Loading...
HomeMy WebLinkAboutPACKET Joint Town Board and County Commissioners 2016-12-15TOWN OF ESTES PARK BOARD OF TRUSTEES AND LARIMER COUNTY COMMISSIONERS Thursday, December 15, 2016 6:00 p.m. Town Board Room The Town of Estes Park will make reasonable accommodations for access to Town services, programs, and activities and special communication arrangements for persons with disabilities. Please call (970) 577-4777. TDD available. TOWN OF ESTES PARK ACTION ITEM: 1.HOST COMPLIANCE SOFTWARE AND SERVICES AGREEMENT CONTRACT. Director Hunt. 2.TOWN OF ESTES PARK ORDINANCE #29-16 - PUBLIC HEARING – AMENDMENTS TO THE ESTES VALLEY DEVELOPMENT CODE RELATED TO VACATION HOME REGULATIONS. Director Hunt. LARIMER COUNTY COMMISSIONER ACTION ITEM: 1.LARIMER COUNTY RESOLUTION - PUBLIC HEARING – AMENDMENTS TO THE ESTES VALLEY DEVELOPMENT CODE RELATED TO VACATION HOME REGULATIONS. Order of Proceedings: Mayor Jirsa & Commissioner Donnelly to Open the Public Hearing for the Action items. Mayor Jirsa & Commissioner Donnelly to Close Public Hearing for the Action items. Town Board & Larimer County Commissioners joint discussion. Mayor Jirsa to Open the Town Board of Trustees meeting to take action on Ordinance #29-16. Mayor Jirsa to Close the meeting. Commissioner Donnelly to Open the Larimer County Commissioners meeting to take action on the Resolution. Commissioner Donnelly to Close Larimer County Commissioners meeting. NOTE: The Town Board and County Commissioners reserve the right to consider other appropriate items not available at the time the agenda was prepared. 1 2 To: Honorable Mayor Todd Jirsa Town Board of Trustees Frank Lancaster, Town Administrator From: Randy Hunt, AICP, Community Development Director Date: December 15, 2016 RE: Host Compliance Software and Services Agreement Objective: Enter into an agreement with Host Compliance, LLC, to assist with the enforcement of vacation home regulations by identifying and gather data for non-compliant properties. Present Situation: Vacation home properties in the Estes Valley Development Area are a concern to both the property owners and neighboring residents. Identifying vacation homes that are not compliant with licensing and registration processes is difficult and time consuming. Vacation homes that have obtained proper licensing or registration are agreeing to all EVDC regulations that pertain to operating a vacation home. Those properties that are not licensed or have not registered, do not necessarily know the codes and could be violating without intent. We strive to register all vacation homes to ensure that all codes are known, and violations are minimized. By educating the property owners we are able to reduce the number of incidents. Enforcement data is difficult to track as current enforcement is shared by the Town’s Community Development Department, Police Department and Sheriff’s Office. We don’t have a system which allows for the gathering data from all sources into a format that can be usable for future enforcement actions. Proposal: An agreement with Host Compliance will assist the Code Compliance Officer to identify non-compliant properties and take enforcement action as necessary to bring them into compliance. Through regular reporting from Host Compliance, the Town will potentially be able to get all vacation homes licensed or registered, which will increase business license revenues. In addition, monitoring rental activity will improve the tax collection operations through pro-active outreach to vacation rental owners concerning their tax payment obligations. Community Development Memo 3 Non-emergency complaints and problems with vacation homes will be streamlined through Host Compliance’s 24/7 staffed hotline. Immediate contact will be made with the property owners or managers to correct the situation, when appropriate. Full documentation of all reported incidents including digital recordings, written transcripts, and any uploaded photos, video or sound recordings sent by the complainant. Weekly reports of all incidents will be provided to staff for follow through with any necessary enforcement action. Advantages This agreement will significantly improve our ability to identify non-compliant vacation rentals. The public will have a 24/7 hotline to call with issues. Licensing revenue and tax revenues will increase with pro-active approach to encourage compliance. The agreement includes a 6 month trial period whereby the Town can terminate the agreement without penalty if dissatisfied with the service. All funds paid will be refunded. Disadvantages Educating the public to call the 24/7 hotline may be difficult at first. We will need to launch a strong campaign to make this work effectively. Action Recommendation: Staff recommends the Town enter into the agreement by signing the attached agreement. The County does not need to sign this agreement as their interest will be through the existing IGA. Budget: The annual subscription service cost for Host Compliance is $50,185, and has been included in the budget by both the Town and the County. The County has agreed to contribute 50% of this cost. Level of Public Interest: High. Recommended Motion: I move to recommend approval/denial of the Host Compliance Software and Services Agreement. Attachments: Host Compliance Software and Services Agreement 4 HOST COMPLIANCE, LLC Short-term Rental Compliance Monitoring and Associated Services HCSA - 5-5-2016 - W www.hostcompliance.com 735 Market Street Floor 4 Tel: (754) 888-HOST (4678)San Francisco, CA 94103 Host Compliance Software and Services Agreement THIS SOFTWARE AND SERVICES AGREEMENT (the "Agreement") is entered into as of the January 1, 2017 (the "Effective Date"), between Host Compliance LLC, ("Host Compliance") and Town of Estes Park, with an address at 170 MacGregor Avenue, Estes Park, CO 80517 (the "Customer"). This Agreement sets forth the terms and conditions under which Host Compliance agrees to license to Customer certain hosted software and provide all other services necessary for Customer's productive use of such software (the "Services") as further described in the attached Schedule 1. 1.0 Services. 1.1 Subscriptions. Unless otherwise provided in the attached Schedule 1, (a) Services are purchased as subscriptions, (b) additional service subscriptions may be added during a subscription term, with the pricing for such additional services, prorated for the portion of that subscription term remaining at the time the subscriptions are added, and (c) any added subscriptions will terminate on the same date as the underlying subscription. 1.2 Provision of Services. Customer may access and use the Services and any other Services that may be ordered by the Customer from time to time pursuant to a valid subscription in accordance with the terms of this Agreement. 1.3 Facilities and Data Processing. Host Compliance will use, at a minimum, industry standard technical and organizational security measures to store data provided by Customer, or obtained by Customer through the use of the Services ("Customer Data"). These measures are designed to protect the integrity of Customer Data and guard against unauthorized or unlawful access. 1.4 Modifications to the Services. Host Compliance may update the Services from time to time. If Host Compliance updates the Services in a manner that materially improves functionality, Host Compliance will inform the Customer. 2.0 Customer Obligations. 2.1 Customer Administration of the Services. Host Compliance' responsibilities do not extend to internal management or administration of the Services. Customer is responsible for: (i) maintaining the confidentiality of passwords and accounts; (ii) managing access to Administrator accounts; and (iii) ensuring that Administrators' use of the Services complies with this Agreement. 2.2 Compliance. Customer is responsible for use of the Services and will comply with laws and regulations applicable to customer's use of the Services, if any. 2.3 Unauthorized Use & Access. Customer will prevent unauthorized use of the Services and terminate any unauthorized use of or access to the Services. Customer will promptly notify Host Compliance of any unauthorized use of or access to the Services. 2.4 Restricted Uses. Customer will not: (i) sell, resell, or lease the Services; or (ii) reverse engineer or attempt to reverse engineer the Services, nor assist anyone else to do so. 5 HOST COMPLIANCE, LLC Short-term Rental Compliance Monitoring and Associated Services HCSA - 5-5-2016 - W www.hostcompliance.com 735 Market Street Floor 4 Tel: (754) 888-HOST (4678)San Francisco, CA 94103 2.5 Third Party Requests. 2.5.1 "Third Party Request" means a request from a third party for records relating to Customer's use of the Services. Third Party Requests may include valid search warrants, court orders, subpoenas, open records, or any other request. 2.5.2 Customer is responsible for responding to Third Party Requests via its own access to information policies. Customer will seek to obtain information required to respond to Third Party Requests and will contact Host Compliance only if it cannot obtain such information despite diligent efforts. 2.5.3 If Host Compliance receives a Third Party Request, Host Compliance will make reasonable efforts, to the extent allowed by law and by the terms of the Third Party Request, to: (A) promptly notify Customer of Host Compliance's receipt of a Third Party Request; (B) comply with Customer's reasonable requests regarding efforts to oppose a Third Party Request; and (C) provide Customer with information or tools required for Customer to respond to the Third Party Request (if Customer is otherwise unable to obtain the information). If Customer fails to promptly respond to any Third Party Request, then Host Compliance may, but will not be obligated to do so. 2.5.4 If Customer receives a Third Party Request for access to the Services, or descriptions, drawings, images or videos of the Services' user interface, Customer will make reasonable efforts, to the extent allowed by law and by the terms of the Third Party Request, to: (A) promptly notify Host Compliance of Customer's receipt of such Third Party Request; (B) comply with Host Compliance's reasonable requests regarding efforts to oppose a Third Party Request; and (C) provide Host Compliance with information required for Host Compliance to respond to the Third Party Request. If Host Compliance fails to promptly respond to any Third Party Request, then Customer may, but will not be obligated to do so. 3.0 Intellectual Property Rights; Confidentiality 3.1 Reservation of Rights. Except as expressly set forth herein, this Agreement does not grant (i) Host Compliance any intellectual Property Rights in the Customer Data or (ii) Customer any Intellectual Property Rights in the Services, any other products or offerings of Host Compliance, Host Compliance trademarks and brand features, or any improvements, modifications or derivative works of any of the foregoing. "Intellectual Property Rights" means current and future worldwide rights under patents, copyright, trade secret, trademark, moral rights and other similar rights. 3.2 Suggestions. Host Compliance may, at its discretion and for any purpose, use, modify, and incorporate into its products and services, and license and sub-license, any feedback, comments, or suggestions Customer send Host Compliance or post in Host Compliance' online forums without any obligation to Customer. 3.3 Confidential Information. Customer, except as required by law, understands and agrees that it will not reveal, publish or otherwise disclose to any person, firm or corporation, without written authorization of Host Compliance, any Confidential Information of Host Compliance, including without limitation any 6 HOST COMPLIANCE, LLC Short-term Rental Compliance Monitoring and Associated Services HCSA - 5-5-2016 - W www.hostcompliance.com 735 Market Street Floor 4 Tel: (754) 888-HOST (4678)San Francisco, CA 94103 trade secrets, confidential knowledge, data or other proprietary information relating to the Services. "Confidential Information" means all information, written or oral, relating to the business, operations, services, facilities, processes, methodology, technologies, intellectual property, research and development, customers, strategy or other confidential or proprietary materials of Host Compliance. 4.0 Fees & Payment. 4.1 Fees. 4.1.1 Customer will pay Host Compliance for all applicable fees upfront annually. 4.1.2 Customer will pay any amounts related to the Services as per payment terms detailed on the applicable invoice. Unless otherwise indicated, all dollar amounts referred to in the Agreement are in U.S. funds. 4.1.3 Customer acknowledges that while it may choose to delay the implementation of the Services, this is not a valid reason for withholding payment on any invoices. Furthermore, the Customer will not withhold payment on any invoices for any other reason. 4.1.4 Except as expressly provided on Schedule 1, renewal of promotional or one-time priced subscriptions will be at Host Compliance's applicable list price in effect at the time of the applicable renewal. Unless Host Compliance provide Customer notice of different pricing at least 75 days prior to the applicable renewal term, the per unit pricing during any renewal term will increase by the larger of the 12-Month Consumer Price Index (not seasonally adjusted), as published by the United States Department of Labor, or five (5) percent. Notwithstanding anything to the contrary, any renewal in which the number of monitored short-term rental listings has increased or decreased from the prior term will result in re- pricing at renewal without regard to the prior term's per-unit pricing. 4.2 Taxes. Customer is responsible for all taxes. Host Compliance will charge tax when required to do so. If Customer is required by law to withhold any taxes, Customer must provide Host Compliance with an official tax receipt or other appropriate documentation. 4.3 Purchase Orders. If Customer requires the use of a purchase order or purchase order number, Customer (i) must provide the purchase number at the time of purchase and (ii) agrees that any terms and conditions on a Customer purchase order will not apply to this Agreement or the Services provided hereunder and are null and void. 5.0 Term & Termination. 5.1 Term. The initial term of this Agreement shall be one year commencing on the Effective Date, which shall automatically renew for a further period of one year upon each expiry of the then current term, unless either party provides written notice to the other party of it intention not to renew at least 45 days prior to the end of the then current term. That said, the time period until the earlier of (a) the 6- month anniversary of the Effective Date, or (b) the start date of Customer's systematic or mass outreach activities utilizing the data obtained through the Services (traditional mail, electronic mail, 7 HOST COMPLIANCE, LLC Short-term Rental Compliance Monitoring and Associated Services HCSA - 5-5-2016 - W www.hostcompliance.com 735 Market Street Floor 4 Tel: (754) 888-HOST (4678)San Francisco, CA 94103 and/or telephone campaigns), or (c) termination by Host Compliance in our sole discretion, shall be considered a trial period ("Trial Period"). 5.2 Termination for Convenience. If, for any reason during the Trial Period, Customer is dissatisfied with the Services, Customer may terminate the Subscription and all funds paid under this Agreement will be refunded and future commitments waived. 5.3 Effects of Termination for Convenience. If this Agreement is terminated by Customer in accordance with Section 5.2 (Termination for Convenience): (i) the rights granted by Host Compliance to Customer will cease immediately and Customer will no longer have the right to utilize the data obtained through the use of the Services for systematic or mass outreach activities (including traditional mail, electronic mail, and/or telephone campaigns); and (ii) after a reasonable period of time, Host Compliance may delete any Customer Data relating to Customer's account. The following sections will survive expiration or termination of this Agreement: 2.5 (Third Party Requests), 3.0 (Intellectual Property Rights; Confidentiality), 4.0 (Fees & Payments), 5.2 (Termination for Convenience), 5.3 (Effects of Termination for Convenience), 6.0 (Indemnification), 7.0 (Exclusion of Warranties; Limitation of Liability), and 8.0 (Miscellaneous). 5.4 Termination for Breach: Following the Trial Period, a party may terminate this Agreement for cause upon 45 days written notice to the other party of a material breach if such breach remains uncured at the expiration of such period. 5.5 Refund or Payment upon Termination for Breach. If this Agreement is terminated by Customer in accordance with Section 5.4 (Termination for Breach), Host Compliance will refund Customer any prepaid fees covering the remainder of the term of all Subscriptions after the effective date of termination. If this Agreement is terminated by Host Compliance in accordance with Section 5.4 (Termination for Breach), Customer will pay any unpaid fees covering the remainder of the term of the Agreement. In no event will Customer's termination after the first 6 months relieve Customer of its obligation to pay any fees payable to Host Compliance for the period prior to the effective date of termination. 5.6 Effects of Termination for Breach. If this Agreement is terminated in accordance with Section 5.4 (Termination for Breach): (i) the rights granted by Host Compliance to Customer will cease immediately (except as set forth in this section); (ii) Host Compliance may provide Customer access to its account at then-current fees so the Customer may export its Customer Data; and (iii) after a reasonable period of time, Host Compliance may delete any Customer Data relating to Customer's account. The following sections will survive expiration or termination of this Agreement: 2.5 (Third Party Requests), 3.0 (Intellectual Property Rights; Confidentiality), 4.0 (Fees & Payments), 5.5 (Refund or Payment upon Termination for Breach), 5.6 (Effects of Termination for Breach), 6.0 (Indemnification), 7.0 (Exclusion of Warranties; Limitation of Liability), and 8.0 (Miscellaneous). 6.0 Indemnification. 6.1 By Host Compliance. Host Compliance will indemnify, defend and hold harmless Customer from and against all liabilities, damages, and costs (including settlement costs and reasonable attorney's fees) 8 HOST COMPLIANCE, LLC Short-term Rental Compliance Monitoring and Associated Services HCSA - 5-5-2016 - W www.hostcompliance.com 735 Market Street Floor 4 Tel: (754) 888-HOST (4678)San Francisco, CA 94103 arising out of any claim by a third party against Customer to the extent based on an allegations that Host Compliance' technology used to provide the Services to the Customer infringes or misappropriates any copyright, trade secret, patent or trademark right of the third party. In no event will Host Compliance have any obligations or liability under this section arising from: (i) use of any Services in a modified form or in combination with materials not furnished by Host Compliance and (ii) any content, information, or data provided by Customers, End Users, or other third parties. 6.2 By Customer. Customer, to the extent legally allowed, will indemnify, defend, and hold harmless Host Compliance from and against all liabilities, damages, and costs (including settlement costs and reasonable attorney's fees) arising out of any claim by a third party against Host Compliance regarding: (i) Customer Data;or (ii) Customer's use of the Services in violation of this Agreement. 6.3 Possible Infringement. If Host Compliance believes the Services infringe or may be alleged to infringe a third party's Intellectual Property Rights, then Host Compliance may (i) obtain the right for Customer, at Host Compliance' expense, to continue using the Services; (ii) provide a non-infringing functionally equivalent replacement for the Services; or (iii) modify the Services so that they no longer infringe. If Host Compliance does not believe the options described in this section are reasonable then Host Compliance may suspend or terminate this Agreement and/or Customer's use of the affected Services with no further liability or obligation to the Customer other than the obligation to provide the Customer with a pro-rata refund of pre-paid fees for the affected portion of the Services. 6.4 General. The party seeking indemnification will promptly notify the other party of the claim and cooperate with the other party in defending the claim. The indemnifying party will have full control and authority over the defense, except that: (i) any settlement requiring the party seeking indemnification to admit liability requires prior written consent, not to be unreasonably withheld or delayed and (ii) the other party may join in the defense with its own counsel at its own expense. The indemnities above are Host Compliance' and Customer's only remedy under this Agreement for violation by the other party of a third party's Intellectual Property Rights. 7.0 Exclusion of Warranties; Limitation of Liability. 7.1 Exclusion of Warranties. Except as explicitly set forth in this Agreement, Host Compliance makes no other representation, warranty or condition, express or implied, and expressly excludes all implied or statutory warranties or conditions of merchantability, merchantable quality, durability or fitness for a particular purpose, and those arising by statute or otherwise in law or from a course of dealing or usage of trade with respect to the Services. Host Compliance does not make any representations or warranties of any kind to client with respect to any third party software forming part of the Services 7.2 Limitation on Indirect Liability. To the fullest extent permitted by law, except for Host Compliance and Customer's indemnification obligations hereunder, neither Customer nor Host Compliance and its affiliates, suppliers, and distributors will be liable under this Agreement for (i) indirect, special, incidental, consequential, exemplary, or punitive damages, or (ii) loss of use, data, business, revenue, or profits (in each case whether direct or indirect), even if the party knew or should have known that such damages were possible and even if a remedy fails of its essential purpose. 9 HOST COMPLIANCE, LLC Short-term Rental Compliance Monitoring and Associated Services HCSA - 5-5-2016 - W www.hostcompliance.com 735 Market Street Floor 4 Tel: (754) 888-HOST (4678)San Francisco, CA 94103 7.3 Limitation on Amount of Liability. To the fullest extent permitted by law, Host Compliance' aggregate liability under this Agreement will not exceed the amount paid by Customer to Host Compliance hereunder during the twelve months prior to the event giving rise to liability. 8.0 Miscellaneous. 8.1 Terms Modification. Host Compliance may wish to revise this Agreement from time to time. If a revision, in Host Compliance' sole discretion, is material, Host Compliance will notify Customer and possibly request that an Amendment to this Agreement be agreed upon and signed. If Customer does not agree to the revised Agreement terms, Customer may terminate the Services within 30 days of receiving notice of the change and Host Compliance will refund Customer any prepaid fees covering the remainder of the term of all Subscriptions after the effective date of termination. 8.2 Entire Agreement. The Agreement including the invoice and order form provided by Host Compliance, constitutes the entire agreement between Customer and Host Compliance with respect to the subject matter of this Agreement and supersedes and replaces any prior or contemporaneous understandings and agreements, whether written or oral, with respect to the subject matter of this Agreement. If there is a conflict between the documents that make up this Agreement, the documents will control in the following order: this Agreement, then the invoice, then the order form. 8.3 Governing Law. This Agreement will in all respects be governed exclusively by and construed in accordance with the laws of the State of California. 8.4 Severability. Unenforceable provisions will be modified to reflect the parties' intention and only to the extent necessary to make them enforceable, and the remaining provisions of the Agreement will remain in full effect. 8.5 Waiver or Delay. Any express waiver or failure to exercise promptly any right under the Agreement will not create a continuing waiver or any expectation of non-enforcement. 8.6 Assignment. Customer may not assign or transfer this Agreement or any rights or obligations under this Agreement without the written consent of Host Compliance. Host Compliance may not assign this Agreement without providing notice to Customer, except Host Compliance my assign this Agreement or any rights or obligations under this Agreement to an affiliate or in connection with a merger, acquisition, corporate reorganization, or sale of all or substantially all of its assets without providing notice. Any other attempt to transfer or assign is void. 8.7 Force Majeure. Except for payment obligations, neither Host Compliance nor Customer will be liable for inadequate performance to the extent caused by a condition that was beyond the party's reasonable control (for example, natural disaster, act of war or terrorism, riot, labor condition, governmental action and Internet disturbance). 8.8 Procurement Piggybacking. Host Compliance agrees to reasonably participate in any "piggybacking" programs pertinent to local government. 