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HomeMy WebLinkAboutResolution 2023-029 Declaring as a Public Record Filed with the Town Clerk the Amendments Adopted by Ordinance No. 2023.009 MARANA RESOLUTION NO. 2023-029 RELATING TO BUSINESS REGULATIONS; DECLARING AS A PUBLIC RECORD FILED WITH THE TOWN CLERK THE AMENDMENTS ADOPTED BY ORDINANCE NO. 2023.009, REVISIONS TO TITLE 9 "BUSINESS REGULATIONS" OF THE MARANA TOWN CODE, INCLUDING DELETING SECTION 9-2-4 (VACATION RENTAL OR SHORT-TERM RENTAL CONTACT INFORMATION) AND ADDING NEW CHAPTER 9-14 "SHORT-TERM AND VACATION RENTALS"; AND OTHER VARIOUS REVISIONS TO TITLE 9 OF THE MARANA TOWN CODE BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA,ARIZONA,that the revisions to Title 9 "Business Regulations" of the Marana Town Code, including deleting section 9-2-4 (Vacation rental or short-term rental contact information)and adding new chapter 9-14"Short-Term and Vacation Rentals",and other various revisions to Title 9 of the Marana Town Code, a copy of which is attached to and incorporated in this resolution as Exhibit A and one paper copy and one electronic copy of which are on file in the office of the Town Clerk, are hereby declared to be a public record and ordered to remain on file with the Town Clerk. PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, this 4th day of April, 2023. lij' Mayor Ed Honea ATTEST: APPROVED AS TO FORM: ..... ..... . David L. Udall, Town Clerk Ja'e,'airall, Town Attorney J4 4 MARANA AZ ESTABLISHED 1 00087559.DOCX/1 Resolution No.2023-029 - 1 - EXHIBIT A TO MARANA RESOLUTION NO. 2023-029 Amendments to Marana Town Code, Title 9 "Business Regulations"pursuant to Marana Ordinance No. 2023.009 SECTION 1. Title 9 "Business Regulations", Chapter 9-1 "General Provisions", section 9-1-2 (Definitions) of the Marana Town Code is hereby revised as follows (with additions shown with double-underlining and deletions shown with Gtrikcouth): 9-1-2 Definitions The following definitions shall apply throughout this title unless the context clearly indicates or requires a different meaning. [No revisions to paragraphs A through G] H. "Licensee" means the person who applied for a license pursuant to this article title and in whose name such the license was issued by the town pursuant to this title. [No revisions to paragraphs I through 0] P. "Vacation rental" er "shut term rental" means the same as defined in A.R.S. §9 500.39. SECTION 2. Title 9 "Business Regulations", Chapter 9-2 "Business Licenses" of the Marana Town Code is hereby revised by deleting section 9-2-4 (Vacation rental or short-term rental contact information) in its entirety and renumbering the sections that follow, and any affected cross-references, to conform to the deletion. SECTION 3. Title 9 "Business Regulations" of the Marana Town Code is hereby revised by adding new chapter 9-14 "Short-Term and Vacation Rentals" as follows: CHAPTER 9-14. SHORT-TERM AND VACATION RENTALS 9-14-1 Purpose The purpose of this chapter is to protect the health, safety, and welfare of the community by enacting reasonable regulations for short-term rentals and vacation rentals. These regulations are in addition to other codes of the town. 9-14-2 Definitions In this chapter, unless the context or definitions in A.R.S. § 9-500.39 indicate otherwise,the following terms or phrases are defined as follows: A. "Advertisement" means any method of soliciting the use of property for vacation rental purposes. B. "Online lodging marketplace"has the same meaning prescribed in A.R.S.§42- 5076. C. "Days" means calendar days unless stated otherwise. 00085328.DOCX/2 1 EXHIBIT A TO MARANA RESOLUTION NO. 2023-029 Amendments to Marana Town Code, Title 9 "Business Regulations"pursuant to Marana Ordinance No. 2023.009 D. "Designee" and "agent" are interchangeable for purposes of this chapter and mean any person or persons with the charge,care, or control of any property, dwelling unit, or portion thereof. "Designee" includes the "emergency point of contact." E. "Emergency point of contact" means the owner or individual designated by the owner to: 1. Serve as the local 24-hour emergency point of contact for the vacation rental;and 2. Respond to complaints and emergencies relating to the vacation rental in a timely manner as required by this chapter. F. "License" means authorization by the town to operate a vacation rental in accordance with this chapter. G. "Nonresidential use" means any use that is not permitted in a residential zoning district pursuant to a town zoning ordinance. H. "Owner" means any person who,alone or with others,has title or interest in a property, dwelling unit, or portion thereof, with or without accompanying actual possession thereof, and includes any person who as agent, executor, administrator,trustee,or guardian has charge,care,or control of any property, dwelling unit, or portion thereof. I. "Person" means an individual, public entity, firm, corporation, partnership, limited liability company, trust, association, or any other business entity or juridical person,whether operating on a for-profit or nonprofit basis. J. "Short-term rental" and"vacation rental" are interchangeable for purposes of this chapter and have the same meaning as prescribed in A.R.S. §9-500.39. K. "Transaction privilege tax license" is the license issued by the state of Arizona pursuant to A.R.S.,title 42. L. "Transient" has the same meaning prescribed in A.R.S. §42-5070. M. "Verified violation" has the same meaning as prescribed in A.R.S. § 9-500.39. 