Reno City Council
Wednesday, June 11, 2014
What Happened
The Reno City Council met for approximately 5 hours and voted on 28 items, ranging from routine approvals to new tax rules and marijuana regulations.
Key Decisions
APPROVED — Transient lodging tax expansion to owners of 1-2 rental units (Bill 6905, introduction only) — Unanimous — Expected to generate $400,000 annually in new tax revenue from short-term rentals like Airbnb and VRBO properties. Second reading delayed to June 25 pending clarification of tax rates and business license requirements.
APPROVED — Council chamber production equipment upgrade — 5-0 — $250,000 from PEG franchise fees (reducing fund balance to $200,000 with no future PEG revenue expected).
APPROVED — Medical marijuana spacing measurement using front door to property line as straight line — 4-1 — Determines how the 1,000-foot spacing requirement will be measured for new dispensaries.
APPROVED — Ordinance allowing warehouses and distribution centers in downtown Wells Avenue mixed-use zone (Bill 6903) — Expands permitted uses in that district.
APPROVED — Street abandonment allowing ATT Nevada to proceed with conditions — Enables potential redevelopment in Midtown District.
APPROVED — Memorial Drive right-of-way abandonment — Unanimous.
APPROVED — CAC (Community Assistance Center) task force formation — Authorizes group to oversee homeless services and shelter operations.
APPROVED — Well transfer to USGS for groundwater monitoring — Eliminates city's well abandonment costs.
APPROVED — Regional business licensing system interlocal agreement — $472,222 commitment with regional partners (Washoe County, City of Sparks, District Health). Decision on financing resolution continued to June 25.
Debated But Not Resolved
Regional business licensing system financing — Council member concerned that committing to $300,000 medium-term loan limits budget flexibility given projected 2015 deficits and recent 33 public safety layoffs. Staff argued cost savings justify commitment. Next step: Council votes June 25 after staff provides cost-benefit analysis including $20,000 annual postage savings.
Medical marijuana facility accessories — Debate over whether dispensaries can offer secondary products (paraphernalia, t-shirts) or be limited to principal use only. Next step: City indicated it will address through business license performance agreements rather than ordinance language.
U.S. Bank drive-through conformity — Council member disputed staff's interpretation of non-conforming code regarding fast-food drive-throughs versus existing bank ATMs in Midtown District. Next step: Further review required at business license and site plan stages.
Business license requirements for short-term rentals — Unclear whether new lodging tax requires business licenses for duplexes and multi-unit properties renting short-term. Next step: Legal staff to clarify before transient lodging ordinance second reading June 25.
CAC task force transparency — Council member questioned why homeless services task force is not formally appointed by Council with public agendas and minutes. Next step: Staff to provide meeting documentation and invite council members to attend.
What to Watch
$1,900,000 — Community Action Center shelter operations, resource center, and security — Funded by emergency shelter grants ($151,000), City CDBG ($477,000), Washoe County state funds ($1,234,000), and City of Sparks CDBG ($100,000).
$250,000 — Council chamber production equipment — PEG franchise fees.
June 25 council meeting: Final votes on transient lodging tax expansion (Bill 6905) and regional business licensing system financing. Legal staff must clarify whether short-term rental owners need business licenses.
Medical marijuana ordinance (Bill 6904): Still pending full council vote after spacing measurement decision. Secondary use policies (paraphernalia sales, lounges) will be handled through separate business license agreements rather than ordinance language.
Plum Lane sanitary sewer: Council directed staff to research assessment district procedures and funding mechanisms for property owners wanting hookups to newly installed line.
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