10 HOST COMPLIANCE, LLC Short-term Rental Compliance Monitoring and Associated Services HCSA - 5-5-2016 - W www.hostcompliance.com 735 Market Street Floor 4 Tel: (754) 888-HOST (4678)San Francisco, CA 94103 IN WITNESS WHEREOF Host Compliance and the Customer have executed this Agreement as of the Effective Date. Town of Estes Park by its authorized signatory: Name: Title: Date: Billing Contact: Billing Email: Billing Direct Phone: Host Compliance LLC by its authorized signatory: Name: Ulrik Binzer Title: Chief Executive Officer Date: Account Executive: Account Executive Email: Account Executive Phone: 11 HOST COMPLIANCE, LLC Short-term Rental Compliance Monitoring and Associated Services HCSA - 5-5-2016 - W www.hostcompliance.com 735 Market Street Floor 4 Tel: (754) 888-HOST (4678)San Francisco, CA 94103 Schedule 1 Scope of Services: Trend Monitoring Monthly email-delivered report and live web-delivered dashboard with aggregate statistics on the short-term rental activity in the Estes Valley Planning Area (“jurisdiction”): Active monitoring of jurisdiction's short-term rental listings across 15+ STR websites Monthly analysis of jurisdiction's STR activity scale, scope and trends Address Identification Monthly email-delivered report and live web-delivered dashboard with complete address information and screenshots of all identifiable STRs in the jurisdiction: Up-to-date list of jurisdiction's active STR listings High resolution screenshots of all active listings (captured weekly) Full address and contact information for all identifiable STRs in jurisdiction All available listing and contact information for non-identifiable STRs in jurisdiction Compliance Monitoring Ongoing monitoring of the short-term rentals operating in Town of Estes Park's jurisdiction for zoning and permit compliance coupled with systematic outreach to non-compliant short-term rental property owners (using Town of Estes Park's form letters) ●Ongoing monitoring of STRs for zoning and permit compliance ●Pro-active and systematic outreach to unpermitted and/or illegal short-term rental operators (using jurisdiction's form letters) ●Monthly staff report on jurisdiction's zoning and permit compliance: ●Up-to-date list of STRs operating illegally or without the proper permits ●Full case history for non-compliant listings Rental Activity Monitoring and Tax Collection Support Ongoing monitoring of jurisdiction's short-term rental properties for signs of rental activity and/or tax compliance: Automatic monitoring of calendar and review activity across 15+ STR websites Weekly screenshots of reviews and calendars for each active listing Quarterly pro-active, systematic and data-informed outreach to short-term rental operators regarding their tax remittance obligations (using jurisdiction's form letters) 12 HOST COMPLIANCE, LLC Short-term Rental Compliance Monitoring and Associated Services HCSA - 5-5-2016 - W www.hostcompliance.com 735 Market Street Floor 4 Tel: (754) 888-HOST (4678)San Francisco, CA 94103 Quarterly staff report on jurisdiction's STR tax compliance: Up-to-date list of short-term rental landlords suspected of under-reporting taxes Documentation of information that serves as the foundation for the suspicion of tax under-reporting Custom reports and analysis to support tax audits and other STR related investigations 7/24 Short-term Rental Hotline 24/7 staffed telephone and email hotline for neighbors to report non-emergency problems related to STR properties: ●Incidents can be reported by phone or email ●Full documentation of all reported incidents ●Digital recordings and written transcripts of all calls ●Ability for neighbors to include photos, video footage and sound recordings to document complaints ●Real-time outreach to owners of problem properties (whenever owner's contact info is known) ●Weekly staff reports containing: ○The # and types of reported incidents ○List of properties for which incidents have been reported ●Custom reports and analysis of hotline related activities Total Annual Subscription Service Price $50,185 Note: Above pricing assumes 869 short-term rental listings in the jurisdiction. 13 14 COMMUNITY DEVELOPMENT Staff Report To: Hon. Mayor Jirsa Board of Trustees Hon. Chair Donnelly Board of County Commissioners Town Administrator Frank Lancaster County Manager Linda Hoffmann From: Randy Hunt, Community Development Director Date: December 15, 2016 RE: Proposed Text Amendments to Estes Valley Development Code: Vacation Homes Ordinance No. 29-16 [Town]; Resolution No. _____ [County] Objective: Review of proposed text amendments to the Estes Valley Development Code (EVDC) §5.1.B (Specific Use Standards: Bed and Breakfast Inn and Vacation Home), and related EVDC sections as appropriate and necessary. Code Amendment Objective: The objective of this proposed code amendment is to revise the EVDC to appropriately regulate vacation homes in the Estes Valley. Vacation homes, also known as “vacation rentals” or “VRs”, have a long history in the Estes Valley and elsewhere. This staff memo is not the place to summarize this history. Suffice it to say that the phenomenon has by many reports grown to sizeable proportions in recent years, and strong view have emerged on many regulatory issues. After a number of previous sets of vacation-home regulations were considered for the EVDC – some adopted, others not – the decision was made to appoint a Task Force. On August 30, 2016, a joint study session was held among the Town of Estes Park Board of Trustees, the Larimer County Board of County Commissioners, and the Estes Valley Planning Commission. The joint study session was held for the purpose of considering appropriate changes to the Estes Valley Development Code’s (EVDC’s) regulations on vacation home rentals. More particularly, the session reviewed findings of the Vacation Rental Task Force, as summarized in Larimer County Community Development Director Terry Gilbert’s 23 August 2016 memorandum, and also heard from Task Force member Ed Peterson on issues regarding vacation-rental code enforcement. These groups on Aug. 30 came to consensus on the following: 15 Vacation Homes: EVDC Amendments Dec. 15, 2016 Joint meeting – TB, BOCC a. Estes Valley Planning Commission (EVPC) would take the lead in reviewing proposed regulations, with Code amendments sent forward to the two governing bodies after due consideration; b. As an initial platform for discussion, the Estes Park Community Development Department staff would draft Code amendments for subsequent review and recommendation; c. The staff would follow the recommendations of the Task Force in formulating recommendations for the 9-and-over category, as a beginning-point for further consideration; d. Staff would incorporate prior direction from the March 30 draft for 8-and-under regulations, as a beginning-point for further consideration; e. The above tasks would take place on a timeline with staff-recommended code language to be provided to the EVPC in October and November 2016; f. Subsequent EVPC recommendations would be targeted for a joint Town Board / BOCC public hearing and potential action in a December 2016 meeting. Subsequent to the Aug. 30 meeting, the Estes Valley Planning Commission (EVPC) has met four times so far to discuss vacation-rental Code amendments: October 18 (study session); November 1 (special study session), November 15 (study session, regular meeting), and November 29 (special meeting, public hearing, and recommendation). It is possible that each jurisdiction will chose to modify its respective Building Codes to address vacation-rental matters. Any such amendments would need to run on their own timelines, not necessarily coinciding with timelines for the EVDC amendments. It is to be hoped that any Building Code amendments will run an expeditious course and will conclude in early 2017. Proposal: Amend EVDC Section 5.1.B as stated in Exhibit A [“PC Draft”], dated Nov. 29, 2016, attached. Staff recommends that Exhibit A [PP Draft – Version C] to the Town Board of Trustees and the Board of County Commissioners. Discussion: “PP Draft” [Exhibit A] 16 Vacation Homes: EVDC Amendments Dec. 15, 2016 Joint meeting – TB, BOCC Exhibit A is a new (since Nov. 29th) set of draft regulations. Staff is referring to this draft as the “PP Draft”, to indicate that it based on the Planning Commission’s Position Paper, Version 4.0 (included with this memo). Version 4.0 was finalized immediately following the Planning Commission’s Nov. 29 hearing and vote to recommend it. This draft is discussed in more detail below under Planning Commission Discussion and Position Paper. NOTE: The PP Draft version included in this packet is slightly changed from the version emailed to many and posted on the Town website Project page on Friday, Dec. 9. The changes came from final legal review following discussion Friday afternoon with the Town Attorney. Staff will flag these minor changes during the Thursday, Dec. 15 joint meeting. All final changes were for clarity and consistency; none changed the documents policy directives and regulatory approach. “TF Draft” Another draft, labeled the “TF Draft” (included with this memo), is being provided to the Town and County Boards for the December 15 joint meeting as a courtesy to the Task Force and at the request of County Community Development staff. The TF [standing for Task Force] Draft has not been formally seen or reviewed by the Task Force, since that group no longer has a formal existence; the Task Force’s final meeting was Aug. 3. The label “TF Draft” is not intended to imply Task Force approval of the Draft – only to indicate that it contains elements that parallel the Task Force memo. Staff from the Estes Park Community Development Dept. and Larimer County Community Development Dept. have faithfully tried to represent in code form the Task Force positions as specified in the 23 August memo and as discussed in the August 30 joint meeting. The TF Draft does contain elements that go beyond specific recommendations of the Task Force – primarily aimed at providing for appropriate administration and enforcement, as would be done for every code amendment. The Commission was provided the TF Draft prior to the Nov. 1 Study Session. The Planning Commission acknowledged and thanked the Task Force and facilitator Terry Gilbert for the work they accomplished, which was substantial. However, the Planning Commission came to verbal consensus on Nov. 1 to proceed in a different direction with their review and recommendation. The end result was the not being requested by staff to make a recommendation on this TF Draft at the Nov. 29 meeting. Verbal direction provided to staff at the EVPC’s Nov. 1 study session indicated EVPC’s wishes to transmit only one EVPC-recommended Code amendment to the joint governing bodies. Staff is honoring this wish and not asking the EVPC to make a judgment call on the TF Draft. However, in the interest of not disrespecting the time and effort the Task Force put into their conclusions, staff is providing the TF Draft to the two governing bodies 17 Vacation Homes: EVDC Amendments Dec. 15, 2016 Joint meeting – TB, BOCC prior to the December 15 joint meeting, for consideration on its own merits. The TF Draft is essentially the same as the Planning Commission saw it on Nov. 1, except for minor edits for clarity and completeness. To be clear, staff is recommending Exhibit A, the PP Draft, for adoption. While the TF Draft is not a bad solution, staff judges that it does have inefficiencies in some areas. Staff concludes the PP Draft is the better option. County Memorandum Regarding Task Force Recommendations Larimer County Community Development Director has provided a memorandum, titled “Vacation Rental Task Force Recommendations on Vacation Rentals for 9 or More Occupants” and dated 7 December 2016 (included with this memo). The memorandum is provided as a courtesy to the County Community Development staff. Director Gilbert’s memorandum and comments therein do not reflect the views of the Town of Estes Park / Estes Valley Community Development Department. It has no standing as a staff recommendation. There is only one staff recommendation, which is articulated in this Dec. 15 memorandum. TF Comparison to PC Amendments This document in the packet, more fully titled “Estes Valley Planning Area Code Amendment differences between Task Force and Estes Valley Planning Commission”, is also provided by Terry Gilbert. EV Community Development Dept. staff was not provided this document in time to do a full review of it. It is also provided as a courtesy to the County Community Development staff. Planning Commission Discussion and Position Paper: At the Nov. 29 EVPC study session, the Commission at length an almost-final draft of the Position Paper – specifically, this was Version 3.5, which was displayed in chambers and discussed by the group on that date. As noted, Version 4.0 was finalized immediately following the PC meeting, and differed in only minor respects from Version 3.5. Per specific recommendation and vote of the Planning Commission on Nov. 29 (six in favor, none opposed, one member absent), the PP Draft was PP Draft was prepared with the Position Paper as guide. The two documents are intended to be closely aligned. Staff’s recommendation is to approve the PP Draft, (included with this memo), in line with the Position Paper. Following is a unitary discussion of the Position Paper and the PP Draft, Residential vs. Accommodations/Commercial Zoning: 18 Vacation Homes: EVDC Amendments Dec. 15, 2016 Joint meeting – TB, BOCC The position paper divides vacation home regulations into two sub-sets: residential and accommodations/commercial areas, both determined by specified zoning districts. Accommodations/ Commercial Zoning Sub-set: No cap is proposed in A, A-1, CD, and CO districts Position paper identifies occupancy maximum limits at two per bedroom plus two additional occupants. No maximum limit per vacation home is identified in the Position Paper. Compliance with IBC [International Building Code (i.e., commercial code)] vs. IRC [International Residential Code] is left to the Chief Building Official’s judgment in accordance with those codes and any amendments thereto. Staff agrees that no Valley-wide cap is necessary or appropriate in non-residential districts, nor is a maximum occupancy load per unit needed, as Fire and similar codes address the latter. The IBC/IRC distinction is a separate matter – although certainly related and relevant. We agree that it is appropriately left to the two Chief Building Officials for the Town and County as staff leads. Guidance from the Town Board and Board of County Commissioners to our individual jurisdictions is relevant and will be sought at the Dec. 15 meeting, as appropriate. Earlier discussion took place at Planning Commission and elsewhere about simply defining a vacation home in the non-commercial districts to be the same as our current term: “Hotel, small”, which is a current permitted use in most non-residential districts. However, we ran out of time to study the Code and determine whether that would cause unintended consequences. We did determine that most development standards – e.g., parking requirements – should reasonably apply to vacation homes in those districts. Some individual existing vacation homes in A, A-1, etc., may not meet current parking or other development-standard requirements, but the requirement should not be burdensome on a collective basis. Residential Zoning District Sub-set: The position paper recommends an overall cap of 588 units in the eight residential zoning districts in the Valley. This cap figure is to be reviewed annually, with an initial review after April 1, 2017. A 10 percent growth in the cap is suggested. All VRs need to obtain 2017 licenses by March 31, 2017. A clear regulatory distinction is made between 8-and-under occupant VRs and 9- and-over VRs. 19 Vacation Homes: EVDC Amendments Dec. 15, 2016 Joint meeting – TB, BOCC 8-and-Under: Occupancy limits per property are set at 2 per bedroom plus 2 additional (2 + 2 rule), maximum of eight. 8-and-Under: Other standards are as recommended by the Task Force. 8-and-Under: “Additional” (i.e., not currently licensed) properties may be permitted as VRs, up to the overall cap limit. 9-and-Over: All VR properties that wish to legally provide for 9 or more occupants shall go through a Special Review process. 9-and-Over: Properties wishing to accommodate 9 or more occupants have a narrow window of opportunity to obtain their Reviews and become legal; the hard deadline is April 1, 2017. Staff agrees with the above residential-zone direction for VRs. The cap issue deserves its own discussion and is addressed separately later in this memo. In some respects, we found it necessary to go beyond the general policy direction above and create very specific regulations. One major example of this is the PP Draft is the transitional regulations for the period between adoption and the end of the Review process for VRs. Other examples can be seen throughout the PP Draft. Specifics are as follows: There is a quite elaborately structured Transitional section in the Code amendment, near the end. This is not called out in the Position Paper, but is aligned with it in concept. This section is necessary in order to get from the current skeletal regulations to the more complex model needed to fulfill the directions given by the Task Force and the Planning Commission. In outline, the transition would work as follows: o Dec.16, 2016, through Dec. 31, 2016: In theory, it is possible that we will receive new applications for operating registrations during this period. In practice, few if any such registrations will be approved during this time, for the practical reason that the new Code (effective Dec. 15) requires an inspection before the registration is issued. Scheduling and performing inspections on short notice, especially in the holiday period, is difficult if not impossible. o Jan. 1 through Mar. 31, 2017: The 2017 annual registration for VRs begins. All VRs must submit a registration on this three-month period. 20 Vacation Homes: EVDC Amendments Dec. 15, 2016 Joint meeting – TB, BOCC Applications are filed in the Town Clerk’s office and date/time stamped in order of receipt. o These applications are first sorted into those in residential districts and those in non-residential districts. The non-residential stack would not need a lot of processing, except for completing required inspections before registration approval. There would be no cap on this stack. o A further sorting takes place for VR applications in the residential districts. Those received in this three-month period are sorted into three queues:  1) First Priority: Those who as of now (Dec. 15) have a 2016 operating permit/registration;  2) Second Priority: Those who do not have a 2016 registration, but can provide evidence of having an active VR during 2016, such as by providing a signed VR contract with renter(s);  3) Third Priority: All others – e.g., brand-new VRs, VRs that may have been operating but with no paperwork, etc. o The queuing is used to determine two things immediately: (a) the order in which required inspections are performed; and (b) the order in which registrations accumulate under the 588 cap. o The cap operates in this three-month period strictly according to the three queues, and within each queue, according to the date/time the application is received. If the cap is reached during the first queue before we get to the second queue, no registrations will be issued under the second queue, and those would go onto a waiting list. The same would happen if we reached the end of the second queue, and so on. (Staff’s best guess is that we will get all the way through the first and second queues before the 588 cap is reached.) o The registration does not actually get issued until an inspection is performed by Community Development Dept., and passed. This is a basic inspection for life-safety, health, and compliance with basic rules such as posting of the required notices inside the VR. Since all 2017 registrations have to be issued by March 31, staff will be putting in many hours in these three months. Barring further changes, 2017 is the only year all VRs will 21 Vacation Homes: EVDC Amendments Dec. 15, 2016 Joint meeting – TB, BOCC be inspected at least once. Some will no doubt need repeat inspections. Again, a VR’s place in line – under the cap, or on a wait-list – comes from the date of application, not date of inspection or date of registration approval/issuance. o Once a property has passed inspection and registration fees are paid, the registration is issued. It is good for the calendar year in which issued – in transitional year 2017, that would be through Dec. 31, 2017. April 1 through June 1, 2017: During this period, applications and review of 9- and-over VRs would begin. o NOTE: Three things to bear in mind for 9-and-over VRs:  1) They already have to be registered as 8-and-under VRs before they can apply for 9-and-over status. This may seem odd, but actually, any residential structure, regardless of how many bedrooms, can apply for an 8-and-under license.  2) Anyone wishing to try for a 9-and-over VR has to have 4 or more bedrooms, due to the across-the-board 2 + 2 rule for occupancy.  3) Inspections have to be performed and approval by the inspectors obtained before the application can be approved. o All 9-and-over VRs require approval by Planning Commission only, with appeals available to the Town Board or Board of County Commissioners. The process is similar to a Special Review, but, as it goes only to the Planning Commission, the Code terms it a “Large Vacation Home Review” (LV Review). Depending on workload, availability for special meetings, and similar matters, some LV Review may take place after June 1; however, the goal would be to schedule special meetings as needed during April and May 2017 to accommodate as many LV Reviews as feasible. Review order will be determined according to date the LV application is received, and when the LV passes inspection. As the cap is not a factor (since all 9-and-over applicants have already been registered as 8-and-under VRs), the order does not need to be as strict under Code. 22 Vacation Homes: EVDC Amendments Dec. 15, 2016 Joint meeting – TB, BOCC No new 9-and-over VRs would be allowed for applications filed after June 1, 2017. This is a hard-line rule and could only be changed by subsequent amendment to Code. A key point to recall: At the present time, there are no vacation homes in the Estes Valley licensed for 9-and-over occupants – and there has never been a license, or any legal permission under zoning, to operate a VR at the 9-and-over level. There are 90 “large occupancy” VRs licensed out there. We casually refer to those as the “9-and-over” VRs in conversations, but that terminology is technically flawed. The 90 VRs with licenses are in truth houses with 4 or more bedrooms, which under the 2 + 2 rule, could be adaptable to 10 occupants or more – but all of them have licenses for only 8 or fewer occupants. In this staff discussion, we refer several times to “new” 9-and-over licenses, but that wording isn’t intended to imply permission for houses that are not already licensed to obtain new licenses for 9 or more operation. Development Standards (Lot Size, Setbacks, Parking, etc.): The Position Paper does not identify development standards for the 8-and-under category; however, it is necessary to identify them in Code. The PP draft sets development standards as those for single-family residential houses in the corresponding districts. That is done for two reasons: (a) most of these properties were built with single-family houses, and – assuming our zoning Codes were crafted properly – should still be conforming; and (b) it’s important to keep in mind that VRs, especially the 8-and-unders, could easily go back to being single- family houses in the future - special setbacks or lot sizes could be detrimental to that end. Staff judges that development standards for 9-and-over VRs should be interpreted in similar fashion. The Position Paper does note that a 1-acre minimum lot size is appropriate for 9-and-over VRs, but that a Review could determine whether a given property can be adjusted downward in a specific case. Findings of fact by the Planning Commission would be required to deviate below the 1-acre minimum. Regarding development standards in general: Bear in mind that many property owners have little or no ability to change some of these standards by themselves. For example, a ¾-acre lot owner cannot enlarge the size of his/her lot without acquiring land from an adjacent owner. No private owner can compel another adjacent owner to do that, as a rule. 23 Vacation Homes: EVDC Amendments Dec. 15, 2016 Joint meeting – TB, BOCC Administration: Proposed 2017 budgets for Town of Estes Park and Larimer County including funding for the iCompass contract for one year, at approx. $25,000 for each. Both Town and County should recognize that this is a permanent annual commitment, including any cost increases – whether with iCompass or another equivalent service. It is literally impossible to administer and enforce VR regulations as proposed in the draft without such an external administration / enforcement mechanism.  A key point is that licensing/permitting - although required by law - is neither necessary nor sufficient to sustain permanent classification of VRs as allowed uses in their districts. In other words, a VR does not lose its land use status as a VR just because the owner does not complete the license or permit process. Failure to license does mean the VR cannot be rented or leased to VR occupants during the lapse period, unless/until a new license or permit is obtained. However, the underlying land use does not go away. If a license is not obtained for a previously legal VR, we might think of the VR without a license as a “dormant” VR – one that could be revived by the current or new owner. Meanwhile, if a license/permit expires or is revoked for a period, the VR is out of business for that period. As a qualifier to the preceding point: The only exception in which licensing/permitting is required in order to confirm underlying VR land use would be the initial licensing. Without an initial license, there is no way to demonstrate in the first place that a VR existed during the initial licensing period. There are other ways to go about that, but amending our Code to implement them will need to wait for another day. The Position Paper refers to a suggested 24-month grace period for VRs to comply with building codes. This is not in the EVDC Code, and EVDC does not address building-code amendments directly. However, the issue is obviously relevant. A 24-moth compliance period would need to be administered separately from the 90-day licensing period. Staff agrees with the suggestion that VRs licensed within the 90 days should have the 24 months to install any required improvements. This is not only more straightforward to administer; it also doesn’t set a prospective VR owner up to install a lot of fancy hardware, only to discover at the end that they do not get to rent the dwelling. 