anything else you would like in advance of this item being considered at the June 8, 2004 Special City Council Meeting or if you would like to discus this matter. Director Administrative Services VanOverbeke cc: Police Chief Therkelsen Deputy Clerk McGanrey s Agenda Information Memo June 28, 2004 Eagan City Council Workshop Meeting IV. SHORT TERM RENTAL PROPERTY IN RESIDENTIAL NEIGHBORHOODS ACTION TO BE CONSIDERED: To provide staff direction regarding potential modifications of the City Code as they may pertain to short term rental facilities in residential neighborhoods, the definition of "family" as applied to the occupants of housing units and/or on-street parking regulations. FACTS: • On March 24, 2004, the City received a letter from a resident of Widgeon Way South, outlining a series of concerns regarding certain single family homes in his neighborhood being occupied by persons other than their owners. While the resident acknowledged that properly licensed group homes and rental properties generally are permitted within single family neighborhoods, he identified a series of specific issues he believes to be consequences of the non-owner occupancy of the properties and he asked that his concerns be addressed and forwarded to the City Council. These concerns included traffic, speeding, late night activity, on- streetparking, frequent turnover of residents of one or more properties, more than five unrelated people sharing a home and property maintenance issues. ~ Council members received the item in an informative memo and requested that it be place on a workshop agenda for discussion. • In the meantime, the City's Zoning Enforcement staff and Police Department investigated and responded to the specific issues that constituted violations of existing ordinances. In particular, an officer approached the manager of the group home about the traffic issues and asked their cooperation in reducing this impact on the neighborhood. According to the resident, this communication by the officer has resulted in the adverse activities associated with that property being substantially reduced. • One of our zoning enforcement officers performed an inspection of maintenance issues associated with the properties identified by the resident and the general neighborhood. While no substantial violations were identified at that time, staff asked the resident to contact us as he observes violations to permit us to respond as promptly as possible, when particular activities may be occurring. • The issue that has been more challenging to resolve has been that of the number of residents in a particular home and the perception that it may be rented on a room by room basis and by the night, resulting in the turnover in occupants of the home that the resident says he has observed. He has indicated that he and his neighbors have reason to believe that the property is a "crash pad", used by airline personnel for short term rentals and advertised at Northwest Airlines facilities for airline employees on layover or in the City temporarily. The resident raises the W issue of whether short term rentals actually constitute a business use of the property rather than a residential one. • The resident forwarded the City a phone number that was posted at Northwest advertising rooms to rent in Eagan. Zoning Staff and the Police Department are contacting the number and residents at the home to gather additional information about the situation. The result of their contact was a determination that it appears the owner is not violating the City Code concerning the definition of family. This determination is based on information supplied by two renters indicating that only five people are renting the home. They stated that there are no short term rentals (daily, weekly or monthly), but they sometimes have up to three other people who are not renters staying there for short periods of time. The residents acknowledged that they became aware of the availability of the home through a posting on an employee bulletin board at Northwest Airlines. • The City Attorney has advised that cities may not require properties to be either owner occupied or rental. Cities can regulate properties on the basis of housing type and can promote the public health, safety and welfare by defining an unrelated "family" by size, to prevent overcrowding of housing units. • It also should be noted that enforcement of the maximum family size is one of the more difficult standards to investigate, because it typically requires access to the property and cooperation by the residents, particularly when the apparent occupancy is close to the permitted maximum. Even so, when concerns of this kind are received, staff makes an effort to ascertain the facts that are available and to educate the owners of the property of the City standards. • At the present time, the City does not have a mechanism or regulation that prohibits short term rentals in residential areas or differentiates between short term and long term rentals. The City Attorney's office has prepared background with respect to the options that may be considered in this regard ranging from modifications of the existing Code to the potential of rental housing licensing. ISSUES: Definition of Family -The resident has suggested that modifying the definition of "family" to