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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.