24 Vacation Homes: EVDC Amendments Dec. 15, 2016 Joint meeting – TB, BOCC Enforcement: The Position Paper and PP Draft identify three levels of enforcement: Property managers, law enforcement entities, and code officials. Property managers are identified as the “front-line” enforcers. Each VR license/permit application will be required to have signatures from both property owner and property manager. The latter signature, along with the underlying Code authority, will hold the manager accountable. Law enforcement in the appropriate jurisdiction (Town of Estes Park Police Dept. or Larimer County Sheriff’s Office) would handle violations for the same aspects they handle now. This includes noise, on-street parking, trespassing, and others – basically, any violation not covered in the EVDC or the Building Codes. Code compliance (EVDC) will be handled by the Town’s Code Compliance functions in the Community Development Dept. Court jurisdiction for issues that escalate beyond warning level will be handled by the court(s) of competent jurisdiction – the same as right now. iCompass will be the primary data-gathering tool and also the primary point of contact for those making complaints. Staff believes this is workable in principle. There are many administrative details to work through, to be sure. For example, protocols will have to be established among local Community Development staff, the Town Clerk’s office, iCompass, and our Dispatch Center on “who does what” when a complaint comes in, when a new VR is licensed, and so on. Valley-Wide Cap Issue: This has been one of the more contentious governmental issues in the vacation-rental discussion between the Town and County. Staff’s understanding is that consensus has been difficult to find on whether an overall cap – i.e., a maximum number of vacation homes in the Valley -- is appropriate. Staff’s recommendation on this matter comes from a point of view that is around 90 percent pragmatic We recommend a cap in the following paragraphs, and we explain how and why the cap number was chosen. But first, a few reasons why a cap is appropriate: Failure to adopt regulations [again] is not an acceptable option. The Estes Valley has a problem with lack of adequate regulations for vacation homes - right here and right now. Not adopting regulations, or failing to agree on appropriate regulations, perpetuates this problem. 25 Vacation Homes: EVDC Amendments Dec. 15, 2016 Joint meeting – TB, BOCC Failure to adopt also does not end the community dialog. In fact, adopting regulations won’t end it, either. But meaningful regulations that are clear, can be administered, and can be enforced is a good basis on which to discuss and review how the phenomenon is happening, and to craft revisions or adjustments to regulations as needed. Continual revision of regulations is not a good thing, as regulations should provide a stable platform for individual decision-making. But any large, complex set of regulations needs to be reviewed periodically, to see if it is working. A cap that allows upward adjustment is about the only “compromise” outcome here. If anyone can think of another middle ground, we’d like to hear about it. We can’t. We recommend a cap at 588 VRs in the residential zoning districts. Our reasoning is as follows:) A rational basis is needed for a cap – i.e., anchored in “real world” data. iCompass has provided an estimate of approx. 750 VRs in the Valley, including licensed and unlicensed VRs. Approx. 78.3% of licensed/permitted VRs in the Valley are in the eight residential districts. Assuming similar proportional distribution in residential vs. non-residential unlicensed/unpermitted VRs, we would expect approx. 78.3% of the 750 iCompass VRs to be in residential districts, which results in approx. 588 VRs [750 * 0.783 = 587.349…] This allows for all currently licensed residential-district VRs to remain licensed, if they choose to do so. It allows for all the VRs who may be operating in the shadows to also become legal, if the iCompass estimate is reasonably accurate, which we think it is. It does not allow for very many new VRs to come online in future – again assuming iCompass is correct and that the cap remains unchanged. Split Town / County Jurisdiction: Staff agrees with the Planning Commission position, articulated in previous meeting and in the Position Paper, that it would be most unfortunate if the Town and County were to wind up adopting separate vacation-rental regulations. Doing so would violate the integrity of the Estes Valley Development Code. At this time, except for three relatively modest exceptions, the EVDC is the applicable code for all land use regulations in the Valley. This approach has served us well for 26 Vacation Homes: EVDC Amendments Dec. 15, 2016 Joint meeting – TB, BOCC approx. 16 years. That is the case not only for the two local governments, but for our citizens. “Integrity” may seem like an abstract argument, but there are practical difficulties as well if the vacation-rental code is split into Town and County. For just one example, the regulations refer to specific zoning districts in the EVDC. The Town of Estes Park and Larimer County have different zoning district classifications, uses, and development standards. The Town has an RM District, but the County does not; the County has a T (for Tourist) District, but the Town does not. Issues like these make it impossible to adopt slightly different versions of the code language. If interest exists or emerges in adopting different code provisions for Town and County, the only way to accomplish that is to continue (table) the matter for some possibly major rewrites. Town Community Development staff would estimate at least three months to come up with a suitable draft. We (Town staff) would not be in a position to estimate a timeline for County staff to work on their code. Finally, in good planning practice, any major change in a set of regulations should be remanded to the Planning Commission for input. This factor should be accounted for in any timeline involving a possible split. Staff strongly recommends that the unitary nature of land-use regulations ought to be retained. If that means compromises in the final product, then compromises should be made. Staff Findings of Fact and Conclusions of Law: The text amendment complies with EVDC §3.3.D (Code Amendments – Standards for Review). §3.3.D Code Amendments, Standards for Review “All rezonings and text amendments to the EVDC shall meet the following criteria:” 1. “The amendment is necessary to address changes in conditions in the area affected;” Staff Finding: The amendment is necessary to address changes in conditions in the area affected. Vacation rentals in the Estes Valley have been a rapidly growing land- use phenomenon, by all reports. The 2016 Housing Needs Assessment and the charge followed by the Task Force are two elements in support of the regulatory approach. 27 Vacation Homes: EVDC Amendments Dec. 15, 2016 Joint meeting – TB, BOCC 2. “The development plan, which the proposed amendment to this Code would allow, is compatible and consistent with the policies and intent of the Comprehensive Plan and with existing growth and development patterns in the Estes Valley;” Staff Finding: The proposed text amendment is compatible and consistent with the intent of the Comprehensive Plan and with existing growth and development patterns in the Estes Valley. A development plan is not required. The code amendment aligns with both the Estes Valley Comprehensive Plan housing policies and the 2016 Estes Park Housing Needs Assessment recommendations. 3. “The Town, County or other relevant service providers shall have the ability to provide adequate services and facilities that might be required if the application were approved.” Staff Finding: The proposed code amendment was discussed with providers of public water, sewage disposal, electric services, fire protection, and transportation services. Providers expressed no concerns with the proposed amendment. Law enforcement matters have been reviewed, including discussion with Sheriff Smith at the July Task Force meeting, with no identified significant issues. Additional protocols will have to be established with internal and external parties to ensure proper administration. Advantages: Complies with the EVDC Section §3.3.D Code Amendments, Standards for Review. There appears to be a broad base of public support for addressing vacation homes. The Position Paper and the PC Draft strike what staff and the Planning Commission believe to be a good balance between the rights and privileges of individual Vacation Rental property owners and managers, the rights and privileges of those adjacent and nearby to any given Vacation Rental, and the needs and wishes of the community as a whole. 28 Vacation Homes: EVDC Amendments Dec. 15, 2016 Joint meeting – TB, BOCC Disadvantages: Increasing regulations will have costs associated with administration and enforcement. One specific such cost is the virtual necessity of outside monitoring, such as via the iCompass service. This is built into the Town and County budgets beginning in 2017; expenses will be ongoing. It is almost certain that at some point, additional staff and other resources will be needed in Community Development and perhaps other departments (Town or County) as well. It is possible these staffing/resource needs will not be permanent, as initial implementation of the regulations will have a finite timeline. Numerous arguments have been made on how to regulate vacation homes. These run the full spectrum, from allowing vacation homes with only minimal regulation, to banning them altogether. There are resort/destination communities in various parts of the U.S. that have taken each of these extreme approaches… and just about all points in-between. Staff would suggest that moderation is a cautious and positive approach here. We believe the PC Draft reaches this goal. Action Recommended: Review the PC Draft text amendment for compliance with Estes Valley Development Code (EVDC) §3.3.D Code Amendments, Standards for Review and forward a recommendation to the Estes Park Town Board of Trustees and Larimer County Board of County Commissioners for a final decision to approve, deny, or approve with conditions. It is staff’s recommendation that that Exhibit A [“PC Draft”] be recommended for approval as drafted. Level of Public Interest: High: Addressing vacation homes in the Estes Valley High: Code amendment Sample Motions: APPROVAL I move that the [Estes Park Town Board of Trustees] or [Larimer County Board of County Commissioners] approve the text amendment to the Estes Valley Development Code as presented in Exhibit A (PP Draft), including findings of fact and conclusions of law, and as recommended by staff and by the Planning Commission. 29 Vacation Homes: EVDC Amendments Dec. 15, 2016 Joint meeting – TB, BOCC CONTINUANCE I move to CONTINUE this agenda item to [date certain] because… (state reason(s) for continuance - findings). DENIAL I move that the [Estes Park Town Board of Trustees] or [Larimer County Board of County Commissioners] approve the text amendment to the Estes Valley Development Code as presented in Exhibit A (PP Draft), finding that . . . (state findings of fact for denial). Attachments: 1. Exhibit A [PP Draft], “Estes Valley Development Code Draft Text Amendment: Sec. 5.1.B (Vacation Home) & related sections” – Version D 2. Position Document Version 4.0 FINAL: Planning Commission – November 29, 2016 3. Position Document 4.0 Final Key Points 2016-12-09 [from Planning Commission member Mike Moon and others] 4. [TF Draft} “Estes Valley Development Code Draft Text Amendment: November 15, 2016 – Version TF (Task Force)” 5. 15 Dec 2016 PH Memo to Trustees-County Commissioners – Terry Gilbert 6. Task Force Comparison to Planning Commission Amendments – Terry Gilbert [table] 7. Town of Estes Park Ordinance No. 29-16: An Ordinance Amending the Estes Valley Development Code Regarding Vacation Homes 8. Larimer County Resolution Approving Amendments to the Estes Valley Development Code Regarding Vacation Homes Other Information: Public comments received by Planning Commission can be reviewed at: https://www.colorado.gov/pacific/townofestespark/vacationrentals 30 Estes Valley Development Code Vacation Homes – Exhibit A [“PP Draft”] [version C] Dec. 15, 2016 Joint TB+BOCC Meeting EXHIBIT A [PP DRAFT] Estes Valley Development Code Draft Text Amendment: Sec. 5.1.B (Vacation Home) & related sections December 15, 2016 – PP Draft (Based on Planning Commission Position Paper: approved Nov. 29, 2016) – [Version D] §5.1 SPECIFIC USE STANDARDS B. Vacation Home. 1.All vacation homes shall be subject to the following: a.Annual Operating Registration. (1) All vacation homes shall obtain an operating registration on an annual basis, and the license shall be effective on and following the date of issuance for all of the remaining calendar year in which it is issued, unless the license is suspended or revoked for cause. (2) If the property is located within Town limits, the business license shall be considered the operating registration. If the property is within the unincorporated Estes Valley, an operating registration shall be obtained from the Town of Estes Park Town Clerk's Office. (3) Beginning January 1, 2017, the annual period for operating registration shall begin January 1 of each year and end on March 31 of each year. Issuance of a license between April 1 and December 31 in any given calendar year shall take place on a schedule determined by the Town Clerk’s office and such schedule shall be at the sole discretion of the Town. (4) Pro-ration and partial reduction in any required registration fees for an operating registration issued after January 1 in any given year shall not be authorized. (5) No more than one (1) operating registration shall be issued and effective in any given calendar year for any given vacation home. An active registration for a specific vacation home shall be transferable to a different owner in accordance with procedures in this Code and as established by the Town Clerk’s Office. (6) Effective December 16, 2016, vacation home operating registrations in residential zoning districts (designated herein as zoning districts E, E -1, R, R -1, R -2, RE, RE -1, and RM) shall be held at a maximum total (“cap”) of 588 registrations in effect at any given time. This cap shall be reviewed annually by the Planning Commission and governing Boards, in or near the month of April beginning in or near April 2017. Applications received at any time such that their approval would cause the cap to be exceeded shall be held and kept on file in the order they are received and deemed complete by the Town Clerk’s Office. Registrations held on such list shall be issued during the calendar year as operating registrations may become available. (7) Vacation homes in non-residential zoning districts (designated as all zoning 31 Estes Valley Development Code Vacation Homes – Exhibit A [“PP Draft”] [version C] Dec. 15, 2016 Joint TB+BOCC Meeting districts except those enumerated in the preceding subsection) shall not be included in or subject to this cap. (8) Beginning December 16, 2016, every vacation home for which an operating application is made shall require that the vacation home undergo and pass an initial inspection in accordance with this Code prior to issuance of the operating registration. (9) Beginning December 16, 2016, no operating registration for a vacation home shall be issued unless the vacation home structure has a valid Certification of Occupancy issued by the appropriate authority. (10) Issuance of an operating registration for a vacation home shall not constitute a zoning entitlement for a property’s use as a vacation home, nor shall absence of an operating registration for a vacation home constitute removal or abrogation of a property’s zoning permissibility for use as a vacation home. However, both appropriate zoning permission and compliance and a valid current operating registration are necessary elements in order for operation as a vacation home to occur. (11) Operating registrations that are deemed active as of December 31 in any given year shall have priority for renewal in the following calendar year over any new operating registration applications, provided a re-application for said active registration by the same owner is received and deemed complete, all required inspections passed, and fees paid by March 31 of the renewal calendar year. (12) Local Representative. The registration shall designate a local resident or local property manager in the Estes Valley who can be contacted by telephone and is available twenty-four (24) hours per day, with regard to any violation of the provisions of this Section. The person set forth on the application shall be the representative of the owner for all purposes with regard to the operation of the vacation home. The local representative may be the same person as the property owner. An annual operating registration shall not be valid unless the property owner, and the designated local representative (if different), sign the operating registration application acknowledging all vacation home regulations. If the local representative changes during the calendar year, it shall be the responsibility of the property owner to notify the Town Clerk within fifteen (15) days of change, and to insure the new local representative is knowledgeable of all vacation home regulations. If the property owner changes during the calendar year, it shall be the responsibility of the new property owner of record to transfer the operating registration into his/her name and to ensure all other regulations in this Section are in compliance. (13) State Sales Tax License. A condition of issuance of the annual operating registration shall be proof of a current sales tax license, provided by the applicant. (14) Violations. The relevant Decision-Making Entity may deny or withhold the renewal of an annual operating registration until an alleged violation related to such property, use or development is corrected, in accordance with §12.4.A.1. The relevant Decision-Making Entity may revoke the annual operating registration at any time in accordance with §12.4.A.2. Operating the vacation home during any such period of suspension or revocation shall be a violation of this Code. Appeals to this section shall be made in accordance with the appeals process in the Estes Valley Development Code. (15) Nothing described herein shall limit the Town or County, within their 32 Estes Valley Development Code Vacation Homes – Exhibit A [“PP Draft”] [version C] Dec. 15, 2016 Joint TB+BOCC Meeting respective jurisdictions, from exercising other remedies and enforcement powers pursuant to Chapter 12 of this Code or other penalties and enforcement powers as may be available at law. b.Estes Park Municipal Code. Properties located within the Town of Estes Park shall comply with all the conditions and requirements set forth in the Town of Estes Park Municipal Code, Chapter 5.20 (Business Licenses). c.Residential Character in Residential Zoning Districts. V acation homes in residential zoning districts as designated in this Section shall not be designed or operated in a manner that is out of character with residential use of a dwelling unit by one household. This includes, but is not limited to, the following: (1) Design shall be compatible, in terms of building scale, mass and character, with low-intensity, low-scale residential use. (2) For purposes of §5.1.B of this Code, “bedroom” and “sleeping room” are deemed equivalent terms to each other, and equivalent to a sleeping space pursuant to the currently adopted and applicable International Building Codes. Kitchen facilities shall be limited to be consistent with single-family residential use. No kitchen facilities or cooking shall be allowed in guest rooms, sleeping rooms or bedrooms. d.Postings. (1) Vacation homes in all zoning districts shall have a clearly legible notice posted on-site. The posted notice shall be provided by the Town Clerk’s Office at the time the operating-registration is initially applied for, shall be posted in a prominent location inside the vacation home prior to or during the initial inspection, and shall remain posted in the same location for the duration of its use as a vacation home. The posted notice shall include standard contents as determined and approved by the Community Development Department. (2) Property Line Boundaries: The property owner or local representative shall inform all occupants of property boundaries. (3) Property owner or local representative shall include in all print or online advertising the operating registration number in the first line of the property description. (4) Advertising shall accurately represent the allowed use of the property, including the maximum number of allowed occupants. Inaccurate or false advertising shall be a violation. (5) Neighbor Notification. Prior to issuance of the initial annual operating registration, the owner or local contact shall be responsible for mailing a written notice. (a) Notice shall be mailed, with certificate of mailing or other method as approved by staff, to the owners of properties within one hundred (100) feet of the boundary of the subject property. (b) Notices shall provide a name and telephone number of the local representative and property owner. Any change in the local representative or property owner shall require that the name and telephone number of the new representative or owner be furnished to the Community Development Director and owners of properties within one hundred (100) feet of the subject property within two (2) weeks of the change. Mailed notice of such changes shall follow the same procedure as the initial notification as specified herein. (c) Copies of mailing certificates shall be provided to the Community 33 Estes Valley Development Code Vacation Homes – Exhibit A [“PP Draft”] [version C] Dec. 15, 2016 Joint TB+BOCC Meeting Development Director upon issuance of initial annual operating registration. e.Parking. Minimum Required Parking. Except in the CD Downtown Commercial zoning district, the number of off-street parking spaces available to a vacation home shall not be less than two (2). f.Employee Housing Units. Employee housing units as designated in §5.2.C.2 shall not be designated as vacation home s as defined and regulated herein. g.Attainable Housing Units. Attainable housing units as designated in §11.4 shall not be designated as vacation home s as defined and regulated herein. h.Accessory Dwelling Units. Vacation homes shall not be allowed on residential lots of record containing an accessory dwelling unit as defined and regulated herein. i.Density. Only one (1) vacation home shall be allow ed per residential dwelling unit. One (1) or more vacation homes may be allowed on an individual lot of record, subject to all regulations in this Code and other regulations as may be applicable. 2.All vacation homes shall also be subject to the following: a.Maximum Occupancy in Residential Zoning Districts: 8-and-Under occupants. Except for 9-and-over vacation homes that may be approved and registered under the provisions of this Code via LV application file on or before June 1, 2017, the maximum allowable occupancy for an individual vacation home shall be eight (8) occupants. Occupancy shall be further limited to a maximum of two (2) individuals per sleeping room plus two (2) individuals per vacation home. b.Maximum Occupancy in Residential Zoning Districts: 9-and-Over occupants. A residential structure with four (4) or more sleeping room s may app ly for Large Vacation Home Review approval as a “9 -and - over vacation home”, in accordance with the regulations in §5.1.B.3. The maximum occupancy in a 9 -and -over vacation home shall be as specified in the Large Vacation Home Review terms of approval; provided that o ccupancy shall be limited to a maximum of two (2) individuals per sleeping room plus two (2) individuals per vacation home. c.Maximum Occupancy in Non -Residential Zoning Districts. Occupancy shall be limited to a maximum of two (2) individuals per sleeping room plus two (2) individuals per vacation home. No overall maximum occupancy for a vacation home in a non-residential zoning district shall be applicable, provided that the vacation home is deemed to be in compliance with all Building, Fire, and Health Codes and that a valid operating registration is issued. d.For purposes of this Code section, “occupancy” shall be a stay of more than 12 consecutive hours by any individual. All individuals staying more than 12 consecutive hours shall be deemed occupants, regardless of age or status. e.Number of Parties, Vacation homes in residential zone districts as those districts are defined herein shall be rented, leased or furnished to no more than one (1) party, occupying the vacation home as a single group. Owners of the vacation home shall not be allowed to occupy the vacation home while a party is present. f.Home Occupations. Home occupations shall not be operated on the site of a vacation home, nor shall vacation homes offer ancillary services to guests. g.Vacation homes shall be required to meet applicable Building, Health and Fire codes. h.Except as specifically provided for elsewhere in this Code, general development standards (Chapter 7) as required by the underlying zoning district shall be applicable. In residential zoning districts, development standards shall be those for 34 Estes Valley Development Code Vacation Homes – Exhibit A [“PP Draft”] [version C] Dec. 15, 2016 Joint TB+BOCC Meeting single-family detached dwellings in the zoning district. In non-residential zoning districts, development standards shall be those for “hotel, small” in the zoning district. i.Vacation homes, whether new or existing structures, shall be subject to the requirements of Sec. 7.9 (Exterior Lighting) for new development. j.Initial Time Frame for Compliance. All vacation homes in every zoning district shall be required to obtain a new or renewed, as the case may be, operating registration by a deadline no later than March 31, 2017. 