06-27-11 CC WS AgP
CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD
CITY COUNCIL WORK SESSION COUNCIL CHAMBERS
MONDAY, JUNE 27, 2011 6:00 P.M.
AGENDA
Attachments
1. CONVENE CITY COUNCIL WORK SESSION
A. Roll Call
Mayor Lizée ____
Hotvet____
Siakel ____
Woodruff____
Zerby ____
B. Review Agenda
2. LICENSE AND PERMIT REVIEW Administrator’s
memo
3. ADJOURN
#2
MEETING TYPE
City of Shorewood Council Meeting Item
Work Session
Title / Subject: License and Permit Review
Meeting Date: Monday, June 27, 2011
Prepared by: Brian Heck, City Administrator
Reviewed by: Jean Panchyshyn, Bruce DeJong, Brad Nielsen, Tim Keane
Attachments: License and permit report
Policy Consideration: Should the Council modify licensing and permitting ordinances and fees?
Background: See attached memorandum
Financial or Budget Considerations: based on recommendations and direction of the Council, revenue
could go up or down slightly.
Options:
Recommendation / Action Requested: Staff is looking for direction on specific license and permit
provisions.
Next Steps and Timelines: Staff will prepare the necessary amendments to ordinances as directed by
the Council.
Connection to Vision / Mission:
Mission Statement: The City of Shorewood is committed to providing residents quality public services, a
healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial
management through effective, efficient, and visionary leadership. Page 1
City of Shorewood Licensing and Permit
Analysis and Report
Purpose
This report will outline the various non-building permits and licenses the city issues and the statutory
authority for the permit or license. We will discuss the purpose of the license, the cost of the license,
and the estimated annual revenue from the license or permit. Finally, we will address any what, if any,
changes or modifications might be necessary.
Dog Licensing
Minnesota Statute Chapter 412.221 subdivison 21 provides specific authority to city councils to enact
ordinances to regulate animals.
“412.221 Subd 21. Animals. The council shall have the power by ordinance to regulate
the keeping of animals, to restrain their running at large, to authorize their impounding
and sale or summary destruction, and to establish pounds, and to license and regulate
riding academies.”
Purpose for License: the licensing program appears to have its roots in ensuring domestic animals
received vaccination against rabies and also to provide a method of identification should the animal run
off.
Financial Implication: the city issues approximately 350 dog licenses each year at $10.00 per license for
approximately $3,500 in revenue. Starting late last year, we started offering the purchase of dog license
on our website. We do not know if this new option will increase the number of licenses.
Discussion: several communities repealed their dog license ordinance and replaced them with a
requirement that all dogs have rabies tags, owner information, and identification chip. One of the main
reasons for repeal is the fee charged does not cover the administration cost of the program and a
majority of the dog owners did not receive a license. Most recently, Golden Valley reconsidered their
license program and, based on a couple of residents, opted to keep the program and increase the fee.
The rational for keeping the license is the residents who wanted to keep the program used the
Minneapolis Dog Park and all dogs using the dog park are required to have a license.
The other item to consider is including other animals, such as farm animals. Several communities
prohibit “livestock” such as cows, goats, etc, but allow chickens, geese, ducks, etc. At this time, the city
does not have any restriction on the type or number of animals a resident can keep.
Kennel Licensing
Minnesota Statute 347.31 to 347.40 covers kennel licenses and gives specific authority to license
kennels to the Minnesota Board of Animal Health. It appears that cities do not possess the authority to
also license kennels.
Purpose for License: the city requires residents who have more than three dogs to obtain a kennel
license. I am not sure why the city adopted this requirement other than to provide a means to allow
residents to keep multiple dogs. However, the dog license ordinance does not restrict the number of
dogs per household.
Financial Implications: the initial cost for a kennel license is $25.00 with a $10.00 annual renewal. This is
in addition to the individual dog license. The city only has about 12 few of these licenses with total
revenue of approximately $120.
Discussion: Based on staff’s interpretation of Statute, the city does not have statutory authority to
license or regulate kennels and as such, the license needs modification or repeal. One simple
amendment is to change the title from kennel license to multiple dog (or animal) permit.
Stable Permit
The city requires residents who wish to keep a stable in the community to obtain a stable license. In
reviewing the statutes, I could not find any legislation permitting or prohibiting this activity.
