The URL can be used to link to this page

Home My WebLink About1(C) Work Session Sunfish Bay Report Phone 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: MAY 20, 2019 AGENDA #: 1C PREPARED BY: SARAH SCHWARZHOFF, CITY ATTORNEY PRESENTED BY: SARAH SCHWARZHOFF AGENDA ITEM: DISCUSS PROPOSAL FOR DOCK SYSTEM APPROVAL FOR DEDICATED WATERFRONT AT SUNFISH BAY ACTION REQUESTED: Review and discuss proposal for dock system approval for dedicated waterfront for Sunfish Bay. This item is on the Council agenda tonight for consideration. If the Council is not inclined to support the proposal the item can be pulled from the agenda. If the Council is inclined to support the proposal staff is seeking approval of the draft resolution with any additional revisions or conditions approved by the Council. INTRODUCTION: Several owners from the Sunfish Bay development have approached the City with a proposal for a dock system on the commonly owned waterfront. The attached April memo provides a summary of the proposal and City staff’s review of the proposal. Since the April memo was provided to the Council, the Postles’ registration action has been completed and a court order issued. The court order terminates the waterfront abutting the Postle property and registers the entire Postle property including the adjacent waterfront. The court order is attached. With the completion of the registration, the back-lot owners are proceeding with the dock system proposal. According to Kelsey Berquam who has been spearheading this proposal on behalf of the back-lot owners, the following are the owners involved: • Back lot owners represented during the Postle registration and planning to join a homeowners association (HOA): Brian and Lindsy Dodge; Jon Roese; Jeremy Baudoin; Mark and Kelsey Berquam; Andrew and Elana Reis; Jon and Suzanne Siskoff. • Back lot owners planning to join the HOA once it is established: Alan and Marcey Iverson (2 lots); Justin and Monica Nicolay; Troy and Lisa Teske and Mark and Linda Coffman (2 lots). • Back lot owners not included: Ramsey (3 lots), Space and Chisolm. This would mean 12 of the 17 back lots are included the HOA. See attached map. The back-lot owners have provided a rough draft of bylaws for the HOA. If this proposal is approved the bylaws will need to be updated to be consistent with the resolution approved by the Council. 2 Staff is supporting the dock system proposal and the attached draft resolution. While it does not provide a total solution, it does create a system by which back lot owners can ensure access to a slip even if the other lakeshore lots have the waterfront abutting their property terminated as the Postles have done. It also provides an HOA to mediate disputes between the parties which have been extensive over the last several years. If the Council is not inclined to support the proposal the item can be pulled from tonight’s agenda. If the Council is inclined to support the proposal staff is seeking approval of the draft resolution with any additional revisions or conditions approved by the Council. Additional conditions have been discussed such as limiting the lakeshore lots to two slips and providing alternative enforcement such as fines. The Council may also have additional conditions to add to the resolution. Sarah Schwarzhoff | Of Counsel | 952.746.2713 | sschwarzhoff@hoffbarry.com MEMORANDUM To: City Council From: Sarah Schwarzhoff, Casey McCabe Date: April 12, 2019 Re: Sunfish Bay Dock System Attorneys representing several property owners in the Sunfish Bay subdivision have requested the City’s opinion on the issuance of some type of joint/consolidated dock system approval related to a Home Owners Association (“HOA”) which would include some, but not all, property owners within the subdivision. Staff appreciates the progress but has several concerns, in particular: avoiding excessive slips on the lake; not limiting any property owner’s rights without their consent; and the effect of such an approval on the other fifteen dedicated waterfronts on the lake. In order to address these concerns staff proposes an “Approval for Dock System for Dedicated Waterfront”. This would be an approval issued by the City Council by Resolution. It would be available only for dedicated waterfront which can meet all of the conditions set forth by the City Staff acknowledges that the proposed solution is not a total solution. Staff would prefer that all property owners in the subdivision agree to any such solution. However, staff does see this as a step in the right direction. Although all property owners are not currently involved, the approval would leave room for them to join in the future. Staff fears that if the City does not take action until all property owners sign off that a solution may never be reached. In addition, the approval allows the City to impose additional conditions on the waterfront which will benefit the City and other lake users, conditions which the City could not otherwise impose. Staff proposes that an HOA including at least half of the seventeen back lot owners be established before an application is submitted. This would ensure that the property owners have done the work and reached agreement before the City expends time on