3.Large Vacation Home Review (LV Review) for 9-and-Over Vacation Homes in Residential Zoning Districts. a.The owner of record of a vacation home that has obtained an approved valid operating registration on or before March 31, 2017 may make application for Large Vacation Home Review under the procedures of this Section and Code to allow nine (9) or more individuals to occupy the vacation home, provided that: (1) The application is submitted to and deemed complete by the Department no later than June 1, 2017; and (2) The vacation home for which Large Vacation Home Review application is made has four (4) or more sleeping rooms; and (3) The vacation home is in compliance with all applicable Building, Health, and Fire Codes, or is brought into compliance with said Codes by deadline dates as specified in accordance with the Codes. b.The Large Vacation Home Review application shall be reviewed and may be approved by motion and affirmative vote of the Planning Commission. The Planning Commission’s decision shall be final, except that an appeal of the Planning Commission’s decision may be made to the Town of Estes Park Board of Trustees or the Board of Larimer County Commissioners, whichever has jurisdiction. c.Large Vacation Home Review for a 9-and-over vacation home shall comply with the following policies and procedures: (1) The procedure for application, review, and approval shall comply with the “Procedure Checklist for Large Vacation Home Review: 9-and-Over Vacation Homes”, promulgated and maintained by the Community Development Department; (2) The required “Vacation Home Safety Inspection Report” and “Vacation Home Location Inspection Report” shall be provided to the Planning Commission prior to any Planning Commission approval of a Large Vacation Home Review; (3) The minimum lot size for a 9-and-over vacation home shall be one (1) acre, unless the Planning Commission makes a specific finding of fact that the vacation home is in conformance with applicable use and development standards with a lot size of less than one (1) acre; (4) The minimum front, side, and rear setback from any lot boundary shall be corresponding minimum front, side, or rear setback of the underlying zoning district, unless the Planning Commission makes a specific finding of fact that the vacation home is in conformance with applicable use and development standards with a setback of less than the zoning district’s stated minimum; (5) An approved Large Vacation Home shall in no case be occupied by more than two (2) occupants per bedroom plus two (2) additional occupants. d.No Large Vacation Home Review approval shall be granted for a 9-and-over vacation 35 Estes Valley Development Code Vacation Homes – Exhibit A [“PP Draft”] [version C] Dec. 15, 2016 Joint TB+BOCC Meeting home for which application is submitted to the Department after June 1, 2017. e.Denial of a Large Vacation Home Review zoning permission for use as a 9-and-over vacation home shall not void an existing operating license for an 8-and-under vacation home, nor shall such denial in itself void zoning permissibility for use as an 8-and- under vacation home; provided that 8-and-under vacation home zoning requirements in this Code and other applicable regulations remain applicable. 4.Inspections a.Beginning December 16, 2016, inspections of all vacation homes per the requirements of this Code shall be completed prior to initial approval of any operating registration. b.All vacation homes with registrations approved during calendar year 2017 shall be inspected at least one (1) time during calendar year 2017. c.After December 31, 2017, all vacation homes shall be inspected on an every-third (3rd)-calendar-year schedule. This inspection schedule is further qualified as follows: (1) Vacation homes with even-numbered street addresses shall be inspected during calendar year 2020, and every third (3rd) year thereafter; (2) Vacation homes with odd-numbered street addresses shall be inspected during calendar year 2021, and every third (3rd) year thereafter. d.Inspections shall be completed by the Department in accordance with the applicable inspection checklist as promulgated and maintained by the Community Development Department. The checklist shall be either the “Procedure Checklist for 8-and-Under Vacation Homes” or the “Procedure Checklist for Large Vacation Home Review: 9- and-Over Vacation Homes”, whichever may be applicable. These checklists are hereby adopted and incorporated by reference in this Code. 5.Transitional Regulations. In order to establish an equitable method of transitioning from pre-existing vacation-home regulations and those taking effect on December 16, 2016 and beyond, the following interim regulations shall be effective. In case of any conflict between regulations elsewhere in this Code and the transitional regulations, the transitional regulations shall control: a.All 2017 operating-registration applications for vacation homes that have active operating registrations as of December 15, 2016, shall have first priority in application processing and operating-registration approval for 2017. b.Within such application first-priority queue as may result from applications filed under subsection a., sequencing of registration issuance shall be determined by the date/time received filing stamp by the Town Clerk’s Office on the face of each application. c.All 2017 operating-registration applications for vacation homes that do not have active operating registrations as of December 15, 2016, but for which a written signed contract for vacation-home occupancy during 2016 is provided to the Town Clerk’s Office, shall have second priority in application processing and operating - registration approval for 2017. d.Within such application second-priority queue as may result from applications filed under subsection c., sequencing of registration issuance shall be determined by the date/time received filing stamp by the Town Clerk’s Office on the face of each application. 36 Estes Valley Development Code Vacation Homes – Exhibit A [“PP Draft”] [version C] Dec. 15, 2016 Joint TB+BOCC Meeting e.All 2017 operating-registration applications for vacation homes that do not satisfy the requisite conditions in subsection a. or c. shall have third priority in application processing and operating-registration approval for 2017. f.Within such application third-priority queue as may result from applications filed under subsection e., sequencing of registration issuance shall be determined by the date/time filing stamp by the Town Clerk’s Office on the face of each application. g.In the event the cap for vacation homes in residential zoning districts in §5.1.B.2 is reached at any point in the 2017 queuing process, applications shall be maintained on a waiting list in the order established within priority queues as specified above. h.All operating registrations approved and issued between December 16, 2016 and March 31, 2017 shall initially be for 8-and-under occupants only. The Large Vacation Home Review shall determine whether or not operating-registration-approved vacation homes with four (4) or more sleeping rooms may be approved as 9-and- over vacation homes. Table 4-1: Permitted Uses: Residential Zoning Districts. Table 4-4 Permitted Uses: Residential Zoning Districts Table 4-4: Permitted Uses: Nonresidential Zoning Districts. Specific Use Residential Zoning Districts "P" = Permitted by Right "S" = Permitted by Special Review “LV” = Permitted by Large Vacation Home Review "—" = Prohibited Additional Regulations (Apply in All Districts Unless Otherwise Stated) RE- 1 RE E-1 E R R-1 R-2 RM Low-Intensity Accommodations Bed and Breakfast Inn ̶̶̶̶̶̶S P §5.1B Vacation Home: 8-and- under Occupants P P P P P P P P §5.1B Vacation Home: 9-and-over Occupants LV LV LV LV LV LV LV LV §5.1B (Large Vacation Home Reviews may be approved by Planning Commission only, subject to specified criteria) 37 Estes Valley Development Code Vacation Homes – Exhibit A [“PP Draft”] [version C] Dec. 15, 2016 Joint TB+BOCC Meeting Table 4-4 Permitted Uses: Nonresidential Zoning Districts Use Classification Specific Use Nonresidential Zoning Districts "P" = Permitted by Right "S" = Permitted by Special Review "—" = Prohibited Additional Regulations (Apply in All Districts Unless Otherwise Stated)A A-1 CD CO O CH I-1 Low-Intensity Accommodations Vacation Home P P P P — — — § 5.2 ACCESSORY USES (INCLUDING HOME OCCUPATIONS) AND ACCESSORY S TR U C TU R E S Table 5-2 Accessory Uses Permitted in the Nonresidential Zoning Districts Accessory Use Residential Zoning District "Yes" = Permitted "No" = Not Permitted "CUP" = Conditional Use Permit Additional RequirementsAA-1 CD CO O CH I-1 Vacation Home No Yes Yes No No No No §5.1.B In CD, such use shall not be located on the ground floor of a building fronting on Elkhorn Avenue. (Ord. 02-10 §1) §7.9 EXTERIOR LIGHTING B. Applicability. All new development shall comply with the standards set forth in this Section. Vacation homes as designated and regulated in §5.1.B of this Code shall comply with the standards set forth in this Section, whether new or existing. § 12.7 - ENFORCEMENT PROCEDURES A. Nonemergency Matters. In the case of a violation of this Code that does not constitute an emergency or require immediate attention, written notice of the nature of the violation shall be given to the property owner, agent, occupant or the Applicant for any relevant permit or registration. Notice shall be given in person, or by certified U.S. Mail, or by posting notice on the premises. The notice shall specify the Code provisions allegedly in violation, and—unless a shorter time frame is allowed by this Chapter— shall state that the individual has a period of fifteen (15) days from the date of the receipt of the notice in which to correct the alleged violations before further enforcement action shall be taken. The notice shall also state any appeal and/or variance procedures available pursuant to this Code. 38 Estes Valley Development Code Vacation Homes – Exhibit A [“PP Draft”] [version C] Dec. 15, 2016 Joint TB+BOCC Meeting The Board of Trustees or Board of County Commissioners, as applicable, may grant an extension of the time to cure an alleged violation, up to a total of ninety (90) days, if the Board finds that due to the nature of the alleged violation, it reasonably appears that it cannot be corrected within fifteen (15) days. (Ord. 2-02 #3) [REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK] 39 Estes Valley Planning Commission |FINAL 4.0 November 29, 2016  Estes Valley Planning Commission:  Vacation  Rental  Position Document  November 29, 2016  40 ESTES VALLEY PLANNING COMMISSION |FINAL 4.0 NOVEMBER 29, 2016   Core principles:  The issue of vacation rentals (VRs) in our community is a complex and often  divisive social and financial issue. The final decisions made by the Town of Estes  Park Trustees and Larimer County Board of Commissioners based upon our  recommendations, those of the Vacation Rental Taskforce, public input and their  own perspectives will radically impact what the Estes Valley becomes over the next  decade.  It is the unanimous desire of the Estes Valley Planning Commission members that  whatever solution is finally adopted be a comprehensive valley wide solution not  the first step in dissolving the unique and critical partnership that is the basis for  the Estes Valley Development Code.  The recommendations in this Vacation Rental Position Document are fully  supported by all members of the Estes Valley Planning Commission.  While we  clearly understand that we are the destination portal to one of the most popular  national parks and that visitation to Rocky Mountain National Park (RMNP) is  critical to our economy we are equally focused on retaining the vibrant community  nature of Estes Park that has drawn each of us to this wonderful valley.  Hence, our  recommendations reflect our perspective that it is critical to retain the residential  community nature of the Town of Estes Park and the greater Estes Valley while  balancing the need for guest housing accommodations.    In our commissioner roles, we represent both the Town and the unincorporated  Estes Valley within the Estes Valley Development Code boundaries.  We take that  responsibility seriously and have collectively invested thousands of hours in public  hearings, study sessions, joint sessions with the Estes Park Trustees and the  Larimer County Commissioners, review of national and regional planning reports  on vacation rentals and affordable/workforce housing, review of the Vacation  Rental Taskforce documents and in individual discussions with residents of the  valley.  The basis for our recommendations are data driven and draw significantly from  established best planning processes, many defined in the CAST Report and the  Estes Park Area Housing Needs Study.  We have worked hard to incorporate the  perspective of what our recommendations will create for all of our community  during the next decade, both the VR business community and the larger  community of residents of this gorgeous valley we call home.  41 ESTES VALLEY PLANNING COMMISSION |FINAL 4.0 NOVEMBER 29, 2016   Key Decision Matrix:  1.Retention of a vibrant residential community across the Estes valley. a.Residential neighborhoods remain vibrant and residential in character. b.Residents of the Estes Valley have a 24x7x365 single point for registering non‐emergency VR property complaints which also functions as a data logged property manager/owner notification system. c.Residential neighbor VR issues are clearly addressed in a timely fashion by property managers/ owners and enforced by the governmental jurisdictions. 2.Acknowledgement of the reality/impact of vacation rental business in our community. a.Focus all VR regulation on creating a VR business environment that fosters license/operating permit compliance not underground activity.  Goal: 95+% compliance. b.Ensure that this accommodation business delivers a safe code compliant visitor experience. c.Bottom line: ensure that these VR businesses are visible and compliant, safe and are paying appropriate lodging taxes. 42 ESTES VALLEY PLANNING COMMISSION |FINAL 4.0 NOVEMBER 29, 2016   Executive Summary:  The Estes Valley Planning Commission is an advisory board established jointly by  the Town of Estes Park Trustees and the Larimer County Board of Commissioners.   We are your resource for expertise in land use issues and recommendations.  As  such, the following are our recommendations for the management of Vacation  Rentals across the Estes Valley and modifications to the Estes Valley Development  Code in support of these recommendations.  VR COMPLIANCE, ESTABLISHMENT OF LIMITS ON VR RESIDENTIAL INCURSION  AND HANDLING OF 9+ VR OPERATIONS  We feel that the issue of ensuring that the VR business environment within the  Estes Valley is visible and compliant is paramount to the successful  implementation of any VR regulation.    To this purpose, we are recommending that the period of issuing Business  Licenses/Operating Permits for ALL VR properties be extended until March 31,  2017.    VR properties appear across all zoning districts within the Estes Valley.  They are a  complex mix of conforming 8 and under properties and non‐conforming 9+  properties.    Clearly the accommodation (A and A1) and commercial (CD and CO) zones are  where our zoning regulations have targeted guest accommodations.  Within these  zones, we see no reason for a cap on vacation rentals and recommend vacation  rentals be allowed with occupancy limits of 2 per bedroom plus 2.  All VR  properties operating within these zones must be licensed/permitted with the  appropriate governmental jurisdictions.    Because these vacation rentals are businesses operating within accommodation  and commercial zones, they may fall under the regulation of the International  Building Code (IBC).  That issue, however, is not within our purview, it is an issue  dealt with by the Chief Building Official (CBO).  We do recommend that should  these units fall under the IBC that they be given 24 months to fully comply as a  means to mitigate the inherent cost of the IBC code requirements.  The issues of vacation rentals within residential zones, however, are inherently  different from the accommodation zones.  Here we have, because of the sheer  number of current vacation rentals, the direct impact of these businesses upon the  quality, character, and viability of our neighborhoods and the impact of vacation  43 ESTES VALLEY PLANNING COMMISSION |FINAL 4.0 NOVEMBER 29, 2016   rentals on affordable/workforce housing the need to regulate the existing VR  businesses and limit the amount of additional VR business incursion into zones  defined as residential.  With nearly 12% (750 units out of 6500) of our available  housing inventory being converted into vacation rentals over the past 16 years this  has negatively impacted affordable/workforce housing in the Estes Valley.   Housing prices have been driven up by second home, out of state and corporate  buyers; long term rental (12 months+) prices have increased; and long term rentals  have become scarce.  This has direct impacts on the livability and viability of our  community, recruitment and retention of key talent and housing for our  workforce.  Neighborhoods meanwhile have been negatively impacted by a host of  property management and enforcement issues.    In the residential zones, we are recommending a cap to limit the uncontrolled  incursion of vacation rentals and their direct impact on neighborhood quality and  affordable/workforce housing.  Existing and new vacation rentals in residential  zones would be permitted as 2/bedroom plus 2 with a maximum occupancy of 8.    Effective April 1, 2017, we recommend the establishment of a cap on future 8 and  under VR operations within residential zones.  The cap would be based upon the  total licensed/permitted VR properties effective March 31, 2017 (total of 8 and  under and 9+ in residential zones).  The cap would allow for a maximum of 10%  growth in the future 8 and under VR business within residential zones.  Effective April 1, 2017, we recommend that NO NEW 9+ VR operations be allowed  in any of the residential zones.  RESIDENTIAL 9+ VR PROPERTIES ARE UNILATERALLY NON‐COMFORMING  OPERATIONS, LICENSING/PERMITTING VIA SPECIAL REVIEW  All 9+ VR properties who have applied for a Town of Estes Park Business License  or Larimer County Operating Permit by March 31, 2017 shall submit the required  documentation and inspection results required by a streamlined special review  process heard by the Estes Valley Planning Commission.  Special Review details  in the Specific Recommendations Section.   44 ESTES VALLEY PLANNING COMMISSION |FINAL 4.0 NOVEMBER 29, 2016   TASKFORCE RECOMMEDATIONS  We very much respect the work that the Vacation Rental Taskforce completed this  summer and support 12 of their 15 recommendations and their incorporation into  appropriate code language for both 8 and under and 9+ vacation rentals where  appropriate.  Details are in the Specific Recommendations Section.  COMPLIANCE AND ENFORCEMENT  The final element of our recommendations involves the inspection,  licensing/permitting and enforcement of vacation rental properties.   A lassie faire approach to vacation rentals has allowed this industry to grow  unfettered since the introduction of the EVDC in 2000.  This has allowed a  significant underground business environment to develop with questionable  management practices.    The question of continuing to allow an illegal activity seems inherently wrong to  us.  We believe that it is imperative to create a fair and equitable inspection,  licensing/permitting and enforcement protocol that makes vacation rentals legal,  accountable and safe.  While there seems to be a belief that the Town and County should be primarily  responsible for enforcement, we believe that the major enforcement emphasis  should instead be placed upon the property managers and owners for they are the  financial recipients from this business enterprise.    Property managers must be accountable for the property they are paid to manage.   This makes them the first point of contact for all but life threatening emergencies.   This makes them responsible for enforcing rental agreements and code  requirements.    This is a significant change from the status quo where 911 has been the de facto  vacation rental complaint mechanism.  To make this possible, we strongly  support the deployment of Host Compliance as the single point vacation  rental complaint/issue management portal.  Accurate data is a major  requirement for both the Town and County to make valid future decisions on the  vacation rental business and Host Compliance appears to have the ability to  deliver that data.  However, data by itself will do nothing to establish a clear enforcement message.   Both governmental jurisdictions must be willing to enforce violations through  their separate enforcement processes up to and including District Court.  45 ESTES VALLEY PLANNING COMMISSION |FINAL 4.0 NOVEMBER 29, 2016   Supporting Data:  CAST Report Summary  In 2014 the Colorado Association of Ski Towns, CAST, announced a report  would be forthcoming on Vacation Home Rentals (VHR’s), the issues,  emerging trends and best practices.  The Estes Park Board of Trustees  decided at that time to take no action regarding VHR’s until this report was  published.  Data was gathered from Breckenridge, Crested Butte, Durango,  Estes Park (a CAST member), Frisco, Jackson, Mt. Crested Butte, Ouray,  Park City UT, and Steamboat Springs. The June 2015 report was well  researched and comprehensive; it began with the focus on revenue but, due  to the findings, shifted the focus to include the impacts of VHR’s in terms of  loss of long‐term rental housing and community character.  The following  information is taken from the CAST report:  Regarding loss of long‐term rental housing it was reported that the VHR industry had grown beyond its original status within the “sharing economy”.   The CAST research found that many units now listed as VHR’s previously housed members of the workforce and were homes for families but are now tourist accommodations.  Many are investor owned and rented at the highest rates possible and as frequently as possible.   With the decrease in the rental supply, due at least in part to conversion to VHR’s, rents have been rising. Loss of long term rental housing previously rented by members of the local workforce has now become the number one concern of the tourist communities participating in the study. Across the country communities have become alarmed about changes in the character of their residential neighborhoods as they transition into lodging districts.  Neighbors are being replaced by a transient population.  In mountain towns visitors are the mainstay of the economy but residents are concerned about changes in community character.  Over time this may impact the visitor experience as well.  Negative visitor experience may result from dissatisfaction among visitors who want to experience the “real” community they are visiting, yet discover that the increased number of VHR’s have displaced locals and turned neighborhoods into lodging districts.  Unlike commercial lodging, online hosting sites do 46 ESTES VALLEY PLANNING COMMISSION |FINAL 4.0 NOVEMBER 29, 2016   not ensure that residences meet minimum health and safety  standards, are not limited to locations within commercial zones, and  many are not licensed and do not collect taxes.  This has potential to  have a negative impact on the visitor experience if there are  publicized incidents of visitors who are hurt or endangered by unsafe  VHR’s that are not up to lodging codes.  In neighborhoods, VHR related complaints are commonly related to parking, noise, trespassing, open fires, garbage, illegal rentals, exterior lights left on overnight and for long periods of time and too many occupants. Estes Park was listed as a “Best Practice” community in Nuisance Mitigation for limiting VHR occupancy to a maximum of two persons per bedroom plus two persons with an 8‐person maximum. 47 ESTES VALLEY PLANNING COMMISSION |FINAL 4.0 NOVEMBER 29, 2016   Estes Valley Housing Data ‐ Overview  Larimer County Assessor’s database, 07/15/16  There are approximately 6500 residential units in the Valley Approximately 3100 are owned by non‐Valley residents o 3100/6500 = 48% of residences are owned by non‐residents 20% by non‐Valley Colorado owners 28% by out of state owners Host Compliance (iCompass) data, 07/16 750 vacation rentals in the Estes Valley Planning Area Estes Valley vacation rental data ‐ per Town license/permit applications as of 11/01/16  498 licensed/permitted vacation rentals  265 in Estes Park 233 in Larimer County Note:  498/750 = 66% of vacation rentals are licensed Of the licensed/permitted vacations rentals  353 are 3 bedrooms or less 112 are 4 bedrooms or more (potential 9+ occupancy) 33 have an unknown number of bedrooms 78% of the Estes Valley VRs have non‐Estes Valley owners  46% of the Estes Valley VRs have out of state owners  140 – 150 of the 492 vacation rentals “Business Names” include the terms LLC, LP, Inc,  Enterprise, Ltd, Partnership, Holding, etc.  ‐ 38 owners own multiple vacations for a total of 98 properties  48 ESTES VALLEY PLANNING COMMISSION |FINAL 4.0 NOVEMBER 29, 2016   Estes Park Area Housing Needs Study, Rees Consulting Inc, January 22, 2016 “Loss of Units – At the same time rental demand was increasing from the factors mentioned  above, the size of the rental inventory declined.  Long‐term rentals occupied by the workforce  have been sold to new owners as the market recovered or converted into short‐term vacation  home rentals, both of which displaced renters and permanently reduced the supply of rental  housing.”, Pg. 67  “Rental homes being sold, flood damage and rentals being converted to short‐term rentals have  affected the most renters – about 200 each.”, Pg. 83  Estes Valley vacation rental growth – per Town license/permit applications,  11/01/16  1 00 9 001 2233 14 10 8 68 13 16 41 41 95 171 0 20 40 60 80 100 120 140 160 180 No. of Vacation RentalsHomes converted to Vacation  Rentals each year Town Board approves "Use 0 100 200 300 400 500 600 No. of Vacation RentalsLicensed VR growth (from 2016 license/permit info) Town Board approves "Use by  49 ESTES VALLEY PLANNING COMMISSION |FINAL 4.0 NOVEMBER 29, 2016   Size of vacation rentals & zones where they are located  37 124 192 79 27 2 1 2 1 0 50 100 150 200 250 123456789No. of VRsNo. of Bedrooms Size of  Vacation  Rentals (no. of bedrooms) VRs 36 41 25 6 114 115 14 7 6 31 11 92 7 10 3 2 29 21 5 3 1 7 4 20 0 20 40 60 80 100 120 140 AA‐1CDCO E E‐1RR‐1R‐2RERE‐1RMNo. of VRsZoning District Vacation  Rentals per Zoning District VRs 4+ Bdrms33 VRs have an unknow number of  50 ESTES VALLEY PLANNING COMMISSION |FINAL 4.0 NOVEMBER 29, 2016   VR Owners place of residence Total licensed VRs in all zones 498 % of 498  VRs in A and C zones 108 22%  VRs in residential zones 390 78%  VRs in residential RM zones 92 18%  VRs in residential w/o RM zones 298 60%  Total licensed VRs in all zones 498 % of 498  Total licensed 4+ bedroom VRs 112 22%  4+ bedroom VRs in A and C zones 22 4%  4+ bedroom VRs in residential zones 90 18%  4+ bedroom VRs in RM zones 20 4%  4+ bedroom VRs in res w/o RM 70 14%  1 2 3 13 160 109 1 7 10 1 12 1 23 117 6 9 1 2 1 44 224 9 2 1 55 1115 0 20 40 60 80 100 120 140 160 180 AL AZ CO CT IA IL KS MD MN MS ND NV OH OR TX WA WYNo. of VRsOwner's state of residence Estes Valley VR ownership 51 ESTES VALLEY PLANNING COMMISSION |FINAL 4.0 NOVEMBER 29, 2016   Host Compliance (an iCompass subsidiary) capability   The Town of Estes Park will enter into an agreement with Host Compliance to  assist with enforcement for non‐compliant vacation rentals.  