HomeMy WebLinkAbout7A Amend Fee Schedule (short term rental) O1 I'R10
6.
U 4646 Dakota Street SE
Prior Lake,MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: MAY 26, 2015
AGENDA#: 7A
PREPARED BY: LARRY POPPLER, CITY ENGINEER/ INSPECTIONS DIRECTOR
PRESENTED BY: LARRY POPPLER
AGENDA ITEM: PUBLIC HEARING TO CONSIDER APPROVAL OF AN AMENDMENT TO THE
2015 OFFICIAL FEE SCHEDULE AND CONSIDER AMENDMENTS TO THE
PRIOR LAKE CITY CODE, SUBSECTION 106.600 (ADOPTION OF OFFICIAL
FEE SCHEDULE) AND A RESOLUTION APPROVING THE SUMMARY ORDI-
NANCE AND PUBLICATION THEREOF
DISCUSSION: Introduction
The purpose of this agenda item is threefold; 1) to hold a public hearing for an
amendment to the 2015 Official Fee Schedule and 2) to consider approval of an
Ordinance amending Section 106 of the Prior Lake City Code to include the Official
Fee Schedule as required pursuant to Minnesota Statute 462.353 and 3)a resolution
approving a summary ordinance and publication thereof.
History
Cities typically charge user fees for services for which a specific person or group
benefit. User fees are a significant revenue source constituting almost 20% of the
City's annual General Fund income.
Annually, staff reviews the fee schedule as part of the budget process and makes
recommendations to the City Council for changes or additions as needed. On Jan-
uary 12, 2015 the City Council adopted the 2105 fee schedule.
On April 20, 2015, the City Council adopted ordinance 315 which regulates short
term rentals. This ordinance requires owners of short term rental properties to se-
cure a permit from the City. To help defray costs of administering the permit, a permit
fee is appropriate. A notice was published in the Prior Lake American confirming
that a public hearing, as required by State Statute 462.353, was scheduled to be
held on May 26, 2015.
Current Circumstances
A public hearing is required by State Statute 462.353. The hearing will allow citizens
and other interested parties to voice their opinions regarding the fee proposed for
short term rental.
The input received from the public hearing and City Council will be determine the
appropriate permit fee for the short term rental permit. As a first time fee, it was
difficult to determine the appropriate amount for the permit. After deliberating, City
staff is proposing a $200 permit fee. This fee was based on an assumption of ap-
proximately 5 hours staff time per short term rental unit to administer the program.
Time will be tracked in 2015 to determine if the fee is too high or not high enough.
We are asking the Council to approve an amendment to Ordinance subsection
106.600. The amended Ordinance will incorporate a permit fee of $200 for short
Phone 952.447.9800 / Fax 952.447.4245/www.cityofpriorlake.com
term rental permits in the 2015 Official Fee Schedule. The amended ordinance is
attached.
Conclusion
It is recommended that the City Council conduct the public hearing and if no new
information is offered, approve amendment of the 2015 fee schedule to incorporate
a fee for a short term rental permit. The 2015 Amended Official Fee Schedule will
be incorporated into the City Code with an effective date of June 6, 2015 (publication
date).
The new short term rental permit fee is shown in the table below:
PROPOSED CHANGES
Fee Description Proposed
2015 Amount
Permits:
1_ Short Term Rental Permit $200.00
Explanation of Changes
1. Short Term Rental Permit is a new fee which will cover costs in administering
the new short term rental ordinance.
ISSUES: This public hearing for the proposed fee schedule is the primary opportunity for the
public to comment or ask questions about the proposed 2015 Official Fee Schedule.
It is suggested that the City Council solicit and record resident questions during the
public portion of the meeting. Once everyone wishing to speak has had a chance to,
then the staff can respond to the questions and council members can ask additional
questions or append onto responses already made. This format will allow council
members and staff to have a reasonable and informative discussion which should
enhance the public's understanding of the proposed 2015 Official Fee Schedule
amendment.
FINANCIAL The fee schedule identifies those types of service charges and license fees charged
IMPACT: on a user basis to recover City-associated costs. Charges for services, licenses and
permits are a significant part of the revenue stream supporting the City's budgets.
