Kevin Rudd stated that he was not present at the last meeting, so Dale Coulam and Sharon Allen went over the Planning Commission's comments and concerns with him. Staff tried to incorporate those discussed changes. He researched St. George and Hurricane that both have short-term rental ordinances. One of the things he incorporated was that the property manager would be the responsible party for short term developments for resolving any problems, concerns, complaints, maintenance issues, business licensing, and sales and room tax collection. The next concert was how small a parcel would you allow this to be built on? We started on 5 acres but you could move it to whatever you'd like to recommend. St. George says theirs is a minimum of 100 units. Hurricane allows anyone anywhere to do a short-term rental if they go through the process. He doesn't recommend that is what our City would want to do. Moving to 5A, we better defined the property manager to be on-site and located within 20 minutes commute time from the development. We were concerned if property manager is in SLC or something and they shall also be the responsible party for the entire development and shall provide information on current occupants to police, emergency and city personnel as needed. The property manager shall be available 24 hours a day and shall respond to complaints and concerns within one hour of any phone call. The property manager shall maintain their Utah sales tax license and collect and submit to state tax commission the required transient room tax for all the short-term rentals. The next thing that was added was that all short-term rental developments would need to display at each entrance a sign that would have the property manager name and phone number so 24 hours a day so that anyone living outside of it could call from the entrance. Chairman Jeff Loris inquired if there were sign requirements? Kevin Rudd stated that it was not specifically defined in this, but we can certainly do that. The next thing was when short-term rentals are adjacent to a single family properties, a buffer of single family residential units, that is one layer of single family non-rental units or an 80 foot open space on the perimeter where it abuts. Commissioner Lance Anderson inquired where we came up with 80 ft? Kevin Rudd stated that is the minimum width of a single family lot. The biggest complaint we get on illegal short-term rentals right now is on noise, partying, being disrespectful of the neighborhood. If single family dwellings have them right in their backyard it could end up being disruptive. Commissioner Lance Anderson 80 foot seems like a lot. Kevin Rudd stated that it would push the development to do a layer of single family dwellings in the development that were non-rentals. Commissioner Lance Anderson stated that a 40 foot maintained landscaped buffer with trees takes the noise down. He would suggest that. Chairman Jeff Loris inquired if this would be to existing adjacent subdivisions? Kevin Rudd stated that the Planning Commission would need to determine that. Commissioner Lance Anderson inquired if someone were to build a commercial units what does it require there? If it was abutting commercial. Kevin Rudd stated they would have to build a six foot solid wall and have the same setback as the single family zone. Commissioner Adel Murphy stated that it says one unit in depth. Resort Mixed Use has commercial components and we are buffering having commercial components next to existing residential. Commissioner Lance Anderson stated that if it was strictly commercial is has to have the same setback as the property next to it. Dale Coulam stated there is a distinction that you have commercial, a building not making a whole lot of noise, you may have some parking and some traffic, pedestrians, but a Resort Mixed use, you typically have more of the louder activities, such as a swimming pool, so for Resort Mixed Use it was defined as a layer of single family homes buffering the residential zone and that lessens the impact on the neighboring residential. We haven't defined what short-term rental projects are yet, but with some of the current concerns that have been expressed, it sounds like a resort atmosphere rather than a business atmosphere. He thinks Commissioner Adele Murphy is saying we should apply the same requirement that we do in a Resort Mixed with a layer of non-rental homes to buffer what would otherwise be considered a nuisance to residential properties. Commissioner Lance Anderson stated that we could require all recreational facilities to be one unit in and less of an outside buffer, like 40 feet. Commissioner Adele Murphy stated swimming, garbage, RVs, parking, none of that stuff should be anywhere near. It should be to the street side. The one in Santa Clara the RV storage is abutting commercial and the pool is closer to the street. The garbage is going to make noise. It all needs to be pushed away as far as it can, or in the middle of the development and not bothering residents. Commissioner Lance Anderson stated if we make it one unit in and a 40 foot maintained