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Home My WebLink AboutCC 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: https://cityofpa.webex.com/cityofpa/onstage/g.php?MTID=e7adec1525f7b5e6d33d55fa349caf7ec 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