permit fewer unrelated people to meet the definition might reduce the perceived impacts of rental properties on residential neighborhoods. Staff research indicates that many cities have a definition of family similar to Eagan's, plus or minus a roommate. While there is some variation among communities, the responses staff received during its research suggested that the challenge lies in determining that a violation exists within a private home, regardless of the definition that is being enforced. Staff is requesting Council direction as to whether a modification of the definition of "family" for purposes of the zoning code would be beneficial in this instance or generally. Regulation of Short Term Rental Properties - If the Council determines that the issue being raised justifies a different form of regulation than is currently available, there are a range of alternatives that may be considered from modifying code definitions to rental licensing. The City Attorney's analysis outlines issues relative to such alternatives. The more substantial the requirements, however, the more important it would be to provide adequate staff resources to perform additional enforcement or compliance inspections. Staff is requesting Council direction as to whether a modification of the City's residential housing definitions regulations would be beneficial in this instance or generally. On Street Parking Regulations -The resident has suggested that further regulating on-street parking might be a means of limiting uses that generate or attract large numbers of cars by forcing them to accommodate all parking on private property. Code Enforcement, Public Works and Police staff discussed the City's history in considering on street parking restrictions other than the odd-even parking requirements during the snow season. While there are communities that prohibit overnight on-street parking year round or require all vehicles parked on the street to be moved at certain intervals, Eagan has been reluctant to pursue similar regulations in the past, offering instead to consider petitions for parking restrictions from neighborhoods facing particular issues. Staff has some concern too, that modifying parking restrictions in cases such as this may be treating the symptom and not the cause. The number of people in a home appears to be the issue and the fact that each of them apparently drives results in the on-site and on- street parking issues. Staff is requesting Council direction as to whether a modification of the City's on-street parking regulations would be beneficial in this instance or generally. ATTACHMENTS: • Resident letter on pages ~. • City Code section pertaining to the definition of family on page ~~ • Staff memo regarding definition of family size in other communities on pages ~~_ • City Attorney's memo regardin regulation of short term rental properties in residential areas on pages 7-' • Staff memo regarding potential costs of rental housing licensing on pages Iq-a0 ~~ 24 March 2004 BAR ~ ~ ?Odq Mr. Tom Hedges City Administrator City of Eagan 3830 Pilot Knob Road Eagan, MN 55122 RE: Zoning for Single Family Home Dear Tom, I writing to you regarding my concern and those of homeowners in the neighborhood regarding the rapid deceleration of our neighborhood into a commercial area, and not the residential neighborhood that it was, or was designed to be or what the homeowners believed they purchased. Below !have outlined two events that have altered the original neighbofiood, and one that appears to be about ready to again negatively alter the neighborhood. In 1988 I purchased a single famil detached home ("SFH") at the above address. This property is located on Lot >•, Block subdivision to the City of Eagan. The property has Covenants and Restrictions dated 13 April 1979. In 1988, all of the lots were occupied by SFH's and were occupied by their owners. The ingress and egress is by a single street shaped in an approximate cul-de-sac with many of the lots located at are near a rising hill. See attachment. 1. About four years ago the SFH at~llVdgeon Way (Lot ~, Block was converted to a Group Home by Minnesota Social Services. This is an approved use of the SFH. 2.. Shortly after that property was converted, the SFH a~'1N'~dgeon Way (Lot ~ Block was converted to an unauthorized commercial business, to wit, a roomin4 house occupied by up to ti-unrelated persons, by an absentee landlord. 3. I believe that the SFH located at~IVdgeon Wa ay have been sold to an investor. I have checked with Michael Siewert of Dakota County Social Services, and he has advised me that they have not received an application for a Group Home or Assisted Living Facility for Page 1 of 4 9 .~:. ~ .`. The current City of Eagan planning code defines a SFH as: °Dwelling, single family means a building designed for arf occupi"ed by one (1) ~ •~' family." Further research shows that the City of Eagan's definition of a family is: "Family means an individual or two (2) or more persons each related by blood, marriage, or adoption living together as a single housekeeping unit; or a group of not more than five (5) persons not so related maintaining a common household and using common cooking and kitchen facilities. For the purposes of .this definition, housekeeping unit means all persons residing within a dwelling unit whose relationship includes substantial amount of social interaction, including the sharing of housekeeping responsibilities or expenses and the taking of meats together.