Through their  software abilities, they will identify unlicensed or unpermitted vacation rentals in  the Estes Valley.  Larimer County has agreed to share the cost of Host Compliance  services.  The Town will contract with Host Compliance, and Larimer County will  contribute their share (50%) directly to the Town.  The agreement with Host  Compliance will commence on January 1, 2017.  The scope of services that Host Compliance will provide include:  Address Identification – Monthly report •Up‐to‐date list of jurisdiction’s active vacation rental listings •Screenshots of all active listings (captured weekly) •Address and contact information for all listings Trend Monitoring – Monthly report Compliance Monitoring – Monthly report •Ongoing monitoring for zoning and permit compliance •Pro‐active outreach to unpermitted listings (using Town form letters) •Current list of illegal listings (unpermitted) •Create case history for non‐compliant listings Rental Activity and Tax Collection Support •Monitoring of calendar and review activity through websites •Weekly screenshots of reviews and calendars for active listings •Quarterly pro‐active outreach to property owners regarding their tax remittance obligations using Town form letters •Quarterly report on tax compliance •Current list of rentals suspected of under‐reporting taxes including documentation •Custom reports to support tax audits and other investigations 7/24 Rental Hotline •Staffed telephone and email hotline for neighbors to report non‐ emergency problems •Full documentation for all reported incidents •Digital recording and written transcripts of all calls • Ability for neighbors to include photos, videos and sound recordings with complaints •Immediate outreach to owners/managers of problem properties •Weekly reports including Number and types of reported incidents List of properties where incidents have been reported 52 ESTES VALLEY PLANNING COMMISSION |FINAL 4.0 NOVEMBER 29, 2016   Our Detailed Recommendations:  1)We very much respect the work that the Vacation Rental Taskforce completed this summer and support the following Vacation Rental Taskforce recommendations and their incorporation into appropriate code for all vacation rentals (8 and below and 9+). a.Process for establishing occupancy count: Vacation rental occupancy should be counted as 2 occupants per bedroom + 2 additional occupants. b.Minimum age limit for counting an Individual as an Occupant: All occupants, regardless of age, shall be counted. This is due to health, safety, and welfare concerns in case of fires, etc. c.Traffic limitations in areas adjacent to VR: Traffic limitations in areas adjacent to Vacation Rentals are to be the same as the existing requirements for the area. d.Speed limits in areas adjacent to VR:  Speed limits in areas adjacent to Vacation Rentals are to be the same as the existing requirements for the area. e.Inspections to be conducted by local government, etc.:  All normal Land Use, Building, Health, Fire, etc. to be utilized.  Annual inspections are not required. f.Parking: Utilize the current language in the Estes Valley Land Development Code: 5.2.B.2.e.6 Limit on Number of Parked or Stored Vehicles, Not Including Recreational Equipment and Recreational Vehicles, on a Lot. g.Renter Notification Requirements for Posting: Use Taskforce recommended format. h.Noise Requirements:  Current Town or County Noise Ordinance, depending on location in or out of Town, would apply. No additional requirements limiting use or time of use, for outside activities, would be required. i.Proof of Insurance:  No Proof of Insurance will be required. Insurance is the responsibility of the VR owner. j.Liability: Rental agreements to protect liability of neighbors: No requirement for liability signoff by renters, for protection of adjacent property owners. The VR is subject to the same criteria as any other residential home is, within the area. (Note: the VR owner will include the statement that renters are not to trespass onto adjacent properties. This will be in the list of posted items.) 53 ESTES VALLEY PLANNING COMMISSION |FINAL 4.0 NOVEMBER 29, 2016   k.Local Contact requirements for manager/owner:  The permit shall designate a local resident or property manager of the Estes Valley who can be contacted by phone and is available twenty‐four (24) hours per day, regarding any violation of the provisions of this Section. The local resident or property manager shall respond to complaints within thirty (30) minutes. i.We further recommend the use of Host Compliance to document each interaction of the property manager, guest and neighbors.  This is critical to create a clear picture of the vacation rental business compliance in the Estes Valley. l.Approval Process for 9/above Vacation Rentals:  Initially the current Special Review process will be used to approve 9+ Vacation Rentals.  Staff needs to develop a more streamlined process to manage the potential quantity of Vacation Rental Special Reviews. 2)Vacation rental units in accommodation zones A, A1, CD and CO should not be capped.  Occupancy should be limited to 2/bedroom + 2. All vacation rentals should be required to obtain a license/permit.  With that licensing/permitting process, an inspection shall occur to verify bedroom count and code compliance for guest safety upon the initial application.  All vacation rentals in this category shall comply with Town or Larimer County statues and the Estes Valley Development Code.  Dark Sky compliance should be mandatory for all licensed/permitted VR operations. Vacation rentals of more than 8 may be required to comply with the IBC code rather than the IRC code based upon Chief Building Officer(CBO) decisions. Should the CBO decide that 9+ vacation rentals are required to comply with the IBC, we would suggest them being given a 24‐month period to comply with the costs of the IBC code upgrades. 54 ESTES VALLEY PLANNING COMMISSION |FINAL 4.0 NOVEMBER 29, 2016   3)Vacation rental units in all residential zones should be limited to 2/bedroom plus 2 with a maximum overnight occupancy of 8. VR properties with a maximum occupancy of 8 or less and who have acquired a license/permit under the cap may operate at their current location in residential zones. With that licensing/permitting process, an inspection shall occur to verify bedroom count and code compliance for guest safety upon the initial application.  All vacation rentals in this category shall comply with Town or Larimer County statues and the Estes Valley Development Code. Dark Sky compliance should be mandatory for all licensed/permitted operations. All 9+ VR properties who have applied for a Town of Estes Park Business License or Larimer County Operating Permit by March 31, 2017 shall submit the required documentation and inspection results required by a streamlined special review process heard by the Estes Valley Planning Commission. Because of their size, these 9+ vacation rentals may fall under the regulation of the International Building Code (IBC).  That issue, however, is again not within our purview and is an issue dealt with by the Chief Building Official (CBO).  We do recommend that should these units fall under the IBC that they be given 24 months to fully comply as a means to mitigate the inherent cost of the IBC code requirements. No new 9+ vacation rentals should be permitted in any of the residential zones effective April 1, 2017. 4)An annual cap on the total number of vacation rental licenses/permits in Estes Valley residential zoning districts should be set to a hard number (588) for code purposes on December 15, 2016 but be reevaluated and set post April 1, 2017 based on the total of licenses/permits applied for as of March 31, 2017, plus 10%.  The cap number should be reviewed annually for its impact on the impact on neighborhood quality and availability of affordable/workforce housing in residential zones. a.The Planning Commission would annually review available data and make recommendations to the Town of Estes Park Trustees and the Larimer County Commissioners on the cap’s status. 55 ESTES VALLEY PLANNING COMMISSION |FINAL 4.0 NOVEMBER 29, 2016   5)Vacation rental licenses/permits should be issued on an annual basis, reviewed/renewed annually and re‐inspected on a recurring three‐ year cycle. a.Vacation rental licenses/permits are issued to the home owner for the period of one year. b.Licenses/permits may be revoked for substantiated violations of licensing/permitting requirements per criteria established in a Town/County violation policy document. i.License/permit enforcement will be handled per Town and County statutory processes. c.Licenses/permits in residential zones revoked for more than 12 months become invalid and reissuance is only available if there are open licenses/permits under the cap and all previous violations have been corrected. d.Licenses/permits not renewed by the property owner become invalid after 12 months and are forfeited.  Reissuance of forfeited licenses/permits in residential zones is only available if there are open licenses/permits under the cap. e.Property inspections shall be conducted by code compliance inspectors at the time of ALL initial license/permit applications to ensure public safety and every three years thereafter to ensure continued compliance. i.Inspections shall be staggered with the first re‐inspection occurring in 2020 for even numbered addresses and 2021 for odd numbered addresses. ii.The inspections shall be the same VR Safety inspections as required for 9+ Special Review plus Dark Sky compliance per EVDC 7.9D. f.License/permit number must be clearly listed on all marketing literature and website listings. g.9+ Special Review shall be streamlined into a check‐off list that ensures that property owners clearly know what is expected of them to comply with the review decision matrix and staff and Planning Commissioners know how to adjudicate the application. i.Neighbor Notification – Prior to submission for Special Review, the owner or local contact of the 9+ VR property shall be responsible for mailing a written notice. 1.Notice shall be mailed with certificate of mailing or other method as approved by staff, to the owners of 56 ESTES VALLEY PLANNING COMMISSION |FINAL 4.0 NOVEMBER 29, 2016   properties within one hundred (100) feet of the subject  property.  2.Notices shall provide a name and telephone number of the local contact and property owner.  Any change in the local contact or property owner shall be furnished to the Community Development Director and owners of properties within one hundred (100) feet of the subject property with two (2) weeks of the change. 3.Notices shall indicate that the residence is applying for a Special Review application for a VR license/permit. ii.VR Safety (by inspection report) 1.Are all bedrooms listed in the application legal? 2.Is emergency egress code compliant – window size, basement, 1st floor and 2nd floor egress 3.Smoke detectors present and operational 4.CO detectors present and operational 5.Stairs and stair rails meet code 6.Parking per code 7.Clearly marked address signage visible for emergency responders 8.Community Development recommended notification list present in rental iii.VR Location (current plat/survey/lot plan submitted for review) 1.Lot size/Setbacks a.Meet taskforce 1 acre requirement b.Less than taskforce requirement accessed with respect to direct neighbor impact associated with structure placement and setbacks from neighboring properties. i.Structure placement impact with respect to neighbor properties: hot tub, fire pit, porch, lighting, parking. c.Previous history of validated neighborhood complaints/violations 2. Dark Sky compliant per EVDC 7.9D (a major neighbor complaint, minimal expense to comply, comply prior to license/permit issuance, verified by inspection) 57 ESTES VALLEY PLANNING COMMISSION |FINAL 4.0 NOVEMBER 29, 2016   Appendix:  Appendix A:  CAST Report o https://drive.google.com/file/d/0ByOraRNR__Stc1o5bDYzZmNfOUk /view Appendix B:  Estes Park Area Housing Needs Study o https://www.colorado.gov/pacific/sites/default/files/atoms/files/Fin al%202016%20HNA%20Report.pdf Appendix C: Vacation Rental Task Force Recommendations o https://drive.google.com/file/d/0ByOraRNR__StRWNVSWwtemh5V 1U/view 58 Vacation Rentals Are A Business •Much has been said and written about property rights as associated with Vacation Rentals (VRs) •Both boards allowed 8 and below VRs as a right in 2010 within residential zones •Because of lassie faire enforcement since 2010 a significant number of non-compliant 9+ VRs have been established within the residential zones •ALL of these VRs are businesses operating within residential zones and may be regulated like any other business operating within a residential zone. •Fair and unbiased regulation is our goal with compliance as our metric 59 Compliance •In researching other jurisdictions implementing VR restrictions, compliance becomes the biggest issue •In the Estes Valley if we do not have a high compliance rate all of our efforts are for not •Compliance means: •Licensed/permitted •Meet basic safety codes •Paying taxes to the appropriate agencies •Goal is 95+% compliance by December 31, 2017 •Our final recommendations have been structured to focus on compliance 60 Zone Based Proposal •Vacation Rentals divided between two main districts •Accommodations/Commercial: A, A1, CD and CO •Residential: R, E, E1, RE, RE1 and RM •Accommodations/Commercial zones are where zoning expects guest accommodations (VRs are accommodation business properties) •No restrictions on VRs, i.e. no VR cap in A, A1, CO or CD zones •2/bedroom plus 2 occupancy •Potential requirement for IBC upgrades or reclassification •Governmental jurisdiction decision 61 Zone Based Proposal •Residential zones: •CAP VR growth in residential zoning districts •Extend grace period for obtaining license/permit to March 31, 2017, goal = compliance •Initially create a hard cap number for code purposes effective December 15, 2016 with a Cap of 588 VR units. •Based upon our focus on compliance, reassess the cap number post April 1, 2017 with the following formula: •The CAP would be set as a percentage of residential VR units to total residential units in residential zones and set at 12.5% •(allowed VR licensed/permitted units in residential zones within the EVDC boundary)/(total # of residential units in residential zones within the EVDC boundary)=0.125 •The CAP number would be annually adjusted based upon residential unit growth on March 31st. •2/bedroom plus 2 occupancy max 8 •9+ VRs applying for license/permit by March 31, 2017 will apply via a special review process with crisp evaluation criteria •NO New 9+ VR’s in residential zones effective April 1, 2017 62 Special Review vs Standards •A lot of conversation about how to evaluate 9+ VR applications •The Draft 2.0 position to use standards rather than a Special Review became unworkable and was not a fair and equitable solution for all 9+ owners •Choice is to move back to a highly structured special review process that is applied fairly across all 9+ VR applications •EVPC would be the evaluating and approving body given Town and County approval •Appeal to appropriate governing body •This along with a check list Special Review process should allow for due process for all 9+ applications •The check list Special Review process is outlined in the EVPC Position Document dated November 29, 2016 63 Licenses/Permits •Annual review at time of reapplication •VR performance against Host Compliance/iCompass data •Licenses/permits may be revoked for cause •Licenses/permits are forfeited if not renewed •New licenses/permits are available up to cap limit •Three tiered priority application process •Safety code inspection •Safety Code inspection at initial application •Safety code inspection every 3 years to ensure continued compliance •Even numbered addresses begin in 2020, odd numbered addresses begin in 2021 •Enforcement •Three levels: •Property managers are expected to monitor, manage and enforce regulations •LE enforces illegal acts •Code officers interact with both property managers and LE to bring offenders into compliance •Code Compliance Enforcement •Host Compliance/iCompass data driven •Town of Estes Park: Municipal Court to District Court •Larimer County: County Commissioners to District Court 64 Unlicensed VRs •By March 31, 2017, the Town and County will have given VR owners a gracious amount of time to comply –become licensed/permitted •Potentially 200-250 have chosen to remain underground as of today •Our hope is that they choose to become compliant and apply for their VR licenses/permits by March 31,2017 •Once the cap has been reached they will have to wait until there are available licenses/permits •If they choose to continue to operate illegally Host Compliance/iCompass will identify them and enforcement will proceed with court action 65 The Threat of VRs Going Underground •Their appears to be an active lobby for the VR community that states that if we create fair and reasonable code restrictions on VRs or if IBC code becomes a prerequisite for 9+ VRs that: •VRs will simply go underground •Host Compliance will “definitely” go away after a year •We will destroy a critical part of the Estes Valley lodging •These threats appear to be intended to influence the Trustees in their decision process •There is NO DATA to support these assertions! •There are NO jurisdictions where fair regulation has forced VRs to go underground •Those jurisdictions appear to have good compliance and a vibrant VR business environment •We have modeled our regulations along these community baselines •The argument that Host Compliance will fail in its ability to identify Estes Valley VR properties is baseless •Host Compliance is deployed today in multiple communities for just this purpose •The argument that a 24x7x365 data logged complaint line will not significantly enhance enforcement is baseless •Host Compliance is again deployed today in multiple communities for just this purpose •Both the Town of Estes Park and Larimer County are committed to enforcement which has been a key issue for both VR owners and residents all along and data logged complaints are critical for that enforcement to occur •While the possibility of IBC compliance has significant costs to a 9+ VR owner, our recommendations are to allow them 24 months to fully comply should IBC requirements apply which is a separate issue •The IBC financial impact is further reduced by the high weekly rental income from the units and the state and federal tax write -offs for business property improvements 66 Estes Valley Development Code Implementing Vacation Rental Task Force and Staff Recommendations (for nine or more occupants) November 15, 2016 Planning Commission Meeting Estes Valley Development Code Draft Text Amendment November 15, 2016 – Version TF (Task Force) Text to remain is in black. Text revised after November 1, 2016 Planning Commission Study Session §5.1 SPECIFIC USE STANDARDS B. Vacation Home. 1.General Applicable Standards. All vacation homes shall be subject to the following (see §5.1.B.3 for additional regulations): a.Annual Operating Permit. (1) Permit Required. All vacation homes shall obtain an operating permit on an annual basis. If the property is located within Town limits, the business license shall be considered the operating permit. If the property is within the unincorporated Estes Valley, an operating permit shall be obtained from the Town of Estes Park Town Clerk's Office. (2) Local Contact Representative. The permit shall designate a local resident or local property manager in the Estes Valley who can be contacted by telephone and is available twenty-four (24) hours per day, with regard to any violation of the provisions of this Section. The local resident or property manager representative shall have the capability to respond to complaints on site within thirty (30) minutes. The person set forth on the application shall be the representative of the owner for all purposes with regard to the operation of the vacation home. The property owner and the designated local representative shall sign the license or permit application acknowledging all vacation home regulations. (3) State Sales Tax License. A condition of issuance of the annual operating permit shall be proof of a current sales tax license. (4) Violations. The relevant Decision-Making Entity may deny or withhold the renewal of an Annual Operating Permit until an alleged violation related to such property, use or development is corrected, in accordance with §12.4.A.1. The relevant Decision-Making Entity may revoke the Annual Operating Permit at any time in accordance with §12.4.A.2. Appeals to this section shall be made in accordance with the appeals process in the Estes Valley Development Code. Nothing described herein shall limit the Town or County, within their respective jurisdictions, from exercising other remedies and enforcement powers pursuant to Chapter 12 of this Code. b.Estes Park Municipal Code. Properties located within the Town of Estes Park shall comply with all the conditions and requirements set forth in the Town of Estes Park Municipal Code, Chapter 5.20. c.Residential Character. Vacation homes in residential zone districts shall not be designed or operated in a manner that is out of character with residential use of a dwelling unit by one household. This includes, but is not limited to, the following: (1) Except in the CD district, design shall be compatible, in terms of building scale, mass and character, with low-intensity, low-scale residential use. 67 Estes Valley Development Code Implementing Vacation Rental Task Force and Staff Recommendations (for nine or more occupants) November 15, 2016 Planning Commission Meeting (2) Kitchen facilities shall be limited to be consistent with single-family residential use. No kitchen facilities or cooking shall be allowed in the guest rooms. (3) No changes in the exterior appearance shall be allowed to accommodate each vacation home. d.Postings. (1) Vacation homes shall have a clearly legible notice posted on-site, containing at a minimum the following: (a) The physical address of the vacation home and business license/operating permit number; (b) Name and telephone number of the local representative and property owner; (c) Maximum number of occupants allowed overnight; (d) Maximum number of vehicles allowed parked outside; in designated off street parking areas; (e) Refuse disposal instructions; (f) Location of fire extinguishers; (g) Outdoor fire regulations; (h) Domestic animal regulations (2) Property Line Boundaries; Property owner or local representative shall inform all occupants of property boundaries; (3) Property owner or local representative shall include in all print or online advertising the license or permit number. (4) Advertising shall accurately represent the permitted use of the property. Inaccurate or false advertising shall be a violation. (5) Neighbor Notification. Upon issuance of initial Annual Operating Permit, the owner or local contact shall be responsible for mailing a written notice. (a) Notice shall be mailed, with certificate of mailing or other method as approved by staff, to the owners of properties within one hundred (100) feet of the subject property. (b) Notices shall provide a name and telephone number of the local contact representative and property owner. Any change in the local representative or property owner shall be furnished to the Community Development Director and owners of properties within one hundred (100) feet of the subject property within two (2) weeks of the change. (c) Mailing certificates shall be provided to the Community Development Director upon issuance of initial Annual Operating Permit. (d) Vacation homes legally existing as of the effective date of this code shall be required to send written notice pursuant to §5.1.B.1.d.