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8-28-2018 SPECIAL FORMAL SESSION MINUTES asiv BEA � nsr a i 4+ BEV S �°5 VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia August 28, 2018 Mayor Jones called to order the Virginia Beach City Council's SPECIAL FORMAL SESSION in the City Council Conference Room, Tuesday, August 28, 2018, at 4:00 P.M. Council Members Present: Jessica P. Abbott, M. Benjamin Davenport, Robert M. Dyer, Barbara M. Henley, Mayor Louis R. Jones, Shannon DS Kane, John D. Moss, John E. Uhrin, Rosemary Wilson, and Vice Mayor James L. Wood Council Members Absent: None 2 MAYOR'S CALL FOR FORMAL SESSION ITEM#68447 Mayor Jones read the Mayor's Call for the SPECIAL FORMAL SESSION: August 23, 2018 "HONORABLE MEMBERS OF CITY COUNCIL In accordance with the Virginia Beach City Code, Section 2-21, and by the authority vested in me as Mayor of the City of Virginia Beach, I hereby call for a SPECIAL FORMAL SESSION of the VIRGINIA BEACH CITY COUNCIL: Tuesday,August 28, 2018 at 4:00 P.M. City Manager's Conference Room 234 2401 Courthouse Drive The purpose of this SPECIAL FORMAL SESSION is for City Council to convene into CLOSED SESSION for the sole purpose of consultation with legal counsel regarding Short Term Rentals. Following the Special Formal Session, the Workshop Briefings will begin. Sincerely, s/ Louis R. Jones Mayor" cc: City Manager City Attorney City Clerk City Auditor Deputy City Managers Communications August 28, 2018 3 ADD ON HOUSING RESOURCE CENTER Dave Hansen, City Manager, expressed his appreciation to City Council for their support of the Housing Resource Center and Ribbon Cutting Ceremony on August 23, 2018. Mr. Hansen presented a video created by the Communications Department highlighting the Housing Resource Center and services offered. Vice Mayor Wood expressed his pride and appreciation to Andrew M Friedman, Director- Neighborhood Housing,for all of his continuous efforts helping the homeless, low income elderly and others with disadvantages, as well as his dedication and hard work on this project. Mayor Jones expressed his sincere appreciation to Mr. Friedman and all of his staff for all of their hard work and dedication to this project. Council Lady Wilson requested a link for the video to promote and share with local business owners who can offer employment opportunities. August 28, 2018 4 ITEM#68448 Mayor Louis R. Jones, entertained a motion to permit City Council to conduct its CLOSED SESSION, pursuant to Section 2.2-3711(A), Code of Virginia, as amended,for the following purpose: LEGAL MATTERS: Consultation with legal counsel employed or retained by a public body regarding specific legal matters requiring the provision of legal advice by such counsel pursuant to Section 2.2- 3711(A)(7). • Short Term Rentals August 28, 2018 5 ITEM#68448 (Continued) Upon motion by Councilman Dyer, seconded by Council Lady Kane, City Council voted to proceed into CLOSED SESSION at 4:13 P.M. Voting: 10-0 Council Members Voting Aye: Jessica P. Abbott, M. Benjamin Davenport, Robert M. Dyer, Barbara M. Henley, Mayor Louis R. Jones, Shannon DS Kane, John D. Moss, John E. Uhrin, Rosemary Wilson, and Vice Mayor James L. Wood Council Members Absent: None (Closed Session 4:13 P.M. - 6:09 P.M.) August 28, 2018 6 CERTIFICATION ITEM#68449 Mayor Jones RECALLED the SPECIAL FORMAL SESSION to order at 6:09 P.M. Upon motion by Councilman Dyer, seconded by Councilman Uhrin, City Council CERTIFIED THE CLOSED SESSION TO BE IN ACCORDANCE WITH THE MOTION TO RECESS Only public business matters lawfully exempt from Open Meeting requirements by Virginia law were discussed in Closed Session to which this certification resolution applies. AND, Only such public business matters as were identified in the motion convening the Closed Session were heard, discussed or considered by Virginia Beach City Council. Voting: 9-0 Council Members Voting Aye: Jessica P. Abbott, M. Benjamin Davenport, Robert M Dyer, Barbara M. Henley, Mayor Louis R. Jones, Shannon DS Kane, John E. Uhrin, Rosemary Wilson, and Vice Mayor James L. Wood Council Members Absent: John D. Moss Left at 5:11 P.M August 28, 2018 G/141 ;B@4C S 4,; pa , RESOLUTION CERTIFICATION OF CLOSED SESSION VIRGINIA BEACH CITY COUNCIL WHEREAS: The Virginia Beach City Council convened into CLOSED SESSION, pursuant to the affirmative vote recorded in ITEM#68448 Page 5 and in accordance with the provisions of The Virginia Freedom of Information Act; and, WHEREAS: Section 2.2-3712 of the Code of Virginia requires a certification by the governing body that such Closed Session was conducted in conformity with Virginia law. NOW,THEREFORE,BE IT RESOLVED: That the Virginia Beach City Council hereby certifies that,to the best of each member's knowledge,(a)only public business matters lawfully exempted from Open Meeting requirements by Virginia law were discussed in Closed Session to which this certification resolution applies; and, (b) only such public business matters as were identified in the motion convening this Closed Session were heard, discussed or considered by Virginia Beach City Council. ,AA . 