° With the Group Home widgeon Way, the occupants are not a concern and the property has been regularly maintained. The concern from this property is the caregivers. Apparently there is ashift-change for the caregivers about 10:00 p.m. Often the caregivers who are arriving for the night shift arrive at or very near the scheduled time. These arriving caregivers often are driving at speeds well in excess of the posted speed limit, and if one is outside at that time of the evening it is a dangerous time. Tuesday evenings seem to be the scheduled meeting night for the caregivers, as many cars arrive and stay for about an hour or so, and then most depart rapidly to other destinations. The Rooming House located at~V~dgeon Way is approximately 200-feet from the Group Home. The roomers have from 5 to &vehicles. The roomers appear to stay at the Rooming House for periods ranging from 30-days to 120-days. The lawn, scrubs and trees are poorly maintained, and the grass (actually primarily weeds) is cut about 3-times per season. It is my opinion that the Rooming House does not meet the City of Eagan's definition of a "housekeeping unit. My reading of the City of Eagan's definiti of:°housekeeping unit°, leads me to believe that the intent was that the unrelated persons ac~d ~as a "family° even though they are not related by blood, adoption or marriage. The roomers occupying ~~dgeon Way are really not a "housekeeping unit", but rather short-tenn tenants ("roor~ ers,") that pay a rental fee to an absentee owner, and have access to cooking and tauncl~y appliances. 1 do not believe the intent is to authorize such a commercial short-term living facility in our residential neighborhood. ..~~ . ,. My experience has been that short-term r~entafs are usually in`a commercially'zoned area, and that they have a different set of requirements or standards. It is my belief and that of other homeowners that the Rooming House at~Widgeon Way is in violation of the Code. Page 2 of 4 ~D The affect of these two properties and ~llllidgeon Way) on the remaining properties is to convert a residential neighborhood into a commercial for-profit zone. This commercialization creates the following problems: 1. Increase in Vehicle Traffic: The two lots now have more vehicles than four SFH's in the neighborhood. This contributes to a safety issue for persons in the area. Extra vehicles are parked on the public street, occasionally for several days. I have been told that the City of Eagan does not have a time limit for vehicles parked on public streets. Without limiting the time a vehicle is parked on a public street, you increase potential risks, and the streets become an unregulated parking lot for inoperable vehicles. 2. Unknown Persons: The Boarding House has an ever-changing group of boarders whose background is unknown. On occasion the police have been called to this property by other neighbofiood SFH owners. 3. Deterioration of Property: Absentee landowners often do not maintain their properties to more than the minimum to maximize their financial rate of return. 4. General Decline: The City of New York established a policy under its prior mayor that effectively enforced what had been previously considered minor offences. When enforcement of °minor* offences was enforced, the affect was that heretofore "-major' offenses decreased. 5. Decline In Value: The SFH are depreciating in value compared to a similar property that is not under going a transition to semi-commercialization. This downward spiral will affect not only the quality of the City of Eagan, but will result in lower taxes. If the SFH at~VVdgeon Way that is presently sold, with a planned closing on or abort 30 April 2004, is allowed to violate the Code in a similar manner to the Rooming House at Widgeon Way, the value of the properties in the neighborhood will rapidly decrease in value. The City code as presently written appears too generous compared with Burnsville for example, where (Chapter 4, Definitions, 10-4-2) defines "FAMILY" as "An individual or two (2) or more persons related by blood, marriage, guardianship or adoption living together as a single housekeeping unit; or a group of not more than four (4) persons not so related maintaining a common household and using common cooking and kitchen facilities; or a residential program (group home) for six (6) or fewer persons as defined and licensed by the State of Minnesota Department of Human Services" [emphasis added]. I would respectively request that the Mayor and the City Council of Eagan immediately to take the following actions: 1. Enforce the Code as it relates to the Rooming House at~wdgeon Way, by issuing a cease and desist order to the landlord. 