landscape buffer we could get the best of both worlds. Kevin Rudd stated that the buffer of a structure provides more sound barrier than open space. The distance on some of these illegal short-term rentals we get complaints on are 40-60 ft away but it's wide open and the sound carries. A structure would stop the sound. Commissioner Lance Anderson stated trees and homes do stop it. Chairman Jeff Loris inquired if we are talking about existing residential. Commissioner Lance Anderson stated no. He means the zone. Chairman Jeff Loris inquired if the adjacent subdivision comes in they would know this was a commercial application and a short-term so they would build differently or would they have to have a buffer? Commissioner Lance Anderson stated that if it is zoned residential around it, we don't want to take away the value of the person next to them. It should be treated as a privilege. Kevin Rudd stated that the next item that was added in was G. All short term rental lease developments shall install a six foot colored masonry wall on all perimeter property lines. That is imperative because of the impact this type of subdivision would have on neighboring properties, just like commercial, it should be required. Commissioner Lance Anderson stated that he doesn't disagree with a six foot wall, just that it has to be on the perimeter lines. It makes a more appealing openness to it. Kevin Rudd stated that our transportation master plan requires a streetscape buffer on the perimeters of subdivisions. Commissioner Adel Murphy stated that she likes the idea that you either put residential non-short-term rentals, which she thinks it needs to say that. It just says single family residential. It just needs to be spelled out. Commissioner Lance Anderson stated that as long as the criteria is met, in his opinion, we don't care whether it is short or long-term, just that the taxes are being collected correctly. Commissioner Adel Murphy stated that we care that the ones on the perimeter that are buffering are prohibited from being short-term rentals. Commissioner Lance Anderson stated that if someone wants to put in a 40 foot buffer wall landscape, even if it's not a perimeter buffer it still creates openness for the people living next to it. Commissioner Adel Murphy stated that it needs to be a buffer, not become a park. Mike Scott stated there are also risks the adjacent residential community will have by having short-term rentals next to them. This becomes an amenity then. Commissioner Lance Anderson stated yes. He is suggesting a 40 foot buffer maintained and landscaped and some type of trees. Commissioner Adel Murphy stated that it would be a maintained open space. Chairman Jeff Loris stated that a parkway would make sense. Commissioner Lance Anderson stated that if there was a necessity for connectivity for pedestrians, then there's a need. We are not inviting people there to play, but it is a pass through. It is just a maintained open space as a buffer. Chairman Jeff Loris stated that he likes 40 feet better in that case. Commissioner Adel Murphy stated that then the house itself will have a minimum of 10 feet. (Applicants stood up and left the building.) Chairman Jeff Loris stated if we do a one unit residential buffer on the outside then a wall makes sense but if it a buffered area, then it needs to be a minimum 40 feet in from the property line. Dale Coulam stated that we are safest to say there is a layer of non-short-term rental single family residential units rather than defining a buffer zone that is larger than any buffer zone we have. That could be viewed as a taking. If we state when they want this type of project and it abuts residential then they are going to put a row of non-short-term rentals in their project and the rest on the interior can be short-term rentals. They have no right to do short-term rentals now but in a residential neighborhood you could be pretty close to a pool party with someone that has just a residential pool. He thinks we are safest by just defining it as a row of houses, or if you are not as concerned with the short-term rental as you are the amenities then you could just require those to be on the interior. A trampoline is the same risk you would have as any residential neighborhood but if the common pool area and amenities for that project are on the interior, then you have minimized it to the extent that you can. Legally you would be on safer ground because you haven't taken any property. Right now they have no right to do this. We will give them the right, but it's going to be on the inside of their project. The outside is still going to be normal residential. Commissioner Lance Anderson stated that he doesn't think it is a taking, when we cluster we tell people they are giving up open space. Our ordinances say that. Dale Coulam stated that maybe we should phrase it that way if they want to do an overlay to do a short-term rental project then this would be what they were giving up as consideration. We need to be careful we don't impose a buffer zone. Commissioner Bryan Pack stated if we give a developer options they could