4manda Barnes, C City Clerk August 28, 2018 7 CITY MANAGER'S BRIEFINGS PENDING PLANNING ITEMS ITEM#68450 6:10 P.M. Mayor Jones welcomed Carolyn Smith, Planning Administrator and Jimmy McNamara, City Planner. Ms. Smith expressed her appreciation to the City Council for their continued support: rt • Virginia Beach Planning Items September 18, 2018 City Council Meeting There is one (1)Planning Items scheduled for September 18th: Providence Presbyterian Church Agenda Item Council District Kempsville Location 5497 Providence Road **Item to be heard at the September 13,2018 Planning Commission public hearing" P r,_ t ."44' ° f1'+ A72.\� Conditional Use Permit(Child Care Education Center in Religious Use) Staff recommends Approval August 28, 2018 8 CITY MANAGER'S BRIEFINGS PENDING PLANNING ITEMS ITEM#68450 (Continued) Providence Presbyterian Church tfc,,...„...0 •.• .,,, , .SKg • Child care to operate within the existing church • Anticipated enrollment of 50 children between the ages of 234and 5 < • No exterior changes to the building are proposed _„ Mayor Jones expressed his appreciation to Ms. Smith for the presentation. August 28, 2018 9 CITY MANAGER'S BRIEFINGS SHORT TERM RENTAL DISCUSSION ITEM#68451 6:12 P. M. Mayor Jones opened the Short Term Renal Discussion and provided a letter from City Attorney, Mark Stiles, dated August 24, 2018, which is attached hereto and made a part of the record. August 28, 2018 4S c '. 0 / ' tip S City of Virginia 13 each .t r 7707 t:tv. 4t c.�o�99s • 04G z k Op OUR NArO- VBgov.com MARK D.STILES CITY ATTORNEY MUNICIPAL CENTER,BUILDING 1 2401 COURTHOUSE DRIVE VIRGINIA BEACH,VA 23456-9004 (757)385-4531 FAX(757)385-5687 TTY: 711 August 24, 2018 Mayor Louis R. Jones Members of City Council Municipal Center 2401 Courthouse Drive Virginia Beach, VA 23456 Re: Short Term Rentals Dear Mayor Jones and Councilmembers: This letter summarizes the cumulative results of the council discussion to date on the crafting of a new draft of a Short Term Rental ("STR") Ordinance. As with my prior letter, the guidance provided at the most recent meeting (August 21) is underlined and italicized for your ease of reference and items remaining for discussion/direction are identified. Direction Given to Date: • Home sharing will be a principal ("by right") use throughout the City conditioned only upon registration with the Commissioner of the Revenue (COR) and payment of applicable Transient Occupancy Taxes (TOT). • Short term rentals will be a principal use only in designated overlay or zoning districts. Outside of those districts, a STR will require a Conditional Use Permit ("CUP"). o Note: The City must permit short term rentals as a principal/by right use in the area defined by the Sandbridge SSD boundary pursuant to legislation enacted by the General Assembly earlier this year. • All CUP's would include an expiration date that is two years from the date of adoption. The process for renewal of the CUP will be administrative and performed by the Planning Department; however, the Planning Department shall notify the City Council in writing prior to the renewal of any CUP for an STR, where the STR has been the subject of neighborhood complaints or code violations. Mayor Louis R. Jones Members of City Council Short Term Rentals August 24, 2018 Page 2 of 4 • Grandfathering: All existing Home Shares and STR's (as evidenced by registration with the COR and payment of applicable TOT) will be allowed to continue. • The date for determining when a property has qualified for grandfathering will be July 1, 2018. O Any future alteration (or cumulative alterations) that expand the overall square footage of the residential structure utilized as an STR by more than 25% or 1,000 square feet, whichever is less, would terminate the grandfathered status. • The grandfathered status shall