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11-19-1985 PCM cMINUTES HUTCHINSON PLANNING COMMISSION November 19, 1985 1. CALL TO ORDER The meeting was called to order by Chairman Roland Ebent at 7:30 p.m. with the following members present: Marlin Torgerson, Elsa Young, Don Erickson, Larry Romo, Thomas Lyke, Shu -Mei Hwang and Chairman Ebent. Members absent: None. Also present: City Administrator Gary D. Plotz, Director of Engineering Marlow Priebe, Building Official Homer Pittman, Assistant Building Official James Marka, Fire Marshal George Field, Fire Chief Orlin Henke and City Attorney James Schaefer. 2. MINUTES Mr. Erickson made a motion to approve the minutes of the regular meeting dated Tuesday, October 15, 1985, as presented. Seconded by Mr. Hwang, the motion carried unanimously. 3. PUBLIC HEARINGS (a) CONSIDERATION OF RENTAL HOUSING CODE ORDINANCE Chairman Ebent opened the hearing at 7:30 p.m. with the reading of publication #3482, as published in the Hutchinson Leader on Thursday, November 7, 1985. The purpose of the hearing was to consider a rental dwelling registration code ordinance as proposed by City staff. City Administrator Plotz stated that this public hearing was not required but voluntary on the part of the Planning Commission with the sincere intent of getting public input. He explained that this proposal had been in process for two or three years, and that staff had researched what other communities the size of Hutchinson had been doing. The proposed ordinance is a direct result of that research. City Administrator Plotz continued by responding to concerns that had been raised since the public had been made aware of the proposal. In response to a comment that the purpose of the proposal was to raise revenue for the City, he stated that this was a user -based ordinance, much like a building permit. Some fees had been established, but at this point, those fees could be looked at and reviewed. In response to a comment that this was a prelude to some type of rent control, Administrator Plotz stated that it was not. He didn't think there was any type of rent control in the State of Minnesota. In response to a comment made that this proposal was an attempt to get more staff, Administrator Plotz stated that the Building Department felt that they could carry out the registration and inspection process without adding any staff. Fire Marshal George Field made a presentation regarding the ordinance. He reviewed the basic requirements of the Uniform Building Code, giving examples of types of nonconformance and remedies to those hazards. He stated that the main objective of the staff in making this proposal is to provide a tool that will enable them to apply the code among all the owners of property as well as safely protect the renters. At this time, the building department can only act on complaints, and are receiving 50-60 complaints per year. He noted the biggest problem from a safety standpoint is when a homeowner converts a single-family dwelling into rental units without the necessary building permit. They may not be aware of the safety standards and the city staff has no way of knowing they are in violation. The result is a often a substandard unit, in terms of safety features. Fire Marshal Field sited egress windows in basement bedrooms as being one of the most common and dangerous of the violations. Building Official Pittman explained the basis for the fee schedule that has been established, comparing it to the one in Northfield, Minnesota. He stated that at this point, it was entirely negotiable. He also explained the procedure they follow when they receive a complaint, noting that a reasonable time frame is established for the property owner to correct a violation. If the situation is life threatening, the renter is advised not to remain in the unit until it is corrected. The renter then makes—iis own decision. Sondra Slyter, 565 Peterson Circle, landlord, asked why the ordinance discriminates against the non -homesteaded property. Fire Marshal Field responded that "non -homestead" should not be on the form and that the proposal is for all rental housing. Ms. Slyter asked why single-family, owner -occupied homes -are not going to be inspected. Fire Marshal Field responded that there are seldom complaints against owner -occupied single-family homes. He added that renters don't have the opportunity to make changes. He also stated that in some cases, people who want to buy a home have contacted the City and the home was inspected before they bought it. New construction meets the codes. Mr. Richard Peterson, Valley View Apartments, why displeased renters can't just move out. Fire Marshal Field responded that they have that option; however, their choices are very limited. When faced with an unsafe situation or not having a place to live, they most often choose the unsafe situation. He added that many renters aren't aware of the hazards. Mr. Wayne Kenning, 705 Milwaukee Ave., stated that there are, at present, 45 rental units advertised in the local paper, and that he doesn't believe there is a shortage of rental units. Mr. Peterson asked how many of the complaints pertain to multiple units. 