(4). e.Parking. (1) Minimum Required Parking. Except in the CD Downtown Commercial zoning district, the number of parking spaces available to a dwelling unit housing a vacation home shall not be reduced to less than two (2). f.Maximum Allowed Parking. Unless otherwise permitted by this Chapter parking shall comply with §5.2.B.2.e. 68 Estes Valley Development Code Implementing Vacation Rental Task Force and Staff Recommendations (for nine or more occupants) November 15, 2016 Planning Commission Meeting g.Employee Housing Units. Employee housing units shall not be rented, leased or furnished for tenancies of less than thirty (30) days. (See §5.2.C.2.a). h.Accessory Dwelling Units. An accessory dwelling shall not be occupied by any individual while the vacation home is in use. i.CD District. In the CD Downtown Commercial zoning district, such use shall not be located on the ground floor of a building fronting on Elkhorn Avenue. j.Density. Only one (1) vacation home shall be permitted per residential dwelling unit. 2.All Vacation homes shall also be subject to the following: a.Occupancy. (1) Maximum Occupancy. Maximum allowable occupancy shall be further limited by a maximum of two (2) individuals per bedroom plus two (2) individuals. For purposes of this section, bedroom is defined as a sleeping space pursuant to the currently adopted and applicable International Building Codes. (2) All occupants, regardless of age or status, shall be counted in the vacation rental occupancy count. (3) Vacation homes shall not be used for events, weddings or other gatherings not consistent with the residential character of the neighborhood. (4) Owners of the vacation home shall not be permitted to occupy the vacation home while a renter is present. b.Lot requirements for vacation homes with nine (9) or more occupants. (1) Minimum lot size of one (1) acre. (2) Minimum setback of twenty-five feet from all property lines, or the zoning district setbacks, whichever is greater. c.Special review application and approval shall be required for all vacation homes with nine (9) or more occupants. d.Legal non-conforming vacation homes with nine (9) or more occupants will not be (TO BE REVISED AND MOVED TO A NEW SECTION) 1.All bed and breakfast inns shall also be subject to the following: a.Occupancy. (1) Maximum Occupancy. No more than eight (8) guests shall occupy a bed and breakfast inn at any one time. This maximum allowable occupancy shall be further limited by a maximum of two (2) guests per bedroom plus two guests. (2) Number of Parties, Bed and Breakfast Inns. Bed and breakfast inns may be rented, leased or furnished to one (1) or more parties. b.Home Occupations. Home occupations may be operated on the site of a bed and breakfast inn. Bed and breakfast inns may also offer limited ancillary services to guests, such as performing small weddings or offering classes/workshops to guests, provided they are in character with residential use. c.Meal Service. Bed and breakfast inns may provide meals service to registered guests; however, meals shall not be provided to the general public. 69 Estes Valley Development Code Implementing Vacation Rental Task Force and Staff Recommendations (for nine or more occupants) November 15, 2016 Planning Commission Meeting subject to the minimum lot size, minimum setbacks, or special review provided the following conditions are met. (1) Must have permit for eight (8) occupants issued prior to July 1, 2016 (2) Must have existing capacity for nine (9) or more occupants. (3) Must submit application within thirty (30) days of adoption effective date of this amendment. e.Vacation rentals shall be required to meet applicable Building, Health and Fire codes. f.Home Occupations. Home occupations shall not be operated on the site of a vacation home, nor shall vacation homes offer ancillary services to guests. Table 4-1: Permitted Uses: Residential Zoning Districts. Table 4-4: Permitted Uses: Nonresidential Zoning Districts. Table 4-4 Permitted Uses: Nonresidential Zoning Districts Use Classification Specific Use Nonresidential Zoning Districts "P" = Permitted by Right "S" = Permitted by Special Review "—" = Prohibited Additional Regulations (Apply in All Districts Unless Otherwise Stated)A A-1 CD CO O CH I-1 Low-Intensity Accommodations Vacation Home P P P — — — — §5.1.B. In CD, such use shall not be located on the ground floor of a building fronting on Elkhorn Avenue. 70 Estes Valley Development Code Implementing Vacation Rental Task Force and Staff Recommendations (for nine or more occupants) November 15, 2016 Planning Commission Meeting § 5.2 ACCESSORY USES (INCLUDING HOME OCCUPATIONS) AND ACCESSORY STRUCTURES Table 5-2 Accessory Uses Permitted in the Nonresidential Zoning Districts Accessory Use Residential Zoning District "Yes" = Permitted "No" = Not Permitted "CUP" = Conditional Use Permit Additional RequirementsAA-1 CD CO O CH I-1 Vacation Home No Yes Yes No No No No §5.1.B In CD, such use shall not be located on the ground floor of a building fronting on Elkhorn Avenue. § 12.7 - ENFORCEMENT PROCEDURES Nonemergency Matters. A. In the case of a violation of this Code that does not constitute an emergency or require immediate attention, written notice of the nature of the violation shall be given to the property owner, agent, occupant, local representative, or the applicant for any relevant permit. Notice shall be given in person, or by certified U.S. Mail, or by posting notice on the premises. The notice shall specify the Code provisions allegedly in violation, and unless a shorter time frame is allowed by this Chapter shall state that the individual has a period of fifteen (15) days from the date of the receipt of the notice in which to correct the alleged violations before further enforcement action shall be taken. The notice shall also state any appeal and/or variance procedures available pursuant to this Code. The Board of Trustees or Board of County Commissioners, as applicable, may grant an extension of the time to cure an alleged violation, up to a total of ninety (90) days, if the Board finds that due to the nature of the alleged violation, it reasonably appears that it cannot be corrected within fifteen (15) days. 71 COMMUNITY DEVELOPMENT DIVISION Building Dept, Planning Dept, Code Compliance, & Rural Lands DIRECTOR’S OFFICE Post Office Box 1190 Fort Collins, Colorado 80522-1190 (970) 305-1544 FAX (970) 498-7711 TO: Board of County Commissioners Town of Estes Park Trustees 7 December 2016 FROM: COL Robert “Terry” Gilbert (ret.), AICP Director SUBJECT: Vacation Rental Task Force Recommendations on Vacation Rentals for 9 or More Occupants 15 December 2016 Joint Public Hearing On 9 November 2015, the Board of Trustees and the Board of County Commissioners met in a joint public hearing to act upon proposed Code amendments, concerning vacation rentals. The meeting resulted in no action being taken, due to concerns of the County Commission over issues raised by the public. Additionally the County Commissioners tasked County staff to hold public meetings on the issues raised at the 9 November meeting. On Saturday, 12 December 2015, County staff had the first public input meeting. The meeting was a facilitated meeting, with the participants broken up into a dozen groups, each group having individuals for vacation rentals and individuals against vacation rentals. Each group had a facilitator. There were over 100 citizens in attendance. On Monday 25 January 2016, the County Commissioners held a public meeting in the Town of Estes Park, to obtain citizen input on vacation rentals. On 2 February 2016 Joint Work Session between the Board of County Commissioners, Town Trustees, and the Estes Valley Planning Commission, I was asked to develop the Scope of Work and Timeline for a Vacation Rental Task Force. The Task Force was charged with developing recommendations, concerning vacation rentals that will accommodate 9 or more individuals. The Task Force was not charged with making recommendations on the Enforcement process, because the enforcement processes were going to be reviewed by the Town staff separately. Additionally, the Task Force was not charged with recommending whether 9/above vacation rentals, as a use, should be allowed or not. Timeline Both Boards set mid-November 2016 as the approximate time for the final public hearing to decide on possible Development Code amendments, for vacation rentals, which accommodated 9 or more occupants. The Scope of Work and Timeline were developed with the mid-November date as a completion date. The Board of County Commissioners and the Town Trustees approved the Scope of Work & Timeline on 16 February and 23 February, respectively, with two changes: 1. Add a task force member from the Association of Responsible Development (ARD) and 2. Have a task force member selected by the property managers. The Task Force was made up of 15 members, not counting myself. The membership is made up of two primary categories: 1. Individuals (8 members) approved by the Town Trustees and Board of County Commissioners: a.3 home owners within the town limits, living near or close to a vacation rental; b. 3 home owners within the unincorporated area of the Estes Valley Planning Area, living near or close to a vacation rental; 72 7 December 2016 RTG Memo for 15 December 2016 Joint PH – Vacation Rental (9/above occupants) c.1 vacation rental owner, with a vacation rental in the town limits; d. 1 vacation rental owner, with a vacation rental within the unincorporated area of the Estes Valley Planning Area. 2. Organizations (7). Each organization was to select a representative to be on the Task Force. On 12 April 2016, both the Town Trustees and the Board of County Commissioners met, via a tele-conference, to select the 8 members of group 1, above. The first meeting of the Task Force was held on 27 April 2016. The meetings were held every other Wednesday from 27 April through 3 August 2016, for a total of 8 meetings. Between 27 April and 3 August both the Board of Trustees and the Board of County Commissioners were updated on the process of the Task Force in June and July. On 3 August 2016, the Task Force completed their assignment to recommend potential changes to the Estes Valley Land Development Code, should the Board of Trustees and the County Commissioners decide to allow Vacation Rentals for 9/above occupants. On 30 August 2016, a work session between the Board of Trustees, Board of County Commissioners, and the Estes Valley Planning Commission was held. Estes Park Community Development staff was requested to develop code language for the Planning Commission and governing bodies to review individually. The draft Code language was to be reviewed by the Estes Valley Planning Commission in November of 2016. On 29 November 2016, the Planning Commission held a final public hearing on the vacation rentals for both those 8/under occupants and 9/above occupants. The Planning Commission made final recommendations, which the Estes Park Community Development Director has forwarded to both the Board of Trustees and the Board of County Commissioners, for the 15 December 2016 joint public hearing. 12 of the 15 recommendations, of the Vacation Rental Task Force are being recommended by the Planning Commission. The 12 recommendations being recommended by the Planning Commission are reinforcement of existing regulations or minor changes to existing regulations. However, the 3 remaining Task Force recommendations were the most critical of the 15 recommendations. Without any one of the 3 critical recommendations being accepted, the overall Task Force recommendation will no longer be valid. Key Issues 1. The two greatest concerns, other than whether vacation rentals should be allowed, came out in the two public meetings (12 December 2015 and 25 January 2016) and throughout the Task Force discussions, were: a.Lack of trust in the local government. b.Lack of enforcement of current Codes and whether any Code changes would be enforced. 2. The recommendations from the Task Force were developed and recommended after intensive discussion and compromises to produce recommendations, which were acceptable to both sides of the issue. Therefore, there are specific recommendations, where significant negotiation occurred and are key to the overall Task Force recommendations. Should any of the following specific recommendations be eliminated, the overall recommendations of the Task Force would no longer be valid. The specific recommendations in this category are: a. Grandfathering of 9/above Vacation Rentals, with conditions noted in recommendation. b.Location Requirement Task, allowing 9/above Vacation Rentals in the same zoning districts as 8/below Vacation rentals, with conditions noted in recommendation (which include minimum lots size and setbacks). c.Approval Process for 9/above vacation rentals (Special Review approval by Trustees/County Commissioners. 73 7 December 2016 RTG Memo for 15 December 2016 Joint PH – Vacation Rental (9/above occupants) Recommendations: After years of complaints, from both sides of the issues and no satisfactory solutions developed, the Task Force was established to provide both the Town Trustees and the County Commissioners a set of recommendations, which both sides of the issues agree on. Without approving the following three recommendations, the entire effort of the Task Force is for not and invalidates the entire effort of the Task Force. The following are the key recommendations, listed in “Key Issues, 2. a – c” above: Task: Grandfathering of 9/above Vacation Rentals (Date Recommendation was made: 20 July 2016) Vote: Total: 10 - 0 Non-HO: HO: Yes No Name of VR Representative Representing X Art Blume Association of Responsible Development (ARD) X Jane Livingston Estes Area Lodging Association X Judy Anderson Estes Park Board of Realtors Not Present Bill van Horn Estes Park Economic Development Corp (EDC) X Ed Peterson Estes Park Vacation Rentals Owners Association Not Present Rainer Schelp Property Management Representative X Lindsey Lamson Visit Estes Park X Fred R Mares Home Owner (in Town) X Millicent Cozzie Home Owner (in Town) X Richard (Dick) Spielman Home Owner (in Town) Bernie Holien (resigned 19 July) Home Owner (out of Town) Vacant Home Owner (out of Town) Not Present Jo Anne Ollerenshaw Home Owner (out of Town) X Mick Scarpella Vacation Rental Owner (in Town) X Linda Moak Vacation Rental Owner (out of Town) Recommendation: 1.Effective 01 July 2016, Grandfather existing 9/above, or capacity for 9/above, Vacation Rentals, only for VRs that are currently permitted as 8/below and have existing capacity for 9/above. 2.Within 30 days of the final adoption of 9/above VR regulations, all potential grandfathered 9/above VRs are to submit for license/permit. (verification of the use must be provided) 3.Grandfather status for 9/above VR: a.Location on a lot of less than one (1) acre would be grandfathered b.Existing setback of less than 25 feet would be grandfathered c.Use as a grandfathered 9/above vacation rental is dependent on the number of bedrooms (2 occupants per bedroom + 2 additional occupants) d.Parking, Building, Health, Fire, etc. are not Grandfathered. Note: As of 01 July 2016, there were a total of 97 vacation rentals, which would potentially be considered under the Grandfather recommendation: 32 vacation rentals within the Town limits 65 vacation rentals within the unincorporated area of the Estes Valley Planning Area 74 7 December 2016 RTG Memo for 15 December 2016 Joint PH – Vacation Rental (9/above occupants) Task: Location Requirements (Date Recommendation was made: 20 July 2016) Vote: Total: 10 - 0 Non-HO: HO: Yes No Name of VR Representative Representing X Art Blume Association of Responsible Development (ARD) X Jane Livingston Estes Area Lodging Association X Judy Anderson Estes Park Board of Realtors Not Present Bill van Horn Estes Park Economic Development Corp (EDC) X Ed Peterson Estes Park Vacation Rentals Owners Association Not Present Rainer Schelp Property Management Representative X Lindsey Lamson Visit Estes Park X Fred R Mares Home Owner (in Town) X Millicent Cozzie Home Owner (in Town) X Richard (Dick) Spielman Home Owner (in Town) Bernie Holien (resigned 19 July) Home Owner (out of Town) Vacant Home Owner (out of Town) Not Present Jo Anne Ollerenshaw Home Owner (out of Town) X Mick Scarpella Vacation Rental Owner (in Town) X Linda Moak Vacation Rental Owner (out of Town) Recommendation: 1.Allowed in the same zoning districts as the 8/below are allowed 2.Minimum of 1 acre lot (smaller lots could be combined, utilizing the subdivision regulations, to create a 1 acre or larger lot) 3.Minimum of 25’ setbacks for all a yards or the zoning district setbacks, whichever is greater 75 7 December 2016 RTG Memo for 15 December 2016 Joint PH – Vacation Rental (9/above occupants) Task: Approval Process for 9/above Vacation Rentals (Current Special Review Process) (Date Recommendation was made: 3 Aug 2016) Vote: Total: 10 - 0 Non-HO: HO: Yes No Name of VR Representative Representing X Art Blume Association of Responsible Development (ARD) X Jane Livingston Estes Area Lodging Association X Judy Anderson Estes Park Board of Realtors X Bill van Horn Estes Park Economic Development Corp (EDC) X Ed Peterson Estes Park Vacation Rentals Owners Association X Rainer Schelp Property Management Representative Not Present Lindsey Lamson Visit Estes Park X Fred R Mares Home Owner (in Town) Not Present Millicent Cozzie Home Owner (in Town) X Richard (Dick) Spielman Home Owner (in Town) Vacant Home Owner (out of Town) Vacant Home Owner (out of Town) Jo Anne Ollerenshaw (resigned on 3 Aug 2016) Home Owner (out of Town) X Mick Scarpella Vacation Rental Owner (in Town) X Linda Moak Vacation Rental Owner (out of Town) Recommendation: 1.Initially utilize the current Special Review process. 2.Staff needs to develop a more streamlined (shorter) process, which results in an approval by the Board of Trustees, for applications within the Town and approval by the Board of County Commissioners for applications within the unincorporated area of the Estes Valley Planning Area. There was a lengthy discussion, on the approval process. All members agreed the Board of Trustees or the Board of County Commissioners (depending on whether within the Town limits or in the unincorporated area) should be the final approval authority through a Special Review process. There was discussion about administrative approvals, however the Task Force “did not have confidence in the town board or staff, based on past experience with the Town Board’s actions”. The members of the Task Force, who own and live in their homes, strongly oppose any change to the current Special Review process, which would allow for a staff approval of such an application. The Task Force firmly believe “there is need for a public hearing to allow the elected officials to hear, first hand, the pros and cons of such a change, contemplate the impact to neighbors, and to minimize any possible staff misinterpretation of the code”. The Task Force members, who represent vacation rentals, agree the Special Review process should be utilized, with a Board of Trustees’ or Board of County Commissioners’ final approval. However, they feel the current Special Review process is too cumbersome and lengthy a process. 76 RT Gilbert 12 Dec 2016 (edition 2) Estes Valley Planning Area Code Amendment differences between Task Force and Estes Valley Planning Commission Of the 15 Task Force Recommendations; six recommendations did not require an amendment to the Development Code, five recommendations requiring modifications to the Development Code are also recommended by the Planning Commission, and an additional four are not recommended by the Planning Commission.  The five recommended by both the Task Force and Planning Commission are:  (1) Occupancy Count  (2) Parking   (3) Renter Notification Posting    (4) No age minimum for Occupancy Count  (5) Local Contact Requirements. The following 4 Task Force Recommendations were not recommended by the Planning Commission.  The Chart shows the Task Force Recommendation and the Planning Commission’s counter recommendation. Task Force Recommended Code ChangePC Recommended Code Change Inspection Process: 1.No Code amendment required2.All normal Land Use, Building, Health, Fire, etc. are to beutilized.Page 2 (Section B.1.a.(8‐11) Inspection Process: 1.Initial inspection prior to final authorization.2.Once every third year following initial inspection.Page 3 (Section B.2.b.) Page 4 (Table 4‐1 & 4‐4) Location Requirements:  1.Allow 9/above in the same districts as 8/below VRs2.Minimum of 1 acre lot size3.Minimum of 25’ setbacksPage 6 (Section B.3.c & d) Location Requirements: 1.Through June 1, 2017, Large Vacation Homes (9‐and‐aboveoccupancy) may apply for an approval to the PC, in residential districts. 2.“No Large Vacation Home Review approval shall be granted for a9‐and‐over vacation home for which application is submitted to the Department after June 1, 2017.” Page 3 (Section B.2.c.) Approval Process:  1.Utilize existing Special Review, which has the final approval bythe Trustees/County Commissioners. 2.A more streamlined process needs to be developed, which stillhas the Trustees/County Commissioners as the final approval. Page 6 (Section B.3.b) Approval Process: 1.The Planning Commission shall have the final approval for LargeVacation Homes (9/above occupancy). Page 3‐4 (Section B.2.d.)  Grandfathering of 9/above Vacation Rentals:  Allows for existing approved 8/below VRs to obtain administrative approval (no Special Review approval required) for 9/above VRs, that are less than 1 acre and have setbacks of less than 25 feet provided: 1.Applies to existing 8/below VRs, having a license/permit as of 1July 2016. Page 6 (Section B.3.c) Transitional Period: 1.Through June 1, 2017, Large Vacation Homes (9‐and‐aboveoccupancy) may apply for an approval to the PC, in residential districts. 77 Ordinance No. 29-16 AN ORDINANCE AMENDING THE ESTES VALLEY DEVELOPMENT CODE REGARDING VACATION HOMES WHEREAS, on November 29, 2016, the Estes Valley Planning Commission conducted a public hearing on the proposed text amendment to the Estes Valley Development Code, Section 5.1.B (Vacation Homes) and related sections, and found that the text amendment complies with Estes Valley Development Code §3.3.D Code Amendments, Standards for Review; and WHEREAS, on November 29, 2016, the Estes Valley Planning Commission voted to recommended approval of the text amendment; and WHEREAS, the Board of Trustees of the Town of Estes Park finds the text amendment complies with Estes Valley Development Code §3.3.D Code Amendments, Standards for Review and determined that it is in the best interest of the Town that the amendments to the Estes Valley Development Code, Section 5.1.B (Vacation Homes) and related sections, as set forth on Exhibit “A”; be approved; and WHEREAS, said amendments to the Estes Valley Development Code are set forth on Exhibit “A” attached hereto and incorporated herein by this reference: NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE TOWN OF ESTES PARK, COLORADO: Section 1: The Estes Valley Development Code shall be amended as more fully set forth on Exhibit “A”. Section 2: Immediate passage of this Ordinance is necessary for the preservation of health, safety and welfare of the citizens of the Town in order to provide for appropriate registration to begin December 16, 2016, and therefore the Ordinance shall take effect and be in force immediately after its passage, adoption, and signature of the Mayor. PASSED AND ADOPTED BY THE BOARD OF TRUSTEES OF THE TOWN OF ESTES PARK, COLORADO, THIS DAY OF _______, 2016. TOWN OF ESTES PARK, COLORADO By: Mayor ATTEST: Town Clerk 78 I hereby certify that the above Ordinance was introduced and read at a regular meeting of the Board of Trustees on the day of , 2016 and published in a newspaper of general circulation in the Town of Estes Park, Colorado, on the ________ day of , 2016, all as required by the Statutes of the State of Colorado. Jackie Williamson, Town Clerk [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 79 RESOLUTION APPROVING AMENDMENTS TO THE ESTES VALLEY DEVELOPMENT CODE REGARDING VACATION HOMES WHEREAS: 1. The Estes Park Community Development Department has proposed amendments to the Estes Valley Development Code pertaining to vacation homes. 2. The Estes Valley Planning Commission, at a public hearing held November 29, 2016, considered the proposed amendments and recommended to the Board of Trustees of the Town of Estes Park and to the Board of County Commissioners of Larimer County, Colorado that they be adopted. 3. The Town Board of the Town of Estes Park approved the proposed changes on December 15, 2016. 4. At a public hearing on December 15, 2016, which hearing had been advertised in a newspaper of general circulation as required by law, the Board of County Commissioners of Larimer County, Colorado, considered the proposed amendments. 5. This is a proposal to amend the Estes Valley Development Code vacation home regulations to regulate vacation homes according to occupancy categories, zoning district categories, and procedural compliance, according to findings of fact and conclusions of law as called out in Exhibit A. 8. The review criteria for text amendments to the EVDC have been met as follows: A. The amendment is necessary to address changes in conditions in the area affected. The amendment is necessary to address changes in conditions in the area affected. There is a Valley-wide concern about proliferation of vacation homes in the Valley. There are also existing and potential vacation-home owner/operators who have legitimate concerns about the specific regulatory parameters for such operations. B. The Town, County or other relevant service providers shall have the ability to provide adequate services and facilities that might be required if the application were approved. The proposed text amendment was reviewed with affected agencies over the months of October through December 2016 to confirm compliance with this requirement. NOW, THEREFORE, BE IT RESOLVED: That the amendments to the Estes Valley Development Code shown on Exhibit “A” attached hereto shall be and are hereby adopted. Said amendments shall be effective 80 2 | Page Resolution Adopting Amendments to EVDC re: Vacation Homes (December 15, 2016) immediately upon adoption and signature of the appropriate authorities below, in order to provide for appropriate registration to begin December 16, 2016. BOARD OF COUNTY COMMISSIONERS OF LARIMER COUNTY, COLORADO By: ___________________________________ Chair ATTEST: ____________________________ Deputy Clerk to the Board Dated: ____________ Approved as to form: _______________ County Attorney 81 82 Association for Responsible Development P.O. Box 3882, Estes Park, CO 80517 Web; ardestes.org Vacation Rental Task Force Recommendations The increasing number of vacation rental units in Town and their resultant negative effects reported by citizens in residential neighborhoods, prompted Town Trustees and County Commissioners to request formation of a task force to make recommendations for vacation rental occupancies of more than eight people. The task force was to assume that both boards wanted to allow occupancy greater than the 8 allowed today and to come up with a list of recommended Estes Valley Development Code amendments to deal with the increased occupancy. The task force was not to consider enforcement since that was a policy issue to be decided by the boards. This appeared to be a good approach, as Town government was doing little to address problems resulting from the growing number of seasonal rentals in Estes Park. Reported problems included but were not limited to: unreasonable noise from renters occurring after hours, failure of some rental owners to limit the number of total visitors to the current code limit of two people per bedroom plus two additional people (8 total people), problems related to street parking from an excessive number of renter vehicles, and a general lack of accountability and identification of rental home owners and/or property managers to contact when such problems occurred. The Vacation Rental Task Force was to be composed of equal numbers of representatives from the community that were concerned about these issues, as well as rental owners/property managers who have a financial interest in the future growth of vacation rentals. The Larimer County Community Development Director was selected to run the Task Force with the intent of coming to a set of agreed upon recommendations for vacation rentals of occupancy greater than 8 to present to Town government and the County Commissioners. Task Force meetings began in April and continued through early August of this year. As the meetings progressed over the summer, it was clear that the issues discussed and opinions offered were highly contentious. Task Force membership was not entirely balanced, with seven members chosen from the community versus eight members who owned vacation rentals or managed such properties. Several community representatives resigned from the Task Force prior to completion of its work. ARD was allowed one representative on the Task Force. Despite many differences of opinion, the Task Force did agree on a number of recommendations including maintaining the current method for establishing the occupancy limit for a short-term rental property as 2 occupants per bedroom + 2 additional occupants. All individuals, regardless of age will count toward the occupancy limit. It was further recommended that all normal land use, building, health, and fire inspections are to be conducted by local government, that parking restrictions be made consistent with the code requirements for similar residential properties, and that a minimum lot size of 1 acre and minimum setbacks of 25 feet be required for vacation rentals with occupancy greater than 8. It was also recommended that each vacation rental be required to have posted for the renters’ notification a list of local rules, regulations, and emergency information. A local contact, available 24/7 by phone and able to respond to complaints within 30 minutes must be identified and on record. 