9-14-3 License required;license non-transferable A. It is unlawful for any person to use or offer to use a property as a short-term or vacation rental in the town without first obtaining and maintaining a short- term rental license issued pursuant to this chapter. B. A separate license is required for each short-term rental. C. All licenses issued pursuant to this chapter are non-transferable as to location and as to person.Attempted transfer will void the license and all fees paid will be forfeited. 00085328.DOCX/2 2 EXHIBIT A TO MARANA RESOLUTION NO. 2023-029 Amendments to Marana Town Code, Title 9 "Business Regulations"pursuant to Marana Ordinance No. 2023.009 9-14-4 Application;fees A. The owner of a proposed vacation rental shall submit to the town a license application on a form furnished by the town. The application shall be signed by the applicant and shall contain the following information, which shall be made publicly available: 1. The physical address of the residential property proposed to be used as a vacation rental. 2. The name, address, and telephone number of the owner for which the vacation rental license is to be issued. If the property owner is an entity, the legal name of the entity and its statutory agent. 3. The name, address, and telephone number of each designee of the owner, if any. 4. The full name, address, and 24-hour telephone number of the individual who will serve as the emergency point of contact. 5. Proof of a valid transaction privilege tax license. 6. Acknowledgment by the owner of an agreement to comply with all applicable laws, regulations, and ordinances, including the requirement that the owner and each designee shall not be a registered sex offender, been convicted of any felony act that resulted in death or serious physical injury, or been convicted of any felony use of a deadly weapon within the past five years. 7. Evidence of liability insurance appropriate to cover the vacation rental in the aggregate of at least $500,000, or evidence that each vacation rental transaction will be provided through a platform that provides equal or greater primary liability insurance coverage for the vacation rental. 8. Evidence the vacation rental is registered with county assessor's office in accordance with A.R.S. §33-1902. B. Each application shall be accompanied by the applicable fee as set forth in a fee schedule approved by the council and amended from time to time. The license inspector will not process an application until the applicant has paid the applicable fee. 9-14-5 Issuance of license;term of license A. The town shall issue or deny the license within seven business days after receipt of a complete application. B. The license shall remain in effect for one year,unless sooner suspended by the license inspector. 00085328.DOCX/2 3 EXHIBIT A TO MARANA RESOLUTION NO. 2023-029 Amendments to Marana Town Code, Title 9 "Business Regulations"pursuant to Marana Ordinance No. 2023.009 9-14-6 Maintenance of accurate information All applicants and persons holding licenses issued pursuant to this chapter shall give prior written notice to the license inspector of any change in information submitted in connection with an application for a license or renewal of a license. The notice shall be provided to the license inspector not less than ten days prior to the effective date of the change 9-14-7 License renewal A. Within one year of the issue date for the previously effective license, all licensees under this chapter wishing to remain licensed shall submit the applicable license renewal fee to the license inspector. B. If the renewal fee is submitted more than 15 days after the expiration of the license,the licensee will also be assessed a late license renewal fee as set forth in the fee schedule approved by the council and amended from time to time. C. The license inspector will not renew a license until the licensee has paid all applicable fees. D. The licensee shall also submit proof of continuing compliance with all regulations, if any, of the business being operated, including but not limited to, continued possession of any required certification, permit, or similar documentation. E. No license shall be renewed unless the licensee complies with all provisions of this chapter. 9-14-8 Grounds for denial of license;notice A. The town may deny issuance or renewal of a license for any of the following reasons: 1. The applicant failed to provide the information required under section 9-14-4. 