2 Fire Marhsal Field responded that the majority of the calls are on duplexes. Mr. James McClure, 1301 Campbell Lane asked what the most common violation is. Fire Marshal Field responded that egress windows is one of the most common. Mr. Marlin Torgerson asked Mr. Field to go through the procedure they follow upon receiving a complaint. Mr. Field explained that upon receiving a complaint, they first discuss the problem with the property owner. Many times, the problem can be corrected in a couple of hours (smoke detector, for example). If the situation is life threatening, a letter sent to the property owner will say that the person should not occupy the facility. Then a realistic time frame for the owner to comply is determined. Often it is 30 days - the situation really dictates how long is given. Mr. Torgerson asked if the unit is reinspected. Mr. Field responded that it is. He further stated they have sited people for noncompliance. Any violation is a misdemeanor. It 's up to the judge to decide - up to $700 or 90 days in jail. That seldom happens. Most people comply. Mr. Jim Marka, Assistant Building Official, stated that one of the problems is homeowners moving students into their basements. Another is poor mobile homes. He stated that they have no control over these situations unless they receive a complaint. He further stressed that all that is required is the minimum safety standards. Ms. Slyter stated that she thought the city should go from one end of town all the way through -- that the same problems exist in some private homes. Mr. Pittman responded that there is nothing they can do about single-family owner occupied homes, unless the problem is visibly objectionable or unless they receive a complaint. City Attorney Schaefer further explained that the difference lies in the fact that the property owner who chooses to rent is now offering a space to the public, making the operation a business, over which the State has the right and duty to regulate. Mr. Romo stated that the purpose of the hearing is not to determine whether or not we are going to enforce safety, but simply how it is going to be enforced. Ms. Gloria Dansereau, 414 Larson St., homeowner and landlord, asked how the City will prevent others from remodeling their homes without building permits. She further asked how the City will find violators and how will they get the new ones to register. 3 Fire Marshal Field stated that registering would be the responsibility of the property owner. A notice requiring the registration would be provided once a year. Mr. Frank Fay, 970 Rolling Greens Lane, homeowner and landlord, asked how many of the complaints cannot be resolved without this rental registration? He also asked how many are servious, life- threatening types of problems as opposed to complaints about plumbing problems. He then asked how many fires have been directly caused by these problems. Mr. Marka responded that half of the complaints involve a life- threatening violation. Usually there are many things found, upon inspection. Fire Chief Orlin (Butch) Henke responded that since he has been Fire Chief, there have been at least 3, and probably 5 (fires caused by these problems) in residential rental property. Mr. Fay asked how much government we can afford in the City of Hutchinson. He further stated that he had no complaint with what the City stands to do, but that we have to look at the costs involved - to the property owner, the renter and the City. He stated that there would be additional cost to the City, noting Northfield's intent to raise their fees after having an ordinance for only a short time. Mr. Fay asked if most of the problems are in a minority of apartments in Hutchinson. He said that in the time that he has been in Hutchinson, the housing and quality of living standards are much improved. For the investor, he continued, non -homestead taxes have tripled and insurance costs have gone even higher. In Hutchinson a landlord cannot get the high rents. There is negative cash flow property - many just break even. He stated that when talking about resale, we are talking about losses of thousands of dollars. Main Street properties have been hit with off-street parking expenses as high as $20,000 (in his own case). He noted the cost of sprinkler systems. (With these costs) Mr. Fay continued, everybody on Main Street will be forced out. Mr. Fay added that except for July through September, there is not a great demand for rental property. Renters have the right to move. Mr. Fay stated that he is against rental registration, based on the cost, and that he can't afford much more government. Mr. Peterson stated that he is against this proposed ordinance. Based on the figures given, he has determined that with complaints at about the same rate, most problems should be