83 An obvious obstacle faced by the Task Force was the lack of information regarding the number of homes that are rented short-term. An independent consultant reported that there are currently some 750 homes that are used for vacation rentals in the Estes Valley Planning Region, of which only an approximate 500 are licensed. A very positive recommendation from the Task Force is to have the Town subscribe to an on-line service called Host Compliance (iCompass), an industry leader in short-term rental monitoring and compliance solutions for local governments. In addition this service takes phone complaints 24/7, contacts listed owners/managers, collects data on rental unit numbers, and sends letters to owners concerning “non-compliance.” ARD very much supports this recommendation in order to provide real data in terms monitoring the number of such rentals in Town and providing a real-time response system for non-compliance. The primary issue that the Task Force was asked to consider involved the number of vacation rental homes that have been violating the current code of a maximum of 8 renters per home. Many complaints have been made about large parties of people renting vacation homes particularly in residential neighborhoods with smaller lot sizes and setbacks. Such renting only exacerbates noise and street parking problems encountered by Estes Park residents. Some rental owners and realtors strongly endorsed a change to the code allowing a larger number of occupants (nine and above) be incorporated into the development code. This contingent also recommended that a “grandfather clause” be added to the existing code allowing those rental homes who have not been following the “eight rule” to continue to do so under any code changes. The Task Force recommended that as of July 1, 2016, only the 97 currently licensed vacation rentals (32 rentals within Town limits, and 65 rentals within the unincorporated area of the Estes Valley Planning Area) of 4 bedrooms or more, be considered for “grandfathering” and that grandfathering would be considered for lot sizes of less than one acre, or setbacks less than 25 feet. The Task Force agreed that an occupancy greater that 8 should not be a “use-by-right” and that all new short-term rental applications for occupancy greater than 8 must go through a Special Review process which could result in approval by the Town Board or the Board of County Commissioners. Also, a recommendation to post on site the specific allowable number of people in each rental home was agreed upon. This could be useful since many renters who are causing issues during their stay claim that they were not aware of limits on the number of people allowed in the home. ARD believes that most of these recommendations are drastically needed in order to provide accountability for the vacation rental business going forward. It goes without saying that should these needed recommendations be adopted by the Town and County they will only be useful if they are enforced. It has been the experience of many residents of Estes Park that enforcement within the Town limits has been poor. Given the trend of an exponential increase in vacation rentals in our neighborhoods, it is essential that our Town government take a responsible stance on these recommendations and make an honest effort to enforce them. While it is financially lucrative for home owners and investors to rent homes and condos on a short term basis during the high months of tourism, the continuing uncontrolled use of this business will only denigrate the quality of life in our neighborhoods, the small town atmosphere of Estes Park, and will continue to transform any available workforce housing into investment properties. All people who have purchased homes to live here have a vested interest in maintaining the quality of their neighborhoods. This includes the reasonable expectation of having the residential experience that they sought when they purchased their homes. The County Commissioners favor 84 placing a total limit cap on the number of short-term rentals in the Valley. ARD thanks our county commissioners, Tom Donnelly, Steve Johnson, and Lew Gaiter for their interest and actions in preserving the quality of life for the residents of Estes Park and the Estes Valley. Those who are affected by vacation rentals in their neighborhoods are encouraged to contact our Town government and make your concerns known. Also, the Estes Valley Planning Commission will hold a special study session Nov. 1 at 12 p.m. to discuss vacation rental regulations, followed by a public hearing to consider draft vacation rental code amendments at its regular meeting at Town Hall at 1:30 p.m on November 15th. Association for Responsible Development 85 Concerns about 9+ vacation rentals 2 messages Theresa Oja <theresaoja@gmail.com> Sun, Sep 11, 2016 at 8:52 PM To: gaiteri@co.larimer.co.us, Steve Johnson <johnsosw@co.larimer.co.us>, donnelt@co.larimer.co.us, townclerk@estes.org, Karen & Scott Thompson <kthompson@estes.org>, Patti Freudenburg <pfreudenburg@gmail.com>, Tom Hornbein <hornbnt@washington.edu>, Kathryn Hornbein <kwren2@gmail.com> Dear Commissioners, Town Board and Planning Commission, After attending the last study session I would like to voice several concerns. The fact of three of the homeowner representatives on the 9+ task force resigning was not addressed. The task force was already unbalanced before this happened and this left the homeowners in the county unrepresented. Since that is where a large part of the 9+ rentals are located this is very concerning. Nine and above renters are no longer a residential use per code. Why is this going to be allowed in residential zoning? It is clearly an accommodations use. Why are we going to allow this increased capacity before we fix the 8 and under problems? Discussion of "grandfathering" those that are illegally operating with 9 and above is also very concerning. Since many of those owners have not be following the current regulations, the neighbors should have the right to voice their concerns. One of the town board members was correct in stating that the neighbors might have objections. You are darn right they might object to having a small hotel operating next door. For those in the county the number of cars they are going to allow is excessive. In our neighborhood that is 5 cars per house plus whatever they can park in a garage. That's a ton of traffic in and out on dirt roads that the neighbors will pay to maintain for a commercial business use. Renters often do not follow the posted speed limit but how will the sheriff enforce that on these multiple, small private roads? Larger parties = more noise and traffic. How are you going to enforce the number that they can rent to? How will you prove how many are actually staying there? Neighbors are being put in the position of having to monitor these COMMERCIAL businesses. They have to take time from work, etc. just to try and maintain the residential character of their home and neighborhood. Please continue to maintain Estes Park as a premier mountain Community and not allow the entire valley to become one big accommodations resort. Please cap the total number of rentals allowed so that residents may continue to live and work in the Estes Valley. Thanks for your consideration, Theresa Oja 86 Dear distinguished Commissioners and Trustees, My wife and I and our five children have visited Estes Park every year since 1995. During this time we were able to afford week long visits by using vacation rentals to accommodate our family size and allow us to have some meals at a house. In 2007 we made the decision to purchase our own house as an investment and opportunity to continue to come to Estes Park. We purchased a place looking to the future and now four of our five children are married with four beautiful grandchildren and, we are sure, more to come. We are hardworking, self- employed folks and the only way we could ever afford to live this dream of ours is by renting our house when we are not there. Our four bedroom, 4 bath house easily sleeps 12 and with our size family is needed. We have always paid our taxes, followed all rules of the area and looked after our neighbors and their peace and quiet. After ten years I feel we have succeeded in being the best neighbors and proud part time residents of Estes Park. We understand others may not be living up to those standards and the appropriate governmental bodies may feel the need to address this situation. As a resident of Fort Myers Florida for all my life, I have seen these types of situations for our seasonal, vacation based economy with Ft. Myers Beach and Sanibel Island being in our county. The lessons I can pass along is, don’t over react. The VRBO portion of your tourism is extremely important. My family would never had visited as often without the VRBO option and I hear that from most of the families I rent to. In Southwest Florida we had to learn to embrace our tourists and seasonal residents or lose them to someplace else, and in the ‘80s that actually happened. Resist the call from those who have “found paradise”, but now do not want others to enjoy it too. We would never be able to look to long term rental as a financial solution, as we do use our home 4-6 weeks throughout the year. I ask that as you look to account for the VRBOs, you do not place burdensome and costly restrictions on us. The vast majority of owners would agree there are fair steps to be made to achieve public safety without over regulation. Thank you for your time and efforts on all of our behalves. Sincerely, Randy Zavada Renegades Embroidery, Silk Screen and Uniforms 87 From: James Gunlicks <jimgunlicks@gmail.com> Date: November 17, 2016 at 9:50:37 AM MST To: cwalker@estes.org Subject: Short Term Vacation Rentals Dear Mr. Walker: It is our understanding that the city and county will soon make the final decisions on short term rental rules. My wife and I have owned and managed our rental house for over ten years. We are licensed and collect and pay all sales and lodging taxes. We respect the residential nature of our neighborhood and have a wonderful relationship with our neighbors. We screen our renters, comply with all town ordinances and there have been no complaints registered with the city on our property. Our six bedroom home, almost 100 years old, began as a vacation retreat in the 1920's and operated as a bed and breakfast for decades. When we bought it we continued to operate it as a bed and breakfast but changed our business plan to short term rentals when it became obvious that today's BandB guests want a private bathroom with every bedroom. Our major concern is over two proposed requirements: Installing a sprinkler system inside the house and making the house ADA compliant. Neither requirement contributes to keeping the residential nature of the neighborhood intact and singling out short term rentals for this requirement would be unfair. Sprinklers and ADA compliance are not required in BandB's or long term rentals. We are concerned about the safety of our guests and already have fire alarms, CO2 monitors, fire extinguishers, motion lights and power failure lights. We replaced the wood burning fireplace with gas logs and replaced the wood shake shingles with a fire resistant metal roof. We passed our insurance company's inspection with no issues. I'm sure you understand that the sprinkler system would be expensive to retrofit as would making the house ADA compliant. I do not know how we could successfully modify our historic home with all the necessary ramps and other accommodations. It has been suggested by some that the real purpose behind support for these two requirements is to discourage short term rentals in the hope that owners will convert them to long term rentals to help alleviate the work force housing shortage in Estes Park. I certainly don't know if this is true, but I do believe there are other viable solutions to this issue. We would not be able to make the numbers work with long term rentals. We respectfully ask that you not approve these two requirements. At the least, we would ask that you "grandfather" current short term rental properties. We purchased this house believing that we would be able to provide a charming, comfortable and affordable vacation home for families visiting Larimer County while also providing us some additional income. We want to continue without facing additional expense and ruining the nature of our historic house. Thank you for your consideration. Sincerely, Jim and Lois Gunlicks. 88 From: Kintzle, Frank Sent: Wednesday, November 23, 2016 4:13 PM To: 'planning@estes.org' <planning@estes.org> Subject: vacation rental position paper We are Frank and Geri Kintzle and we first came to Estes Park with our family nearly forty years ago and rented cabins for years at the YMCA of the Rockies before we purchased and rented out our home located at 2040 Windcliff Dr, Estes Park, C0. We took the time to read your Vacation Rental Position Document and thank you for the time and effort put forth as we know you have many hours invested. Many of the houses located on Windcliff have had very good experience in renting without complaints. We have an additional benefit in that our guest must register at our gatehouse located at the entrance which provides additional security with eye ball eye ball contact and opportunity to go over our rules. What is also interesting and validates our Windcliff community is that every owner of Windcliff Estates has and does live on our Mountain. We are not sure who is complaining to you or all the reasons for these changes but we have not experience complaints from any neighbors. In reference to the “Cast report and Estes Park Housing Needs” we do not understand nor agree that the number of rental home permits be reduced to 450 and putting a cap of 8 on each house. We do not have a large home so the cap of 8 does not affect us but some homes are very large and can easily handle more than 8 which would appear to not only impact the real estate market for second homes like ours but would impact growth in a negative way in EP via the labor market. We have hired many contractor’s over the years with many upgrades with constant care which rental homes in my opinion require more upkeep and upgrades than one might have with just resident only homes due to the wear and tear and constant improvement for attraction power. We have compared EP to other mountain communities like Aspen and Vail and chose EP because in our opinion Estes is more family focus. Let’s keep EP family focused and find reasons to have people take their vacations here by offering many different attractive places to stay. As absentee owners we have and continue to contribute to the Estate Park community in whole via library, church, hospital, etc. If constraints on our ability and others to rent it will affect the community in many different ways. Thank you for taking the time to read and listen and we hope and pray you make good decisions for everyone in the community. Frank and Geri Kintzle Frank I. Kintzle, CLU, ChFC, CFP, CEBS, MSM Senior Financial Services Representative Financial Advisor Principal Securities Registered Representative Principal Financial Group 200 Second Avenue SE Cedar Rapids, IA 52401 Phone (319) 362-2149 x. 116 Fax (319) 362-8737 Email kintzle.frank@principal.com Web www.principal.com 89 Cyd Deats Nov 29 (10 days ago) to tjirsa, wkoenig, Bob, wnelson, pmartchink, rnorris, cwalker, me, planning, Steve, donnelt, Lew Estes Park Town Board of Trustees and Planning Commissioners: As long-time residents of Estes Park, we are extremely disappointed in the Town officials’ apparent lack of concern for Estes Park neighborhoods, residents and community. Throughout this process it appears to us that the focus has primarily been on the rights of vacation home owners and operators, with very little regard for the rights of the local inhabitants of our neighborhoods and residential areas. A large number of vacation homes in the Estes Valley are owned by individuals and businesses located along the Colorado Front Range, Texas, Nebraska, Kansas, Missouri, Illinois, Minnesota, Iowa, Michigan, Ohio, Tennessee, Alabama, Florida, West Virginia, Virginia, Maryland, New York, Connecticut, Oklahoma, Wyoming and California. Additionally, a number of these vacation home owners own and operate multiple vacation homes. Vacation homes are commercial endeavors and are intrusions of commercial businesses into residential neighborhoods. In addition, the already inordinate number of vacation homes in the Town limits and the surrounding Estes Valley may be limiting the number of long term rentals available for people who want to live in, and contribute to, our community on a year ‘round basis. They are negatively affecting our neighborhoods, our sense of community, our school district enrollment and the ability of young families to live in Estes Park. Operating vacation homes in residential areas truly changes the personality of the neighborhood with increased automobile traffic, increased noise levels, people coming and going at all hours of the day and night, never knowing who your “neighbor” is at any given time and altercations between property owners within neighborhoods…just to name a few of the issues involved. This is not just speculation on our part…we can see no fewer than seven vacation homes just by looking out the windows of our home. We chose to live in a residential area and purchased property in a residential zoning district. Our property is zoned E-1. We have a significant investment in our land and our home and do not support more lenient vacation home regulations. We invested in our property to have some space between our home and our neighbors’ homes, to provide room for the wildlife to wander, and to enjoy the solitude and beauty of Estes Park, not to have numerous small hotels in our neighborhood. If we had wanted to be surrounded by hotels and motels we would have purchased property in a Commercial or Accommodations zoning district where this type of activity is allowed and expected. The Accommodations zoning districts were created for just that, accommodations and lodging. Residential zoning districts are not intended to be locations for commercial lodging businesses. The Town needs to take action that would stop the encroachment of commercial business activities into our residential neighborhoods, thereby preserving the neighborhoods of Estes Park and the right to quiet enjoyment by the residents of Estes Park residential neighborhoods. 90 We support a cap on the number of vacation homes allowed, as well as retaining and enforcing the current vacation home regulations. Please do not loosen the regulations and allow for even greater occupancy and a greater number of vacation homes in Estes Park and the surrounding Estes Valley. Please retain the limited occupancy criteria (two people per bedroom plus two with a maximum of eight); enforce the regulations currently in place; honor and uphold the covenants of our neighborhoods and subdivisions; and keep lodging on properties that are zoned for accommodations. Thank you, Cyd and Steve Deats Town of Estes Park residents 91 To: Estes Park Town Board of Trustees Larimer County Board of County Commissioners Estes Valley Planning Commission Randy Hunt, Estes Park Community Development Director From: Faith and Lyle Zimmerman, 1930 Sharon Ct. N. Estes Park, CO 80517 Date: December 9, 2016 RE: Input related to VRBO Vacation Rentals in Estes Park and the Estes Valley We live at 1930 Sharon Ct. N., a short cul-de-sac with nine single family homes zoned residential in Carriage Hills. The cul-de-sac has a small circular turn-around with four driveways. Three years ago one home in the turn-around was bought by an out-of-state investor and the long-term seven year renter, a single mother and daughter were ousted. The mother, a long-time service worker at a local restaurant, could not find affordable housing as a waitress. In addition a second home in the cul-de-sac is now illegally renting out a basement as an auxiliary dwelling unit which is not allowed in an area zoned for single family residential. Our small block and neighborhood is changed with 2/9 homes needing significant on-street parking, no contribution to being a neighbor, or contributions as an Estes Park resident. Carriage Hills is largely populated by families and seniors and has traditionally offered more affordable housing and especially for first time home owners and young families. That is quickly changing secondary to vacation rental investing and auxiliary dwelling units. Our concerns and recommendations: 1. We support a VRBO cap of the original proposal of 450 licensed units in residential zoning districts. The proposed cap of 588 is not reasonable given the current estimate of 750 existing units and will compromise our ability to maintain our neighborhoods as a good place to live, raise children, and the quality of life for Estes Park and Estes Valley residents. 2. We support a 5% total cap in residential areas. This will prevent older residential areas with houses less than $350,000-400,000 continuing to be prime investment targets which create a higher density of VRBOs. Areas like Carriage Hills will continue to be a prime buyout area and run the risk of neighborhoods shuttered and dark with too many short term rental units and subsequently unaffordable housing for young families and long-term renters. Not utilizing a cap in residential zoning districts will create the same similar problem found in other Colorado mountain towns where there is no sign of life as you drive through residential neighborhoods. Public schools will have fewer children, neighborhood life is limited, and no community centers are needed. 3. In addition some process must be developed that limits the number of VRBO’s on a particular street. What is a reasonable number on a cul-de-sac with nine homes? If you doubled the cap density to 10% for a particular street that would limit the number of VRBO’s on our street to one. 4. What is a reasonable annual increase for the maximum VRBO density cap in residential zones? Please consider a small 2-3 % increase in residential zones based on the total residential units/zone. If total housing units do not increase in a year then no new permits are issued that year. That will help avoid the concentration of VRBOs in middle and lower income neighborhoods that are disruptive. 92 5. Who will police the complaints and code violations? Certainly not only one staff member for the Town of Estes Park Planning Dept. The Larimer County and Estes Park police cannot spend all their time enforcing mandated VRBO violations. This leaves us, the neighbors, to steadily address the violations of noise, trespassing, garbage, cars everywhere on the street, too many people in the VRBO (once there were 26 people in the 3 bedroom house with 11 cars and 2 motorcycles) and chase down the management company. 6. As an Ambassador at the Estes Park Visitor Center we were informed by Visit Estes Park that the lodging receipts were slightly down for August. Now we know that there was no decrease in tourist/guests but that the VRBOs accommodated those guests. Sad that those businesses that invested in property and buildings (hotels/cabins/lodges) are also victims to having their business stolen by VRBOs. The flip side is that many of those lodging businesses, in order to survive and flourish, are quickly buying houses and properties and managing them, thus further contributing to the housing shortage for young families or long-term renters and local long-term workers. 7. Affordable long-term rentals for individuals who wish to work and live here are non- existent. Sure, the investors purchasing homes for VRBOs make money but it feels shameful that lower cost housing is sold for VRBOs while short and long-term workers live in their cars and other unsafe housing arrangements. We volunteer at Crossroads Ministries and see the impact that people living in cars and substandard housing have on donated social services. Do we foresee a day where Town of Estes Park shuttles will daily pick up and return long-term workers to the valley similar to what Vail, Aspen, and many other mountain towns must now do to have workers? 