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Home My WebLink About2015-07-15 PACKET 08.A. REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 7/15/15 , �y PREPARED BY: Community Development Jennifer Levitt ORIGINATING DEPARTMENT STAFF AUTHOR * * * * * * * * * * * * * * * * * * * * * * * � * * * * * * * * * * * * * * * * * * * * * * * * COUNCIL ACTION REQUEST: Consider adopting the resolution denying the rental license at 8850 82nd Street South. STAFF RECOMMENDATION: Approve the request. BUDGET IMPLICATION: $N/A $N/A N/A BUDGETED AMOUNT ACTUAL AMOUNT FUNDING SOURCE ADVISORY COMMISSION ACTION: DATE REVIEWED APPROVED DENIED ❑ PLANNING ❑ ❑ ❑ ❑ PUBLIC SAFETY ❑ ❑ ❑ ❑ PUBLIC WORKS ❑ ❑ ❑ ❑ PARKS AND RECREATION ❑ ❑ ❑ ❑ HUMAN SERVICES/RIGHTS ❑ ❑ ❑ ❑ ECONOMIC DEV. AUTHORITY ❑ ❑ ❑ ❑ ❑ ❑ ❑ SUPPORTING DOCUMENTS: � MEMO/LETTER: Memo from Emily Schmitz dated 7/10/15 � RESOLUTION: Draft ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ❑ OTHER: ADMINISTRATOR'S COMMENTS: � , � � ��/o /� City Administrator Date * * * � * * * * * * * * * * * * * * * * * * � * * * * * * * * * * * * * * * * * * � * * * * * COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER Cottage / Grove �here Pride andpKosperity Meet TO: Honorable Mayor and City Council Craig Woolery, Interim City Administrator FROM: Emily Schmitz, Code Enforcement Officer DATE: July 10, 2015 RE: Rental License Denial for 8850 82nd Street South Background The property at 8850 82nd Street South is owned by Linda and Roderick Lehrke and has been managed as a rental property by Derek and Autumn Lehrke since 2013.A rental license was secured in 2013 and 2014. Discussion Notices via mail and email were sent to the Lehrkes beginning December 3, 2014 through February 5, 2015 requiring renewal of the rental license for the above mentioned property. The application and fee were submitted to the City on February 10, 2015. The required inspection was conducted on March 4, 2015, and four corrections were noted. Beginning on March 4, 2015, email notices were sent requiring that the corrections be addressed and a re-inspection be conducted to secure the required rental license. A final notice was sent via email as well as US Mail on March 27, 2015, listing the items requiring correction and a final deadline of April 6, 2015, for completion of the required re-inspection. The required re-inspection was not conducted by the deadline date of April 6, 2015. A Notice of Public Hearing was sent to Autumn and Derek Lehrke as well as Roderick and Linda Lehrke on May 4, 2015, with a deadline of May 22, 2015 to either appeal or bring the property into compliance with city codes to secure the required license. An appeal was received via email by Mr. LaBrosse on May 12, 2015, from Mr. Lehrke. Ryan Schroeder, then the City Administrator, responded with a letter dated May 18, 2015, explaining that the appeal would stay the proceedings of the Council hearing and that the case would be heard in front of an administrative law judge at the Office of Administrative Hearings. It was noted again in this letter that if the property was brought into compliance by May 22, 2015, no hearing would be required. The property remained non-compliant on the May 22, 2015 deadline. A hearing was held on May 28, 2015, which re-affirmed the Compliance Order set forth in the Inspection Report dated March 3, 2015. The findings of facts in the matter by the administrative law judge are attached for your reference. Honorable Mayor, City Council, and Craig Woolery Rental License Denial for 8850 82nd Street South July 10, 2015 Page 2 of 2 A final notice was sent to Mr. and Mrs. Lehrke on June 19, 2015, with the Interim City Administrator's intent to affirm the housing official's recommendation to deny the rental license and put the matter