corrected in two to three years. Fire Marshal Field responded that irregardless of the violations that have been corrected, they are still receiving 50 - 60 complaints per year. He further stated, that if these rental units comply with the standards as they are supposed to, the expense should not be so ►0 great. Mr. Peterson stated that he represents McGannon and has sent a letter to them advising them to sell or lock up the apartments and leave them empty. Mr. John Tapio, 635 Glen St. S., landlord, stated that in this last year costs have almost doubled. He stated that even though the fee may be proposed as $10 now, next year it may be increased to $100. Discussion followed regarding particular requirements of the code and expense involved in correcting violations - especially, the size of egress windows, the cost of fire doors, the problem of separation (walls and doors), etc. Mr. Mike Maiers, 324 Boulder, stated his opposition to the proposed ordinance. He asked if the City has the right to inspect property after receiving a complaint, without the proposed Ordinance. Building Official Pittman responded that they do. Mr. Maiers then asked why the Ordinance is necessary. City Attorney Schaefer commented that many tenants don't know what the standards are. Judy Kopesky, 430 Shady Ridge Road, landlord, suggested that if the problem is with vocational students that are renting, they should be educated. She also asked that if there are problems discovered in a building, can it still be rented. She also stated her opposition to the ordinance. She stated that the insurance company inspects each apartment and if it satisfies the insurance agent, it should certainly be up to code. She also stated that if the City is going to come in to inspect, the property owner should be notified and should be there during the inspection. She further stated that if this ordinance is necessary, there should be no fee at all. City Attorney Schaefer commented that this proposed ordinance does not require anything that is not already required by State law, but it serves to provide a way to determine that the landlord is already providing what the law says he should provide. Meg Mielke, Student Personnel Specialist at the Hutchinson Vocational -Techinical Institute, stated that it is her job to maintain housing for the Vo -tech students, and that she has not had any complaints from students regarding safety concerns. She further stated that we should make a point to educate the students about what should be provided in terms of safe housing. Bob Stearns, 375 1st Ave. NW, Mayor, stated that he understands staff's interest in this subject as they are charged with enforcing State and City laws and it is their responsibility. He stated that this is an idea to work towards alleviating some of these problems. He noted that he doesn't want government prying into private lives any more than they already do. He then stated his opposition to the 5 proposed ordinance, but added that we have to understand staff's problem. He stated that there are some students living in unsafe conditions and asked if we we have to wait for a fire to kill a couple of people (before something is done). Mayor Stearns then stated that this ordinance may not be the way to go, but there might be something else we can do. He asked the audience if they could come up with some other ideas. Larry Wendorff, Rt. 3, landlord, stated that he does not want to see government meddling in our investments. Taxes are going to continue to go up with the farm situation the way it is. He stated that if the costs get any worse, he is going to get rid of everything, and he doesn't think this is what we want to happen. City Attorney Schaefer noted that this is not just to protect renters, but also landlords. Landlords should be thinking about making improvements to bring their units into compliance even if the ordinance is not adopted. Jim McClure asked about what happens when the uniform building code changes. He asked if windows put in according to code in 1980 will be in compliance if the code in 1985 requires larger windows. After discussion, it was the consensus of staff that they would be "grandfathered in" if they complied when the structure was built. Marvin Wil lhite commented that if the City can already inspect, the ordinance should not be necessary. Director Priebe stated that the ordinance would provide a method of getting a handle on the rental units in the City so records can be maintained. Mr. McClure stated that he thought a list of the most basic requirements should be provided, so that people can understand what is required. John Tapio asked why a 7 -unit building was going to be inspected more than once. He also stated his opposition to the proposed ordinance. Ron Horswell, Rt. 3, stated that other communities may have rental registration, but the real estate taxes are lower there and they can generate higher rental incomes. He stated this ordinance would force people to sell. COMMENTS FROM THE