HomeMy WebLinkAboutRES2023-037 Suing STR at 2410 Maple Street Sponsored by: Bower
CITY OF SEWARD, ALASKA
RESOLUTION 2023-037
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, APPROVING THE LAWFUL ACTION TO BRING SUIT
AGAINST A NON-COMPLIANT SHORT-TERM RENTAL AT 2410
MAPLE AND APPROPRIATING FUNDS IN AN AMOUNT NOT TO
EXCEED $10,000
WHEREAS, the property at 2410 Maple is currently operating as a non-permitted short
term rental in violation of Title 15 of the Seward City Code; and
WHEREAS,the Community Development department oversees the Title 15 Code and the
compliance therein including the operation of short term rentals; and
WHEREAS, the Community Development Department has pursued the compliance
process according to code; and
WHEREAS,administration has complied with Seward City Code 15.01.050,notifying the
property owners in writing via mail with proof of receipt on three separate occasions; and
WHEREAS, the short-term rental owner has not responded to the measures prescribed in
code and continues to operate; and
WHEREAS,this compliance situation and process has been presented to the Planning and
Zoning Commission at their March 14, 2023 regular meeting; and
WHEREAS, Seward City Code 15.01.050(2) states that if the violation has not been
corrected, the next step in the compliance process is to bring suit for fines and injunctive relief
against the non-compliant party; and
WHEREAS, taking such action requires City Council approval.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA that:
Section 1. The City Council hereby authorizes the lawful action to bring suit against a
non-compliant short term rental owner and appropriating funds not to exceed $10,000.
Section 2. Funding in the amount of$10,000 is hereby appropriated from General
Fund Unassigned Fund Balance account no. 01000-0000-3400 to Community
Development Legal Services account no. 0 1 000-1 1 22-7006-0090 within the 2023
Operating Budget.
CITY OF SEWARD,ALASKA
RESOLUTION 2023-037
Section 3. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 28th
day of March, 2023.
THE CITY OF SEWARD, ALASKA
Sue McClure, Mayor
AYES: Osenga, Calhoon, Wells, Finch, Barnwell, McClure
NOES: None
ABSENT: DeMoss
ABSTAIN: None
ATTEST:
Brenda J. Ballo , M C
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(Ci� t pRPO'TA well.
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City Council Agenda Statement
a
Meeting Date: March 28, 2023 t!
To: City Council
Through: Janette Bower, City Manager
From: Jason Bickling, Community Development Director
Subject: Resolution 2023-037: Approving the Lawful Action to Bring Suit Against a
Non-Compliant Short-Term Rental Property at 2410 Maple and Appropriating
Funds in an amount Not to Exceed $10,000
Background and justification:
City Administration requests City Council approval to bring court action for injunctive relief and fines
against a non-compliant Short-Term Rental owner.
This short-term rental owner does not have a City of Seward business license, is not registered with
the Borough for bed tax, does not have a short-term rental permit, and has not provided proof of
insurance. Additionally, they are operating a whole house rental in a Rural Residential zoning
district where whole house rentals are prohibited.
The standard compliance process is to send and initial letter that is meant to help the property
owner understand their noncompliance and explain what they need to do to become compliant, if
possible. The first letter was sent to the property owner on May 25, 2022. Subsequent letters have
gone out from the Community Development department, each one with increasing urgency and
communicating possible consequences of the property owner's continued noncompliance. The last
letter was sent by the City Attorney's office directly, in February of 2023. Each letter has been
confirmed with receipt by the owner, but neither City Administration nor the City Attorney has
received a response and the non-compliant property owner has continued operation of their lodging
business.
City Administration has had several meetings with the City Attorney in the compliance process
regarding said owners. This formal legal action is the last resort and only course of action at this
point to make these property owners come into compliance.
The actual cost of litigation is undetermined, but the City Attorney has stated that $10,000 should
provide a good buffer from actual costs and would only be reached in very unusual circumstances.
Additionally, every effort shall be made to recuperate as much of the legal costs as possible from
the non-compliant operator.
Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with (citation listed):
Comprehensive Plan: 3.2.1.2, 3.9.2.3
Strategic Plan:
Other:
198
Certification of Funds
Total amount of funds listed in this legislation: $ 10,000
This legislation (✓):
Creates revenue in the amount of: $
X Creates expenditure in amount of: $ $10,000
Creates a savings in the amount of: $
Has no fiscal impact
Funds are (✓):
Budgeted Line item(s):
X Not budgeted 01000-0000-3400 to 01000-1122-7006-0090
Not applicable
Fund Balance Information
Affected Fund (✓):
X General SMIC Electric Wastewater
Boat Harbor Parking F1 Water F1 Healthcare
Motor Pool Other
Note: amounts are unaudited
Fund Balance/Net position — restricted $ 2,597,995
Fund Balance/Net position — unrestricted/unassigned $ 7,334,752
Available Unrestricted Cash Balance: $ 10,129,608
Finance Director Signature:
Attorney Review
eX Yes Attorney Signature:
Not applicable Comments:
Administration Recommendation
x Approve
Resolution
Other:
199