before the City Council if the property was not in compliance and inspected by July 9, 2015 at 4:00 p.m. Mr. and Mrs. Lehrke have failed to have the required re-inspection conducted to secure a rental license by the final deadline given. Recommendation Recommend revocation of the rental license for the property at 8850 82nd Street South until such time the property has been verified to be a habitable space. The applicant may then reapply to secure a rental license. RESOLUTION NO. 2015-XXX RESOLUTION MEMORIALIZING THE FINDINGS OF FACT AND REASONS FOR DENIAL RELATING TO THE RENTAL LICENSEAPPLICATION AT 8850 82ND STREET SOUTH, COTTAGE GROVE WHEREAS, Linda and Roderick Lehrke (the "Owners") is the owner of certain real property located at 6768 Meadow Grass Lane South, Cottage Grove (the "Property"); and WHEREAS, the Property has been managed as a rental property by Derek and Autumn Lehrke ("Managers"); and WHEREAS, on December 3, 2014, the City sent a notice to the rental property owner that a license application was due for the Property for the 2015 license year; and WHEREAS, a second renewal notice was sent on January 21, 2015 to the Managers who had yet to secure their rental license. The deadline for compliance was February 2, 2015. After the second notice was sent via mail on January 21 and the deadline passed, an email was sent on February 5, 2015 reminding that a rental license renewal and inspection are required. The application and fee were submitted to the City on February 10, 2015. The required inspection was conducted on March 4, 2015, and four corrections were noted. Beginning on March 4, 2015, email notices were sent requiring that the corrections be addressed and a re-inspection be conducted to secure the required rental license.A final notice was sent via email and US Mail on March 27, 2015, listing the items requiring correction and a final deadline of April 6, 2015, for completion of the required re-inspection. The required re-inspection was not conducted by the deadline date of April 6, 2015. A Notice of Public Hearing was sent to both the Managers and Owners on May 4, 2015, with a deadline of May 22, 2015, to either appeal or bring the property into compliance with city codes to secure the required license. An appeal was received via email on May 12, 2015. The City responded with a letter dated May 18, 2015, explaining that the appeal would stay the proceedings of the Council hearing and that the case would be heard in front of an administrative law judge at the Office of Administrative Hearings, noting that if the Property was brought into compliance by May 22, 2015, no hearing would be required. The Property remained non-compliant on the May 22 deadline, and hearing was held on May 28, 2015, which re-affirmed the Compliance Order set forth in the Inspection Report dated March 3, 2015. A final notice was sent to the Managers on June 19, 2015, with the City's intent to affirm the housing official's recommendation to deny the rental license and put the matter before the City Council if the property was not in compliance and inspected by July 9, 2015 at 4:00 p.m. The Managers failed to have the required re-inspection conducted by the final deadline; and WHEREAS, the Cottage Grove City Council (the "Council") held a hearing on the license application at its July 15, 2015, City Council meeting, during which the City presented its evidence and the Owner's representative was given an opportunity to be heard; and WHEREAS, the Council hereby makes the following findings of fact to support its motion to deny the license: Resolution No. 2015-XXX Page 2 FINDINGS OF FACT A. Rental license applications are due by December 31 for the following rental license year. B. The Managers and Owners failed to have the required re-inspection of the Property conducted and passed. C. Following a hearing, a license may be denied if one or more conditions of approval have � not been met, pursuant to City Code. REASONS FOR DENIAL 1. The Managers and Owners failed to have the required re-inspection of the Property con- ducted and passed, which is a violation of the City Code Title 9-7-8, Rental Licensing Procedure. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Cottage Grove, Washington County, Minnesota that based on the Findings of Fact, the rental license for the property located at 8850 82nd Street South is hereby denied. Passed this 15th day of July, 2015. Myron Bailey, Mayor Attest: Joe Fischbach, City Clerk �f�';fii h��,.� a3��.�ii�,i.�nu:l:n�l�'''`,e� _ °t � � �� 13��5� ��] �;� �'�� -�� U� � 5201� ��a-��i-��t'�••�`��y ��J.,.....��y�� `�ci,nn(S$Sl�,,,r NII�NES�T1� OFFrCE OF AI)M�i��ST�AT�'67E �I�AI�INGS b00 North Robezt Street Saint Paui,Mu�nesota 55101 MaiItng Address: Voice:(651)361-790D P.O.Bax 54620 T�'X: (651}357.-787& St.Paul,Minnesofa55164-D620 ��e �� 2�� Fa�c: (651)539-03DD Korir�e Land Cottage Gro�e City Attorney LeVan�er, Giller� & Mifler, P.A. 633 S Concord St Ste �400 South Sain� Pauf, MN 55075 Re: fn the Matfer of Derrick and�4�at�mn Lehrke OAH 'i0-6031-32535 Dear Ms. Land; Enclased and sen+ed upon you is the Administrati�e Law Judge`s FINDINGS OF FACT, CONCLUSIONS OF LAW, p►ND RECOMMENDATION in the abo�e-entit�ed matter. The official record, with the exceptior� of the recording of the hearing, is also �nclosed. If you would iike a capy of t�e r�cording, pfease contact fhe Office of Administrati�e Hearir�gs in writing, by telephone at 65'I-361-7870, or by e-mail at Kendra.mccauslan�@s�ate.mr�.us. The Office of Administrati�e Hearings` file in this matter is now cic�sed. - If you have any q�esfions, please cantact my legal assistant Kendra McCausland at (651} 36'1-7870 or kendra.mccausian�@sta�e.mn.us. Sir�cereEy, �� PERRY WILSON Administrative Law Judge PMW:kIm Enclosure cc: Autumr� and Derrick Lehrke � I , i � OAH 10-6031-32535 STATE OF MINNESOTA O�'FICE OF ADMINISTRATIVE HEARINGS FOR THE CITY OF C�TTAGE GROVE fn fhe Matter of Derrick and Autumn FfNDINGS OF FACT, �.ehr�Ce CONCLIJSI�NS OF LAW, �n�� R�coM�nEn�oAr�o� The above�entitled matter came on for a hearing befare Administrative Law Judge Pe�'ry Wilson on May 28, 2015 at the Office of Administrative Hearings in St. Paul, Mir�nesota. Autumn Lehrke anc� Derric�C Lehrke (Appellar�ts} a�peared on their own behalf and without counsel. Korine Land, City Attorney, appeared or� behalf af the city of Ca#tage Gro�e {Cify). STATEiVIENT OF THE ISSUE fs the Compliance Order issued by the City to Appellants based u�on an erroneous interpretation of fhe City Cade or upon a misstatement or mistake of fact? SUMMARY OF RECOMMEN�ATIUN T�e AdministratiWe Law Judge cancfudes that t�e Comp[iance �rder is based upon a correct interpretation of the Cify Code and is not based or� a misstatement or mistak� of fact. The Administra�ive Law Ju�ge recommends that the City Administrator AF�IRM the Campliance Order. Based upon �he evidence in the hearing record, the Admir�istra#i�e Law Judge makes the �ollowing FINDINGS O� �ACT 1. Appellants are the managers of a single-family r�ntal home located in th� C ity.� 2. On �ebruary 1d, 2015, App�llants fifed with the City an appficatian for rer�ewal af the rental licer�se for tF�e home.2 � Ex. 3. 2!d. 3. �n March 3, 20�5, the City"s building inspection di�ision conducted an inspectian o� #he property prior to relicensing as �equired by Title 9-7-8 of the City's Co�e.3 �. The ins�ector found four deficiencies in the property that were r�ot in com�liance w�fih Ci�y and Minnesofa ruies.4 These deficiencies were: a. No ground fault interrupter an out�et by basement wet bar sink; b. Screen miss��g from bedroom wind�w; c. Accumulated ice an air conditioner firom ieaking porch roof; d, Kifchen sink admiitance valve not code complian#. . 