PLANNING COMMISSION: Marlin Torgerson stated that he is not completely satisfied with this method. He stated he would like to more input, that he is against more government, and that he doesn't know how the City can enforce the ordinance. He further stated that he is not satisfied with this (proposed ordinance) right now, but that he can understand why staff feels a need for it. Elsa Young stated that she felt the idea of informing the Vo -Tech students, as they are probably the most endangered, is an excellent idea. She added that it might be better to try other suggestions before we try to levy some of these rules. She noted that you can do a lot more with a little positive persuasion than by laying down more rules and regulations. Don Erickson stated that he appreciated the input. Noting the figures of 1100 rental units - 775 (new construction), he stated that we're basically down to 350 possible ones - with 60 complaints and 30 of those life threatening. He would like more information and input on how to correct those problems. He is in favor of educating the renters and the landowners, as well as the Vo -Tech students, stating that it would be the best return on our investment. Larry Romo stated that he cannot support the ordinance as it is proposed. He feels that it is a big jump - from nothing to everything. He would prefer to take it in steps, with education - possibly public notice of penalties. He further stated that it would cause too much of an economic problem to too many people. Thomas Lyke stated that he would like to see the educational effect on the Vo -Tech. He suggested that we see if the life -safety complaints diminish over a year, as that seems to be the biggest issue. Shu -Mei Hwang asked if the City passed the proposed Ordinance, would the City assume more liability. City Attorney Schaefer responded that the only way the City would be liable would be if they inspected a property, found a violation, but issued the certificate anyway. Mr. Hwang questioned the need for the ordinance. He stated he thinks we should look at the protection of the tenants. He recommends that the City provide a service through the Hutchinson Leader or the Vo Tech, letting people know that they can ask the city inspect if they suspect a problem. There could still be a registration just to know where apartments are. Chairman Roland Ebent stated that he is basically in agreement with the concept, but that not the method in which it is being obtained. He noted that the Planning Commission had asked staff to look into this and they have been working on it for some time. He noted that public sentiment seems to be that it isn't wanted or needed. He suggested that when a property is conveyed an inspection might be done, and when a person buys property, the purchaser should be told of what needs to be done to bring it up to safety standards. Judy Kopesky suggested that something be put in the rental column of the newspaper to let renters know what is available to them, and added that the Chamber of Commerce may want to put out a packet of educational materials regarding this subject. It was also suggested that real estate people become informed and 7 pass the information on to their clients. Mr. Romo made a motion to close the hearing. The motion was seconded by Mrs. Young. Mr. Erickson commented that he thinks education is the direction we should take. The motion carried unanimously and the hearing was closed at 9:22 p.m. Mr. Torgerson made a motion to ask staff to come back with some other ideas based on what was heard from the public. The motion was seconded by Mrs. Young. Mr. Romo commented that the new proposal should be given the same publicity by way of a public notice so people will be aware of it. The motion carried unanimously. Recess: Chairman Ebent called for a 5 minute recess. (b) CONSIDERATION OF REZONING AS SUBMITTED BY LARRY WENDORFF Chairman Ebent opened the hearing at 9:30 p.m. with the reading of publication #3481 as published in the Hutchinson Leader on Thursday, November 7, 1985. The request is to rezone property located at 771-775 Dale Street from R-2 to R-3 to allow a 4-plex on the property. City Attorney Schaefer stated that there are restrictive covenants on this property as recorded with the McLeod County Recorder. Among the convenants it is stipulated there there shall be nothing other than single-family dwellings in the Southview Subdivision. He further stated that the covenants did not affect the rezoning that was requested. If someone who owns property in the Southview Subdivision objects to the use, he/she would have to pursue the matter privately. Continuing to use the property as something other than a single-family dwelling would be at Mr. Wendorff's own risk. Chairman Ebent asked if all the property owners in the Southview Subdivision should be notified of the rezoning request. City Attorney Schaefer responded that it would not be a legal requirement. Director Priebe stated that there has been a duplex on that property since at least 1967. Mr. Wendorff stated that he had it made into a 4-plex in 1978, unaware of the covenants or the zoning requirement. He's asking for the rezoning so that he can put in off-street parking and continue operating it as a 4-plex. He intends to make all the necessary changes as required by the Building Official. He spoke to the neighboring property owners and they have no objection. Mr. Hwang asked if business and professional offices could go there if rezoned. City Attorney Schaefer responded that anything that is allowed in an R-3 would be permitted once it is rezoned, noting that most things not already allowed in an R-2 require a conditional use permit. 