2. The applicant failed to pay the required license fee. 3. The applicant provided false information. 4. The owner or designee of the owner: a. is a registered sex offender;or b. has been convicted of any felony act that resulted in death or serious physical injury;or c. has been convicted of any felony use of a deadly weapon within five years of submitting the application; or d. at the time of application,has a suspended license for the same vacation rental. 00085328.DOCX/2 4 EXHIBIT A TO MARANA RESOLUTION NO. 2023-029 Amendments to Marana Town Code, Title 9 "Business Regulations"pursuant to Marana Ordinance No. 2023.009 B. The license inspector shall give written notice of the denial of an application to the applicant as described in section 9-14-16. 9-14-9 Compliance with laws;prohibited uses A. The operation of a vacation rental shall be in compliance with all federal,state, and local laws,including this chapter. B. The use of a vacation rental property for any of the following uses or purposes is strictly prohibited: 1. Any nonresidential use 2. Holding a special event that requires a permit or license pursuant to a town ordinance or state law or rule 3. Operating a retail business,restaurant,event center,banquet hall or similar use 4. Housing sex offenders 5. Operating or maintaining a sober living home 6. Selling or offering for sale, consideration, or entrance fee, liquor or illegal drugs 7. Commercial display or production of pornography 8. Obscenity as prohibited by A.R.S. title 13,chapter 35 9. Operating or maintaining an adult-oriented business including nude or topless dancing 10. Any other use prohibited by A.R.S. §9-500.39 or the town code. C. A vacation rental lacking a valid transaction privilege tax license issued by the state of Arizona shall not be rented or offered for rent. D. No person or entity may receive payment or accept a fee,directly or indirectly, for facilitating the rental of a vacation rental operating in violation of this code or other law. E. The failure of any designee to comply with this chapter shall not relieve the owner of liability under this chapter. 9-14-10 Emergency point of contact requirements A. When requested by a police officer in an emergency, the owner or emergency point of contact whose name appears on the license application must be on the vacation rental premises, or be available over the phone or text, within 60 minutes of the request. 00085328.DOCX/2 5 EXHIBIT A TO MARANA RESOLUTION NO. 2023-029 Amendments to Marana Town Code, Title 9 "Business Regulations"pursuant to Marana Ordinance No. 2023.009 B. The owner or emergency point of contact shall respond to all other non-emergency complaints relating to the vacation rental in person, over the phone,by email, or by text within 24 hours of the request. C. All applicants and persons holding licenses issued pursuant to this chapter shall give prior written notice to the license inspector of any change to the contact information provided to the town for the emergency point of contact. The notice shall be provided to the license inspector not less than ten days prior to the effective date of the change. 9-14-11 Neighbor notification requirements A. Prior to offering for rent or renting a short-term rental within the town, the owner or owner's designee must provide notice in writing that the property will be used as a short-term rental as follows: 1. If the short-term rental is a single-family residential unit, notice shall be provided to the owners or residents of all single-family residential units and lots located (a) adjacent to the lot on which the short-term rental is located, (b) directly across the street from the lot on which the short-term rental is located, and (c) diagonally across the street from the lot on which the short-term rental is located. The requirements of this subsection may be met by providing notice to all owners or residents of single-family residential units and lots located within 200 feet of the property line of the lot on which the short-term rental is located. 2. If the short-term rental is a multi-family residential unit, notice shall be provided to the owners or residents of all residential units located on the same floor of the same building as the short-term rental. B. The neighbor notification shall be provided in writing and shall include, at a minimum,all of the following information: 1. The license number issued by the town 2. The physical address of the vacation rental 3. The name,physical address,email address,and 24-hour telephone number of the emergency point of contact. C. The owner or designee shall provide additional neighbor notification of any change to the information provided under paragraph A of this section not later than five days prior to each change. The additional notification shall be provided in the manner required by paragraph A. D. Prior to offering a vacation rental for rent for the first time, the owner or designee shall provide to the town an attestation of compliance with the neighbor notification required by this section. The attestation shall include, at a minimum,all the following: 1. The license number for the short-term rental. 