Purpose for the Permit: I am not entirely sure why the city decided to require residents who wish to
keep a horse to obtain a permit. My guess is the city wanted to ensure the size of the property was
adequate to support a grazing animal such as a horse. The ordinance provides size requirements needed
to stable a horse.
Financial Implications: the permit fee is $25 annually and is to cover the cost for staff to conduct a site
visit to ensure the property meets minimum size requirements and for the animal control officer to
check on the condition of the horse. Staff indicates we handle approximately 3 permits so the annual
revenue is $75.00.
Discussion: the city does not have many of these left and staff’s view is that the boarding of horses in
the city may not be the most appropriate activity. The question is if the Council wishes to continue to
allow the stabling of a horse in the City.
Garbage Haulers
I did not find reference in state statute regarding the licensing of garbage haulers.
Purpose: we license haulers to control who collects waste in the city and to ensure waste is collected on
the days and times specified. The city does not have provisions on the number of trucks or the number
of haulers doing business in the city. The license provides the city leverage when dealing with a hauler
who violates the collection day, time, or other provision.
Financial Implications: the base license is $50.00 and $25.00 for each truck that collects in the city.
Presumably, the fee partially offsets the damage the trucks do to the roads in the city as well as the
administration of the program.
Discussion: there are several considerations and issues present in this particular topic. Recently the
council discussed organics and yard waste collection. Additionally, the council considered the issue of
curbside collection for spring clean-up.
Presently, the ordinance allows any waste hauler who wants to operate in the city to obtain a license to
collect mixed municipal solid waste. The city contracts with a single provider to handle comingled
recyclables and will pilot an organics collection program with yet another hauler. There is no restriction
on the number of haulers.
Staff, in response to Council direction at the June 13 meeting, is preparing information on a more
structured refuse collection system.
Tree Trimmers
Minnesota Statute 18G.07 requires all tree care and tree trimming companies to register with the
Minnesota Commissioner of Agriculture and to pay an annual $25.00 registration fee. Further, it is
unlawful for any tree care or tree trimming company to advertise their services in Minnesota without
State registration.
Purpose: we require the licensing of tree trimmers and tree care companies to ensure the company has
proper insurance.
Financial Implications: the city assesses a $30.00 license fee. 20 companies obtained a license in 2010
for total revenue of $600.00.
Discussion: since this is a duplicative license, does the city wish to continue this license requirement.
Fireworks
Minnesota statute 624.20(d) gives cities the authority to license the sale of fireworks. The statute limits
the fee the city can charge to $100 for incidental retail sales and no more than $350.00 for a fireworks
store.
Purpose: the city requires the license to ensure the activity is taking place in a properly zoned area. The
fire district provides an inspection as well.
Financial Implications: the license fee is $100. I believe we only two locations that sell fireworks so our
revenue is approximately $200 each year.
Discussion: the license we require is for the incidental retail sales. Part of the inspection process
involves the fire marshal. As part of this fee is for the fire marshal inspection, the council may wish to
consider reimbursing the EFD for their services.
Lawn Fertilizer Applications
The Minnesota Department of Agriculture regulates the manufacture and application of fertilizers under
the guidelines of Minnesota Statute 18C. Information from the MDA indicates that all persons who apply
fertilizer for hire must obtain a license from the Minnesota Department of Agriculture. This license is
required for any application, including application to lawns, plants, and interior landscapes. The
applicator is supposed to provide the customer a record stating 1) T
he net weight, which may be
listed as the total net weight applied or the net weight applied per unit treated; 2) the guaranteed
analysis; 3) your name and address; 4) the number of units treated in square feet, acres, or
another unit of measure; and 5) a derivative statement.
Purpose
: the reason for the license is to ensure the safety and protection of the lakes and water
resources.
Financial Implications
: the city charges a license fee of $30.00 and we license approximately
8 per year for about $240.00.
: MS 18C preempts local ordinances that “… in any other way prohibit or regulate, the
Discussion
distribution, sale, handling, use, or application of phosphorous fertilizers and phosphorous fertilizer
products that are applied or will be applied to land used for growing crops or any other agricultural use.
(b) Except as specifically provided in this chapter, a local unit of government may not adopt or enforce
any ordinance that prohibits or regulates the registration, labeling, distribution, sale, handling, use,
application, or disposal of turf fertilizer containing phosphorus.”
