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HomeMy WebLinkAboutMINUTES Town Board 2016-03-30Town of Estes Park, Larimer County, Colorado, March 30, 2016 Minutes of a Regular meeting of the Board of Trustees of the Town of Estes Park, Larimer County, Colorado. Meeting held in the Town Hall in said Town of Estes Park on the 30th day of March 2016. Present: Also Present: William C. Pinkham, Mayor Wendy Koenig, Mayor Pro Tem Trustees John Ericson Bob Holcomb Ward Nelson Ron Norris John Phipps Frank Lancaster, Town Administrator Greg White, Town Attorney Jackie Williamson, Town Clerk Larimer County Commissioners Tom Donnelly, Lew Gaiter and Steve Johnson Absent: None Mayor Pinkham called the meeting to order at 7:00 p.m. and all desiring to do so, recited the Pledge of Allegiance. ACTION ITEM: 1. TOWN OF ESTES PARK ORDINANCE #10-16 - PUBLIC HEARING — AMENDMENTS TO THE ESTES VALLEY DEVELOPMENT CODE RELATED TO VACATION HOME REGULATIONS. Planner Kleisler provided a review of the amendments to the vacation home regulations to address growing issues related to short-term rentals within the valley. In 2010, the Development Code was amended to allow vacation rentals as a principle use throughout the Estes Valley rather than as an accessory use. Larimer County prohibited vacation homes prior to these changes in the Estes Valley Development Area. Vacation rentals have increased each year since the changes in 2010, bringing with them ancillary services such as local marketing websites and professional property managers. The increase in rentals is expected to increase for the foreseeable future. The proposed amendments, particularly those related to neighborhood communication, are critical in facilitating harmonious relationships in residential neighborhoods. The Estes Valley Planning Commission was directed by the two Boards to review and provide a recommendation on the concept of a cap. The Commission held two public hearing at their regular scheduled meetings in February and March, and after review recommended that a valley -wide limit on the number of annual operating/business licenses be limited to 700, with an annual review by the Board. The proposed limit would be approximately 10% of the current housing market. This limit would have the greatest impact to residential neighborhoods. If approved staff would manage a waitlist for properties once the 700 cap was reached. Neighborhood communication would facilitate communication between the vacation home owner and the nearby property owners. The EVDC does not require neighborhood notification through the licensing process. The proposed regulations would require an internal posting for renters to include items such as local contact, maximum occupancy, water and gas shutoff locations, quiet hours, etc.; require a reference to the property's Board of Trustees — March 30, 2016 — Page 2 permit/license number with all online listings; and require that a written notice be mailed to nearby neighbors providing the local contact and owner contact information. The mailings would not constitute a comment period for the permit issuance. Enforcement regulations have been drafted using existing regulation including the Community Development Director may deny or withhold a permit/license during the annual renewal process until a violation has been corrected or resolved in court; the Community Development Director may call a public hearing to revoke a vacation home permit pursuant to Section 12.4.A.1 as a result of a code violation; and revise the required 15-day period for the property owner to address the violation by making the 15-days optional by the Code Enforcement Officer. The Estes Valley Planning Commission has requested the Commission be the appealing authority rather than the Town Board or the County Commissioners. The Code Compliance Policy 480 would be revised following the adoption of the proposed Ordinance to include specific information about how staff administers the new regulations such as revocation of a license. Staff proposes the new policy would be drafted for approval by the Town Administrator within 30-days from approval of the Ordinance. Linda Hardin/Code Enforcement Officer reviewed the current procedures outlined in Policy 480 for complaints filed. She stated disturbance complaints, noise and lighting complaints are addressed by the Police or the Sheriff. These complaints occur most often during the weekends. Staff addresses most complaints through voluntary compliance and works up to stop work orders, fines and Municipal Court. The revised policy would be amended to address vacation homes separately from other violations. Staff completed a review of VRBO listings in the Estes Valley and found 440 vacation homes with 107 not permitted/licensed. 100 Notices of Violations were sent earlier this year causing an increase in the number of applications being processed. Mayor Pinkham opened the public meeting. Public comments were heard against the proposed regulations and have been summarized from Heidi Welsh, Seth Smith, Nick Thomas, Martha McCarver, Millicent Cozzie, Carol Beidleman, Eric Blackhurst, Judy Anderson, Eric Marske, William Kisfer, Betty Harrison, Ed Peterson, Doug Bigge, and Jeff Moreau. Comments included the approval of a new complaint process and enforcement regulations would be developed by staff without a public process. Vacation home owners are being targeted by the proposed regulations. The new task force being formed by the County should address enforcement regulations before they are implemented. There needs to be a definition of guest/individual. There is a fundamental disconnect in enforcement and what the public wants from enforcement which should be completed locally. Government should not regulate personal property rights and the proposed regulations could be perceived as a taking of property. Concern raised by realtors on how they would be notified if a vacation home permit/license becomes available once the cap is reached. Stronger language on noise control and outdoor activities should be addressed. Current enforcement has already proven to work and regulating a diverse industry with a one size fits all approach will not work. Enforcement should be addressed to manage vacation home rentals with a fine system. Concerns were heard on how to comply with items such as marking of property lines, exterior