pick and choose to do a row of single family units or a 40 foot landscaped buffer zone. They could then pick. Dale Coulam stated that he thought it was good to use the Enhancement Overlay language that says if they choose to cluster and leave open space then you get the right to do it. We just need to be careful to phrase it that way. Commissioner Adel Murphy stated that our Subdivision Enhancement Overlay basically says that it rewards subdivisions located in these zones for the provision of subdivision and community features not typically required by the City and may include street enhancement, improvement dedications, subdivision landscaping, buffering, compatibility features and amenities. That's what the SEO says. The PD also says that this promotes efficient use of all land resources and requires the provision of development and community amenities, the preservation of natural and scenic qualities of the development site. So both of those encompass the idea that if you want to cluster you have to leave some open spaces. Commissioner Lance Anderson stated that we just need to clarify that if you don't want to put a residential unit on the outside then give up 10% on the outer boundaries of the development. We already have that in place, we just need to clarify one step further. Dale Coulam stated that it would be tied to the Overlay and the right to do it rather than the imposition of an arbitrary distance of a buffer. Commissioner Lance Anderson stated that if we leave it in the SEO or PD overlay and just state amenities to the inside and open space needs to be on the outer boundaries. Then we are following our own rule and just clarifying it. Dale Coulam stated that would allow you to cluster your densities inside and they are not losing density. They'd get the same density, but give up open space so there has been a trade-off. What we have to make sure doesn't happen is that we make them put in an open space and they lose density as a result of it. That would be a taking. Chairman Jeff Loris recapped that we are not necessarily requiring 80 foot open space, but we do want at least a single layer of residential non-short-term rentals on the exterior or that any open space, the 10% they gain from the SEO or PD is required to be on the exterior of the development. Commissioner Lance Anderson stated yes, and all amenities and storage, garbage, needs to be interior. Chairman Jeff Loris stated that it is then not a taking, but a benefit. Commissioner Lance Anderson stated that next on section G on the masonry the only thing he would say is it should border the living space of the units. Kevin Rudd stated that it doesn't make sense when it is adjacent to a property line because then you wind up with this space and someone builds a home, they are going to want to put a fence on the property line. So then we are going to have a fence there and one for the short-term rental, this 40 foot area, so now we have it fenced in on two sides. Commissioner Adel Murphy stated if they fenced behind the rentals it would be better. Commissioner Lance Anderson stated we should just keep it in a natural state. Could we say a 6 foot wall needs to be in place and then define it? Chairman Jeff Loris inquired what the reason for the wall is. Kevin Rudd stated that the reason for the wall on a commercial development when it is abutting residential is it is an impactful use. The same with multi-family. We require that as well. It's a higher impact. We are saying since they are higher impact, they are responsible for putting up a buffer wall. Chairman Jeff Loris inquired on the open space SEO and PDs are they a buffered landscape to be maintained, to get the benefit of the density? So the only reason for a fence behind is to contain your lot? Commissioner Lance Anderson stated that if it is used for connectivity it would work but if it's not. Kevin Rudd has a good point. Dale Coulam inquired what if we made it consistent with commercial and multi-family and say where it abuts residential? Then there is a 6 foot masonry block wall on the boundary line. Commissioner Lance Anderson stated that we would want them to put their buffer in closer to their house. Kevin Rudd stated that there are areas that we wouldn't want it that way. Commissioner Lance Anderson stated that we just did an exception in Encanto. Kevin Rudd stated yes. We could say 'or other natural buffering as approved by Council.' Is that too wide open? Dale Coulam stated that it is a little vague, but maybe we could say it would be perimeter unless there is some natural geographic conditions that require it to be located elsewhere. Chairman Jeff Loris stated that the Commission tried that on pool surrounds and it got shot down by City Council. Dale Coulam stated that we still use that language on connecting roads. We could use similar language here. So say on the property lines unless there is some geologic reasons to put it elsewhere. Then they come in to say why they want it somewhere else. Commissioner Adel Murphy inquired if these projects have HOAs? She is thinking what about 100 houses that need painting, etc. How