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HomeMy WebLinkAbout09 05 2017 Development Fees, Code Enforcement and Sewer and Water Rates ReportPhone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL WORK SESSION REPORT MEETING DATE: SEPTEMBER 05, 2017 AGENDA #: A, B AND C PREPARED BY: FRANK BOYLES, CITY MANAGER PRESENTED BY: VARIOUS AGENDA ITEM: DISCUSSION OF DEVELOPMENT FEES, CODE ENFORCEMENT AND SEWER AND WATER RATES INTRODUCTION: The purpose of this work session is to provide the city council with information about the city’s various development fees, ask for clarification about certain code enforcement questions and provide follow up on sewer and water rates if desired by the city council. TOPICS: Included below is background information for tonight’s work session: A)DEVELOPMENT FEES In some respects, it would be ideal if the city developed all at one time. If that were the case each of the key pieces of infrastructure-streets, water system, sanitary sewer and storm water and parks would all be completed all at once. Each developer as well as the city would know exactly how much of each of municipal system they would be responsible for installing and paying for. They would also see how their development impacts upon the rest of the municipal systems including streets, pipes, lift stations and treatment plants which must be oversized to serve the entire community and not just their little segment of it. But this is not reality. Cities develop over a score of years or more. And so under statutory authority, cities create fees which developers pay for the following infrastructure: •Water System including production, treatment, storage and distribution. •Sanitary Sewer System including gravity lines, force mains and lift stations. •Storm Water System including collection, distribution, treatment and disposal of surface water. •Street System including a transportation system, road right-of-way and associated improvements for residential, minor collector, 2 collector and arterial streets together with the signage and signalization. • Park Dedication including community, neighborhood, lake based and natural parks together with connecting trails and sidewalks. City Attorney Schwarzhoff will provide the city council with the statutory basis for each of these development fees which we have been collecting for decades. There are two classes of fees. The first are development or subdivision fees. Typically, these fees are collected at the time of final platting and execution of the development agreement. The second type of fees are connection charges. They are collected at building permit issuance. Shown below is a development handout which is based upon the city code showing city development related fees by type and amount. 3 B) CODE ENFORCEMENT Structures Located Within Setbacks –The current setback requirement for detached accessory structures is 5 feet from side and rear property lines. There are many sheds in the community that are within the 5-foot setback. Per Code Enforcement Policy, staff is to investigate and address all complaints. Staff has recently received complaints about two sheds located within required setbacks; however, staff believes the sheds have been in place since at least 2003 and 1980 respectively. In both cases, the sheds are not ‘legally nonconforming’ since they were never constructed legally. There are two primary issues related to this type of enforcement. The first is, in many cases, the shed may have been in that same general location for many years. So long in fact that it predates our present standards. If the shed was legal when installed and our ordinance changed later, then the shed is a legal nonconformity allowed to remain as is or be maintained but not expanded (for example if when installed there was no setback and the shed was installed right on property line legally, now setback is 5 feet so shed is legal nonconformity). If, however, the shed was NOT legal when installed, then it cannot obtain legal nonconformity rights (for example if when installed there was a 10 foot setback and the shed was installed right on the property line it was installed illegally, now the setback is 5 feet and the shed is still illegal and cannot obtain legal nonconformity rights). The problem here is that often no permit was necessary or taken for the shed and so we have know way of knowing when the shed was constructed and therefore the applicable ordinance which regulated it. In addition, many of the sheds have been in place for many years with no enforcement action taken. The second issue is it is often difficult to determine whether sheds are within the property line. In the old days, lot corner markers existed. Then it was a matter of trying to find the second marker to identify the lot line. Today more often than not the markers cannot be found. So the question is who pays the $900 to $2000 for a new survey or to update the existing survey? The answer depends upon whom is considered to bear the burden of proof? Is it the property owner who may be the victum of ill will by another or is it the city? If the council believes it is the city, we have no funds budgeted for this purpose. Short-Term Rental – The City of Prior Lake adopted a short-term rental licensing ordinance which requires all residences rented for 30 days or less to obtain a short-term rental license. City staff has noticed many unlicensed short-term rentals being advertised for rent even though no rental activity may have occurred yet. Staff would like direction related to how the Council would like staff to pursue the rental units being advertised without first obtaining a short-term license. In addition, staff anticipates many residents may choose to rent out their home as a one-time only occurrence around the Super Bowl and would appreciate direction related to the enforcement of this ordinance around the Super Bowl. Just trying to determine if the rental is one time can only be verified over time. 4 Welcome Avenue Area – The Welcome Avenue Industrial Park has many gravel parking and driving surfaces. City ordinance requires all parking and driving surfaces to be paved; however, many of the Welcome Avenue gravel parking lots were installed prior to the adoption of the ordinance and thus are not required to be paved. However, some gravel lots have been installed in more recent years, and should be paved per ordinance requirements. The same is true in some “older” parts of the city where the gravel drive has never been replaced by bituminous, brick or concrete. Staff is seeking direction from the Council related to how active they would like staff to pursue paving of these parking and driving surfaces. C) SEWER AND WATER RATES At the conclusion of our last work session, Finance Director Erickson provided an overview of how we calculate our sewer and water rates. Unfortunately we ran out of time. Does the city council want the staff to provide another overview so a discussion take place on this topic?