00085328.DOCX/2 6 EXHIBIT A TO MARANA RESOLUTION NO. 2023-029 Amendments to Marana Town Code, Title 9 "Business Regulations"pursuant to Marana Ordinance No. 2023.009 2. The address of each property notified. 3. A description of the manner in which the owner or owner's designee provided written notice to each property requiring notification. 4. The name and contact information of the person attesting to compliance. 9-14-12 Advertisement requirements To protect the peace, health, safety, and general welfare of the town's residents and visitors,the owner or owner's designee shall be responsible for displaying the license number issued by the town on each advertisement for the vacation rental. 9-14-13 Posting requirements The owner of the vacation rental must display the name,phone number,and email address of the owner, designee, and emergency point of contact in a conspicuous place within five feet of the primary entrance of the vacation rental. 9-14-14 Background check requirements A. No sex offender shall be permitted to rent or occupy the vacation rental. B. The owner or the online lodging marketplace on which the vacation rental is advertised shall conduct a sex offender background check on each guest within 24 hours of every booking. The owner shall demonstrate compliance with this requirement by retaining a full copy of each background check for a minimum of 12 months after the booking date and providing the copy to the town upon a request by a police officer. 9-14-15 Grounds for suspension of license;notice A. The town may initiate an administrative process to suspend a vacation rental license for a period of up to 12 months for any of the following: 1. Three verified violations of this chapter within a 12-month period, not including any verified violation based on an aesthetic,solid waste disposal, or vehicle parking violation that is not also a serious threat to public health and safety. 2. One verified violation that results in or constitutes any of the following: a. A felony offense committed at or in the vicinity of a vacation rental by the owner of the vacation rental or by the owner's designee. b. A serious physical injury or wrongful death at or related to a vacation rental resulting from the knowing, intentional or reckless conduct of the owner of the vacation rental or the owner's designee. c. The owner of the vacation rental or the owner's designee knowingly or intentionally housing a sex offender,allowing offenses related to adult- 00085328.DOCX/2 7 EXHIBIT A TO MARANA RESOLUTION NO. 2023-029 Amendments to Marana Town Code, Title 9 "Business Regulations"pursuant to Marana Ordinance No. 2023.009 oriented businesses, sexual offenses, or prostitution, or operating or maintaining a sober living home. d. The owner of the vacation rental or the owner's designee knowingly or intentionally allowing the use of a vacation rental for a special event that would otherwise require a permit or license pursuant to the town code or a state law or rule or for a retail, restaurant, banquet space or other similar use. B. If a license is suspended pursuant to this chapter, the short-term rental is prohibited from operating during the suspension period and,if the suspension is for a period beyond the term of the license, then, to operate the short-term rental, the owner will be required to obtain a new license after completion of the suspension period. A person may not apply for a new license for a short- term rental until the suspension period is over. C. The license inspector shall give written notice of a license suspension to the owner as described in section 9-14-16 below. 9-14-16 Notice of license denial or suspension A. If the license inspector determines that grounds exist to deny an initial or renewal vacation rental license or to suspend a vacation rental license, the license inspector shall notify the applicant or owner in writing of the denial or suspension. B. The notice shall include justification for the denial or suspension with references to the statutes, ordinances, codes or substantive policy statements on which the denial or suspension is based. C. The notice shall be either: 1. Personally served upon the applicant or owner, or upon any responsible person at a business address on file with the license inspector; or 2. Mailed by certified mail or other method for which proof of receipt may be obtained by the license inspector to the address of the applicant or owner listed in the current year's license application or renewal application or to the business address of the applicant or owner. D. The effective date of the notice shall be the date the notice is actually received. E. The notice shall advise the applicant or owner that he or she may submit a written request for an appeal hearing to the license inspector within ten calendar days of receipt of the notice. 