would that all work with this kind of project where you have separate ownership? Kevin Rudd stated that we would go to the Property Manager for any problems and they could lose the privilege of short-term rentals. Commissioner Adel Murphy stated that you would hope that the people that buy these want to use it themselves for part of the year and have them as a second home and also use it as income. It wouldn't just be an investor putting people in there. Kevin Rudd stated that Red Mountain Spa has the condos with the short-term rentals and we consider them the Property Manager. I think in Encanto we are going to require the same type of thing, they will need a development agreement soon. It will be the same stipulation that there is one Property Manager that the city can turn to. Commissioner Lance Anderson stated it needs to be defined with a development agreement and that they are responsible for every home in the project because they want to rent them short-term and long-term. Kevin Rudd stated that RV on-street parking or boats shall not exceed 6 hours instead of 48 hours. It says that they need to provide off-street parking within the development. The next thing was on the parking he basically defined it as single family detached units, they would need a two car garage and two spaces on the driveway fronting the garage. If they did multi-units, connected units that are either condos or townhomes, apartments, then they would have to follow parking requirements we have for those types, which is two parking spaces for each two bedroom unit, tow and a half spaces for three-plus bedroom units, and .25 spaces for guest parking. One covered parking space shall be provided for each unit. Driveways fronting garages shall be at least 20 feet in length and a minimum of 16 feet wide. Commissioner Mike Scott inquired where it stated that a detached single family would have a two car garage. Some of these may be larger and so the way he reads it, it can only have a two car garage, it can't have a three car garage? Can we say minimum 2 car garage? Also, on the section of how many parking spaces based on the number of bedrooms, we don't mention one bedrooms. Kevin Rudd stated we could take it down to one unit. Commissioner Lance Anderson stated that a one bedroom should still have two parking spaces if it is a husband and wife with two cars. Commissioner Mike Scott stated that on guest parking he thinks it should be .25 spaces per unit for guest parking. Kevin Rudd stated yes. That represents per unit. Commissioner Mike Scott stated that in Section S it states that no short-term residential lease shall be located closer than X feet to an existing short-term development. He doesn't know why we would require that. Kevin Rudd stated this was just an option if we want to spread them out throughout the city instead of them stacking a whole bunch next to each other. Commissioner Adel Murphy stated that she could see a whole bunch of these on Hwy 91. She wouldn't mind them stacked up in that area. It makes the most sense. Commissioner Mike Scott stated that he is inclined to scratch Section S. He sees it as a benefit to group them together rather than separate them. He stated that on item number six states vacation rental properties. That is the only place in this document where we use the term vacation rental properties. He would like to change it to short-term rental properties. Kevin Rudd stated he will change it to reflect that. This may be used more on people renting illegally outside of a short-term rental subdivision. Particularly where it says evidence of operation shall not require the verification of the presence of guests, but may be determined by the existence of advertisements of any kind offering property for short-term rentals. Short-term rentals have to advertise. That is what makes it difficult for them because we can go on and we can find them. We are working on one right now that advertises as a long-term rental greater than 30 days but in their contract they have a trial period that someone can come and stay less than 30 days and see if it going to work for them and if it doesn't work out for them, they step out of contract. It's pretty creative. Commissioner Adel Murphy inquired about 5 acre minimum. Commissioner Lance Anderson stated that with all our criteria, he thinks that is a good number. Commissioner Mike Scott stated with all the things Kevin Rudd has put in there, he is good with that. There is enough protection there. He inquired about remuneration and the city getting some tax revenue. It states compensation, money, rent or other consideration. If it is non-monetary how would we collect taxes on it? It is in Section 3 Definitions. Kevin Rudd stated that this refers to someone that is illegally renting a unit and not receiving cash for it. Commissioner Mike Scott stated that if a developer builds one of these short-term projects that there will be rental income on those units. There will be tax dollars as a result of that. But if they are allowed to bargain for something other than money, he wonders how it would be collected. Commissioner