5. Appeilanfs' home was ir�specte� by fhe City in 2013 and the cortdi#ions identifie� as Cify Code vioEation in the March 3, 2015 �nspec�ion were not identified af that time.5 6. Appellants w�re notifisd of fhe inspection findings by e-mail dated March �4, 2015. They were advised that these deficiencies were to be corrected and re- inspection conducted by MarcFt 'i8, 2�15.6 � 7. T�e A�pelfants did not schedule a re-ir�spection by March 18, 2Q15.' Tha City sent a remind�r of tha re�inspection obligation ta Appellants by e-mail dated March 27, 20'!5.$ 8. In response to the March 27, 2015 reminder, App�llants requested, by e-mail, �hat they receive a physica! Ietter reciting the inspectior� findings and re- �nsp�ctian obligatians.9 9. The letter requested �y Appellants was maifed by the City on March 27, 2015.�0 The letter sets forth the defciencies found in the March �, 20�5 inspectior� and sets April 6, 2�1� as t�e deadline for App�llants to correct the four issues and sche��e a re-inspection of the hame.�� 10. On May 4, 2015, th� Ci#y sent A�pelfants a letter stating that b�cause the req�ired re-inspection was nat scheduled or perFormed, the matter of the rental iicense renewal woufd be referred to the Cottage Grove City Counci! �or possibfe deniaE of the �Fd. a Ex. 3. �Testimor�y of Robett LaBrossa. &!d. 'Test, of Ernily 5chmitz. � e Ex. 6. 9 ld. ioEx. 7. '� !d. [soo�si�� 2 rental license application.�2 The May 4 i�tter further ad�ised that the Appeflants could appeal the decisian to recommend denial o# #he license within 15 days by writfen request and thaf such an appea! would stay City Co�ncil action.13 '11. The deadlina for Appellants to complete repairs ar�d have t�e property re- inspected was extended fo May 22, 2015.�4 12. By e-mail dated May 12, 2015, A�pellants appealed the determinatior� set for�h �n the May 4 lett�r.'� 13. Tf�e conditions foun� ir� the March 3, 2�15 inspection o'F Appellants' property have not be�n repaired a�d no re-inspec#ian has been conducted.'6 Based upon the abo�e findings af fact, the Adminis#rative Law Judge makes the falfowing: CONCLUSlONS OF LAW 1. Minn. Stat. �� 14.50, .55 (20�4), and City Code § 9-7-14 provide the Administrative Law Judge and the Cottage Grove City Administrator with the authority ta conduct this proceeding and to consider the validity of the Compliance Order issued fo Appellants. The rofe af tha Adminis�rative L.aw J�dge is to make fir�dings, conclusions, and a recommendation on tha#subject. 2. The City gave �he App�llants pro�er and timely notice of the hearing in this matter, and fhe City has camplied with all of the law's substantive and procedural r�qi�irements. This r�atter is prope�ly before the Admin�strative Law Judge. 3. Cify Code § 9-7-`i4 A states that fhe issue for decision is whether the "compliance order is based upon erroneous interpretation of [the City Code]... or upon a misstatement or mistake of�fact." 4. City Code § 9-7-14 C �rovides that upon appeal the housing official`s recommendation may be re�ersed, madified or affirmed in whole or ir� �art. 5. Appellants` rental housin� unit was not in compliance with City Code upon ins�ection on March 3, 2Q15 in that: a. there was no Ground Faulf Inferrupter on the elecfirical outiet by th� hasement bar sink in violation of City Code § 9-7-9 B.4; b. a screer� was missing #rom a bedroom window in violat�oro of City Code § 9-7-9 B.14; 1z Ex.B. �3!d �a Id. 15 Ex. 9. is 7est. of E. Schmitz; Lehrke closing statement. [soo�s�� 3 c. kitchen sink air admittance val�e was not in compliance with Minneso#a`s Plurnbing Code in vioiation of Minn. R. �471�,2540, gov�ming proper , venfiing; d. tl�e air conditioner was not properly maintained because a significa�t amount of ice acc�mulated on fhe oufside unit in violation of City Code § 9-7-6 A.3. 