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HomeMy WebLinkAbout2005 09-26 CCM Work Session MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL /ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA WORK SESSION SEPTEMBER 26, 2005 CITY HALL — COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council /Economic Development Authority met in Work Session and was called to order by Mayor /President Myrna Kragness at 8:17 p.m. ROLL CALL Mayor /President Myrna Kragness and Councilmembers /Commissioners Kathleen Carmody, Kay Lasman, Diane Niesen, and Mary O'Connor. Also present were City Manager /Executive Director Michael McCauley, Assistant City Manager/Director of Operations Curt Boganey, and City Clerk Sharon Knutson, DISCUSSION OF RENTAL HOUSING LICENSE FEES The City Council continued its discussion from the Study Session of the rental dwelling license fee structure with regard to the potential for an initial fee and renewal fee for single family rental dwellings. Councilmember Lasman stated she could support a $375 fee for initial licenses, with a $300 or $325 renewal fee for single family rental dwellings. Councilmember Carmody said that the March report on inspectors' time spent on rental inspections shows that 65% of the inspectors' time is spent on single family rentals, and therefore does support leaving the single family fee higher. She said it isn't fair to charge other types of rental property higher fees to offset the reduced revenue in single family rental dwellings. Councilmember Lasman agreed with Councilmember Carmody regarding not penalizing multi- family rental dwellings to subsidize single family rental dwellings. She said there must be some performance to justify a lowered renewal fee for single family rental dwellings (i.e., property has not been problematic). Councilmember Carmody discussed setting fees based on the number of times the inspector needs to do a re- inspection and said there could be accusations that the inspectors are failing the inspection to get more money. 09/26/05 -1- Mr. McCauley said the City of Brooklyn Park struggled with its rental dwelling fee structure. He said the fee schedule structure is a policy decision for the Council. Jeanette Messersmith, 5340 Queen Avenue North, addressed the Council and said Brooklyn Center is a first -ring suburb and asked why the rental license fees are so skewed compared to other first -ring suburbs. Councilmember Carmody said the taxpayers of Brooklyn Center are subsidizing the rental property inspections and that was the impetus for changing the fee structure. Ms. Messersmith said it is such an extreme increase and she is trying to keep her rents affordable. She suggested self - policing like the Association of Rental Management (ARM). Mr. McCauley said it is time consuming to get owners of single family rental property to follow through on inspections. He said there are numerous "get rich, buy rental property" seminars that people are attending and they have no experience with owning and managing rental property. Ralph Johnson, 5440 Bryant Avenue North, addressed the Council and said they are not absentee landlords; they own duplexes and live on one side. Councilmember Niesen said she would like to discuss the homestead idea, that if your property is homestead you should not have to license the property. She discussed that New Brighton does not inspect one- and two - family rental dwellings. She said the City's current provisional license only applies to four -unit dwellings or more. She stated there are a number of absentee landlords, and the homestead definition does reduce inspection costs. She inquired what was the purpose of the $450 minimum and how the fee structure kicks in when it is 24 units or more. Ms. Messersmith said she appreciates the inspection and learns what happens when there is a change pP P pp in the code. She would like to see some incentive for living in close proximity to the rental property she owns. Councilmember O'Connor suggested that when one side of a duplex is homestead, the other side could have a reduced license fee. Mr. McCauley explained that the Council could rationally reduce the fee for a duplex that is homestead, but could not rationally reduce the fee of a rental property if it is in close proximity to the owner. Councilmember O'Connor suggested a fee of $200 for one side of a duplex, which would make the total costs for both sides $400. Councilmember Niesen inquired what information goes out to the rental property owner to notify them of the codes, and what education and skills are needed to be a housing inspector. She discussed the appeal process for rental property owners. 