2. Request that the City Planner review the present Code, and report his findings to the Council. ~/ Page 3 of 4 3. Request the police department to review the affect of allowing vehicles unlimited time to park on public streets. White 1 am writing to you concerning my neighborhood, the problem relates to the entire Ciiy of Eagan and thus has far reaching affects. I believe that most homeowners would be very concerned about the potential for their neighborhoods and in many cases their single largest investment to be potentially subjected to negative changes as those I have outlined here. I look forward to responding to questions that you may, and suggestions that you may have that might reverse the negative affects at least as how they relate to the Boarding House and potenti~FLexpansion of boarding houses. P.S. Please mike copies of ~is fetter available to the Mayor and City Council members as well as to appropriate City employ es. ~~ Page 4 of 4 „.. R '~5~77' F~~ r~r'SrP 17 ~____ wtT. *~r 2 ~p .. )•,,-y ' \'>~~~, e ...,.:~' ,, ~~ r ~ •i ~ wl f' t' Z7~. .::.'ti . 6 '_ . FX 0 AI W N F .^ 7 %. '. .. . a.. .~. ~ ~ . . .i ,• . . ,V 'ti J. ~.~ _ /3 ~rr~~.~nL raw ~ • DUCKWOOD~ ESTATES S !0'19 12'W no. .. .~~..~ ~~~ >~~~_=~~ ~~ ~i ~ 1 ~~ MEMO ' city of eagan TO: Jon Hohenstein, Community Development Director FROM: Mary Granley, Code Enforcement Tech DATE: June 3, 2004 SUBJECT: Family Definition As requested, following is the City Code section pertaining to the definition of family: Sec. 11.30. Definitions The following terms, as used in this chapter, shall have the meanings stated: Family means an individual or two or more persons all of whom are related to one another by blood, marriage, or adoption living together as a single housekeeping unit; or a group of not more than five persons all of whom are not so related to each other, but maintain a common household and common cooking and kitchen facilities. For the purposes of this definition, housekeeping unit means all persons residing within a dwelling unit whose relationship includes a substantial amount of social interaction, including the sharing of housekeeping responsibilities or expenses and the taking of meals together. Please let me know if you need further information. /~f ~rt -~ ^~~ t+ f;* ~ ~ ~ x ~' ,. ~~~ city of eagan MEMO TO: Jon Hohenstein, Community Development Director Mike Ridley, City Planner FROM: Mary Granley, Code Enforcement Tech DATE: May 28, 2004 SUBJECT: Definitions of Family Eagan City Code defines a family is an individual or two or more persons all of whom are related to one another by blood, marriage, or adoption living together as a single housekeeping unit; or a group of not more than five persons all of whom are not so related to each other, but maintain a common household. In response to the City Council's request to determine how other cities or counties regard the definition of "family", following is information compiled from a survey sent through a MCMA listserv request. The total number of cities responding to the survey: 35 In 32 of the 35 cases, the responding city's code reads basically the same as Eagan's. The difference noted in the survey responses is that the number of unrelated individuals allowed in a single family dwelling varies from 2 to 6. In the 3 cases in which the cities' definition is quite different, the cities either do not address a family definition, or have a definition of family as "a group of individuals living under one roof '. The responses categorize as follows: Cities allowing not more than 2 unrelated persons: 1 Cities allowing not more than 3 unrelated persons: 4 Cities allowing not more than 4 unrelated persons: 14 Cities allowing not more than 5 unrelated persons: 12 Cities allowing not more than 6 unrelated persons: 1 Unlimited number of people allowed: 2 Ordinance doesn't address a family definition: Total: 35 /5 It is important to note that enforcing the family definition is generally very difficult because of the privacy of residential properties. Investigating a complaint on a property where there maybe a rental situation may first involve trying to determine whether or not the residents are related by blood, marriage or adoption. Unless someone is willing to share this information voluntarily, or provide a driver's license, or birth, marriage or adoption records, verification of this maybe overwhelming. If someone voluntarily admitted the residents are not related, then a way to determine the actual number of residents is needed. Again, we would rely on voluntary information provided to us. To actually verify living arrangements, it maybe essential to gain access to the interior of a home to inspect the property condition. Some items that may require assessment are bedrooms, lockable interior doors, kitchen facilities, bathrooms and separated areas of the residence. Gaining access to the interior of a home is an obstacle, and interior inspections may not reveal the true nature of how many people aze renting or using the property as a short-term or long-term residence. Eagan's code does not reference the following items, which were noted in the code responses from other cities: • Domestic servants, personal care attendants, and gratuitous guests are excluded when determining the number of individuals within a home. A definition of a "traditional family" (one or more persons related by blood or marriage residing in a single family dwelling) and a "functional family" (a collective group of unrelated persons residing in a single family dwelling limited to not more than 2 adults, together with their traditional family members of any age); and a defmition of "related by blood". • A residential program (group home or foster care) for 6 or fewer individuals, as defined or licensed by the state shall not constitute a family. • A definition of boarding or rooming house (a dwelling unit where lodging with or without meals is provided for compensation and occupied by five or more adult individuals).