For example the General Fund budget receives about 20% of its support from
charges for services, licenses and permits.
ALTERNATIVES: 1. If all questions have been answered: 1) close the public hearing portion of the
meeting and 2)Approve an Ordinance amending subsection 106.600 (Adoption
of Official Fee Schedule) as proposed or with changes as specified, and 3) Ap-
prove a resolution approving the Summary of the Ordinance and ordering the
publication of said summary so the new fees will be effective on June 6 (publica-
tion date) and so affected persons can become familiar with the revisions.
2. Delay action if the Council requires additional information.
RECOMMENDED A motion and a second for Alternative #1
MOTION:
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4646 Dakota Street SE
Prior Lake.MN 55372
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CITY OF PRIOR LAKE
ORDINANCE NO. 115-xx
AN ORDINANCE OF THE CITY OF PRIOR LAKE, MINNESOTA,
REVISING SECTION 106.600 OF THE PRIOR LAKE CITY CODE AND
ESTABLISHING A FEE SCHEDULE FOR ALL CITY LICENSE FEES, USER CHARGES AND
PERMIT CHARGES PURSUANT TO MINN. STAT. § 462.351 TO 462.364
The City Council of the City of Prior Lake does hereby ordain that Subsection 106.600 Official Fee
Schedule is amended with the following changes:
PERMITS:
Short Term Rental Permit $200
This ordinance shall become effective from and after its passage and publication or on May 26, 2015
whichever is later.
Passed by the City Council of the City of Prior Lake this 26th Day of May, 2015.
ATTEST:
City Manager Mayor
Summary Ordinance to be published in the Prior Lake American on the 6th day of June, 2015.
e PRI%
4646 Dakota Street SE
4tizorEsolls Prior Lake, MN 55372
RESOLUTION 15-xxx
A RESOLUTION APPROVING THE SUMMARY OF ORDINANCE 115-xx AND ORDERING THE
PUBLICATION OF SAID SUMMARY
Motion By: Second By:
WHEREAS, In accordance with Minnesota Statute 462.353, the City Council held a public hearing regarding
amendments to Subsections 106.600 of the Prior Lake City Code on May 26,2015; and
WHEREAS, On May 26, 2015 the City Council adopted Ordinance 115-xx amending Subsection 106.600 of the
Prior Lake City Code;and
WHEREAS, Minnesota Statutes requires publication of the Ordinance Amendment in the official newspaper before
it becomes effective; and
WHEREAS, Minnesota Statutes also allows the publication of a summary of an ordinance if the City Council finds
that the summary is an accurate representation of the Ordinance; and
WHEREAS, The City Council desires to publish a summary of the amendments to Subsections 106.600 of the Prior
Lake City Code and has determined the publication of a summary of this ordinance will meet the intent
of the statute.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. That the City Council approves the attached summary of the amendments to Subsections 106.600 of the Prior
Lake City Code adopted by Ordinance 115-xx, and authorizes publication of the same.
3. A complete text of the newly adopted city code can be found at City Hall or in the Document Center on the City
of Prior Lake Website after May 26, 2015.
PASSED AND ADOPTED THIS 26th day of May, 2015.
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ❑ 0 0 0 ❑
Nay 0 0 ❑ ❑ 0
Abstain 0 0 0 0 ❑
Absent 0 0 0 0 ❑
Frank Boyles, City Manager
SUMMARY ORDINANCE NO. 115-xx
CITY OF PRIOR LAKE
SCOTT COUNTY, MINNESOTA
AN ORDINANCE OF THE CITY OF PRIOR LAKE, MINNESOTA,
ESTABLISHING THE CITY FEES AND CHARGES FOR 2015
By the enactment of this Ordinance, the City Council establishes fees and charges required by the City
Code for the year 2015 and to comply with Minnesota Statutes 462.353, subd.4.
A complete text of the newly adopted city code can be found at City Hall during regular office hours or in
the Document Center on the City of Prior Lake Website after May 26, 2015.
Approved for publication by the City Council for the City of Prior Lake, Minnesota this 26th day of May,
2015.
ATTEST:
Frank Boyles, City Manager Kenneth Hedberg, Mayor
Published in the Prior Lake American on the 6th day of June, 2015.
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