run with the land but shall expire if the property is not registered for STR use or has not paid transient occupancy taxes for more than two consecutive years. Regulations • Consistent with the text of Virginia Code §15.2-983(D)the regulations applicable to STR's arise under the City's general land use and zoning authority and will be contained in the City Zoning Ordinance. fo All STRs shall be required to post summaries of applicable City regulations inside the dwelling. O All STRs shall be required to provide evidence of $1,000,000 of insurance coverage applicable to the STR activity at the time of registration and upon renewal. • The ordinance will prohibit STRs from having amplified noise between 10:00 p.m. and 10:00 a.m. • The ordinance will require that all trash be placed in automated bins and will authorize private Saturday pick-up in Sandbridge. Council may also authorize private hauler pickup in other areas if and when additional overlays are created. O The ordinance will require that a point of contact be identified who can respond to the STR within 30 minutes. Such response does not necessarily require travel to the STR location. • The ordinance shall provide that a Special Events permit must be obtained for any event with an attendance of over 50 people and with a maximum attendance of 100, with a limit of 3 permits per property per year. O Each STR may display a sign of up to 4 square feet in size. Architecture signs naming the structure are excluded from this limitation. @ To the extent permissible under state law, the ordinance shall require interconnected smoke detectors (such detectors may be wireless), a fire extinguisher and, where natural gas service is present, carbon monoxide detectors be installed in each STR. Mayor Louis R. Jones Members of City Council Short Term Rentals August 24, 2018 Page 3 of 4 Each STR must register with the Commissioner of the Revenue and the collection and payment of all applicable Transient Occupancy Taxes is required. Initial Overlays. No additional overlays (other than in Sandbridge) will be created at the time of the enactment of the STR ordinance. Future Overlays The following is the process for future consideration of STR overlays by the Council: • 50 property owners in a proposed STR Overlay must submit a written request to City Council identifying the boundaries of the proposed Overlay and requesting a public hearing on the issue. • A public hearing shall be held after notifying all property owners in the proposed Overlay. If possible, the hearing should be held in the boundaries of the proposed Overlay. • After the public hearing a revision to the zoning ordinance adding this area as an overlay, and adding conditions, shall be placed on City Council's agenda for its decision for referral to the Planning Commission. • If referred, the ordinance shall go through the required procedure (Planning Commission and then City Council.) • What should be the maximum occupancy of the STR? o 2 per bedroom + 4 in Overlays Note: The City Attorney's Office will provide a closed session briefing to the Council at a Special Meeting called by Mayor Jones on Tuesday, August 28. The purpose of that briefing is to discuss the principle of uniformity in zoning matters and how that principle effects the proposed regulations of short term rentals. Mayor Louis R. Jones Members of City Council Short Term Rentals August 24, 2018 Page 4 of 4 Issues Still to be Addressed: • What should be the permissible number of rental contracts per consecutive 7 day period? o No limit or 1 or 2 or multi-family (2) vs. single family (1) distinction or limitation on number of rental nights per year • What parking requirements should be imposed? o Must all guests be able to park onsite or is off-site parking permitted? o Is any onsite parking requirement based on number of bedrooms or the overall size of the STR or some other factor? o Should the operator be required to submit to the City a parking plan? Please contact me if I can provide additional information or assist you in any way. Sincerely, MAL. b„<gc--- Mark D. Stiles City Attorney cc: David L. Hansen, City Manager Barry Frankenfield, Planning Kevin Kemp, Planning 10 ADJOURNMENT ITEM#68452 Mayor Louis R. Jones, DECLARED the City Council SPECIAL FORMAL SESSION ADJOURNED at 7:03 P.M. 401111. - ••tats Chief Deputy -ity Clerk / / latZ-'------ Amanda Barnes, MMC Louis R. Jones City Clerk Mayor City of Virginia Beach Virginia August 28, 2018