Based on the preemption in statute, it appears we need to repeal our licensing ordinance.
Solicitors/Canvassers
Minnesota covers peddlers/transient merchants and solicitors in two statutes: MS 329.15 provides
authority for cities to license and regulate transient merchants and MS 325G.12 to 325G.13 covers
solicitations. 325G.13 requires the solicitor, seller, merchant to provide a clear disclosure to the
resident, show picture ID, indicate the company represented, etc, before the sales pitch. This does not
apply to nonprofit organizations.
Purpose: the purpose is to try to keep those individuals who might be using the transient merchant,
non-profit solicitor, canvasser, etc, as a cover to conduct reconnaissance of the neighborhood for
nefarious purposes.
Financial Considerations: the individual is required to pay a $50.00 fee, which covers the administration
of the license and the background check.
Discussion: one of the issues staff faces is the time necessary for the processing of the application. In
many instances, the group submits the application the same week they plan to conduct their
solicitations and staff does not have time to get completed background checks from the police
department. The city also does not require a license from companies such as Schwan’s that might stop
at a customer’s home and, if the neighbor is out initiate sales. In this case, one could argue that the
Schwan’s driver needs the license.
We also received information from Chief Litsey regarding background checks and we may need to
amend the ordinance to include appropriate language to allow the city to continue using the SLMPD for
the background check.
Lawful Gambling
Minnesota Statute, Chapter 349, and Minnesota Rule, Chapter 7861 cover lawful gambling in the State.
Pursuant to statue and rule, the state licenses all gambling operations and cities provide their approval.
A new change to the statute now prohibits cities from assessing a fee.
Purpose: the city enacted an ordinance requiring the licensing of lawful gambling activities under state
statute to provide some control over the operations and to ensure the games were carried out in a legal
manner as required by the state.
Financial Considerations: the city assesses a fee of $50.00 for temporary licenses and $100.00 for a bi-
annual license.
Discussion: since the statute changed, the city needs to amend the ordinance to remove the fee
requirement. One question is if the city council wishes to require a specific percentage of the pull-tab
revenue to be used for Shorewood activities.
Liquor License
Minnesota Statute, Chapter 340A, and Minnesota Rules Chapter 7515 cover liquor licensing. Specifically,
MS 340A.403 and MS 340A.404 provide authority for cities to license on and off-sale of non-intoxicating
and intoxicating liquor.
Purpose: the city requires this license to ensure liquor establishments operate in compliance with state
statute and local zoning as well as to provide the city leverage should the establishment violate state
statute in the service or sale of alcohol.
Financial Considerations: license fees range from $25.00 for a temporary 3.2 malt liquor license to
$7,500 for intoxicating on-sale license. In addition to the license fee, we charge an investigation fee of
$500 for a new license and $350 for renewal.
Discussion: staff feels this license is appropriate and the fee is adequate to cover our administrative
requirements.
Tobacco License
Minnesota statute 461.12 authorizes cities to adopt licensing requirements for the sale of tobacco and
assess a fee to cover the enforcement costs associated with the license. The statute requires counties to
adopt an ordinance licensing tobacco sales and to enforce the ordinance in unincorporated areas or in
cities that do not adopt a licensing ordinance. This includes enforcement.
Purpose: the city adopted a licensing requirement for tobacco under the statute to ensure businesses
selling tobacco do so in a legal manner and to provide a modicum of local control.
Financial Considerations: the license fee is $250.00. Further, if a business violates the ordinance, the
city assesses an administrative fine that escalates with each successive violation. The fine starts at
$75.00 and caps at $250.00. In addition, statute provides a fine of $50.00 for the individual. There are
three license holders in Shorewood for $750 in revenue.
Discussion: the question is if the city desires to continue to license sellers of tobacco products. Issuing
the license requires the city to conduct compliance checks, which the SLMPD conducts. The current
license fee helps offset the cost of the compliance checks. If the city did not have the license, the
requirement to license falls to the County as does the enforcement.
Massage Therapist
Minnesota statute 146 covers “unlicensed complementary and alternative health care” that include
massage and body work professionals. This statute created the Office of Unlicensed complementary and
alternative health care practitioners. This office regulates these providers and provides requirements
each individual must meet. There is no mention of local licensing; however, if a local unit of government
takes action to revoke, suspend, restrict, condition, etc, the activities of an unlicensed complementary
and alternative health care practitioner, the local government must report that to the office.