review and consideration. Once an application is received it would be taken to the Council for consideration. Staff proposes that the approval be in the form of a Council Resolution which would be recorded against all of the properties in the subdivision whether or not a part of the HOA and would include the following conditions:  Number of slips – Number of slips on the dock system shall not exceed (i) 17 slips; or (ii) one slip per back lot member of the HOA, whichever is fewer. This would limit the number of slips currently to those properties which are part of the HOA but would allow slips to be added for each back lot as they join the HOA. Staff proposes a maximum of 17 slips as that is the number of back lots, however, that maximum number could be further limited based on the factors the City considers when reviewing a dock permit such as navigability, water depth, lake traffic, water quality and ecology, and effect of noise, light and fumes. Once a back lot joined the HOA, Hoff Barry, P.A. | 775 Prairie Center Drive, Suite 160 | Eden Prairie, Minnesota 55344 | hoffbarry.com | 952.941.9220 whether or not it later withdraws, the back lot would be prohibited from installing any docks or slips other than the approved dock system.  Lakeshore slips – All lakeshore lots would be limited to a maximum of 2 slips.  Configuration – The approval would include a specific configuration. Any changes to the configuration would need to be approved by Zoning Administrator.  Location – The dock system would need to be located on commonly owned waterfront and maintain a minimum separation of 10’ from any riparian lot line as measured at the Ordinary High Water Elevation. The location could be limited to certain areas or prohibited from certain areas depending on staff’s review of the dock configuration, lakeshore, lake depth and other relevant factors. The approval would not guaranty a specific location as other property owners not included in the HOA would maintain rights to the dedicated waterfront.  Access lot – The subdivision would need to have an access lot of at least 40 feet in width to allow access by back lot owners to the dock system.  HOA – The HOA must include at least 50% of the back lot owners. The HOA must have authority to regulate the dock system and slips including use, maintenance and costs. The HOA must provide a reasonable and equitable way for all other property owners in the subdivision to join the HOA in the future.  Slip use - All slips in the dedicated waterfront must be used solely for the personal uses of the property owners. The City will be authorized to check registrations and the HOA shall enforce this requirement. The City may impose fines or revoke the approval if the slips are not used for personal use.  Ownership/Use – The approval would clearly state the City is taking no position on the ownership or use or rights related to the dedicated waterfront. The approval would also clearly state that the City is not excluding anyone from using the waterfront.  Any other conditions as determined by the City. There is an open question of how the dock system would be counted toward the total number of slips permitted on the waterfront. Before issuing any approval, the City will need to answer this question. The Sunfish Bay waterfront is limited to 24 total slips based on the maximum number of slips allowed (1 slip per 18.75’ of shoreline). The City takes no position on who has a right to those slips, the City only addresses total number. The City could include the approved dock system in the 24-slip limit. This would maintain the current limit but might mean that the dock system could not be installed if others install their slips first. Alternatively, the City could exclude the dock system from the limit, but this could result in more than 24 slips on the waterfront. Staff recommends excluding the dock system from the 24-slip limit. While this does allow for the possibility of excess slips, it ensures that the dock system can be installed regardless of what other slips have been installed. In addition, staff believes that the risk of significant additional slips is limited. First, the lakeshore lot owners will be limited to 2 sips each. Second, several of the back lots are unoccupied or have not had any slips for several years. Third, the cost of installing multiple slips and/or docks will likely limit the number of slips installed. One additional difficulty that remains until all lot owners are part of the HOA is enforcement. The City can include enforcement procedures in the Resolution approving the dock system; however, it would only be effective against those lots that are part of the HOA. If the City proceeds with this idea staff will need to work with the property owners to address enforcement and risks associated with any inability to enforce. Hoff Barry, P.A. | 775 Prairie Center Drive, Suite 160 | Eden Prairie, Minnesota 55344 | hoffbarry.com | 952.941.9220 While staff acknowledges the limitations in the proposed system, staff believes it is a step toward solving the many issues in the Sunfish Bay subdivision. Staff seeks direction from the Council on this matter. Scott County Date: 4/26/2019 0 60 120 180 24030Feet 1 in = 188 ft Scott County