HomeMy WebLinkAboutCC Agenda 04/26/2022
APRIL 26, 2022
City of Port Angeles Council Meeting Agenda
This meeting will be conducted virtually.
By Council decision, meetings will be held virtually when the COVID-19 risk is Moderate or High, per the dashboard
located at https://www.clallam.net/coronavirus/, at the time the meeting agenda is advertised. Meetings will be held in
person with a virtual option (hybrid) when the COVID-19 risk is Very Low or Low, per the dashboard located
at https://www.clallam.net/coronavirus/, at the time the meeting agenda is advertised.
At the time the April 26, 2022 City Council agenda was created, the dashboard indicated the County was in a moderate
risk level, therefore, the April 26, 2022 meeting will be conducted virtually. To attend the meeting, follow the instructions
below, or visit www.cityofpa.us for more info regarding our virtual meetings.
For audio only please call: 1-844-992-4726
Use access code: 2554 876 1306
Join through the Webex link:
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The access code and link are good for the April 26, 2022 meeting only.
The purpose of the special meeting is for City Council to hold a Work Session to receive a presentation by Madrona Law
Group regarding issues and options surrounding short term rental regulations. Council Q&A and discussion to follow
presentation. No action to be taken.
A. Call to Order – Special Meeting at 5:00 p.m.
B. Roll Call
C. Madrona Law Group Presentation
• Presentation
• Council Q&A and discussion
D. Adjournment – 7:00 p.m.
The Mayor and council members encourage citizen participation. An opportunity for public comment will be available at
a later date. Upcoming meeting information can be found on the City website: www.cityofpa.us/583/Meetings-Agendas.
Community members may also contact City Council by email at council@cityofpa.us, or written letter mailed to 321 East
5th Street, Port Angeles, WA 98362 or by dropping it by City Hall. Learn more by visiting: www.cityofpa.us/137/City-
Council
Kari Martinez-Bailey
City Clerk
(p) 360-417-4634 │TTY 360-417-4645
kmbailey@cityofpa.us
PAMC Re-Envisioning:
Regulating Short Term Rentals
PRESENTED BY:
ANN MARIE SOTO & RACHEL B. TURPIN
APRIL 26, 2022
Presentation Outline
Overview of Short Term Rentals (STRs)
History of STRs in Port Angeles
Stakeholder input received to date
Why are STRs regulated?
Types of regulations
What do other cities do?
Administering STR regulations
Next steps
Short Term
Rental
Overview
What are Short Term Rentals?
Residential dwelling units (or portions thereof) that are rented for a fee on a short-term basis
(fewer than 30 days).
Often referred to as “vacation rentals”
May be privately rented or rented through commercial platforms such as AirBnB and VRBO.
PAMC 17.08.095(D) defines STR as:
Lodging or guest rooms used, rented or occupied for guest sleeping purposes for a period of
time 30 days or less, and that contain kitchen facilities for food preparation, including, but not
limited to, refrigerators, stoves and ovens. This definition includes dwelling units used, rented or
hired out for vacation homes or short-term rentals that allow guests to stay for 30 days or less.
Dwelling units used, rented or hired out for longer than 30 days are considered long-term
rentals and not extended stay lodging.
Advantages of Short Term Rentals
Serve a quality niche in the tourism sector that hotels don’t provide
Provide income for property owners/opportunities for upward mobility
Provide temporary workforce housing
Potential Drawbacks of Short Term
Rentals
May reduce available rental market
May create housing affordability challenges
Housing may go unoccupied for large portions of the year
Not everyone can often afford to own, renovate, and navigate jurisdictional
requirements to establish STRs
History of Short Term Rental
Regulations in Port Angeles
Prior to 2009 –Only owner-occupied Bed and Breakfasts permitted in the City
2009 –code interpretation allowed for vacation rentals in Residential High
Density (RHD) and Residential Medium Density (RMD) zones
2017 –Major code changes adding short term rentals definition and as
permitted uses
Stakeholder
Input Received
to Date
Public Input
Substantial written comment and testimony both in favor of and against STRs
Madrona Survey
31% should be allowed without restriction
55% should be allowed but with certain regulations in place
6% Neutral or Unsure
7% should not be allowed
Council Input
During interviews with Madrona, councilmembers expressed a variety of
opinions on STRs, but there was no consensus
Since that time, circumstances may have changed (in part due to the ongoing
pandemic) and some councilmembers may have different opinions now
Staff Input
Concerns relating to equity and property rights
How would new regulations be administered?
Regulating
Short Term
Rentals
Why Are Short
Term Rentals
Regulated?
Maintain
affordable
housing inventory
Prevent
nuisances
Safety Revenue
Data collection Other goals?
Vacation Rental Industry Regulations
Must be 18 years old to host (usually requires identity verification)
Respond to inquiries
Accepts most requests when your calendar is free
Avoid cancellations
Maintain a high rating
Types of Short Term Rental Regulations
Size/square footage requirements
Certificate of occupancy requirements
Caps on days per year rented
Owner-occupancy requirements
Insurance requirements
Limits on number of STR agreements that can be in place at once
Requirements for short term rental agreements
Noise
Littering
Parking
Trespass
Zoning Regulations for Short Term
Rentals
Limit STR to certain zones? If so, which zones?