09/26/05 -2- Ms. Messersmith inquired if inspectors could make inspections on evening hours or weekends. Mayor Kragness responded the Community Development Department would need to review that issue. Councilmember Niesen inquired how long the City has had three inspectors, how they can keep up if the number of inspections keep increasing, and at what point the City would need to hire an additional inspector. She said she thought a time study had been authorized. Mr. McCauley responded that there is a push and bulge effect with inspections. He said previously they were enveloped in large apartment complexes; the current trend is single family rentals with a lull in multi - family dwellings. He stated the prior fee schedule did not cover the costs of administering the rental housing inspections. Councilmember Lasman inquired if the housing inspectors are also building inspectors. Mr. McCauley responded that there is a complement of three inspectors; one building official, one building inspector, and one housing inspector and this group has been very efficient. Councilmember Lasman stated that the inspectors were busy with Brookdale during its renovation. Ms. Messersmith mentioned the Opportunity Site and Northbrook Site will also require inspectors' time. Mr. McCauley said the fee for rental licensing covers the cost of inspections, but does not include the cost of police or code enforcement. He stated that a lower fee for a duplex with one side homestead is defensible, as well as an initial and renewal fee for single family dwellings. Councilmember Carmody suggested $450 for initial single familyrental dwellings. Councilmember Lasman said she would consider that fee. Councilmember O'Connor suggested $400 for initial and $300 for renewal single family rental dwellings. Councilmember Lasman summed up the discussion on suggested fees as $400 for initial and $300 for renewal single family dwellings and $200 for one side of a duplex. Mr. McCauley aid he would take those fees and run the report and see if there is an adjustment Y P Y J needed for multi - family dwellings. REVIEW OF CARL NEU'S OBSERVATIONS AND CONCLUSIONS FOR THE SEPTEMBER 14 CITY COUNCIL WORK SESSION This item was discussed at the Study Session. 09/26/05 -3- DISCUSSION OF WATERSHED COMMISSION APPOINTMENT FOR JANUARY 2006 Councilmember Carmody said she had tried to call Grady Boeck to discuss this issue with him since he is the Brooklyn Center representative for the watershed commissions. She said she would like to recommend that a Council Member be appointed to the watershed commissions because they vote on issues that deal with spending City money without City Council knowledge. Councilmember Niesen said a Council Member could not serve on the watershed commissions. Mayor Kragness said it is City employees who can't serve; and Mr. McCauley said Council Members are residents and could serve. Councilmember Lasman suggested tabling this item until Grady Boeck could be contacted. Councilmember Niesen stated the representative should have a technical background and an understanding of engineering issues. There was discussion regarding the structure of the watershed commissions. Councilmember Niesen volunteered to make a few phone calls and bring information back to the Council. MISCELLANEOUS Councilmember Niesen raised the issue of the warning sirens for the September 21 storm and when they were sounded. Mr. McCauley said he would check with Fire Chief Ron Boman and report back to the Council. Councilmember Carmody showed the Council a returned envelope, including a response letter, that she had addressed to Dai Thao, a gentleman who had written to the Council. She said the address he provided did not exist, so her response did not reach him. Councilmember O'Connor discussed a letter the Council received from Mr. Trepanier. Mr. McCauley said Mr. Trepanier wants to appeal the decision of the inspectors which requires him to hard wire the detectors. He said Mr. Trepanier had been given a substantial period of time in which to complete the work and he is challenging the compliance order. Councilmember O'Connor raised the issue of the schedule of financial services and if the City could eliminate some of the outside services and do them internally or find a cheaper way to do it. Councilmember Carmody said that City staff can not and should not do an audit of the City. Councilmember O'Connor asked to see what the Housing Commission had previously recommended to the City Council regarding the parking of cars in driveways. Councilmember Carmody said the Housing Commission made numerous recommendations, but could not come to consensus. She said they initially were discussing fences and it mushroomed to other issues from there. She didn't believe there was a specific recommendation to Council. 09/26/05 -4- Mayor Kragness said the Housing Commission was having trouble getting a quorum and there was some talk about making the commission smaller. Councilmember Niesen said she had submitted recommendations with regard to Chapter 12 to the Housing Commission. Mayor Kragness said it wasn't submitted with the consent of the Council. ADJOURNMENT Councilmember /Commissioner Carmody moved and Councilmember/ Commissioner Lasman adjournment of the City Council/Economic Development Authority Work Session at 9:39 p.m. Motion passed unanimously. City Clerk Mayor/Preside 09/26/05 -5-