Lance Anderson stated that it is there for the ability for the City to enforce something. Dale Coulam stated that we can define as a short-term rental and it has to comply with the ordinance. Commissioner Adel Murphy stated that on some of these illegal rentals on websites they say they are charging taxes. They give the rate, and the tax. Kevin Rudd stated it has changed and it now goes to the State and we can't track how much we get from Red Mountain Spa anymore. Dale Coulam stated that it used to be that room tax was paid to the City so we could track it fairly closely until one legislator had a bad experience and then the law got changed for everyone in the entire State. All taxes are now remitted to the tax commission and they distribute it. It is not broken out and we can't tell. We could take one of these cases and go to the tax commission and ask if they really received this tax or are they being fraudulent? The tax commission is the one to enforce it. He doesn't know if we can enforce it or not. Commissioner Adel Murphy stated that we can ask the tax commission to audit something. Dale Coulam stated that it would be nice to say this advertises that they charge tax and that they pay a room tax but we don't show it listed as having paid tax and as the third party beneficiary of that, we are requesting an audit. If we can't track it, it is hard to make that claim. Commissioner Adel Murphy stated that it seems like a huge loop hole if it can't be tracked. Chairman Jeff Loris left for an appointment. Commissioner Adel Murphy chaired the remainder of the meeting.
Commissioner Adel Murphy opened the discussion on Chapter 9 Development Agreements. Commissioner Mike Scott inquired on Section 103. We took out "shall specify" and put in "should consider" but most of these items seem like they are 'shalls' rather than 'shoulds.' Dale Coulam stated we didn't always follow Chapter 9 we followed the subdivision ordinance on development agreements. Development agreements are typically triggered by phasing. We have done development agreements where there is no phasing and yet #6 says we have to provide a phasing schedule. We haven't done that on all the development agreements if there was no phasing, so we have always followed the subdivision ordinance. Yet there is this chapter in the Zoning Ordinance that says "you shall contain" all of these things. Commissioner Lance Anderson stated so we are trying to mesh the two. Commissioner Bryan Pack stated that it gives the City some flexibility. The City can require that. Commissioner Adel Murphy stated that it doesn't sound that way. Commissioner Mike Scott inquired who it is that should or shall consider these items? The applicant of the City? If it's the City then should is just fine. Commissioner Lance Anderson stated we could say shall consider if applicable. Dale Coulam stated we could say the City Council should consider in all development agreements entered into the following sections for possible inclusions in the agreement. Commissioner Adel Murphy stated yes, sure that makes sense. She read it as the developer could consider these decisions, not the City. It makes much more sense now. Dale Coulam stated that oftentimes we wait for final plat and we don't hold a separate public hearing. This makes it sound like it needs a separate one for the Development Agreement, and that is not the way we do it. The Public Hearing is for the Conditional Use or the Preliminary Plan. The development itself is going through the Public Hearing, not the Development Agreement. The Conditional Use that you make recommendation on are the subdivision application and then decided by the City Council and that receives public comment and can effect what you are going to approve. Once that is established, you then draft a Development Agreement that memorializes what those conditions were and there is nothing the public could say at that point. The Public Hearing has already taken place. Commissioner Mike Scott inquired as to why we were taking out Section 111? Dale Coulam stated that you can't do conditional zoning. It's against the law. The law would strike that section anyway. You can't say that if you do all these things it will be zoned agricultural or whatever they are asking for. It's illegal. We are just cleaning this up. We have followed the subdivision ordinance very closely, but now we have some projects that will be coming forward not as subdivisions initially, Sentierre, Encanto, short-term rentals, but as other type of projects with Conditional Use Permits and we are going to be entering into Development Agreements. We did a written list of conditions but we will probably enter into a Development Agreement before they subdivide. They can subdivide at any time, or choose not to subdivide. Under the Subdivision Ordinance it may never trigger the use of a Development Agreement, but under Chapter 9 it does. So we looked at this and it needed to be modified. Commissioner Lance Anderson stated that 16.09.107 it says that Kevin Rudd reviews each Development Agreement every year. Kevin Rudd stated that we can say periodically.