Agenda Item Title:
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Amendments to Title 15 and Title 21 of the Municipal Code related to Short Term Rentals
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Presenter:
Melissa Anderson, Zoning Administrator
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Description/Background:
At the request of the City Council, the Community Development Department is proposing to amend Title 21, Land Development Code, Chapter 11, Special Use Standards, Section 26, Residential Short-Term Rental (STR), and Title 15, Business Licensing, Chapter 11, Short-Term Rentals, Section 4, Short-Term Rental Business License Application and Renewal. The code amendments update the land use standards of residential short term rentals and the renewal requirements for short term rental business licenses.
The Short-Term Rental requirements (Sec. 21-11-26) allow residential property owners to rent their dwelling or a portion of their dwelling as a STR if they maintain occupancy of the home as their primary residence (at least half the calendar year). On August 13, 2024, the City Council held a second reading on proposed amendments to the STR regulations and made a motion for city staff to bring a proposal for code amendment through the public hearing process. Staff have prepared several proposed amendments to the STR code section which represents a refined version of the original City Council proposal for code amendments. This proposal also includes an amendment to Business Licensing (Sec. 15-11-4) by adding a requirement for verification of owner occupancy to the renewal standards.
On October 17, 2024, the Planning Commission held a public hearing and made a positive recommendation to the City Council to adopt the proposed amendments to Title 21, of the Land Development Code, relating to STRs, with the following recommendations:
1. For consistency, only one program for a STR management certification should be used. The proposed code language already states that a STR management certification shall be determined by staff; therefore, no change to the proposed code language is needed to implement this recommendation.
2. The "Occupancy During Rental Period," Section 21-11-26(c)(3) should be clarified because there is a conflict between renting 365 nights per year and the requirement for one night vacancy between each rental. This clarification has been addressed and is highlighted in yellow in the exhibits.
3. The "Urgent Response," Section 21-11-26(c)(5) has a grammatical error and it should be corrected by removing "will be issued" on the last sentence. This correction has been addressed and is highlighted in yellow in the exhibits.
The specific amendments to the Land Development Code are included as Exhibit “A” (red-lined version) and Exhibit “B” (clean version) of the Staff Report. The specific amendments to the Business License section of the Municipal Code are included separately as Exhibit “A” (red-lined version) and Exhibit “B” (clean version).
Fiscal Impact:
The Council submitted follow-up questions to staff pertaining to budgetary considerations for administering STRs. These questions relate to the purchase of STR tracking software, annual reviews of STR permits/licenses for compliance, and creating educational resources for STR operators. Staff recognize the value of all these ideas, but they each have different cost implications for implementation which is outlined in a separate memo. The memo provides a detailed response and is included with the staff report as Exhibit “C.”
Further action to be taken:
This item will be brought back to the City Council to vote on the proposal on November 19, 2024.
Recommended Action and/or Suggested Motion:
Recommendation
No action is required at this time. This is an informational item only.