City Council Meeting - FINAL
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10.C.
Meeting Date:
07/03/2023
From:
Sarah Langley, Public Affairs Director
Information
TITLE:
Consideration and Adoption of Resolution No. 2023-38 and Ordinance No. 2023-16:
A resolution of the Flagstaff City Council declaring as a public record that certain document filed with the City Clerk and entitled "2023 Short-Term Rental Code", and an ordinance of the City Council amending the Flagstaff City Code, Title 3 Business Regulations, by adopting by reference that certain document entitled "2023 Short-Term Rental Code".
STAFF RECOMMENDED ACTION:
1) Adopt Resolution No. 2023-38
2) Read Ordinance No. 2023-16 by title only for the final time
3) City Clerk reads Ordinance No. 2023-16 by title only (if approved above)
4) Adopt Ordinance No. 2023-16
Executive Summary:
The City currently regulates short-term rentals (STRs), as found in Flagstaff City Code Chapter 3-12. A short-term rental is a residential dwelling unit rented for less than 30 days. Current regulations are based on A.R.S. Section 9-500.39, as in effect prior to September 22, 2022. All STRs are required to register with the City and non-residential uses of STRs are prohibited.
During the spring of 2022, the state legislature passed SB1168 (vacation rentals; short-term rentals; enforcement). This legislation allows limited regulation of vacation or short-term rentals, including the ability to create a license or permit to operate an STR, as well as defined criteria for when a city may deny or revoke a license or permit. The legislation also outlines allowable regulations related to neighbor notification, emergency contacts, civil penalties, and other areas. Staff has drafted an ordinance to create a short-term rental licensing system based on Council and public input and is seeking Council approval.
The City is not able to regulate STRs except to the extent allowed by state law, and state legislators should be contacted if changes in the law are desired.
Based on comments received at the June 20
th
Council Meeting, the following changes were made to the draft STR code:
Revised to provide that the STR owner will need to submit an attestation of completion of neighborhood notification after license issuance.
Clarified that the City may ask the STR owner to voluntarily disclose whether the unit is owner-occupied.
The license fee increases by $5 annually starting Nov. 1, 2024, to account for rising costs.
Clarified that liquor control violations and producing pornography are prohibited uses.
Financial Impact:
Costs associated with the implementation of a Short-Term Rental license will be recovered through an annual license fee currently proposed at $175 per license.
Policy Impact:
None
Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan:
Priority Based Budget Key Community Priorities and Objectives
Safe & Healthy Community
Livable Community
Has There Been Previous Council Decision on This:
Yes. The City Council heard updates on potential regulation of short-term rentals on October 11, 2022 and held a work session on May 9, 2023.
Attachments
Res. 2023-38
2023 Short-Term Rental Code
Ord. 2023-16
Presentation