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To: Alan Stephenson Deputy City Manager City of Phoenix PLANNING AND DEVELOPMENT DEPARTMENT Date: September 19, 2023 From: Josh Bednarek Planning and Development Director Subject: ITEM 77 ON THE SEPTEMBER 20, 2023, FORMAL AGENDA - PUBLIC HEARING - AMENDMENT TO PHOENIX CITY CODE, CHAPTER 10, ARTICLE XVI - SHORT-TERM VACATION RENTAL Item 77, is a request to amend City Code, Sections 10-193 through 10-197 and adding Sections 10-198 through 10-206 to Chapter 10, Article XVI related to Short-Term Vacation Rentals to incorporate Arizona Revised Statute (A.R.S.) 9-500.39 requirements for obtaining a short-term rental (STR) Permit. The Transportation, Infrastructure and Planning Subcommittee heard this item on June 21, 2023, and recommended unanimous approval of the draft STR ordinance by a vote of 4-0. Since the subcommittee's approval, a team of departments including Planning and Development, Neighborhood Services, Police, Law and the Prosecutor's Office have continued to review the draft STR ordinance to improve its clarity and enforceability. As a result of this continued interdepartmental work, the several changes are proposed to the draft ordinance recommended by the TIP Subcommittee. The changes include: 1. Increasing the minimum fines of a verified violation to the greater of $500/$1,000/$3,500 or one night/two nights/three nights of rent. 2. Removing the option to pursue criminal charges for STR related violation. This does not affect the City's ability to pursue criminal charges for non-STR related violations occurring on a STR property. 3. Ensuring a person with a suspended STR permit cannot renew or reapply for a permit during the suspension. 4. Prohibiting the use of STR in an ADU. 5. An owner with a history of a suspended permit must appear at the STR property within 30 minutes and in-person if contacted by the police or code enforcement officers. Staff also recommends additional technical changes to the proposed STR ordinance to clarify and strengthen language in the definitions, permit application process, emergency contact, display of permit, suspension of permit, appeals, prohibited uses, operating requirements and penalties sections. The modifications are listed below in bold and underlined text. The Planning and Development Department recommends approval of item 77 with the following modifications