COUNCIL COMMUNICATION
TO: Honorable Mayor and Council
FROM: Anthony Kozlowski, Assistant to the City Manager
SUBJECT:Title
Adopt Ordinance No. 22-1297 Declaring the Document Entitled “2022 Amendments to the Lake Havasu City Code Chapter 5.20, Vacation Rentals, November 22, 2022” a Public Record and Amending Chapter 5.20 by Adopting by Reference Multiple Text Amendments to: Revise Definitions; Require Annual Permit; Include Notification Requirements; Include Additional Requirements of a Vacation Rental; and Revise Violations (Anthony Kozlowski)
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FUNDING SOURCE:
N/A
PURPOSE:
Adopt Ordinance No. 22-1297 to amend Lake Havasu City Code Chapter 5.20, Vacation Rentals.
BACKGROUND:
City staff has been focused on how best to respond to the growing neighborhood impacts as a result of a significant increase in Short-Term Rentals (“STR”) protected from local regulation as mandated by SB1350 (codified in A.R.S. § 9-500.39). This State law severely limited the City and all local government’s authority over STRs, including the local zoning and enforcement authority that applies to all other land uses and businesses in the City. The City Council, staff, residents and consultants have spent considerable time researching and developing solutions to the issue.
In 2019, the Arizona Legislature passed a revised STR law requiring STR owners to include a lodging tax license number in advertisements and prohibiting STRs from hosting non-residential uses/events. This revised law also allowed cities to require STR owners to provide contact information for someone who can respond to complaints about the STR in a timely manner.
The proposed ordinance attempts to address remaining issues related to STRs. Over the years, the State legislature has been working on the issue and with the changes in Senate Bill 1168 signed by the Governor in July, State law provides additional regulations municipalities can enact in their communities.
Some of the major changes include:
• Permitting or license regulation process.
• Collection of emergency contact information of person(s) responsible for responding to complaints and emergencies.
• Require notification of neighboring properties.
• Strengthened violations and penalties.
• License/Permit suspension up to 12 months.
• Prohibit uses per statute including housing sex offenders, sober living homes, selling liquor or illegal drugs, obscenity, pornography, adult-oriented business, special events, and retail.
• Establish minimum liability insurance requirements.
• License number displayed on advertisements.
COMMUNITY IMPACT:
The proposed amendments to the vacation rental chapter of the City Code promotes public health and safety and prohibits use of short term rentals for inappropriate purposes in the community.
FISCAL IMPACT:
There is no anticipated fiscal impact on the City for Fiscal Year 2023 or future years with the adoption of this new provision. The new annual STR permit fee will be charged and is comparable with the cost to administer and issue STR permit.
ATTACHMENTS:
Ordinance No. 22-1297
SUGGESTED MOTION:
I move to adopt Ordinance No. 22-1297 declaring the document entitled “2022 Amendments to the Lake Havasu City Code Chapter 5.20, Vacation Rentals, November 22, 2022” a public record and amending Chapter 5.20 by reference.