- • A family is defined as a group of no more than 6 people plus their offspring. • Family does not include any group where the common living arrangement or basis for the establishment of the housekeeping unit is temporary. • A requirement of two off-street parking stalls for each living unit (required because of large number of rentals and local college). For the purposes of this review, we have determined that the definition of family and number of unrelated person is not provided in State Statutes. Therefore, it appears said number can arbitrarily be set by the municipality. Please contact me if you have further questions. I6 SEVERSON, SHELDON, DOUGHERTY & MOLENDA, P.A. SUITE 600 7300 WEST 147TH STREET APPLE VALLEY, MINNESOTA 55124-7580 (952)432-3136 TELEFAX NUMBER (952) 432-3780 E-MAIL bauer; @seversonsheldon.com TO: Jon Hohenstein, Community Development Director FROM: City Attorneys' Office DATE: June 3, 2004 RE: Short-Term Rental Issues Jon, This is by way of follow-up to your inquiry concerning short-term rental issues in the City. We provide the following response to the questions raised: Issue 1: Can the City regulate whether a residential unit must be owner occupied? Response: Generally the City cannot mandate that asingle-family home be "owner-occupied." Issue 2: Can the City regulate the definition of "family" for purposes of health, safety and welfare? Response: Pursuant to MIiJx. STAT. § 412.221, subd 32, the City Council would have the authority to provide for the government and good order of the City, .the protection of public and private property, the benefit of residence, trade and commerce and the promotion of health, safety, order, convenience, and general welfare by such ordinance is not inconsistent with the Constitution and the laws of the United States or of this State as it shall deem expedient." The current definition of "family" in the City Code appears to be adequate. The Code defines "family" as "[AJn individual or two or more persons all of whom are related to one another by blood, marriage, or adoption living together as a single housekeeping unit; or a group of not more than five persons all of whom are not so related to /~ each other, but maintain a common household, kitchen and facilities." For the purposes of this definition, "housekeeping unit" means "[A]11 persons residing within a dwelling unit whose relationship includes a substantial amount of social interaction including the sharing of housekeeping responsibilities or expenses and the taking of meals together." Eagan City Code § 11.30. Under this definition, transient guests would not generally meet the "common household and common cooking and kitchen facilities" maintenance requirement, nor "the sharing of housel~eeping responsibilities and the taking of meals together." Issue 3: Can the City differentiate between the short and long-term rentals? Response: The general welfare statute cited above generally gives the City Council broad "general welfare" powers as well as protection of ~ private property and benefit of residence, trade and commerce. The ~`' City currently differentiates somewhat between long and short-term rentals in its definitions of "hotels" and "motels." Both are defined as ~~ a building or a group of buildings offering transient lodging `, p accommodations to the general public, which may provide additional VJ services such as restaurants, meeting rooms, and recreational facilities. The differences between the two definitions are that hotels allow access by an inner hallway and motels allow access from the outside. Another difference that the "motel" definition specifies that the rental is on a daily basis, whereas the definition of "hotels" does not include that specification. Issue 4: Can the City use the current definition of hotels and motels? Response: Generally speaking, no. Arguably, if the rental of the house is fox the entire house, then it would appear that the definition of "motel" may apply. If the rental is for sleeping room only, then the definition of "hotel" may be more applicable. Alternatives: To the extent that the Council desires to prohibit rooming houses within residential zoning districts, it should give consideration to directing our office to make modifications to the current Zoning Code. Generally speaking, the City cannot prohibit an activity, however, we can amend the Zoning Code to add a definition of "rooming house" and make this either a permitted or conditional use within a specified zoning district. Conversely, we could modify the definition of "family" or create a new definition of "single-family dwelling" that would effectively prohibit rooming houses within a residential district. If you have any additional questions or comments concerning this matter, please feel free to give me a call. /8 t :~~ ~ x ~~ t city of eagan MEMO TO: JON HOHENSTEIN, DIRECTOR OF COMMUNITY DEVELOPMENT FROM: DALE SCHOEPPNER, CHIEF BUILDING OFFICIAL DATE: JUNE 3, 2004 SUBJECT: RENTAL HOUSING LICENSES Research performed by Erik Slettedahl estimates that the City has between 230-250 single family dwellings/duplexes that are rental