Purpose: the city began to license individual providers of massage and body work services to ensure the
location met zoning requirements.
Financial Considerations: the city requires each individual practitioner to apply for a $50.00 license and
undergo an initial background check with a fee of $100.00. The background check is a staff review of the
paperwork submitted including a check of the educational requirements. The city issued 14 licenses in
2010.
Discussion: this is the license that generated this overall review. The owner of a massage therapy
business requested the city consider alternatives to the current structure such as pro rating the annual
$50.00 fee. The Council took action to reduce the annual individual license fee from $150 to $50. Staff
recommends keeping some type of license regarding massage therapy to ensure the location of the
business meets zoning requirements. The question is if each individual practitioner needs to be licensed,
or if a “business” license is more appropriate. The other issue is the background fee. We charge a $50.00
license fee for solicitors and that includes the background check completed by the SLMPD and in this
case, we require a $100.00 background investigation fee and the SLMPD is not used. Should this fee be
lowered? Or should the solicitation fee increased? Or should the fee be eliminated?
Adult Entertainment Establishment
Minnesota Statute 617.242 covers the regulation of adult oriented businesses. Subdivision 7 allows local
governments to regulate these types of businesses. The local government is authorized to enact
regulations that are more restrictive. If the local jurisdiction does not enact regulations, then the statute
applies.
Purpose: the city adopted the ordinance on adult entertainment establishments to control the location
of these types of businesses and to ensure compliance with zoning.
Financial Considerations: there are no adult entertainment establishments in the city. The license fee
for such an establishment is $1,675 + $50.00 per entertainment booth if so equipped. There is also a
$500.00 background fee.
Discussion: staff recommends keeping this license in place.
Special Events Permit
Purpose: the city requires residents who plan to hold large events at their home to complete a permit so
the city, police department, and fire district are aware of the gathering and can make sure vehicle
parking does not interfere with access or make it difficult for emergency vehicles. This permit is also
used by events such as Tour de Tonka, EFD annual fund raising event, Knewtson 5K run, etc.
The SLMPD, EFD, Planning Director, and City Administrator review sign-off on the permit and attach any
necessary requirements such as parking, traffic control, etc.
Financial Considerations: the permit and application process are free.
Discussion: the City receives quite a few of these each year. Staff time consists of obtaining the
necessary signatures for the form.
Parking
Purpose: a permit allowing residents to park along a roadway designated “No Parking.” This was done
specifically for residents of Christmas Lake Road, Christmas Lane, and Merry Lane.
Financial Considerations: the permit application is free; a small deposit is required for bags to cover the
No Parking signs.
Discussion: the City does not receive many of these requests.
Recreational Fire
The city provides this permit on behalf of the EFD. There is no cost to the city or the residents for this
permit. Discussion regarding keeping the permit or assessing a fee is a responsibility of the Fire District
Board.
Open Burning
The Excelsior Fire District regulates this activity. The city provides the permit application to residents on
behalf of the EFD. As with recreational fires, discussion regarding this permit and fees associated with it
are the purview of the EFD board.
Police and Fire False Alarms
Purpose: to put the responsibility for continued false alarms on the property causing the response and
use of resources.
Financial Considerations: the city assesses a fee of $100 for the third false alarm in a 12 month period
for police calls and a fee of $200 for the second false alarm in 12 months for fire response.
Discussion: the city does not receive a large amount of income through false alarms and most of the
false alarms are related to fire calls and not police calls. Consideration might be given by the Council to
forward false alarm revenue to the EFD since it is the EFD that experiences the cost associated with the
false alarm.
Rental Housing License
Purpose: to ensure tenants of rental housing units are provided housing that meets minimum habitable
standards and to establish a method for tenants to report problems so they can be corrected.
Financial Considerations: the City has several rental housing units. The units have a three year licensing
period and the license is $60.00 per unit. The Planning Director indicates that the current fee does not
cover the cost to administer the program and suggests raising the fee.
Discussion: staff is currently working on amended language adding safe drinking water to the list of
components required for a habitable structure. This will increase the cost to review as well as cost to the
property owner to test and possibly correct water systems that do not meet the requirements.