8. We intentionally bought a small lot within the Town in 1999 and built a home in a single-family zoned residential area. We are now living on a street that has become an accommodation zone with permanent changes to our neighborhood. Many areas have homeowner associations that protect them from these changes but the rest of us are subject to the whims of the real estate market and investors who compete for investment properties. 9. If a VRBO cap is approved then we suggest that real estate agents must disclose the cap in their sales with information to potential buyers that capacity limits exist and will be enforced. 10. Tourists and guests bring revenue but homeowner taxes are paid regardless of who lives in the house. But tourists/guests and investor owners do not volunteer at the Estes Park Visitor Center, at Crossroads, provide free AARP tax service at the library, work for weeks on flood clean-up, support the library, help with the neighborhood clean-up, or a host of other community involvement areas that enrich and make this a good place to call home. The VRBO issues are tough ones but it will be impossible to build and retain strong affordable community residential neighborhoods and also continue this mad rush to meet the demands of investors who will continue to want more and more and more. 93 ---------- Forwarded message ---------- From: Suzanne K Miller <asmillerco@gmail.com> Date: Fri, Dec 9, 2016 at 5:00 PM Subject: STVR To: planning@estes.org Thank you for this opportunity to respond once again as we have followed with great interest and participation regarding Short Term Vacation Rentals outside the Town limits but cannot attend the meeting scheduled for Dec. 15th. Please note that we heartily support the recommendations by the Estes Valley Planning Commission regarding 9+ vacation rentals in the county portion of the Estes Valley as stated in the Estes Valley Planning Commission:Vacation Rental Position Document dated November 29, 2016. It was with great dismay to us that the Vacation Rental Task Force was in such disarray concerning participation of members, members selected, and those resigning the task force. In addition when the overall consensus standard was abandoned for a majority rule, that was most unfortunate. Thank you for your time and attention to this matter that has serious implications for the home values of those of us who are County and year round residents within residential zoning. Keep short term rentals of 9+ out of residential zoning in the County. Suzanne and Alan Miller 2700 Eagle Rock Drive Estes Park, CO 80517 asmillerco@gmail.com 94 ---------- Forwarded message ---------- From: <mjkinney@aol.com> Date: Sun, Dec 11, 2016 at 5:15 PM Subject: Vacation Rentals To: planning@estes.org, lgaiter@larimer.org, donnelt@larimer.org, johnsosw@co.larimer.co.us, Tajirsa@gmail.com, wkoenig@estes.org, bholcomb@estes.org, wnelson@estes.org, rnorris@e stes.org, cwalker@estes.org, pmartchink@estes.org My husband and I own a home in Windcliff, which is in the Windcliff vacation rental program. I am writing to beg you not to require us to rebuild our current home to commercial building codes or restrict us from being able to continue having our vacation rental home permit. If you feel compelled to take these actions, we ask to be grandfathered in, because we bought our property in good faith expecting to have these rights. You could impose these restrictions on properties that become vacation rentals in the FUTURE, but to do this to current owners is egregious and would create massive hardships for us. Windcliff has professional vacation rental managers on site on the mountain in the "gatehouse" office at Windcliff. Our community of Windcliff and the rental program works very diligently to maintain the peace and beauty of our mountain living. We are not threatening our mountain way of life with noise, lots of lights, lots of vehicles, etc., because our rental management has self- restricted our contracts with rental guests. If any issues arise, we as a community quickly take care of them to protect our community. The rental managers live on the mountain, so it is their home too, and they enforce the rules of our rental guests for all our sakes. It's for our sakes as owners, too, because we will one day live there when others' rental guests will be visiting. Also, Windcliff actually began as estate vacation rentals in the 1970s, so it is deeply ingrained in who we are. Whenever anyone buys property at Windcliff, they are aware that we are a community with vacation rentals. This in many instances actually enables people to afford to buy homes at Windcliff. Additionally, our homes are very expensive and can in no way be called "affordable housing," so we are not threatening affordable housing in Estes Park. In fact, in at least one case, the vacation rentals MADE the housing MORE affordable. For example, the previous owners, the Phillips, of one of our neighboring homes in Windcliff were retired and on a fixed income. They actually supplemented their income by putting their home into the vacation rental program at Windcliff in the summers. My husband and I are thinking of doing this also after we retire to Windcliff. After vacationing in Estes Park for several years, my husband and I bought our home in Windcliff in 2001 with the plan to retire there one day. However, the price of the home was so high for us (my husband is a high school teacher, and I am a staff member at a state university, and we do not make much money) that the only way we could afford it was to put the home 95 into the vacation rental program to help pay for the mortgage. The rental income does not cover the entire cost of owning the home, but it makes it doable (when there are no fires or floods), so we can retire there one day. We are not making any profit but losses every year. This endeavor of owning a home at Windcliff is not a commercial business. If it were, we would have gone out of business within the first year of ownership. Instead, it is a personal investment for our retirement. Since our home is intended to be a residence in a residential community, I ask that you not impose commercial building codes upon our home other than things like fire extinguishers, carbon monoxide detectors, etc. Our home was built in 1987 and would be egregiously expensive to change to commercial codes. If you pass a law stating that we must do this, we and a very large number of owners would be forced to sell our homes in a market that no longer would allow vacation rentals. Also, please do not restrict (through a lesser number of or more restrictive permits) our ability even to have a vacation rental home. Our retirement is predicated on this plan of having our home be a vacation rental until we can retire there probably within 10 years. To do anything to jeopardize our vacation rental would jeopardize our future. We have invested a lot of money into our property and the vacation rental plan, knowing that this is making it possible for us to have our home fully paid for when we retire. In the meantime, we are providing a lovely experience for families to vacation in a beautiful mountain setting. In addition to hurting our and other owners' financial futures, requiring commercial building codes and/or not granting us permits to maintain our vacation rentals would have a very significant negative impact on the Town of Estes Park: 1. Reselling homes without the ability to have vacation rentals would become much more difficult and could increase time on market and possibly lower the price. This would hurt the real estate market and the livelihoods of realtors in the Estes area. 2. Having less vacation homes would hurt the economy of the town with less visitors spending money. This would mean less sales for business, less jobs for the citizens both in the shops and in the vacation rentals themselves, and less sales tax revenue for the town and state. Some businesses would need to close. Those business owners and employees would all lose their livelihoods. 3. Vacation rental companies such as Windcliff would go out of business. Those business owners and employees would all lose their livelihoods. 4. Having less vacation rentals available would make visitors look to other mountain-town settings for their trips where more vacation homes are allowed. Vacation rental homes are becoming an increasingly popular way of vacationing as people bring family and friends on vacations. Our guests frequently write notes in our guest book about their experiences in our home. They love the home setting where everyone can gather together (instead of being confined to individual hotel or motel rooms). They love being able to lounge all together in the living room by the fire, make popcorn, and watch together one of the 100's if movies or play the board games we have there for them. They love having the ability to cook for their family in the fully equipped kitchen and eat all together around our family heirloom dining table. They love having plenty of space for everyone also with lots of privacy. They love having the ability to let the kids go downstairs to play with the toys and video-game equipment that we have for them. They love how we have lots of books for them to read and a place that actually looks and feels like their home away from home with all the touches of an actual home. They love having 96 an attached garage to keep their car free of snow and ice. In short, they love vacation home rentals, and many will travel no other way. Estes Park would lose all those vacationers and the money they spend in town. If the town is dealing with specific issues such as noise, lights, vehicles, lack of affordable housing, etc., I recommend dealing more specifically with those issues and NOT using a broad brush to paint all vacation rentals as the problem needing to be fixed. Our Windcliff setting is working very well and does not appear to be the source of any of the issues I have read about. It feels like we are the scapegoat. Instead, I encourage you to consider specific ways to limit the noise, lights, and other issues, and not create sweeping regulations that would result in disastrous unintended consequences such as the four I mentioned above. Thank you very much for your time and consideration, Margaret J. Kinney 640 E. 3rd Street Eaton, CO 80615 97 From: Randy Vavrina <rvavrina@gmail.com> Date: Sun, Dec 11, 2016 at 10:32 PM Subject: December 15, 2016 Meeting Concerning Estes Valley Development Code Amendment :Sec. 5.1.B To: kthompson@estes.org To: Estes Park Board of Trustees Larimer County Board of County Commissioners Subject: December 15, 2016 Meeting Concerning Estes Valley Development Code Amendment :Sec. 5.1.B From: Randall Vavrina I plead that you consider my points prior to your decision regarding the above subject at your joint meeting in December 16, 2016 meeting. In 1999 my wife and family were encouraging me to purchase a second home in the mountains. We are a family of a modest income and I am an owner of a small business in a small Nebraska town, where relationships with friends and neighbors ranks high. At the time I was prejudiced against owning a second home because it just did not make economic sense to invest hundreds of thousands of dollars versus renting a hotel room. Despite my prejudice, I pledged that I would consider the issue. We were particularly fond of Estes Park and the Rocky Mountain National Park area. We happened to be in Estes Park because of a funeral of a relative. While there, we contacted a realtor and looked at various properties. I was amazed at the high cost of the real estate. Modest, 1960 vintage homes with 2 -3 bedrooms, were priced at $300,000. Similar homes in our small town would sell for $30,000 to $50,000. With this knowledge, I postponed that investment idea. Later that summer, we took a family vacation in Yellowstone National park and up to Glacier National Park. Along the way and at every opportunity, we picked up realtor brochures from mountain communities and it became clear that mountain properties shared one common denominator - high prices. Despite that fact and because my wife had recently received an inheritance from her deceased father, the family continued to promote the ownership of a mountain home. Later in the summer of that year, I succumbed to the family pressure. Since we could not find a home that we liked we decided to build. That meant buying a lot. I had a major hesitation of spending $110,000 for a vacant lot in the Carriage Hills area when in Nebraska, a price like that bought over 80 acres of farmland. We bought the lot and built a home with the intent of renting it out to help pay for the investment. In hindsight, I am totally delighted that the family talked me into the decision. Early on, we were able to spend 4 or 5 trips a year at the "cabin", using vacation time and holidays. Over the years we have been able to spend more time in our adopted community and we intend to retire there. My family and I love Estes Park and everything associated with it. We have also developed some good relationships with neighbors and locals alike. The point of all this background information is that the cost of mountain property is not unique to Estes Park. It is related to the demand to live in the mountains - not just in Estes but for the entire Rocky Mountain region. The affordable housing issue should be decoupled from the 98 Vacation Rental property discussion. It is a beast of its own right and needs to be attacked separately. Most young teachers, professionals etc. are not able to afford a lot, much less a home today but that was no different back in 1999 - way before the vacation rental homes became popular. Few critics of the VR discussion would argue that VR's are the reason for high real estate prices in Lyons, CO or any other property in the Valley. There may be a handful of VR's there but the issue of affordable housing is as big there as it is here in Estes. I know this because our son recently bought a home in Lyons and I learned that homes there are just as high there as they are in Estes. Another factor related to the affordable housing issue is the fact that many of the homes in Estes are not available to be rented because they are owned by owners who live outside of the Estes Valley. According the Estes Valley Planning Commission Vacation Rental Position Document, dated November 29, 2016, 3100 of the 6500 residences in Estes Park are owned by non residents. That is 48% of all EP residences. According to that report there are an estimated 750 VR's. That means 2750 properties are likely not available for long term rentals. It would appear to me that this may be a bigger factor related to the affordable housing issue. After purchasing the lot and building our new home in 1999, we used a local rental management company and we were able to rent out the home for 24 - 30 days a year. We have developed a good reputation because of maintaining a quality home, inside and out. As a result, we have expanded the number of days rented over he years. However, this was not done at the expense of the comfort and well being of our neighbors. We have a licensed and registered VR home, strictly adhering to the 8 and under Estes Park restriction. We have never received a complaint of noise, wild parties or the like. Our guests have been respectful of our property and for the most part, spend most of their time in the park or downtown. In fact, we have had neighbors tell us that they did not even know this home was a VR home. This is no different then if I was there with my family (although, admittedly, I spend more time working keeping up the property than hiking in the park). We take pride in the appearance of our home and property. We keep it up by staining the exterior when it needs it (it looks as good today as the day it was built). We sprayed 30 trees for the past 6 years for MPB. We cut down the dead trees and branches and planted new trees. We pick up the litter and we respect the dark sky laws with a 10 minute timer on our walkway lights that illuminate the dark walk to the house from the drive at night with just enough time to reach the house. We make sure that our garbage is secured from nuisance bears. Unfortunately, the same cannot be said for other neighboring properties, some of which are a long term rentals and others are properties also owned by out of towners but not rented out (short term or long term). Our home fits well and enhances the value of homes in the Carriage Hills area and Estes Park in general. We also pay sales tax and property tax that is beneficial the town of EP and Larimer County. We spend thousands of dollars annually to the local electricians, plumbers, heating and air repairmen, painters, hardware and grocery store and our housekeeper. Our rental tenants contribute equally to the economy. However, none of this will continue if we should not be given one of the limited licenses. Also, even if we were not given one of those limited licenses, we would not rent out our home for a long term rental because we would want it for our personal use. 99 I am in favor of making sure that VR homes be licensed and that these homes be managed so as not to be a nuisance - just as the case should be for non VR homes. Nobody wants nuisance neighbors. However, I fear that those opposed to VR's may use the licensing and regulations to their advantage by submitting or filing false claims - so as to get a nearby VR closed. I also ask that you reject the recommendation by the planning committee to place a cap on the number of licensed VR's. On the surface this seems like a good solution to those opposed to VR's. However, the results of a cap will only be harmful to everybody. It would result in a limited number of VR homes. In turn, because of supply and demand, it would result in higher rental rates. The surveys that have been conducted have indicated that Estes Park lodging is already coming up short in supply. Long term, a reduction in available lodging will limit expansion of the Estes Park economy and result in a change in the demographics of the typical Estes Park visitor. I do not believe that this is the result you want. Limiting the number of VR's would also result in a reduction in the value of everybody's property. Opponents say this is what is needed for affordable housing. However, to make the current real estate market affordable, there would need to be a 75% reduction in current values. I doubt limiting VR's would have that type of impact. However, it very well could result in a 25% or greater reduction. This is significant if you are a seller of your property in the future. Are Estes Park homeowners willing to take this kind of hit to the net worth of their property? Yet at the same time, the property values would still be out of reach to those needing affordable housing. I believe the real issue comes down to enforcement of being neighborly and accountable. The joint board of trustees would be best off concentrating on making all VR's licensed, not forcing them underground and holding the property owners accountable for the conduct of their renters but not with a cap. Sincerely, Randall Vavrina Estes Park Property Owner 100 From: Lauri <laurigrady@gmail.com> Date: Mon, Dec 12, 2016 at 10:58 AM Subject: Re: Vacation rentals 9 & above; 851 Panorama Circle To: planning@estes.org, lgaiter@larimer.org, donnelt@larimer.org, johnsosw@larimer.org, tajirs a@gmail.com, wkoenig@estes.org, bholcomb@estes.org, wnelson@estes.org, rnorris@estes.o rg, cwalker@estes.org, pmartchink@estes.org After attending the meeting of the Board of Appeals on December 8, I feel that I should provide input on the issues of building codes and safety concerns for existing VR homes. First, safety concerns apply equally to visitors of all VR homes regardless of the size of the home. E g a 3 bedroom 2 story home could be less safe than a 6 bedroom 1 story home. It is likely that more than 65% of future visitors staying in existing VR homes will be in homes for 8 and under and should be as safe as those staying in 9and above VR homes. So please do not make arbitrary distinctions. Please impose only truly valid requirements based on an inspection of each existing VR home. Second, please be fully aware that imposing new expensive requirements on existing VR homes can potentially threaten the survival of these small businesses; which may be the retirement nest egg of the owner. I know that safety must come first but, again, my request is to impose only truly valid requirements based on inspections of each home. Thank you all for your hard work on these difficult issues. Yours truly Lauri Grady 303-956-1673 P s please forward this letter to members of the Board of Appeals; I couldn't find their emails. Thank you. > On Nov 28, 2016, at 10:23 AM, Lauri <laurigrady@gmail.com> wrote: > > Thank you all for all your hard work on this difficult issue. I know you are close to making your final decisions. I am writing this to give you my input. I have attended many of the meetings but have never made a public comment. I own a home at 851 Panorama Circle; 7000 sf, 1.4 acres, far more than 25 feet setbacks, 6 bedrooms, 6 baths. I am hoping to be grandfathered for 9 and above. I have been allowing 9 and above as permitted by the moratorium. To put it simply, If I am not allowed to continue with 9 and above, it will be financially devastating. I manage and clean my rental home; I bought a cabin 12 minutes away to live when Panorama home is rented and am always available 24 hours. Again, thank you for your time and consideration. > Best wishes > Lauri Grady > 303-956-1673 101 450 Lakefront Street, Estes Park, CO 80517 December 12, 2016 Re: December 15, 2016 Joint Meeting On Vacation Home Rentals (VHRs) Dear Town Trustees and County Commissioners: Disallowing 9+ VHRs in the Estes Valley after June 1, 2017 will have long term, deleterious effects on our local economy. Not only will we lose the revenue generated by 9+ guests who will take their business elsewhere. Most importantly, we will lose potential future guests and residents. Prior child vacationers become future adult guests. Prior adult guests become future retired residents. The wonderful multi-generational family reunions with a destination of Rocky Mountain National Park cannot occur in VHRs that house only 8 people. Allowing 9+ in residential districts, with a free market instead of an artificial cap, should be given a chance. Yearly reviews of new 9+ VHRs could offer plenty of opportunities to establish a separate 9+ cap at a later date if the free market approach is producing too rapid growth or the 9+ VHR are not responding to new enforcement practices. Please reconsider the Task Force’s recommendation to allow 9+ VHRs in residential districts. I am deeply disturbed by the public demonstration of a very obvious, very strong bias against 9+ VHRs by all members of the Estes Valley Planning Commission and their refusal to endorse those Task Force recommendations for which unanimity was the most difficult to achieve. I am also concerned that the data and graphs which are driving many of the recent decisions were not compiled by an unbiased entity. This last joint meeting should be held after, not before, the services of the unbiased entity, I Compass, have been engaged and unbiased data become available. My greatest concern, however, is that those who chose to resign from the Task Force are being given back the voices they chose to forfeit when they made the decisions to resign. The work of those of us who continued in this harrowing experience will be totally wasted if you simply bow to the very small, very vocal VHR opposition of those members of the community whose representatives chose to resign from the Task Force you appointed. If bowing to the opposition was your original intention, Task Force members could have saved ourselves a huge amount of time and stress. Similarly, if requiring sprinklers for VHRs when many small hotels are not sprinkled, was part of the original strategy if all else failed, the Task Force was a huge waste of our time. Sprinklers are currently required in all new construction in Estes Park. That’s as far as it should go in residential buildings. Sprinklers should not be required for new VHRs of previously built homes now or in the future. Thank you for your time. Sincerely, Millicent Cozzie VHR Task Force Member 102 From: Patti Freudenburg <pfreudenburg@gmail.com> Date: Mon, Dec 12, 2016 at 2:12 PM Subject: Draft Amendment re: VRBOs To: planning@estes.org, Theresa Gene Oja <theresaoja@gmail.com>, Hornbein Kathy <kwren2@gmail.com>, Patti Freudenburg <pfreudenburg@gmail.com> Our family has owned a home on Devil's Gulch for over 40 years, and we have some concerns about the language in the draft for the Estes Valley Development Code regarding vacation home rentals. No where in the document can I find reference to appropriate uses .... Does that mean that anybody (as long as they are considered as "one party") can rent? Events? Weddings? Frat parties? Retreats? In our area the houses tend to be large, and often can sleep a great number of people. The septic systems designed for those homes, however, were not built to accommodate a constant stream (no pun intended) of full occupancy. How will over-taxed septic systems, quite possibly risking our own ground water, to be monitored? In the case of code violations that are non-emergencies, it appears that we are to complete a form. The problems we have out here (typically noise, crowds, live bands, harassment of wildlife, illegal bonfires) are usually NOT of an 'emergency' basis in terms of being life threatening. The nuisance to us is very real, however!! If we complete the form, since the owner/manager has 15 days to correct the situation, what is to prevent them from simply responding that they won't rent to that particular offending party again? Those of us not within Town limits are also VERY concerned about enforcement. Our sheriff's office is stretched so thin -- their possible response to our 'non-emergency' situations is simply not adequate. How will enforcement change in the future? Thank you for your time and consideration. Patti Freudenburg & Tony White 103