property. This estimate comes from data collected from the 2000 census and by researching non-homestead single family dwellings and duplexes. Cities administer these programs a number of different ways; some inspect on a complaint only basis (St. Paul); some inspect every five years (Minneapolis); and some perform yearly inspections (Bloomington). Bloomington regulates 285 single family dwellings and 100 duplexes with one inspector and a percentage of clerical support. St. Paul licenses approximately 4,200 single family dwellings and duplexes rental units. The staff supporting this program consists of two inspectors, one clerical, and one supervisor. Minneapolis has approximately 12,000 single family dwelling units and duplexes in its program with 22 inspectors and five clerical staff. It appears that Bloomington's program is closest to the scope of a potential program in Eagan. More research would be needed to establish a budget amount; however, one inspector and possibly a 1/3 time clerical staff would be an estimate for personnel. Vehicles, computers, work stations, telephones, etc. would have to be added to any estimate for a program. If you need any more information, please advise. Chief Building Official DS/j s /9 / Q Q p 0 ~ f v a ~ V Non-Homestead Single Family Detached and Twin Home Units May 2004 N 249 total units 2000 Census 233 total single family detached rental units ~o Agenda Information Memo June 28, 2004 Eagan City Council Workshop V. 2005 BUDGET /STATUS UPDATE ACTION TO BE CONSIDERED: This is an informative/discussion item and no specific action is required. FACTS: In early May staff began the 2005 budget process and Department Directors are preparing 2005 budget proposals for the various divisions and departments. The proposals are due to the City Administrator on June 18, 2004 and will be reviewed in meetings in late June and early July. Depending on the workload and other priorities, review with the City Council is expected to formally begin in late July or early August. Enclosed on page ~_ is a copy of the Preliminary 2005 Budget Calendar as presented to staff. -;['ir i ~~ . p u,~~~ a Staff was also reminded of the City Council adopted goals for 2003-2004 to: Q p~-,~, Q ~y.~ • Streamline City operations and staffing to reduce City costs and improve „~`s wo,.r ~ t ~a efficiencies and output. w ~ • Research the impacts of the possible reduction in non-essential services ~ ®Kv N~ currently provided within the City's annual budget. ~x,.~ ~..~~ As a starting point and consistent with past practice, Directors have been instructed to target an inflationary 3% increase or less in each department. In addition they have been asked to clearly outline resource requirements to maintain the current level of services and to adjust for budgetary items that fluctuate from year to year The 2005 budget will present a number of significant public policy questions for consideration by the City Council. For example, there is still a great deal of uncertainty about a Special Session being called and what further State budget deliberations nught do to cities including Eagan. Also, the Homestead Market Value Credit (HMVC) is due to be restored for payable 2005, however, with the State's looming budget problem for its 2006-2007 fiscal years, budgeting for HMVC in the City's 2005 budget could likely be problematic. Finally, certain expenditure items may have been postponed by the City in 2004 to maintain basic services and will need to be addressed in 2005. On the positive side, there are currently no levy limits imposed by the State for taxes payable in 2005, although that too may change if there is a Special Session. These and other public policy issues will be brought before the City Council for action and direction as more information becomes available. l=J ~ ~"t ~ ~'` C ~~ v c~' `+1 ~~ `~ ~CA i ~7 ~ WSJ rz S v~.~ ~ ~-~1 O ~~ a~ a ~~'-~. :~' y `~,-~s~ ~,,,,~" L AA,, t -~ Iv` ~ l~. ~ ~~~ os~ o8w`'' e ~~ ~ ~ CITY OF EAGAN PRELIMINARY 2005 BUDGET CALENDAR May 11, 2004 Preliminary budget distn~ution for City Administrator and all Department Heads. May 11-June 18 Department Heads prepare department budgets, enterprise budgets and the 2005-2009 CIP. Jnrie 18 -early-July ~ Finance Department completes revenue estimates. City Administrator and Finance Department confer with Departments. City Administrator's budget drafted for presentation to the City Council. Late,Jnly City Council considers budget. August ZO * County Auditor notifies the City of the dates which have been selected by school districts and the County for Truth-in-Taxation hearings. September 15 * City must certify proposed levy to the County Auditor, the City must also adopt a proposed budget. City must select dates for initial hearing and continuation hearing (if needed). Early December Truth-in-Taxation Public Hearing December 21 Final Adoption of Tax Levy and 2005 budgets. *Dates have not been confirmed by State legislature. a~ Agenda Information Memo June 28, 2004 Eagan City Council Workshop VII. 2003-2004 CITY GOALS DISCUSSION ACTION TO BE CONSIDERED: This is an informative/discussion item and no specific action is required. FACTS: • The City Administrator will be prepared for a brief discussion on the City Council's Goals and any other items of business that the Council may wish to discuss.