Item 3A
July 2, 2004
MEMORANDUM
TO: The Honorable Mayor
and Members of the City Commission
FROM: Jim Hanso
Cit
SUBJECT: Follow-up eport
AGENDA ITEA'I #3A
JULY 12, 2004
Lease for 10th Street Parking; Included as an action item on the agenda for the 7/12/04 meeting
is a resolution that would authorize execution of leases with the ten townhome owners on 10th
Street for lease of parking places for $300.00 per year. City Attorney Alan Jensen recommended
that the best way to authorize these leases is through the approval of a resolution. In a related
issue, city staff has investigated the possibility of installation of parking places at Mandalay Park
at the intersection at 16th Street and Ocean Avenue. At least ten new places can be created on the
south end of the park without the loss of any large trees. Public Works Director Rick Carper will
be available to make a brief report on this project at the July 12th meeting.
Short Term Rentals; Complaints have recently been passed along to the staff by City
Commissioners about people leasing their homes close to the beach for short term (weekly)
rental. Upon investigation, it was determined that several property owners were probably
violating the city's zoning restrictions (and possibly the state law) by leasing their units on a
~,,, short term basis and the owners were notified of the city's rules by mail.
Short term, or vacation, rentals are considered a commercial activity. Unless there is an
~„ expressed provision to allow these in residential zoning districts, they are not a permitted use.
There does not appear to have ever been a provision to allow these in residential districts in
Atlantic Beach. City regulations currently permit these short-term rentals in the commercial
~„ general (CG) district and then only with an approval of a Use by Exception. The specific
language of the ordinance is an follows:
Hotel, motel, motor lodge, resort rental, bed and breakfast or tourist court ~~shall
mean a building, or a portion of a building, containing individual guest rooms or guest
accommodations for which rental fees are charged for daily or weekly lodging. This
definition shall not include private homes leased for periods exceeding ninety (90) days".
Water/ Sewer Rates; Two allegations about items funded from the City's Water and Sewer
funds were made at the last Commission meeting that were incorrect. The first was that the
Water and Sewer funds pay $1.7 million per year in bond payments for streets and drains
projects. The total bond payment for the 1996 Revenue Bonds this year is budgeted at
$1,590,430. The payments are allocated to the funds in the same percentage as the bond proceeds
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AGENDA ITEM #3A
JULY 12, 2004
were actually used for capital projects. Of the $1.59 million in total bond payments, $330,000 is
paid from the Stormwater Fund.
A second allegation was about the excessive transfer made from the Water and Sewer Funds to
the General Fund and a recommendation that property taxes be increased instead. The yearly
amount of the transfer is approximately 25% of the revenues from outside city customers. It was
established as a return on investment when the Buccaneer water and sewer system was
purchased. Inside city customers are paying water and sewer rates that are essentially equal to the
City's cost to provide the service. If the rates were reduced and taxes increased as recommended
by some members of the public, some of the burden of paying for City services would be shied
from outside customers to inside customers. Another probable outcome would be that inside city
water and sewer rates would be lower than the City's cost to provide them which is opposite both
good accounting practices and conservation-based rate making.