HomeMy WebLinkAboutMINUTES Town Board Study Session 2024-11-12Town of Estes Park, Larimer County, Colorado November 12, 2024
Minutes of a Study Session meeting of the TOWN BOARD of the Town of
Estes Park, Larimer County, Colorado. Meeting held at Town Hall in the
Board Room in said Town of Estes Park on the 12th day of November,
2024.
Board: Mayor Hall, Mayor Pro Tem Cenac, Trustees Brown,
Hazelton, Igel, Lancaster, and Younglund
Attending: Mayor Hall, Trustees Brown, Hazelton, Igel, Lancaster, and
Younglund
Also Attending: Town Administrator Machalek, Town Attorney Kramer, and
Recording Secretary Richards
Absent: None
Mayor Hall called the meeting to order at 4:45 p.m.
ANNEXATION OVERVIEW.
Director Careccia provided an overview of the Town annexation process stating that
Colorado Revised State Statutes (CRS) provide annexation authority to the town and
that state annexation procedures are followed to incorporate areas into town limits and
service areas. He noted that requests to annex property are initiated by the property
owner by petition, required 1/6th of the property boundary be adjacent with the town
boundary, and would ultimately require Board approval of incorporation. Board direction
was requested on the level of interest in annexing unincorporated areas; what areas
should and should not be considered; should unincorporated enclaves and peninsulas
be pursued; should municipal services continue to be offered without a strict
requirement to annex and should a designated Growth Boundary be identified where
future annexations are encouraged. Advantages of developing a town annexation policy
included support toward the 2024 Estes Forward Comprehensive Plan and greater
consistency with the disadvantage of the amount of staff time needed to prepare. Board
discussion has been summarized: request for information on how other municipalities
are integrating with their county’s annexation processes; whether this process could be
combined with the upcoming Building Code revisions; questioned the value in
developing a policy; what may be the financial gain or loss in annexing residential
versus commercial property; support for development of a policy to provide consistency
for all parties involved and control of future development to town standards; request for
staff to identify enclaves, peninsulas, areas eligible for annexation; and additional
information on flagpole annexation. Director Careccia stated that working with Larimer
County on an annexation policy could begin in early 2025 and that staff would prefer to
develop the policy concurrently with the Building Code revision process without delaying
either timeline.
UTILITY RATES FOR SERVICE AREAS OUTSIDE OF TOWN.
Director Bergsten requested Board direction on whether to pursue approval of
differential electric utility rates for service areas outside of town limits and compared the
necessary procedures to adjust water and electricity rates based on service area. He
explained that a court case had established that different water utility rates could be
charged inside and outside of town limits without justification, however different electric
utility rates would require detailed justification and be subject to review and approval by
the Public Utilities Commission (PUC). The process of developing differential rates
would include the cost, administratively heavy nature of researching comparable rates,
and justifying the proposed rates. Board consensus was to not pursue differential
electric rates due to the cost and associated coordination with the PUC.
Town Board Study Session – November 12, 2024 – Page 2
HOSTED SHORT-TERM RENTALS.
Mayor Hall polled the Board on whether to hear public comment as part of the
discussion; Board consensus was to not hear public comment. Town Clerk Williamson
provided a summary of where the conversation left off at the August 27, 2024 study
session. Board direction was requested on remaining items including what does it mean
to be hosted; the definition of “resident” in relation to hosted short term rentals; which of
three options to pursue and how to address bed and breakfasts (B&B) licensed prior to
Ordinance 11-24. She presented three options for consideration: Option 1: Separate
Hosted Vacation Home Category which would allow occupation of a portion of the home
by the “resident” while another portion is rented nightly to one party; Option 2: Remove
Prohibition on Residency through the removal of current language in the Estes Park
Municipal Code that does not allow the “owners” to occupy their home while it is being
rented; or Option 3: No Change, maintaining the current definition and requiring owners
to not occupy a vacation home while it is being rented.
Option 1 would all long-term housing for the “resident”, and therefore, potentially reduce
the neighborhood impacts. The workforce housing regulatory linkage fee would
not apply with this option. Conversely this option may incentivize homeowners to
identify as hosted based on the current residential cap and a reduction in fees. Staff
indicated this option would be difficult to enforce and verify the “resident” was present
during rental of a portion the home. Option 2 would be supported due to its simplicity,
use of the current cap, no new category or fee changes, the property could by
hosted or unhosted throughout the year, and no additional enforcement needed.
Staff noted the hosted use may encourage non-permitted uses such as duplexes in
single-family zoning districts. Option 3 would directly impact current B&B owners
which must come into compliance with Ordinance 11-24 by January 2, 2026 or cease
operation.
If the Board were to permit hosted short-term rental use and currently license B&Bs are
convert, regulatory items for consideration included the requirement of a life safety
inspection, compliance inspection, and the new licenses would not be transferrable in
the future. A significant consideration would be the need to exceed the residential cap to
allow current B&Bs to change license types, thereby limiting movement on the current
vacation home waitlist.
Board discussion ensued and has been summarized: Support for Option 1 included the
utilization of two housing spaces, presence of an onsite resident and reducing
community impact while providing an income source for the homeowners; support for
Option 2 included its simplicity and equally addressing the issue; support for Option 3
would allow time for previous revisions to the B&B regulations to settle; what challenges
exist from the enforcement perspective; support for maintaining current cap for
simplicity and maintenance of community voice; support for continuing application of the
workforce housing regulatory linkage fee because the homeowner could alternatively
choose to rent long term; importance of hearing from staff on enforcement challenges;
consideration for grandfathering B&Bs in operation above the current cap limit; how
would eligibility for a B&B to convert to a hosted short-term rental be determined;
importance of not implementing an option without evidence of its enforceability or
budget to support increased efforts; and acknowledgement of the option to long term
rent for B&Bs not wishing to come into compliance.
Attorney Kramer offered cap adjustment options including permanently inflating the cap
or inflating only by the number of existing B&B licenses wishing to become hosted.
Town Clerk Williamson clarified that long term rentals of 30+ consecutive nights are not
regulated by the Town. She asked if community meetings were desired by the Board
prior to a decision being made. After further conversation, it was determined to bring
back an additional conversation at a study session to address Board comments.
FUTURE STUDY SESSION AGENDA ITEMS.
Mayor Hall requested an additional item at a future meeting to consider $38,000 in
additional funding to EVICS. Town Administrator Machalek proposed hosted short-term
Town Board Study Session – November 12, 2024 – Page 3
rentals, Stanley Park Master Plan and Performing Arts Center, financing for a new
Police Department facility, and House Bill 1175 as future study session topics. Hearing
no opposition, all topics would come forward.
COMMENTS & QUESTIONS.
None.
There being no further business, Mayor Hall adjourned the meeting at 6:40 p.m.
Rachel Richards, Recording Secretary