6. Appeflanfs received pro�er and timely notice of t}�e Correction Order resulfing from t�e March 3, 2015 ir�spection ar�d of their abfigation to carrect the deficiencies and complete a re-inspection of the home. 7. Appellants have not re�air�d #h� d�fcienc�es listed in t�e Compliance inspec#ion Repor� and have not completed a re-inspectian of the home. 8. The Compliance Order sef fort� in the Inspec�ion Report dated March 3, 20�5 is �ased upon carrect inferpretations af the City Code. 9. The Campliar�ce �rd�r set fo�th in fhe Inspec�ion Report dated March 3, 2015 is not based upan a misstatement or rnistake of fac#. Based upon these Cor�clusions of Law, and for the reasons explained in the accompanying Memorandum, the Administrative Law Judge makes the folfowing: REC�MMENDATION The Cottage Gro�e City Administrator should AF�IRM the Compliar�ce Order set fo�th in the Inspectian Repor� dated March 3, 2015. Da�ed: June 11, 2�15 �� PERRY WILSON � Admin�strafi�e Law Judge Reported: Digitafly Recorded NOTlCE Tf�e recommendafion con#ained in this Repor� and Recommendation is not a final decision. The hearing pracess has been cond�cted and this R�port has �een made pursuar�f #o Cottage Grove City Code § 9-7�1�. Pursuant #o that Cod� sec#ior�, the Cottage Grove City Administrator wiil make the final decision ori Appe[lants` appeal after cor�sidering this Repar� and Recommer�dation and such o�her matters as the Administrator deems proper. (5005311] � I IVlEIV�ORANDUM There was no dispute that the deficient canditions found to exist in Appellants' home in t�e Marc� 3, 2015 inspection did exist. There was no evidence that these condi#i�r�s ha�e been carrected by Appellants. In addition, Mr. L.ehr�Ce sta#�d in his closing argument that fhe kitchen sink vent is no� up to coble and r�eeds to be repairecf, buf fihafi the repair must be done by a licensed pfumber. The missing screen, the ice on the air conditianer and the missing Ground Fauft Ir�ferrupter are vialations o�the City Code. There was evidence that these conditior�s are life safety issues.�7 During the hearir�g, Appeflants questior�ed whether deliv�ry of the Carrecfion Order ar�d inspection results to fhem by e-maii was in compliance with City procedure. The facts shov+r thaf Appeflar►ts received fhe e-maif and fhe foflow up letter with the same confent. Ever� ifr the originaf e-mail was r�ot a proper means af defivery of #he insp�cfion results, Appelfar�ts had adequate notic� o� t�e results of the inspection ar�d had from March 3 ta May 22, 2015 fo comple#e the repairs and re-ins�ection �rvicess. Appellants also questianed why fhe canditions discovered in t�e March 3, 2015 inspection were not found in the 20'�3 inspection. The evidence shawed that disco�ery of other deficier�cies in later inspections is not unusual because the inspection process is dependent upon fhe physical observations of each individual inspector. � P. M. W. "Test. of R. LaBrosse. , [50053I1] 5 , _ � � _' 1 STATE OF MINNESOTA OFF�CE OF ADMlNlSTRATIVE HEARINGS PO BOX 6�4620 600 NORTH ROBERT STREET ST. PAUL, MN 55164-0620 CERTIF[CATE O� SERVICE In the Matter of Derrick and Autumn Lehrke OAH Docket No.: 9 0-603'i--32535 Kendra McCausland, certifias #hat on June 10, 2095, she served the frue and correct FINDINCS OF FACT, CONCLUSIONS OF LAW, AND RECOM�fIENDATION by cn�rie� service or by placing it in the United Stafes mail with �astage pre�aid, addressed to the following indi�iduals: Korine Land Cottage Gro�e City Attorney LeVander, Gilf�n & MElfer, P.A. 633 S Concord Sf Ste 400 South Saint Paul, MN 55075 Autumn �.�hrke Derrick Lehrke �1640 �.ockridge Ave Hastirtgs, MN 55033