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Pgs. 2-47 Agenda No.   Pgs. 2-47    
City Council - Regular Meeting
Meeting Date: 11/01/2017  
Item Title:    Ordinance Adopting Zoning and Land Use Regulations Regarding Short Term Rentals
Submitted For: Elizabeth Chamberlain
Financial Comments:
Proposed application fee recommended by the Planning Commission of $150.00 and annual renewal fee of $150.00.
Federal Funds?: No
If yes, contractor verification completed?: Not Applicable
Brief Summary of Requested Action:
Two options are presented for City Council's consideration:  (1) Permit and regulate non-owner occupied short term rentals within certain zones or (2) Prohibit non-owner occupied short term rentals within city.


Planning Commission recommendation from the December 12, 2016 public hearing:
  • Concurred with the staff recommendation (4-3 vote) with the exception of modifying the application fee  to $150.00.  Staff originally proposed two different application fees; STR Type 1 at $400 and STR Type 2 at $650. (staff report exhibit has the analysis)
  • At the public hearing 8 testified in favor of regulating STRs as recommended by staff; 11 testified in favor of either prohibiting STRs or the Planning Commission alternative which would limit STRs to the principal residence of the owner.  (see Planning Commission meeting minutes)
Since the Planning Commission recommendation was presented to the City Council on March 13, 2017, two additional City Council work sessions on short term rentals were discussed (April 10, 2017 and July 10, 2017).  At the July 10, 2017 work session, City Council consensus was to separate the two short term rental types and bring forward an ordinance addressing type 1 rentals or owner occupied short term rentals.  Staff brought forward an ordinance  to the August 9, 2017 City Council meeting that was adopted.  Ordinance 2017-23 adopted a new chapter to Title 20, permitting Type 1 Short Term Rentals (owner occupied) and regulations such as defining principal residence (utilizing the HUD definition), parking regulations, application requirements, and violations.

Two additional work sessions were held to further discuss the non-owner occupied short term rentals on August 14, 2017 and September 11, 2017.  The City Attorney's office assisted in the September 11, 2017 discussion answering questions by City Council regarding a density approach versus permitting non-owner occupied short term rentals versus a prohibition on non-owner occupied short term rentals and the legalities of each option.  City Council direction to staff at the conclusion of the work session was to bring back two ordinances for consideration to the November 1, 2017 regular City Council meeting; a prohibition of non-owner occupied short term rentals or an allowance with regulations.  Throughout this process, staff has notified an interested party list of the council work session dates as well as the city council meetings including were to access meeting agendas providing opportunities for public input and comments.  A public meeting notice for the November 1, 2017 City Council meeting was also published in the Union Bulletin on October 25, 2017, posted at city hall and the city's website on October 23, 2017 as well as emailed to the compiled interested party list.
The two ordinances before City Council are summarized as follows:
  1. Permit non-owner occupied short term rentals (type 2):
  • As a Level II review in the residential zones and a Level 1 review in the Central Commercial and Highway Commercial zones.
  • Modifies the definitions to provide clarity
  • Regulations and application process remain the same as adopted under Ordinance 2017-23 with clarification that a permit and license is required
  • The comprehensive plan policy analysis and findings support short term rentals from a economic and tourism perspective with regulations identified in the ordinance (and Ordinance 2017-23) to mitigate parking and noise impacts.
  1. Prohibit non-owner occupied short term rentals (type 2):
  • Prohibit non-owner occupied short term rentals in all zones
  • Add a new section to Chapter 20.139 - elimination of type 2 short term rentals:  permits existing type 2 short term rentals as of November 9, 2017 (see attached ordinance) to continue operation as a non-conforming use.  Requires that a permit and license be applied for no later than February 1, 2018.  Non-conforming status does not transfer with sale of the property.
  • The comprehensive plan policy analysis and findings support a ban on short term rentals from a neighborhood and housing perspective.
The supplemental/background/record information for this agenda item can be found:
Comprehensive Plan:
The ordinances before City Council include the comprehensive plan policy analysis.
Two options are before the City Council for consideration:
  1. One ordinance will permit and regulate non-owner occupied (e.g. STR Type 2) short term rentals within the residential zones as a Level II review and within the Central Commercial and High Commercial zones as a Level I review.
  2. A second ordinance would prohibit/ban non-owner occupied short term rentals within the city.
Planning Commission (4-3 vote) provided a recommendation to the City Council that would permit and regulate short term rentals.
Approved for City Council action.

Ord 33.Allow STR
Ord 33.Ban STR

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