lighting standards and gas shutoffs when Excel does not permit an individual to shut off the gas. Those speaking in favor of the proposed regulations included Theresa White, Tom Hochstetler, Bob Leavitt, Carol Beidleman, Bob Rising and Mick Scarpella. The proposed regulations place the responsibility on the vacation home owners and some responsibility should be placed on the renters. Vacation homes are a commercial business that does not belong in residential neighborhoods and should be taxed as a commercial property. These properties would impact the Board of Trustees — March 30, 2016 — Page 3 local taxing entities such as schools and hospitals negatively. Requested the Boards consider a 4% cap to protect residential neighborhoods and limit the number in each neighborhood. Mayor Pinkham closed the public hearing. Town Board comments were summarized: the public has highlighted the need to have thoroughly vetted enforcement procedures in place for vacation rentals, a lack of good information on violations, there would be an inequity in enforcement of regulations in the County as Sheriff Smith has stated a lack of staff to address code enforcement issues within the unincorporated Estes Valley; approval of a cap would be premature without a better understanding of the number of permits issued; concern with the quality of life for those living among vacation rentals and how an unlimited number may impact the character of the neighborhoods; and the general consensus of the Board was to move forward with the proposed regulations without a cap at this time, as further research on the current numbers would be needed before a specific number could be adopted. Mayor Pro Tem Koenig requested a number of changes to the proposed regulations including 5.1.B.1.a.2 add the wording by phone or cell phone, 5.1.B.1.c.4 regarding accessory buildings be removed from the code, 5.1.B.1.c.7 should align quiet hours with hotels, the notice requirements should be updated to reflect those outlined and recommended by staff, 5.1.B.1.g should be updated to explicitly state ADUs cannot be rented at the same time as the primary unit is rented as a vacation home. Commissioner Gaiter recommended the exclusion of A or A-1 zoned properties as well as any bed and breakfasts from the proposed cap. Commissioner Gaiter also requested that a definition of guest be included in the Ordinance. Commissioner Johnson stated support of the amendments recommended by Commissioner Gaiter. Trustee Nelson commented the proposed regulations do not adequately address the enforcement issues and the difference between issues addressed by law enforcement and code enforcement. He further stated he would not support the proposed Ordinance with a cap and would submit the Boards should wait to gather further data on how many permits have been issued before setting a cap. Attorney White read Ordinance #10-16. It was moved and seconded (Ericson/Phipps) to approve Ordinance #10-16 with the deletion of 5.1.B.1.a.5 Density/Cap. A substitute motion was made. It was moved and seconded (Norris/Holcomb) to approve Ordinance #10-16 with the deletion of section 5.1.B.a.5 — Density, the exclusion of A and A-1 zoned properties and bed and breakfast from any future cap consideration, define guest, add the local contact must be available by phone, delete section 5.1.B.1.c.4 related to accessory buildings, remove the requirement for copies of the mailing list to be provided under section 5.1.B.1.d.3.c, clarify under section 5.1.B.1.e.1.i that accessory dwelling units are not to be occupied as a vacation rental at the same time as the primary dwelling unit, and develop the enforcement procedures for review by both the Town Board and the County Commissioners before moving forward with enforcement, and it passed with Mayor Pro Tem Koenig and Trustee Nelson voting "No". County Commissioner Donnelly opened the Board of County Commissioner meeting. Discussion ensued with Commissioner Johnson stating concern with regard to the lack of permanent housing within the Estes Valley and the lack of work force housing. As Board of Trustees — March 30, 2016 — Page 4 the trend to convert permanent housing into vacation rentals grows without a cap on short-term rentals, the quality of the community would be altered. Commissioner Gaiter agreed and recommended a cap with the exclusion of A and A-1 zoned properties and bed and breakfasts. Commissioner Gaiter moved that the Board of County Commissioners adopt the Ordinance with a cap of 700 on short-term rentals excluding A and A-1 zones and bed and breakfasts, with modifications to exhibit A to move Paragraph 5.1.B.1.a.(5) as it relates to density to create a new paragraph 5.1.B.3.c only putting the density in vacation rentals, excluding bed and breakfasts; and additionally, the wording should be changed from "the total number of annual operating permits shall be limited to 700" to "the total number of annual operating permits shall be limited to 700 excluding vacation rentals in the A and A-1 zones. The motion passed unanimously. Town Attorney White acknowledged the Boards had approved language that was not in agreement, and therefore, could not be codified in the Development Code. Administrator Lancaster stated the only disagreement was the cap. Discussion followed with Commissioner Gaiter stating agreement with the recommended code changes proposed by the Town Board; however, there must be a cap to protect the character of the neighborhoods. He would be willing to discuss the 700 number. Mayor Pro Tem Koenig commented on the need to set a reasonable cap that looks at the distribution because the number alone would not protect the integrity of the neighborhoods. Trustee Norris agreed and stated the two Boards do not have the information needed to make a decision. Trustee Holcomb would be hesitant to set a cap at this time. Trustee Ericson requested the task force complete its work and have them also address the cap. Trustee Nelson would like to have the information prior to making a decision and acknowledged all 10 of the elected officials are concerned with the quality of life for its citizens. Town Attorney White suggested the two Boards reconvene within the next 30 days to discuss the item of a cap further. Whereupon Mayor Pinkham adjourned the meeting at 7:5 William C. Pinkham, Mayor JacCv Williamson, Town Clerk