Greater parking requirements than other residential dwelling units?
Minimum distance between STRs?
Limits on number of STRs operating on a single property?
Limitations on length of stay or time in-between guests?
Restrictions on presence of recreational vehicles relating to STR?
Landscaping or screening requirements?
Limits on number of bedrooms that can be rented in a single residential dwelling?
Ex: Sequim Bay 23-room mansion custom built for vacation rentals
Considerations for Administering Short
Term Rental Regulations in Port Angeles
How difficult will administration and enforcement be, and which Department(s) would be involved?
Does the City have the resources needed to properly administer and enforce any new regulations?
Stringent regulations could have unintended consequences
May incentivize homeowners to sell at inflated prices instead of offering long-term rentals
STR owners may fail to register/operate illegally, depriving the City of accurate STR data
Inspections Required?
Inspection programs are resource intensive
Inspecting short term rentals but not long-term rentals may raise equity concerns
Inspections may increase risk that owners or guests will attempt to blame the City for injuries sustained on the premises
Amnesty program for non-conforming STRs?
Especially important for those that popped up during the pandemic
Simplest Options for Administering Short
Term Rental Regulations in Port Angeles
STR registration/licensing program where applicants self-certify compliance
Complaint-based enforcement
Combination of both
What do Other
Cities Do?
Bellingham
Kirkland
Leavenworth
Spokane
Walla Walla
Bellingham
Limited to one per operator in residential zones, must serve as primary residence of owner or long-
term renter for at least 270 days/year, entire unit may be rented no more than 95 days per year
Not permitted in detached ADUs and parking required in single-family residential zones
In Commercial and Urban Village Zones, there is no limit on number of STRs per operator, may be in
primary or nonprimary residence; no limit on number of days per year rented or days per year owner
must occupy
Not allowed in shoreline areas or Lake Whatcom Watershed or in units subsidized by the multi-family
tax exemption program or other housing subsidy programs
Good neighbor guidelines posted and in rental agreement, local contact available 24/7, liability
insurance required, business license required, inspection required, and must provide written notice to
adjacent property owners
Fee ranges from $370-$550 for initial application (dependent on size), plus $250 annual renewal
Kirkland
Owner, landlord, or authorized agent must live on property for 245 days per year and must be within 15 miles of property when it is rented out
If owner lives continuously at residence, no limit on rental days per year; if not maximum of 120 days per year
Max of two simultaneous STR agreements in place per property at any time
Business license required (fee dependent on gross annual income)
Lodging tax must be paid
No STRs allowed in properties that are not owner’s primary residence
No inspection requirement
Regulated through required business license; complaint-based enforcement
Leavenworth
Regulates “bed-and-breakfasts” as a conditional use, so long as the owner resides on the premises during visitor’s stay
Must be “residential in appearance”
Written management plan required (litter control, parking, noise, how occupancy limits will be enforced, emergency exit information, contact information)
Must provide owner contact information to adjacent properties, Fire Chief, and Sheriff
Maximum of two guests per bedroom (excluding children under 6)
Must meet all applicable health, fire safety, and building codes
Inspection required as part of initial conditional use application; property owner self-certifies compliance annually thereafter
Annual permit fee of $100 plus initial conditional use permit fee ($1650)
Spokane
Two categories of STRs:
Type A -requires an administrative permit; bedrooms or an entire dwelling unit can be rented, but commercial meetings are prohibited
Type B -requires a type III conditional use permit; bedrooms or an entire dwelling unit can be rented, and commercial meetings are allowed
$150 application fee ($100 for annual renewal)
Proof of business license, liability insurance, site plan showing parking, floor plan to be reviewed by Fire/Building; health permits if serving food; proof of lodging tax and retail sales tax payment upon renewal
Must provide notice of STR operation and owner’s contact information to neighboring properties
Must keep a guest log that is open for City inspection
Walla Walla
Two categories of STRs:
Type 1 –Located at owner's principal residence and where either: (1) rooms are rented and the owner is personally present at the dwelling during the rental period; or (2) the entire dwelling is rented no more than 90 total days in a calendar year
Type 2 –Not located at owner's principal residence
Type 2 banned in 2017
Those existing prior to November 9, 2017, can continue to operate if they applied for license before February 1, 2018, and can establish prior, continuous use as STR and that owner fully paid all applicable taxes
Must submit proof of property and liability insurance, floor plan, site plan, business license, tax information
Must post “good neighbor guidelines” for guests
Requires inspection by Building Official
Application fee $150; inspection fee $65
Where Do We Go From Here?
Identify goals and objectives
Gather more data
How many STRs are there in the City?
Who owns them? Port Angeles residence or “out-of-towners”
What is the effect on affordable housing inventory?
Obtain community input
Questions?
AnnMarie@MadronaLaw.com
Rachel@MadronaLaw.com
www.MadronaLaw.com