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40 Options Regarding a Path Forward 41Based upon the significant takeaways from the first discussion, and after discussions with the 42Police Chief and City Attorney, staff suggests these following options for consideration: 431. Instead of advancing “short-term” rental restrictions, amend the Rental Registration 44chapter of the City Code, Chapter 907, specifically Section 907.09 (Registration 45Suspensions and Revocation), to more clearly define a process to revoke and/or suspend a 46registration (right now the authority is simply granted to the Community Development 47 Director). This process could be usedagainst the problem rentals that sparked this topic. 48Staff has suggested possible language in Attachment A. 49 2. If there is desire to create “short-term” rental restrictions, staff would suggest the Council 50consider a ban on rentals of less than 30 days. This would resolve the short-term rental 51properties that sparked this topic, yet would still allow nearly all of the 553 registered 52rentals to continue, without impact, being most are for leases greater than 30 days and/or 53are for individual bedrooms within an otherwise owner-occupied home. Staff has 54suggested possible language in Attachment B. 553. If the Council wishes to create “short-term” rental restrictions, yet is not interested in a 56ban, staff would suggest creating a new Chapter 909, creating a business license 57requirement for rentals less than 30 days. Staff feels a license is necessary to effectively 58 communicate to the Police Department, who ultimately will bear the burden of 59 enforcement. The process would also entail collaboration between Community 60 Development and Administration staff on the issuance, suspension, and revocation 61processes. Staff has suggested possible language for this new Chapter in Attachment C. 62 63 Draft Language – Attachment A (avoids distinction of “short-term” rental) 64The draft ordinance provided as Attachment A amends existing City Code Section 907.09 65(Registration Suspensions and Revocation) to provide a better process to revoke and/or suspend 66 a registration. The current languagesimplyallows revocation and/or suspension at the discretion 67 of the Community Development Director based on noncompliance with the requirements listed. 68This path forward does not entail defining “short-term” rentals and/or regulating them differently 69than more traditional rentals. Underlineindicates new language, strikethrough indicates deleted 70 language. 71 72The draft language proposed by staff aims to accomplish the following. 73 1. Limits violations listed under this section to three occurrences within 180 days. 74 2. Requires an automatic review by the City Council to suspend the rental 75 registration once three violations occur within 180 days. ndrd 76 3. The penalties imposed by this section are punitive at the 2and 3 review by 77 City Council. For example, three violations within 180 days could result in a nd 78 suspension of 180 days, the 2 suspension request could result in a suspension for rd 79 365 days, and the 3occurrence could result in revocation. 80 4. Suspension and/or revocations heard by the City Council include notice to 81 neighbors within 350 feet. 82 83 Draft Language – Attachment B (bans rentals less than 30 days) 84The draft ordinance provided as Attachment B amends existing City Code Chapter 907 by 85 defining “short-term” rental as a rental less than 30 days and notes they are prohibited. This 86 amendment can be accomplished by merely amending Section 907.02 by adding the definition of 87“short-term rental”. If Council is interested in prohibiting rentals less than 30 days, staff would 88also recommend including the language proposed by Attachment A (the better defined process 89for suspensions and revocations). The City of Prior Lake bans rentals less than 60 days. 90Underline indicates new language, strikethrough indicates deleted language.