9-14-17 Appeals A. If an applicant or owner requests a hearing pursuant to the procedure described in section 9-14-16,the hearing shall be scheduled within 30 calendar days of the license inspector's receipt of the request, and the applicant or 00085328.DOCX/2 8 EXHIBIT A TO MARANA RESOLUTION NO. 2023-029 Amendments to Marana Town Code, Title 9 "Business Regulations"pursuant to Marana Ordinance No. 2023.009 owner shall receive notice of the date,time and place of the hearing delivered in the manner described in subparagraph 9-14-16(C). 1. The hearing shall be before the town manager or his or her designee to determine whether the license should have been denied, suspended, or denied renewal. 2. The hearing shall be conducted in an informal manner and the rules of evidence shall not apply. B. If applicable,the applicant or owner may take remedial action while awaiting the review hearing,and apply to the license inspector to have the license issued or fully restored. C. The decision of the town manager or designee is final and not subject to any further administrative review. 9-14-18 Civil violations and penalties A. The remedies in this chapter are cumulative and the town may proceed under one or more remedies: B. No person shall operate,offer for rent,rent,occupy, or use a short-term rental in violation of any provision of this chapter or other applicable law, rule, or regulation. C. The owner shall be subject to the suspensions, civil violations, and penalties set forth in this chapter for the owner's designee's violation of any provision of this chapter or failure to perform any act or duty required by this chapter. D. Any person who violates a provision of this chapter will be subject to a civil code violation case in accordance with chapter 5-7 of this code. E. In addition to any other penalty pursuant to the town code, and notwithstanding any other law, the town may impose civil penalties of the following amounts against an owner if the owner causes, allows, facilitates, aides,or abets in the commission of a verified violation or fails to perform any act or duty required by this chapter, related to the same vacation rental property within the same 12-month period. If multiple violations arise out of the same response to an incident at a vacation rental, those violations are considered one violation for the purpose of assessing civil penalties. 1. Up to $500 or up to an amount equal to one night's rent for the vacation rental as advertised,whichever is greater,for the first violation. 2. Up to$1,000 or up to an amount equal to two nights' rent for the vacation rental as advertised,whichever is greater,for the second violation. 3. Up to$3,500 or up to an amount equal to three nights' rent for the vacation rental as advertised, whichever is greater, for a third and any subsequent violation. 00085328.DOCX/2 9 EXHIBIT A TO MARANA RESOLUTION NO. 2023-029 Amendments to Marana Town Code, Title 9 "Business Regulations"pursuant to Marana Ordinance No. 2023.009 F. In addition to any other penalty,any property that operates as a vacation rental and fails to apply for a vacation rental license in accordance with this chapter within 30 days of the application process being made available by the town, must cease operations immediately.In addition to any fines imposed pursuant paragraph E above, the town may impose a civil penalty of up to $1,000 per month against the owner if the owner or owner's designee fails to apply for a license within 30 days of receiving written notice from the town of the failure to comply. G. In addition to any other penalty,the town may impose a civil penalty of up to $1,000 for every 30 days the owner fails to provide contact information for an emergency point of contact to the town as required by this chapter. Before imposing the initial civil penalty,the town shall provide 30 days' notice to the owner by emailing a notice of violation to the owner's email address that was provided to the town. Notwithstanding the date of the notice of violation,the date for calculating the penalties shall be the first day the vacation rental is occupied following the owner's failure to provide the information to the town. 9-14-19 Judicial relief A. Notwithstanding section 9-14-15, any one attempted or completed felony act arising from the occupancy or use of a vacation rental that results in a death, or actual or attempted serious physical injury, shall be grounds for judicial relief in the form of a suspension of the property's use as a vacation rental for a period that shall not exceed 12 months. B. The town attorney or designee may initiate proceedings in the Marana municipal court or other court of competent jurisdiction to enforce this section. 00085328.DOCX/2 10