0 (c) (d) After discussion, Mr. Torgerson made a motion to close the hearing. Seconded by Mrs. Young, the motion carried unanimously and the hearing was closed at 9:42 p.m. Mr. Torgerson made a motion to recommend to City Council approval to rezone to R-3 as requested. Seconded by Mr. Romo, the motion carried, with Mr. Hwang and Mr. Erickson voting "no". CONSIDERATION OF CONDITIONAL USE PERMIT AS REQUESTED BY PURE CULTURE PRODUCTS Chairman Ebent opened the public hearing at 9:45 p.m. with the reading of publication # 3486 as published in the Hutchinson Leader on Thursday, November 7, 1985. The request is for a conditional use permit to allow the the installation of an 8" fire water main with two fire hose stations, deluge rail car system and deluge fermentor system, new rail car unloading bed with catch basin and sump, new tank truck unloading slab with safety stations and compressor house and new 8' chain link fence to enclose and protect new property and equipment. Building Official Pittman explained that the conditional use permit is necessary because it is located in an IC -1 zone. The new installations will be in the recently vacated street area. Mr. Torgerson made a motion to close the public hearing. Seconded by Mrs. Young, the motion carried unanimously and the hearing was closed at 9:46 p.m. Mr. Romo made a motion to recommend to City Council approval of the Conditional Use Permit as requested. Seconded by Mr. Hwang, the motion carried unanimously. CONSIDERATION OF PRELIMINARY AND FINAL PLAT OF "HELLAND'S SEVENTH ADDITION" AS SUBMITTED BY TYRONE HELLAND Chairman Ebent opened the public hearing with the reading of publication #3485 as published in the Hutchinson Leader on Thursday, November 7, 1985. The request is for approval of a preliminary and final plat to be known as "Helland's Seventh Addition." Mr. Jeff Hart, 707 Shady Ridge Road, had some concerns about the map that he received on his notice. (It was determined the map was correct.) Mr. Charles Becker, 705 Shady Ridge Road was also present to ask about how the plat is zoned and what type of construction is allowed. Director Preibe responded that a portion is R-1 and another portion is R-2. Construction must meet ordinance requirements, noting we cannot discriminate against manufactured homes if they meet the requirements. Director Priebe also explained that this is part of an overall plan that had been approved earlier. He also submitted his engineer's report regarding subdivision agreement, improvements and parks and playground contribution. Mr. Hwang made a motion to close the hearing. Seconded by Mr. Torgerson, the motion carried unanimously and the hearing was 9 closed at 9:50 p.m. Mr. Torgerson made a motion to recommend to City Council approval of the plat as presented. Seconded by Mr. Hwang, the motion carried unanimously. (e) CONSDIERATION OF AMENDMENTS TO SUBDIVISION ORDINANCE 4466 Chairman Ebent opened the public hearing at 9:50 p.m., with the reading of publication #3483 as published in the Hutchinson Leader on Thursday, November 7, 1985. The amendments are part of an overall review done by the Planning Commission over the past several months. Mr. Torgerson made a motion to close the public hearing. Seconded by Mr. Erickson, the motion carried unanimously and the hearing was closed at 9:51 p.m. Mr. Romo made a motion to recommend to City Council approval of the amendments as proposed. Seconded by Mr. Hwang, the motion carried unanimously. (f) CONSIDERATION OF AMENDMENT TO ZONING ORDINANCE #464, SECTION 6.09 Chairman Ebent opened the public hearing at 9:52 p.m. with the reading of publication #3484 as published in the Hutchinson Leader on Thursday, November 7, 1985. The proposed amendment deletes the fee schedule from the ordinance and allows the City Council to change the fees by resolution rather than by amending the ordinance each time a fee is changed. Mr. Romo made a motion to close the hearing. Seconded by Mr. Torgerson, the motion carried unanimously and the hearing was closed at 9:55 p.m. Mr. Hwang made a motion to recommend to City Council approval of the amendment as proposed. Seconded by Mr. Torgerson, the motion carried unanimously. 4. OLD BUSINESS None. 5. NEW BUSINESS None. 6. ADJOURNMENT There being no further business, the meeting was adjourned at 10:15 p.m. 10